Here is Why Growth Investors Should Buy TE Connectivity (TEL) Now

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: TE Connectivity Overview - TE Connectivity (TEL) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth prospects [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - TE Connectivity has a historical EPS growth rate of 8.4%, but projected EPS growth for this year is 24.8%, surpassing the industry average of 23.9% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, reflecting how efficiently a company generates sales from its assets [6] - TE Connectivity's S/TA ratio is 0.73, indicating it generates $0.73 in sales for every dollar in assets, which is better than the industry average of 0.72 [6] Group 4: Sales Growth - Sales growth is another critical factor, and TE Connectivity is expected to achieve a sales growth of 11.2% this year, compared to the industry average of 4.9% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions can validate a stock's performance potential, with positive revisions indicating favorable outcomes [8] - TE Connectivity's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [9] Group 6: Conclusion - TE Connectivity has achieved a Zacks Rank of 2 and a Growth Score of A, based on various favorable metrics, suggesting it is a strong candidate for growth investors [11]