Analysts Are Betting On CanWel Building Materials Group Ltd. (TSE:CWX) With A Big Upgrade This Week

Shareholders in CanWel Building Materials Group Ltd. (TSE:CWX) 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.

Following the upgrade, the most recent consensus for CanWel Building Materials Group from its three analysts is for revenues of CA$2.4b in 2021 which, if met, would be a major 33% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 32% to CA$1.58. Before this latest update, the analysts had been forecasting revenues of CA$2.1b and earnings per share (EPS) of CA$1.53 in 2021. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.

See our latest analysis for CanWel Building Materials Group

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting CanWel Building Materials Group's growth to accelerate, with the forecast 46% annualised growth to the end of 2021 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CanWel Building Materials Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected 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 CanWel Building Materials Group.

Analysts are definitely bullish on CanWel Building Materials Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other concerns 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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