3 Reasons Growth Investors Will Love Federal Signal (FSS)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Federal Signal (FSS) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Federal Signal has a historical EPS growth rate of 12.7%, but projected EPS growth for this year is significantly higher at 26.1%, outperforming the industry average of 11.1% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 24%, which is substantially above the industry average of -7.7%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 11.8%, compared to the industry average of 9.7% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Federal Signal, with the Zacks Consensus Estimate for the current year increasing by 3.5% over the past month, indicating favorable market sentiment [9]. Overall Assessment - Federal Signal has achieved a Growth Score of B and a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [10].