Apple Inc (NASDAQ:AAPL)’s sound earnings growth per share is expected to be a double-digit 35.11% over the next three years. At a current EPS of $8.849, this growth rate means shareholders can expect an impending EPS of $11.957. To assess the reasonability of AAPL’s earnings growth per share, we should look at its most recent growth rate delivered. View our latest analysis for Apple

Can we expect AAPL to keep growing?

AAPL is covered by 34 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $8.849 to $11.957 in a few years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 35.11% over the next few years. In the same period we will see the revenue increase from $223,507M to $276,572M and net income is predicted to escalate from $46,651M to $63,030M in the next couple of years, growing by 35.11%. At this level of revenue and profit, margins are predicted to be extremely healthy as well.

Basis for the growth

The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. AAPL’s earnings growth the past couple of years was 67.17% which indicates that the company’s past performance is quite revealing of future outcome. This means AAPL has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.

Next Steps:

For AAPL, I’ve put together three key aspects you should further research:

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 AAPL 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 AAPL is currently mispriced by the market.

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