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3 Reasons Growth Investors Will Love Cambium (CMBM)
CMBMCambium Networks(CMBM) ZACKS·2025-02-17 18:46

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Cambium (CMBM) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Cambium's historical EPS growth rate is 3.4%, but projected EPS growth for this year is expected to be 96.4%, significantly surpassing the industry average of 41.4% [5]. Group 2: Asset Utilization Ratio - Cambium has an asset utilization ratio (sales-to-total-assets ratio) of 0.77, indicating that the company generates $0.77 in sales for every dollar in assets, compared to the industry average of 0.36, showcasing superior efficiency [6]. Group 3: Sales Growth - The company's sales are projected to grow by 15.6% this year, which is substantially higher than the industry average growth of 1.5% [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Cambium have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month, indicating a positive trend in earnings revisions [8]. Group 5: Overall Positioning - Cambium holds a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [10].