Why CVS Health (CVS) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - 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 [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for better selection [9] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks, even if they have good Style Scores, may still carry risks due to negative earnings outlooks [11] Company Spotlight: CVS Health - CVS Health Corporation, a pharmacy innovation company, is currently rated 3 (Hold) with a VGM Score of A [12] - The company has a Momentum Style Score of B, with shares increasing by 6.2% over the past month [13] - Recent upward revisions in earnings estimates indicate a positive outlook, with the Zacks Consensus Estimate rising by $0.22 to $6.34 per share [13]