Core Insights - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] - The Zacks Growth Style Score helps identify promising growth stocks, with Epam (EPAM) currently recommended due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable as it indicates strong prospects [3] - Epam's historical EPS growth rate is 6.5%, but projected EPS growth for this year is 10.1%, surpassing the industry average of 8.2% [4] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing, indicating how efficiently a company generates sales from its assets [5] - Epam has an S/TA ratio of 1.11, outperforming the industry average of 0.9, indicating higher efficiency in asset utilization [5] Sales Growth - Sales growth is also a key factor, with Epam expected to achieve a sales growth of 6.9% this year, compared to the industry average of 6% [6] Earnings Estimate Revisions - Trends in earnings estimate revisions are significant, with positive revisions correlating with stock price movements [7] - Epam's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month [7] Overall Positioning - Epam holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the market [9]
Here is Why Growth Investors Should Buy Epam (EPAM) Now