Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses stocks based on their future earnings and financial health [5] - Momentum Score tracks price trends to capitalize on upward or downward movements [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [9] - There are typically over 800 stocks rated 1 or 2, which can be overwhelming for investors [10] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [11] - The direction of earnings estimate revisions is crucial in stock selection, as lower-ranked stocks may still face declining forecasts [12][13] Company Spotlight: Zoetis Inc. - Zoetis Inc., established from Pfizer's animal health business spin-off, specializes in products for livestock and companion animals [14] - Currently rated 3 (Hold) with a VGM Score of B, Zoetis shows promise for growth investors with a projected earnings growth of 10.7% for the current fiscal year [15] - The company has seen upward revisions in earnings estimates, indicating positive market sentiment [15][16]
Why Zoetis (ZTS) is a Top Growth Stock for the Long-Term