Nutex Health Inc (NASDAQ:NUTX) Passes Louis Navellier's "Little Book" Growth Stock Screen

Growth investing methods often aim to find companies showing solid and quickening financial results before the wider market completely recognizes their possibility. One organized method for this investment style is described in Louis Navellier's The Little Book That Makes You Rich, which lists eight basic rules for picking excellent growth stocks. These rules concentrate on good earnings revisions and surprises, rising sales and margins, solid cash flow, earnings growth and momentum, and a high return on equity. A recent filter using this system has identified Nutex Health Inc (NASDAQ:NUTX) as a company that seems to fit these strict standards.

Fitting the "Little Book" Standards

The filter uses exact numerical limits for each of Navellier's eight rules. An examination of Nutex Health's recent financial numbers shows how the company matches this growth-centered structure.

• Good Earnings Revisions: The method prizes upward changes to analyst estimates as an indicator of fundamental strength. Nutex Health shows a 43.7% rise in the average EPS estimate for the next quarter over the last three months, showing increasing analyst belief.
• Good Earnings Surprises: Regularly exceeding forecasts can make analysts reconsider future potential. Nutex Health has reported a good earnings surprise in three of the last four quarters, with an average beat of a notable 2,386.6%.
• Rising Sales Growth: Quickening revenue is a foundation of growth investing. The company displays fast top-line increase, with year-over-year revenue growth of 236.0% and quarter-over-quarter growth of 239.9%.
• Growing Operating Margins: Profitable growth is important; a company should increase sales without expenses climbing equally. Nutex Health's operating margin has grown by 278.1% over the past year, pointing to much better profitability on its rising revenue.
• Solid Cash Flow: Strong free cash flow offers financial room and pays for internal expansion. Nutex Health's free cash flow increased by an outstanding 3,319.3% in the past year.
• Earnings Growth: Bottom-line growth must follow top-line growth. The company's earnings per share grew 873.6% year-over-year and 551.2% quarter-over-quarter.
• Good Earnings Momentum: The method looks for quickening earnings growth. While the EPS growth rate from the quarter four periods ago was negative (-14.7%), the latest quarter's growth of 551.2% shows a strong positive turn, a vital sign for momentum investors.
• High Return on Equity (ROE): A high ROE shows efficient use of shareholder money. Nutex Health's ROE of 36.0% is much higher than the filter's lowest limit of 10%.

Fundamental Condition and Valuation Setting

Beyond the exact filter standards, a wider fundamental review of Nutex Health shows a company in solid financial condition with interesting valuation traits. According to ChartMill's full fundamental report, the company gets an overall fundamental score of 7 out of 10.

The report notes outstanding condition, with high-level liquidity and solvency scores pointing to no short-term financial trouble. Profitability numbers are firm, including industry-leading operating and profit margins. The most interesting part may be the mix of growth and value: Nutex Health is increasing revenues and earnings at a great speed while trading at valuation levels that seem low compared to both its industry and the wider market. Its Price-to-Earnings ratio of 8.3 and Price-to-Forward-Earnings ratio of 7.1 are much lower than industry averages, offering what some could view as a "growth at a sensible price" possibility.

A Beginning for More Study

It is essential to remember that filters are instruments for finding ideas, not a replacement for complete investigation. The "Little Book" filter is purposely created on short-term, momentum-focused fundamental numbers to find developing growth stories. Investors should think about the company's longer-term history, competitive environment inside the healthcare services field, and the durability of its present fast-growth rates.

For investors wanting to look at other companies that currently pass this growth-focused filter, the complete list of findings is accessible here: View the "Little Book" Filter Findings.

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Disclaimer: This article is for information only and does not form investment guidance, a suggestion, or an offer to buy or sell any security. The data and study provided are from sources thought to be dependable, but their correctness cannot be assured. Investors should do their own separate research and talk with a qualified financial advisor before making any investment choices.