Are You a Growth Investor? This 1 Stock Could Be the Perfect Pick

Zacks
12 Dec 2024

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.

Dolby Laboratories (DLB)

Founded in 1965, San Francisco, CA-based Dolby Laboratories, Inc develops audio and imaging technologies that revolutionise entertainment for user-generated content, TV shows, films, music, and gaming.

DLB sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of B, and has a VGM Score of B. Earnings and sales are forecasted to increase 4.8% and 6% year-over-year, respectively.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.11 to $3.97 per share. DLB boasts an average earnings surprise of 15.4%.

Looking at cash flow, Dolby Laboratories is expected to report cash flow growth of 2.8% this year; DLB has generated cash flow growth of 1% over the past three to five years.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, DLB should be on investors' short lists.

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Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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