Why Guidewire Software (GWRE) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Aims to capitalize on price trends by evaluating short-term price changes and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] Company Spotlight: Guidewire Software - Guidewire Software, based in San Mateo, CA, offers software solutions for property and casualty insurers, integrating core operations, digital engagement, analytics, and AI [11] - Currently rated 3 (Hold) on the Zacks Rank, Guidewire has a VGM Score of B and a Growth Style Score of A, with a projected year-over-year earnings growth of 9.1% for the current fiscal year [12] - The Zacks Consensus Estimate for Guidewire's earnings has increased by $0.14 to $2.89 per share, with an average earnings surprise of +42.1% [12][13]