Here's Why Doctor Reddy's (RDY) is a Strong Growth Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
Doctor Reddy's (RDY)
India-based Dr. Reddy’s Laboratories Ltd. is an integrated global pharmaceutical company engaged in providing affordable and innovative medicines since 1984. The company markets its products in countries like the U.S., UK, Germany, India, Russia, Venezuela, Romania and South Africa. Dr. Reddy’s operates through three segments: • Global Generics – This segment consists of unbranded prescription drugs along with over-the-counter (OTC) drugs. It includes the operations of the company’s biologics business. The segment accounted for about 87% of the company’s total revenues generated in the fiscal year 2023.
RDY boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 15.2% year-over-year for 2024, while Wall Street anticipates its top line to improve by 9.6%.
One analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $3.80 per share for 2024. RDY boasts an average earnings surprise of 39.6%.
Looking at cash flow, Doctor Reddy's is expected to report cash flow growth of 28.6% this year; RDY has generated cash flow growth of 15.2% over the past three to five years.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, RDY should be on investors' short lists.
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Dr. Reddy's Laboratories Ltd (RDY) : Free Stock Analysis Report
