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3 Reasons Why Growth Investors Shouldn’t Overlook Texas Roadhouse (TXRH) – May 7, 2024

Investors who focus on growth stocks are always on the lookout for securities that are experiencing above-average financial growth. These stocks tend to catch the market’s attention and deliver strong returns. However, finding a great growth stock is not an easy task.

Growth stocks come with higher risk and volatility due to their nature. If a company’s growth story is coming to an end, investing in it could result in significant losses. To make the search for cutting-edge growth stocks easier, investors can turn to the Zacks Growth Style Score. This tool goes beyond traditional growth attributes to analyze a company’s true growth prospects.

One such stock currently recommended by the Zacks system is Texas Roadhouse. In addition to a favorable Growth Score, it also holds a top Zacks Rank. Research has shown that stocks with strong growth features consistently outperform the market. Stocks with a Growth Score of A or B and a Zacks Rank of #1 or 2 tend to perform even better.

There are several reasons why Texas Roadhouse is considered a great growth pick. One key factor is its impressive earnings growth. The company is projected to have a 31.9% EPS growth rate this year, far exceeding the industry average of 9.7%. Additionally, its cash flow growth of 12.5% is higher than many of its peers.

Furthermore, positive earnings estimate revisions further validate the stock’s potential. The current-year earnings estimates for Texas Roadhouse have been on the rise, with the Zacks Consensus Estimate increasing by 4.9% over the past month.

In conclusion, Texas Roadhouse is a Zacks Rank #2 stock with a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors.

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