And JMP looks attractive from a sales growth perspective as well. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. Comparing this to the industry average of 0.17, it can be said that the company is more efficient. Right now, JMP has an S/TA ratio of 0.75, which means that the company gets $0.75 in sales for each dollar in assets. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. The company's EPS is expected to grow 31.7% this year, crushing the industry average, which calls for EPS growth of 30%.Īsset utilization ratio - also known as sales-to-total-assets (S/TA) ratio - is often overlooked by investors, but it is an important indicator in growth investing.
While the historical EPS growth rate for JMP is 22.7%, investors should actually focus on the projected growth. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. Here are three of the most important factors that make the stock of this nvestment banking and asset services company a great growth pick right now.Īrguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. 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. JMP (JMP) is on the list of such stocks currently recommended by our proprietary system. However, it's pretty easy to find cutting-edge growth stocks 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 great growth stock is not easy at all.īy their very nature, these stocks carry above-average risk and volatility. Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns.
0 kommentar(er)
