Workflow
Growth investing
icon
Search documents
Here is Why Growth Investors Should Buy Aramark (ARMK) Now
ZACKSยท 2025-07-24 17:46
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Aramark (ARMK) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the food, facilities, and uniform services sector [3] Group 2: Earnings Growth - Historical EPS growth rate for Aramark is 32.8%, with projected EPS growth of 24.9% this year, significantly higher than the industry average of 10.9% [5] Group 3: Asset Utilization - Aramark has an asset utilization ratio (sales-to-total-assets ratio) of 1.37, indicating it generates $1.37 in sales for every dollar in assets, compared to the industry average of 0.96 [6] Group 4: Sales Growth - The company's sales are expected to grow by 7% this year, while the industry average is projected at 0% [7] Group 5: Earnings Estimate Revisions - Current-year earnings estimates for Aramark have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 6: Investment Potential - Aramark has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a potential outperformer and a solid choice for growth investors [10]
Why Oneok Inc. (OKE) is a Top Momentum Stock for the Long-Term
ZACKSยท 2025-07-24 14:50
Company Overview - ONEOK Inc. is an energy company based in Tulsa, OK, engaged in natural gas and natural gas liquids (NGL) businesses [11] - The company completed its acquisition of Magellan Midstream Partners, L.P. for $18.8 billion in September 2023, expanding its fee-based refined products and crude oil transportation business [11] Investment Ratings - ONEOK is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B [12] - The company has a Momentum Style Score of A, indicating strong upward price trends, with shares up 1.9% over the past four weeks [12] Earnings Estimates - Three analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.35 to $5.58 per share [12] - ONEOK has an average earnings surprise of +0.4%, suggesting a positive outlook on earnings performance [12] Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ONEOK is recommended for investors' consideration [13]
Is Cava Group Stock Your Ticket to Becoming a Millionaire?
The Motley Foolยท 2025-07-24 08:15
Core Viewpoint - Cava Group (CAVA) is positioned as a potential investment opportunity for those who missed out on Chipotle Mexican Grill, offering a healthy Mediterranean fast-food alternative and demonstrating rapid expansion similar to Chipotle's growth trajectory [1][2]. Company Growth and Performance - As of the end of Q1 fiscal 2025, Cava has expanded to 382 restaurants across 26 states and the District of Columbia, with plans to add 64 to 68 more locations during the fiscal year, aiming for 1,000 locations by 2032 [4]. - In Q1 fiscal 2025, Cava's revenue reached $329 million, marking a 28% year-over-year increase, driven by an 18% growth in the number of restaurants [5]. - Same-restaurant sales grew nearly 11%, indicating rising popularity, while revenue growth of 33% in fiscal 2024 suggests sustained growth momentum [5]. - Cava reported a net income of nearly $26 million in Q1, almost double the previous year's figure, positioning it to exceed $130 million in earnings for fiscal 2024 [6]. Market Position and Valuation - Cava's current market capitalization stands at $10 billion, significantly smaller than Chipotle's $72 billion and McDonald's $213 billion, which may limit the potential for substantial returns for investors [8][9]. - A $10,000 investment in Cava could grow to $72,000 if it reaches Chipotle's size and $213,000 if it matches McDonald's scale, but it falls short of the $1 million target for investors [9]. - Cava's P/E ratio is 72, considerably higher than Chipotle's 48 and McDonald's 26, which could pose valuation concerns and dampen growth potential if it aligns more closely with the S&P 500 average of 30 [10]. Future Potential - Despite current challenges, Cava holds significant growth potential as a rapidly expanding restaurant chain, on track to meet its 1,000-restaurant goal by 2032 and possibly expanding beyond that in the future [12].
Here's Why Coterra Energy (CTRA) is a Strong Value Stock
ZACKSยท 2025-07-18 14:40
Company Overview - Coterra Energy Inc. is an independent upstream operator engaged in the exploration, development, and production of natural gas, crude oil, and natural gas liquids, with a focus on the Permian Basin, Marcellus Shale, and Anadarko Basin [11] - The company was formed following the merger between Cabot Oil & Gas Corporation and Cimarex Energy Co. in October 2021 [11] Investment Ratings - Coterra Energy has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid overall rating [12] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 9.37, which may appeal to value investors [12] Earnings Estimates - In the last 60 days, five analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.07 to $2.61 per share [12] - Coterra Energy has an average earnings surprise of +1.5%, suggesting a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Coterra Energy should be considered for investors' short lists [13]
Packaging Corp. (PKG) is an Incredible Growth Stock: 3 Reasons Why
ZACKSยท 2025-07-16 17:46
Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Packaging Corp. (PKG) is identified as a cutting-edge growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company is a maker of containerboard and corrugated packaging products [3] Group 2: Earnings Growth - Historical EPS growth rate for Packaging Corp. is 8%, but projected EPS growth for this year is 13.2%, significantly higher than the industry average of 2.9% [5] Group 3: Asset Utilization - Packaging Corp. has an asset utilization ratio (sales-to-total-assets ratio) of 0.96, indicating it generates $0.96 in sales for every dollar in assets, outperforming the industry average of 0.81 [7] - The company's sales are expected to grow by 5.1% this year, compared to the industry average of 3.1% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Packaging Corp., with the Zacks Consensus Estimate for the current year increasing by 0.2% over the past month [8] Group 5: Investment Potential - Packaging Corp. has earned a Growth Score of A and carries a Zacks Rank 2 due to positive earnings estimate revisions, indicating it is a potential outperformer and a solid choice for growth investors [10]
Realty Income: Still Beaten Down, But Stay Patient While Getting Paid
Seeking Alphaยท 2025-07-16 13:00
Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with strong price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors with a focus on robust fundamentals and turnaround plays [3] Investment Strategy - The strategy combines price action analysis with fundamental investing, avoiding overhyped stocks while targeting battered stocks with recovery potential [2] - The investment outlook is typically set for 18 to 24 months, allowing time for the thesis to materialize [3] - The group aims to capitalize on growth stocks with strong fundamentals and attractive valuations [3]
3 Reasons Why Growth Investors Shouldn't Overlook Aramark (ARMK)
ZACKSยท 2025-07-08 17:46
Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Aramark (ARMK) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company provides food, facilities, and uniform services, making it a strong candidate for growth investment [3] Group 2: Earnings Growth - Aramark has a historical EPS growth rate of 32.8%, with projected EPS growth of 24.9% this year, significantly higher than the industry average of 10.9% [4] Group 3: Asset Utilization - The company's asset utilization ratio (sales-to-total-assets ratio) is 1.37, indicating that Aramark generates $1.37 in sales for every dollar in assets, outperforming the industry average of 0.96 [5] Group 4: Sales Growth - Aramark's sales are expected to grow by 7% this year, compared to an industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Aramark, with the Zacks Consensus Estimate for the current year increasing by 0.1% over the past month [7] Group 6: Investment Positioning - Aramark holds a Zacks Rank of 2 and a Growth Score of A, positioning it well for potential outperformance in the market [9]
Universal Health Services (UHS) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKSยท 2025-07-08 14:56
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3] - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, emphasizing the importance of following market trends [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B, while stocks with a 3 (Hold) rank should also possess high Style Scores to ensure potential upside [9][10] Company Spotlight: Universal Health Services (UHS) - Universal Health Services Inc. operates various healthcare facilities and currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of B, indicating potential for growth [11] - Recent analyst revisions have positively impacted UHS's earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.19 to $19.43 per share, alongside an average earnings surprise of 13.8% [12]
Thermo Fisher Scientific: Recovery In Sight, Attractively Valued
Seeking Alphaยท 2025-07-07 05:50
Group 1 - The analyst has over 15 years of experience in investing and has provided research services to mid-sized hedge funds with assets under management between $100 million and $500 million [1] - The current focus is on managing personal investments, with a strategy centered on medium-term investing in ideas that have catalysts to unlock value or short selling in the presence of downside catalysts [1] - The analyst has a generalist approach but has spent most of their career analyzing the industrial, consumer, and technology sectors, indicating higher conviction in these areas for investment [1]
Here's Why Acuity (AYI) is a Strong Value Stock
ZACKSยท 2025-07-04 14:40
Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2: Value, Growth, and Momentum Scores - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score assesses a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find sustainable growth stocks [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, catering to momentum traders [5] Group 3: VGM Score and Zacks Rank - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking a balanced approach [6] - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7][8] Group 4: Stock Analysis - Acuity, Inc. - Acuity, Inc., headquartered in Atlanta, GA, manufactures and distributes lighting fixtures and related components, focusing on energy efficiency and comfort for various applications [11] - Acuity has a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B, supported by a forward P/E ratio of 17.61, making it attractive for value investors [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate increase of $0.31 to $17.34 per share indicate positive momentum for Acuity [12][13]