Unlocking Potential: Exploring Zacks Premium and Stock Investing

Whether you’re just starting out or have years of experience, investing confidently in the stock market is a universal aim for investors. To help you reach that goal, Zacks Premium provides various tools and resources.

This well-known research service equips you to become a more informed investor by offering daily insights from the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and specialized stock screens.

Additionally, it includes unique access to the Zacks Style Scores.

Understanding the Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores are indicators designed to help investors identify stocks that are likely to outperform the market in the next 30 days. Each stock is rated with letters from A to F, assessing its value, growth, and momentum characteristics. For instance, an A is superior to a B, indicating higher potential for market success.

The Style Scores consist of four main categories:

Value Score

Value investors seek out stocks priced below their true worth. The Value Style Score uses ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to pinpoint these attractive options.

Growth Score

Growth investors focus on financial stability and future potential. The Growth Style Score evaluates factors such as earnings, sales, and cash flow to find stocks poised for sustainable growth.

Momentum Score

Investors who believe “the trend is your friend” turn to the Momentum Score. This style capitalizes on trends in stock prices and earnings. By analyzing recent price changes and earnings estimate adjustments, the Momentum Score helps identify the right moments to invest in high-performing stocks.

VGM Score

For those using a mix of investment strategies, the VGM Score combines all the Style Scores. This comprehensive rating assesses stocks based on value, growth projections, and momentum, helping investors find the most promising candidates.

The Synergy of Style Scores and the Zacks Rank

The Zacks Rank is a proprietary model that simplifies portfolio building through earnings estimate revisions. Since 1988, stocks rated #1 (Strong Buy) have achieved an impressive average annual return of +25.41%, significantly outpacing the S&P 500.

However, it can be challenging to sift through the over 800 top-rated stocks available at any time, including approximately 200 classified as Strong Buy and 600 as Buy. This abundance can be overwhelming for investors trying to find the right stocks.

This is where the Style Scores are essential.

For maximum returns, it’s advisable to focus on stocks with a Zacks Rank of #1 or #2 alongside Style Scores of A or B. Even stocks ranked #3 (Hold) can be viable if they carry these stronger scores, ensuring the best potential growth.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) ranking—even with appealing Style Scores—indicates a negative earnings outlook, increasing the risk of a price drop.

Therefore, owning a greater number of stocks rated #1 or #2, coupled with high Style Scores, can enhance your investment strategy.

Spotlight: Meta Platforms (META)

Meta Platforms stands as the largest social media platform globally. Transitioning from its original Facebook app, the company’s portfolio now includes Instagram and WhatsApp, alongside Messenger—tools utilized daily by nearly 3.35 billion users as of December 31, 2024.

Currently, META holds a #3 (Hold) rating in the Zacks Rank, supported by a VGM Score of B.

For growth investors, META is particularly appealing. The Growth Style Score is an A, indicating a projected earnings increase of 11.7% for the ongoing fiscal year.

In the past two months, nine analysts have lifted their earnings estimates for fiscal 2025, raising the Zacks Consensus Estimate by $1.48 to $26.66 per share. Additionally, META has an average earnings surprise of 13.8%.

With strong ratings in key investment categories, META is a stock to consider for your investment list.

Is Meta Platforms, Inc. (META) a Good Investment?

If you’re contemplating an investment in Meta Platforms, Inc. (META) and seeking the best stocks to buy over the next month, visit Zacks Investment Research for insights on the 7 top picks.

Since 1978, Zacks Investment Research has provided investors with valuable tools and independent analyses. Their Zacks Rank stock-rating system has outperformed the S&P 500, boasting an average gain of +24.08% annually (figures based on performance from January 1, 1988, to May 6, 2024).

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Meta Platforms, Inc. (META): Free Stock Analysis Report

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.