Investors often seek growth stocks in order to take advantage of above-average growth potential and generate exceptional returns. However, finding a growth stock that lives up to its full potential can be a challenging task.
Growth stocks are known for carrying above-average risk and volatility, and investing in a company whose growth story is declining can lead to significant losses. The Zacks Growth Style Score is a useful tool that goes beyond traditional growth attributes to analyze a company’s true growth prospects, making it easier to identify cutting-edge growth stocks.
One such stock currently recommended by the Zacks system is Outfront Media (OUT), which not only has a favorable Growth Score but also carries a top Zacks Rank. Studies have shown that stocks with strong growth features tend to outperform the market, and those with a Growth Score of A or B and a Zacks Rank of #1 (Strong Buy) or 2 (Buy) have even better returns.
There are three key factors that make Outfront Media a great growth pick at the moment. Firstly, the company is expected to see earnings growth of 4.1% this year, surpassing the industry average. Additionally, Outfront Media has an impressive Asset Utilization Ratio, indicating efficient use of assets to generate sales. The company also boasts promising earnings estimate revisions, with current-year estimates trending upward.
Overall, Outfront Media has received a Growth Score of B and a Zacks Rank #2, making it a potential outperformer and a solid choice for growth investors.