Core Insights - The article discusses the Zacks Style Scores, which are designed to help investors identify stocks with the best chances of outperforming the market over the next 30 days [2][3]. Zacks Style Scores Overview - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][10]. - Each stock is rated from A to F based on value, growth, and momentum qualities, with A being the highest rating [7]. Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [5]. Growth Score - The Growth Style Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [8]. Momentum Score - The Momentum Style Score focuses on trends in stock price and earnings outlook, helping investors identify optimal times to build positions [9]. VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [10]. Zacks Rank Integration - The Zacks Rank, which is based on earnings estimate revisions, is highly successful, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [12]. - To maximize returns, investors should consider stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B [13]. Company Spotlight: MKS Instruments (MKSI) - MKS Instruments is a global provider of instruments and solutions for advanced manufacturing processes [16]. - MKSI holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating strong growth potential [17]. - The company is forecasted to achieve year-over-year earnings growth of 12.4% for the current fiscal year, with an upward revision in earnings estimates [17].
Why MKS Instruments (MKSI) is a Top Growth Stock for the Long-Term