Is Transcat, Inc. (TRNS) a Solid Growth Stock? 3 Reasons to Think " Yes " – Yahoo Finance

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. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, 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, makes it pretty easy to find cutting-edge growth stocks.
Transcat, Inc. (TRNS) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. 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).
Here are three of the most important factors that make the stock of this company a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. 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 the historical EPS growth rate for Transcat, Inc. is 17.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 71.5% this year, crushing the industry average, which calls for EPS growth of 39.8%.
Cash Flow Growth
Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Transcat, Inc. is 4.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -11.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 13.8% over the past 3-5 years versus the industry average of 5.5%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Transcat, Inc. have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.5% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Transcat, Inc. a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Transcat, Inc. is a potential outperformer and a solid choice for growth investors.

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
Transcat, Inc. (TRNS) : Free Stock Analysis Report
To read this article on click here.
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story…
Buffett prefers assets with clear, material use, and these definitely fit the bill.
U.S.-listed shares of Alibaba Group Holdings Ltd. rocketed Monday to post their best performance in more than four years as numerous Chinese internet stocks started to mount a comeback after a tough recent stretch.
Lucid (LCID) shares opened 12% lower on Monday after the high-end electric vehicle startup revealed it received a subpoena from the Securities and Exchange Commission (SEC) over its recent tie-up with a special purpose acquisition company.
The Wall Street giant really likes these dividend stocks — for very good reasons.
High-growth but richly valued tech stocks have been getting hammered by the market as of late, and software cybersecurity disruptor Zscaler (NASDAQ: ZS) hasn't been exempt. As for the specific plunge today (Zscaler is up 36% in 2021 with just weeks to go until the new year), analyst Stephen Bersey at Daiwa Capital downgraded Zscaler to underperform and stuck a $286 price target on the stock. A slew of other Wall Street prognosticators waxed optimistic on Zscaler last week after the company said revenue grew 62% year over year in the last quarter, and deferred revenue (sales collected from customers, but for which service has not yet been provided) boomed 74% higher.
Shares of the COVID-19 vaccine makers Pfizer (NYSE: PFE), Ocugen (NASDAQ: OCGN), and Vaxart (NASDAQ: VXRT) are all moving in the wrong direction today. Specifically, Pfizer's stock is down by approximately 4%, Ocugen's equity is in the red by 5.64%, and Vaxart's shares are underwater by a hefty 8.7%, as of 12:23 p.m. ET Monday afternoon. On Sunday, the White House's chief medical advisor, Dr. Anthony Fauci, said that the preliminary data regarding the severity of the omicron variant was "encouraging."
The stock market stayed in full high-volatility mode on Friday, but investors weren't complaining given the positive tone on Wall Street. Investors seemed comfortable that the Omicron COVID-19 variant isn't likely to flare up into a new full-blown crisis, and that gave investors more confidence in the potential for the global economy to weather any resulting turbulence. Gains for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were substantial and provided a nice respite from recent declines.
The savvy investor keeps their eyes forward, toward the horizon. Right now, the sea of tech is the one to watch, and the ships coming into view are flying AI’s flag. This is not a new development, it’s been on course for several years – but as an investment sector, it’s heating up. AI is the tech that will power our digital systems for years to come, everything from our smartphones to our cars to Elon Musk’s Mars rockets. AI isn’t just one technology, rather, it’s a range of techs – and approach
The chip making giant plans to retain majority control of Mobileye after taking it public next year.
In a matter of weeks, many growth stocks have gone from hot to cold over fears of an economic slowdown, the omicron COVID-19 variant, and valuation concerns. Lucid Group (NASDAQ: LCID) and Nio (NYSE: NIO) are two very different electric vehicle (EV) companies that are looking to make names for themselves on the global stage. Let's determine if now is the right time to buy Lucid and Nio, or if investors should run for the exits.
Square (NYSE: SQ) fell 18.1% in November, according to data from S&P Global Market Intelligence, because of disappointing quarterly results and declining Bitcoin market prices. Investors weren't impressed by Square's revenue growth, and the company's increasing exposure to cryptocurrencies also weighed on the stock, as Bitcoin (CRYPTO: BTC) had a volatile month. Square's quarterly revenue growth slowed dramatically and fell short of analyst estimates.
For the past 12 years, investing in growth stocks has been a moneymaking strategy. Historically low lending rates and an accommodative Federal Reserve have allowed fast-paced companies to thrive. Back in 2013, J.P. Morgan Asset Management, a division of JPMorgan Chase, released a report that compared to performance of publicly traded companies that initiated and paid a dividend between 1972 and 2012 to stocks that didn't pay a dividend over the same period.
Many growth stocks took a hit in the recent weeks, and SoFi Technologies, Inc. (NASDAQ: SOFI) has not been spared, as it dipped over 35%. As the stock reaches toward the yearly lows, we'll look into the current state of the ownership and reflect on the recent moves made by the insiders and institutions.
Yahoo Finance Live co-hosts Julie Hyman, Brian Cheung, and Brian Sozzi look at Nvidia's shares dipping as EU antitrust regulators pause their investigatory probe into Nvidia's acquisition of chipmaker ARM.
Nvidia Corp. shares just closed into a correction Monday following a big decline last week, joining Advanced Micro Devices Inc.
(Bloomberg) — Stocks and futures rose Tuesday as concerns about the severity of the omicron virus variant receded and China pledged measures to support economic growth. Most Read from BloombergSand and Soldiers Mix as Troops Move In to Protect Cancun TouristsThe World’s Relentless Demand for Chips Turns Deadly in MalaysiaEven in the Metaverse, Not All Identities Are Created EqualAutomating the War on Noise PollutionThe Ugly, Expensive Plan to Bring Green Power to China’s MegacitiesTechnology sh
Anyone feeling dizzy from the recent market gyrations? Volatility is back on the menu in a big way. The past week saw strong moves in both directions, with the bears ultimately in control, culminating in Friday’s rout. After charging ahead for most of the year, the main indexes have been on the backfoot recently, with the market getting jittery over Omicron variant fears and the Fed’s hawkish turn. Friday’s seemingly disappointing jobs report further fanned the flames of doubt. Nevertheless, eve
Palantir Technologies is growing its customer base and accepting Bitcoin. Here is what fundamental and technical analysis says about buying PLTR stock now.
In this article, we discuss the 10 long-term stocks to buy according to Warren Buffett. If you want to skip our detailed analysis of these stocks, go directly to the 5 Long-Term Stocks to Buy According to Warren Buffett. There has been a lot written about the legendary investing prowess of Warren Buffett, the chief […]

Connect with Chris Hood, a digital strategist that can help you with AI.

Leave a Reply

Your email address will not be published.

© 2022 AI Caosuo - Proudly powered by theme Octo