Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Aramark (ARMK) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company provides food, facilities, and uniform services, making it a strong candidate for growth investment [3] Group 2: Earnings Growth - Aramark has a historical EPS growth rate of 32.8%, with projected EPS growth of 24.9% this year, significantly higher than the industry average of 10.9% [4] Group 3: Asset Utilization - The company's asset utilization ratio (sales-to-total-assets ratio) is 1.37, indicating that Aramark generates $1.37 in sales for every dollar in assets, outperforming the industry average of 0.96 [5] Group 4: Sales Growth - Aramark's sales are expected to grow by 7% this year, compared to an industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Aramark, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month [7] Group 6: Investment Positioning - Aramark holds a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the market [9]
3 Reasons Why Growth Investors Shouldn't Overlook Aramark (ARMK)