The latest earnings announcement wallstreet:online AG (ETR:WSO1) released in March 2019 indicated that the company benefited from a large tailwind, eventuating to a high double-digit earnings growth of 82%. Below, I've laid out key growth figures on how market analysts predict wallstreet:online's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for wallstreet:online

Market analysts' consensus outlook for the coming year seems buoyant, with earnings expanding by a significant 70%. This high growth in earnings is expected to continue, bringing the bottom line up to €7.6m by 2022.

Although it’s helpful to understand the rate of growth year by year relative to today’s figure, it may be more beneficial estimating the rate at which the company is rising or falling every year, on average. The pro of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of wallstreet:online's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 25%. This means that, we can anticipate wallstreet:online will grow its earnings by 25% every year for the next few years.

Next Steps:

For wallstreet:online, there are three pertinent factors you should look at:

1. Valuation: What is WSO1 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 WSO1 is currently mispriced by the market.

2. Future Earnings: How does WSO1's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.

3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of WSO1? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.