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 Repligen Corporation ( RGEN ). 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 RGEN is so attractive right now, we have highlighted three of the most important-and pertinent to growth investors-below:
Earnings Growth for RGEN
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 RGEN has put up a historical EPS growth rate of 85.5%, investors should really focus on the projected growth. Here, RGEN is looking to grow at a rate of 40%, thoroughly crushing the industry average which calls for EPS growth of just 5.6% in comparison.
Sales/Assets Ratio is Impressive for Repligen
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 Repligen has a S/TA ratio of 0.57 which means that the company gets 57 cents in sales for each dollar in assets. Compare this to the industry average which is a ratio of 0.22 and you can say that RGEN is a bit more efficient than the industry at large.
But if you are worried that this ratio is too technical, consider how RGEN is positioned from a sales growth perspective. Repligen is projected to see sales growth this year of 22.35%, crushing the industry average of 9.02% and further underscoring the company’s title as a great growth stock.
RGEN 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 Repligen lately, and now the earnings picture is looking a bit more favorable for the company.
Over the past 60 days 1 EPS estimates 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 34 cents per share to 35 cents per share today.
For the reasons outlined above, investors shouldn’t be surprised to note that Repligen has earned itself a growth score of ‘B’ as well as a Zacks Rank #2 (Buy). This means that we believe Repligen 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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