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

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 - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings outlook, helping investors capitalize on upward or downward price movements [4] VGM Score - Combines the three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, growth potential, and positive momentum [5] Zacks Rank Integration - The Zacks Rank 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 [6][7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [8] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial; stocks with lower Zacks Ranks but high Style Scores may still face downward price pressure [9] Company Spotlight: Koninklijke Philips N.V. (PHG) - Koninklijke Philips N.V. is rated 2 (Buy) on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of B, indicating strong performance [10] - For fiscal 2024, the Zacks Consensus Estimate for PHG has increased by $0.03 to $1.59 per share, with an average earnings surprise of 53.7% [11]