Analysts’ outlook for next year seems pessimistic, with earnings becoming even more negative, generating -US$149.57M in 2019. Moreover, earnings are expected to fall off in the following year, before bouncing back up again to -US$151.53M in 2021.
While it’s useful to understand the growth rate each year relative to today’s value, it may be more valuable gauging the rate at which the earnings are moving every year, on average. The advantage of this technique is that we can get a bigger picture of the direction of Atara Biotherapeutics’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To compute this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 14.25%. This means, we can expect Atara Biotherapeutics will grow its earnings by 14.25% every year for the next couple of years.
For Atara Biotherapeutics, there are three key factors 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 ATRA’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 ATRA? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!