While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are complementary 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 [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales to find attractive investment opportunities [4] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to identify sustainable growth stocks [5] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings outlook, utilizing metrics like weekly price changes and monthly earnings estimate changes [6] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating that highlights stocks with the best overall potential [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] Stock Highlight: Ameriprise Financial Services (AMP) - Ameriprise Financial, headquartered in Minneapolis, has total assets under management of $1.58 trillion as of June 30, 2025, and holds a Zacks Rank of 2 (Buy) with a VGM Score of A [12] - The company is projected to experience year-over-year earnings growth of 11.4% for the current fiscal year, supported by positive earnings estimate revisions and an average earnings surprise of +3.4% [13]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AppFolio (APPF), and highlights the disparity between brokerage ratings and actual stock performance, suggesting that investors should validate these recommendations with other analytical tools like the Zacks Rank [1][5][10]. Brokerage Recommendations for AppFolio - AppFolio has an average brokerage recommendation (ABR) of 1.43, indicating a consensus between Strong Buy and Buy, with 71.4% of recommendations being Strong Buy and 14.3% being Buy [2][4]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric due to the historical ineffectiveness of brokerage recommendations in predicting stock price increases [5][10]. Analyst Bias and Its Implications - Brokerage analysts tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell, which misaligns their interests with those of retail investors [6][7][10]. - This bias suggests that brokerage recommendations may not provide reliable insights into future stock price movements, emphasizing the need for investors to conduct their own analyses [7][10]. Zacks Rank as an Alternative Tool - The Zacks Rank, which classifies stocks based on earnings estimate revisions, is presented as a more reliable indicator of near-term price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, making it a timely tool for predicting stock price movements [12]. Current Earnings Estimates for AppFolio - The Zacks Consensus Estimate for AppFolio has declined by 8.5% over the past month to $5.12, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for AppFolio, suggesting that the positive ABR should be viewed with caution [14].

Core Viewpoint - Sumitomo Corp. (SSUMY) is currently viewed as a better value opportunity compared to Federal Signal (FSS) based on various financial metrics and rankings [1][7]. Valuation Metrics - SSUMY has a forward P/E ratio of 9.00, significantly lower than FSS's forward P/E of 29.70 [5]. - The PEG ratio for SSUMY is 1.77, while FSS has a PEG ratio of 2.12, indicating that SSUMY is expected to grow earnings at a more favorable rate relative to its price [5]. - SSUMY's P/B ratio stands at 1.06, compared to FSS's P/B of 5.71, suggesting that SSUMY is more undervalued relative to its book value [6]. Earnings Outlook - SSUMY holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while FSS has a Zacks Rank of 3 (Hold) [3]. - The solid earnings outlook for SSUMY contributes to its superior valuation compared to FSS [7]. Value Grades - SSUMY has been assigned a Value grade of A, whereas FSS has received a Value grade of D, further supporting the conclusion that SSUMY is the more attractive investment option [6].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Cash Flow [4] - The Growth Score assesses a company's future prospects through projected earnings and sales growth [5] - The Momentum Score identifies optimal entry points based on price trends and earnings estimate changes [6] Integration with Zacks Rank - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should prioritize 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: Warner Bros. Discovery (WBD) - Warner Bros. Discovery emerged from the merger of AT&T's WarnerMedia and Discovery, trading under the symbol WBD since April 11, 2022 [11] - WBD holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of A, having increased 62.1% in the past four weeks [11] - Recent upward revisions in earnings estimates for fiscal 2025 have raised the Zacks Consensus Estimate by $0.38 to $0.34 per share, with an average earnings surprise of +3.8% [12]

Group 1 - Sumitomo Corp. (SSUMY) and Federal Signal (FSS) are both stocks in the Diversified Operations sector that present value opportunities for investors [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3][6] - Value investors utilize various traditional metrics to identify undervalued companies, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - SSUMY has a forward P/E ratio of 8.92, while FSS has a forward P/E of 31.35, suggesting SSUMY is more attractively valued [5] - SSUMY's PEG ratio is 1.88, compared to FSS's PEG ratio of 2.24, indicating SSUMY's expected EPS growth is more favorable [5] - SSUMY has a P/B ratio of 1.11, significantly lower than FSS's P/B of 6.02, further supporting SSUMY's superior valuation [6] Group 3 - Based on the valuation metrics, SSUMY is considered the superior value option compared to FSS [7]

Group 1 - Grocery Outlet Holding Corp. (GO) has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Church & Dwight (CHD), which has a Zacks Rank of 3 (Hold) [3] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share, to assess whether a company is undervalued [4] - GO has a forward P/E ratio of 22.87, while CHD has a forward P/E of 27.22, suggesting that GO may be a more attractive investment based on this metric [5] Group 2 - GO's PEG ratio is 3.15, compared to CHD's PEG ratio of 3.90, indicating that GO may offer better value when considering expected earnings growth [5] - GO has a P/B ratio of 1.47, significantly lower than CHD's P/B of 5.24, further supporting the argument that GO is undervalued [6] - Based on the valuation metrics and improving earnings outlook, GO is considered the superior value option at this time [7]

Core Insights - The article compares two companies, Epam (EPAM) and CoStar Group (CSGP), to determine which stock is more undervalued for investors in the Computers - IT Services sector [1] Valuation Metrics - EPAM has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CSGP, which has a Zacks Rank of 4 (Sell) [3] - EPAM's forward P/E ratio is 13.84, significantly lower than CSGP's forward P/E of 100.94, suggesting EPAM is more attractively priced [5] - The PEG ratio for EPAM is 1.75, while CSGP's PEG ratio is 2.37, indicating that EPAM's valuation is more favorable when considering expected earnings growth [5] - EPAM's P/B ratio is 2.36, compared to CSGP's P/B of 4.25, further supporting the argument that EPAM is undervalued [6] Investment Conclusion - Based on the stronger estimate revision activity and more attractive valuation metrics, EPAM is positioned as the superior option for value investors at this time [7]

Core Viewpoint - Investors are evaluating Leidos (LDOS) and ServiceNow (NOW) for potential undervalued stock opportunities, with LDOS currently appearing as the more favorable option based on various valuation metrics [1][7]. Valuation Metrics - LDOS has a forward P/E ratio of 16.12, significantly lower than NOW's forward P/E of 50.67, indicating that LDOS may be undervalued relative to its earnings potential [5]. - The PEG ratio for LDOS is 2.10, while NOW's PEG ratio is slightly higher at 2.13, suggesting that LDOS offers a better balance between price and expected earnings growth [5]. - LDOS has a P/B ratio of 4.86 compared to NOW's P/B of 16.19, further supporting the argument that LDOS is more attractively valued [6]. Zacks Rank and Value Grades - LDOS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent estimate revisions, while NOW has a Zacks Rank of 3 (Hold) [3]. - In terms of value grades, LDOS has a Value grade of B, whereas NOW has a Value grade of F, highlighting LDOS's stronger position in terms of value investing metrics [6]. Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, LDOS is positioned as the superior choice for value investors compared to NOW [7].

Core Insights - Bunzl PLC (BZLFY) currently presents a better value opportunity compared to Mondelez (MDLZ) based on various financial metrics and rankings [1][3][7] Valuation Metrics - Bunzl PLC has a forward P/E ratio of 12.78, significantly lower than Mondelez's forward P/E of 20.59, indicating that Bunzl may be undervalued [5] - The PEG ratio for Bunzl is 1.18, while Mondelez has a PEG ratio of 4.72, suggesting that Bunzl offers better growth potential relative to its price [5] - Bunzl's P/B ratio stands at 2.83 compared to Mondelez's P/B of 3.08, further supporting the argument that Bunzl is more attractively valued [6] Earnings Estimates - Bunzl holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while Mondelez has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3][7] - The stronger estimate revision activity for Bunzl indicates an improving earnings outlook compared to Mondelez [7]