Here's Why Trimble Is a No-Brainer Growth Stock
If there's one metric that most successful stocks must have, it's margin expansion. In general, investors should avoid businesses with declining profit margins and buy businesses with rising or potentially rising profit margins.
That's why I think there's a strong case for buying shares in industrial technology company Trimble (NASDAQ: TRMB). Despite some potential near-term headwinds from a slowdown in the economy, the stock looks like a tremendous long-term value, and the 28% decline in the share price over the last year means a lot of the bad news is already priced in.
Before getting to how Trimble can expand margins, here's a quick look at operating margin progression on a historical and projected basis. Again, there's a general uptrend, and if management can hit its 26% to 27% target by 2027, investors can expect substantial earnings and cash flow growth on the back of revenue expansion.
Source Fool.com
