Growth Stocks Overview - Growth stocks are attractive due to their above-average financial growth and potential for exceptional returns, but they carry higher risk and volatility [1] - Finding great growth stocks is challenging as betting on stocks with declining growth stories can lead to significant losses [1] Zacks Growth Style Score and PJT Partners - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - PJT Partners is recommended by the Zacks system due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank 1 or 2 consistently outperform the market [3] Key Growth Factors for PJT Partners Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects [4] - PJT Partners' historical EPS growth rate is 4.7%, but its projected EPS growth for this year is 34.6%, significantly higher than the industry average of 15.3% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies to fund new projects without external financing [6] - PJT Partners' year-over-year cash flow growth is 38.1%, compared to the industry average of -22% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.9%, above the industry average of 10.7% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate with near-term stock price movements [8] - PJT Partners' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.1% over the past month [9] Conclusion - PJT Partners' combination of a Zacks Rank 2 and a Growth Score of A positions it well for outperformance, making it an attractive option for growth investors [9][10]
Looking for a Growth Stock? 3 Reasons Why PJT Partners (PJT) is a Solid Choice