Growth Investors Should Buy VAREX IMAGING (VREX) Now Due to Impressive Earnings Growth and Asset Utilization Ratio

VAREX IMAGING (VREX) is a growth stock that has a favorable Growth Score and a top Zacks Rank. The company is expected to see 21.8% EPS growth this year, compared to the industry average of 12.5%. Additionally, VAREX IMAGING has an impressive asset utilization ratio of 0.66, indicating efficient use of assets to generate sales. The company's sales are expected to grow 1.5% this year, compared to the industry average of 0%. These factors make VAREX IMAGING a great growth pick.

Title: VAREX IMAGING (VREX): A Promising Growth Stock for 2025

VAREX IMAGING (VREX) has emerged as a strong contender for growth investors in 2025. The company boasts a favorable Growth Score and a top Zacks Rank, making it an attractive option for those seeking above-average financial growth. According to the Zacks Investment Research, VAREX IMAGING is expected to see 21.8% earnings per share (EPS) growth this year, significantly surpassing the industry average of 12.5% [1].

One of the key factors contributing to VAREX IMAGING's growth potential is its impressive asset utilization ratio. The company has an S/TA ratio of 0.66, indicating efficient use of assets to generate sales. This ratio is higher than the industry average of 0.58, suggesting that VAREX IMAGING is more efficient in converting its assets into sales [1].

Additionally, VAREX IMAGING's sales are expected to grow by 1.5% this year, compared to the industry average of 0%. This growth in sales, coupled with the company's strong EPS growth, positions VAREX IMAGING as a solid growth pick for investors.

The company's recent earnings call for Q3 2025 further validates its growth prospects. VAREX IMAGING reported an EPS of $0.18, significantly exceeding the forecast of $0.02. This 800% surprise led to a 10.94% increase in the stock price in after-hours trading. The company's revenue also surpassed expectations, reaching $203 million despite a 3% year-over-year decrease [2].

Looking ahead, VAREX IMAGING provided revenue guidance for Q4 2025 of $210-$230 million and non-GAAP EPS guidance of $0.10-$0.30. The company expects net income growth this year, with the potential for low to mid-single-digit growth in fiscal 2026. The outlook suggests that VAREX IMAGING is well-positioned to continue delivering strong financial results.

References:
[1] https://www.nasdaq.com/articles/here-why-growth-investors-should-buy-varex-imaging-vrex-now
[2] https://au.investing.com/news/transcripts/earnings-call-transcript-varex-imaging-q3-2025-eps-beats-forecast-stock-surges-93CH-3968397