Analysts’ expectations for this coming year seems pessimistic, with earnings declining by a double-digit -100.08%. In the next couple of years, earnings should continue to be below today’s level, with a decline of -84.20% in 2020, eventually reaching US$181.34m in 2021.
While it is informative understanding the rate of growth each year relative to today’s value, it may be more valuable gauging the rate at which the earnings are growing on average every year. The advantage of this method is that we can get a better picture of the direction of Symantec’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute 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 -89.17%. This means that, we can assume Symantec will chip away at a rate of -89.17% every year for the next couple of years.
For Symantec, there are three relevant factors you should further examine:
- 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.
- Valuation: What is SYMC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SYMC is currently mispriced by the market.
- Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SYMC? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!