3 Reasons Why Growth Investors Shouldn't Overlook Red Violet (RDVT)

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 their inherent risks and volatility [1] Group 1: Company Overview - Red Violet, Inc. (RDVT) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Red Violet has a historical EPS growth rate of 174.1%, with projected EPS growth of 41.5% for the current year, significantly outperforming the industry average of 11.3% [5] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 42%, surpassing the industry average of 9.9%, and has an annualized cash flow growth rate of 47.4% over the past 3-5 years compared to the industry average of 8.6% [6][7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Red Violet have increased by 11.8% over the past month, indicating a positive trend in earnings estimate revisions [9] Group 5: Investment Positioning - With a Zacks Rank of 2 and a Growth Score of A, Red Violet is well-positioned for outperformance, making it an attractive option for growth investors [10][11]