Market analysts’ consensus outlook for next year seems relatively subdued, with earnings continuing to flop around in the negative territory, arriving at -US$45.67M in 2019. In addition, earnings are expected to fall further in the following year, before bouncing back up again to -US$52.54M in 2021.
While it’s useful to be aware of the rate of growth year by year relative to today’s value, it may be more beneficial analyzing the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that we can get a better picture of the direction of Eiger BioPharmaceuticals’s earnings trajectory over the long run, irrespective of near term fluctuations, be more volatile. To calculate this rate, I put 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 11.82%. This means that, we can assume Eiger BioPharmaceuticals will grow its earnings by 11.82% every year for the next couple of years.
For Eiger BioPharmaceuticals, 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 EIGR’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 EIGR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!