Is Northwest Natural (NWN) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Northwest Natural (NWN) currently highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Earnings growth is a critical factor for growth investors, with a preference for double-digit growth rates indicating strong future prospects [4]. - Northwest Natural's projected EPS growth for the current year is 23.4%, significantly surpassing the industry average of 9.2% [5]. Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6]. - Northwest Natural's year-over-year cash flow growth stands at 4.9%, compared to an industry average of -0.1% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.2%, slightly above the industry average of 7% [7]. Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8]. - The current-year earnings estimates for Northwest Natural have increased by 1.4% over the past month, indicating a favorable outlook [8]. Conclusion - Northwest Natural has achieved a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10].