Here's Why American Equity Investment (AEL) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential for market outperformance over the next 30 days [1] Zacks Style Scores - Value Score: Focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [2] - Growth Score: Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [2] - Momentum Score: Targets stocks experiencing upward or downward trends, utilizing factors like price changes and earnings estimate revisions [2] - VGM Score: A composite score that combines Value, Growth, and Momentum Scores to identify stocks with the best overall characteristics [3] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [4] - Stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4] - The model categorizes over 800 stocks, making it essential for investors to filter based on their specific goals [4] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [5] - Stocks with lower ranks, even if they have good Style Scores, may still face downward price pressure due to negative earnings outlooks [5] Company Spotlight: American Equity Investment (AEL) - American Equity Investment Life Insurance Company specializes in fixed index and fixed rate annuity products [6] - AEL currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [6] - The company has seen a 0.4% increase in shares over the past four weeks, with positive earnings estimate revisions for fiscal 2023 [6][7]