Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging [1] Group 1: Company Overview - Xylem (XYL) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the water and wastewater treatment sector, which is currently positioned for growth [3] Group 2: Earnings Growth - Xylem has a historical EPS growth rate of 15%, with projected EPS growth of 9.2% this year, surpassing the industry average of 7.7% [4] - Double-digit earnings growth is preferred by growth investors as it indicates strong future prospects [3] Group 3: Cash Flow Growth - Xylem's year-over-year cash flow growth is 27.1%, significantly higher than the industry average of 8.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11%, compared to the industry average of 10.4% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Xylem, with a 0.2% increase in the Zacks Consensus Estimate for the current year over the past month [7] Group 5: Investment Positioning - Xylem has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]
Here is Why Growth Investors Should Buy Xylem (XYL) Now