3 Reasons Growth Investors Will Love Gilat (GILT)

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with true potential can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Gilat Satellite (GILT) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects [3] - Gilat's historical EPS growth rate is 38%, with a projected EPS growth of 37.1% this year, significantly outperforming the industry average of -25.5% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing [5] - Gilat's S/TA ratio is 0.71, indicating it generates $0.71 in sales for every dollar in assets, compared to the industry average of 0.29, showcasing greater efficiency [5] Group 4: Sales Growth - Sales growth is another critical factor, with Gilat expected to achieve a sales growth of 16.9% this year, compared to the industry average of 3.9% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Gilat's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 50% over the past month [8] Group 6: Overall Assessment - Gilat has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [9][11]