Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [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 - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [7] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still face downward price pressure due to negative earnings forecasts [10] Company Spotlight: Blackbaud Inc. - Blackbaud Inc. is a leading cloud software company focused on social causes, offering a range of software solutions for fundraising, marketing, CRM, and financial management [11] - Blackbaud holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong growth potential [12] - The company is projected to achieve year-over-year earnings growth of 8.4% for the current fiscal year, with upward revisions in earnings estimates [12][13]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, helping value investors find attractive investment opportunities [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential by analyzing 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 short-term price changes and earnings estimate revisions to identify high-momentum stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating that helps investors identify stocks with the best overall potential [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7][8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring a higher probability of success [9] Stock Highlight: Qorvo Inc. - Qorvo Inc. is recognized for its core technologies and RF solutions across various sectors, currently holding a 3 (Hold) Zacks Rank and a VGM Score of A [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 12.51, making it appealing to value investors [11] - Recent analyst revisions have positively impacted Qorvo's earnings estimates, with a consensus estimate increase of $0.47 to $6.53 per share and an average earnings surprise of +33.1% [12]

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Cognizant (CTSH) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly desirable [4] - Cognizant's projected EPS growth for this year is 10.6%, surpassing the industry average of 10.2% [5] Group 3: Asset Utilization - The asset utilization ratio indicates how efficiently a company generates sales from its assets [6] - Cognizant's S/TA ratio is 1.04, outperforming the industry average of 0.93, indicating higher efficiency [6] Group 4: Sales Growth - Sales growth is another important metric, with Cognizant expected to achieve a 6.7% sales growth this year, compared to the industry average of 5.6% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with stock price movements [8] - Cognizant has seen a 1.8% upward revision in current-year earnings estimates over the past month [9] Group 6: Overall Positioning - Cognizant has a Growth Score of B and a Zacks Rank 2, positioning it well for potential outperformance in the growth investing space [11]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores ...

Core Insights - The article emphasizes the importance of identifying growth stocks that exhibit above-average financial growth, which can lead to solid returns for investors [1][2] Company Overview: Arcosa (ACA) - Arcosa is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 12.9%, but projected EPS growth for the current year is significantly higher at 41.6%, compared to the industry average of 7.4% [4] Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [3] - Arcosa's projected EPS growth of 41.6% this year positions it well above industry standards [4] Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [5] - Arcosa's year-over-year cash flow growth is currently at 8%, surpassing the industry average of 3.4% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 11.3%, compared to the industry average of 10.1% [6] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [7] - Arcosa's current-year earnings estimates have been revised upward, with a 9.6% increase in the Zacks Consensus Estimate over the past month [8] Conclusion - Arcosa holds a Zacks Rank of 2 and a Growth Score of B, indicating strong potential for outperformance in the growth stock category [10]

Core Insights - The Vanguard Growth ETF (VUG) has consistently outperformed the market since its inception in January 2004, with an increase of 875% compared to the S&P 500's 482% [6] - The ETF is heavily weighted towards technology, with 62.1% of its holdings in tech companies, primarily due to its market cap-weighted structure [3][4] - The "Magnificent Seven" tech stocks—NVIDIA, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla—are significant contributors to the ETF's performance, accounting for a substantial portion of its holdings [2][4] ETF Composition - The Vanguard Growth ETF includes a diverse range of sectors, with the top five sectors being technology (62.1%), consumer discretionary (18.2%), industrials (8.2%), healthcare (5%), and financials (2.9%) [5] - The "Magnificent Seven" stocks represent the following percentages of the ETF: NVIDIA (12.01%), Microsoft (10.70%), Apple (10.47%), Alphabet (6.77%), Amazon (5.55%), Meta Platforms (4.22%), and Tesla (3.70%) [4] Performance Metrics - Over the past decade, VUG has averaged annual returns of 16.4%, outperforming the S&P 500's 12.8% [6] - The ETF has a low expense ratio of 0.04%, which is one of the lowest in the industry, allowing investors to retain more of their gains over time [9] Investment Strategy - Investing in VUG provides exposure to high-growth tech companies while diversifying across other sectors, making it a strategic choice for investors [11] - The concentration in the "Magnificent Seven" stocks suggests that while VUG can be a core holding, it should be complemented with other investments to mitigate risk [11]

Core Insights - Robinhood has significantly transformed the discount brokerage industry by introducing free trading, compelling competitors to follow suit [2] - Visa has established itself as a leading payment processor, benefiting from the ongoing shift from cash to card payments, particularly driven by e-commerce growth [4] Company Overview: Robinhood - Robinhood is a relatively young discount brokerage, having gone public in mid-2021, and has only operated in a bull market, which may affect its resilience during market downturns [3] - The company has expanded its offerings beyond stock trading to include cryptocurrency trading and sports betting, aiming to attract more active investors [2] Company Overview: Visa - Visa has a long-standing presence in the market, having gone public in early 2008 during the Great Recession, and it processes card payments for consumers, earning fees for each transaction [4] - Over the past decade, Visa's revenue has grown at an annualized rate of 11%, with earnings increasing by 14% annually, making it attractive to growth investors [5] Valuation Comparison - Visa's current price-to-sales ratio is approximately 18.5, price-to-earnings ratio is 33, and price-to-book ratio is 17.5, with P/S and P/E ratios below their five-year averages [6] - Robinhood's price-to-sales ratio stands at 26.5, price-to-earnings ratio at 50.5, and price-to-book ratio nearly at 13, indicating that it is expensive relative to its own historical metrics [8] Investment Implications - Robinhood's high valuation suggests that investors are pricing in significant future growth, despite the company's lack of experience in bear markets [9] - Visa, while appearing expensive on an absolute basis, is reasonably priced relative to its historical valuation, making it a more stable investment choice compared to Robinhood [12]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Northrim BanCorp (NRIM) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Northrim's historical EPS growth rate stands at 5.1%, but projected EPS growth for this year is expected to be 51.1%, significantly surpassing the industry average of 10.8% [4]. Group 2: Cash Flow Growth - Northrim exhibits a year-over-year cash flow growth of 40.3%, which is notably higher than the industry average of -11.3% [5]. - The company's annualized cash flow growth rate over the past 3-5 years is 10.6%, compared to the industry average of 4.1% [6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Northrim, with the Zacks Consensus Estimate for the current year increasing by 6.6% over the past month [7]. Group 4: Overall Assessment - Northrim has achieved a Zacks Rank of 1 (Strong Buy) and a Growth Score of B, indicating its potential as an outperformer and a solid choice for growth investors [9].

Core Viewpoint - The article emphasizes the importance of identifying growth stocks, particularly highlighting Alphabet (GOOGL) as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Alphabet has a historical EPS growth rate of 20.7%, with projected EPS growth of 30.5% for the current year, significantly surpassing the industry average of 10.3% [5][4]. Cash Flow Growth - The year-over-year cash flow growth for Alphabet stands at 34.6%, well above the industry average of -7.3%. The historical annualized cash flow growth rate over the past 3-5 years is 19.3%, compared to the industry average of 11.9% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Alphabet, with the Zacks Consensus Estimate for the current year increasing by 5.4% over the past month [8]. Overall Positioning - Alphabet holds a Growth Score of B and a Zacks Rank of 2, indicating strong potential for outperformance in the growth stock category [10].

Core Insights - The individual has a B.Tech degree in Mechanical Engineering and nearly twenty-five years of experience in the oil and gas sector, primarily in the Middle East [1] - The investment strategy is informed by a background in engineering, operations, and project management, emphasizing efficiency, carefulness, and discipline [1] - The focus on U.S. equity markets includes technology, energy, and healthcare sectors, with a shift from growth investing to a blend of value and growth strategies [1] Investment Philosophy - The approach involves understanding the underlying economics of businesses, evaluating competitive advantages, and assessing the ability to generate consistent free cash flow [1] - Emphasis on long-term holding of high-quality businesses to benefit from time and compounding effects, reflecting a moderately conservative orientation [1] - Recent rebalancing towards income-generating assets such as dividend-paying equities and REITs, prioritizing downside protection as retirement approaches [1] Community Engagement - The individual joined Seeking Alpha to contribute to and learn from a community of investors interested in real-world business fundamentals and intelligent investing [1] - A commitment to investing in ecologically sensitive businesses is highlighted as a fundamental value [1]