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3 Reasons Why Growth Investors Shouldn't Overlook Kontoor (KTB)
ZACKS· 2025-11-11 18:45
Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Kontoor Brands (KTB) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 7.8%, but the projected EPS growth for this year is 12.5%, significantly outperforming the industry average of 1.7% [4] Group 3: Asset Utilization - Kontoor's asset utilization ratio (sales-to-total-assets ratio) is 1.27, indicating that the company generates $1.27 in sales for every dollar in assets, which is higher than the industry average of 1.16 [5] Group 4: Sales Growth - The company's sales are expected to grow by 19.3% this year, contrasting sharply with the industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Kontoor, with the Zacks Consensus Estimate for the current year increasing by 0.8% over the past month [7] Group 6: Investment Potential - Kontoor has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [9]
3 Reasons Why Growth Investors Shouldn't Overlook American States Water (AWR)
ZACKS· 2025-11-11 18:45
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: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - American States Water (AWR) 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 being particularly desirable [3] - American States Water has a historical EPS growth rate of 7.3%, with a projected EPS growth of 4.7% this year, significantly outperforming the industry average of 1.2% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks [5] - American States Water has an S/TA ratio of 0.25, indicating it generates $0.25 in sales for every dollar in assets, compared to the industry average of 0.15 [6] Group 4: Sales Growth - The company is also well-positioned for sales growth, with expected sales growth of 5.6% this year, surpassing the industry average of 3.7% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [7] - American States Water has seen a 1.2% increase in current-year earnings estimates over the past month [7] Group 6: Overall Positioning - American States Water holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9]
3 Reasons Why Growth Investors Shouldn't Overlook Life Time Group Holdings (LTH)
ZACKS· 2025-11-11 18:45
Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Life Time Group Holdings, Inc. (LTH) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Life Time Group Holdings has a historical EPS growth rate of 165.3%, with projected EPS growth of 55.3% for the current year, significantly surpassing the industry average of 20% [4] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as a sign of strong future prospects [3] Group 3: Cash Flow Growth - The company is experiencing a year-over-year cash flow growth of 16.2%, which exceeds the industry average of 11.6%, highlighting its ability to expand without relying heavily on external funding [5] - Over the past 3-5 years, Life Time Group Holdings has maintained an annualized cash flow growth rate of 11.1%, compared to the industry average of 5.7% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Life Time Group Holdings, with the Zacks Consensus Estimate for the current year increasing by 2.9% over the past month [7] - This trend in earnings estimate revisions is correlated with near-term stock price movements, indicating potential for future growth [7] Group 5: Investment Positioning - Life Time Group Holdings holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [9] - The combination of strong earnings growth, cash flow growth, and positive earnings estimate revisions makes it an attractive option for growth investors [9]
3 Reasons Growth Investors Will Love Hecla Mining (HL)
ZACKS· 2025-11-11 18:45
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Hecla Mining identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Hecla Mining has a historical EPS growth rate of 9%, but projected EPS growth for this year is expected to be 242.4%, significantly surpassing the industry average of 66.7% [4]. Group 2: Asset Utilization Ratio - The company's asset utilization ratio (sales-to-total-assets) stands at 0.39, indicating that Hecla Mining generates $0.39 in sales for every dollar in assets, which is higher than the industry average of 0.37 [6]. Group 3: Sales Growth - Hecla Mining's sales are projected to grow by 33.3% this year, compared to the industry average of 28.8%, highlighting its strong sales growth potential [6]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Hecla Mining, with the Zacks Consensus Estimate for the current year increasing by 14.1% over the past month [8]. Group 5: Overall Positioning - Hecla Mining has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [10].
Legendary trader says Tech Bubble Worry Is Overblown
Bloomberg Television· 2025-11-11 17:28
AI & Technology - Hyperscalers resemble the operating systems of the dotcom boom and have the best chance of creating software packages that bring AI to the people [4] - The rapid depreciation of AI chips, with new chips appearing every 18 months that are ten times more powerful, poses a risk to independent companies [7] - The focus is on who will create the software package that can be monetized, with hyperscalers having the best chance [7] Market & Investment Trends - The world is different from the dotcom boom era because most companies understand that many of those companies never generated earnings or revenues [1] - Only Microsoft, Apple, and Amazon recovered from the dotcom boom and became substantially larger companies [2] - The ETF business has changed the investment landscape from mutual funds, offering tax efficiency and lower running costs [9][10] - Private debt relative to GDP is down 2% annually, indicating the private economy is saving money [16] - The dollar's stability suggests that the anticipated economic problems may not be as severe as expected [17] Value Investing - The most important engine of a value company is generating free cash flow and collapsing capitalization [13] - Value companies in mature industries should focus on generating cash flow rather than investing heavily in CapEx [13]
Why Uber Technologies (UBER) is a Top Growth Stock for the Long-Term
ZACKS· 2025-11-11 15:46
Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, aiding investors in timing their purchases [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.93% since 1988 [7][9] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock Analysis: Uber Technologies - Uber Technologies (UBER) holds a 3 (Hold) Zacks Rank and a VGM Score of B, indicating potential for growth [11] - UBER's Growth Style Score is B, with a projected year-over-year earnings growth of 11.2% for the current fiscal year [11] - Recent upward revisions by 15 analysts have increased UBER's earnings estimate by $2.17 to $5.07 per share, with an average earnings surprise of +242.6% [12]
MercadoLibre: A Solid Buying Opportunity That You Shouldn't Miss
Seeking Alpha· 2025-11-11 15:30
Core Insights - MercadoLibre, Inc. (MELI) has faced significant volatility in the growth and tech sectors over the past month [1] Group 1: Analyst Profile - JR Research is recognized as a Top Analyst by TipRanks and Seeking Alpha, focusing on technology, software, internet, and growth investing [1] - The analyst identifies attractive risk/reward opportunities that could generate alpha above the S&P 500, demonstrating outperformance with selected picks [1] - The investment strategy emphasizes growth opportunities with strong fundamentals and avoids overhyped stocks, instead targeting beaten-down stocks with recovery potential [1] Group 2: Investment Strategy - The investing group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, focusing on stocks with robust fundamentals and buying momentum [1] - The investment outlook is typically set for 18 to 24 months, allowing time for the thesis to materialize [1] - The group aims to capitalize on turnaround plays at highly attractive valuations [1]
Here is Why Growth Investors Should Buy Palantir Technologies (PLTR) Now
ZACKS· 2025-11-10 19:16
Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns [1] - Identifying promising growth stocks can be challenging due to the inherent risks and volatility associated with them [1] Company Analysis: Palantir Technologies Inc. (PLTR) - Palantir Technologies is highlighted as a strong growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company exhibits a projected EPS growth of 77.1% for the current year, significantly outperforming the industry average of 21.9% [4] - Palantir's year-over-year cash flow growth stands at 2.7%, which is notably higher than the industry average of -17.5% [5] - The historical annualized cash flow growth rate for Palantir over the past 3-5 years is 18.9%, compared to the industry average of 15% [6] - Recent earnings estimates for Palantir have been revised upward, with a 15.1% increase in the Zacks Consensus Estimate for the current year [7] - The combination of a Zacks Rank 2 and a Growth Score of A positions Palantir Technologies as a potential outperformer and a solid choice for growth investors [9]
Here is Why Growth Investors Should Buy Ameriprise (AMP) Now
ZACKS· 2025-11-10 19:16
Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Ameriprise Financial Services (AMP) 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] - Ameriprise has a historical EPS growth rate of 18.1%, with a projected EPS growth of 11.3% this year, surpassing the industry average of 8.7% [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] - Ameriprise's year-over-year cash flow growth is 7.9%, exceeding the industry average of 5% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 7.3%, compared to the industry average of 5.4% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - There have been upward revisions in Ameriprise's current-year earnings estimates, with a 0.5% increase in the Zacks Consensus Estimate over the past month [8] Group 5: Overall Assessment - Ameriprise holds a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [10]
Here is Why Growth Investors Should Buy Aura Minerals (AUGO) Now
ZACKS· 2025-11-10 19:16
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 - Aura Minerals (AUGO) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company operates in the gold and copper production sector, which is currently experiencing significant growth potential [3] Group 2: Earnings Growth - Aura Minerals has a historical EPS growth rate of 51.8%, with projected EPS growth of 120.4% this year, significantly surpassing the industry average of 38.8% [5] Group 3: Asset Utilization - The company's asset utilization ratio (sales-to-total-assets ratio) stands at 0.68, indicating that it generates $0.68 in sales for every dollar in assets, compared to the industry average of 0.26, showcasing superior efficiency [6] Group 4: Sales Growth - Aura Minerals is expected to achieve a sales growth of 43.7% this year, far exceeding the industry average of 4.8%, indicating strong market demand and operational effectiveness [7] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Aura Minerals have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month, reflecting positive market sentiment [9] Group 6: Investment Potential - Aura Minerals has earned a Growth Score of A and holds a Zacks Rank 1, suggesting it is a potential outperformer and a solid choice for growth investors [11]