3 Reasons Growth Investors Will Love FMC Technologies (FTI)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system simplifies the identification of promising growth stocks by analyzing a company's actual growth prospects beyond traditional metrics [2] - FMC Technologies (FTI) is highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of a company's potential for stock price appreciation [3] - FMC Technologies has a historical EPS growth rate of 80.6%, with projected EPS growth of 20.8% this year, significantly surpassing the industry average of 14.5% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - FMC Technologies currently boasts a year-over-year cash flow growth rate of 106.5%, compared to an industry average of -2.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 8.4%, exceeding the industry average of 5.9% [6] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are important, with positive revisions indicating potential stock price increases [7] - FMC Technologies has experienced upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate rising by 0.2% over the past month [7] Group 5: Overall Assessment - FMC Technologies has achieved a Growth Score of A and a Zacks Rank of 2, reflecting positive earnings estimate revisions and indicating its potential as a strong growth investment [9]