3 Reasons Growth Investors Will Love Cavco (CVCO)

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Cavco (CVCO) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 29.4%, with projected EPS growth of 19.4% this year, significantly outperforming the industry average of 5.4% [5] Group 2: Financial Metrics - Cavco's asset utilization ratio (sales-to-total-assets ratio) is 1.4, indicating that the company generates $1.4 in sales for every dollar in assets, surpassing the industry average of 1.23 [6] - The company's sales are expected to grow by 13.2% this year, while the industry average is projected at 0% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Cavco, with the Zacks Consensus Estimate for the current year increasing by 21.8% over the past month [9] - Cavco has earned a Growth Score of B and carries a Zacks Rank 1 due to these positive earnings estimate revisions, positioning it well for potential outperformance [11]