Semtech (SMTC) is a Top-Ranked Momentum Stock: Should You Buy?

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 [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [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 with upward or downward price trends, utilizing recent price changes and earnings estimate adjustments [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 assist in building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500 with an average annual return of +23.81% since 1988 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] - Stocks with lower ranks (4 or 5) should be avoided despite high Style Scores due to declining earnings forecasts [11] Company Spotlight: Semtech Corporation - Semtech Corporation, located in Camarillo, CA, specializes in analog and mixed-signal semiconductors [12] - Currently rated 3 (Hold) with a VGM Score of B and a Momentum Style Score of A, showing a 11.4% increase in shares over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2026 have increased the Zacks Consensus Estimate to $1.66 per share, with an average earnings surprise of +9% [13]