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CoreSite Realty Corporation (NYSE:COR): Is It A Smart Long Term Opportunity?

Simply Wall St

Looking at CoreSite Realty Corporation’s (NYSE:COR) earnings update on 31 December 2018, the consensus outlook from analysts appear somewhat bearish, as a 3.7% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 38%. Currently with trailing-twelve-month earnings of US$78m, we can expect this to reach US$81m by 2020. Below is a brief commentary around CoreSite Realty’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

Check out our latest analysis for CoreSite Realty

How is CoreSite Realty going to perform in the near future?

Longer term expectations from the 16 analysts covering COR’s stock is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To get an idea of the overall earnings growth trend for COR, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:COR Past and Future Earnings, March 7th 2019

From the current net income level of US$78m and the final forecast of US$95m by 2022, the annual rate of growth for COR’s earnings is 7.4%. EPS reaches $2.56 in the final year of forecast compared to the current $2.23 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 14% to 13% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For CoreSite Realty, I’ve put together three essential 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 CoreSite Realty 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 CoreSite Realty is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CoreSite Realty? 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 editorial-team@simplywallst.com. 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.