Why Vertex Pharmaceuticals (VRTX) is a Top Momentum Stock for the Long-Term

Core Viewpoint - The Zacks Style Scores provide a comprehensive framework for investors to evaluate stocks based on value, growth, and momentum, enhancing the effectiveness of the Zacks Rank in identifying high-potential investment opportunities [2][7]. Summary by Category Zacks Style Scores Overview - The Zacks Style Scores rate stocks using an alphabetic system from A to F, where A indicates the highest potential for 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 targets investors seeking undervalued stocks, utilizing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to identify attractive investment opportunities [3]. Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Score assists investors in capitalizing on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify favorable buying opportunities [5]. VGM Score - The VGM Score combines all three Style Scores, providing a holistic view of a stock's value, growth potential, and momentum, making it a robust indicator alongside the Zacks Rank [6]. Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7]. - There are over 800 stocks rated 1 or 2, and the Style Scores help investors narrow down their choices [8]. Stock Example: Vertex Pharmaceuticals - Vertex Pharmaceuticals, focused on developing drugs for serious diseases like cystic fibrosis, holds a 3 (Hold) rating with a VGM Score of B and a Momentum Style Score of B, having seen an 11.2% increase in share price over the past four weeks [11]. - The company's earnings estimate for fiscal 2025 has been revised upwards by nine analysts, increasing the Zacks Consensus Estimate by $0.44 to $18.30 per share, with an average earnings surprise of +2% [12].