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Here is Why Growth Investors Should Buy Gibraltar Industries (ROCK) Now
Gibraltar IndustriesGibraltar Industries(US:ROCK) ZACKSยท2025-05-05 17:45

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent 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] - Gibraltar Industries (ROCK) 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 growth investors, with double-digit growth being particularly attractive [3] - Gibraltar Industries has a historical EPS growth rate of 11%, with projected EPS growth of 15.8% this year, significantly surpassing the industry average of 6.6% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing a growth stock's efficiency [5] - Gibraltar Industries has an S/TA ratio of 0.92, indicating it generates $0.92 in sales for every dollar in assets, compared to the industry average of 0.81 [6] Group 4: Sales Growth - The company is also well-positioned for sales growth, with expected sales growth of 9.3% this year, outpacing the industry average of 4.4% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and Gibraltar Industries has seen upward revisions in current-year earnings estimates, increasing by 0.2% over the past month [7] Group 6: Overall Positioning - Gibraltar Industries holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9]