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Looking for a Growth Stock? 3 Reasons Why M/A-Com (MTSI) is a Solid Choice
ZACKS· 2025-11-18 18:45
Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated 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] - M/A-Com (MTSI) 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 preferred by growth investors [3] - M/A-Com has a historical EPS growth rate of 12.5%, but projected EPS growth for this year is 19.9%, surpassing the industry average of 19.2% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is vital for growth-oriented companies, enabling expansion without relying on external funding [5] - M/A-Com's year-over-year cash flow growth is 18.9%, significantly higher than the industry average of -23.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 14.5%, compared to the industry average of 14% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - M/A-Com has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 4.9% over the past month [8] Group 5: Overall Positioning - M/A-Com holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the market [10]
3 Reasons Why Allstate (ALL) Is a Great Growth Stock
ZACKS· 2025-11-18 18:45
Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks is challenging due to inherent risks and volatility [1] Group 1: Company Overview - Allstate (ALL) is currently recommended as a strong growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - Allstate holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable [3] - Allstate's historical EPS growth rate is 5.2%, but projected EPS growth for this year is 51.2%, significantly surpassing the industry average of 16.1% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing [5] - Allstate's S/TA ratio is 0.58, indicating that the company generates $0.58 in sales for every dollar in assets, compared to the industry average of 0.33, showcasing higher efficiency [5] Group 4: Sales Growth - Sales growth is another critical factor, with Allstate expected to achieve a sales growth of 7.2% this year, outpacing the industry average of 4.1% [6] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, and Allstate has seen upward revisions in its current-year earnings estimates [7] - The Zacks Consensus Estimate for Allstate's current year has increased by 15.8% over the past month, indicating positive momentum [7] Group 6: Conclusion - Allstate's combination of a Zacks Rank 1 and a Growth Score of B suggests it is a potential outperformer and a solid choice for growth investors [9]
Looking for a Growth Stock? 3 Reasons Why WisdomTree, Inc. (WT) is a Solid Choice
ZACKS· 2025-11-17 18:46
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 - WisdomTree, Inc. (WT) is currently recommended as a strong growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 21.8%, with projected EPS growth of 25% this year, surpassing the industry average of 19% [4] Group 2: Key Metrics - WisdomTree's asset utilization ratio is 0.4, indicating that the company generates $0.4 in sales for every dollar in assets, which is significantly higher than the industry average of 0.21 [5] - The company's sales are expected to grow by 13.2% this year, compared to an industry average of 0% [6] Group 3: Earnings Estimates - The current-year earnings estimates for WisdomTree have been revised upward, with the Zacks Consensus Estimate increasing by 4.3% over the past month [7] - WisdomTree holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the market [9]
1 Top Growth Stock Down 55% to Buy After Its Recent Pullback
The Motley Fool· 2025-11-16 10:10
Core Viewpoint - Remitly Global is experiencing strong financial performance despite concerns over immigration changes, making it a compelling growth stock opportunity [1][2]. Financial Performance - Remitly's transfer volume grew 35% year-over-year to $19.5 billion, while revenue increased by 25% to $420 million [4]. - The company has an operating margin of 2.5% and a gross profit margin of 58%, indicating potential for margin expansion over time [6]. - The company expects to generate $1.62 billion in revenue this year, with forecasts for high-teens percentage revenue growth in 2026 [11]. Market Position - Remitly is rapidly gaining market share from traditional players like Western Union, even as the overall remittance market shows minimal growth due to U.S. immigration crackdowns [5]. - The company is expanding its offerings to small businesses, increasing its addressable market from $2 trillion to $22 trillion [7]. Product Expansion - Remitly has launched the Remitly One subscription service, which includes a wallet, debit card, and flexible payment options, enhancing customer engagement and revenue potential [8][9]. - The introduction of Remitly One allows the company to build a banking relationship with its customers, offering rewards and bonuses [8]. Investment Potential - The stock has declined significantly, down 55% from highs earlier this year and 75% since its IPO in 2021, presenting a buying opportunity [2][11]. - With potential profit margins of 20% or higher as the business matures, the forward price-to-earnings ratio could be as low as 6.5 based on projected earnings [12][13].
Steadfast Capital Management Adds $148 Million to its Wingstop Stake: Why the Growth Stock's a Buy
The Motley Fool· 2025-11-15 19:03
Core Insights - Steadfast Capital Management LP has significantly increased its stake in Wingstop, making it the fourth-largest holding in their portfolio, with a total investment value of $239.23 million as of September 30, 2025 [1][2][3] Company Overview - Wingstop operates over 1,700 restaurants across 44 states and 7 countries, utilizing a scalable, asset-light business model that focuses on franchise operations [5][7] - The company reported a market capitalization of $6.47 billion, with a trailing twelve months (TTM) revenue of $682.98 million and a net income of $174.26 million [4] Financial Performance - As of November 14, 2025, Wingstop's stock price was $232.89, reflecting a 29% decline over the past year, underperforming the S&P 500 by 44 percentage points [3][4] - The company has a forward P/E ratio of 59, which is lower than its historical average of 96, indicating potential for future growth despite current valuation concerns [12] Growth Potential - Wingstop has a strong growth trajectory, aiming to quadruple its store count from the current 2,500 locations, indicating a long runway for expansion [10] - Despite recent declines in same-store sales, the company previously achieved 96 consecutive quarters of growth, showcasing its robust operational performance [11] Investment Thesis - Steadfast's recent investment in Wingstop follows a significant price drawdown, suggesting confidence in the company's long-term prospects [9] - The company's disciplined expansion strategy and consistent profitability position it favorably within the consumer cyclical sector [8]
Is Ollie's Bargain Outlet (OLLI) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-11-14 18:46
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Ollie's Bargain Outlet (OLLI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 5.5%, but projected EPS growth for this year is expected to be 16.6%, significantly outperforming the industry average of 4.4% [5] Group 2: Financial Metrics - Year-over-year cash flow growth for Ollie's Bargain Outlet stands at 14.3%, which is notably higher than the industry average of -3.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.9%, compared to the industry average of 4.5% [7] Group 3: Earnings Estimates - Current-year earnings estimates for Ollie's Bargain Outlet have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month [9] - The company has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions [10]
Is MTU Aero Engines (MTUAY) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-11-14 18:46
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.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...
Globus Medical (GMED) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-11-14 18:46
Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Globus Medical (GMED) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 15.9%, with projected EPS growth of 18.2% this year, surpassing the industry average of 18.1% [5] Group 2: Financial Metrics - Cash flow growth for Globus Medical is currently at 86.1%, significantly higher than the industry average of -2.4% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 32.6%, compared to the industry average of 6.3% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Globus Medical, with the Zacks Consensus Estimate for the current year increasing by 18% over the past month [8] - The combination of a Zacks Rank 1 and a Growth Score of A positions Globus Medical as a potential outperformer for growth investors [10]
Is Tapestry (TPR) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-11-13 18:46
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: Tapestry's Growth Potential - Tapestry (TPR) is currently recommended as a cutting-edge growth stock due to its favorable Growth Score and top Zacks Rank [2] - The historical EPS growth rate for Tapestry is 21.7%, with projected EPS growth of 10% this year, surpassing the industry average of 8.8% [4] - Tapestry's year-over-year cash flow growth stands at 10.6%, significantly higher than the industry average of -3.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 21.2%, compared to the industry average of 7.6% [6] Group 2: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are crucial, with Tapestry's current-year earnings estimates rising by 2.9% over the past month [7] - Tapestry has achieved a Growth Score of A and a Zacks Rank 2, indicating strong potential for outperformance [9]
Is Adtalem (ATGE) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-11-12 18:45
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those with genuine growth prospects can be challenging [1] Group 1: Company Overview - Adtalem Global Education (ATGE) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2][10] Group 2: Earnings Growth - Historical EPS growth rate for Adtalem is 22.4%, with projected EPS growth of 16.6% this year, surpassing the industry average of 12.9% [5] Group 3: Asset Utilization - Adtalem has an asset utilization ratio (sales-to-total-assets) of 0.66, indicating greater efficiency compared to the industry average of 0.65 [6] Group 4: Sales Growth - The company's sales are expected to grow by 7.6% this year, significantly higher than the industry average of 3.7% [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Adtalem, with a 0.6% increase in the Zacks Consensus Estimate for the current year over the past month [8]