Yelp (YELP) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of 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 looking for undervalued stocks, utilizing financial ratios like P/E, PEG, and Price/Sales to identify attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's future earnings potential and financial health, analyzing historical and projected earnings, sales, and cash flow [4] Momentum Score - The Momentum Score is designed for traders who capitalize on price trends, using metrics like short-term price changes and earnings estimate revisions to identify high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that helps investors find stocks with the best value, growth prospects, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment success [9] Stock Highlight: Yelp (YELP) - Yelp, based in San Francisco, is rated 3 (Hold) on the Zacks Rank and has a VGM Score of A, indicating potential for growth [11] - The company is projected to achieve year-over-year earnings growth of 13.3% for the current fiscal year, with a recent upward revision in earnings estimates [12] - Yelp's average earnings surprise stands at +26.8%, making it a noteworthy option for growth investors [12]