![]() ![]() Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. How Style Scores Work with the Zacks RankĪ proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks. Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. ![]() The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time. Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. The Style Scores are broken down into four categories: Just like in school, an A is better than a B, a B is better than a C, and so on - that means the better the score, the better chance the stock will outperform. It also includes access to the Zacks Style Scores.ĭeveloped alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.Įach stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics.
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