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3 Reasons Why Growth Investors Shouldn't Overlook Willdan (WLDN)
WLDNWilldan(WLDN) ZACKS·2024-11-27 18:46

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Willdan Group (WLDN) is currently highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company operates in the energy efficiency and sustainability consulting sector, which is positioned for growth [3] Group 2: Earnings Growth - Willdan has a historical EPS growth rate of 32.6%, with projected EPS growth of 28.6% for the current year, significantly outperforming the industry average of 5.6% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Willdan is 44.2%, far exceeding the industry average of 1.7%, indicating strong operational efficiency [5] - Over the past 3-5 years, Willdan's annualized cash flow growth rate has been 12.7%, compared to the industry average of 10.8% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Willdan, with the current-year earnings estimates increasing by 5.8% over the past month, suggesting strong future performance [7] Group 5: Investment Positioning - Willdan's combination of a Growth Score of A and a Zacks Rank of 2 positions it well for potential outperformance, making it an attractive option for growth investors [9][11]