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Kamada (KMDA) is an Incredible Growth Stock: 3 Reasons Why
Kamada .Kamada .(US:KMDA) ZACKSยท2025-09-03 17:46

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 their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system simplifies the process of finding promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Kamada (KMDA) 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 growth investors, with double-digit growth being particularly attractive [4] - Kamada's projected EPS growth for this year is 50.7%, significantly higher than the industry average of 18.4% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of a company's efficiency in generating sales [6] - Kamada's S/TA ratio is 0.46, outperforming the industry average of 0.31, indicating better asset utilization [6] Group 4: Sales Growth - Sales growth is another key metric, with Kamada expected to achieve a sales growth of 12.4% this year, compared to an industry average of 0% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - Kamada has seen a 14.1% increase in current-year earnings estimates over the past month, indicating positive momentum [9] Group 6: Overall Assessment - Kamada has earned a Growth Score of B and a Zacks Rank of 2 due to its strong metrics and positive earnings estimate revisions, positioning it as a solid choice for growth investors [11]