Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, reaching $-38M in 2018. Moreover, earnings are expected to fall off in the following year, reducing to $-42M in 2019 and $-54M in 2020.
Even though it is informative knowing the growth year by year relative to today’s value, it may be more insightful to evaluate the rate at which the business is rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Leap Therapeutics’s earnings trajectory over time, be more volatile. To compute this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is -23.93%. This means, we can anticipate Leap Therapeutics will chip away at a rate of -23.93% every year for the next couple of years.
For Leap Therapeutics, there are three key aspects you should look at:
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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for LPTX’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of LPTX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!