Global Partners (GLP) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, 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 helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Global Partners LP (GLP) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Global Partners has a historical EPS growth rate of 12%, but projected EPS growth for this year is 23.2%, significantly higher than the industry average of 10.7% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in generating sales [5] - Global Partners has an S/TA ratio of 4.74, indicating it generates $4.74 in sales for every dollar in assets, compared to the industry average of 0.97 [6] Group 4: Sales Growth - The company is expected to achieve a sales growth of 37.2% this year, while the industry average is 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Global Partners have increased by 4.6% over the past month [8] Group 6: Overall Positioning - Global Partners holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]