Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum, assigning ratings from A to F, with A indicating the highest potential for outperformance [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score evaluates stocks based on projected earnings and sales growth, emphasizing future financial health [5] - Momentum Score identifies stocks benefiting from current price trends, utilizing recent price changes and earnings estimate shifts [6] - VGM Score combines the three Style Scores to highlight stocks with the best overall characteristics in value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks, even with high Style Scores, may still face price declines [10] Company Spotlight: Bread Financial Holdings - Bread Financial, a tech-forward financial services company, is part of the S&P MidCap 400 and offers personalized payment and lending solutions [11] - Currently rated 3 (Hold) by Zacks, Bread Financial has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 7.93 [12] - Recent upward revisions in earnings estimates indicate positive momentum, with the Zacks Consensus Estimate rising to $8.35 per share [12] - Given its solid Zacks Rank and favorable Style Scores, Bread Financial is recommended for investors' consideration [13]