Why Logitech (LOGI) is a Top Growth Stock for the Long-Term

Investing confidently in the stock market is a common goal for many individuals, regardless of age or experience. A crucial aspect of achieving this goal is selecting strong stocks that have the potential to outperform the market over time. Logitech (LOGI) exemplifies a top growth stock that investors should consider for long-term investment.

Logitech International S.A., based in Switzerland, is a well-known leader in developing and marketing innovative peripherals for personal computers and various digital platforms. Their range of products includes PC navigation tools, internet communication devices, digital music products, home entertainment controls, video security devices, interactive gaming accessories, and wireless gadgets.

Understanding the Importance of Stock Selection

To identify stocks like Logitech that offer growth potential, investors can utilize specific tools and metrics. One such resource is the Zacks Style Scores, which provide a framework for evaluating stocks based on three key investing styles: value, growth, and momentum. This analysis enables investors to select stocks with a higher likelihood of success.

What are Zacks Style Scores?

Zacks Style Scores offer a unique rating system that assesses stocks using a grade from A to F based on their characteristics. An A rating is the highest, signifying that the stock has strong fundamentals and is likely to outperform. The scores both highlight and assess stocks across four categories: value, growth, momentum, and an overarching VGM score that combines these factors.

The Value Score focuses on identifying undervalued stocks by analyzing ratios like price-to-earnings (P/E) and price-to-sales. For Growth Scores, investors concentrate on a company's financial health and future earnings potential. Momentum Scores help investors capitalize on current trends in stock pricing and earnings. Finally, the VGM Score aggregates these styles to identify stocks with optimal value, growth outlook, and momentum.

How Zacks Style Scores Interact with the Zacks Rank

The Zacks Rank is a powerful stock-rating system that aligns earnings estimate revisions with stock performance. Stocks ranked #1 (Strong Buy) have historically outperformed, boasting an impressive average annual return significantly exceeding that of the S&P 500.

With an extensive pool of stocks available, using the Style Scores alongside the Zacks Rank can simplify the process of selecting securities to invest in. Ideally, investors want to target stocks with a Zacks Rank of #1 or #2, coupled with Style Scores of A or B. This strategy allows for the identification of stocks with the highest potential for positive returns and growth.

Logitech: A Stock Worth Considering

Currently, Logitech holds a Zacks Rank of #3 (Hold) and has a commendable VGM Score of A. It emerges as a strong option for growth investors, boasting a Growth Style Score of B and an anticipated year-over-year earnings growth of 8.9% for the current fiscal year.

Recent updates show that five analysts have raised their earnings estimates for Logitech in the past two months, with the Zacks Consensus Estimate reflecting a rise of $0.20 to $4.63 per share. Additionally, LOGI has demonstrated a solid earnings surprise of 32.5% on average, highlighting its potential for continued success.

Given its strong Zacks Rank and impressive Style Scores, Logitech is a stock certainly worth considering for your investment portfolio.

Logitech, Growth, Investment