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3 Reasons Growth Investors Will Love Lam Research (LRCX)
ZACKS· 2025-05-28 17:51
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Lam Research (LRCX) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Lam Research has a historical EPS growth rate of 11.2%, but projected EPS growth for this year is significantly higher at 33.2%, outperforming the industry average of 16.1% [5][4]. Asset Utilization Ratio - The company's asset utilization ratio stands at 0.88, indicating that it generates $0.88 in sales for every dollar in assets, which is notably higher than the industry average of 0.49. Additionally, Lam Research's sales are expected to grow by 22.1% this year, compared to the industry average of 4.2% [7][6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Lam Research, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month, which is correlated with potential near-term stock price movements [8][10]. Overall Positioning - With a Zacks Rank of 2 (Buy) and a Growth Score of B, Lam Research is well-positioned for outperformance in the growth stock category, making it an attractive option for growth investors [10].
3 Reasons Growth Investors Will Love McKesson (MCK)
ZACKS· 2025-05-14 17:45
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with McKesson (MCK) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - McKesson has a historical EPS growth rate of 16%, with projected EPS growth of 12% for the current year, significantly outperforming the industry average of 7.5% [5]. Group 2: Asset Utilization - The company boasts an impressive asset utilization ratio of 4.95, indicating it generates $4.95 in sales for every dollar in assets, compared to the industry average of 0.76, showcasing superior efficiency [6]. Group 3: Sales Growth - McKesson's sales are expected to grow by 12% this year, far exceeding the industry average growth rate of 2.1%, highlighting its strong sales performance [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for McKesson, with the Zacks Consensus Estimate for the current year increasing by 2% over the past month, indicating favorable market sentiment [9]. Group 5: Overall Assessment - McKesson has achieved a Growth Score of A and holds a Zacks Rank of 2, suggesting it is a solid choice for growth investors and a potential outperformer in the market [11].
3 Reasons Why Interface (TILE) Is a Great Growth Stock
ZACKS· 2025-05-07 17:45
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated 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 [2] - Interface (TILE) is highlighted as a recommended stock with 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 being particularly desirable [4] - Interface's projected EPS growth is 8.2% for the current year, significantly higher than the industry average of 4.8% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in generating sales [6] - Interface has an S/TA ratio of 1.1, outperforming the industry average of 1.02, indicating better asset efficiency [6] Group 4: Sales Growth - Sales growth is another key metric, with Interface expected to achieve a 2.8% sales growth this year, compared to the industry average of 0% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - The current-year earnings estimates for Interface have increased by 2.6% over the past month, indicating positive momentum [8] Group 6: Overall Positioning - Interface has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]
RF Industries (RFIL) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-04-09 17:45
Core Viewpoint - The article highlights RF Industries, Ltd. (RFIL) as a promising growth stock, supported by its strong earnings growth, efficient asset utilization, and positive earnings estimate revisions, making it a solid choice for growth investors [2][10]. Earnings Growth - RF Industries has a historical EPS growth rate of 79.7%, with projected EPS growth of 355.6% this year, significantly outperforming the industry average of 4.2% [5]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 0.99, indicating it generates $0.99 in sales for every dollar in assets, compared to the industry average of 0.49, showcasing superior efficiency [6]. Sales Growth - RF Industries is expected to achieve a sales growth of 13.9% this year, while the industry average is projected at -0.1%, indicating strong sales performance [7]. Earnings Estimate Revisions - The current-year earnings estimates for RF Industries have been revised upward, with the Zacks Consensus Estimate increasing by 18.2% over the past month, reflecting positive sentiment [8]. Overall Assessment - RF Industries has earned a Growth Score of B and a Zacks Rank 1 (Strong Buy), indicating its potential as an outperformer in the growth stock category [10].
Here is Why Growth Investors Should Buy Bank of Montreal (BMO) Now
ZACKS· 2025-03-06 18:45
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Bank of Montreal (BMO) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The historical EPS growth rate for Bank of Montreal is 3.5%, but projected EPS growth for this year is expected to be 22.7%, significantly higher than the industry average of 3% [4] Group 2: Key Metrics - The asset utilization ratio for Bank of Montreal is 0.06, indicating that the company generates $0.06 in sales for every dollar in assets, outperforming the industry average of 0.05 [6] - Sales growth for Bank of Montreal is projected at 4.1% this year, compared to an industry average of 0% [6] Group 3: Earnings Estimates - Current-year earnings estimates for Bank of Montreal have been revised upward, with the Zacks Consensus Estimate increasing by 12.4% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 2 positions Bank of Montreal favorably for potential outperformance, making it an attractive option for growth investors [10]