Red Violet (RDVT) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Red Violet, Inc. (RDVT) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has achieved a historical EPS growth rate of 276.8%, with projected EPS growth of 29.3% this year, significantly surpassing the industry average of 11.1% [4] Group 2: Financial Metrics - Red Violet's year-over-year cash flow growth stands at 42%, well above the industry average of 9.9%, indicating strong cash accumulation that supports new projects [5] - The company's annualized cash flow growth rate over the past 3-5 years is 47.4%, compared to the industry average of 8.6%, showcasing its robust financial health [6] Group 3: Earnings Estimates - The Zacks Consensus Estimate for Red Violet's current-year earnings has increased by 21.7% over the past month, reflecting positive earnings estimate revisions [8] - The combination of a Growth Score of A and a Zacks Rank of 2 positions Red Violet favorably for potential outperformance in the market [9][10]