Anyone who reads the financial press or watches television will have heard the term “beat the street”, which really just means to beat Wall Street earnings forecasts. Wall Street analysts’ consensus earnings estimates are used by the market to judge stock performance.
Consensus earnings estimates are far from perfect, but they are watched by many investors and play an important role in measuring the appropriate valuation for a stock. Investors measure stock performance on the basis of a company’s earnings power. To make a proper assessment, investors seek a sound estimate of this year’s and next year’s earnings per share (EPS), as well as a strong sense of how much the company will earn even farther down the road.
The stocks covered in this article are considered high-growth, with 1-year projected EPS growth above 25%.
EMCORE Corporation (NASDAQ:EMKR) offers a portfolio of compound semiconductor-based products for the broadband, fiber optics, space and solar power markets. The Company operates in two segments: Fiber Optics and Photovoltaics.
EMKR current market price is $8.40 with a 1 year price target of $9.50. The stock is trading 1.82% above its 52-week high and 68.00% above its 52-week low. Shares are trading 20.41% above their 50-day moving average and 32.39% above their 200-day moving average. It comes in with the P/S value of 2.10. Analyst projected EPS growth over the next year at 164.71%. The average rating on the stock by the analyst community is 2.00.
BHP Billiton Limited (ADR) (NYSE:BHP) is engaged in exploration, development, production, processing and marketing of minerals, such as iron ore, metallurgical and energy coal, copper, aluminum, manganese, uranium, nickel, silver and potash.
BHP was trading for $26.48, up almost 0.88% for the day, versus the analysts’ mean target price of $39.51 for the company. It has a 2.50 mean recommendation and is currently trading at a 1.51 P/S value. The company’s expected EPS growth rate for next fiscal year is 48.22%. The stock is trading -47.68% below its 52-week high and 2.20% above its 52-week low. Shares are trading -17.23% below their 50-day moving average and -32.46% below their 200-day moving average.
Yamana Gold Inc. (USA) (NYSE:AUY) is engaged in gold mining and related activities, including exploration, extraction, processing and reclamation. The Company’s production mines include Chapada, Brazil; El Penon, Chile; Canadian Malartic, Canada; Mercedes, Mexico; Gualcamayo, Argentina; Jacobina, Brazil; Minera Florida, Chile, and Other Producing Mines. Its development properties include Cerro Moro, Agua Rica and Suyai in Argentina.
AUY recently moved to $2.37 and the average price target from Wall Street research analysts covering the stock is $62.13. The stock is trading -50.18% below its 52-week high and 68.34% above its 52-week low with a 1.18 P/S value. Shares are trading 13.14% above their 50-day moving average and -15.13% below their 200-day moving average. The 1 year forecasted EPS growth rate stands at a very respectable 28.20%. The stock holds an analysts’ rating of 2.50.