Why Watts Water (WTS) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores offer a unique rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [3][4] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] - A large pool of stocks is available, with over 800 top-rated options, making the Style Scores essential for narrowing down choices [9] Stock Highlight: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. specializes in water safety and flow control products, generating 73.4% of its revenues from the Americas, 21.6% from Europe, and 5% from APMEA [12] - Currently rated 3 (Hold) by Zacks, WTS has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 11.9% in the past four weeks [13] - The Zacks Consensus Estimate for WTS's earnings has risen by $0.06 to $8.70 per share, with an average earnings surprise of 11.7% [13][14]