3 Reasons Why Growth Investors Shouldn't Overlook Universal Technical (UTI)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Universal Technical Institute (UTI) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Universal Technical has a historical EPS growth rate of 39%, with projected EPS growth of 28.7% for the current year, significantly surpassing the industry average of 20.6% [4]. - Earnings growth is a critical factor for growth investors, as it often indicates strong future stock price gains [3]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 60.3%, which is notably higher than the industry average of -10.5% [5]. - Historical cash flow growth for Universal Technical stands at an annualized rate of 38.6% over the past 3-5 years, compared to the industry average of 6.5% [6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Universal Technical, with the Zacks Consensus Estimate for the current year increasing by 5.5% over the past month [7]. - Positive earnings estimate revisions are correlated with near-term stock price movements, making this a favorable indicator for investors [7]. Group 4: Overall Positioning - Universal Technical has achieved a Growth Score of A and holds a Zacks Rank 1 (Strong Buy), positioning it well for potential outperformance in the market [9][10].