Air Transport Services (ATSG) is one of the highest ranked growth stocks: should you buy?

JTaking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

With daily Zacks Ranking and Zacks Industry Ranking updates, full access to the Zacks #1 Ranking List, Stock Research Reports, and Premium Stock Screens, the Research Service can help you become a smarter and more confident investor.

It also includes access to Zacks style sheet music.

What are Zacks style scores?

Developed alongside Zacks Rank, Zacks Style Scores are a group of complementary indicators that help investors select stocks with the best chance of beating the market over the next 30 days.

Each stock is assigned a letter grade of A, B, C, D or F based on its value, growth and dynamic qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the higher the score, the better the chance the stock will outperform.

Style Scores are divided into four categories:

Value Rating

Finding good stocks at good prices and finding out which companies are trading at fair value is what value investors like to focus on. Thus, the value style score takes into account ratios such as P/E, PEG, price/sales, price/cash flow and a host of other multiples to highlight the most attractive and discounted stocks. .

Growth Score

Growth-oriented investors are more concerned with a stock’s future prospects, as well as a company’s overall financial health and strength. Thus, the Growth Style Score analyzes characteristics such as expected and historical earnings, sales and cash flow to find stocks that will experience sustainable growth over time.

Momentum Score

Momentum trading is all about taking advantage of upward or downward trends in a stock’s price or earnings outlook, and these investors live by the saying “the trend is your friend”. The Momentum Style Score can identify good times to initiate a position in a security, using factors such as one-week price change and monthly percentage change in earnings estimates.

VGM score

If you enjoy using all three types of investing, the VGM score is for you. It’s a combination of all Style Scores, and it’s an important indicator to use with Zacks Rank. The VGM score rates each stock based on its shared weighted styles, narrowing down the companies with the most attractive value, the best growth forecasts and the most promising momentum.

How Style Scores Work with Zacks Ranking

The Zacks Ranking, which is a proprietary stock rating model, uses revisions to earnings estimates, or changes to a company’s earnings forecast, to help build a winning portfolio.

Investors can count on the success of Zacks Rank, with #1 stocks (Strong Buy) producing an unmatched average annual return of +25.41% since 1988, more than double the performance of the S&P 500. But the model values ​​a large number of stocks, and there are over 200 companies with a strong buy rank, plus another 600 with a #2 (buy) rank, every day.

With over 800 top-rated stocks to choose from, it can certainly feel overwhelming deciding which ones are right for you and your investment journey.

This is where Style Scores come in.

You want to make sure you’re buying stocks with the highest probability of success, and to do that you’ll need to choose stocks with a Zacks #1 or #2 rating that also have A or B style scores. you like a security that is only ranked #3 (Hold), it should also have scores of A or B to ensure as much upside potential as possible.

The direction of a stock’s earnings estimate revisions should always be a key factor when deciding which stocks to buy, since the scores were created to work with the Zacks Ranking.

For example, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that displays scores of A and B, still has a downward earnings forecast, and a much greater probability than its share price drops. as well.

So the more stocks you have with a rank of #1 or #2 and scores of A or B, the better.

Stock to Watch: Air Transport Services (ATSG)

Air Transport Services Group is one of the world’s leading providers of aircraft leasing, air cargo transportation and related services. Additionally, this Wilmington, OH-based company is the largest cargo aircraft lessor in the world and operates through numerous subsidiaries.

ATSG is a #3 (Hold) on the Zacks rank, with a VGM score of A.

Additionally, the company could be a top pick for growth investors. ATSG has a growth style score of A, forecasting year-over-year earnings growth of 23.5% for the current fiscal year.

Two analysts upgraded their earnings estimate in the past 60 days for fiscal 2022. Zacks’ consensus estimate rose $0.07 to $2.05 per share. The ATSG shows an average surprise profit of 29.8%.

With a strong Zacks ranking and top VGM growth and style scores, the ATSG should be on the shortlist for investors.

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Air Transport Services Group, Inc (ATSG): Free Inventory Analysis Report

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

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