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 growth stock that lives up to its true potential can be a daunting task. By their nature, these stocks carry above average risk and volatility. In addition, if the growth of a business is about to end or close to an end, betting on it could result in a significant loss. However, the task of finding state-of-the-art growth stocks is facilitated by using the Zacks Growth Style Score (Zack Style Scores element), which goes beyond traditional growth attributes to analyze the outlook. The actual growth of a company. Cable One (CABO) is on the list of actions of this type currently recommended by our exclusive system. In addition to a favorable growth index, it is among the best Zacks Rank. 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) .When there are many reasons why the action of this telecommunications business is excellent growth, we have highlighted three of the most important factors below:Revenue growthEarnings growth is probably the most important factor, as stocks with exceptionally high profit levels tend to attract the attention of most investors. For growing investors, double-digit earnings growth is highly preferable, as it is often seen as an indication of promising prospects (and stock price gains) for the company. The historical growth rate of Cable One's EPS is 13.9%. should actually focus on projected growth. The company's EPS is expected to grow by 15.2% this year, crushing the industry average, calling for EPS growth of 7.7%.Cash flow growthWhile cash is the lifeblood of any business, above-average cash flow growth is more important and more beneficial for growth-oriented companies than for mature companies. Indeed, cash flow growth allows these companies to develop their businesses without relying on expensive external funds. Currently, Cable One's year-over-year cash flow growth is 24.4%, which is ahead of many of its peers. In fact, the rate is comparable to the industry average of 6.9%. While investors should consider the current cash flow growth, it is also worth taking a look at historical rates to put the current reading in perspective. The company's annualized cash flow growth rate has been 7% over the last three to five years, compared with an industry average of 5.8%.Promising revisions to the estimation of the resultsThe 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 movements. Cable One 's earnings estimates for the current year have been revised upward. The Zacks Consensus estimate for the current year has jumped 0.5% over the last month.Bottom lineAlthough the revisions to the overall profit estimate made Cable One a Tier 2 Zack, it was also worth a growth index of B based on a number of factors, including including those described above. You can see the full list of Zacks from today. Rank shares (strong buy) are here. This combination positions Cable One well for outperformance, so investors in growth may want to bet on it.
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Cable One, Inc. (CABO): Free Stock Analysis Report

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