Market analysts’ consensus outlook for next year seems pessimistic, with earnings becoming even more negative, arriving at $-77.3M in 2018. Additionally, earnings should fall off in the following year, decreasing to $-97.4M in 2019 and $-107.9M in 2020.
Even though it’s informative knowing the rate of growth each year relative to today’s level, it may be more valuable gauging the rate at which the business is growing on average every year. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of Corvus Pharmaceuticals’s earnings trajectory over time, be more volatile. To calculate this rate, I’ve inserted 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 6.80%. This means that, we can assume Corvus Pharmaceuticals will grow its earnings by 6.80% every year for the next couple of years.
For Corvus Pharmaceuticals, I’ve put together three important factors you should further research:
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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for CRVS’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CRVS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!