Why Yum China Holdings (YUMC) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score [2][3][4] - Each stock is rated from A to F based on its value, growth, and momentum characteristics, with A being the highest rating [2] Value Score - The Value Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [3] Momentum Score - The Momentum Score assesses stocks based on recent price changes and earnings estimate trends to identify favorable buying opportunities [3] VGM Score - The VGM Score combines the three Style Scores to provide a comprehensive rating, helping investors find stocks with attractive value, growth, and momentum [4] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding 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 investment potential [6] Company Spotlight: Yum China Holdings (YUMC) - Yum China Holdings operates both company-owned and franchised restaurants and has a Zacks Rank of 3 (Hold) with a VGM Score of B [7] - The company has a Momentum Style Score of A, with shares increasing by 16.5% over the past four weeks [7] - Recent upward revisions in earnings estimates for fiscal 2024 have led to a consensus estimate increase of $0.01 to $2.19 per share, with an average earnings surprise of 40.7% [7]