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 indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify companies with sustainable growth potential [4] Momentum Score - Targets stocks experiencing upward or downward trends in price or earnings, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines the three Style Scores to provide a comprehensive rating, helping investors find stocks with the best value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] Company Spotlight: Viavi Solutions Inc. - Viavi Solutions is a provider of network test and monitoring solutions, with a diverse product portfolio aimed at optimizing complex networks [11] - Currently rated 3 (Hold) on the Zacks Rank, Viavi has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 21.8% in the past four weeks [12] - Analysts have revised earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.02 to $0.40 per share, and an average earnings surprise of 7.5% [12]
Here's Why Viav Solutions (VIAV) is a Strong Momentum Stock