Zacks Investment Research promotes its proprietary Zacks Rank, which has historically delivered a +25.41% average annual return for #1-ranked stocks since 1988, complemented by A-F graded Style Scores (Value, Growth, Momentum, and combined VGM). The methodology suggests combining a #1 or #2 Zacks Rank with A or B Style Scores for optimal performance, exemplified by Spire Inc. (SR), a natural gas utility with over 90% regulated profits, which, despite a #3 (Hold) Zacks Rank, earns an A for VGM and B for Growth, supported by a projected 9% earnings increase for the current fiscal year, positioning it as a potential growth pick.
The analysis centers on the Zacks investment framework, which advocates for combining its proprietary, earnings-estimate-driven Zacks Rank with qualitative Style Scores (Value, Growth, Momentum). The framework's historical efficacy is highlighted by the claimed +25.41% average annual return for its #1 ranked stocks since 1988. Spire Inc. (SR) is presented as a specific application of this methodology, representing a case where strong underlying metrics may outweigh a neutral headline rating. Despite a Zacks Rank of #3 (Hold), SR is distinguished by a top-tier 'A' VGM Score and a 'B' Growth Score. This is substantiated by a projected 9% year-over-year earnings growth for the current fiscal year and a historical average earnings surprise of 2.5%. The stability of SR's business model, where over 90% of profits originate from regulated operations, lends credibility to these projections and suggests a degree of earnings predictability. The upward revision by one analyst for fiscal 2025, although not changing the consensus estimate of $4.50 per share, signals some positive sentiment among analysts.
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Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.80
Ticker Sentiment
