Zacks Premium offers a comprehensive suite of tools designed to help both new and seasoned investors achieve their goals of maximizing stock market returns and investing with confidence.
This service provides daily updates on the Zacks Rank and Zacks Industry Rank, along with full access to the Zacks #1 Rank List, in-depth equity research reports, and advanced stock screening features. By utilizing these resources, investors can sharpen their strategies and make more informed, confident decisions.
One of the standout features of Zacks Premium is the Zacks Style Scores, a set of complementary indicators developed alongside the Zacks Rank. These scores provide a deeper understanding of stock performance by evaluating companies according to three major investing styles: value, growth, and momentum. The scores are designed to help investors identify stocks with the highest potential to outperform the market over the next 30 days.
Each stock is rated with a letter grade from A to F, based on its value, growth, and momentum characteristics. The higher the grade, the stronger the potential for outperformance—an A is better than a B, a B better than a C, and so on.
The Style Scores are divided into four categories:
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Value: Aimed at value investors, this score identifies stocks that are undervalued and trading below their intrinsic worth. Ratios like P/E, PEG, Price/Sales, and Price/Cash Flow help uncover the most attractive, discounted stocks.
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Growth: Growth investors focus on a company's financial health and its future prospects. The Growth Style Score uses historical and projected earnings, sales, and cash flow to highlight stocks with sustainable long-term growth potential.
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Momentum: For momentum traders, the mantra is "the trend is your friend." This score tracks price trends and earnings estimates, helping investors identify opportunities in stocks with strong upward or downward momentum.
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VGM Score: Combining all three styles, the VGM Score evaluates stocks based on value, growth, and momentum factors, providing a holistic view of the best potential performers.
Zacks Rank is an essential tool that complements these Style Scores. By focusing on earnings estimate revisions, Zacks Rank helps investors identify stocks with a high probability of success. Stocks ranked #1 (Strong Buy) have historically delivered an average annual return of +23.81% since 1988, more than double the S&P 500’s performance in the same period. However, with hundreds of stocks ranked highly each day, selecting the right ones can be overwhelming.
This is where the Style Scores become invaluable. Investors should prioritize stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B for the highest potential returns. Even if a stock has a #3 (Hold) rank, it should have Style Scores of A or B to ensure it has upside potential.
Importantly, the direction of earnings estimate revisions plays a crucial role. A stock with a #4 (Sell) or #5 (Strong Sell) rank, even with high Style Scores, may still face downward pressure due to negative earnings projections.
Motorola Solutions, Inc. (MSI), headquartered in Chicago, is a leading player in the communications equipment industry, particularly in bar code scanning, wireless infrastructure, and government communications. After splitting from its parent company, Motorola, Inc., on January 4, 2011, MSI has become a key provider of communications solutions for government agencies, public safety programs, large enterprises, and wireless infrastructure service providers. The company offers both analog and digital two-way radios, voice and data communication products, private networks, wireless broadband systems, and enterprise mobility solutions.
Currently, MSI holds a #3 (Hold) rank on the Zacks Rank and a VGM Score of B. For growth investors, MSI is a strong contender, with a Growth Style Score of B, signaling a projected 9.3% year-over-year earnings growth for the current fiscal year. Additionally, six analysts have raised their earnings estimates for MSI over the past 60 days, increasing the Zacks Consensus Estimate by $0.17 to $15.12 per share. MSI has a solid track record, with an average earnings surprise of +5.5%.
With its strong growth potential, high Zacks Rank, and solid Style Scores, MSI is a stock worth watching for investors seeking reliable opportunities.