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After Mid-America Apartment Communities, Inc.'s (NYSE:MAA) earnings announcement in December 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 6.6% next year against the higher past 5-year average growth rate of 20%. Currently with trailing-twelve-month earnings of US$219m, we can expect this to reach US$233m by 2020. Below is a brief commentary around Mid-America Apartment Communities's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will Mid-America Apartment Communities perform in the near future?
The 12 analysts covering MAA view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of MAA's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, MAA's earnings should reach US$262m, from current levels of US$219m, resulting in an annual growth rate of 5.9%. EPS reaches $2.58 in the final year of forecast compared to the current $1.93 EPS today. In 2022, MAA's profit margin will have expanded from 14% to 15%.
Future outlook is only one aspect when you're building an investment case for a stock. For Mid-America Apartment Communities, there are three fundamental factors you should look at:
- 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 Mid-America Apartment Communities 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 Mid-America Apartment Communities is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Mid-America Apartment Communities? 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 firstname.lastname@example.org. 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.