Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, aiding investors in selecting stocks likely to outperform the market in the short term [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 performance potential [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 ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings outlook, utilizing short-term price changes and earnings estimate adjustments [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [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: Travelers Companies Inc. (TRV) - Travelers is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A, indicating strong potential [11] - The company is projected to have a year-over-year earnings growth of 6.1% for the current fiscal year, with upward revisions from analysts [12] - The Zacks Consensus Estimate for TRV's earnings has increased by $1.12 to $22.90 per share, with an average earnings surprise of +89.3% [12]
Travelers (TRV) is a Top-Ranked Growth Stock: Should You Buy?