Quantcast

Can Red Hat (RHT) Stock Continue to Grow Earnings?


Shutterstock photo

Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors' attention, and produce big gains as well. However, these can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses.

One such company that might be well-positioned for future earnings growth is Red Hat, Inc.RHT .This firm, which is in the Computer-Software space, saw EPS growth of 15.6% last year, and is looking great for this year too.

In fact, the current growth estimate for this year calls for earnings-per-share growth of 18.6%. Furthermore, the long-term growth rate is currently an impressive 15.3%, suggesting pretty good prospects for the long haul.

RED HAT INC Price and Consensus

RED HAT INC Price and Consensus | RED HAT INC Quote



And if this wasn't enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 2.3%. Thanks to this rise in earnings estimates, RHT has a Zacks Rank #2 (Buy) which further underscores the potential for outperformance in this company. You can seeĀ  the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.

So if you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider RHT. Not only does it have double digit earnings growth prospect, but its impressive Zacks Rank suggests that analysts believe better days are ahead for RHT as well.

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RED HAT INC (RHT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Earnings , Investing Ideas , Stocks



More from Zacks.com

Subscribe







Zacks.com
Contributor:

Zacks.com

Equity Research












Research Brokers before you trade

Want to trade FX?