Build-A-Bear (BBW) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility. Build-A-Bear (BBW) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [1]. Earnings Growth - Build-A-Bear has a historical EPS growth rate of 58.2%, with projected EPS growth of 8.8% for the current year, significantly outperforming the industry average of -8.3% [3]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 6.2%, surpassing the industry average of -5.5%. Over the past 3-5 years, Build-A-Bear's annualized cash flow growth rate has been 44.1%, compared to the industry average of 6.9% [4]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Build-A-Bear, with the Zacks Consensus Estimate for the current year increasing by 2.8% over the past month [5]. Overall Assessment - Build-A-Bear holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating strong potential for outperformance in the growth stock category [6].