Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Subsea 7 SA identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being highly desirable as it indicates strong future prospects [4]. - Subsea 7 has a historical EPS growth rate of 92%, with projected EPS growth of 125.4% this year, significantly outperforming the industry average of -15.5% [5]. Group 2: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6]. - Subsea 7's year-over-year cash flow growth is currently at 50%, compared to the industry average of -0.8% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7%, exceeding the industry average of 5.9% [7]. Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8]. - Current-year earnings estimates for Subsea 7 have increased by 6.3% over the past month, indicating a favorable outlook [9]. Group 4: Overall Positioning - Subsea 7 has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the market [10][11].
Is Subsea 7 (SUBCY) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS·2025-11-26 18:45