Market analysts’ consensus outlook for the coming year seems relatively subdued, with earnings continuing to flop around in the negative territory, reaching $-147.8M in 2018. However, earnings should move into an upward trend, reaching $-120.0M in 2019, and $-69.1M in 2020.
Even though it is useful to be aware of the growth each year relative to today’s level, it may be more valuable to estimate the rate at which the earnings are growing every year, on average. The advantage of this method is that it ignores near term flucuations and accounts for the overarching direction of Immunomedics’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 the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 55.78%. This means that, we can expect Immunomedics will grow its earnings by 55.78% every year for the next couple of years.
For Immunomedics, there are three key aspects you should further examine:
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 IMMU’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 IMMU? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!