What Are Analysts Saying About Randgold Resources Limited’s (NASDAQ:GOLD) Long Term Outlook?
In December 2017, Randgold Resources Limited (NASDAQ:GOLD) released its latest earnings announcement, which suggested that the company gained from a strong tailwind, eventuating to a double-digit earnings growth of 12.34%. Today I want to provide a brief commentary on how market analysts perceive Randgold Resources’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Randgold Resources
Market analysts’ consensus outlook for the coming year seems positive, with earnings growing by a robust 33.50%. However, earnings is forecasted to fall thereafter, reaching US$346.93M in 2021.
While it’s informative understanding the growth rate year by year relative to today’s value, it may be more beneficial to analyze the rate at which the business is rising or falling on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of Randgold Resources’s earnings trajectory over time, fluctuate up and down. To calculate this rate, I put 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 6.91%. This means, we can anticipate Randgold Resources will grow its earnings by 6.91% every year for the next few years.
Next Steps:
For Randgold Resources, I’ve put together three essential factors you should further examine:
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 GOLD 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 GOLD is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of GOLD? 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.
