3 Reasons Why Growth Investors Shouldn't Overlook Palomar (PLMR)

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant risk 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] - Palomar (PLMR) 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 attracting investor interest, with double-digit growth being particularly favorable [3] - Palomar's historical EPS growth rate is 46.3%, with projected EPS growth of 28.5% this year, significantly surpassing the industry average of 3.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, enabling them to fund new projects without external financing [5] - Palomar's year-over-year cash flow growth is 45.1%, well above the industry average of 15.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 34.3%, compared to the industry average of 12.3% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - The Zacks Consensus Estimate for Palomar's current-year earnings has increased by 10.4% over the past month [8] Group 5: Overall Assessment - Palomar has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [10]