ExlService Holdings (EXLS) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, 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 aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - ExlService Holdings (EXLS) is currently highlighted as a recommended 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 indicating strong prospects [3] - ExlService Holdings has a historical EPS growth rate of 20%, with projected EPS growth of 15.4% this year, significantly surpassing the industry average of 8.9% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [5] - ExlService Holdings has a year-over-year cash flow growth of 2.1%, exceeding the industry average of 1.7% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 8.6% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Current-year earnings estimates for ExlService Holdings have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Overall Positioning - ExlService Holdings has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [10]