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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Over the Wire Holdings Limited (ASX:OTW), it has a a strong history of performance as well as a buoyant future outlook going forward. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Over the Wire Holdings here.
High growth potential with proven track record
One reason why investors are attracted to OTW is its notable earnings growth potential in the near future of 32%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 69% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. Over the past year, OTW has grown its earnings by 55%, with its most recent figure exceeding its annual average over the past five years. Not only did OTW outperformed its past performance, its growth also surpassed the IT industry expansion, which generated a 51% earnings growth. This is what investors like to see!
For Over the Wire Holdings, I've compiled three key factors 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 OTW 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 OTW is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OTW? Explore our interactive list of stocks with large 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 firstname.lastname@example.org. 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.