Workflow
Here's Why SAIC (SAIC) is a Strong Growth Stock
SAICSAIC(US:SAIC) ZACKSยท2025-10-29 14:45

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, helping investors identify 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 financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [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 experiencing upward or downward trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - A large pool of stocks is available, making it essential to use Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: SAIC - SAIC is a leading IT and professional services provider to the U.S. government, currently holding a 3 (Hold) Zacks Rank and a VGM Score of A [11] - The company is projected to achieve year-over-year earnings growth of 4.8% for the current fiscal year, supported by a Growth Style Score of B [11] - Recent analyst revisions have increased the earnings estimate for fiscal 2026 by $0.40 to $9.57 per share, with an average earnings surprise of +25% [12]