ZACKS EQUITY RESEARCH - June 7 - The Meet Group not only has a favorable Growth Score, but also carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1.
- Earnings Growth
Nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable. While the historical EPS growth rate for Meet Group is 17.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 28.7% this year.
- Impressive Asset Utilization Ratio
Also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales. Right now, Meet Group has an S/TA ratio of 0.72, which means that the company gets $0.72 in sales for each dollar in assets. Comparing this to the industry average of 0.7, it can be said that the company is more efficient.
- Promising Earnings Estimate Revisions
Investors should consider the trend in earnings estimate revisions. A positive trend is a plus here.