ITT (ITT) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average 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 real growth prospects beyond traditional metrics [2] - ITT is currently recommended as a strong growth stock, possessing 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 [3] - ITT has a historical EPS growth rate of 14.8%, with projected EPS growth of 11% this year, surpassing the industry average of 8.8% [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] - ITT's year-over-year cash flow growth is 14.7%, significantly higher than the industry average of -9.5% [5] - The historical annualized cash flow growth rate for ITT is 6.6%, 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] - The current-year earnings estimates for ITT have been revised upward, with a 0.1% increase in the Zacks Consensus Estimate over the past month [7] Group 5: Overall Positioning - ITT has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]