Understanding Merit Medical's Momentum as a Top Long-Term Stock

Investors often seek to capitalize on the stock market's opportunities and aim to invest with increased assurance. A valuable tool in this endeavor is the utilization of Style Scores, a framework for evaluating stocks based on specific investing approaches. Notably, Merit Medical Systems, Inc. (MMSI) is garnering attention as a formidable momentum stock for long-term investment consideration.

What are Style Scores?

Style Scores offer investors a systematic way to screen for stocks by classifying them according to three mainstream investment types: value, growth, and momentum. These ratings are integral to the stock selection process as they assist in pinpointing securities with the best odds of outpacing the market in the following month. Stocks are rated from A to F, reflecting the potential they hold in these aspects — with A being the highest score indicative of outstanding performance.

Categories of Style Scores

Investors have different preferences and strategies, and Style Scores cater to these diverse approaches:

Value Score: This score assists value investors in finding undervalued stocks that haven't yet been recognized by the market at large.

Growth Score: Geared towards growth investors, this score identifies companies with robust financial health and promising future outlooks.

Momentum Score: This is essential for momentum investors who target trending stocks based on price movements or earnings outlooks.

VGM Score: A composite score for those who apply all three investing styles, helping to filter for stocks with appealing value, growth, and momentum attributes.

The Interplay of Style Scores and Zacks Rank

Zacks Rank is another powerful tool based on earnings estimate revisions. Stocks with a Zacks Rank of #1 (Strong Buy) have historically shown impressive annual returns. However, it is crucial to overlay the Zacks Rank with Style Scores as they complement each other — for instance, a Zacks Rank #1 or #2 stock with A or B scores in Style indicators is more likely to be successful.

Spotlight on Merit Medical Systems (MMSI)

Merit Medical is recognized as a noteworthy player, particularly for momentum investing. The company, specializing in medical devices for cardiology and radiology, holds a VGM score of A, an indicator of its robust potential. With a Momentum Style Score of B and its stock price rising, MMSI shows promise for sustained growth. Positive earnings revision trends and a consistent record of earnings surprises further cement its position as an attractive investment.

Ultimately, whether for Merit Medical or any other investment, combining the Zacks Rank with Style Scores can lead to more informed decisions, enhancing the possibility of long-term investment success.

investing, momentum, growth