SurModics (SRDX) is an Incredible Growth Stock: 3 Reasons Why

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - SurModics (SRDX) is identified as a promising growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company operates in the drug delivery technology sector, which is currently experiencing significant growth potential [3] Group 2: Earnings Growth - SurModics has a historical EPS growth rate of 4.5%, but projected EPS growth for this year is expected to be 153.1%, significantly surpassing the industry average of 20% [4] Group 3: Asset Utilization - The asset utilization ratio for SurModics is 0.7, indicating that the company generates $0.7 in sales for every dollar in assets, which is higher than the industry average of 0.61 [5] Group 4: Sales Growth - The company's sales are projected to grow by 13.2% this year, compared to the industry average of only 0.7% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for SurModics, with the Zacks Consensus Estimate for the current year increasing by 6.3% over the past month [8] - This trend supports the stock's Zacks Rank of 1 (Strong Buy) and a Growth Score of B [8] Group 6: Investment Potential - The combination of strong earnings growth, efficient asset utilization, and positive sales growth positions SurModics favorably for outperformance, making it an attractive option for growth investors [9]