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3 Reasons Why Growth Investors Shouldn't Overlook Kontoor (KTB)
ZACKS· 2025-11-11 18:45
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 their inherent risks and volatility [1] Group 1: Company Overview - Kontoor Brands (KTB) is 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 [2] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 7.8%, but the projected EPS growth for this year is 12.5%, significantly outperforming the industry average of 1.7% [4] Group 3: Asset Utilization - Kontoor's asset utilization ratio (sales-to-total-assets ratio) is 1.27, indicating that the company generates $1.27 in sales for every dollar in assets, which is higher than the industry average of 1.16 [5] Group 4: Sales Growth - The company's sales are expected to grow by 19.3% this year, contrasting sharply with the industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Kontoor, with the Zacks Consensus Estimate for the current year increasing by 0.8% over the past month [7] Group 6: Investment Potential - Kontoor has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [9]
Kontoor (KTB) is an Incredible Growth Stock: 3 Reasons Why
ZACKS· 2025-05-13 17:45
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 [1] Group 1: Company Overview - Kontoor Brands (KTB) is currently recommended as a growth stock by the Zacks Growth Style Score system, 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 [2] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 13.6%, with projected EPS growth of 9.5% this year, significantly outperforming the industry average of 1.8% [4] Group 3: Asset Utilization - Kontoor has an asset utilization ratio (sales-to-total-assets ratio) of 1.58, indicating that the company generates $1.58 in sales for every dollar in assets, compared to the industry average of 1.19 [5] Group 4: Sales Growth - The company's sales are expected to grow by 1.1% this year, surpassing the industry average growth of 0.8% [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Kontoor have increased by 2.9% over the past month, reflecting a positive trend in earnings estimate revisions [7] Group 6: Investment Potential - Kontoor has achieved a Zacks Rank of 2 and a Growth Score of B, suggesting it is a potential outperformer and a solid choice for growth investors [9]