3 Reasons Why Growth Investors Shouldn't Overlook SPS Commerce (SPSC)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with SPS Commerce (SPSC) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][8]. Group 1: Earnings Growth - SPS Commerce has a historical EPS growth rate of 19.7%, with projected EPS growth of 21.4% for the current year, significantly outperforming the industry average of 5.6% [4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for SPS Commerce stands at 20.6%, which is substantially higher than the industry average of 1.7% [5]. - Over the past 3-5 years, the annualized cash flow growth rate for SPS Commerce has been 26.6%, compared to the industry average of 10.8% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for SPS Commerce have been revised upward, with the Zacks Consensus Estimate increasing by 3% over the past month, indicating a positive trend in earnings estimate revisions [7]. Group 4: Overall Positioning - SPS Commerce has achieved a Growth Score of B and holds a Zacks Rank 2, positioning it well for potential outperformance in the growth stock category [8][9].