Here's Why PetMed (PETS) is a Strong Momentum Stock

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify stocks likely to outperform in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on finding undervalued stocks [3] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using metrics like one-week price change and monthly earnings estimate changes [4] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [5] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential upside [8] - Stocks with lower ranks, even with high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [9] Company Spotlight: PetMed Express - PetMed Express, operating as 1-800-PetMeds, is a leading pet pharmacy with a product line of approximately 750 SKUs for various pets [10] - The company holds a 1 (Strong Buy) Zacks Rank and a VGM Score of B, indicating strong investment potential [10] - PetMed Express has a Momentum Style Score of B, with shares increasing by 22.1% over the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [11]