CPI Card Group(US:PMTS) ZACKSยท2025-03-06 18:45Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - CPI Card Group Inc. (PMTS) 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 preferred as an indicator of strong prospects [4] - CPI Card Group has a historical EPS growth rate of 42.3%, with projected EPS growth of 79.9% this year, significantly surpassing the industry average of 22.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets ratio, is an important metric for growth investing [6] - CPI Card Group's S/TA ratio is 1.44, indicating it generates $1.44 in sales for every dollar in assets, compared to the industry average of 0.65 [6] Group 4: Sales Growth - Sales growth is also a critical factor, with CPI Card Group expected to achieve a sales growth of 7.4% this year, outpacing the industry average of 4.2% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are significant, with positive revisions correlating with stock price movements [8] - The current-year earnings estimates for CPI Card Group have increased by 0.3% over the past month [8] Group 6: Overall Assessment - CPI Card Group has achieved a Zacks Rank 1 and a Growth Score of A, indicating its potential as a strong choice for growth investors [10]