Why Teradata (TDC) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [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 characteristics [2] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value 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 Score assesses a company's financial strength and future outlook by analyzing projected and historical earnings, sales, and cash flow, targeting growth investors [3] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes, catering to momentum investors [4] VGM Score - The VGM Score combines the three Style Scores to identify 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 stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [6][7] Stock to Watch: Teradata (TDC) - Teradata is a leading provider of connected multi-cloud data platforms, transitioning from an enterprise database company to an analytics platform provider, currently holding a 3 (Hold) Zacks Rank with a VGM Score of B and a Value Style Score of B due to a forward P/E ratio of 13.07 [10] - In the last 60 days, five analysts have raised their earnings estimates for Teradata for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.08 to $2.24 per share, and the company has an average earnings surprise of 11.8% [11]