This is the estimated annual growth rate of future earnings, normally projected over the next two to three years, and expressed as a percentage.

Our Long Term Growth measure is averaged over at least three different estimates obtained from banks, brokers, or analysts. A figure of 18 means that for the next two to three years, the growth in company earnings is evaluated at an average of 18% per year.

Caution: Be skeptical of high long-term growth projections that differ greatly from growth rates of associated national market indexes or industry groups. These can often result from very low earnings for the most recent few years, thereby making a firm's projected earnings growth appear very strong by comparison with the lean years. To verify this information the Industries and Indexes functions can be very helpful.