Why Acuity Brands (AYI) is a Top Growth Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various research services [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [1] Zacks Style Scores Overview - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - The Growth Score assesses a company's financial health and future outlook based on earnings and sales projections [2] - The Momentum Score capitalizes on price trends and earnings estimate changes to identify favorable investment opportunities [3] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and momentum [4] Zacks Rank and Style Scores Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [6] Company Spotlight: Acuity Brands (AYI) - Acuity Brands, Inc. is a leading manufacturer of lighting fixtures and related components, focusing on energy efficiency and comfort [7] - AYI holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of A, indicating strong growth potential [7] - The company is projected to achieve a year-over-year earnings growth of 5.3% for the current fiscal year, supported by a Growth Style Score of A [8] - Recent analyst revisions have increased AYI's earnings estimate for fiscal 2024 by $1.40 to $14.79 per share, with an average earnings surprise of 13.9% [8]