Life Time (US:LTH) ZACKSยท2025-11-11 18:45Core 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: Company Overview - Life Time Group Holdings, Inc. (LTH) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Life Time Group Holdings has a historical EPS growth rate of 165.3%, with projected EPS growth of 55.3% for the current year, significantly surpassing the industry average of 20% [4] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as a sign of strong future prospects [3] Group 3: Cash Flow Growth - The company is experiencing a year-over-year cash flow growth of 16.2%, which exceeds the industry average of 11.6%, highlighting its ability to expand without relying heavily on external funding [5] - Over the past 3-5 years, Life Time Group Holdings has maintained an annualized cash flow growth rate of 11.1%, compared to the industry average of 5.7% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Life Time Group Holdings, with the Zacks Consensus Estimate for the current year increasing by 2.9% over the past month [7] - This trend in earnings estimate revisions is correlated with near-term stock price movements, indicating potential for future growth [7] Group 5: Investment Positioning - Life Time Group Holdings holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [9] - The combination of strong earnings growth, cash flow growth, and positive earnings estimate revisions makes it an attractive option for growth investors [9]