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Dril-Quip Inc (DRQ): Immense Growth Potential?

Dril-Quip Inc (NYSE:DRQ)’s impressive earnings growth per share is expected to be a big double-digit 79.69% over the next three years. At a current EPS of $0.545, this growth rate means shareholders can expect an impending EPS of $0.979. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for Dril-Quip

How is Dril-Quip going to perform in the future?

According to the analysts covering the company, in a few years should bring some good growth prospects for Dril-Quip. Expectation from the stock’s 13 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $0.545 to $0.979 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 79.69% over the next few years. During the same time we should see the revenue increase from $477M to $517M and profits (net income) are predicted to grow from $20M to $37M in the next couple of years, roughly staying around the same level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.

NYSE:DRQ Past Future Earnings Oct 26th 17
NYSE:DRQ Past Future Earnings Oct 26th 17

Is the growth built on solid basis?

The past can be an insightful 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. DRQ’s earnings growth in the last five years was a low 5.12%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.

Next Steps:

For DRQ, I’ve compiled three pertinent 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. Future Earnings: How does DRQ’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DRQ? 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.

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