Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are complementary indicators that help investors select stocks likely to outperform the market in the short term [3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each assessing different investment characteristics [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score evaluates stocks based on their future earnings and financial health [5] - Momentum Score identifies trends in stock prices and earnings outlooks to guide investment timing [6] - VGM Score combines all three Style Scores to highlight stocks with the best overall potential [7] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.9% since 1988 [9] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [11] Company Spotlight: Theravance Biopharma (TBPH) - Theravance Biopharma is a biopharmaceutical company focused on respiratory medicines, formed from a split in 2014 [12] - TBPH currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A [12] - The company has a Momentum Style Score of B, with shares increasing by 10.7% over the past four weeks [13] - Recent upward revisions in earnings estimates indicate a positive outlook, with the Zacks Consensus Estimate rising by $0.01 to $0.24 per share [13] - TBPH has an average earnings surprise of +55.4%, making it a notable candidate for investors [13]
Why Theravance Biopharma (TBPH) is a Top Momentum Stock for the Long-Term