Looking for a Growth Stock? 3 Reasons Why Cambium (CMBM) is a Solid Choice

Core Insights - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] - The Zacks Growth Style Score simplifies the process of finding promising growth stocks, with Cambium (CMBM) currently recommended due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of potential stock price gains [4] - Cambium's projected EPS growth for this year is 95.4%, significantly higher than the industry average of 41.4% [5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating how efficiently a company generates sales from its assets [6] - Cambium's S/TA ratio is 0.77, outperforming the industry average of 0.35, indicating higher efficiency in asset utilization [6] Sales Growth - Sales growth is another critical factor, with Cambium expected to achieve a sales growth of 17.6% this year, compared to the industry average of 1.8% [7] Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with stock price movements, making them a valuable indicator for investors [8] - Cambium's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.9% over the past month [9] Conclusion - Cambium holds a Zacks Rank of 2 and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors [11]