Here's Why SM Energy (SM) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] 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 a better chance of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks experiencing upward or downward trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, helping investors find stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist in portfolio creation [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 Selection Strategy - For optimal returns, investors should consider stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [9] Company Spotlight: SM Energy - SM Energy, based in Denver, CO, is an independent oil and gas company engaged in the exploration and production of natural gas and crude oil in North America [11] - The company holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of A [11] - SM Energy's Momentum Style Score is B, with a 1% increase in shares over the past four weeks and an upward revision of earnings estimates by five analysts for fiscal 2024 [12]