Asset Utilization Ratio

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3 Reasons Growth Investors Will Love Kamada (KMDA)
ZACKSยท 2025-08-18 17:46
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] Company Summary - Kamada (KMDA) is identified as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The historical EPS growth rate for Kamada is 0.9%, but projected EPS growth for this year is expected to be 50.7%, significantly higher than the industry average of 18.4% [4] - Kamada has an asset utilization ratio (sales-to-total-assets ratio) of 0.46, outperforming the industry average of 0.31, indicating higher efficiency in generating sales [5] - The company's sales are projected to grow by 12.4% this year, compared to an industry average of 0% [6] - There has been a positive trend in earnings estimate revisions for Kamada, with the Zacks Consensus Estimate for the current year increasing by 14.1% over the past month [8] - Kamada holds a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the market [10]
Here is Why Growth Investors Should Buy VAREX IMAGING (VREX) Now
ZACKSยท 2025-08-14 17:46
Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - VAREX IMAGING (VREX) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 13.4%, with projected EPS growth of 21.8% this year, surpassing the industry average of 12.5% [5] Group 2: Key Growth Metrics - Earnings growth is crucial for attracting investor attention, with double-digit growth preferred by growth investors [4] - VAREX IMAGING has an asset utilization ratio (sales-to-total-assets ratio) of 0.66, indicating higher efficiency compared to the industry average of 0.58 [7] - The company's sales are expected to grow by 1.5% this year, while the industry average is 0% [7] Group 3: Earnings Estimate Revisions - The current-year earnings estimates for VAREX IMAGING have increased, with the Zacks Consensus Estimate rising by 31% over the past month [9] - The upward trend in earnings estimate revisions supports the stock's potential for near-term price movements [8] Group 4: Investment Positioning - VAREX IMAGING holds a Zacks Rank 2 (Buy) and a Growth Score of B, positioning it well for outperformance in the growth investment space [11]
Global Partners (GLP) is an Incredible Growth Stock: 3 Reasons Why
ZACKSยท 2025-08-11 17:46
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 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] - Global Partners LP (GLP) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Global Partners has a historical EPS growth rate of 12%, but projected EPS growth for this year is 23.2%, significantly higher than the industry average of 10.7% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in generating sales [5] - Global Partners has an S/TA ratio of 4.74, indicating it generates $4.74 in sales for every dollar in assets, compared to the industry average of 0.97 [6] Group 4: Sales Growth - The company is expected to achieve a sales growth of 37.2% this year, while the industry average is 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for Global Partners have increased by 4.6% over the past month [8] Group 6: Overall Positioning - Global Partners holds a Zacks Rank of 2 and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]
Is Yum (YUM) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKSยท 2025-07-31 17:46
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Yum Brands identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Yum Brands has a historical EPS growth rate of 9.9%, but projected EPS growth for the current year is expected to be 10%, significantly outperforming the industry average of 6.7% [4]. Asset Utilization Ratio - The company's asset utilization ratio stands at 1.18, indicating that Yum generates $1.18 in sales for every dollar in assets, compared to the industry average of 0.97, showcasing superior efficiency [5]. Sales Growth - Yum's sales are projected to grow by 6.9% this year, which is notably higher than the industry average growth rate of 2.4% [6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Yum, with the Zacks Consensus Estimate for the current year increasing by 0.3% over the past month, indicating favorable market sentiment [8]. Overall Assessment - Yum Brands has achieved a Growth Score of A and holds a Zacks Rank of 2, reflecting its strong growth potential and positive earnings revisions, making it a solid choice for growth investors [9][10].
3 Reasons Growth Investors Will Love Yum China (YUMC)
ZACKSยท 2025-07-31 17:46
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. Yum China Holdings (YUMC) is highlighted as a promising growth stock based on its favorable growth metrics and Zacks Rank. Group 1: Earnings Growth - Yum China's historical EPS growth rate is 12.2%, with projected EPS growth of 7.3% this year, surpassing the industry average of 6.7% [5][4]. Group 2: Asset Utilization - Yum China has an asset utilization ratio (sales-to-total-assets ratio) of 1, indicating it generates $1 in sales for every dollar in assets, which is higher than the industry average of 0.97 [6]. Group 3: Sales Growth - The company's sales are expected to grow by 2.9% this year, compared to the industry average of 2.4% [7]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Yum China have been revised upward, with the Zacks Consensus Estimate increasing by 0.5% over the past month [9][8]. Group 5: Overall Assessment - Yum China 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][11].
3 Reasons Why Growth Investors Shouldn't Overlook Wartsila (WRTBY)
ZACKSยท 2025-07-29 17:46
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 - Wartsila (WRTBY) is identified 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 38.4%, with projected EPS growth of 16.7% this year, surpassing the industry average of 12.2% [5] Group 2: Key Growth Metrics - Earnings growth is crucial for attracting investor attention, with double-digit growth preferred by growth investors [4] - Wartsila's asset utilization ratio is 0.89, indicating higher efficiency compared to the industry average of 0.73 [6] - The company's sales are expected to grow by 19.2% this year, significantly higher than the industry average of 4% [7] Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are important, with Wartsila's current-year earnings estimates rising by 10.5% over the past month [8] - The company has achieved a Growth Score of A and a Zacks Rank of 2 due to these positive revisions [9]
Karooooo (KARO) is an Incredible Growth Stock: 3 Reasons Why
ZACKSยท 2025-07-28 17:46
Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Karooooo Ltd. (KARO) is identified 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 13.5%, with projected EPS growth of 18.6% this year, surpassing the industry average of 18.3% [5] Group 2: Key Growth Metrics - The asset utilization ratio for Karooooo is 0.97, indicating that the company generates $0.97 in sales for every dollar in assets, significantly higher than the industry average of 0.58 [6] - Sales for Karooooo are expected to grow by 23% this year, compared to the industry average of 5.7% [7] Group 3: 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 3.9% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 1 positions Karooooo favorably for potential outperformance in the market [11]
Looking for a Growth Stock? 3 Reasons Why Universal Health Services (UHS) is a Solid Choice
ZACKSยท 2025-07-16 17:46
Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Universal Health Services (UHS) 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] - UHS has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][11] Group 2: Earnings Growth - Historical EPS growth for UHS is 7.1%, but projected EPS growth is expected to be 17% this year, surpassing the industry average of 15% [5] Group 3: Asset Utilization - UHS has an asset utilization ratio (sales-to-total-assets ratio) of 1.11, indicating that the company generates $1.11 in sales for every dollar in assets, which is higher than the industry average of 0.9 [7] - The company's sales are projected to grow by 8% this year, compared to the industry average of 3.4% [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for UHS, with the Zacks Consensus Estimate increasing by 0.1% over the past month [9] Group 5: Investment Potential - UHS has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [11]
3 Reasons Why Growth Investors Shouldn't Overlook Andritz (ADRZY)
ZACKSยท 2025-07-15 17:46
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Andritz identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Andritz has a historical EPS growth rate of 24.4%, with projected EPS growth of 11% for the current year, surpassing the industry average of 10.2% [5][4]. Group 2: Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.01, indicating it generates $1.01 in sales for every dollar in assets, compared to the industry average of 0.89, showcasing superior efficiency [6]. Group 3: Sales Growth - Andritz's sales are expected to grow by 2.9% this year, which is higher than the industry average growth of 2.6% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Andritz, with the Zacks Consensus Estimate for the current year increasing by 2.5% over the past month [8]. Group 5: Overall Assessment - Andritz has achieved a Growth Score of B and holds a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer in the market [9][10].
3 Reasons Growth Investors Will Love Lam Research (LRCX)
ZACKSยท 2025-05-28 17:51
Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Lam Research (LRCX) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Lam Research has a historical EPS growth rate of 11.2%, but projected EPS growth for this year is significantly higher at 33.2%, outperforming the industry average of 16.1% [5][4]. Asset Utilization Ratio - The company's asset utilization ratio stands at 0.88, indicating that it generates $0.88 in sales for every dollar in assets, which is notably higher than the industry average of 0.49. Additionally, Lam Research's sales are expected to grow by 22.1% this year, compared to the industry average of 4.2% [7][6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Lam Research, with the Zacks Consensus Estimate for the current year increasing by 0.5% over the past month, which is correlated with potential near-term stock price movements [8][10]. Overall Positioning - With a Zacks Rank of 2 (Buy) and a Growth Score of B, Lam Research is well-positioned for outperformance in the growth stock category, making it an attractive option for growth investors [10].