Here's Why Iridium Communications (IRDM) is a Strong Momentum Stock

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks experiencing upward or downward trends, utilizing factors like one-week price change and monthly earnings estimate changes [4] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [5] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to assist investors in building successful portfolios [6] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [8] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as stocks with declining forecasts (ranked 4 or 5) pose higher risks [9] Company Spotlight: Iridium Communications - Iridium Communications Inc, founded in 2000, provides global voice and data communications services to businesses, governments, and NGOs [10] - Currently rated 3 (Hold) with a VGM Score of B, it has a Momentum Style Score of B and a 1.3% share price increase over the past four weeks [10][11] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.07 to$0.81 per share, with an average earnings surprise of 202.2% [11]