How to Pick Strong, Market-Beating Stocks Using Zacks Style Scores

Introduction

Investing in the stock market can be a daunting task, especially for beginners. With so many options available, it can be challenging to know which stocks to choose for your investment portfolio. However, one useful tool that can help you make informed decisions is the Zacks Style Scores.

What are Zacks Style Scores?

Zacks Style Scores are a set of three factors – Value, Growth, and Momentum – that are used to rank stocks based on their potential for outperformance. These scores are calculated using a proprietary formula developed by Zacks Investment Research, a leading provider of investment-related data and research.

Value Score

The Value Score looks at a stock’s valuation metrics, such as price-to-earnings ratio and price-to-sales ratio, to determine if the stock is undervalued or overvalued. Stocks with a high Value Score are considered to be good bargains.

Growth Score

The Growth Score evaluates a stock’s earnings growth potential. Companies with a high Growth Score are expected to have strong earnings growth in the future, making them attractive investments.

Momentum Score

The Momentum Score measures the trend in a stock’s price movement. Stocks with a high Momentum Score have been outperforming the market recently and are likely to continue to do so in the near future.

How to Use Zacks Style Scores

By using Zacks Style Scores, investors can quickly identify stocks that have the potential to beat the market. A stock with high Value, Growth, and Momentum Scores is considered to be a strong candidate for investment. On the other hand, stocks with low scores may not be worth considering.

Conclusion

As an investor, incorporating Zacks Style Scores into your stock selection process can help you make more informed decisions and potentially achieve better returns. By focusing on stocks with strong Value, Growth, and Momentum Scores, you can build a market-beating portfolio and improve your overall investment performance.

How Zacks Style Scores Will Affect Me

By utilizing Zacks Style Scores, I can make more informed decisions when selecting stocks for my investment portfolio. By focusing on stocks with high Value, Growth, and Momentum Scores, I can potentially achieve better returns and improve my overall investment performance.

How Zacks Style Scores Will Affect the World

Zacks Style Scores have the potential to impact the world by helping investors allocate their capital more efficiently. By identifying companies with strong growth potential and solid momentum, investors can direct funds towards businesses that are poised for success, ultimately driving economic growth and innovation.