Why Verisk Analytics (VRSK) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides various 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 within a 30-day timeframe [2] 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 [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection [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] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [9] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [10] - A stock with a lower rank, even with high Style Scores, may still face downward price pressure due to a negative earnings outlook [11] Company Spotlight: Verisk Analytics (VRSK) - Verisk Analytics is a leading data analytics provider serving various sectors, including insurance and energy, operating in 30 countries [12] - VRSK holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, indicating solid performance potential [13] - The company is projected to achieve year-over-year earnings growth of 6.2% for the current fiscal year, with upward revisions in earnings estimates [13] - With strong Growth and VGM Style Scores, VRSK is recommended for investors' consideration [14]