Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their potential to outperform the market, with A being the highest score [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing short-term price changes and earnings estimate revisions [5] VGM Score - Combines all three Style Scores to provide a comprehensive assessment of stocks based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to identify stocks with high potential, with 1 (Strong Buy) stocks historically achieving an average annual return of +23.93% since 1988 [7] - A large number of stocks can have high Zacks Ranks, making Style Scores essential for narrowing down choices [8] Investment Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - The direction of earnings estimate revisions is crucial in stock selection, as lower-ranked stocks may still have high Style Scores but face declining forecasts [10] Company Spotlight: Sally Beauty Holdings, Inc. - Sally Beauty is a leading retailer and distributor of professional beauty supplies, operating 3,096 stores under the Sally Beauty Supply segment and 1,198 stores under the Beauty Systems Group segment [11] - The company has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential with an expected year-over-year earnings growth of 8.4% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of +10.3% position Sally Beauty as a strong candidate for growth investors [12][13]