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 aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - APi (APG) is currently highlighted as a recommended growth stock, possessing 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 being particularly attractive as it signals strong future prospects [4] - APi has a historical EPS growth rate of 14.4%, with projected EPS growth of 13.4% this year, surpassing the industry average of 12.5% [5] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [6] - APi's year-over-year cash flow growth stands at 120.9%, significantly higher than the industry average of 1.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 76.5%, compared to the industry average of 7.1% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, making them a valuable metric for investors [8] - The current-year earnings estimates for APi have been revised upward, with the Zacks Consensus Estimate increasing by 2% over the past month [9] Group 5: Overall Assessment - APi has achieved a Growth Score of B and a Zacks Rank of 2, indicating its potential as an outperformer and a solid choice for growth investors [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. Pro-Dex, Inc. (PDEX) is highlighted as a promising growth stock based on its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Pro-Dex has a historical EPS growth rate of 9.1%, but the projected EPS growth for this year is expected to be 368.3%, significantly surpassing the industry average of 8.2% [4]. - Double-digit earnings growth is preferred by growth investors, indicating strong prospects for stock price gains [3]. Group 2: Asset Utilization - Pro-Dex 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, compared to the industry average of 0.8, showcasing higher efficiency [5]. Group 3: Sales Growth - The company's sales are projected to grow by 24.4% this year, which is substantially higher than the industry average of 2.5% [6]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Pro-Dex, with the Zacks Consensus Estimate for the current year increasing by 22.2% over the past month, indicating favorable market sentiment [8][7]. Group 5: Overall Positioning - Pro-Dex has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth stock category [10].