Maximize Your Investment with Zacks Premium’s Style Scores

Regardless of age or experience, many investors share a common goal: mastering the Stock market and investing confidently. Zacks Premium provides several effective tools to achieve just that.

This research service delivers daily insights on the Zacks Rank and Zacks Industry Rank, along with complete access to the Zacks #1 Rank List, Equity Research reports, and Premium Stock screens. These resources are designed to empower you as a more informed and confident investor.

Understanding Zacks Style Scores

Zacks Premium also includes Zacks Style Scores, which were developed to complement the Zacks Rank. These scores help investors select stocks with the strongest potential to outperform the market in the short term, specifically over the next 30 days.

Each Stock is assigned an alphabetic rating ranging from A to F, based on its value, growth, and momentum attributes. Essentially, an A is superior to a B, a B better than a C, and so forth. Thus, higher scores indicate better chances for outperformance.

Categories of Style Scores

The Style Scores comprise four distinct categories:

• Value Score – This score aids investors in identifying undervalued stocks by analyzing metrics such as P/E, PEG, Price/Sales, and Price/Cash Flow. It highlights companies trading below their intrinsic value.
• Growth Score – This score focuses on a stock’s future potential and overall financial health. It examines projected and past earnings, sales, and cash flow to discover stocks that show promise for sustainable growth.
• Momentum Score – Momentum trading capitalizes on trends in stock prices or earnings expectations. This score helps identify optimal entry points based on recent price changes and earnings estimate shifts.
• VGM Score – The VGM Score integrates all three Style Scores, serving as a vital component alongside the Zacks Rank. It evaluates stocks based on their weighted characteristics across value, growth, and momentum.

The Synergy Between Style Scores and Zacks Rank

The Zacks Rank is a proprietary Stock-rating model that leverages earnings estimate revisions to simplify constructing a successful portfolio. Since its inception in 1988, #1 (Strong Buy) stocks from Zacks have achieved an impressive average annual return of +25.41%, notably outperforming the S&P 500.

Currently, more than 200 companies hold a Strong Buy rank, while roughly 600 have a #2 (Buy) rank. This abundance of options can be daunting.

That’s where the Style Scores come into play. Investors should focus on acquiring stocks with a Zacks Rank of #1 or #2 alongside Style Scores of A or B. For stocks ranked #3 (Hold), only those with high Style Scores should be considered to maximize potential returns.

It is important that the trends in a Stock‘s earnings estimates play a crucial role in your selection process. Even stocks with high Style Scores but a #4 (Sell) or #5 (Strong Sell) designation are likely to have deteriorating earnings forecasts.

Thus, strategically holding stocks ranked #1 or #2 that also possess A or B Style Scores enhances your portfolio’s likelihood of success.

Featured Stock: Meta Platforms (META)

Meta Platforms, the leading social media entity globally, has evolved its offerings from a single platform to a suite of applications including Instagram and WhatsApp. As of December 31, 2024, these platforms serve about 3.35 billion daily active users.

Currently, META is rated #3 (Hold) on the Zacks Rank, with a VGM Score of B. This company stands out for growth investors, holding a Growth Style Score of A. It anticipates an 11.9% year-over-year earnings increase for the current fiscal year.

In the last 60 days, ten analysts have revised their earnings estimates upward for fiscal 2025, bringing the Zacks Consensus Estimate to $26.70 per share, a $1.52 increase. META has an average earnings surprise of 13.8%.

With a solid predictability profile supported by strong Style Scores, META warrants serious consideration for investors.

Should You Invest in Meta Platforms, Inc. (META)?

Before making investment decisions regarding Meta Platforms, Inc. (META), consider exploring Zacks Investment Research’s free resources for insights on the best stocks to buy over the next 30 days.

Zacks Investment Research has dedicated itself to aiding investors with valuable tools and independent analysis since 1978. Its Zacks Rank system has consistently outperformed the S&P 500, boasting an average annual gain of +24.08% from January 1, 1988, to May 6, 2024.

For the latest recommendations from Zacks Investment Research, you can access the list of 7 Best Stocks for the Next 30 Days. Click to receive this complimentary report.

This analysis of Meta Platforms, Inc. (META) is a benefit of Zacks Investment Research.

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