Yelp(YELP) ZACKS·2024-12-02 20:26Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their investment strategies, including daily updates, research reports, and stock screening tools [1][2]. Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, assisting investors in selecting stocks with the potential to outperform the market in the short term [3][4]. - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4]. Categories of Style Scores - Value Score: Focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Cash Flow [5]. - Growth Score: Evaluates a company's financial health and future growth potential based on earnings and sales projections [6]. - Momentum Score: Assesses trends in stock price and earnings estimates to identify optimal buying opportunities [7]. - VGM Score: A composite score that combines Value, Growth, and Momentum Scores, providing a comprehensive assessment of a stock's attractiveness [8]. Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building [9]. - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10]. - 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 [12]. Stock Highlight: Yelp (YELP) - Yelp, founded in 2004, operates as an online community providing information on various services [15]. - Yelp holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong investment potential [16]. - The company has a forward P/E ratio of 21.19, making it attractive to value investors, and has seen upward revisions in earnings estimates, with a consensus estimate of $1.80 per share for fiscal 2024 [16].