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.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Z ...

Core Insights - U.S. investors are increasingly buying Japanese stocks focused on technology and artificial intelligence due to high returns compared to U.S. markets [1] - The influx of U.S. funds into Japan has reached its fastest pace since the implementation of "Abenomics" [1] - The Nikkei 225 index has risen approximately 30% in U.S. dollar terms this year, significantly outperforming the S&P 500's 14% increase [1] Group 1 - The participation of U.S. investors in the Japanese stock market is at its highest level since October 2022, indicating a potential shift in market dynamics from value stocks to growth stocks [1] - The strong performance of the Japanese stock market is supported by a 2.5% appreciation of the yen and optimistic sentiment from Prime Minister Kishida's stimulus policies [1] - Foreign investors net purchased 384 billion yen (approximately $2.5 billion) of Japanese stocks in the last two weeks of October [3] Group 2 - There is still room for further inflow of foreign funds into Japanese stocks, as global investors' net holdings remain lower than the peak during the "Abenomics" era [3] - The ongoing demand for diversified investment from global investors may sustain the trend of increasing participation in the Japanese market [3] - The Nikkei index entered an overbought territory in late October, suggesting potential market consolidation [3]

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Itron (ITRI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the energy and water meter sector, which is currently positioned for growth [3] Group 2: Earnings Growth - Itron has a historical EPS growth rate of 36.7%, with projected EPS growth of 4.8% this year, surpassing the industry average of 4.7% [4] Group 3: Cash Flow Growth - Itron's year-over-year cash flow growth stands at 50.8%, significantly higher than the industry average of 11.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 4.9%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Itron, with the Zacks Consensus Estimate for the current year increasing by 11.7% over the past month [8] Group 5: Investment Positioning - Itron has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [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 inherent risks and volatility [1] Group 1: Commvault Systems Overview - Commvault Systems (CVLT) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth prospects beyond traditional metrics [2] - The company holds a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Historical EPS growth for Commvault stands at 32.1%, with projected EPS growth of 13.4% for the current year, surpassing the industry average of 11.9% [5][4] Group 3: Cash Flow Growth - Commvault's year-over-year cash flow growth is reported at 45.4%, significantly higher than the industry average of 9.4%, indicating strong operational efficiency [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.8%, compared to the industry average of 10.5%, showcasing consistent performance [7] Group 4: Earnings Estimate Revisions - The trend in earnings estimate revisions for Commvault is positive, with the current-year earnings estimates increasing by 0.6% over the past month, suggesting favorable market sentiment [9][8] Group 5: Investment Positioning - Commvault's combination of a Zacks Rank 1 and a Growth Score of A positions it well for potential outperformance, making it an attractive option for growth investors [10][11]

Group 1 - UBS strategists predict that A-shares are likely to regain upward momentum, recommending tactical increases in growth stocks to enhance portfolio resilience [1] - The US and China have jointly announced the cancellation of 91% of cumulative tariffs, with both countries suspending 24% of reciprocal tariffs, establishing a mechanism for ongoing trade negotiations [1] - UBS estimates that the weighted average tariff rate imposed by the US on Chinese goods is approximately 43.5%, with non-financial A-share companies expected to have an overseas revenue share of 14.3% in 2024 [1] Group 2 - UBS forecasts a 6% year-on-year growth in earnings per share (EPS) for the CSI 300 index by 2025, assuming tariffs remain unchanged [3] - In the first quarter of 2025, A-share earnings are expected to grow by 3.5% year-on-year, with non-financial A-share earnings increasing by 4.2%, aligning with the positive industrial profit data released by the National Bureau of Statistics [3] Group 3 - UBS anticipates a sequential recovery in A-share earnings this year due to a low base and potential policy support, with a significant inflow of long-term capital likely to reduce equity risk premiums [6] - The valuation of A-shares remains significantly lower than that of emerging markets, suggesting continued net inflows from global capital [6] Group 4 - UBS advises tactical increases in growth stocks, small-cap stocks, and high beta sectors, particularly in technology, media, and telecommunications (TMT), which may benefit from domestic policy support [7] - The performance of small-cap stocks is expected to outperform large-cap stocks due to their higher overseas revenue share in a recovering market [7] Group 5 - The upcoming 90-day pause in trade negotiations between the US and China introduces significant uncertainty, with the potential for the state to increase stock holdings to stabilize the market [8] - The Central Huijin Investment has announced its role as a stabilizing fund in the capital market, indicating a willingness to support stock prices if necessary [8] Group 6 - Since April 7, trading volumes of various A-share exchange-traded funds (ETFs) have surged significantly, indicating increased market activity [9] - The structure of ETF holdings by the state is more balanced, which is expected to enhance liquidity for small and mid-cap stocks [10] - UBS estimates that Central Huijin's net investments in A-share ETFs for the first three quarters of 2024 will total 771.8 billion yuan, with state-owned entities holding at least 1.24 trillion yuan in stocks, accounting for 7.7% of the free float market cap [10]

Core Viewpoint - Netflix is expected to face significant competition in 2025 despite a projected revenue growth of $10.5 billion, operating income of $3 billion, and earnings per share (EPS) of $5.72, with year-over-year growth rates of 12%, 14%, and 5% respectively [1] Group 1: Financial Performance Expectations - For Q1 2025, Netflix's revenue, operating income, and EPS growth are anticipated to be lower than the actual growth rates seen in 2024 [1] - The expected revenue for Q2 2025 is $10.9 billion, with an EPS of $6.27, reflecting growth rates of 14% and 28% respectively [3] - The company has raised its full-year revenue guidance for 2025, indicating a positive outlook despite a softer Q1 performance [2] Group 2: Competitive Landscape - Netflix's competitive advantage remains strong against rivals like Disney and Amazon, with analysts noting that Netflix's content offerings are superior [8] - The company is experiencing a significant influx of new subscribers, with 55% of new registrations coming from regions adopting tiered advertising plans [2] Group 3: Capital Expenditure and Cash Flow - Netflix's capital expenditures are expected to rise significantly during key events, such as NFL games, indicating a strategic approach to spending [7] - The company's free cash flow generation has improved markedly since 2022, moving from negative to positive cash flow [6] Group 4: Valuation and Market Sentiment - Netflix is trading at a forward P/E ratio of 40, with an expected growth rate of 25%, suggesting a slightly lower price-to-earnings growth ratio than anticipated [6] - The stock has shown a return of 84% in 2024, indicating strong market performance leading up to the earnings report [7]