Waters (WAT) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores rate stocks on a scale from A to F based on value, growth, and momentum characteristics [4] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends by assessing one-week price changes and monthly earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [7] 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 +23.81% since 1988 [8] - The Style Scores complement the Zacks Rank, aiding in the selection of stocks with the highest success probability [9][10] Stock Example: Waters Corp. (WAT) - Waters Corp. is an analytical instrument manufacturer with a Zacks Rank of 3 (Hold) and a VGM Score of B [12] - The company is appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 10.5% for the current fiscal year [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.16 to $13.10 per share [13]