Why Incyte (INCY) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [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 - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential through earnings, sales, and cash flow analysis [4] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings estimate changes to identify favorable investment opportunities [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down choices [8] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [10] Company Spotlight: Incyte Corporation - Incyte Corporation, based in Wilmington, DE, is a biopharmaceutical company focused on proprietary therapeutics [11] - Currently rated 3 (Hold) with a VGM Score of A and a Value Style Score of B, indicating attractive valuation metrics [12] - The company has seen upward revisions in earnings estimates, with a Zacks Consensus Estimate of $5.77 per share for fiscal 2025 and an average earnings surprise of +4.2% [12]