Yahoo Finance PageGroup plc (LON:PAGE): What Can We Expect From This High Growth Stock?
In December 2018, PageGroup plc (LON:PAGE) announced its most recent earnings update, which suggested that the business gained from a robust tailwind, leading to a double-digit earnings growth of 25%. Today I want to provide a brief commentary on how market analysts view PageGroup's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
See our latest analysis for PageGroup
Analysts' outlook for the coming year seems optimistic, with earnings climbing by a robust 12%. This growth seems to continue into the following year with rates reaching double digit 25% compared to today’s earnings, and finally hitting UK£140m by 2022.
While it’s useful to be aware of the rate of growth year by year relative to today’s value, it may be more valuable estimating the rate at which the company is moving every year, on average. The benefit of this approach is that it ignores near term flucuations and accounts for the overarching direction of PageGroup's earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 10.0%. This means, we can assume PageGroup will grow its earnings by 10.0% every year for the next few years.
Next Steps:
For PageGroup, 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 PAGE 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 PAGE is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PAGE? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
