Looking for a Growth Stock? 3 Reasons Why Nasdaq (NDAQ) is a Solid Choice

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Nasdaq (NDAQ) is currently recommended as a strong growth stock, possessing 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 [4] - Nasdaq's projected EPS growth for this year is 16.4%, significantly higher than the industry average of 8.6% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Nasdaq's year-over-year cash flow growth stands at 27.8%, surpassing the industry average of 14.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 17%, compared to the industry average of 12.8% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Nasdaq's current-year earnings estimates have increased by 2.7% over the past month [8] Group 5: Overall Assessment - Nasdaq has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [10]