Analysts Are Betting On Vertex Energy, Inc. (NASDAQ:VTNR) With A Big Upgrade This Week

Simply Wall St
·2 min read

Vertex Energy, Inc. (NASDAQ:VTNR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Vertex Energy will make substantially more sales than they'd previously expected. The stock price has risen 4.0% to US$14.40 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

After this upgrade, Vertex Energy's three analysts are now forecasting revenues of US$3.2b in 2022. This would be a huge improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$2.5b in 2022. It looks like there's been a clear increase in optimism around Vertex Energy, given the chunky increase in revenue forecasts.

View our latest analysis for Vertex Energy

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vertex Energy's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Vertex Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display exponential annualised growth until the end of 2022. If achieved, this would be a much better result than the 6.0% annual decline over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 4.5% annually for the foreseeable future. So although Vertex Energy is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Vertex Energy this year. They're also forecasting for revenues to perform better than companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Vertex Energy.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Vertex Energy to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.