3 Reasons Growth Investors Will Love Flexsteel (FLXS)

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Flexsteel Industries (FLXS) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [4] - Flexsteel's historical EPS growth rate is 16%, but projected EPS growth for this year is significantly higher at 67.3%, surpassing the industry average of 37.7% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Flexsteel's year-over-year cash flow growth is 68.9%, compared to an industry average of -20.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 8%, while the industry average is 2.9% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Flexsteel's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 8.6% over the past month [9] Group 5: Conclusion - Flexsteel has achieved a Growth Score of A and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [11]