What Do Analysts Think About Movado Group Inc’s (MOV) Growth?
Based on the latest analyst predictions, Movado Group Inc (NYSE:MOV) is estimated to considerably grow its earnings by 65.40% in the upcoming three years. Presently, with an EPS of $1.16, we can expect an upcoming EPS of $1.919. I am going to look at the latest data on MOV to assess whether this expected growth is reasonable. Check out our latest analysis for Movado Group
Exciting times ahead for MOV
Investors in Movado Group have been patiently waiting for the uptick in earnings and if you believe the analysts covering the stock then the following year will be very interesting. Expectation of stock’s 3 analysts is high, with earnings expected to rise from today’s level of $1.16 to $1.919 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 65.40% over the next few years, which is an optimistic outlook in the near term. During the same time profit is predicted to grow from $27M to $44M in the next couple of years, growing by 65.40%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. MOV’s earnings growth the past couple of years was 67.48% which indicates that the company’s past performance is quite revealing of future outcome. This means MOV has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
Next Steps:
For MOV, there are three key factors you should look at:
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 MOV 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 MOV is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MOV? 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.
