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3 Reasons Why Growth Investors Shouldn't Overlook Genpact (G)
ZACKS· 2025-11-25 18:46
Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Genpact (G) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for growth investors, with double-digit growth being highly desirable [4] - Genpact has a historical EPS growth rate of 11.7%, with projected EPS growth of 9.8% this year, surpassing the industry average of 9.2% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks [6] - Genpact's S/TA ratio is 0.97, indicating it generates $0.97 in sales for every dollar in assets, which is higher than the industry average of 0.93 [6] Group 4: Sales Growth - Sales growth is another critical factor, with Genpact expected to achieve a sales growth of 6% this year, compared to the industry average of 5.3% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are significant, with positive revisions correlating with stock price movements [8] - Genpact's current-year earnings estimates have increased by 2.7% over the past month, indicating a positive trend [8] Group 6: Overall Assessment - Genpact has earned a Growth Score of B and a Zacks Rank 2 due to its favorable metrics and positive earnings estimate revisions, making it a solid choice for growth investors [9][10]
DXC Technology Company. (DXC) Q1 Earnings and Revenues Surpass Estimates
ZACKS· 2025-07-31 23:01
分组1 - DXC Technology reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, but down from $0.74 per share a year ago, representing an earnings surprise of +6.25% [1] - The company achieved revenues of $3.16 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.92%, although this is a decrease from year-ago revenues of $3.24 billion [2] - DXC Technology has outperformed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed the market, losing about 31.3% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $3.07 billion, and for the current fiscal year, it is $3.05 on revenues of $12.29 billion [7] 分组3 - The Computers - IT Services industry, to which DXC Technology belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The estimate revisions trend for DXC Technology was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]