3 Reasons Why Growth Investors Shouldn't Overlook Addus HomeCare (ADUS)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns. However, identifying such stocks can be challenging due to the inherent risks and volatility associated with them [1]. Group 1: Company Overview - Addus HomeCare (ADUS) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2]. - The company specializes in home-based personal care, nursing, and rehabilitative therapy services, making it a strong candidate for growth investment [3]. Group 2: Earnings Growth - Addus HomeCare has a historical EPS growth rate of 15.6%, with projected EPS growth of 14.7% for the current year, surpassing the industry average of 11.2% [5]. - Earnings growth is emphasized as a critical factor for investors, with double-digit growth being particularly desirable [4]. Group 3: Cash Flow Growth - The company exhibits a year-over-year cash flow growth rate of 21.9%, significantly higher than the industry average of 2.3% [6]. - Over the past 3-5 years, Addus HomeCare has maintained an annualized cash flow growth rate of 22%, compared to the industry average of 8.5% [7]. Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Addus HomeCare, with the Zacks Consensus Estimate for the current year increasing by 0.6% over the past month [9]. - The correlation between earnings estimate revisions and near-term stock price movements is noted as a significant indicator of performance [8]. Group 5: Investment Positioning - Addus HomeCare holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [11].