Why This 1 Growth Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

Model N (MODN)

San Mateo, CA-based Model N Inc. provides revenue management solutions for life sciences and technology companies including applications for configure, price, quote (CPQ), rebates management and regulatory compliance.

MODN sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of A, and has a VGM Score of B. Earnings and sales are forecasted to increase 29.6% and 11.9% year-over-year, respectively.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.13 to $0.70 per share. MODN boasts an average earnings surprise of 80.2%.

Model N is also cash rich. The company has generated cash flow growth of 19.5%, and is expected to report cash flow expansion of 84.2% in 2022.

MODN should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.


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