Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.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 Zacks Growth Style Score (part of the Zacks Style Scores system), whic ...

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 - Energy Transfer LP (ET) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [9] Group 2: Earnings Growth - Historical EPS growth for Energy Transfer LP is 1.2%, but projected EPS growth for this year is 11.9%, surpassing the industry average of 9.6% [4] - Double-digit earnings growth is preferred by growth investors, indicating strong prospects for stock price gains [3] Group 3: Asset Utilization - The asset utilization ratio (sales-to-total-assets ratio) for Energy Transfer LP is 0.66, indicating that the company generates $0.66 in sales for every dollar in assets, which is higher than the industry average of 0.56 [6] - The company is also expected to achieve sales growth of 18.1% this year, compared to the industry average of 5.8% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are crucial, and Energy Transfer LP has seen its current-year earnings estimates rise by 1.8% over the past month [7] - A strong correlation exists between earnings estimate revisions and near-term stock price movements, making this a significant factor for investors [7] Group 5: Investment Potential - Energy Transfer LP has earned a Growth Score of A and a Zacks Rank 2 due to positive earnings estimate revisions, suggesting it is a potential outperformer and a solid choice for growth investors [9]