Looking for a Growth Stock? 3 Reasons Why M/A-Com (MTSI) is a Solid Choice

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - M/A-Com (MTSI) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth preferred by growth investors [3] - M/A-Com has a historical EPS growth rate of 12.5%, but projected EPS growth for this year is 19.9%, surpassing the industry average of 19.2% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is vital for growth-oriented companies, enabling expansion without relying on external funding [5] - M/A-Com's year-over-year cash flow growth is 18.9%, significantly higher than the industry average of -23.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 14.5%, compared to the industry average of 14% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - M/A-Com has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 4.9% over the past month [8] Group 5: Overall Positioning - M/A-Com holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the market [10]