3 Reasons Growth Investors Will Love National Fuel Gas (NFG)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - National Fuel Gas (NFG) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor attention, with double-digit growth being particularly desirable [3] - National Fuel Gas has a historical EPS growth rate of 13.7%, but projected EPS growth for this year is expected to be 37.7%, significantly higher than the industry average of 15.7% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - National Fuel Gas has a year-over-year cash flow growth of 3.8%, outperforming the industry average of -2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 9.9%, compared to the industry average of 8.9% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - National Fuel Gas has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 3.9% over the past month [8] Group 5: Overall Positioning - National Fuel Gas has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]