Here's Why Light & Wonder (LNW) is a Strong Momentum Stock

Zacks Style Scores Overview - Zacks Style Scores are complementary indicators that rate stocks based on three widely-followed investing methodologies: Value, Growth, and Momentum [17] - Each stock is given an alphabetic rating of A, B, C, D, or F based on their value, growth, and momentum qualities, with A being the best [8] - The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank [18] Value Investing - Value investors utilize ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to identify the most attractive and discounted stocks [2] - The Value Style Score helps investors find stocks that are undervalued before the broader market recognizes their true value [2] Growth Investing - Growth investors focus on a company's financial strength, health, and future outlook [9] - The Growth Style Score examines projected and historic earnings, sales, and cash flow to identify stocks with sustainable growth potential [9] Momentum Investing - Momentum investors take advantage of upward or downward trends in a stock's price or earnings outlook [22] - The Momentum Style Score uses factors like one-week price change and monthly percentage change in earnings estimates to determine favorable times to buy high-momentum stocks [22] Zacks Rank and Style Scores - The Zacks Rank employs earnings estimate revisions to make building a winning portfolio easier [14] - To maximize returns, investors should pick stocks with a Zacks Rank 1 or 2 and Style Scores of A or B [11] - Stocks with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, are likely to have declining earnings forecasts and share prices [24] Light & Wonder (LNW) Analysis - LNW is a 3 (Hold) on the Zacks Rank with a VGM Score of A [16] - The company has a Momentum Style Score of B, and its shares are up 11.3% over the past four weeks [25] - Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024, increasing the Zacks Consensus Estimate by $0.26 to$4.15 per share [6] - LNW boasts an average earnings surprise of 82.7% [6] Zacks Premium Features - Zacks Premium offers access to daily updates of the Zacks Rank, Zacks Industry Rank, Zacks 1 Rank List, Equity Research reports, and Premium stock screens [13] - The service includes the Zacks Style Scores, helping investors become smarter and more self-assured [21] Stock Selection Strategy - Investors should aim to own stocks with a 1 or 2 Rank and Style Scores of A or B to maximize potential returns [5] - The VGM Score helps narrow down companies with the most attractive value, best growth forecast, and most promising momentum [18]