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 Oclaro, Inc. .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 OCLR is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for OCLR
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 OCLR has put up a historical EPS growth rate of 1413.3%, investors should really focus on the projected growth. Here, OCLR is looking to grow at a rate of 372.9% thoroughly crushing the industry average which calls for EPS growth of just 48.3% in comparison.
Sales/Assets Ratio is Impressive for Oclaro Stock
The sales/asset ratio is often overlooked by investors, but it can be an important indicator in growth investing nonetheless. This metric—also known as S/TA for short—shows us how much sales are generated from the company’s assets which can indicate that a firm is using its assets effectively.
Right now Oclaro has a S/TA ratio of 1.14 which means that the company gets $1.14 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 1.00and you can say that OCLRis a bit more efficient than the industry at large.
But if you are worried that this ratio is too technical, consider how OCLRis positioned from a sales growth perspective. Oclaro is projected to see sales growth this year of 31.3%crushing the industry average of 10.2% and further underscoring the company’s title as a great growth stock.
OCLR 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 Oclaro lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 1 EPS estimate has been revised higher compared to none 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 surged from 17 cents per share to 38 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Oclaro has earned itself a growth score of ‘A’ as well as a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This means that we believe Oclaro 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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3 Reasons Why Oclaro (OCLR) Is a Great Growth Stock
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 Oclaro, Inc. .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 OCLR is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for OCLR
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 OCLR has put up a historical EPS growth rate of 1413.3%, investors should really focus on the projected growth. Here, OCLR is looking to grow at a rate of 372.9% thoroughly crushing the industry average which calls for EPS growth of just 48.3% in comparison.
Sales/Assets Ratio is Impressive for Oclaro Stock
The sales/asset ratio is often overlooked by investors, but it can be an important indicator in growth investing nonetheless. This metric—also known as S/TA for short—shows us how much sales are generated from the company’s assets which can indicate that a firm is using its assets effectively.
Right now Oclaro has a S/TA ratio of 1.14 which means that the company gets $1.14 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 1.00and you can say that OCLRis a bit more efficient than the industry at large.
But if you are worried that this ratio is too technical, consider how OCLRis positioned from a sales growth perspective. Oclaro is projected to see sales growth this year of 31.3%crushing the industry average of 10.2% and further underscoring the company’s title as a great growth stock.
OCLR 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 Oclaro lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 1 EPS estimate has been revised higher compared to none 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 surged from 17 cents per share to 38 cents per share today.
OCLARO INC Price and Consensus
OCLARO INC Price and Consensus | OCLARO INC Quote
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Oclaro has earned itself a growth score of ‘A’ as well as a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This means that we believe Oclaro 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.
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>