Flowserve (FLS) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Flowserve (FLS) 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 being particularly desirable [3] - Flowserve has a historical EPS growth rate of 19.6%, with projected EPS growth of 13.3% this year, surpassing the industry average of 10.2% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, indicates how efficiently a company generates sales from its assets [5] - Flowserve's S/TA ratio is 0.83, outperforming the industry average of 0.81, indicating better efficiency [5] Group 4: Sales Growth - Sales growth is another important metric, with Flowserve expected to achieve a 4.6% sales growth this year, compared to the industry average of 4.2% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - Flowserve has seen upward revisions in current-year earnings estimates, with a 0.2% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Overall Assessment - Flowserve has a Zacks Rank of 2 and a Growth Score of A, indicating it is a potential outperformer and a solid choice for growth investors [9]