UDR Inc’s (NYSE:UDR) latest earnings announcement in December 2017 showed that the company experienced a substantial headwind with earnings falling by -59.22%. Below, I’ve laid out key numbers on how market analysts perceive UDR’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for UDR

Market analysts’ prospects for next year seems pessimistic, with earnings declining by a double-digit -49.75%. Beyond this, earnings are predicted to continue to be below today’s level, with a decline of -20.43% in 2020, eventually reaching US$93.77M in 2021.

Even though it is informative understanding the rate of growth year by year relative to today’s value, it may be more valuable to evaluate the rate at which the business is moving on average every year. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of UDR’s earnings trajectory over time, 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 -3.98%. This means that, we can anticipate UDR will chip away at a rate of -3.98% every year for the next few years.

Next Steps:

For UDR, there are three fundamental factors you should further examine:

1. 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.

2. Valuation: What is UDR 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 UDR is currently mispriced by the market.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of UDR? 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 pass 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.