Core Insights - Zacks Premium provides various tools to help investors maximize stock market opportunities and invest confidently [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [3][4] - Each stock is assigned a rating from A to F, with A indicating the highest potential for outperforming the market [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors capitalize on upward or downward movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock Example: Verizon Communications (VZ) - Verizon Communications, formed through the merger of Bell Atlantic and GTE Corp, is a leading provider of communication services in North America [12] - Currently rated 3 (Hold) on the Zacks Rank, Verizon has a VGM Score of B and a Momentum Style Score of A, with a recent share price increase of 0.1% [13][14] - Analysts have revised earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $4.70 per share [13]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the next 30 days [2][3] - Each stock receives a rating 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 financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial strength and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, helping investors identify optimal buying opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [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 +25.41% 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 for the highest likelihood of success [9][10] Company Spotlight: Verizon Communications (VZ) - Verizon Communications, formed from the merger of Bell Atlantic and GTE Corp, is the largest wireless carrier in North America, providing various communication services [11] - Currently rated 3 (Hold) on the Zacks Rank, Verizon has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 4.4% over the past four weeks [12] - Analysts have recently revised Verizon's earnings estimate upwards for fiscal 2025, with the Zacks Consensus Estimate now at $4.69 per share, and the company has an average earnings surprise of 1.3% [12][13]

Core Viewpoint - AT&T has shown strong performance with a 24% stock increase in 2025, contrasting with a 3% decline in the S&P 500, indicating its stability amid market volatility [1] Group 1: Financial Performance - For the full year ended December 31, AT&T's wireless service revenue grew by 3.5% year over year, driven by the addition of 1.4 million net postpaid subscribers and gradual price hikes [4] - Broadband services experienced a 7.2% annual revenue increase, with fiber revenues surging by 18% compared to 2023 [4] - AT&T anticipates further growth in 2025, setting a free cash flow target of at least $16 billion, an increase of $700 million from 2024 [6] Group 2: Strategic Initiatives - The company completed a significant restructuring by spinning off WarnerMedia in 2022, allowing a refocus on core telecom strengths, resulting in reduced debt and more durable cash flow [3] - Approximately 40% of AT&T's fiber customers also have a wireless plan, up from 35% in 2021, showcasing effective cross-selling and customer relationship deepening [5] Group 3: Shareholder Returns - AT&T maintains a quarterly dividend of $0.28 per share, yielding 3.9%, with an annualized payout ratio of about 55% of the 2025 EPS guidance of $1.97 to $2.07 [7] - The company has announced a $10 billion share repurchase plan, reaffirming its commitment to rewarding shareholders [7] Group 4: Market Position and Valuation - AT&T's stock is viewed as a defensive position in the current market, expected to be insulated from economic slowdowns due to the essential nature of its services [8] - The stock is trading at a forward P/E ratio of 13.3, significantly higher than last year's below 8, and compared to Verizon's 9.6, raising concerns about valuation sustainability [10]