Economic Overview - The U.S. inflation rate has reached 3% in September, the highest level since January, with consumer prices rising by 0.3% in that month, up from an annual rate of 2.9% [1][9]. Investment Opportunities - Amid rising inflation, dividend growth stocks present a favorable investment option as their increasing payouts can help maintain purchasing power [2][9]. - Companies with a strong history of dividend growth tend to have robust financial health, providing a defensive hedge against economic uncertainty [4][5]. Selected Dividend Growth Stocks - Five dividend growth stocks identified as solid investment choices include: - **Vertiv (VRT)**: Expected revenue growth of 27.5% for 2025, long-term earnings growth rate of 30%, and an annual dividend yield of 0.08% [10][11]. - **Taiwan Semiconductor (TSM)**: Projected revenue growth of 33.8% for 2025, long-term earnings growth rate of 29.2%, and an annual dividend yield of 0.88% [11]. - **Oracle (ORCL)**: Anticipated revenue growth of 16.5% for fiscal 2026, long-term earnings growth rate of 17.2%, and an annual dividend yield of 0.71% [12]. - **Lam Research (LRCX)**: Expected revenue growth of 11.9% for fiscal 2026, long-term earnings growth rate of 19.6%, and an annual dividend yield of 0.69% [13]. - **Elbit Systems (ESLT)**: Projected revenue growth of 16.4% for 2025, long-term earnings growth rate of 23.3%, and an annual dividend yield of 0.51% [14]. Investment Criteria - Stocks selected for their strong fundamentals include criteria such as: - Positive 5-Year Historical Dividend Growth, Sales Growth, and EPS Growth [6][7]. - Price/Cash Flow ratio less than the industry average, indicating undervaluation [8]. - 52-Week Price Change greater than the S&P 500, ensuring better performance over the past year [8].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's future potential through projected earnings and sales growth [5] - The Momentum Score identifies stocks with favorable price trends, utilizing recent price changes and earnings estimate shifts [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum characteristics [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding in portfolio construction [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to identify the best opportunities [10] Stock Example: Oracle Corporation - Oracle Corporation (ORCL) is a major provider of enterprise-grade software and currently holds a 3 (Hold) rating with a VGM Score of B [12] - The stock has a Momentum Style Score of A, with a notable 25.4% increase in share price over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2026 have led to a consensus estimate increase of $0.04 to $6.77 per share, with an average earnings surprise of +0.6% [13]