Analysts covering Avangrid Inc (NYSE:AGR) are predicting double-digit earnings per share growth of 23.73% over the following three years. With the recent EPS being $2.181, expected growth will push the upcoming EPS to $2.698. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. See our latest analysis for AGR
How is Avangrid going to perform in the future?
AGR is covered by 4 analysts who by consensus are expecting earnings to increase from today’s level of $2.181 to $2.698 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 23.73% over the next few years, which is an optimistic outlook in the near term. In the same period revenue is predicted to increase from $5,998M to $6,644M and profits (net income) are predicted to escalate from $675M to $835M in the next couple of years, roughly growing 1.2x. Moreover, future margins are predicted to be a respectable 12.59%.
Is this similar growth to the past?
The past can be a helpful 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. AGR’s earnings growth the past couple of years was 36.42% which indicates that the company’s past performance will continue to persist into the future. This means AGR has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For AGR, 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 AGR 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 AGR is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AGR? 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.