Why Spire (SR) is a Top Growth Stock for the Long-Term

Zacks Investment Research suggests Spire Inc. (SR), a natural gas company, may be a compelling growth stock, citing a Growth Style Score of B and a VGM Score of A. The company, currently ranked a #3 (Hold) by Zacks, is projected to experience 9% earnings growth this fiscal year, with two analysts revising their fiscal 2025 earnings estimates upwards to $4.50 per share; Spire also has a 2.5% average earnings surprise.

Analysis

Spire Inc. (SR), a natural gas utility deriving over 90% of its profits from regulated operations, presents an interesting case for investors. Despite a Zacks Rank #3 (Hold), the company exhibits strong growth characteristics, evidenced by a VGM Score of A and a Growth Style Score of B. This is further supported by a forecasted 9% year-over-year earnings growth for the current fiscal year and a historical average earnings surprise of 2.5%. Regarding future outlook, two analysts have revised their earnings estimates upwards for fiscal 2025 in the past 60 days, with the Zacks Consensus Estimate for earnings per share standing at $4.50 for that period, representing no net change to the consensus value itself. The Zacks methodology, as detailed in the article, suggests that #3 ranked stocks with A or B Style Scores, such as Spire, can still hold upside potential, particularly when positive earnings estimate revisions are present, aligning with Spire's organic expansion strategy through systematic infrastructure investment and innovation.

Key Decisions for Investors

• Investors focusing on growth attributes may find Spire Inc. (SR) worthy of consideration due to its favorable Growth Style Score (B) and VGM Score (A), even with its current Zacks #3 (Hold) rating.
• Closely monitor future earnings estimate revisions and any changes to Spire's Zacks Rank, as these are highlighted by the source as key indicators for potential stock performance and could signal strengthening or weakening fundamentals.
• Evaluate Spire's valuation in the context of its projected 9% earnings growth, its 2.5% average earnings surprise, and the earnings visibility provided by its predominantly regulated business model when making investment decisions.