Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and maximize their investment returns through its unique stock rating systems and Style Scores [1][5]. Summary by Category Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, with ratings ranging from A to F, where A indicates the highest potential for outperforming the market [2]. - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [2]. - The Growth Score assesses a company's financial health and future outlook through projected earnings, sales, and cash flow [2]. - The Momentum Score helps investors capitalize on price trends by analyzing recent price changes and earnings estimate revisions [3]. - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth, and momentum [4]. Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors to choose from [5]. Investment Strategy - To optimize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B, while stocks rated 3 (Hold) should also have favorable Style Scores to ensure potential upside [6]. - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to their declining earnings forecasts [6]. Company Spotlight: Booz Allen Hamilton (BAH) - Booz Allen Hamilton, based in McLean, VA, provides management and technology consulting, analytics, and cyber expertise to governments and corporations [7]. - BAH holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential for growth [7]. - The company has seen upward revisions in earnings estimates, with the Zacks Consensus Estimate increasing by $0.18 to $5.99 per share for fiscal 2025, and an average earnings surprise of 12.5% [7][8].
Here's Why Booz Allen Hamilton (BAH) is a Strong Momentum Stock