3 Reasons Why Growth Investors Shouldn't Overlook Merit Medical (MMSI)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Merit Medical (MMSI) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company specializes in disposable medical devices, which positions it well within the growth stock category [3] Group 2: Earnings Growth - Merit Medical has a historical EPS growth rate of 21.5%, with projected EPS growth of 11.3% for the current year, significantly outperforming the industry average of 7.5% [4] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth rate of 12.2%, which is notably higher than the industry average of -5.2%, indicating strong operational efficiency [5] - Over the past 3-5 years, Merit Medical has maintained an annualized cash flow growth rate of 11.5%, compared to the industry average of 2.2%, showcasing its consistent performance [6] Group 4: Earnings Estimate Revisions - Recent upward revisions in current-year earnings estimates for Merit Medical indicate a positive trend, with the Zacks Consensus Estimate increasing by 1.6% over the past month, suggesting favorable market sentiment [8] Group 5: Investment Positioning - Merit Medical has achieved a Growth Score of B and a Zacks Rank of 2, reflecting its strong growth metrics and positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]