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OraSure Technologies, Inc. (NASDAQ:OSUR): Immense Growth Potential?

Simply Wall St

Since OraSure Technologies, Inc. (NASDAQ:OSUR) released its earnings in December 2018, it seems that analyst expectations are fairly bearish, with profits predicted to rise by -30% next year compared with the higher past 5-year average growth rate of 50%. Currently with trailing-twelve-month earnings of US$20m, we can expect this to reach US$14m by 2020. Below is a brief commentary around OraSure Technologies's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

View our latest analysis for OraSure Technologies

Exciting times ahead?

The 4 analysts covering OSUR view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of OSUR's earnings growth over these next few years.

NasdaqGS:OSUR Past and Future Earnings, April 11th 2019

This results in an annual growth rate of 20% based on the most recent earnings level of US$20m to the final forecast of US$42m by 2022. EPS reaches $0.65 in the final year of forecast compared to the current $0.33 EPS today. Margins are currently sitting at 11%, which is expected to expand to 20% by 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For OraSure Technologies, I've put together three essential 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 OraSure Technologies 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 OraSure Technologies is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of OraSure Technologies? 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.