Stock Analysis

News Flash: Analysts Just Made A Captivating Upgrade To Their Alumina Limited (ASX:AWC) Forecasts

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Shareholders in Alumina Limited (ASX:AWC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the ten analysts covering Alumina are now predicting revenues of US$1.2m in 2020. If met, this would reflect a huge 198% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.0m of revenue in 2020. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

Check out our latest analysis for Alumina

ASX:AWC Earnings and Revenue Growth December 25th 2020

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Alumina's rate of growth is expected to accelerate meaningfully, with the forecast 198% revenue growth noticeably faster than its historical growth of 44% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Alumina is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Alumina this year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Alumina.

Analysts are definitely bullish on Alumina, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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