Yum China (YUMC) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility. Yum China Holdings (YUMC) is highlighted as a recommended growth stock based on its favorable growth prospects and strong Zacks Rank [1][2]. Group 1: Earnings Growth - Yum China's historical EPS growth rate is 5.7%, but projected EPS growth for this year is 15.5%, significantly higher than the industry average of 5.4% [5]. Group 2: Asset Utilization - Yum China has an asset utilization ratio (sales-to-total-assets ratio) of 0.96, indicating it generates $0.96 in sales for every dollar in assets, which is better than the industry average of 0.95 [6]. Group 3: Sales Growth - The company's sales are expected to grow by 3.8% this year, surpassing the industry average growth of 2.6% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Yum China, with the Zacks Consensus Estimate for the current year increasing by 4.1% over the past month [8]. Group 5: Overall Positioning - Yum China has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth investment space [9].