Yum China (YUMC) is an Incredible Growth Stock: 3 Reasons Why

Zacks11-16

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy ...

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However, it isn't easy ...</p>\n\n<a href=\"https://finance.yahoo.com/news/yum-china-yumc-incredible-growth-174505287.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4531","symbol_name":"中概回港概念","start_time":0,"source_url":"https://finance.yahoo.com/news/yum-china-yumc-incredible-growth-174505287.html","article_id":"2483584681","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/HIalcDlt7JZPKSITVlxPuw--~B/aD02MDA7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/c2fdcaac033e049c74f38d188afcc9f9"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483584681","pubTimestamp":1731692705,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. 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And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4531":"中概回港概念","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","BK4585":"ETF&股票定投概念","LU0823426308.USD":"法巴中国股票基金","LU2177674079.SGD":"Fidelity Asia Pacific Opportunities A-ACC-SGD (hedged)","IE00BGV7N243.SGD":"FSSA Global Emerging Markets Focus I Acc SGD","LU0594300419.USD":"富达中国消费基金A","LU0327786744.USD":"Janus Henderson Horizon China Opportunities A2 USD","LU2008162690.USD":"FIDELITY FUNDS - ASIA PACIFIC OPPORTUNITIES \"A\" (USD) ACC","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0456842615.SGD":"JPMorgan Funds - Emerging Markets Equity A (acc) SGD","BK4588":"碎股","BK4526":"热门中概股","LU0823426480.USD":"法巴中国股票经典Dis","LU0651946864.USD":"贝莱德新兴市场股票收益A2","LU1051768304.USD":"贝莱德新兴市场股票收益A6","LU0359201612.USD":"贝莱德中国基金A2","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","LU0650527681.SGD":"Fidelity China Consumer A-SGD","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","BK4504":"桥水持仓","LU0572944931.SGD":"Janus Henderson Horizon China Opportunities A2 SGD","BK4209":"餐馆","YUMC":"百胜中国","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU0228659784.USD":"施罗德金砖四国基金","LU2279701549.SGD":"JPMorgan Funds - Emerging Markets Sustainable Equity A (acc) SGD"},"translate_title":"百胜中国(YUMC)是一只令人难以置信的成长型股票：3个原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"YUMC":1},"content_text":"Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.\nThat's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.\nHowever, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.\nYum China Holdings (YUMC) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.\nStudies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.\nHere are three of the most important factors that make the stock of this restaurant operator in China a great growth pick right now.\nEarnings Growth\nEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.\nWhile the historical EPS growth rate for Yum China is 5.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 15.5% this year, crushing the industry average, which calls for EPS growth of 5.4%.\nImpressive Asset Utilization Ratio\nGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.\nRight now, Yum China has an S/TA ratio of 0.96, which means that the company gets $0.96 in sales for each dollar in assets. Comparing this to the industry average of 0.95, it can be said that the company is more efficient.\nWhile the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Yum China is well positioned from a sales growth perspective too. The company's sales are expected to grow 3.8% this year versus the industry average of 2.6%.\nPromising Earnings Estimate Revisions\nBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.\nThere have been upward revisions in current-year earnings estimates for Yum China. The Zacks Consensus Estimate for the current year has surged 4.1% over the past month.\nBottom Line\nYum China has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.\nYou can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.\nThis combination positions Yum China well for outperformance, so growth investors may want to bet on it.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nYum China (YUMC) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483584681"}