G1 Therapeutics, Inc. (NASDAQ:GTHX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that G1 Therapeutics will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from G1 Therapeutics' seven analysts is for revenues of US$46m in 2022, which would reflect a substantial 92% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$3.82. Yet before this consensus update, the analysts had been forecasting revenues of US$42m and losses of US$3.85 per share in 2022. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

Check out our latest analysis for G1 Therapeutics

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting G1 Therapeutics' growth to accelerate, with the forecast 138% annualised growth to the end of 2022 ranking favourably alongside historical growth of 74% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that G1 Therapeutics is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting G1 Therapeutics is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at G1 Therapeutics.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple G1 Therapeutics analysts - going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.