3 Reasons Why Growth Investors Shouldn't Overlook Federal Signal (FSS)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Federal Signal (FSS) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Federal Signal's historical EPS growth rate is 8.7%, but projected EPS growth for this year is significantly higher at 19.5%, outperforming the industry average of 5.7% [5]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 24%, which is substantially above the industry average of -7.7% [6]. - Over the past 3-5 years, Federal Signal's annualized cash flow growth rate has been 11.8%, compared to the industry average of 9.7% [7]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Federal Signal, with the Zacks Consensus Estimate increasing by 0.4% over the past month [9]. - The positive trend in earnings estimate revisions supports the stock's potential for near-term price movements [8]. Group 4: Overall Assessment - Federal Signal has achieved a Growth Score of B and holds a Zacks Rank 2, indicating it is a solid choice for growth investors [10][11].