While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. In fact, the rate compares to the industry average of 13.6%. Right now, year-over-year cash flow growth for Chart Industries is 24%, which is higher than many of its peers. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds. While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. The company's EPS is expected to grow 35.1% this year, crushing the industry average, which calls for EPS growth of 10.9%. While the historical EPS growth rate for Chart Industries is 18.7%, 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. While there are numerous reasons why the stock of this equipment maker for the energy sector is a great growth pick right now, we have highlighted three of the most important factors below:Īrguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. 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 Chart Industries ( GTLS Quick Quote GTLS - Free Report) as one such stock. However, 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, makes it pretty easy to find cutting-edge growth stocks. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. In addition to volatility, these stocks carry above-average risk by their very nature. But finding a great growth stock is not easy at all. Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns.
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