Growth Stock Recap – Analyst Views on Shares of Canon Inc. (NYSE:CAJ) – Daily Stock Letter

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Canon Inc. (NYSE:CAJ) shares have been experiencing accelerated earnings and sales growth over the past five years.  Over that time frame the firm has seen earnings growth of 3.10% and sales growth of 1.20%.

Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines. 

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 13.39% for next year and have a $25.45 one year price target on the stock.   The stock recently traded at $29.69.


Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Canon Inc. (NYSE:CAJ)‘s stock was 7.39%.  Over the last week of the month, it was -0.34%, 1.72% over the last quarter, and  5.63% for the past six months. 

Earnings Per Share (EPS):

EPS is what each share is worth and indicates how much money their sharehoders would acquire if the company was to pay out all of its profits.  Earnings Per Share is computed by dividing the profit total by its share total.  If a company’s profit is $800 million and there are 40 million shares, then the EPS is $20.  EPS is a fantastic way to compare and contrast companies in the same industry.  When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend. Canon Inc. (NYSE:CAJ)’s EPS is 1.95.  Last year, their EPS growth was 5.00% while their EPS growth over the past five years is 3.10%.  Analysts are predicting Canon Inc.’s stock to grow 13.39% over the next year and 1.00% over the next five.

Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past.

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