Is Red Violet (RDVT) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Red Violet, Inc. (RDVT) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 276.8%, with a projected EPS growth of 29.3% this year, significantly outperforming the industry average of 15.4% [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% [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% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Red Violet, with the Zacks Consensus Estimate for the current year increasing by 21.7% over the past month [7] - The combination of a Growth Score of A and a Zacks Rank 2 positions Red Violet favorably for potential outperformance in the market [9]