What trends in VVX's EPS suggest for 2025 investments?
4/5/2025 01:32pm
V2X's EPS suggests a challenging investment environment for 2025, primarily due to the following trends:
1. **Earnings Decline**: The company's diluted EPS has experienced a compound annual growth rate (CAGR) of -23.42% over the past five years. This indicates a clear downward trend in earnings, which is a bearish signal for investors.
2. **Recent Surge**: However, the most recent quarter has seen a significant quarter-over-quarter increase of 250.68% in EPS. This could be a one-time event or a sign of a potential turnaround, but it is too early to determine if this trend will continue.
|code|Ticker|Name|Date|Diluted EPS (FY) YoY|Diluted EPS (FY)|market_code|
|---|---|---|---|---|---|---|
|VVX|VVX.N|V2X|2020|9.790209790209799|3.14|169|
|VVX|VVX.N|V2X|2021|22.929936305732475|3.86|169|
|VVX|VVX.N|V2X|2022|-117.61658031088082|-0.68|169|
|VVX|VVX.N|V2X|2023|-7.352941176470577|-0.73|169|
|VVX|VVX.N|V2X|2024|247.94520547945206|1.08|169|
3. **Analyst Expectations**: Analysts have set an average price target of $67.6, indicating a potential upside from the current price. This suggests that analysts are not entirely bearish on the stock and expect some recovery or growth.
In conclusion, while there is a risk of further earnings declines based on the 5-year trend, the recent EPS surge and analyst expectations suggest that there may be some recovery or growth potential in the near term. Investors should closely monitor the company's performance and consider the potential for a rebound in the 2025 investment horizon. However, due to the overall negative trend, V2X may still be considered a higher-risk investment.