Why Commerce Bancshares (CBSH) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2][7] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates 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][6] Value Score - The Value Style Score identifies undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to find those with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, helping investors identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank and Performance - The Zacks Rank, based on earnings estimate revisions, has shown strong performance, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988, significantly outperforming the S&P 500 [8] 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 returns [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Commerce Bancshares (CBSH) - Commerce Bancshares Inc. is a major bank holding company in Missouri, with operations across several states [12] - CBSH holds a Zacks Rank of 3 (Hold) and a VGM Score of B, with a Momentum Style Score of A, indicating strong recent performance [12][13] - The stock has seen a 6.1% increase over the past four weeks, and analysts have revised earnings estimates upwards, suggesting positive momentum [13]