Eldorado Resorts, Inc. (NASDAQ:ERI): What Can We Expect From This High Growth Stock?
The most recent earnings announcement Eldorado Resorts, Inc.’s (NASDAQ:ERI) released in December 2018 revealed that the company experienced a strong tailwind, eventuating to a double-digit earnings growth of 29%. Below, I’ve laid out key growth figures on how market analysts predict Eldorado Resorts’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
Check out our latest analysis for Eldorado Resorts
Market analysts’ prospects for the upcoming year seems buoyant, with earnings rising by a significant 79%. This strong growth in earnings is expected to continue, bringing the bottom line up to US$278m by 2022.
Even though it is helpful to be aware of the growth rate each year relative to today’s value, it may be more insightful analyzing the rate at which the company is rising or falling every year, on average. The pro of this technique is that we can get a better picture of the direction of Eldorado Resorts’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 33%. This means, we can expect Eldorado Resorts will grow its earnings by 33% every year for the next couple of years.
Next Steps:
For Eldorado Resorts, I’ve compiled three fundamental aspects you should further examine:
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.
Valuation: What is ERI 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 ERI is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ERI? 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.
