Based on DTE Energy Company's (NYSE:DTE) earnings update in June 2019, analyst forecasts seem in-line with its track record, as upcoming earnings growth is expected to be 10.0% next year, similar to the range of average earnings growth for the past five years of 9.5% per year. Currently with trailing-twelve-month earnings of US$1.1b, we can expect this to reach US$1.2b by 2020. Below is a brief commentary on the longer term outlook the market has for DTE Energy. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will DTE Energy perform in the near future?
Longer term expectations from the 10 analysts covering DTE’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of DTE's earnings growth over these next few years.
From the current net income level of US$1.1b and the final forecast of US$1.4b by 2022, the annual rate of growth for DTE’s earnings is 8.1%. This leads to an EPS of $7.24 in the final year of projections relative to the current EPS of $6.18. In 2022, DTE's profit margin will have expanded from 7.9% to 8.7%.
Future outlook is only one aspect when you're building an investment case for a stock. For DTE Energy, there are three pertinent aspects you should further research:
- 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 DTE Energy 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 DTE Energy is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DTE Energy? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.