3 Reasons Growth Investors Will Love BrightSphere Investment Group (BSIG)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - BrightSphere Investment Group (BSIG) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - BrightSphere's projected EPS growth for this year is 45.5%, significantly higher than the industry average of 12.5% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in growth investing [5] - BrightSphere has an S/TA ratio of 0.84, indicating it generates $0.84 in sales for every dollar in assets, compared to the industry average of 0.23 [6] Group 4: Sales Growth - Sales growth is another key metric, with BrightSphere expected to achieve a sales growth of 16.6% this year, far exceeding the industry average of 1.2% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - BrightSphere has seen a 7.9% increase in current-year earnings estimates over the past month [8] Group 6: Overall Positioning - BrightSphere has earned a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]