Aceto Corporation (NASDAQ:ACET)’s impressive earnings growth per share is expected to be a big double-digit 57.50% over the next year. At a current EPS of $0.352, this growth rate means shareholders can expect an impending EPS of $0.555. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. See our latest analysis for ACET
Can we expect ACET to keep growing?
According to the analysts covering the company, next year should bring some good growth prospects for Aceto. Expectation from the stock’s 4 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $0.352 to $0.555 over the next year. This indicates a relatively solid earnings per share growth rate of 57.50% over the next 1-2 years, which is an optimistic outlook in the near term. During the same time we will see the revenue increase from $638M $778M
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. However, ACET’s earnings growth last year was negative, at -70.49%. Although its past performance illustrates a different picture to earnings growth moving forward, it could also mean ACET is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
For ACET, I’ve compiled three fundamental aspects you should further research:
1. 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.
2. Valuation: What is ACET 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 ACET is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ACET? 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 pass 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.