Recently, the independent rating agency Zacks in the USA released a report stating that stocks with the best growth potential can outperform the market, and Lenovo Group (LNVGY) is an incredible growth stock, given a "strong buy" recommendation.

Reasons are as follows:

Revenue growth exceeds industry average.

The soaring profit level is what most investors pursue. For growth investors, double-digit revenue growth is definitely the preferred option and usually an indicator of a company's stock price increase.

Although Lenovo Group's historical EPS growth rate is 15.6%, investors should actually focus on expected growth. The company's EPS is expected to grow by 54% this year, far exceeding the industry average requirement of 30.7% EPS growth.

Impressive asset utilization rate.

Asset utilization rate is often overlooked by investors, but it is an important indicator in growth investment. This indicator shows the efficiency of the company in using its assets to generate sales.

Currently, Lenovo Group's S/TA ratio is 1.46, which means that the company can generate $1.46 in sales revenue for every $1 it invests in production, making it more efficient than the industry average of 1.28.

In addition to generating efficient sales, sales growth also plays an important role.And Lenovo Group is also in a favorable position in terms of sales growth. The company's sales are expected to grow by 8.2% this year, while the industry average is only 0.1%.

Projected earnings are revised upward.

In addition to the above indicators, investors should also consider the trend of profit forecast revisions. A positive trend here is a plus factor. Research shows that there is a strong correlation between the trend of profit forecast revisions and the recent trend of stock prices. Lenovo Group's profit forecast for this year has been continually revised upwards. In the past month, Zacks' comprehensive forecast for this year has skyrocketed by 3.3%.

In summary, Lenovo Group (LNVGY) is an incredible growth stock, given a "strong buy" recommendation.