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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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
Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Cheesecake Factory (CAKE)
As of Oct. 29, 2024, Cheesecake Factory owned and operated 347 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory and North Italia, Flower Child and a collection within the Fox Restaurant Concepts subsidiary.
CAKE sits at a Zacks Rank #2 (Buy), holds a Growth Style Score of A, and has a VGM Score of A. Earnings and sales are forecasted to increase 7.9% and 5.3% year-over-year, respectively.
Seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $3.71 per share for 2025. CAKE boasts an average earnings surprise of 15.3%.
Looking at cash flow, Cheesecake Factory is expected to report cash flow growth of 20.1% this year; CAKE has generated cash flow growth of 1.6% over the past three to five years.
CAKE 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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The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).