Growth investors seek out stocks with above-average financial growth to attract market attention and deliver solid returns. However, finding great growth stocks can be challenging due to the inherent risks and volatility involved. The Zacks Growth Style Score is a helpful tool that looks beyond traditional growth attributes to analyze a company’s real growth prospects.
Euronet Worldwide (EEFT) is currently recommended by our system for its favorable Growth Score and top Zacks Rank. Research shows that stocks with strong growth features tend to outperform the market, especially those with a Growth Score of A or B and a Zacks Rank of #1 or #2.
Three key factors make Euronet Worldwide a promising growth pick:
Earnings Growth: Double-digit earnings growth is crucial for investors, and Euronet Worldwide is expected to see a 15.1% growth in EPS this year, surpassing the industry average of 13.8%.
Asset Utilization Ratio: With an S/TA ratio of 0.68, Euronet Worldwide efficiently generates sales compared to the industry average of 0.21. Sales growth is also expected to be strong at 7.5% this year.
Earnings Estimate Revisions: Positive trends in earnings estimate revisions are important, and Euronet Worldwide has seen an upward revision of 2.8% in current-year earnings estimates over the past month.
Overall, Euronet Worldwide is a Zacks Rank #2 stock with a Growth Score of A, indicating its potential to outperform and making it a solid choice for growth investors.