Why W.R. Berkley (WRB) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to assist investors in selecting stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores - The Style Scores categorize stocks into four types: Value, Growth, Momentum, and a combined VGM Score, which evaluates stocks based on various financial metrics [4][5][7] - Value Style Score focuses on identifying undervalued stocks using ratios like P/E and Price/Cash Flow [4] - Growth Style Score assesses a company's future growth potential through projected earnings and sales [5] - Momentum Style Score identifies stocks with favorable price trends and earnings outlooks [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in portfolio building [8] - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [10] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [12] - The direction of earnings estimate revisions is crucial in stock selection, as declining forecasts can negatively impact stock prices [13] Company Spotlight: W.R. Berkley Corp. (WRB) - W.R. Berkley is a leading commercial lines property casualty insurance provider, ranked 2 (Buy) on the Zacks Rank with a VGM Score of A [15][16] - The company has seen a 3.2% increase in shares over the past four weeks, with upward revisions in earnings estimates for fiscal 2024 [16] - W.R. Berkley has an average earnings surprise of 11.4%, making it a strong candidate for investors [16][17]