Here's Why Xylem (XYL) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics [3][4][5][6][7] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each with specific criteria for evaluation [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score identifies stocks with favorable price trends and earnings outlooks [6] - VGM Score combines all three styles to provide a comprehensive rating for stocks [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Example: Xylem Inc. (XYL) - Xylem Inc. is a leading provider of water solutions globally, involved in the entire water process cycle [12] - Currently rated 3 (Hold) with a VGM Score of B, XYL has a Momentum Style Score of A and has seen a 7.5% increase in shares over the past four weeks [12][13] - Recent upward revisions in earnings estimates indicate a positive outlook, with the Zacks Consensus Estimate rising to $4.69 per share [13]