Why PTC Inc. (PTC) is a Top Growth 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] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's financial health and future prospects through projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies stocks with upward or downward trends using price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and 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 +23.62% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] - For optimal returns, stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended, while 3 (Hold) stocks should also have A or B Scores for potential upside [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings outlooks [10] Company Spotlight: PTC Inc. - PTC Inc., based in Boston, MA, is a software provider specializing in digital technologies that enhance engineering, production, and maintenance processes [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, making it an attractive option for growth investors [11] - PTC is projected to achieve year-over-year earnings growth of 19.9% for the current fiscal year, with a recent upward revision in earnings estimates [12] - The Zacks Consensus Estimate for PTC's earnings has increased by $0.07 to $6.09 per share, and the company has an average earnings surprise of +14.6% [12]