Why Alcon (ALC) is a Top Growth Stock for the Long-Term

Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Group 1: Zacks Style Scores - 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 [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [3] - The Growth Score evaluates a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow to identify sustainable growth stocks [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, emphasizing the importance of following market trends [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator that highlights stocks with strong value, growth potential, and positive momentum [6] Group 2: Zacks Rank and Stock Selection - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% 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 their choices [8] - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 rank should also have high Style Scores to maximize upside potential [9] - Changes in a company's earnings outlook are crucial in stock selection, as stocks with lower ranks may still have high Style Scores but face downward price trends [10] Group 3: Company Spotlight - Alcon (ALC) - Alcon is a company specializing in eye care products, originally founded in 1945 and acquired by Novartis in 2011, currently holding a 2 (Buy) rating on the Zacks Rank with a VGM Score of B [11] - Alcon is particularly appealing to growth investors, with a Growth Style Score of B and a projected year-over-year earnings growth of 9.8% for the current fiscal year, alongside an upward revision in earnings estimates [12]