Here's Why Exact Sciences (EXAS) is a Strong Momentum Stock

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting 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 - Targets stocks experiencing upward or downward trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.81% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores for effective stock selection [8] Stock Selection Strategy - To maximize returns, investors should target stocks with Zacks Rank 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [10] Company Spotlight: Exact Sciences (EXAS) - Exact Sciences is focused on early cancer detection and prevention, with R&D in colorectal cancer screening, molecular residual disease testing, and multi-cancer screening [11] - EXAS holds a 1 (Strong Buy) Zacks Rank and a VGM Score of B, indicating strong investment potential [11] - The company has a Momentum Style Score of B, with shares increasing by 8.3% in the past four weeks and a positive earnings surprise average of +329.9% [12]