Ollie's Bargain Outlet (OLLI) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Ollie's Bargain Outlet Overview - Ollie's Bargain Outlet (OLLI) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Ollie's Bargain Outlet has a historical EPS growth rate of 5.5%, but projected EPS growth for this year is 16.6%, significantly outperforming the industry average of 3.5% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Ollie's Bargain Outlet's year-over-year cash flow growth is 14.3%, well above the industry average of 2.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.9%, compared to the industry average of 4.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [8] - Ollie's Bargain Outlet has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 0.2% over the past month [8] Group 5: Conclusion - Ollie's Bargain Outlet has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]