Is Moody's (MCO) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging. Moody's is highlighted as a recommended growth stock based on its favorable metrics and rankings [1][2]. Earnings Growth - Moody's historical EPS growth rate is 2.2%, but projected EPS growth for this year is 14.5%, surpassing the industry average of 14.4% [3]. Asset Utilization Ratio - Moody's asset utilization ratio (sales-to-total-assets) is 0.45, indicating the company generates $0.45 in sales for every dollar in assets, significantly higher than the industry average of 0.21. Additionally, Moody's sales are expected to grow by 13.3% this year, compared to an industry average of 0% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Moody's, with the Zacks Consensus Estimate for the current year increasing by 5.4% over the past month [5]. Overall Positioning - Moody's has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [6].