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 Schnitzer Steel Industries, 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 SCHN is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for SCHN
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 SCHN has put up a historical EPS growth rate of 339.1%, investors should really focus on the projected growth. Here, SCHN is looking to grow at a rate of 182.1%, crushing the industry average which calls for EPS growth of 106.7% in comparison.
Sales/Assets Ratio is Impressive for Schnitzer Steel 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 Schnitzer Steel has a S/TA ratio of 1.62, which means that the company gets $1.62 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 0.92 and you can say that SCHN is a bit more efficient than the industry at large.
SCHN 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 Schnitzer Steel lately, and now the earnings picture is looking a bit more favorable for the company.
SCHNITZER STEEL Price and Consensus
Over the past 60 days, 3 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 5 cents per share to 37 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Schnitzer Steel has earned itself a growth score of ‘A’ as well as a Zacks Rank #1 (Strong Buy). This means that we believe Schnitzer Steelstock 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Image: Bigstock
3 Reasons Growth Stock Investors Will Love Schnitzer Steel (SCHN)
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 Schnitzer Steel Industries, 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 SCHN is so attractive right now, we have highlighted three of the most important—and pertinent to growth investors—below:
Earnings Growth for SCHN
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 SCHN has put up a historical EPS growth rate of 339.1%, investors should really focus on the projected growth. Here, SCHN is looking to grow at a rate of 182.1%, crushing the industry average which calls for EPS growth of 106.7% in comparison.
Sales/Assets Ratio is Impressive for Schnitzer Steel 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 Schnitzer Steel has a S/TA ratio of 1.62, which means that the company gets $1.62 in sales for each dollar in assets. Compare this to the industry average which is a ratio of 0.92 and you can say that SCHN is a bit more efficient than the industry at large.
SCHN 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 Schnitzer Steel lately, and now the earnings picture is looking a bit more favorable for the company.
SCHNITZER STEEL Price and Consensus
SCHNITZER STEEL Price and Consensus | SCHNITZER STEEL Quote
Over the past 60 days, 3 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 5 cents per share to 37 cents per share today.
Bottom Line
For the reasons outlined above, investors shouldn’t be surprised to note that Schnitzer Steel has earned itself a growth score of ‘A’ as well as a Zacks Rank #1 (Strong Buy). This means that we believe Schnitzer Steelstock 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>