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Here's Why TopBuild (BLD) is a Strong Growth Stock
TopBuildTopBuild(US:BLD) zacks.comยท2024-05-17 14:46

Group 1: Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks with the best chances of outperforming the market over the next 30 days [2][3] - Each stock is rated from A to F, with A being the highest score, indicating a better chance of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three [3][4][5][6] Group 2: Value Score - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Group 3: Growth Score - The Growth Score emphasizes a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Group 4: Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings outlook changes, utilizing factors like one-week price change and monthly earnings estimate percentage change [5] Group 5: VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores to help investors find companies with the most attractive overall characteristics [6] Group 6: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Group 7: Stock Example - TopBuild Corp. (BLD) - TopBuild Corp. is an installer and distributor of insulation and building products in the U.S. construction industry, trading under the symbol "BLD" since July 1, 2015 [11] - BLD has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth [11] - The company is forecasted to have a year-over-year earnings growth of 9% for the current fiscal year, with upward revisions in earnings estimates from analysts [12]