3 Reasons Growth Investors Will Love Dorman Products (DORM)

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] - Identifying great growth stocks is challenging, especially if a company's growth story is nearing its end [1] Zacks Growth Style Score - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing a company's real growth prospects beyond traditional attributes [2] - Dorman Products (DORM) is recommended by the Zacks system, with a favorable Growth Score and a top Zacks Rank [2] Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects and potential stock price gains [3] - Dorman Products' historical EPS growth rate is 16.7%, but its projected EPS growth for this year is 52%, significantly higher than the industry average of 30.8% [4] Cash Flow Growth - Cash flow growth is particularly important for growth-oriented companies, enabling them to fund new projects without external financing [5] - Dorman Products' year-over-year cash flow growth is 1.6%, outperforming the industry average of -14% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 3.4%, compared to the industry average of 3% [6] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements [7] - Dorman Products' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 12.3% over the past month [8] Conclusion - Dorman Products has a Growth Score of B and a Zacks Rank 1, positioning it well for outperformance, making it an attractive option for growth investors [8][9]