Yahoo Finance What Should You Know About Zurich Insurance Group AG’s (VTX:ZURN) Future?
After Zurich Insurance Group AG’s (VTX:ZURN) earnings announcement in June 2018, analysts seem cautiously optimistic, with profits predicted to increase by 18% next year against the past 5-year average growth rate of -9.0%. By 2019, we can expect Zurich Insurance Group’s bottom line to reach US$3.9b, a jump from the current trailing-twelve-month US$3.3b. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Zurich Insurance Group in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Zurich Insurance Group
How will Zurich Insurance Group perform in the near future?
Longer term expectations from the 15 analysts covering ZURN’s stock is one of positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of ZURN’s earnings growth over these next few years.
From the current net income level of US$3.0b and the final forecast of US$4.0b by 2021, the annual rate of growth for ZURN’s earnings is 7.5%. This leads to an EPS of $31.38 in the final year of projections relative to the current EPS of $20.03. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. Margins is currently sitting at 4.7%, which is expected to expand to 7.1% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Zurich Insurance Group, I’ve compiled three fundamental factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Zurich Insurance Group worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Zurich Insurance Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Zurich Insurance Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
