Looking for a Growth Stock? 3 Reasons Why CareTrust REIT (CTRE) is a Solid Choice

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - CareTrust REIT (CTRE) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The stock is part of a category that has historically outperformed the market, especially those with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - CareTrust REIT has a historical EPS growth rate of 1.1%, but projected EPS growth for this year is 18.7%, significantly outperforming the industry average of -0.3% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - CareTrust REIT's year-over-year cash flow growth stands at 67.6%, far exceeding the industry average of 3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.5%, compared to the industry average of 3.3% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of potential stock price movements, with positive revisions being favorable [8] - The current-year earnings estimates for CareTrust REIT have been revised upward, with the Zacks Consensus Estimate increasing by 1.7% over the past month [9] Group 5: Conclusion - CareTrust REIT has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a solid choice for growth investors due to positive earnings estimate revisions [11]