Yahoo Finance What Are Analysts Expecting From Radian Group Inc. (NYSE:RDN) Over The Next Year?
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Based on Radian Group Inc.’s (NYSE:RDN) recently announced earnings update on 31 December 2018, analyst consensus outlook seem bearish, with profits predicted to drop by -1.3% next year. Though this is still an improvement on its past 5-year earnings growth rate of -11%, on average. Presently, with latest-twelve-month earnings at US$606m, we should see this fall to US$598m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
View our latest analysis for Radian Group
What can we expect from Radian Group in the longer term?
The 8 analysts covering RDN view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for RDN, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, RDN’s earnings should reach US$754m, from current levels of US$606m, resulting in an annual growth rate of 4.2%. This leads to an EPS of $3.45 in the final year of projections relative to the current EPS of $2.83. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 48% to 46% by the end of 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Radian Group, I’ve compiled three essential 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 Radian Group 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 Radian Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Radian Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
