Growth stocks are popular among investors due to their above-average financial growth potential, which can lead to exceptional returns. However, finding a great growth stock can be challenging as they often come with higher risk and volatility. It is crucial to avoid investing in stocks where the growth story is coming to an end, as this can result in significant losses.
One way to identify cutting-edge growth stocks is by using the Zacks Growth Style Score, which goes beyond traditional growth attributes to analyze a company’s real growth prospects. Enterprise Products Partners (EPD) is a stock that the Zacks system currently recommends, 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, especially those with a Growth Score of A or B and a Zacks Rank of #1 or #2. Enterprise Products Partners stands out as a provider of midstream energy services with promising growth potential.
Key factors that make Enterprise Products a great growth pick include earnings growth, asset utilization ratio, and promising earnings estimate revisions. The company is projected to have double-digit earnings growth and is more efficient in generating sales compared to industry averages. Additionally, its sales growth outlook is strong, further supporting its growth potential.
Furthermore, positive earnings estimate revisions for Enterprise Products indicate a favorable trend that aligns with potential stock price movements. With a Growth Score of B and a Zacks Rank of #2, Enterprise Products is positioned as a potential outperformer and a solid choice for growth investors.
For more investment recommendations from Zacks Investment Research, you can download the 7 Best Stocks for the Next 30 Days report. Enterprise Products Partners L.P. (EPD) offers free stock analysis reports.