Why Xylem (XYL) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum, with higher scores indicating better performance potential [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score targets value investors by identifying stocks trading below their true value using various financial ratios [3] Growth Score - The Growth Score emphasizes a company's future prospects and financial health, analyzing earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assists traders in capitalizing on price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, has shown a strong historical performance, with 1 (Strong Buy) stocks yielding an average annual return of +23.81% 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 success [9] Stock Highlight: Xylem Inc. (XYL) - Xylem Inc. is a leading global provider of water solutions, involved in the entire water process cycle [11] - Xylem holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - The company has a Momentum Style Score of B, with shares increasing by 3% over the past four weeks, and upward revisions in earnings estimates for fiscal 2025 [12]