Why Penumbra (PEN) is a Top Growth Stock for the Long-Term

Zacks
28 Apr

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

Penumbra (PEN)

Headquartered in Alameda, CA, Penumbra, as a global healthcare company, designs, develops, manufactures and markets innovative products for use by specialist physicians and healthcare providers to drive improved clinical and health outcomes. It has a broad portfolio that addresses challenging medical conditions in markets with significant unmet needs.

PEN boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 69.4% year-over-year for 2025, while Wall Street anticipates its top line to improve by 13.3%.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.10 to $3.76 per share. PEN boasts an average earnings surprise of 17.5%.

On a historic basis, Penumbra has generated cash flow growth of 20.5%, and is expected to report cash flow expansion of 1.5% this year.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, PEN should be on investors' short lists.

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Penumbra, Inc. (PEN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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