Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Buenaventura (BVN) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Buenaventura has a historical EPS growth rate of 33.9%, with projected EPS growth of 60.1% this year, surpassing the industry average of 57.2% [5] Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 1411.9%, significantly higher than the industry average of 63.6% [6] - Over the past 3-5 years, Buenaventura's annualized cash flow growth rate has been 199.3%, compared to the industry average of 14.9% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Buenaventura, with the Zacks Consensus Estimate for the current year increasing by 16.6% over the past month [8] Group 5: Investment Positioning - Buenaventura's combination of a Zacks Rank 1 and a Growth Score of B positions it well for potential outperformance, making it an attractive option for growth investors [9][10]

Core Viewpoint - The article highlights Global Payments (GPN) as a strong growth stock, supported by its favorable Growth Score and Zacks Rank, indicating solid investment potential for growth investors [2][10]. Earnings Growth - Global Payments has a historical EPS growth rate of 14.2%, with projected EPS growth of 13.3% for the current year, surpassing the industry average of 13% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 8%, which is above the industry average of 6%. Additionally, its annualized cash flow growth rate over the past 3-5 years is 17.9%, compared to the industry average of 13.4% [6][7]. Earnings Estimate Revisions - The current-year earnings estimates for Global Payments have been revised upward, with the Zacks Consensus Estimate increasing by 0.4% over the past month, indicating a positive trend in earnings estimate revisions [8]. Overall Positioning - Global Payments has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the market, making it an attractive option for growth investors [10].

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond ...

Core Viewpoint - The article reflects on the potential transformation of AT&T into a growth stock, indicating a shift in its investment profile over the past year [1]. Group 1: Company Overview - AT&T has been under scrutiny regarding its growth potential, with discussions on whether it can transition from a traditional telecom company to a growth-oriented stock [1]. - The author has a long-term investment strategy, focusing on maximizing total returns by purchasing stocks when they are undervalued relative to their intrinsic value [1]. Group 2: Investment Strategy - The investment approach emphasizes holding positions for the long term unless compelling reasons arise to sell, indicating a preference for stability and income generation [1]. - The author has successfully managed a portfolio since 1998, aiming to match the S&P 500 returns with lower volatility and higher income [1].

Core Viewpoint - Growth investors are interested in stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Flowserve (FLS) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly desirable [3] - Flowserve has a historical EPS growth rate of 19.6%, with projected EPS growth of 13.3% this year, surpassing the industry average of 10.2% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, indicates how efficiently a company generates sales from its assets [5] - Flowserve's S/TA ratio is 0.83, outperforming the industry average of 0.81, indicating better efficiency [5] Group 4: Sales Growth - Sales growth is another important metric, with Flowserve expected to achieve a 4.6% sales growth this year, compared to the industry average of 4.2% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - Flowserve has seen upward revisions in current-year earnings estimates, with a 0.2% increase in the Zacks Consensus Estimate over the past month [8] Group 6: Overall Assessment - Flowserve has a Zacks Rank of 2 and a Growth Score of A, indicating it is a potential outperformer and a solid choice for growth investors [9]

Core Insights - The article compares two leading companies, Alphabet and Netflix, highlighting that while both are growing at similar rates and valuations, Alphabet is considered the better investment choice due to its diversified business model and lower risk profile. Company Overview - Alphabet generates the majority of its revenue from advertising but also has a rapidly growing cloud computing business, which accounted for about 15% of its revenue in Q3, with a year-over-year growth of 34% [9][12] - Netflix primarily derives its revenue from subscriptions to its streaming service, which is available in over 190 countries and has over 325 million subscribers [4][5] Financial Performance - Netflix's revenue grew by 17.6% year over year in Q4, an acceleration from 17.2% in Q3, and its full-year growth rate for 2024 was 16% [5] - Alphabet's revenue increased by 16% year over year in Q3, with its Google Services revenue rising by 14% [9][11] Profit Margins - Netflix's operating margin expanded from 26.7% in 2024 to 29.5% in 2025, with expectations to reach 31.5% in 2026 [7][8] - Alphabet's cloud segment saw an impressive operating income growth of 85% year over year, reaching $3.6 billion [12] Growth Opportunities - Netflix's advertising revenue more than doubled in 2025, reaching over $1.5 billion, which is 3.3% of its total revenue, and is expected to double again [8] - Alphabet's diversified business model allows for broad-based double-digit growth across major segments, making it less vulnerable to market fluctuations [14] Acquisition Considerations - Netflix is pursuing a significant acquisition of Warner Bros. Discovery's assets valued at $82.7 billion, which poses both opportunities and risks [16] - Alphabet does not have any pending acquisitions that could introduce significant risks, making it a more stable investment option [17]

Core Viewpoint - The article highlights Karooooo Ltd. (KARO) as a promising growth stock, supported by its strong growth metrics and favorable Zacks Rank, making it an attractive option for growth investors [2][9]. Earnings Growth - Karooooo has a historical EPS growth rate of 15.1%, with projected EPS growth of 26.1% for the current year, surpassing the industry average of 24.1% [4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.02, indicating it generates $1.02 in sales for every dollar in assets, significantly higher than the industry average of 0.59 [5]. Sales Growth - Karooooo's sales are expected to grow by 32.8% this year, compared to the industry average of 13%, showcasing its strong sales growth potential [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Karooooo, with the Zacks Consensus Estimate for the current year increasing by 7% over the past month [7]. Overall Positioning - With a Growth Score of A and a Zacks Rank of 2, Karooooo is well-positioned for outperformance, making it a compelling choice for growth investors [9].

Core Viewpoint - Dexcom experienced a challenging year in 2024, with shares down 19% over the trailing-12-month period, but there are compelling reasons to consider investing in the company [1] Group 1: Challenges Faced - Dexcom faced regulatory scrutiny and customer complaints due to defects in some continuous glucose monitoring (CGM) receivers, leading to a Class 1 recall of 602,445 G7 receivers [2] - The recall was precautionary, and many patients opted to use a mobile app instead of the receiver, indicating that demand for Dexcom's products remains strong despite the issues [3] Group 2: Financial Performance - In Q3 2024, Dexcom's revenue grew by 22% year over year to $1.2 billion, with adjusted earnings per share increasing by 35.6% to $0.61 compared to the previous year [4] - The company ended 2024 with approximately 2.8 million to 2.9 million customers, a number likely to have increased in 2025, with only 112 complaints received regarding the defective receivers [4] Group 3: Growth Potential - Dexcom is a leader in the CGM market and has significant growth opportunities, particularly among patients with type 1 diabetes and those with type 2 diabetes on intensive insulin therapy, which have historically been the primary target markets [5] - There remains a large addressable market within the core U.S. market, indicating potential for further expansion [5]

Core Viewpoint - Peter Thiel has sold his stake in Nvidia and reinvested in Apple and Microsoft, indicating a strategic shift in his investment approach amidst changing market dynamics in the AI sector [3][16]. Group 1: Nvidia's Market Position - Nvidia's stock has surged approximately 1,000% since the onset of the AI revolution, making it the most valuable company globally with a market cap of $4.5 trillion [4][7]. - The stock's growth has attracted widespread ownership among retail and institutional investors, leading Thiel to adopt a contrarian stance by divesting his entire stake [5][6]. - Nvidia's current valuation suggests it is transitioning from a growth stock to a macroeconomic indicator, increasingly influenced by geopolitical factors and capital expenditure trends [5][6]. Group 2: Apple and Microsoft's Investment Appeal - Apple and Microsoft, previously viewed as laggards in technology, are now seen as strong investment opportunities due to their extensive ecosystems and strategic positioning in the AI landscape [11][15]. - Apple's ecosystem encompasses over 2 billion devices, allowing it to monetize AI developments without directly investing in AI technologies [10][11]. - Microsoft is enhancing its AI capabilities through its cloud infrastructure (Azure) and enterprise solutions, creating a robust platform for businesses developing AI applications [11][12]. Group 3: Long-term Strategic Outlook - The analogy of Nvidia as a pick and shovel supplier during a gold rush illustrates its short-term profitability, while Apple and Microsoft are likened to landowners who will benefit from long-term value creation as AI technologies mature [14][15]. - By the 2030s, both companies are expected to evolve into dominant players in the AI space, leveraging their platforms to generate ongoing revenue from AI operations [15].