Why GSK (GSK) is a Top Growth Stock for the Long-Term

Core Insights - The article discusses the Zacks Premium service, which provides tools and resources for investors to make informed decisions in the stock market [1] - It highlights the Zacks Style Scores, which are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Zacks Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - The Value Score identifies undervalued stocks based on financial ratios [3] - The Growth Score assesses a company's financial health and future growth potential [4] - The Momentum Score capitalizes on stock price trends and earnings outlook [5] - The VGM Score combines all three styles to provide a comprehensive evaluation of stocks [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [7] - The Style Scores complement the Zacks Rank by helping investors narrow down their choices among a large number of top-rated stocks [8] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even if they have good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [10] Company Spotlight: GSK - GSK operates in three segments: Specialty Medicines, Vaccines, and General Medicines, categorized as commercial operations [11] - Currently rated 3 (Hold) on the Zacks Rank, GSK has a VGM Score of A and a Growth Style Score of B, indicating potential for growth [11][12] - The company is forecasted to achieve year-over-year earnings growth of 8.2% for the current fiscal year, with upward revisions in earnings estimates from analysts [12]