Why GoDaddy (GDDY) is a Top Growth Stock for the Long-Term

GoDaddy (GDDY) is identified by Zacks as a compelling growth stock, despite its #3 (Hold) rank, due to its strong 'B' ratings in both Growth and VGM Style Scores. The company is projected for 24.7% year-over-year earnings growth in the current fiscal year, supported by six analyst upgrades to FY2025 estimates, raising the consensus to $6.05 per share, alongside an average earnings surprise of +0.5%.

Analysis

GoDaddy (GDDY) presents a specific case for growth-oriented investors, even with a neutral Zacks #3 (Hold) rank. The stock's investment thesis is primarily supported by its strong growth profile, as indicated by a 'B' rating in both its Growth Style Score and its composite VGM Score. This is quantitatively backed by a forecast for 24.7% year-over-year earnings growth in the current fiscal year. Furthermore, forward-looking sentiment appears to be improving, with six analysts revising their fiscal 2025 earnings estimates upward over the last 60 days. This has lifted the consensus earnings per share estimate for FY2025 by $0.13 to $6.05. The company's operational consistency is underscored by an average positive earnings surprise of 0.5%, suggesting a reliable track record of meeting or slightly exceeding market expectations. The combination of a strong growth forecast and positive analyst estimate revisions positions GDDY as a noteworthy stock, despite its neutral top-level rating.

Key Decisions for Investors

• Growth-focused investors should consider the compelling underlying metrics, such as the 24.7% projected earnings growth and positive FY2025 analyst revisions, which may present an opportunity despite the neutral Zacks #3 Hold rating.
• Monitor for a potential upgrade in the primary Zacks Rank, as a shift from 'Hold' to 'Buy' could act as a significant bullish catalyst, signaling that broader factors are aligning with the stock's strong growth narrative.
• Given the positive earnings surprise history and rising consensus estimate to $6.05 for FY2025, current holders may find justification to maintain their positions, while acknowledging that the neutral rank might temper expectations for near-term multiple expansion.