Why Cisco Systems (CSCO) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium offers various tools to enhance stock market investment confidence and knowledge [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] Growth Score - The Growth Style Score assesses a company's financial health and future outlook based on projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, growth potential, and positive momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [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 [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [10][11] Company Spotlight: Cisco Systems (CSCO) - Cisco is expanding in the network security sector, offering products and services to protect against unauthorized access and malware [12] - CSCO holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B and a Momentum Style Score of A, having increased 9.4% in the past four weeks [13] - Recent earnings estimates for fiscal 2026 have been revised upward, with the Zacks Consensus Estimate now at $4.05 per share, and an average earnings surprise of +3.2% [13][14]