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Why Plains All American Pipeline (PAA) is a Top Momentum Stock for the Long-Term
ZACKS· 2026-01-21 15:50
Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market confidence and investment strategies [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] - The Growth Score assesses a company's financial health and future outlook through projected earnings, sales, and cash flow [5] - The Momentum Score identifies stocks benefiting from upward or downward trends in price or earnings estimates [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Company Spotlight: Plains All American Pipeline (PAA) - Plains All American Pipeline, L.P. is a master limited partnership involved in the transportation and marketing of crude oil and natural gas across the U.S. and Canada [12] - PAA holds a Zacks Rank of 2 (Buy) and a VGM Score of A, with a Momentum Style Score of B, reflecting a 7.1% increase in shares over the past four weeks [13] - Recent analyst revisions have positively impacted PAA's earnings estimates for fiscal 2025, with the Zacks Consensus Estimate rising by $0.07 to $1.53 per share, and an average earnings surprise of +4.2% [13][14]
Valvoline Closes Breeze Autocare Deal, Boosts Growth Strategy
ZACKS· 2025-12-03 14:06
Core Insights - Valvoline Inc. has completed the acquisition of Breeze Autocare for approximately $625 million, enhancing its preventive maintenance network and expanding its North American footprint to over 2,200 locations [1][2][9] - The acquisition aligns with Valvoline's strategy to accelerate growth through high-quality acquisitions and is expected to be EPS-neutral in the first year but accretive over time [3][4] Acquisition Details - The deal was announced in February 2025 and reflects a 10.7x multiple on Breeze Autocare's adjusted EBITDA [4] - Valvoline plans to fund the acquisition through a new Term Loan B and aims for a net leverage ratio of 2.5x–3.5x within 24 months [4][5] Strategic Implications - The addition of Breeze Autocare strengthens Valvoline's service capabilities and customer reach, particularly enhancing its 15-minute oil change model [3][5] - This acquisition supports Valvoline's long-term growth plans and aims to deliver consistent and efficient automotive maintenance services across North America [5] Market Performance - Valvoline's shares have decreased by 22.4% over the last year, contrasting with a 12.5% rise in its industry [6]