Oceaneering International (OII) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Oceaneering International (OII) 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] - Oceaneering International has a historical EPS growth rate of 144.1%, with projected EPS growth of 75% this year, significantly surpassing the industry average of 12.8% [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] - Oceaneering International has an S/TA ratio of 1.14, indicating greater efficiency in generating sales compared to the industry average of 0.98 [6] Group 4: Sales Growth - The company is also well-positioned for sales growth, with expected sales growth of 8.4% this year, while the industry average is 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Oceaneering International have been revised upward, with a 0.4% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Overall Positioning - Oceaneering International has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for outperformance [9]