What Are Analysts Saying About CoreCivic Inc’s (CXW) Growth?
CoreCivic Inc (NYSE:CXW) is expected to face a double-digit earnings per share decline of -12.99% over the next 12 months. At a current EPS of $1.797, this decline means shareholders can expect an impending EPS of $1.564. Today I will look at the latest data in order to investigate whether this negative future growth rate is plausible. Check out our latest analysis for CoreCivic
Troubled times ahead
The next couple of years are a potential rough ride for CoreCivic. Analysts are predicting the earnings to slide down to $1.564 in the three year’s time from previous levels of around $1.797. This would be a decline of -12.99%, so it will be an interesting ride. During the same time revenue is expected to decline from $1,821M $0M
Basis for the contraction
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is too pessimistic or whether the company has consistently shown negative trend. CXW’s earnings growth is expected to exhibit negative momentum as analysts expect the single-digit earnings growth in the previous year of 3.68% to decline into double-digit negative growth over time. As a well-established company, CXW could be exhibiting signs of potential market share loss or obsolete products to larger negative growth over time.
Next Steps:
For CXW, there are 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 CXW 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 CXW is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CXW? 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.
