Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score is designed for traders who capitalize on price trends, utilizing factors like recent price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who prefer a multifaceted approach to stock selection [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock to Watch: Motorola Solutions, Inc. (MSI) - Motorola Solutions, Inc. is a leading communications equipment manufacturer with strong market positions in various sectors, including government communications and wireless infrastructure [11] - MSI holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of B, indicating potential for growth [12] - The company is forecasted to achieve a year-over-year earnings growth of 9% for the current fiscal year, with upward revisions in earnings estimates from analysts [12][13]
Why Motorola (MSI) is a Top Growth Stock for the Long-Term