Cable ONE Inc (CABO): Will The Growth Last?
Analysts covering Cable ONE Inc (NYSE:CABO) are predicting double-digit earnings per share growth of 16.68% over the next 12 months. With the recent EPS being $20.693, expected growth will push the upcoming EPS to $24.145. To assess the reasonability of CABO’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for CABO
How is CABO going to perform in the future?
CABO is covered by 4 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $20.693 to $24.145 next year. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 16.68% over the next 1-2 years. During the same time we will see the revenue increase from $909M $1,019M and profit is predicted to slightly grow from $118M to $137M in upcoming year, roughly growing 1.2x. Though, future margins are predicted to be a respectable 13.46%.
Basis for the growth
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. CABO’s earnings growth last year was 18.82% which indicates that the company’s past performance will continue to persist into the future. This means CABO 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 moving forward.
Next Steps:
For CABO, I’ve put together three important aspects you should further examine:
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 CABO 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 CABO is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CABO? 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.
