Here's Why Yelp (YELP) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - Stocks with higher Style Scores have a better chance of outperforming the market [3] Categories of Style Scores - Value Score: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [4] - Growth Score: Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [5] - Momentum Score: Utilizes price trends and earnings estimate changes to identify favorable times to invest in high-momentum stocks [6] - VGM Score: Combines the three Style Scores to identify stocks with the best value, growth forecasts, and momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, helps investors build successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +23.81% since 1988, outperforming the S&P 500 [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face downward price pressure due to negative earnings outlooks [11] Company Spotlight: Yelp (YELP) - Yelp, founded in 2004, operates as an online community providing information on various services, including restaurants and shopping [12] - Currently rated 3 (Hold) by Zacks, Yelp has a VGM Score of A and a Momentum Style Score of B, with shares up 6% in the past four weeks [12][13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.05 to $2.13 per share, and an average earnings surprise of +26.8% [13]