Growth-focused investors focus on equities with above-average financial growth, as this feature helps these stocks attract market attention and generate strong returns. But finding a stock of great growth is not easy at all.

By their nature, these stocks are exposed to above average risk and volatility. In addition, if the growth story of a company is about to end or stop, betting on it could lead to significant losses.

However, the task of finding state-of-the-art growth stocks is facilitated by using the Zacks growth style score (part of the Zacks style score system), which goes beyond traditional growth attributes to analyze a company's actual growth prospects.

Bristol-Myers Squibb (BMY) is one of those actions currently recommended by our exclusive system. The company not only has a favorable growth index, but also ranks higher in the Zacks ranking.

Studies have shown that stocks with the best growth characteristics consistently outperform the market. And the returns are even better for stocks that combine a growth index of A or B and a rank of Zacks of rank 1 (strong buy) or 2 (buy).

Although the stock of this biopharmaceutical company is an excellent source of growth at the moment, we have highlighted three of the most important factors below:

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It can be argued that nothing is more important than earnings growth, as most investors are looking for higher profit levels. And for growing investors, double-digit earnings growth is definitely better, and often points to solid prospects (and stock price gains) for the company.

While Bristol-Myers' historical EPS growth rate is 17.4%, investors should focus on projected growth. The company's EPS is expected to grow by 4.6% this year, crushing the industry average, calling for EPS growth of 2.8%.

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Cash is the cornerstone of any business, but above-average cash flow growth is more beneficial and more important for growth-oriented companies than for mature businesses. Indeed, the strong accumulation of liquidity allows these companies to undertake new projects without raising expensive external funds.

At present, cash flow growth from one year to the other of Bristol-Myers is 12.2%, which is higher than many of its competitors. In fact, the rate compares with the industry average of 7.7%.

While investors should actually consider the current cash flow growth, it is also worth taking a look at historical rates to put the current price in the right perspective. The company's annualized cash flow growth rate has been 5.8% over the last three to five years, compared to an industry average of 2.6%.

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The superiority of a stock in terms of the parameters described above can be further validated by examining the trend of earnings estimates revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in revisions to earnings estimates and short-term stock price fluctuations.

Bristol-Myers earnings estimates have been revised upward. The Zacks Consensus estimate for the current year has increased by 1.8% over the last month.

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Although the revisions to the overall earnings estimate made Bristol-Myers a Tier 2 Zack, B was also a growth index based on a number of factors, including those mentioned above. -above.

You can see the complete list of # 1 Zacks stock at current rank (strong buy) here.

This combination indicates that Bristol-Myers is a potential outperform and a solid choice for growing investors.

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