Why Penumbra (PEN) is a Top Momentum Stock for the Long-Term

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores in identifying stocks with high potential for market outperformance over the next 30 days [2][10]. Group 1: Zacks Rank and Style Scores - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to facilitate portfolio building [9]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [15]. - The Style Scores categorize stocks into Value, Growth, and Momentum, with each stock receiving a rating from A to F based on its characteristics [17][18]. Group 2: Penumbra (PEN) Analysis - Penumbra is highlighted as a stock to watch, holding a 2 (Buy) rating on the Zacks Rank and a VGM Score of B [23]. - The company has seen a 0.7% increase in shares over the past four weeks, indicating positive momentum [6]. - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.01 to $2.88 per share, with an average earnings surprise of 26% [24]. Group 3: Investment Strategies - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [10][11]. - The VGM Score combines Value, Growth, and Momentum characteristics to identify stocks with the most attractive profiles [3].