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Is Microsoft (MSFT) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-05-06 17:46
Core Viewpoint - Investors are increasingly seeking growth stocks, particularly in the financial sector, to achieve above-average returns, but identifying such stocks involves significant risk and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Microsoft (MSFT) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects for stock price gains [3] - Microsoft's historical EPS growth rate stands at 16.4%, with projected EPS growth of 12.7% this year, surpassing the industry average of 12.6% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Microsoft currently exhibits a year-over-year cash flow growth of 26.7%, significantly higher than the industry average of 9.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 17.9%, compared to the industry average of 10% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable metric for investors [7] - The current-year earnings estimates for Microsoft have been revised upward, with the Zacks Consensus Estimate increasing by 1.8% over the past month [8] Group 5: Overall Assessment - Microsoft has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]
Progressive (PGR) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-04-30 17:45
Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Progressive (PGR) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth indicating strong prospects [3] - Progressive's historical EPS growth rate is 14.2%, with a projected EPS growth of 11.8% this year, significantly higher than the industry average of 1.4% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [5] - Progressive's year-over-year cash flow growth is 115.9%, far exceeding the industry average of 15.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 14.8%, compared to the industry average of 11.6% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - Current-year earnings estimates for Progressive have been revised upward, with a 2.4% increase in the Zacks Consensus Estimate over the past month [8] Group 5: Overall Assessment - Progressive has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, indicating potential outperformance and suitability for growth investors [10]
Stantec (STN) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-04-28 17:45
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Stantec (STN) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Stantec has a historical EPS growth rate of 18.1%, with projected EPS growth of 15.7% for the current year, significantly outperforming the industry average of 3.6% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 17.2%, surpassing the industry average of 12.6%. Additionally, Stantec's annualized cash flow growth rate over the past 3-5 years stands at 28.8%, compared to the industry average of 8.3% [5][6]. Group 3: Earnings Estimate Revisions - Stantec has seen a positive trend in earnings estimate revisions, with the current-year earnings estimates increasing by 3.6% over the past month, contributing to its Zacks Rank of 1 [7][9].
Wabtec (WAB) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-04-24 17:45
Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Westinghouse Air Brake Technologies (WAB) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company specializes in manufacturing parts for locomotives, subways, and buses [3] Group 2: Earnings Growth - Wabtec's historical EPS growth rate is 16.3%, with projected EPS growth of 9.3% this year, surpassing the industry average of 8.5% [5] Group 3: Cash Flow Growth - Wabtec's year-over-year cash flow growth is 15.6%, significantly higher than the industry average of 7.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.9%, compared to the industry average of 6.5% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Wabtec have increased, with the Zacks Consensus Estimate rising by 3.3% over the past month [9] Group 5: Investment Potential - Wabtec has earned a Growth Score of B and a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [11]
Is Philip Morris (PM) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-04-24 17:45
Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Philip Morris (PM) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 4%, but projected EPS growth for this year is expected to be 10.7%, surpassing the industry average of 10.6% [5] Group 2: Financial Metrics - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly favorable [4] - Philip Morris has a year-over-year cash flow growth of 5.5%, significantly higher than the industry average of 0.3% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 5.9%, compared to the industry average of 4.6% [7] Group 3: Earnings Estimates - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for Philip Morris have increased by 4.6% over the past month [9] Group 4: Investment Potential - Philip Morris has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, indicating potential for outperformance and suitability for growth investors [11]
3 Reasons Why Universal Health Services (UHS) Is a Great Growth Stock
ZACKS· 2025-04-23 17:45
Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and Universal Health Services (UHS) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Historical EPS growth for Universal Health Services stands at 5.7%, but projected EPS growth for this year is 14%, surpassing the industry average of 13.8% [5][4]. Asset Utilization Ratio - Universal Health Services has an asset utilization ratio (sales-to-total-assets) of 1.11, indicating it generates $1.11 in sales for every dollar in assets, compared to the industry average of 0.89. Additionally, the company's sales are expected to grow by 8.1% this year, significantly higher than the industry average of 1.1% [7][6]. Earnings Estimate Revisions - The current-year earnings estimates for Universal Health Services have been revised upward, with the Zacks Consensus Estimate increasing by 2.8% over the past month, indicating a positive trend in earnings estimate revisions [8][10].
DXP Enterprises (DXPE) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-04-23 17:45
Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - DXP Enterprises (DXPE) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 51.1%, with projected EPS growth of 17.1% this year, significantly higher than the industry average of 6.8% [5] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly preferable [4] - DXP Enterprises' projected EPS growth of 17.1% this year indicates strong prospects for stock price gains [5] Group 3: Cash Flow Growth - Year-over-year cash flow growth for DXP Enterprises is 6.5%, surpassing the industry average of 1.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 12.3%, compared to the industry average of 8.5% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for DXP Enterprises have increased by 22.5% over the past month [9] Group 5: Investment Potential - DXP Enterprises has earned a Growth Score of B and carries a Zacks Rank 1 due to positive earnings estimate revisions, indicating it is a solid choice for growth investors [11]
Looking for a Growth Stock? 3 Reasons Why ASML (ASML) is a Solid Choice
ZACKS· 2025-04-22 17:45
Core Viewpoint - The article emphasizes the importance of identifying growth stocks with strong financial growth potential, highlighting ASML as a recommended stock due to its favorable growth metrics and Zacks Rank. Group 1: Earnings Growth - ASML has a historical EPS growth rate of 19.7%, with projected EPS growth of 29% this year, surpassing the industry average of 28.3% [4][3]. Group 2: Asset Utilization Ratio - ASML's asset utilization ratio (sales-to-total-assets ratio) is 0.69, indicating that the company generates $0.69 in sales for every dollar in assets, which is higher than the industry average of 0.66 [5]. Group 3: Sales Growth - The company's sales are expected to grow by 18.2% this year, compared to the industry average of 14% [6]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for ASML have increased by 5.8% over the past month, indicating a positive trend in earnings estimate revisions [7]. Group 5: Overall Recommendation - ASML has achieved a Growth Score of A and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [9].
Down 60%, Is This Growth Stock Too Cheap to Ignore?
The Motley Fool· 2025-04-22 09:15
Core Insights - Recent updates regarding Novo Nordisk were discussed, highlighting the company's performance and market position [1] Company Updates - Stock prices referenced were from April 18, 2025, indicating the timing of the analysis [1]
Is Central Garden (CENTA) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-04-16 17:45
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Central Garden (CENTA) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth potential beyond traditional metrics [2] - The company currently holds a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - Central Garden's projected EPS growth for the current year is 11.3%, significantly outperforming the industry average of 3.2% [5] 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 [6] - Central Garden's year-over-year cash flow growth stands at 8.7%, exceeding the industry average of 4.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 11.4%, compared to the industry average of 9.3% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are indicative of potential stock price movements [8] - The current-year earnings estimates for Central Garden have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Conclusion - Central Garden has achieved a Growth Score of B and a Zacks Rank of 2, reflecting positive earnings estimate revisions and strong growth metrics [9] - This combination positions Central Garden as a potential outperformer and a solid choice for growth investors [10]