Why Universal Technical Institute (UTI) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook based on projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks, even if they have high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Universal Technical Institute (UTI) - Universal Technical Institute is a leading provider of post-secondary education in the U.S., offering various programs in automotive and related fields [12] - UTI holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, indicating potential for growth [12][13] - Recent upward revisions in earnings estimates and a strong earnings surprise average of 39.4% make UTI a noteworthy consideration for investors [13]