Based on the latest analyst predictions, Tanger Factory Outlet Centers Inc (NYSE:SKT) is estimated to considerably grow its earnings by 55.86% next year. With the recent EPS being $0.626, expected growth will push the upcoming EPS to $0.976. I am going to look at the latest data on SKT to assess whether this expected growth is reasonable. View our latest analysis for Tanger Factory Outlet Centers
Exciting times ahead for SKTInvestors in Tanger Factory Outlet Centers have been patiently waiting for the uptick in earnings and if you believe the analysts covering the stock then the following year will be very interesting. Expectation from the stock’s 4 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $0.626 to $0.976 over the next year. This indicates a relatively solid earnings per share growth rate of 55.86% over the next 1-2 years, which is an optimistic outlook in the near term. During the same time we should see the revenue reduce slightly from $494M $0M and profits (net income) are predicted to rise from $59M to $94M in upcoming year, roughly growing 1.6x. Though, future margins are predicted to be a respectable 19.13%.
Is the growth built on solid basis?The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. However, SKT’s earnings growth last year was negative, at -78.37%. Although its past performance illustrates a different picture to earnings growth moving forward, it could also mean SKT is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
For SKT, I’ve compiled three relevant factors 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 SKT 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 SKT is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of SKT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!