Why Armstrong World Industries (AWI) is a Top Momentum Stock for the Long-Term

Group 1: Zacks Premium Overview - Zacks Premium offers various tools to help investors make informed decisions, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service includes Zacks Style Scores, which rate stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [2] Group 2: Zacks Style Scores Breakdown - Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [2] - Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow for sustainable growth [3] - Momentum Score capitalizes on price trends, using factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [3] - VGM Score combines value, growth, and momentum ratings, helping investors find companies with the best overall potential [3] Group 3: Zacks Rank and Style Scores Interaction - The Zacks Rank model uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring a higher probability of success [5] Group 4: Company Spotlight - Armstrong World Industries (AWI) - Armstrong World Industries, established in 1891, is a leading global producer of ceiling systems for various building types, including commercial and residential [6] - AWI holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong potential [6] - The company has a Momentum Style Score of A, with shares increasing by 7.3% over the past four weeks, and three analysts have raised earnings estimates for fiscal 2024 [6] - The Zacks Consensus Estimate for AWI has risen by $0.13 to $6.02 per share, with an average earnings surprise of 15.4% [6][7]