Changyoucom Limited (CYOU): What Are The Future Prospects?
Changyoucom Limited (NASDAQ:CYOU) is predicted to grow its earnings per share by a robust double-digit 16.86% over the next three years. Presently, with an EPS of $3.075, we can expect an upcoming EPS of $3.593. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. Check out our latest analysis for Changyou.com
Exciting times ahead for CYOU
Analyst expectation from the stock’s 10 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $3.075 to $3.593 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 16.86% over the next few years. During the same time we will see the revenue increase from $537M to $702M and profit is predicted to slightly grow from $161M to $188M in the next couple of years, growing by 16.86%. However, margins look rather unappealing at the current levels of revenue and earnings.
Basis for the growth
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth exhibits a continuation of this level or if the company is expected to face some further headwinds. CYOU exhibits an encouraging move as it delivered negative growth of -10.46% over the last five years, which is expected to turn positive according to analysts’ forecasts. This could indicate a relatively successful turnaround, which is likely to please current investors.
Next Steps:
For CYOU, I’ve compiled three key aspects 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 CYOU 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 CYOU is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CYOU? 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.
