Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. The company's sales are expected to grow 18.8% this year versus the industry average of 8.1%.īeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. And Zebra is well positioned from a sales growth perspective too. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. Comparing this to the industry average of 0.84, it can be said that the company is more efficient. Shares of Zebra Technologies ( ZBRA -0.76) fell on Tuesday after management reported financial results and lowered its guidance for the rest of the year. Right now, Zebra has an S/TA ratio of 0.92, which means that the company gets $0.92 in sales for each dollar in assets. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. The company's EPS is expected to grow 33.4% this year, crushing the industry average, which calls for EPS growth of 29.8%. While the historical EPS growth rate for Zebra is 25.4%, investors should actually focus on the projected growth. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. Here are three of the most important factors that make the stock of this producer of printers for bar codes, plastic cards and, radio-frequency identification tags a great growth pick right now.Įarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. Studies have shown that stocks with the best growth features consistently outperform the market. This company not only has a favorable Growth Score, but also carries a top Zacks Rank. Our proprietary system currently recommends Zebra Technologies (ZBRA) as one such stock. Register for your free account today at, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Data Link's cloud-based technology platform allows you to search, discover and access data and analytics for seamless integration via cloud APIs. ET of the following day.ĭata provided by Nasdaq Data Link, a premier source for financial, economic and alternative datasets.
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