FLOTEK INDUSTRIES INC (NYSE:FTK) Emerges as a Top Growth Stock Using Navellier's Criteria

In growth investing, few methods have received as much focus as the system presented by Louis Navellier in his important work, "The Little Book That Makes You Rich." The plan focuses on finding companies showing solid, quickening growth using a mix of earnings momentum, rising analyst changes, growing margins, and strong cash flows. It is a strict system that aims to find stocks before they gain broad notice, using numerical filters to identify businesses with excellent core traits. This system is especially fitting in today's market setting, where both immediate and extended outlooks for the S&P 500 stay optimistic, forming a supportive environment for growth-focused stocks.

One firm that recently appeared through a filter built on Navellier’s standards is FLOTEK INDUSTRIES INC (NYSE:FTK). The Houston-based specialty chemistry and data analytics company works in a sector centered on lessening the environmental effect of energy activities, placing it where energy efficiency and technology meet. Its presence in the filter implies it satisfies a number of the main growth standards detailed in the Little Book plan.

• Positive Earnings Changes and Surprises: A key part of Navellier’s system is the focus on analyst positivity and steady earnings beats. FLOTEK displays a significant upward change in next-quarter EPS forecasts, which have increased by more than 33% in the past three months. This shows rising belief among analysts about the firm’s short-term future. Also, FLOTEK has reported positive earnings surprises in every one of the past four quarters, with an average beat of 25%. This habit of beating forecasts frequently results in more estimate increases and can be a driver for price gains.

• Sales and Earnings Growth: Quickening growth in both income and earnings is vital for spotting companies with momentum. FLOTEK’s income growth is notable, with a 21.7% year-over-year rise and a 26.4% surge in the latest quarter versus the same time the previous year. Even more notable is its earnings growth, with EPS growing by 150% over the last year and 166.7% quarter-over-quarter. These numbers show not only growing sales but also better efficiency in turning income into profit.

• Growing Profitability and Solid Cash Flow: Navellier’s plan points out the value of getting better margins and cash creation as indicators of a high-standard business. FLOTEK’s operating margin has increased by almost 99% over the past year, showing that the company is getting more profitable as it grows. Also, its free cash flow has jumped by over 109% in the last twelve months, offering the monetary freedom to put money into growth, lower debt, or follow other value-building chances without depending much on outside funding.

• High Return on Equity: Another important measure in the Little Book system is return on equity (ROE), which calculates how well a company creates profits from shareholder investments. FLOTEK’s ROE of 19.6% is much higher than the lowest level of 10% proposed by Navellier and is with the best in its field. This shows effective use of money and matches the goal of finding companies that provide excellent returns.

When looking at FLOTEK through a wider core lens, the company shows a varied but hopeful picture. According to a detailed core examination report, the company rates 5 out of 10, showing strong points in growth and profitability but some issues about monetary soundness. Its notable growth measures, both past and predicted, are a clear strong point, with income and earnings forecast to keep growing at a solid speed. Profitability ratios like return on assets and return on equity are good, although stability measures like the Altman-Z score show some monetary risk that investors need to watch. Price looks fair compared to field rivals and the wider market, particularly when thinking about its growth path.

For investors wanting to look into other companies that match this growth-focused plan, the filter used to find FLOTEK can be found here. This tool lets users change standards based on their own study and market view, offering an active way to use Navellier’s ideas in real time.

It is key to note that while numerical filters can find interesting chances, they are only a first step for more study. This article is for information only and does not form investment guidance. Investors should do their own homework and think about their risk comfort before making any monetary choices.