Ameren Corporation (NYSE:AEE) is predicted to grow its earnings per share by a robust double-digit 15.57% over the next three years. With the recent EPS being $2.869, expected growth will push the upcoming EPS to $3.316. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. View our latest analysis for Ameren
Exciting times ahead?
AEE is covered by 6 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $2.869 to $3.316 in a few years. This indicates a relatively solid earnings per share growth rate of 15.57% over the next few years, which is an optimistic outlook in the near term. During the same time and profit is predicted to escalate from $696M to $804M in the next couple of years, growing by 15.57%. However, margins look rather unappealing at the current levels of revenue and earnings.
Is this similar growth to the past?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. AEE delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. Conversely, a weaker company outlook may raise the question of its ability to continue outperforming.
For AEE, I’ve put together three relevant factors you should look at:
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. Future Earnings: How does AEE’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AEE? 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.