Why PRA Group (PRAA) 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 complement the Zacks Rank, aiding investors in selecting stocks likely 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 indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5] Value Score - The Value Score identifies undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3] Growth Score - The Growth Score assesses a company's future earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing metrics like weekly price changes and monthly earnings estimate shifts [4] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [5] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [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 - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - Stocks with lower ranks but high Style Scores may still present risks due to downward earnings forecasts [9] Company Spotlight: PRA Group - PRA Group, Inc. is a global financial services company with a current Zacks Rank of 3 (Hold) and a VGM Score of B [10] - The company has a Momentum Style Score of A, with shares increasing by 16.9% over the past four weeks [10] - For fiscal 2024, PRA Group's earnings estimate has risen by $0.58 to $1.71 per share, with an impressive average earnings surprise of 305.3% [11]