Yahoo Finance How Do Analysts See Parsley Energy, Inc. (NYSE:PE) Performing Over The Next Year?
After Parsley Energy, Inc.'s (NYSE:PE) earnings announcement in June 2019, it seems that analyst forecasts are substantially optimistic, with profits predicted to ramp up by an impressive 51% next year, though this is noticeably lower than the past 5-year average earnings growth of 58%. Currently with trailing-twelve-month earnings of US$369m, we can expect this to reach US$556m by 2020. Below is a brief commentary on the longer term outlook the market has for Parsley Energy. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
See our latest analysis for Parsley Energy
Can we expect Parsley Energy to keep growing?
Over the next three years, it seems the consensus view of the 22 analysts covering PE is skewed towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of PE's earnings growth over these next few years.
This results in an annual growth rate of 25% based on the most recent earnings level of US$369m to the final forecast of US$917m by 2022. This leads to an EPS of $2.09 in the final year of projections relative to the current EPS of $1.36. In 2022, PE's profit margin will have expanded from 20% to 35%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Parsley Energy, there are three pertinent 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.
Valuation: What is Parsley Energy 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 Parsley Energy is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Parsley Energy? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
