Here is Why Growth Investors Should Buy Interface (TILE) Now

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, 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 aids in identifying promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Interface (TILE) 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] - Interface has a historical EPS growth rate of 8.1%, but projected EPS growth for this year is 26.7%, significantly surpassing the industry average of 16.4% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in growth investing [6] - Interface has an S/TA ratio of 1.1, indicating it generates $1.1 in sales for every dollar in assets, outperforming the industry average of 1.04 [6] Group 4: Sales Growth - Sales growth is another key metric, with Interface expected to achieve a sales growth of 5.1% this year, compared to an industry average of 0% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are crucial, with positive revisions indicating potential stock price movements [8] - Interface has seen an 8.8% increase in current-year earnings estimates over the past month, reflecting a positive trend [8] Group 6: Overall Positioning - Interface has earned a Growth Score of A and a Zacks Rank 1 due to favorable metrics and positive earnings estimate revisions, positioning it well for potential outperformance [10]