Here's Why United Therapeutics (UTHR) is a Strong Growth Stock

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

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.

United Therapeutics (UTHR)

Silver Spring, MD-based United Therapeutics Corporation markets four medicines in the United States to treat pulmonary arterial hypertension (PAH): Remodulin, an injectable formulation of treprostinil, Orenitram, an oral version of treprostinil, Tyvaso, an inhaled version of treprostinil, and Adcirca (tadalafil; also sold by Eli Lilly as Cialis for erectile dysfunction) tablets. Remodulin is approved for both subcutaneous (SC) and intravenous (IV) use.

UTHR is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of A. Earnings are expected to grow 29.6% year-over-year for the current fiscal year, with sales growth of 16.9%.

Six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.42 to $19.44 per share for 2023. UTHR boasts an average earnings surprise of 1.3%.

United Therapeutics is also cash rich. The company has generated cash flow growth of 8.4%, and is expected to report cash flow expansion of 48.1% in 2023.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, UTHR should be on investors' short lists.

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