Novartis (NVS) 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 volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - Novartis (NVS) 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 being particularly attractive [4] - Novartis has a historical EPS growth rate of 7.9%, but projected EPS growth for this year is 14.4%, surpassing the industry average of 11.7% [5] Group 3: Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) is an important metric for growth stocks, indicating efficiency in generating sales [6] - Novartis has an S/TA ratio of 0.52, outperforming the industry average of 0.47, indicating better efficiency [6] Group 4: Sales Growth - Sales growth is another key factor, with Novartis expected to achieve 8.4% sales growth this year, compared to the industry average of 6.8% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - Current-year earnings estimates for Novartis have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month [9] Group 6: Overall Assessment - Novartis has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, indicating it is a potential outperformer and a solid choice for growth investors [11]