Analysts’ outlook for the upcoming year seems buoyant, with earnings becoming less negative, reaching -US$52.18M in 2019. Additionally, earnings should continue its upward direction, generating -US$42.56M in 2020, and -US$34.22M in 2021.
Although it is helpful to be aware of the growth rate each year relative to today’s value, it may be more beneficial to gauge the rate at which the business is rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Fluidigm’s earnings trajectory over time, 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 20.99%. This means that, we can assume Fluidigm will grow its earnings by 20.99% every year for the next few years.
For Fluidigm, I’ve put together three key factors 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for FLDM’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 FLDM? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!