EPS Growth % Five-Year Mean Estimate

Also known as projected EPS growth, the mean estimate of long-term EPS growth, derived from all polled analysts' estimates.

Benefit

How a stock performs over the long term will depend on how the company does over the long term. The five-year earnings growth forecast shows what the consensus is among analysts concerning the company’s long-term growth rate.

Origin

This information is provided by Multex.

For the Pros

Forecasting anything is hard. Forecasting something as volatile as corporate earnings five years into the future is very, very hard. How much faith to put into analysts’ five-year estimate will depend on the company. The steadier its earnings, the more dependable those forecasts will tend to be. And remember: The higher the earnings forecasts are, the higher the expectations are for the company, and the more costly will be any failure to match those expectations.