Why Verisk Analytics (VRSK) is a Top Momentum Stock for the Long-Term

Zacks highlights Verisk Analytics (VRSK) as a potentially attractive momentum stock, noting its Zacks Rank of #3 (Hold) and VGM Score of B. The stock has risen 3.3% in the past four weeks, supported by a Momentum Style Score of B and upward earnings estimate revisions, with the fiscal year 2025 consensus estimate increasing by $0.04 to $7.05 per share based on four analyst revisions over the last 60 days.

Analysis

Verisk Analytics (VRSK) is identified as a noteworthy momentum stock for potential long-term consideration, primarily based on Zacks' proprietary rating system. Despite carrying a Zacks Rank #3 (Hold), VRSK exhibits strong momentum characteristics, evidenced by a Momentum Style Score of 'B' and an overall VGM Score of 'B'. This is further supported by a 3.3% appreciation in its share price over the past four weeks. Fundamentally, the outlook for VRSK appears positive, with four analysts revising their fiscal 2025 earnings estimates upward in the last 60 days. This has led to an increase in the Zacks Consensus Estimate for fiscal 2025 earnings per share by $0.04 to $7.05. Additionally, Verisk Analytics has demonstrated a consistent ability to surpass earnings expectations, boasting an average earnings surprise of 3.8%. The combination of these factors—positive price momentum, favorable style scores, and upward earnings estimate revisions—suggests that VRSK warrants attention from investors, particularly those who prioritize momentum, even with a 'Hold' rating, as strong style scores can indicate upside potential for such ranked stocks.

Key Decisions for Investors

• Investors with a focus on momentum strategies should consider Verisk Analytics, as its 'B' Momentum Style Score and recent 3.3% price increase, coupled with positive earnings estimate revisions, align with momentum indicators despite its Zacks #3 (Hold) rank.
• The upward trend in fiscal 2025 earnings estimates to $7.05 per share and a consistent 3.8% average earnings surprise suggest underlying fundamental strength that could support sustained price momentum, meriting inclusion on a watchlist.
• Given the 'Hold' rank, it is prudent to monitor for continued positive earnings estimate revisions and sustained share price strength to confirm the viability of the long-term momentum thesis before committing significant capital.