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: Company Overview - Idexx Laboratories (IDXX) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the animal diagnostic and health care sector, which is currently experiencing promising growth opportunities [3] Group 2: Earnings Growth - Idexx has a historical EPS growth rate of 12.5%, with projected EPS growth of 16.6% this year, surpassing the industry average of 12.4% [5] - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as indicative of strong future prospects [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Idexx is currently at 6%, significantly higher than the industry average of -2.6% [6] - Over the past 3-5 years, Idexx has maintained an annualized cash flow growth rate of 14.6%, compared to the industry average of 6.3% [7] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Idexx have been revised upward, with the Zacks Consensus Estimate increasing by 3.8% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, indicating strong potential for Idexx [8] Group 5: Investment Positioning - Idexx has achieved a Growth Score of A and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category [10][11]

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: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Idexx Laboratories (IDXX) 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 seen as indicative of strong future prospects [4] - Idexx's historical EPS growth rate is 12.5%, with projected growth for the current year at 14.1%, surpassing the industry average of 13.6% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without external financing [6] - Idexx's year-over-year cash flow growth is currently 6%, significantly better than the industry average of -0.8% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 6.7% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements [8] - Idexx's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Overall Assessment - Idexx holds a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [10]