Core Viewpoint - Growth investors are increasingly interested in stocks with above-average financial growth, and identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Yum Brands (YUM) is currently highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company operates well-known brands including KFC, Taco Bell, and Pizza Hut [3] Group 2: Earnings Growth - Yum's historical EPS growth rate stands at 9.9%, with projected EPS growth of 9.7% for the current year, surpassing the industry average of 6.6% [4] Group 3: Asset Utilization - Yum has an asset utilization ratio (sales-to-total-assets ratio) of 1.18, indicating it generates $1.18 in sales for every dollar in assets, compared to the industry average of 0.97 [5] Group 4: Sales Growth - The company's sales are expected to grow by 6.8% this year, significantly higher than the industry average of 2.5% [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Yum have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 6: Investment Potential - Yum has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [10]
Yum (YUM) is an Incredible Growth Stock: 3 Reasons Why