3 Reasons Why Growth Investors Shouldn't Overlook Jakks (JAKK)

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Jakks Pacific (JAKK) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 18.5%, with projected EPS growth of 12.7% this year, significantly outperforming the industry average of 4.2% [5] Group 2: Key Growth Metrics - The asset utilization ratio for Jakks is 1.63, indicating that the company generates $1.63 in sales for every dollar in assets, compared to the industry average of 0.86, showcasing superior efficiency [6] - Jakks is expected to achieve a sales growth of 1.3% this year, slightly above the industry average of 1% [7] Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Jakks, with the Zacks Consensus Estimate for the current year increasing by 3.8% over the past month [8] - The combination of a Zacks Rank 2 and a Growth Score of A positions Jakks as a potential outperformer for growth investors [9][10]