Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score emphasizes finding undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [6] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [11] Stock Highlight: Ciena Corporation - Ciena Corporation, a leading provider of optical networking equipment, holds a Zacks Rank of 2 (Buy) and a VGM Score of B [13] - The company has a forward P/E ratio of 36.43, indicating attractive valuation metrics for value investors [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate at $2.44 per share and an average earnings surprise of 34.2% [14]
Why Ciena (CIEN) is a Top Value Stock for the Long-Term