Maximizing Your Stock Market Strategy with Zacks Premium

For both new and seasoned investors, navigating the stock market with confidence is essential. Zacks Premium provides various tools to help you achieve that goal.

This research service delivers daily updates on the Zacks Rank and Zacks Industry Rank, offers full access to the Zacks #1 Rank List, Equity Research reports, and exclusive stock screens, making you a more informed investor.

Additionally, the service includes access to the Zacks Style Scores.

Understanding Zacks Style Scores

The Zacks Style Scores are a distinctive set of metrics that evaluate stocks based on three major investment styles. Developed to serve as complementary indicators for the Zacks Rank, these scores assist investors in selecting stocks with a higher likelihood of outperforming the market in the short term.

Each stock receives a letter grade from A to F, based on its value, growth, and momentum characteristics. An A represents the best rating, followed by B, C, D, and F, signifying a stock’s potential to excel.

The Style Scores fall into four categories:

Value Score

Value investors aim to spot undervalued stocks before the broader market catches on. The Value Style Score employs various ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most appealing and discounted stocks.

Growth Score

While value matters, growth investors prioritize a company’s financial health and future prospects. The Growth Style Score analyzes historical and projected earnings, sales, and cash flow to identify stocks poised for sustainable long-term growth.

Momentum Score

Momentum investors believe in riding trends. They track price changes and the monthly percentage change in earnings estimates to find advantageous times to buy stocks experiencing upward or downward momentum. The Momentum Style Score aids in this decision-making process.

VGM Score

If you prefer a combined approach, the VGM Score brings together all Style Scores, offering a comprehensive indicator when used alongside the Zacks Rank. This score evaluates stocks based on their value, growth potential, and momentum.

How Style Scores Complement the Zacks Rank

The Zacks Rank is a proprietary model that leverages earnings estimate revisions to help investors build successful portfolios.

Historically, #1 (Strong Buy) stocks have delivered an impressive average annual return of +25.41% since 1988, more than double that of the S&P 500. Despite having over 200 Strong Buy stocks and an additional 600 rated #2 (Buy) at any given time, it can feel daunting to pinpoint the ideal stocks for your investment strategy.

This is where the Style Scores become beneficial.

To maximize your potential for significant returns, prioritize stocks with a Zacks Rank of #1 or #2 alongside Style Scores of A or B. For stocks rated #3 (Hold), ensure they also have A or B scores to increase upside potential.

Since Style Scores work hand-in-hand with the Zacks Rank, consider the direction of a stock’s earnings estimate revisions as a crucial factor in your investment decisions.

For example, a stock with a #4 (Sell) or #5 (Strong Sell) rating—even with impressive Style Scores—will likely see its price drop due to a negative earnings forecast.

Overall, the more stocks you own with a #1 or #2 Rank and Style Scores of A or B, the better your chances for success.

Spotlight on Jabil (JBL)

Based in St. Petersburg, FL, Jabil, Inc. is a leading global provider of electronic manufacturing services. The firm offers a mix of design, production, product management, and after-market services across various sectors including aerospace, automotive, computing, and telecommunications.

Currently rated #3 (Hold) on the Zacks Rank, Jabil boasts a VGM Score of A.

Momentum investors may want to pay attention to this stock. With a Momentum Style Score of B, JBL’s shares have risen 11.3% over the last four weeks.

In the past 60 days, three analysts have increased their earnings estimates for fiscal 2025, pushing the Zacks Consensus Estimate up by $0.05 to $8.73 per share. Jabil also has a history of exceeding earnings expectations with an average surprise of 3.5%.

Given its solid Zacks Rank and strong Momentum and VGM Style Scores, Jabil is worth considering for your investment portfolio.

Should You Invest in Jabil, Inc. (JBL)?

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Since 1978, Zacks Investment Research has focused on providing investors with tools and independent analyses. The Zacks Rank stock-rating model has notably outperformed the S&P 500 with an average annual gain of +24.08% from January 1, 1988, to May 6, 2024.

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Jabil, Inc. (JBL): Free Stock Analysis Report

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