HTG Molecular Diagnostics Inc (NASDAQ:HTGM): What Can We Expect From This High Growth Stock?

The most recent earnings announcement HTG Molecular Diagnostics Inc's (NASDAQ:HTGM) released in December 2017 signalled company earnings became less negative compared to the previous year's level - great news for investors Investors may find it useful to understand how market analysts predict HTG Molecular Diagnostics's earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for HTG Molecular Diagnostics

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:

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. 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.
3. 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!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.