Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks i ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - SunOpta (STKL) is currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth potential [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Historical EPS growth for SunOpta stands at 84%, with projected EPS growth of 63.6% for the current year, significantly surpassing the industry average of 6.7% [5] - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable [4] Group 3: Cash Flow Growth - SunOpta's year-over-year cash flow growth is 22.3%, well above the industry average of 4.3%, highlighting its strong financial health [6] - The company's annualized cash flow growth rate over the past 3-5 years is 46.1%, compared to the industry average of 4.3%, indicating robust historical performance [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for SunOpta, with the Zacks Consensus Estimate increasing by 2.9% over the past month [9] - Positive trends in earnings estimate revisions are correlated with near-term stock price movements, reinforcing the stock's potential [8] Group 5: Investment Positioning - SunOpta has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it favorably for outperformance in the growth stock category [10][11]

Core Viewpoint - BellRing Brands (BRBR) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and showing a slight increase from $0.54 per share a year ago, indicating a positive earnings surprise of +12.24% [1][2] Financial Performance - The company achieved revenues of $547.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.84% and reflecting a year-over-year increase from $515.4 million [2] - Over the last four quarters, BellRing Brands has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance and Outlook - BellRing Brands shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $651.66 million, and for the current fiscal year, it is $2.20 on revenues of $2.3 billion [7] Industry Context - The Zacks Industry Rank for Food - Miscellaneous, to which BellRing Brands belongs, is currently in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - Sprouts Farmers (SFM) is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 12.88% [1][5] Earnings Performance - In the last reported quarter, Sprouts Farmers achieved earnings of $1.81 per share, surpassing the Zacks Consensus Estimate of $1.54 per share, resulting in a surprise of 17.53% [2] - For the previous quarter, the company was expected to report earnings of $0.73 per share but delivered $0.79 per share, yielding a surprise of 8.22% [2] Earnings Estimates and Predictions - Estimates for Sprouts Farmers have been trending higher, supported by its history of earnings surprises [5] - The company currently has a positive Earnings ESP of +0.27%, indicating that analysts have recently become more optimistic about its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong possibility of another earnings beat in the upcoming report [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Core Viewpoint - Sprouts Farmers (SFM) 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][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors playing a role in this relationship [4][6]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Sprouts Farmers' underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for Sprouts Farmers is projected at $5.08 per share for the fiscal year ending December 2025, indicating no year-over-year change, but a 9.2% increase in estimates over the past three months [8][10]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - SunOpta (STKL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, particularly due to the actions of institutional investors who adjust their valuations based on these estimates [4][5]. Company Performance and Outlook - The upgrade for SunOpta suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - SunOpta is projected to earn $0.18 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 12.9% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions, which positions SunOpta favorably for potential market-beating returns [9][10].

Company Performance - Sprouts Farmers (SFM) ended the latest trading session at $159.90, reflecting a -1.23% adjustment from the previous day's close, which lagged behind the S&P 500's 0.27% loss on the same day [1] - Prior to this trading session, shares of Sprouts Farmers had gained 2.15%, which was below the Retail-Wholesale sector's gain of 4.25% and the S&P 500's gain of 6.9% [1] Upcoming Earnings - The company is expected to report an EPS of $1.23, indicating a 30.85% growth compared to the same quarter last year [2] - Quarterly revenue is projected to be $2.17 billion, up 14.51% from the year-ago period [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $5.08 per share and revenue at $8.77 billion, representing changes of +35.47% and +13.65% respectively from the prior year [3] - Recent changes to analyst estimates for Sprouts Farmers are significant as they indicate the evolving business landscape, with positive revisions suggesting optimism about the business outlook [3] Stock Performance and Valuation - The Zacks Rank system, which incorporates estimate changes, currently rates Sprouts Farmers as 1 (Strong Buy), reflecting a strong track record of outperforming the market [5] - The Forward P/E ratio for Sprouts Farmers is 31.88, which is a premium compared to the industry average Forward P/E of 20.13 [6] - The company has a PEG ratio of 1.88, compared to the industry average PEG ratio of 1.66 [6] Industry Context - The Food - Natural Foods Products industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 164, placing it in the bottom 34% of all industries [7] - The Zacks Industry Rank measures the strength of individual industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - SunOpta reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.02 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $201.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.12%, compared to year-ago revenues of $182.85 million [2] - Over the last four quarters, SunOpta has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - SunOpta shares have declined approximately 38.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on $182 million in revenues, and $0.15 on $775 million in revenues for the current fiscal year [7] - The estimate revisions trend for SunOpta is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Zacks Industry Rank for Food - Miscellaneous places it in the top 38% of over 250 Zacks industries, suggesting that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Flowers Foods, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year change of -2.6%, with revenues anticipated to be $1.59 billion, up 1% from the year-ago quarter [9][10]

Core Insights - Sprouts Farmers (SFM) reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $1.12 per share a year ago, resulting in an earnings surprise of 17.53% [1] - The company achieved revenues of $2.24 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.88% and up from $1.88 billion year-over-year [2] - Sprouts Farmers shares have increased approximately 35.6% since the beginning of the year, contrasting with a decline of 5.5% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $2.14 billion, and for the current fiscal year, it is $4.68 on revenues of $8.65 billion [7] - The estimate revisions trend for Sprouts Farmers is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Food - Natural Foods Products industry, to which Sprouts Farmers belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Performance Food Group (PFGC), another company in the same industry, is expected to report quarterly earnings of $0.86 per share, reflecting a year-over-year increase of 7.5% [9]