Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [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] - Northern Trust Corporation (NTRS) 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 particularly desirable as it indicates strong future prospects [3] - Northern Trust's projected EPS growth for the current year is 9.9%, surpassing the industry average of 9.7% [4] 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 [5] - Northern Trust's year-over-year cash flow growth is 14.4%, significantly higher than the industry average of -3.4% [5] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Northern Trust has seen a 4.8% increase in current-year earnings estimates over the past month [8] Group 5: Overall Assessment - Northern Trust has achieved a Growth Score of B and a Zacks Rank 2, indicating it is a solid choice for growth investors [10]
3 Reasons Why Growth Investors Shouldn't Overlook Northern Trust (NTRS)