Assessing Growth Potential Through R&D Expenditure

As an analyst evaluating a technology company poised for growth, you consider key indicators of its potential. The CEO recently announced a new product line that is expected to launch in the next quarter, which aligns with emerging market trends. Additionally, the company has been investing heavily in R&D, with expenditures projected to increase by 15% year-over-year.

To assess the growth potential, you examine the overall industry growth rate, the company's historical performance, and its competitive positioning in the market. Considering all this information, which of the following assessments provides the best indication of the company’s future growth potential?