3 Reasons Why Texas Roadhouse (TXRH) Is a Great Growth Stock

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Texas Roadhouse (TXRH) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 45.3%, with projected EPS growth of 13.5% this year, surpassing the industry average of 12.5% [5] Group 2: Financial Metrics - Texas Roadhouse exhibits a year-over-year cash flow growth of 12.5%, which is above the industry average of 11.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years stands at 12%, compared to the industry average of 5.4% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Texas Roadhouse, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 2 positions Texas Roadhouse favorably for potential outperformance in the market [10][11]