Investors often seek out growth stocks in order to take advantage of above-average growth in financials, which can lead to exceptional returns. However, finding a great growth stock is no easy task. These stocks typically come with above-average risk and volatility, making it crucial to carefully analyze a company’s real growth prospects.
One tool that can help investors identify cutting-edge growth stocks is the Zacks Growth Style Score, which goes beyond traditional growth attributes to evaluate a company’s growth potential. Alphabet is one such stock currently recommended by this system, boasting a favorable Growth Score and a top Zacks Rank.
Research has shown that stocks with strong growth features tend to outperform the market, with even better returns for stocks that have a Growth Score of A or B and a Zacks Rank of #1 (Strong Buy) or 2 (Buy).
There are several reasons why Alphabet stands out as a great growth pick. Firstly, the company has demonstrated impressive earnings growth, with an expected EPS growth rate of 30.6% this year, surpassing the industry average. Additionally, Alphabet has seen strong cash flow growth, enabling the company to expand without relying on outside funding.
Furthermore, positive earnings estimate revisions for Alphabet indicate a promising trend. The Zacks Consensus Estimate for the current year has seen a significant upward revision over the past month.
Alphabet’s strong performance in terms of earnings estimate revisions and growth metrics has earned it a Zacks Rank #1 stock and a Growth Score of B. This combination suggests that Alphabet is a potential outperformer and a solid choice for growth investors.