Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum qualities, with A indicating the highest potential for outperformance [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 - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing metrics like one-week price change and monthly earnings estimate changes [4] VGM Score - Combines all three Style Scores to identify stocks with the best value, growth forecasts, and momentum [5] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, which helps investors build 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 should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [8] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [9] Company Spotlight: BioMarin Pharmaceutical (BMRN) - BioMarin focuses on developing treatments for severe medical conditions, particularly in children, and currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [10] - The company has a forward P/E ratio of 20.18, indicating attractive valuation metrics for value investors [10] - Recent analyst revisions have increased the earnings estimate for fiscal 2024 to $3.27 per share, with an average earnings surprise of 28.7% [11]
Why BioMarin Pharmaceutical (BMRN) is a Top Value Stock for the Long-Term