3 Reasons Why Growth Investors Shouldn't Overlook Kaiser (KALU)

Core Insights - The article emphasizes the importance of identifying growth stocks that exhibit above-average financial growth, highlighting the challenges and risks associated with this pursuit [1] Group 1: Company Overview - Kaiser Aluminum (KALU) is currently recommended as a growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 17.4%, with projected EPS growth of 133.9% this year, significantly outperforming the industry average of 15.2% [5] Group 2: Financial Metrics - Kaiser Aluminum has an asset utilization ratio (sales-to-total-assets ratio) of 1.3, indicating that it generates $1.3 in sales for every dollar in assets, compared to the industry average of 0.8 [6] - The company's sales are expected to grow by 14.1% this year, while the industry average is projected at 0% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Kaiser, with the Zacks Consensus Estimate for the current year increasing by 26.5% over the past month [9] - This upward revision trend contributes to Kaiser earning a Zacks Rank 1 and a Growth Score of A, positioning it well for potential outperformance [11]