What Should Investors Know About Eversource Energy's (NYSE:ES) Growth?
Looking at Eversource Energy's (NYSE:ES) earnings update on 30 June 2019, analyst consensus outlook appear cautiously optimistic, with profits predicted to increase by 31% next year against the past 5-year average growth rate of 5.0%. By 2020, we can expect Eversource Energy’s bottom line to reach US$1.4b, a jump from the current trailing-twelve-month of US$1.0b. Below is a brief commentary around Eversource Energy's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Eversource Energy
How will Eversource Energy perform in the near future?
The 11 analysts covering ES view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for ES, 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.
From the current net income level of US$1.0b and the final forecast of US$1.6b by 2022, the annual rate of growth for ES’s earnings is 10%. This leads to an EPS of $3.98 in the final year of projections relative to the current EPS of $3.25. In 2022, ES's profit margin will have expanded from 12% to 17%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Eversource Energy, I've put together three important aspects you should further research:
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 Eversource Energy 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 Eversource Energy is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Eversource Energy? 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.
