3 Reasons Why Growth Investors Shouldn't Overlook Yelp (YELP)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Yelp identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][6]. Group 1: Earnings Growth - Yelp has a historical EPS growth rate of 32.4%, with projected EPS growth of 19% for the current year, significantly outperforming the industry average of 10.5% [3]. Group 2: Asset Utilization Ratio - Yelp's asset utilization ratio stands at 1.38, indicating that the company generates $1.38 in sales for every dollar of assets, compared to the industry average of 0.69, showcasing superior efficiency [4]. Group 3: Sales Growth - The company's sales are expected to grow by 6.3% this year, while the industry average is stagnant at 0%, highlighting Yelp's strong sales growth potential [4]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Yelp have increased by 15.4% over the past month, indicating a positive trend in earnings estimate revisions, which is correlated with stock price movements [5]. Group 5: Overall Assessment - Yelp has achieved a Growth Score of B and a Zacks Rank of 2, reflecting its strong growth potential and positive earnings estimate revisions, making it a solid choice for growth investors [6][7].