American Assets Trust Inc (NYSE:AAT)’s sound earnings growth per share is expected to be a double-digit 38.11% over the next three years. At a current EPS of $0.658, this growth rate means shareholders can expect an impending EPS of $0.908. To assess the reasonability of AAT’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for AAT
How is American Assets Trust going to perform in the future?
AAT is covered by 5 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $0.658 to $0.908 in a few years. This indicates a relatively solid earnings per share growth rate of 38.11% over the next few years, which is an optimistic outlook in the near term. In the same period and profit is predicted to escalate from $30M to $42M in the next couple of years, growing by 38.11%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
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 is highly excessive or whether the company has consistently exhibited strength. AAT’s triple-digit earnings growth the past couple of years indicates that the company’s past performance will continue to persist into the future. This means AAT has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For AAT, I’ve put together three important 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 AAT 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 AAT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AAT? 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.