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Is AssetMark Financial (AMK) a Solid Growth Stock? 3 Reasons to Think "Yes"
AssetMarkAssetMark(US:AMK) Zacks Investment Researchยท2024-03-04 18:46

Core Viewpoint - AssetMark Financial is identified as a strong growth stock due to its impressive earnings growth, asset utilization efficiency, and positive earnings estimate revisions, making it a favorable investment opportunity for growth investors [1][6][7]. Earnings Growth - AssetMark Financial has a historical EPS growth rate of 75.6% and is projected to achieve an EPS growth of 13.3% this year, surpassing the industry average of 13% [3]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets) of 0.45, indicating it generates $0.45 in sales for every dollar in assets, which is significantly higher than the industry average of 0.25. Additionally, its sales are expected to grow by 8.4% this year, compared to the industry average of 4.1% [4]. Earnings Estimate Revisions - The current-year earnings estimates for AssetMark Financial have been revised upward by 5.3% over the past month, reflecting a positive trend that correlates with potential near-term stock price movements [5]. Overall Positioning - With a Growth Score of B and a Zacks Rank of 2, AssetMark Financial is well-positioned for outperformance in the market, making it an attractive option for growth investors [6][7].