Is BrightSphere Investment Group (BSIG) a Solid Growth Stock? 3 Reasons to Think “Yes” – May 6, 2024
Investors are always on the lookout for growth stocks that have the potential to provide above-average returns. However, identifying a growth stock that can truly live up to its potential can be a challenging task. These stocks come with above-average risk and volatility, and betting on a company whose growth story is ending can lead to significant losses.
One way to find promising growth stocks is by using the Zacks Growth Style Score, which looks beyond traditional growth attributes to analyze a company’s real growth prospects. BrightSphere Investment Group 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. This is especially true for stocks with a Growth Score of A or B and a Zacks Rank of #1 or #2. BrightSphere Investment Group stands out as a great growth pick right now for three key reasons:
1. Earnings Growth: Earnings growth is a crucial factor for investors, as it reflects the company’s prospects for future stock price gains. BrightSphere Investment Group is projected to have an impressive EPS growth of 22.5% this year, surpassing the industry average of 14.8%.
2. Asset Utilization Ratio: The company’s asset utilization ratio of 0.78 indicates that it is more efficient in generating sales compared to the industry average of 0.24. Additionally, BrightSphere Investment Group is expected to experience sales growth of 6.2% this year, outperforming the industry average of 4.5%.
3. Earnings Estimate Revisions: Positive trends in earnings estimate revisions are a good sign for investors. BrightSphere Investment Group has seen upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate increasing by 7.9% over the past month.
In conclusion, BrightSphere Investment Group has earned a Zacks Rank #1 and a Growth Score of A, making it a potential outperformer and a solid choice for growth investors.