Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each assessing different investment characteristics [2][3][4] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - Growth Score evaluates a company's future earnings and financial health to find sustainable growth opportunities [3] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [3] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [4] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [6][7] - Stocks with lower ranks, even with high Style Scores, may still face downward price pressure due to negative earnings forecasts [6] Company Spotlight: Emerson Electric (EMR) - Emerson Electric Co. is a diversified global engineering and technology company with a wide range of products and services across various markets [8] - EMR holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [8] - The company has a Value Style Score of B, supported by a forward P/E ratio of 18.26, making it attractive for value investors [8] - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate to $5.48 per share, with an average earnings surprise of 6.3% [8][9] - With a strong Zacks Rank and favorable Style Scores, EMR is recommended for investors' consideration [9]
Here's Why Emerson Electric (EMR) is a Strong Value Stock