CENTRUS ENERGY CORP-CLASS A (NYSEARCA:LEU) – A Strong Contender for Growth Investors

CENTRUS ENERGY CORP-CLASS A (NYSEARCA:LEU) has emerged as a notable candidate for investors following Louis Navellier’s growth-focused strategy. The company, which supplies nuclear fuel and services, meets several key criteria outlined in Navellier’s approach, including strong earnings revisions, accelerating growth, and high profitability. Below, we examine why LEU stands out.

Key Strengths Aligning with Navellier’s Strategy

• Positive Earnings Revisions: Analysts have raised EPS estimates for the next quarter by 58.93% over the past three months, signaling growing confidence in LEU’s near-term performance.
• Strong Earnings Surprises: The company has surpassed earnings expectations in three of the last four quarters, with an average surprise of 2,384.48%, reflecting consistent outperformance.
• Rapid Sales Growth: Revenue has surged 58.72% year-over-year, while quarterly sales growth stands at 67.28%, indicating strong demand for its nuclear fuel and services.
• Expanding Profitability: Operating margins have improved by 34.48% over the past year, demonstrating efficient cost management alongside revenue growth.
• High Return on Equity (ROE): LEU’s ROE of 49.79% ranks in the top tier of its industry, showing effective use of shareholder capital.

Growth and Valuation Considerations

While LEU’s valuation appears elevated with a P/E ratio of 22.47, its growth metrics justify some premium. Free cash flow has grown 180.97% year-over-year, reinforcing financial flexibility. However, investors should note that earnings are expected to dip slightly (-2.65%) in the coming year, though revenue is projected to grow nearly 20% annually.

For a deeper dive into LEU’s financial health, review the full fundamental analysis report.

Our Louis Navellier Growth Stock Screener provides more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.