Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The service aims to help investors become more confident and informed in their investment decisions [1] Group 2: Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 3: Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Group 4: Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth potential [4] Group 5: Momentum Score - The Momentum Score focuses on stocks experiencing upward or downward trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify favorable investment opportunities [5] Group 6: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies, highlighting stocks with strong value, growth, and momentum [6] Group 7: Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] Group 8: Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also possess Style Scores of A or B to maximize potential success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (4 or 5) may still have high Style Scores but are likely to decline in value [10] Group 9: Company Spotlight - Stanley Black & Decker - Stanley Black & Decker (SWK) is currently rated 3 (Hold) with a VGM Score of A, indicating potential for momentum investors [11] - The company has seen a 4.7% increase in shares over the past four weeks, with four analysts raising earnings estimates for fiscal 2025, leading to a Zacks Consensus Estimate increase of $0.20 to $4.59 per share [12] - SWK has an average earnings surprise of +57.3%, making it a noteworthy option for investors [12]
Why Stanley Black & Decker (SWK) is a Top Momentum Stock for the Long-Term