Ryanair (RYAAY) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are increasingly seeking growth stocks, particularly in the financial sector, to achieve above-average returns, but identifying such stocks can be 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] - Ryanair (RYAAY) is highlighted as a recommended stock with 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 indicating strong prospects [4] - Ryanair's historical EPS growth rate is 44.3%, with projected EPS growth of 38% this year, significantly surpassing the industry average of 8.7% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, reflecting efficiency in generating sales [6] - Ryanair's S/TA ratio is 0.82, indicating it generates $0.82 in sales for every dollar in assets, compared to the industry average of 0.68 [6] Group 4: Sales Growth - Sales growth is another vital aspect, with Ryanair expected to achieve a sales growth of 18.3% this year, far exceeding the industry average of 0.1% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable indicator [8] - Ryanair has seen a 5.8% upward revision in current-year earnings estimates over the past month, enhancing its attractiveness [9] Group 6: Overall Assessment - Ryanair has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as a solid choice for growth investors [10]