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Is Kaiser (KALU) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS· 2025-10-31 17:51
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 [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Kaiser Aluminum (KALU) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being highly desirable as it indicates strong future prospects [3] - Kaiser Aluminum has a historical EPS growth rate of 17.4%, but projected EPS growth for this year is 133.9%, significantly surpassing the industry average of 8.9% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth investing, indicating how efficiently a company generates sales from its assets [5] - Kaiser has an S/TA ratio of 1.3, outperforming the industry average of 0.85, indicating higher efficiency in asset utilization [5] Group 4: Sales Growth - Sales growth is another critical factor, with Kaiser expected to achieve a sales growth of 14.1% this year, compared to an industry average of 0% [6] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - The current-year earnings estimates for Kaiser have increased by 26.5% over the past month, indicating positive momentum [7] Group 6: Overall Assessment - Kaiser has achieved a Growth Score of A and a Zacks Rank 1 due to favorable metrics and positive earnings estimate revisions, positioning it as a strong choice for growth investors [9]
Commercial Metals (CMC) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-10-20 17:46
Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant challenges and risks [1] Group 1: Company Overview - Commercial Metals (CMC) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company is a manufacturer and recycler of steel and metal products, which is currently positioned for strong growth [3] Group 2: Earnings Growth - Historical EPS growth for Commercial Metals is 0.4%, but projected EPS growth for this year is expected to be 59.1%, significantly surpassing the industry average of 40% [4] Group 3: Asset Utilization - Commercial Metals has an asset utilization ratio (sales-to-total-assets ratio) of 1.13, indicating that the company generates $1.13 in sales for every dollar in assets, compared to the industry average of 0.9 [5] Group 4: Sales Growth - The company's sales are projected to grow by 4.8% this year, while the industry average is stagnant at 0% [6] Group 5: Earnings Estimate Revisions - There is a positive trend in earnings estimate revisions for Commercial Metals, with the current-year earnings estimates increasing by 3.8% over the past month [7] Group 6: Investment Positioning - Commercial Metals has achieved a Growth Score of B and a Zacks Rank 1 due to positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]
McKesson (MCK) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-06-03 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 - McKesson (MCK) is highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 16%, with projected EPS growth of 12.5% this year, surpassing the industry average of 8.2% [4] Group 2: Key Growth Metrics - The asset utilization ratio for McKesson is 4.95, indicating that the company generates $4.95 in sales for every dollar in assets, significantly higher than the industry average of 0.77 [5] - McKesson's sales are expected to grow by 13% this year, compared to the industry average of 3.2% [6] Group 3: Earnings Estimate Revisions - There is a positive trend in earnings estimate revisions for McKesson, with the current-year earnings estimates increasing by 1.7% over the past month [7] Group 4: Investment Positioning - McKesson has achieved a Growth Score of A and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [9]