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GoDaddy (GDDY) is a Top-Ranked Value Stock: Should You Buy?
ZACKS· 2026-03-17 14:41
Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, 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 characteristics [2] - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, emphasizing the importance of market trends [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - 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 [9] - Stocks with lower ranks, even if they have high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: GoDaddy (GDDY) - GoDaddy serves 21 million customers, including independents and corporate domain portfolio owners, and currently holds a Zacks Rank of 3 (Hold) with a VGM Score of A [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 11.25, making it attractive for value investors [11] - For fiscal 2026, three analysts have raised their earnings estimates, with the Zacks Consensus Estimate increasing by $0.19 to $7.30 per share, and GoDaddy has an average earnings surprise of +3.5% [12]
Here's Why GoDaddy (GDDY) is a Strong Value Stock
ZACKS· 2026-02-25 15:41
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][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, indicating optimal times to invest in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] Stock Highlight: GoDaddy (GDDY) - GoDaddy serves 21 million customers and holds a Zacks Rank of 2 (Buy) with a VGM Score of A, indicating strong investment potential [11] - The company has a forward P/E ratio of 12.98, making it attractive for value investors [11] - An upward revision in earnings estimates for fiscal 2026 has increased the Zacks Consensus Estimate to $7.11 per share, with an average earnings surprise of +3.5% [12]