Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - ITT is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4] - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 10.6% this year, surpassing the industry average of 7.4% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - ITT's year-over-year cash flow growth stands at 14.7%, significantly higher than the industry average of -9.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 6.6%, compared to the industry average of 5.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for ITT have increased by 1.3% over the past month, indicating a favorable outlook [9] Group 5: Overall Assessment - ITT has achieved a Zacks Rank of 2 and a Growth Score of B, suggesting it is a potential outperformer and a solid choice for growth investors [11]

Investors might want to bet on ITT (ITT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings picture is a ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Sty ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Group 1: Momentum Style Score - ITT currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for ITT is 2 (Buy), suggesting a favorable outlook for the stock [3] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) with Style Scores of "A or B" tend to outperform the market over the following month [3] Group 2: Price Performance - ITT shares have increased by 1.57% over the past week, while the Zacks Diversified Operations industry has decreased by 3.45% [5] - Over the past month, ITT's price change is 5.11%, outperforming the industry's 1.56% [5] - In the last quarter, ITT shares rose by 11.73%, and over the past year, they increased by 33.5%, compared to the S&P 500's 11.71% and 19.86% respectively [6] Group 3: Trading Volume - ITT's average 20-day trading volume is 437,079 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 4: Earnings Outlook - In the past two months, three earnings estimates for ITT have been revised upwards, increasing the consensus estimate from $6.37 to $6.46 [9] - For the next fiscal year, four estimates have moved higher with no downward revisions [9] Group 5: Conclusion - Given the strong momentum indicators and positive earnings outlook, ITT is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - ITT is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - ITT holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth [2] Group 2: Earnings Growth - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 10.1% for the current year, surpassing the industry average of 8.6% [5] Group 3: Cash Flow Growth - ITT's year-over-year cash flow growth stands at 14.7%, significantly higher than the industry average of -9.3%, highlighting its strong cash accumulation capabilities [6] - The company's annualized cash flow growth rate over the past 3-5 years is 6.6%, compared to the industry average of 5.3% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for ITT, with the Zacks Consensus Estimate for the current year increasing by 0.9% over the past month [8] Group 5: Investment Positioning - ITT has achieved a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]

Core Insights - Marubeni Corp. (MARUY) has a stronger Zacks Rank of 1 (Strong Buy) compared to ITT's Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend for MARUY [3] - Value investors are encouraged to consider various valuation metrics to assess whether a company is undervalued at its current share price levels [3][4] Valuation Metrics - MARUY has a forward P/E ratio of 9.19, significantly lower than ITT's forward P/E of 25.42, suggesting that MARUY may be undervalued [5] - The PEG ratio for MARUY is 1.42, while ITT's PEG ratio is 2.06, indicating that MARUY has a better balance between its price and expected earnings growth [5] - MARUY's P/B ratio stands at 1.35, compared to ITT's P/B of 4.99, further supporting the notion that MARUY is more attractively valued [6] Conclusion - Given the stronger estimate revision activity and more favorable valuation metrics, MARUY is positioned as the superior option for value investors compared to ITT [7]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding investors in selecting stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, outperforming the S&P 500 [7] - A significant number of stocks can hold a Strong Buy or Buy rank, making the Style Scores essential for narrowing down investment choices [8] Investment Strategy - For optimal returns, investors should consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still present risks due to declining earnings forecasts [10] Company Spotlight: ITT Inc. - ITT Inc., based in New York City, is a leader in high-technology engineering and manufacturing, holding a Zacks Rank of 2 (Buy) and a VGM Score of B [11] - The company has seen a 1.8% increase in shares over the past four weeks, with three analysts raising earnings estimates for fiscal 2025, resulting in a Zacks Consensus Estimate of $6.45 per share [12]

Core Insights - ITT Inc. reported adjusted earnings of $1.64 per share for Q2 2025, exceeding the Zacks Consensus Estimate of $1.62, marking a 10.1% year-over-year increase driven by sales growth in the Connect & Control Technologies segment [1][9] - Total revenues reached $972 million, surpassing the consensus estimate of $947 million, with a year-over-year growth of 7.3% [2][9] Segment Performance - The Industrial Process segment generated revenues of $355.9 million, up 7.6% year-over-year, with organic sales increasing by 5.5% and adjusted operating income rising by 12.6% [3] - The Motion Technologies segment reported revenues of $365.7 million, a decrease of 4.9% year-over-year due to the Wolverine divestiture, although organic revenues increased by 3% [4] - Revenues from the Connect & Control Technologies segment were $251.9 million, reflecting a 31.3% year-over-year increase, with adjusted operating income rising by 24.9% [5] Financial Metrics - ITT's cost of revenues increased by 6.2% year-over-year to $625.6 million, while gross profit rose by 9.5% to $346.8 million [6] - Adjusted operating income increased by 9.2% year-over-year to $179.0 million, with a margin expansion of 30 basis points to 18.4% [6] Balance Sheet and Cash Flow - As of the end of Q2 2025, ITT had cash and cash equivalents of $467.9 million, up from $439.3 million at the end of Q4 2024 [7] - In the first half of 2025, ITT generated net cash of $267.1 million from operating activities, an increase from $215.5 million in the prior year, with free cash flow reaching $213.9 million [8] 2025 Outlook - ITT raised its 2025 adjusted earnings guidance to a range of $6.35-$6.55 per share, indicating an 8-11% increase from the previous year [11] - Revenue growth is projected between 5-7%, with an adjusted operating margin estimated between 18.1% and 18.7% [12]

Core Insights - ITT reported adjusted earnings per share of $1.64, exceeding the analyst forecast of $1.61, and revenue of $972.4 million, surpassing the consensus estimate of $948.47 million [1][2] - Orders exceeded $1 billion, resulting in a backlog of nearly $2 billion at the end of the quarter, indicating strong demand and growth across all major segments [1][5][8] Financial Performance - Adjusted EPS increased by 10.1% year-over-year, while revenue grew by 7.3% [2][5] - Operating margin improved to 18.0%, with company-wide operating income rising nearly 10% [2][7] - Free cash flow reached $137.3 million, a 2.1% increase from the previous year [2][9] Segment Performance - Motion Technologies reported sales of $365.7 million, a 4.9% decline, but showed organic growth of 3.0% [6] - Industrial Process generated $355.9 million in revenue, up 7.6% reported and 5.5% organically [6] - Connect & Control Technologies saw a 31.3% increase in sales to $251.9 million, with organic growth of 4.5% [6] Strategic Focus - ITT is focusing on global diversification and expanding in high-growth markets, with consistent investment in R&D [4] - Recent innovations include energy-saving industrial motor drives and targeted acquisitions to enhance exposure to aerospace and sustainability-linked markets [4] Future Outlook - Management raised full-year revenue guidance to a 5-7% increase, with adjusted EPS expected to be between $6.35 and $6.55, reflecting year-over-year growth of 8-11% [10] - Free cash flow is projected to be in the $450-500 million range, accounting for 12-13% of revenue [10] - Investors should monitor segment-level margin improvements, order trends, and the impact of tariff-related cost increases [11]

Shares of ITT have returned -0.4% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Revenue- Motion Technologies (MT): $365.7 million versus $361.86 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -4.9% change. Revenue- Intersegment eliminations: $-1.1 million compared to the $-34.38 million average estimate ba ...