Bullish: This Analyst Just Lifted Their Stran & Company, Inc. (NASDAQ:SWAG) Outlook For This Year

Shareholders in Stran & Company, Inc. (NASDAQ:SWAG) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Stran's lone analyst is now forecasting revenues of US$85m in 2023. This would be a substantial 44% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 53% to US$0.02. Yet before this consensus update, the analyst had been forecasting revenues of US$72m and losses of US$0.05 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Stran

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Stran's rate of growth is expected to accelerate meaningfully, with the forecast 63% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 22% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Stran is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Stran is moving incrementally towards profitability. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Stran's future.

It's great to see the analyst upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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This article by Simply Wall St 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. Simply Wall St has no position in any stocks mentioned.