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: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Jakks Pacific (JAKK) 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 attractive [4] - Jakks has a historical EPS growth rate of 18.5%, with projected EPS growth of 9.5% this year, significantly outperforming the industry average of 5.3% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in growth investing [6] - Jakks has an S/TA ratio of 1.63, indicating it generates $1.63 in sales for every dollar in assets, compared to the industry average of 0.86 [6] Group 4: Sales Growth - Sales growth is another key metric, with Jakks expected to achieve a sales growth of 2.1% this year, surpassing the industry average of 1.4% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, with positive revisions being favorable [8] - Jakks has seen its current-year earnings estimates revised upward, with the Zacks Consensus Estimate increasing by 11.5% over the past month [9] Group 6: Overall Assessment - Jakks has achieved a Zacks Rank 1 due to favorable earnings estimate revisions and has earned a Growth Score of A based on multiple positive factors [10]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Red Violet, Inc. (RDVT) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 276.8%, with a projected EPS growth of 29.3% this year, significantly outperforming the industry average of 15.4% [4] Group 2: Financial Metrics - Red Violet's year-over-year cash flow growth stands at 42%, well above the industry average of 9.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 47.4%, compared to the industry average of 8.6% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Red Violet, with the Zacks Consensus Estimate for the current year increasing by 21.7% over the past month [7] - The combination of a Growth Score of A and a Zacks Rank 2 positions Red Violet favorably for potential outperformance in the market [9]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging [1] Group 1: Company Overview - Kontoor Brands (KTB) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] - The company is known for its Wrangler and Lee apparel brands [3] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 13.6%, with projected EPS growth of 9.5% this year, significantly outperforming the industry average of 0.4% [5] Group 3: Asset Utilization - Kontoor has an asset utilization ratio (sales-to-total-assets ratio) of 1.58, indicating it generates $1.58 in sales for every dollar in assets, compared to the industry average of 1.19 [6] Group 4: Sales Growth - The company's sales are expected to grow by 1.1% this year, while the industry average is stagnant at 0% [7] 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 2.9% over the past month [9] Group 6: Investment Potential - Kontoor has achieved a Growth Score of B and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [11]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks is challenging due to inherent volatility and risks [1] Group 1: Company Overview - UFP Technologies (UFPT) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2][10] Group 2: Earnings Growth - UFP has a historical EPS growth rate of 48.5%, with projected EPS growth of 12.3% for the current year, significantly outperforming the industry average of 2.3% [5][4] Group 3: Cash Flow Growth - UFP's year-over-year cash flow growth stands at 39.3%, far exceeding the industry average of 1.8%, and its annualized cash flow growth rate over the past 3-5 years is 24.1% compared to the industry average of 6.5% [6][7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for UFP, with the Zacks Consensus Estimate for the current year increasing by 5.4% over the past month, indicating strong near-term stock price movements [8] Group 5: Investment Positioning - UFP's combination of a Growth Score of B and a Zacks Rank 1 positions it well for potential outperformance, making it an attractive option for growth investors [10]

Core Insights - The S&P 500 index has generated a total return of 13% over the past 12 months, with significant volatility due to trade policy and economic uncertainty [1] - Planet Fitness has outperformed the broader index, with a 61% increase in stock price over the past year [1] Financial Performance - Planet Fitness reported Q1 2025 revenue of $277 million, an increase of 11.5% driven by the opening of 19 new locations, totaling 2,741 [3] - Same-store sales (SSS) grew by 6.1%, indicating increased productivity from existing locations [4] - Management expects SSS to rise between 5% and 6% in 2025, with revenue projected to increase by 10% [4] Membership Growth - Planet Fitness added 900,000 new members in Q1, bringing the total membership to 20.6 million [6] - The company believes it can expand to 5,000 fitness clubs in the U.S., significantly increasing revenue and earnings [7] Business Model - The franchise model allows Planet Fitness to operate with only 10% of locations owned directly, reducing capital requirements and fueling growth [8] - The company has maintained an average operating margin of 26% over the past decade, indicating strong profitability [9] Valuation and Investment Considerations - Shares of Planet Fitness have performed well, but the forward price-to-earnings (P/E) ratio is 35.6, which may be considered expensive [10][11] - Consensus forecasts suggest earnings per share will rise at an annualized pace of about 15% from 2024 to 2027 [11] - While the stock may not be a straightforward buy due to valuation concerns, it could be a viable option for exposure to the fitness industry [12]

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 - Osisko Gold Royalties (OR) 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 26.6%, with projected EPS growth of 41% this year, surpassing the industry average of 35.8% [4] Group 2: Financial Metrics - Current year cash flow growth for Osisko Gold is 12%, significantly higher than the industry average of -2.4% [5] - The annualized cash flow growth rate over the past 3-5 years is 14%, compared to the industry average of 4.9% [6] Group 3: Earnings Estimates - There has been an 8.5% upward revision in current-year earnings estimates for Osisko Gold over the past month, indicating a positive trend [7] - The combination of a Growth Score of B and a Zacks Rank 2 positions Osisko Gold favorably for potential outperformance [9]

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 - Granite Construction (GVA) is currently highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 48.6%, with projected EPS growth of 23.2% this year, significantly surpassing the industry average of 13.3% [5] - Granite Construction's year-over-year cash flow growth stands at 47.2%, well above the industry average of 13.4% [6] Group 2: Financial Metrics - The annualized cash flow growth rate for Granite Construction over the past 3-5 years is 29.1%, compared to the industry average of 8% [7] - The Zacks Consensus Estimate for the current year's earnings has increased by 8.2% over the past month, indicating a positive trend in earnings estimate revisions [8] Group 3: Investment Positioning - Granite Construction has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it favorably for potential outperformance in the growth stock category [10]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with TJX being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4]. - TJX has a historical EPS growth rate of 49.6%, with a projected EPS growth of 4.1% for the current year, surpassing the industry average of 2.9% [5]. Group 2: Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6]. - TJX's year-over-year cash flow growth stands at 12.2%, exceeding the industry average of 10.6% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.6%, compared to the industry average of 4.6% [7]. Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8]. - The current-year earnings estimates for TJX have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8]. Group 4: Overall Positioning - TJX has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the market [9][10].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Fox (FOXA) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Fox's historical EPS growth rate stands at 9.9%, but projected EPS growth for the current year is expected to be 31.7%, significantly surpassing the industry average of 27.7% [4]. - Double-digit earnings growth is a key indicator of strong prospects and potential stock price gains for growth investors [3]. Group 2: Asset Utilization - Fox has an asset utilization ratio (sales-to-total-assets ratio) of 0.71, indicating that the company generates $0.71 in sales for every dollar of assets, outperforming the industry average of 0.52 [5]. Group 3: Sales Growth - The company's sales are projected to grow by 15.2% this year, in stark contrast to the industry average, which is expected to remain at 0% [6]. Group 4: Earnings Estimate Revisions - The Zacks Consensus Estimate for Fox's current-year earnings has increased by 2.1% over the past month, indicating a positive trend in earnings estimate revisions [8]. - A positive trend in earnings estimate revisions is strongly correlated with near-term stock price movements, suggesting potential for price appreciation [7]. Group 5: Overall Assessment - Fox has achieved a Growth Score of B and a Zacks Rank of 2 (Buy), reflecting its strong growth potential and positive earnings estimate revisions, making it a solid choice for growth investors [10].

Core Viewpoint - Philippe Laffont of Coatue Management has invested significantly in Philip Morris International, indicating the company's potential as a growth stock within the defensive tobacco industry [1][3][17] Investment Details - Laffont purchased over $220 million worth of Philip Morris stock in Q1, marking it as his fourth-largest purchase and second-largest new addition [3] - This investment is notable given Laffont's typical focus on technology stocks, which include major companies like Meta Platforms and Amazon [2] Growth Drivers - Philip Morris is experiencing growth through its smokeless products, particularly Zyn and Iqos, which are appealing alternatives to traditional tobacco [5][8] - Zyn's U.S. shipment volumes surged 53% to 202 million cans in Q1, prompting an increase in full-year shipment guidance to between 800 million and 840 million cans [7] - Iqos has also seen a nearly 12% increase in heated tobacco units (HTUs) to 37.1 billion units, with strong sales growth in Japan and Europe [9] Market Position - Philip Morris has successfully bought back Iqos' U.S. rights and is preparing for a broader rollout in the U.S. market, which could enhance growth without cannibalizing existing customers [10] - The company has managed to produce modest cigarette volume growth internationally, contrasting with the steep decline seen in the U.S. market [12][13] Financial Metrics - Zyn and Iqos have better unit economics compared to traditional cigarettes, with Zyn offering six times better product contribution levels and Iqos providing 2 to 2.5 times [11] - The stock is currently trading at a forward P/E ratio of under 23 and a PEG ratio of under 0.35, suggesting it is undervalued [15] Conclusion - Given its defensive nature, growth potential, and attractive valuation, Philip Morris is viewed as a favorable investment opportunity [14][17]