Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe [3] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using various financial ratios [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score capitalizes on existing price trends and earnings outlook [6] - VGM Score combines the strengths of all three Style Scores to identify the most attractive investment opportunities [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist in portfolio building [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 top-rated stocks available, making the selection process potentially overwhelming for investors [10] Investment Strategy Recommendations - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [11] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [11] - The direction of earnings estimate revisions is crucial when selecting stocks, as declining forecasts can negatively impact share prices [12] Company Spotlight: General Dynamics - General Dynamics Corporation, based in Falls Church, VA, operates in various sectors including information systems, combat vehicles, and shipbuilding [13] - The company holds a Zacks Rank of 3 (Hold) and has a VGM Score of B [13] - General Dynamics is projected to experience year-over-year earnings growth of 11.5% for the current fiscal year, with upward revisions from analysts [14] - The Zacks Consensus Estimate for fiscal 2025 has increased by $0.28 to $15.20 per share, with an average earnings surprise of +1.2% [14]
Here's Why General Dynamics (GD) is a Strong Growth Stock