Why Palomar (PLMR) is a Top Growth Stock for the Long-Term

Core Insights - The article emphasizes the importance of utilizing Zacks Premium services to enhance stock market investment strategies and confidence for both new and experienced investors [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies stocks with favorable price trends, utilizing short-term price changes and earnings estimate revisions [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [11] Company Spotlight: Palomar Holdings, Inc. - Palomar Holdings, Inc., founded in 2014 and headquartered in La Jolla, CA, operates as an insurance holding company [14] - Currently rated 3 (Hold) on the Zacks Rank, Palomar has a VGM Score of B and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 30.4% for the current fiscal year [15] - Recent analyst revisions have positively impacted earnings estimates, with the Zacks Consensus Estimate rising to $4.81 per share, alongside an average earnings surprise of 14.9% [15][16]