Why Pegasystems (PEGA) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [2][3] Zacks Style Scores - 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 using financial ratios like P/E and Price/Sales [3] - Growth Score assesses a company's financial health and future outlook based on earnings and sales projections [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [5] - VGM Score combines all three styles to provide a comprehensive rating, highlighting stocks with attractive value, growth potential, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988 [7][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [9][10] - Stocks with lower ranks, even with good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [10] Company Spotlight: Pegasystems (PEGA) - Pegasystems is an enterprise software provider specializing in AI-powered decision-making and workflow automation [11] - Currently rated 3 (Hold) with a VGM Score of B, PEGA has a strong Momentum Style Score of A and has seen a 5.9% increase in shares over the past four weeks [11] - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $0.13 to $1.98 per share, with an average earnings surprise of +66.7% [12]