Key Takeaways Five stocks cleared a screen for efficiency ratios beating industry averages, narrowing 7,906 names to 16.UNFI stands out as a leading distributor with a 52.10% average four-quarter earnings surprise.ULTA made the list as a leading U.S. beauty retailer with a 15.7% average four-quarter earnings surprise.Efficiency level measures a company’s capability to transform available input into output, and is often considered an essential parameter for gauging its potential to generate profits. A compan ...

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Electromed, Inc. (ELMD) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 31.3%, with projected EPS growth of 25.9% this year, surpassing the industry average of 19.7% [5] Group 2: Financial Metrics - Electromed's year-over-year cash flow growth stands at 48.9%, significantly higher than the industry average of -0.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.7%, compared to the industry average of 6.3% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Electromed have been revised upward, with the Zacks Consensus Estimate increasing by 2.9% over the past month [9] - Electromed has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions [10]

Group 1 - Electromed, Inc. (ELMD) shares have increased by 11.3% over the past four weeks, closing at $26.77, with a mean price target of $36.67 indicating a potential upside of 37% [1] - The average price targets range from a low of $36.00 to a high of $38.00, with a standard deviation of $1.15, suggesting a strong agreement among analysts [2] - Analysts have shown increasing optimism regarding ELMD's earnings prospects, as indicated by a positive trend in earnings estimate revisions [11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 2.9% over the last 30 days, with two estimates moving higher and no negative revisions [12] - ELMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of potential gains, it does provide a directional guide for price movement [14]

Core Insights - Electromed, Inc. will participate in NobleCon21, an emerging growth equity conference, on December 3, 2025, where CEO Jim Cunniff will present [1] - A video webcast of the presentation will be available on Electromed's website the following day [2] - Electromed specializes in airway clearance therapy products, including the SmartVest® Airway Clearance System, and was founded in 1992 [3] Company Overview - Electromed, Inc. is headquartered in New Prague, Minnesota, and focuses on manufacturing and marketing airway clearance therapy products [3] - The company has a history dating back to 1992 and aims to assist patients with compromised pulmonary function [3] Conference Details - NobleCon21 is organized by Noble Capital Markets, a full-service broker-dealer established in 1984, which provides investment and advisory services [4] - Noble Capital Markets has raised billions for companies and published over 45,000 equity research reports [4]

Group 1: Roku - Roku is the leading TV streaming platform provider in the United States, Canada, and Mexico, with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Roku's current year earnings increased by 83.3% over the last 60 days [1] - Roku's shares gained 8% over the last three months, outperforming the S&P 500's gain of 4.5% [2] Group 2: Northrim BanCorp - Northrim BanCorp is a full-service commercial bank offering a complete range of personal and business banking services, with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Northrim BanCorp's current year earnings increased by 6.4% over the last 60 days [2] - Northrim BanCorp's shares gained 6.5% over the last three months, also outperforming the S&P 500's gain of 4.5% [3] Group 3: Electromed - Electromed manufactures, markets, and sells products that provide airway clearance therapy to patients with compromised pulmonary function, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Electromed's current year earnings increased by 2.9% over the last 60 days [3] - Electromed's shares gained 28.3% over the last three months, significantly outperforming the S&P 500's gain of 4.5% [4]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Electromed, Inc. (ELMD) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 24.2%, with projected EPS growth of 25.9% this year, surpassing the industry average of 18.1% [4] Group 2: Financial Metrics - Electromed's year-over-year cash flow growth stands at 48.9%, significantly higher than the industry average of -2.4% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 12.7%, compared to the industry average of 6.3% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Electromed, with the Zacks Consensus Estimate for the current year increasing by 2.9% over the past month [7] - Electromed has achieved a Growth Score of A and a Zacks Rank of 2, indicating strong potential for outperformance [8]

Core Viewpoint - Electromed, Inc. (ELMD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - Electromed's earnings estimates have seen a 7% increase over the past three months, with an expected earnings per share of $1.07 for the fiscal year ending June 2026, indicating stability year-over-year [8]. - The upgrade reflects an improvement in Electromed's underlying business, which is likely to attract investor interest and push the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 1988, showcasing the effectiveness of the rating system [7].

Core Viewpoint - Electromed, Inc. (ELMD) shares have increased by 8.4% in the past four weeks, closing at $26.35, with a potential upside of 39.2% based on Wall Street analysts' mean price target of $36.67 [1][4]. Price Targets - The average price target for ELMD ranges from a low of $36.00 to a high of $38.00, with a standard deviation of $1.15, indicating a relatively tight clustering of estimates [2][9]. - The lowest estimate suggests a 36.6% increase from the current price, while the highest estimate indicates a 44.2% upside [2]. Analyst Sentiment - Analysts show strong agreement in revising earnings estimates higher, which historically correlates with positive stock price movements [4][11]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 2.9%, with two estimates moving higher and no negative revisions [12]. Zacks Rank - ELMD holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a solid potential upside [13]. Conclusion on Price Targets - While the consensus price target may not be a reliable predictor of the exact price movement, it does provide a useful directional guide for potential stock performance [14].

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Financial Performance - Net revenues for the three months ended September 30, 2025, were $16,887,000, an increase of 15.1% compared to $14,668,000 for the same period in 2024[60] - Homecare revenue increased by $1,678,000 or 12.7%, primarily due to an increase in direct sales representatives and higher net revenues per sales representative[61] - Hospital revenue was $1,047,000, an increase of 51.7%, reflecting an increase in sales representatives focused on the hospital market[62] - Gross profit increased to $13,197,000, or 78.1% of net revenues, compared to $11,491,000, or 78.3% of net revenues in the prior year[65] - Operating income increased by $732,000 or 37.8% to $2,670,000 for the three months ended September 30, 2025[72] - Net income for the three months ended September 30, 2025, was $2,136,000, an increase of 44.9% compared to $1,474,000 for the same period in 2024[76] Expenses and Cash Flow - Research and development expenses were $241,000, an increase of 45.2% compared to the same period in the prior year, primarily due to increased headcount and external spend[71] - Cash flows from operating activities were $169,000, consisting of net income of $2,136,000 and non-cash expenses of $717,000[77] Liquidity and Financial Resources - The company maintains a credit facility with a maximum borrowing limit of $2,500,000, which was fully available as of September 30, 2025[81] - The company expects its working capital of approximately $35,800,000 to be sufficient to meet anticipated liquidity needs for the next twelve months[80] Regulatory and Market Risks - The company emphasizes the importance of maintaining reimbursement from Medicare, Medicaid, and private insurance payers for its products[88] - The company faces risks related to component or raw material shortages, significant price increases, and changes to trade regulations[88] - The company acknowledges the potential impact of adverse economic conditions and intense competition on its operations[88] - The company recognizes the potential entry of new competitors and adverse changes in healthcare regulations as significant risks[88] Strategic Focus and Development - The company is focused on developing new sales channels, including hospital and homecare distributor channels[88] - The company anticipates ongoing compliance with regulatory requirements and aims to gain future regulatory approvals[88] - The company is committed to protecting and expanding its intellectual property portfolio[88] Cybersecurity and Operational Challenges - The company highlights the risks associated with cyberattacks and data breaches that could affect its operations[88] - The company is aware of the challenges posed by wage inflation and technical problems with its research and products[88] Forward-Looking Statements - The company does not undertake any obligation to update forward-looking statements unless required by law[87]