How Do Analysts See Ruth’s Hospitality Group Inc (RUTH) Performing Over The Next Year?
Based on the latest analyst predictions, Ruth’s Hospitality Group Inc (NASDAQ:RUTH) is estimated to grow its earnings by 8.26% next year. Presently, with an EPS of $1.034, we can expect an upcoming EPS of $1.119. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for RUTH
How is RUTH going to perform in the future?
RUTH is covered by 5 analysts who by consensus are expecting earnings to increase from today;s level of $1.034 to $1.119 over the next year. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 8.26% over the next 1-2 years. In the same period revenue is expected to grow from $397M $420M
Basis for the growth
The past can be a great 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. RUTH delivered a higher 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. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For RUTH, there are three key 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 RUTH 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 RUTH is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of RUTH? 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.
