3 Reasons Growth Investors Will Love Packaging Corp. (PKG)

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Packaging Corp. (PKG) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth prospects beyond traditional metrics [2] Group 2: Earnings Growth - The historical EPS growth rate for Packaging Corp. is 8.4%, but projected EPS growth for this year is 24.6%, significantly surpassing the industry average of 5.2% [5] Group 3: Asset Utilization - Packaging Corp. has an asset utilization ratio (sales-to-total-assets ratio) of 0.93, indicating that the company generates $0.93 in sales for every dollar in assets, which is higher than the industry average of 0.83 [6] Group 4: Sales Growth - The company's sales are expected to grow by 7.6% this year, compared to the industry average of 0.4%, highlighting its strong sales growth potential [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Packaging Corp., with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month [8] Group 6: Investment Potential - Packaging Corp. holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a potential outperformer and a solid choice for growth investors [10]