Growth Stocks and Autoliv Analysis - Investors seek growth stocks to capitalize on above-average growth in financials, which can produce exceptional returns but carry above-average risk [1] - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing a company's real growth prospects beyond traditional attributes [2] - Stocks with the best growth features consistently outperform the market, especially those with a Growth Score of A or B and a Zacks Rank 1 or 2 [3] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects and potential stock price gains [4] - Autoliv's historical EPS growth rate is 18.3%, but the projected growth for this year is 22.7%, significantly higher than the industry average of 17.7% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to undertake new projects without raising expensive outside funds [6] - Autoliv's year-over-year cash flow growth is 43.9%, far exceeding the industry average of -1.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 1.6%, compared to the industry average of 1.3% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are favorable and strongly correlated with near-term stock price movements [8] - Autoliv has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate surging 0.2% over the past month [9] Conclusion - Autoliv has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for outperformance [10][11]
Here is Why Growth Investors Should Buy Autoliv (ALV) Now
Autoliv(ALV) ZACKS·2025-01-29 18:46