Workflow
Technology Product Distribution
icon
Search documents
3 Reasons Why ScanSource (SCSC) Is a Great Growth Stock
ZACKSยท 2025-11-10 19:16
Core Insights - Growth investors focus on stocks with above-average financial growth, but identifying stocks that can fulfill their potential is challenging due to associated risks and volatility [1] - The Zacks Growth Style Score helps in identifying promising growth stocks, with ScanSource (SCSC) currently recommended due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of future stock price gains [4] - ScanSource's projected EPS growth is 13.3% this year, surpassing the industry average of 13.2% [5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, indicating efficiency in generating sales [6] - ScanSource has an S/TA ratio of 1.73, significantly higher than the industry average of 0.93, indicating better asset utilization [6] Sales Growth - Sales growth is another critical factor, with ScanSource expected to achieve a sales growth of 5.1% this year, compared to the industry average of 3.3% [7] Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for ScanSource have increased by 1.9% over the past month, indicating positive momentum [9] Conclusion - ScanSource has a Growth Score of B and a Zacks Rank 2, positioning it well for outperformance, making it an attractive option for growth investors [11]