Flex (FLEX) is an Incredible Growth Stock: 3 Reasons Why

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 their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics, with Flex (FLEX) currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have historically outperformed the market, making them attractive options for growth investors [3] Group 2: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects and potential stock price increases [3] - Flex has a historical EPS growth rate of 12%, but projected EPS growth for the current year is significantly higher at 21.7%, surpassing the industry average of 14.4% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Flex's year-over-year cash flow growth stands at 9.1%, which is notably higher than the industry average of -1.1% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 5.6%, indicating strong historical performance [6] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of a stock's potential performance, with positive revisions correlating strongly with near-term stock price movements [7] - The current-year earnings estimates for Flex have been revised upward, with the Zacks Consensus Estimate increasing by 2.2% over the past month [8] Group 5: Overall Positioning - Flex has achieved a Growth Score of B and a Zacks Rank of 2, reflecting its strong performance metrics and positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]