Analysts’ outlook for next year seems relatively muted, with earnings continuing to flop around in the negative territory, arriving at -US$20.59M in 2019. However, earnings are expected to move into an upward trend, reaching -US$19.70M in 2020, and -US$13.32M in 2021.
Even though it is informative knowing the rate of growth year by year relative to today’s value, it may be more insightful analyzing the rate at which the company is growing on average every year. The advantage of this technique is that we can get a bigger picture of the direction of HTG Molecular Diagnostics’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended 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 8.32%. This means that, we can anticipate HTG Molecular Diagnostics will grow its earnings by 8.32% every year for the next few years.
Next Steps:
For HTG Molecular Diagnostics, I’ve put together three pertinent aspects you should look at:
- 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.
- Future Earnings: How does HTGM’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of HTGM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!