Why Spire (SR) is a Top Growth Stock for the Long-Term
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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
Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Spire (SR)
Spire Inc. is a natural gas company efficiently serving more than 1.7 million customers in the United States. It was founded in 2000 and is headquartered in St. Louis, MO. The company continues to expand business organically via making systematic investments to expand infrastructure and advance through innovation. More than 90% of its profits come from regulated operations, which provide a clear idea about future earnings. The company operates more than 60,000 miles of pipelines. Its natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage. The company operates via segments, namely Gas Utility, Gas Marketing and Midstream.
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SR sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of A. Earnings and sales are forecasted to increase 9% and 4.9% year-over-year, respectively.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0 to $4.50 per share. SR also boasts an average earnings surprise of 2.5%.
Looking at cash flow, Spire is expected to report cash flow growth of 8.9% this year; SR has generated cash flow growth of 6.9% over the past three to five years.
SR 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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Spire Inc. (SR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).