Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores 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 [3][4][5][6] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score evaluates trends in stock prices and earnings estimates to identify favorable buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 ranked stocks should also have high Style Scores to maximize upside potential [9][10] Company Spotlight: Bayer Aktiengesellschaft - Bayer AG, headquartered in Leverkusen, Germany, is rated 2 (Buy) on the Zacks Rank with a VGM Score of A and a Value Style Score of A, indicating strong valuation metrics [11] - The company has seen two analysts raise their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.10 to $1.43 per share and an average earnings surprise of +18.5% [12]
Bayer Aktiengesellschaft (BAYRY) is a Top-Ranked Value Stock: Should You Buy?