3 Reasons Why Growth Investors Shouldn't Overlook Altair Engineering (ALTR)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Altair Engineering identified as a promising candidate due to its strong growth metrics and favorable rankings [1][2]. Group 1: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly attractive as it indicates strong future prospects [5]. - Altair Engineering has a historical EPS growth rate of 34.3%, with projected EPS growth of 17% for the current year, surpassing the industry average of 13.4% [6]. Group 2: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [7]. - Altair Engineering's year-over-year cash flow growth stands at 73.8%, significantly higher than the industry average of 9.5% [7]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.8%, compared to the industry average of 3.6% [8]. Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making this a valuable metric for investors [9]. - The current-year earnings estimates for Altair Engineering have increased by 11.1% over the past month, indicating a favorable outlook [10]. Group 4: Overall Positioning - Altair Engineering holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [11].