Why RLI Corp. (RLI) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks using an alphabetic system (A to F) based on value, growth, and momentum, helping investors identify stocks likely to outperform the market [2][3] - The Style Scores consist of four categories: 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 undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score assesses a company's future potential by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth potential, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][9] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 ranked stocks should also have high Style Scores to maximize upside potential [9][10] Company Spotlight: RLI Corp. - RLI Corp., a specialty property-casualty underwriter, holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a solid position in the market [11] - The company is projected to achieve a year-over-year earnings growth of 16.7% for the current fiscal year, with recent earnings estimates revised upward [12]