Growth Investing and Phibro Animal Health - Growth investors focus on stocks with above-average financial growth, which can deliver solid returns but carry higher risk and volatility [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - Phibro Animal Health (PAHC) is recommended by the Zacks system due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - Phibro's historical EPS growth rate is 0 9%, but its projected EPS growth for this year is 36 1%, significantly higher than the industry average of 21 8% [5] Asset Utilization and Sales Growth - Phibro has an impressive asset utilization ratio (S/TA) of 1 07, meaning it generates $1 07 in sales per dollar of assets, compared to the industry average of 0 6 [6] - The company's sales are expected to grow 15 7% this year, outperforming the industry average of 5 3% [7] Earnings Estimate Revisions - Positive earnings estimate revisions are a strong indicator of near-term stock price movements [8] - Phibro's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate surging 0 3% over the past month [9] Conclusion - Phibro has earned a Growth Score of A and a Zacks Rank 2 due to its strong earnings estimate revisions and growth metrics [11] - This combination positions Phibro well for outperformance, making it an attractive option for growth investors [11]
Phibro (PAHC) is an Incredible Growth Stock: 3 Reasons Why