While the historical EPS growth rate for Xcel is 6%, investors should actually focus on the projected growth. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While there are numerous reasons why the stock of this utility is a great growth pick right now, we have highlighted three of the most important factors below:Įarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Research shows that stocks carrying the best growth features consistently beat the market. In addition to a favorable Growth Score, it carries a top Zacks Rank. Xcel Energy (XEL) is on the list of such stocks currently recommended by our proprietary system. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. But finding a growth stock that can live up to its true potential can be a tough task.īy their very nature, these stocks carry above-average risk and volatility. Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns.
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