Here's Why Pegasystems (PEGA) is a Strong Momentum Stock

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest 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 higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks using financial ratios like P/E, PEG, and Price/Sales, targeting undervalued stocks [3] Growth Score - The Growth Score assesses a company's financial health and future outlook, focusing on earnings, sales, and cash flow for sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize 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 evaluating stocks 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 +23.93% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings forecasts [11] Company Spotlight: Pegasystems (PEGA) - Pegasystems is an enterprise software provider focused on AI-driven decision-making and workflow automation, currently holding a 3 (Hold) Zacks Rank with a VGM Score of B [12] - The stock has shown a 13.7% increase over the past four weeks, with upward revisions in earnings estimates leading to a consensus estimate of $2.08 per share for fiscal 2025 [13] - Pegasystems has an average earnings surprise of +80.5%, making it a notable option for investors [13]