Core Viewpoint - Gorman-Rupp (GRC) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade for Gorman-Rupp suggest an improvement in the company's underlying business, which could lead to higher stock prices [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks into five groups, with a proven track record of performance [6]. Specifics on Gorman-Rupp's Earnings Estimates - Gorman-Rupp is projected to earn $2.04 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Gorman-Rupp has increased by 2.5% [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving favorable ratings [8][9]. - Gorman-Rupp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for near-term price appreciation [9].

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score simplifies the process of finding promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Gorman-Rupp (GRC) is currently highlighted as a recommended stock 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 being particularly attractive [4] - Gorman-Rupp has a historical EPS growth rate of 11%, but projected EPS growth for this year is expected to be 16.6%, significantly higher than the industry average of 6.5% [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] - Gorman-Rupp's year-over-year cash flow growth is currently at 19.3%, well above the industry average of 2.9% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 9.9% [7] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, making them an important metric [8] - Gorman-Rupp's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month [9] Group 5: Overall Assessment - Gorman-Rupp has achieved a Zacks Rank of 2 and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [11]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Gorman-Rupp (GRC) identified as a promising candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Gorman-Rupp has a historical EPS growth rate of 11%, but projected EPS growth for this year is expected to be 16.6%, significantly outperforming the industry average of 5.6% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 19.3%, which is substantially higher than the industry average of 2.1% [5]. - Over the past 3-5 years, Gorman-Rupp's annualized cash flow growth rate has been 10.6%, compared to the industry average of 9.4% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Gorman-Rupp have been revised upward, with the Zacks Consensus Estimate increasing by 2.5% over the past month, indicating a positive trend in earnings estimate revisions [7]. Group 4: Overall Positioning - Gorman-Rupp has achieved a Growth Score of B and holds a Zacks Rank 2, positioning it well for potential outperformance in the growth stock category [9].