FirstService (FSV) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [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] - FirstService (FSV) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong future prospects [3] - FirstService has a historical EPS growth rate of 22%, with projected EPS growth of 17% this year, significantly outperforming the industry average of 2.1% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - FirstService's year-over-year cash flow growth stands at 17%, compared to an industry average of -1.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 31%, while the industry average is only 0.5% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for FirstService have increased by 5.5% over the past month, indicating a favorable outlook [8] Group 5: Overall Positioning - FirstService has achieved a Growth Score of A and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]