Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth 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 Score assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [9] Stock Example: TD SYNNEX - TD SYNNEX, a business process services company, holds a 3 (Hold) Zacks Rank and a VGM Score of B [12] - The company has a Value Style Score of A, with a forward P/E ratio of 11.02, indicating attractive valuation metrics [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate at $12.70 per share and an average earnings surprise of 1.7% [13]
Here's Why TD SYNNEX (SNX) is a Strong Value Stock