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Here's Why Cirrus Logic (CRUS) is a Strong Momentum Stock
Cirrus LogicCirrus Logic(US:CRUS) ZACKS·2025-02-28 15:55

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [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 indicating better chances of outperforming [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] - The Momentum Score identifies stocks with upward or downward trends based on recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize investment success, it is recommended to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower Zacks Ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: Cirrus Logic - Cirrus Logic, a fabless semiconductor supplier based in Austin, TX, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a notable investment opportunity [11] - The company has a Momentum Style Score of B, with shares increasing by 3.1% over the past four weeks [11] - For fiscal 2025, Cirrus Logic's earnings estimate has been revised upwards by three analysts, with the Zacks Consensus Estimate rising by $0.61 to $7.02 per share, and an average earnings surprise of 50.1% [12]