3 Reasons Why Growth Investors Shouldn't Overlook Itron (ITRI)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Itron (ITRI) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor interest, with double-digit growth being particularly favorable [3] - Itron's historical EPS growth rate stands at 36.7%, with a projected EPS growth of 6.5% this year, surpassing the industry average of 5.6% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - Itron's year-over-year cash flow growth is 50.8%, significantly higher than the industry average of 11.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 4.9%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Itron's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 11.3% over the past month [7] Group 5: Overall Assessment - Itron has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, indicating its potential as an outperformer and a solid choice for growth investors [9]