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PRA Group (PRAA) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKS· 2025-08-29 14:50
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [2] Zacks Style Scores - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Value Score identifies attractive stocks using financial ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking a balanced approach [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to identify the best options [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing investment potential [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: PRA Group - PRA Group, Inc. is a global financial and business services company with a Zacks Rank of 3 (Hold) and a VGM Score of A [11] - The company has a Momentum Style Score of A, with shares increasing by 11.5% over the past four weeks [11] - Recent analyst revisions have raised the earnings estimate for fiscal 2025 by $0.72 to $2.11 per share, with an average earnings surprise of +11.2% [12] - PRAA's solid Zacks Rank and strong Style Scores make it a noteworthy consideration for investors [12]
Here's Why PRA Group (PRAA) is a Strong Momentum Stock
ZACKS· 2025-08-13 14:51
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days ...