Why Royal Philips (PHG) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to research reports, and stock screening tools [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [3] Momentum Score - The Momentum Style Score assists momentum investors by evaluating price trends and earnings estimate changes, helping to identify optimal buying opportunities for high-momentum stocks [4] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth forecasts, and momentum, serving as a strong indicator alongside the Zacks Rank [5] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6][7] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors when selecting suitable options [7] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks rated 3 (Hold) should also have favorable Style Scores to ensure potential upside [8] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (e.g., 4 or 5) may still have good Style Scores but are likely to decline in price due to negative earnings forecasts [9] Company Spotlight: Royal Philips (PHG) - Koninklijke Philips N.V. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A, indicating strong potential for investors [10] - The company has a forward P/E ratio of 19.56, making it attractive for value investors, and has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.06 to $1.56 per share for fiscal 2024 [11]