Is Arcosa (ACA) a Solid Growth Stock? 3 Reasons to Think "Yes"

Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns [1] - Identifying high-quality growth stocks is challenging due to their inherent risks and volatility [1] Company Overview: Arcosa (ACA) - Arcosa is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - Arcosa's historical EPS growth rate stands at 12.9%, but projected EPS growth for the current year is significantly higher at 38.4%, compared to the industry average of 3.9% [5] Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6] - Arcosa's year-over-year cash flow growth is currently at 8%, surpassing the industry average of 3.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.3%, compared to the industry average of 10% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are indicative of a stock's potential performance [8] - Arcosa has experienced upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 7.2% over the past month [9] Conclusion - Arcosa has achieved a Zacks Rank of 2 and a Growth Score of B, reflecting its strong growth metrics and potential as a solid choice for growth investors [10]