APi (US:APG) ZACKS·2025-06-26 17:45Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - APi (APG) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive as it signals strong future prospects [4] - APi has a historical EPS growth rate of 14.4%, with projected EPS growth of 13.4% this year, surpassing the industry average of 12.5% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [6] - APi's year-over-year cash flow growth stands at 120.9%, significantly higher than the industry average of 1.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 76.5%, compared to the industry average of 7.1% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable metric for investors [8] - The current-year earnings estimates for APi have been revised upward, with the Zacks Consensus Estimate increasing by 2% over the past month [9] Group 5: Overall Assessment - APi has achieved a Growth Score of B and a Zacks Rank of 2, indicating its potential as an outperformer and a solid choice for growth investors [11]