Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][5] - The Zacks Style Scores categorize stocks into Value, Growth, Momentum, and a combined VGM Score, aiding investors in selecting stocks with high potential [2][3] Zacks Style Scores - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - Growth Score evaluates a company's future growth potential through earnings and sales projections [2] - Momentum Score assesses stocks based on price trends and earnings estimate changes to capitalize on market movements [2] - VGM Score combines all three styles to provide a comprehensive rating for stocks [3] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify stocks, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [4] - There are over 800 top-rated stocks available, making it essential for investors to choose wisely [4] Investment Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [5] - Stocks with lower ranks, even with good Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [5] Company Spotlight: Acuity Brands (AYI) - Acuity Brands, headquartered in Atlanta, GA, specializes in manufacturing lighting fixtures and energy-efficient systems [6] - AYI holds a 1 (Strong Buy) Zacks Rank and a VGM Score of B, indicating strong investment potential [6] - The company has a forward P/E ratio of 16.55 and has seen positive earnings estimate revisions, with the consensus estimate rising by $1.40 to $14.79 per share [6]
Here's Why Acuity Brands (AYI) is a Strong Value Stock