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Is Tilly's (TLYS) an Incredible Growth Stock? 3 Reasons Why It Will Be Tough to Beat
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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 systemwe 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 Tilly's, Inc. (TLYS - Free Report) . 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 TLYS is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for TLYS
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 TLYS has put up a historical EPS growth rate of 11.11%, investors should really focus on the projected growth. Here, TLYS is looking to grow at a rate of 15.15%, thoroughly crushing the industry average which calls for EPS growth of just 0.11%in comparison.
Sales/Assets Ratio is Impressive for Tilly's 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 Tilly's has a S/TA ratio of 1.92 which means that the company gets $1.92 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 1.83 and you can say that TLYS is a bit more efficient than the industry at large.
But if you are worried that this ratio is too technical, consider how TLYS is positioned from a sales growth perspective. Tilly's is projected to see sales growth this year of 3.65%, crushing the industry average of 1.93% and further underscoring the company’s title as a great growth stock. .
TLYS 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 TLYS lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 5 EPS estimates have 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 27 cents per share to 38 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that TLYS Salon, Cosmetics & Fragrance 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 TLYS 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.
The Best Place to Start Your Stock Search
Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Is Tilly's (TLYS) an Incredible Growth Stock? 3 Reasons Why It Will Be Tough to Beat
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 systemwe 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 Tilly's, Inc. (TLYS - Free Report) . 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 TLYS is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for TLYS
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 TLYS has put up a historical EPS growth rate of 11.11%, investors should really focus on the projected growth. Here, TLYS is looking to grow at a rate of 15.15%, thoroughly crushing the industry average which calls for EPS growth of just 0.11%in comparison.
Sales/Assets Ratio is Impressive for Tilly's 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.
TILLYS INC PE Ratio (TTM)
TILLYS INC PE Ratio (TTM) | TILLYS INC Quote
Right now Tilly's has a S/TA ratio of 1.92 which means that the company gets $1.92 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 1.83 and you can say that TLYS is a bit more efficient than the industry at large.
But if you are worried that this ratio is too technical, consider how TLYS is positioned from a sales growth perspective. Tilly's is projected to see sales growth this year of 3.65%, crushing the industry average of 1.93% and further underscoring the company’s title as a great growth stock. .
TLYS 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 TLYS lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days, 5 EPS estimates have 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 27 cents per share to 38 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that TLYS Salon, Cosmetics & Fragrance 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 TLYS 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.
The Best Place to Start Your Stock Search
Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>