3 Reasons Why Growth Investors Shouldn't Overlook Alarm.com (ALRM)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Alarm.com Holdings (ALRM) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][11]. Group 1: Earnings Growth - Alarm.com has a historical EPS growth rate of 7.5%, but projected EPS growth for this year is expected to be 39.4%, significantly surpassing the industry average of 26.1% [5]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Alarm.com is currently at 16.2%, which is notably higher than the industry average of -13.4% [6]. - The company's annualized cash flow growth rate over the past 3-5 years stands at 7.7%, compared to the industry average of 7.2% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Alarm.com have been revised upward, with the Zacks Consensus Estimate increasing by 9.2% over the past month [9]. Group 4: Overall Positioning - Alarm.com has achieved a Growth Score of B and holds a Zacks Rank 1, indicating strong potential for outperformance in the growth stock category [11].