PG&E Corporation (PCG): What Can We Expect From This High Growth Stock?
PG&E Corporation (NYSE:PCG) is expected to deliver a low, single-digit 0.65% in earnings growth per share over the next three years. At a current EPS of $4.071, this growth rate means shareholders can expect an impending EPS of $4.098. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. See our latest analysis for PCG
How is PCG going to perform in the future?
PCG is covered by 11 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $4.071 to $4.098 in a few years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 0.65% over the next few years. In the same period we should see the revenue increase from $18,041M to $19,078M and net income is predicted to escalate from $2,062M to $2,075M in the next couple of years, roughly staying around the same level. Moreover, future margins are predicted to be a respectable 11.29%.
Basis for the growth
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. The company delivered a growth rate of 12.76% over the past couple of years, which is revealing of their continued performance and value creation to current shareholders. This trend gives us conviction in analysts’ expectations as PCG has already illustrated their ability to grow at this rate.
Next Steps:
For PCG, I’ve compiled three pertinent 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 PCG 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 PCG is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PCG? 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.
