Investors are always on the lookout for growth stocks that have the potential to provide exceptional returns. However, finding the right growth stock can be a challenging task as they often come with above-average risk and volatility. It is crucial to invest in a company with real growth prospects to avoid potential losses.
One way to identify cutting-edge growth stocks is through the Zacks Growth Style Score. This system goes beyond traditional growth attributes to analyze a company’s true growth potential. Blue Bird (BLBD) is currently recommended by this system, as it not only has a favorable Growth Score but also a top Zacks Rank.
Research has shown that stocks with strong growth features tend to outperform the market. The combination of a Growth Score of A or B and a Zacks Rank #1 or 2 has been particularly lucrative for investors.
Three key factors make Blue Bird a standout growth pick. Firstly, the company is projected to have a significant earnings growth rate of 154.8% this year, far exceeding the industry average. Secondly, Blue Bird has an impressive asset utilization ratio of 2.97, indicating efficient use of assets to generate sales. Lastly, the company’s sales are expected to grow by 17.3% this year, outperforming the industry average.
In addition to these factors, positive trends in earnings estimate revisions are also important for growth investors. Blue Bird has seen upward revisions in its current-year earnings estimates, further solidifying its position as a growth stock.
Overall, Blue Bird’s Zacks Rank #1 status and Growth Score of A make it a promising choice for growth investors. It is a potential outperformer with strong growth prospects.