Bandwidth (BAND) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select 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 [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines all three styles, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [9] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [10][11] Company Spotlight: Bandwidth - Bandwidth, founded in 2000 and based in Raleigh, NC, is a Communications Platform-as-a-Service (CPaaS) provider, specializing in voice and messaging services with a Tier 1 network [12] - Bandwidth holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth, with an expected year-over-year earnings growth of 18.7% for the current fiscal year [13] - The company has seen positive revisions in earnings estimates, with the Zacks Consensus Estimate increasing to $1.59 per share, alongside an average earnings surprise of +16.7% [13][14]