Is Nautilus (NLS) an Incredible Growth Stock? 3 Reasons Why It Will Be Tough to Beat - Tale of the Tape
Finding a great growth stock can be a tough task. Not only are there a wide range of choices, but the space can be extremely volatile and fraught with risk as well. But thanks to our new style score system we have been able to identify a few growth stocks which have incredible potential in the near term.
One such company that stands out in this regard is undoubtedly Nautilus Inc. (NLS). Not only does this company have a favorable growth score, but it is ranked as a buy too. And while there are numerous reasons why NLS is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for NLS
Arguably nothing is more important than earnings growth as surging profit levels is what most investors are after. And for growth investors, earnings growth in the double digits is definitely necessary and it is often an indication of strong prospects (and stock price gains) ahead for the company in question.
While NLS has put up a historical EPS growth rate of over 100%, investors should really focus on the projected growth. Here, NLS is looking to grow at 22.81%, a rate higher than the industry average which stands at 12.29%.
Cash Flow Growth for NLS
Cash is the lifeblood of any business, but especially so for growth oriented companies. A positive figure here indicates that cash is flowing into the business (obviously a good thing), while a negative reading here means that net cash is exiting the company.
Right now, NLS’s current cash flow growth is an impressive 32.17%, a level that is far higher than many of its peers, and the industry average. In fact, the industry average sees cash flow growth of just 4.61% in comparison, suggesting that NLS is a better pick from a cash flow look.
NLS Earnings Estimate Revisions Moving in the Right Direction
If the metrics outlined above weren’t enough investors should also consider the positive trends that we are seeing on the analyst estimate revision front. Analysts have been raising their estimates for Nautilus lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 30 days 2 EPS estimates have been revised higher compared to 1 lower, at least for the current year time frame. And the magnitude of these revisions has also been impressive, as the consensus estimate for the full year has increased from 73 cents per share to 79 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Nautilus has earned itself a growth score of ‘A’ as well as a Zacks Rank #1 (Strong Buy). This means that we believe Nautilus stock is a potential outperformer that is an impressive choice for growth investors, making it a security that you need to keep on your radar in the near term.
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NAUTILUS INC (NLS): Free Stock Analysis Report
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