Investors often seek out growth stocks in hopes of capitalizing on above-average financial growth that can lead to exceptional returns. However, finding a great growth stock can be a challenging task due to the inherent volatility and risk associated with these types of securities.
One way to identify cutting-edge growth stocks is by utilizing the Zacks Growth Style Score, which goes beyond traditional growth metrics to analyze a company’s true growth potential. One such stock that stands out is Artisan Partners Asset Management (APAM), which not only boasts a favorable Growth Score but also holds a top Zacks Rank.
Research has shown that stocks with strong growth attributes tend to outperform the market. When a stock has a combination of a Growth Score of A or B and a Zacks Rank of #1 (Strong Buy) or 2 (Buy), the potential for even better returns increases significantly.
There are three key factors that make Artisan Partners a standout growth pick at the moment. Firstly, the company is projected to achieve an impressive 18% earnings growth this year, outperforming the industry average. Secondly, Artisan Partners has a high asset utilization ratio, indicating efficient use of assets to generate sales. Lastly, the company is also expected to experience strong sales growth of 11.3% this year.
In addition to these factors, the positive trend in earnings estimate revisions for Artisan Partners further reinforces its growth potential. With upward revisions in current-year earnings estimates, the company is well-positioned for future success.
In conclusion, Artisan Partners’ Zacks Rank of #2 and Growth Score of A, along with its strong growth prospects, make it a compelling choice for growth investors looking to capitalize on market opportunities.