Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their potential to outperform the market, 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 - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines the three Style Scores to identify stocks with the best overall value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] Stock Selection Strategy - For optimal returns, investors should consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still present risks due to declining earnings forecasts [11] Company Spotlight: Royal Caribbean (RCL) - Royal Caribbean is a cruise company with a Zacks Rank of 2 (Buy) and a VGM Score of A [12] - The company is projected to have a year-over-year earnings growth of 26.1% for the current fiscal year, supported by positive earnings estimate revisions [13]
Here's Why Royal Caribbean (RCL) is a Strong Growth Stock