Why This 1 Growth Stock Could Be a Great Addition to Your Portfolio
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
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Knowles (KN)
Founded in 1946 and headquartered in Itasca, IL, Knowles Corporation is a premier provider of advanced micro-acoustic, audio processing and precision device solutions, serving the mobile consumer electronics, communications, medical, defense, automotive and industrial markets. Leveraging its leading position in MEMS (micro-electro-mechanical systems) microphones and strong capabilities in audio processing technologies, the company optimizes audio systems and improves user experience in mobile, ear and IoT applications. Knowles also offers acoustic components, high-end capacitors and mmWave RF solutions for diverse markets.
KN sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 9.8% and 5.4% year-over-year, respectively.
One analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $1.68 per share for 2022. KN boasts an average earnings surprise of 13.3%.
Looking at cash flow, Knowles is expected to report cash flow growth of 61.3% this year; KN has generated cash flow growth of 4.9% over the past three to five years.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, KN should be on investors' short lists.
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