Growth investors seek out stocks that are experiencing above-average financial growth, as these stocks tend to attract attention and offer strong returns. However, identifying a great growth stock can be challenging due to the inherent volatility and risk associated with these types of securities. It is also possible to lose money on a stock that has reached the peak of its growth potential.
One tool that can help investors find cutting-edge growth stocks is the Zacks Growth Style Score, which goes beyond traditional growth metrics to evaluate a company’s true growth prospects. Alphabet (GOOGL) is currently one of the stocks recommended by this system, boasting a favorable Growth Score and a top Zacks Rank.
Research has shown that stocks with strong growth characteristics consistently outperform the market. When a stock has a Growth Score of A or B and a Zacks Rank of #1 (Strong Buy) or 2 (Buy), the returns tend to be even better.
Alphabet, a leading internet search company, is a great growth pick for several reasons. One key factor is its impressive earnings growth, with projected earnings per share growth of 31.1% this year, outpacing the industry average of 28.1%. Additionally, the company’s cash flow growth is robust at 16.7% year-over-year, surpassing industry peers.
Furthermore, positive earnings estimate revisions for Alphabet indicate strong potential for future stock price movements. The Zacks Consensus Estimate for the current year has seen a 0.4% increase over the past month.
In conclusion, Alphabet’s Zacks Rank #1 status and Growth Score of B, along with its solid earnings and cash flow growth, make it a promising choice for growth investors. This combination suggests that Alphabet has the potential to outperform the market and deliver strong returns in the future.