3 Reasons Growth Investors Will Love Harmony Biosciences (HRMY)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to inherent volatility and risks [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] - Harmony Biosciences Holdings, Inc. (HRMY) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [3] - Harmony Biosciences has a historical EPS growth rate of 11.7%, with projected EPS growth of 22.5% this year, surpassing the industry average of 19.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [5] - Harmony Biosciences has a year-over-year cash flow growth of 10%, significantly higher than the industry average of -4.7% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 25.7%, compared to the industry average of 4.1% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Current-year earnings estimates for Harmony Biosciences have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month [8] Group 5: Overall Assessment - Harmony Biosciences has achieved a Growth Score of B and a Zacks Rank 2, indicating positive earnings estimate revisions and potential for outperformance [9]