Workflow
Is UFP (UFPT) a Solid Growth Stock? 3 Reasons to Think "Yes"
UFP TechnologiesUFP Technologies(US:UFPT) ZACKSยท2025-05-27 17:46

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to inherent volatility and risks [1] Group 1: Company Overview - UFP Technologies (UFPT) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2][10] Group 2: Earnings Growth - UFP has a historical EPS growth rate of 48.5%, with projected EPS growth of 12.3% for the current year, significantly outperforming the industry average of 2.3% [5][4] Group 3: Cash Flow Growth - UFP's year-over-year cash flow growth stands at 39.3%, far exceeding the industry average of 1.8%, and its annualized cash flow growth rate over the past 3-5 years is 24.1% compared to the industry average of 6.5% [6][7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for UFP, with the Zacks Consensus Estimate for the current year increasing by 5.4% over the past month, indicating strong near-term stock price movements [8] Group 5: Investment Positioning - UFP's combination of a Growth Score of B and a Zacks Rank 1 positions it well for potential outperformance, making it an attractive option for growth investors [10]