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Is Willdan (WLDN) a Solid Growth Stock? 3 Reasons to Think "Yes"
WLDNWilldan(WLDN) ZACKS·2024-11-11 18:46

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Willdan Group (WLDN) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the energy efficiency and sustainability consulting sector, which is currently positioned for growth [3] Group 2: Earnings Growth - Willdan has a historical EPS growth rate of 32.6%, with projected EPS growth of 28.6% for the current year, significantly outperforming the industry average of 5.6% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Willdan is reported at 44.2%, well above the industry average of 5.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 12.7%, compared to the industry average of 10.8% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Willdan have been revised upward, with the Zacks Consensus Estimate increasing by 5.8% over the past month [9] - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, indicating favorable conditions for Willdan [8] Group 5: Investment Positioning - Willdan's combination of strong earnings growth, robust cash flow growth, and positive earnings estimate revisions positions it well for outperformance, making it an attractive option for growth investors [10]