Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence in investing [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 - 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 identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [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 leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making the selection process challenging for investors [9] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (3, 4, 5) should be approached cautiously, even if they have favorable Style Scores [11] Company Spotlight: Upbound Group - Upbound Group, Inc. is a leading lease-to-own provider operating in the U.S., Puerto Rico, and Mexico, offering flexible lease purchase agreements [12] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [13] - Upbound Group is projected to achieve year-over-year earnings growth of 8.6% for the current fiscal year, with upward revisions in earnings estimates from analysts [13][14]
Here's Why Upbound Group (UPBD) is a Strong Growth Stock