Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [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 - Evaluates a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks experiencing upward or downward trends in price or earnings, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for investors seeking attractive value, 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 achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to utilize Style Scores for better stock selection [8] Stock Recommendation: Pure Storage (PSTG) - PSTG is rated 3 (Hold) with a VGM Score of B and a Growth Style Score of B, indicating potential for growth investors [11] - The company forecasts a year-over-year earnings growth of 16.6% for the current fiscal year [11] - Nine analysts have raised earnings estimates for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.17 to $1.97 per share, and an average earnings surprise of +12.4% [12]
Pure Storage (PSTG) is a Top-Ranked Growth Stock: Should You Buy?