3 Reasons Growth Investors Will Love TTM (TTMI)

Zacks Investment Research recommends TTM Technologies (TTMI) as a strong growth stock, assigning it a Zacks Rank #2 (Buy) and Growth Score B. The printed circuit board maker is projected to significantly outperform its industry with 35.5% EPS growth this year, alongside robust 15.4% sales growth and a superior asset utilization ratio of 0.76. Furthermore, current-year earnings estimates for TTMI have seen a 5% upward revision over the past month, collectively positioning the company for potential outperformance.

Analysis

TTM Technologies (TTMI) presents a compelling growth case based on a combination of strong forward-looking estimates and superior operational metrics relative to its industry. The company is projected to deliver substantial earnings growth, with an expected EPS increase of 35.5% for the current year, more than double the industry average forecast of 15.9%. This bottom-line expansion is supported by robust top-line expectations, with sales projected to grow 15.4% against a stagnant industry average of 0%. Operationally, TTMI demonstrates greater efficiency, evidenced by its sales-to-total-assets (S/TA) ratio of 0.76, which surpasses the industry benchmark of 0.74. Reinforcing this positive outlook, the Zacks Consensus Estimate for current-year earnings has been revised upward by 5% over the past month, a trend that historically shows a strong correlation with near-term stock price movements and underpins the stock's Zacks Rank #2 (Buy) rating.

Key Decisions for Investors

• Given the projected 35.5% EPS growth and 15.4% sales growth, which significantly outpace industry averages, investors with a growth-oriented mandate should evaluate TTMI as a candidate for potential alpha.
• The 5% upward revision in consensus earnings estimates over the past month suggests positive near-term momentum, but it is crucial to monitor upcoming quarterly reports to validate that these strong growth projections are materializing.
• While the fundamental picture is strong, investors must weigh this against the inherent volatility of growth stocks, as the investment thesis is heavily contingent on the company meeting its ambitious financial targets.