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3 Buy Rated Stocks Tailored for Growth Focused Investors

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Consistent sales growth is key, as it’s the foundation of profit generation. Strong revenue generation allows companies to achieve scaling efficiencies, generate continuous shareholder value, and enjoy many other clear benefits.

When it comes to top line strength, three companies – GigaCloud Technology (GCT - Free Report) , Blue Bird (BLBD - Free Report) , and Powell Industries (POWL - Free Report) – have all grown their sales considerably over recent years.

In addition, all three currently sport a favorable Zacks Rank, reflecting optimism among analysts. For those seeking top line compounders, let’s take a closer look at each.

 

GigaCloud Technology Sports Sound Valuation

GigaCloud Technology Inc. is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. Analysts have taken their earnings expectations higher across the board, landing the stock into a Zacks Rank #1 (Strong Buy).

The revisions trend for its current fiscal year has been notably bullish, up more than 100% over the last year to $3.25 per share and suggesting 41% year-over-year growth.

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Image Source: Zacks Investment Research

The company’s sales growth has been remarkable thanks to continued business momentum, with sales of $251 million throughout its latest period nearly doubling the mark in the year-ago quarter. Sales are forecasted to climb 60% in its current fiscal year.

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Image Source: Zacks Investment Research

Shares aren’t expensive given its forecasted growth, currently trading at an 8.1X forward 12-month earnings multiple. The stock sports a Style Score of ‘A’ for Value, perhaps enticing those with a value-focused approach seeking technology exposure.

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Image Source: Zacks Investment Research

 

Blue Bird Shares Double in Value YTD

Blue Bird, a current Zacks Rank #1 (Strong Buy), designs, engineers, manufactures, and sells school buses and related parts. Like GCT, the revisions trend for its current fiscal year has been notably bullish, up 90% to $2.73 per share over the last year.

The value forecasts a sizable 155% jump in EPS, with sales also forecasted to see an 18% increase.

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Image Source: Zacks Investment Research

The company’s sales have recovered nicely over recent quarters, with $346 million in quarterly revenue throughout its latest quarter jumping 15% year-over-year. The stock sports a Style Score of ‘A’ for Growth.

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Image Source: Zacks Investment Research

Shares have been notably strong in 2024 on the back of robust quarterly results, gaining more than 100% and reflecting remarkable outperformance.

 

Powell Industries Posts 290% EPS Growth

Powell Industries is a leading supplier of custom-engineered solutions for the management, control, and distribution of electrical energy. The company’s outlook has shot higher across the board, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).

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Image Source: Zacks Investment Research

The company has consistently posted robust quarterly results that have exceeded expectations, beating our consensus EPS estimate by an average of nearly 70% across its last four releases. In its latest print, POWL posted a double beat, with earnings and revenue climbing 290% and 50%, respectively.

Michael Metcalg, CFO, remains bullish on the company’s outlook, stating, ‘We continue to expect another strong year of financial performance in Fiscal 2024 as our core Industrial end markets, as well as our Electric Utility and Commercial and Other Industrial markets, are exhibiting favorable dynamics and activity levels to support our growth.’

 

Bottom Line

Strong revenue generation leads to many positives, such as scaling efficiencies and meaningful earnings growth.

And when it comes to strong revenue trends, all three companies above – GigaCloud Technology (GCT - Free Report) , Blue Bird (BLBD - Free Report) , and Powell Industries (POWL - Free Report) – precisely fit the criteria.

In addition to strong sales growth, all three sport a favorable Zacks Rank, reflecting bullishness among analysts and providing shares the fuel needed to climb higher.


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