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Why Sensata (ST) is a Top Growth Stock for the Long-Term
ZACKS· 2026-02-24 15:46
Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] Growth Score - The Growth Style Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score assists investors in capitalizing on price trends, utilizing factors such as one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that assesses stocks based on value, growth, and momentum [6] 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 +23.86% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success, while stocks with a 3 rank should also have high Style Scores for better upside potential [9] Company Spotlight: Sensata Technologies - Sensata Technologies, a global industrial technology company, is currently rated 3 (Hold) on the Zacks Rank with a VGM Score of A [11] - The company is appealing to growth investors, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 6.7% for the current fiscal year [12] - Recent earnings estimates for fiscal 2026 have been revised upward, with the Zacks Consensus Estimate increasing by $0.02 to $3.65 per share, and an average earnings surprise of +4.7% [12]