What Should You Know About Realogy Holdings Corp’s (RLGY) Future?
Based on the latest analyst predictions, Realogy Holdings Corp (NYSE:RLGY) is estimated to sizably grow its earnings by 19.69% in the upcoming three years. With the recent EPS being $1.733, expected growth will push the upcoming EPS to $2.074. I am going to look at the latest data on RLGY to assess whether this expected growth is reasonable. See our latest analysis for RLGY
Exciting times ahead?
RLGY is covered by 9 analysts who by consensus are expecting earnings to increase from today’s level of $1.733 to $2.074 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 19.69% over the next few years, which is an optimistic outlook in the near term. During the same time and profits (net income) are predicted to escalate from $244M to $292M in the next couple of years, growing by 19.69%. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
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 exhibits a continuation of this level or if the company is expected to face some further headwinds. RLGY delivered a significantly high triple-digit growth rate in the past couple of years, compared to the less exciting rate expected this year. This may indicate a more sustainable level of growth as the company comes off a high-growth period. On the other hand, a more pessimistic outlook questions the company’s ability to continue as a high performer.
Next Steps:
For RLGY, I’ve compiled three fundamental aspects you should further research:
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 RLGY 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 RLGY is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of RLGY? 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.
