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Kontoor (KTB) is an Incredible Growth Stock: 3 Reasons Why
ZACKSยท 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]