Zacks Rates Meritor A “Growth Stock” And “Strong Buy”

TROY, Mich.–Zacks Equity Research calls auto supplier one of its top “growth stocks.” And Zacks rates it a “strong buy”

Meritor trainingThe company, which is an innovator and supplier of drivetrain, mobility, braking systems, and aftermarket solutions, saw shares dip recently. But according to Zacks analysis, that could be presenting a buying opportunity for investors.

Zacks report focuses on earnings growth, cash-flow growth and promising earnings estimate revisions.

Earnings growth: While the historical EPS growth rate for Meritor is 29.1%, investors should actually focus on the projected growth. The company’s EPS is expected to grow 11% this year, crushing the industry average, which calls for EPS growth of -0.5%.

Cash Flow Growth: Right now, year-over-year cash flow growth for Meritor is 46.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 15.3%.

Revised earnings: The current-year earnings estimates for Meritor have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.2% over the past month.

Check out the whole report here.

David Kiley
David Kiley

David Kiley is Chief of Content for The BRAKE Report. Kiley is an award-winning business journalist and author, having covered the auto industry for USA Today, Businessweek, AOL/Huffington Post, as well as written articles for Automobile and Popular Mechanics.