Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - SunOpta (STKL) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth potential [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Historical EPS growth for SunOpta stands at 84%, with projected EPS growth of 63.6% for the current year, significantly surpassing the industry average of 6.7% [5] - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable [4] Group 3: Cash Flow Growth - SunOpta's year-over-year cash flow growth is 22.3%, well above the industry average of 4.3%, highlighting its strong financial health [6] - The company's annualized cash flow growth rate over the past 3-5 years is 46.1%, compared to the industry average of 4.3%, indicating robust historical performance [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for SunOpta, with the Zacks Consensus Estimate increasing by 2.9% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, reinforcing the stock's potential [8] Group 5: Investment Positioning - SunOpta has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it favorably for outperformance in the growth stock category [10][11]
Here is Why Growth Investors Should Buy SunOpta (STKL) Now