Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, helping value investors find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's financial health and future potential by examining projected and historical earnings, sales, and cash flow, targeting stocks with sustainable growth [4] Momentum Score - The Momentum Score focuses on price trends and earnings outlook, helping investors identify optimal times to invest based on recent price changes and earnings estimate adjustments [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum, assisting investors in narrowing down their choices [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, 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 returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring a higher probability of success [9] Stock Highlight: Universal Health Services (UHS) - Universal Health Services Inc. is rated 1 (Strong Buy) on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [11] - The company is projected to achieve year-over-year earnings growth of 14% for the current fiscal year, supported by positive earnings estimate revisions and a consensus estimate increase of $1.25 to $18.94 per share [12]
Here's Why Universal Health Services (UHS) is a Strong Growth Stock