Why Pediatrix Medical Group (MD) Stands Out as a Leading Long-Term Growth Stock

Maximize Your Stock Market Success with Zacks Premium

No matter your background or investing experience, making the most of the stock market and investing with assurance are goals shared by all investors. Zacks Premium provides a variety of resources to help you achieve these objectives.

Subscribers receive daily updates on the Zacks Rank and Zacks Industry Rank, unrestricted access to the Zacks #1 Rank List, in-depth Equity Research reports, and exclusive Premium stock screening tools. These features are designed to empower you to make smarter, more confident investment decisions.

Additionally, Zacks Premium members benefit from the Zacks Style Scores system.

Understanding Zacks Style Scores

The Zacks Style Scores, developed to complement the Zacks Rank, are a set of indicators that assist investors in identifying stocks with the highest potential to outperform the market over the next month.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An A rating is superior to a B, a B is better than a C, and so forth. Higher grades indicate a greater likelihood that the stock will deliver strong returns.

The Style Scores are divided into four main categories:

Value Score

Value investors seek quality companies trading below their intrinsic worth before the broader market recognizes their potential. The Value Score uses metrics such as price-to-earnings, PEG ratio, price-to-sales, price-to-cash flow, and other valuation multiples to highlight stocks that are attractively priced and undervalued.

Growth Score

Growth-focused investors prioritize a company's future outlook and financial strength. The Growth Score evaluates factors like projected and historical earnings, revenue, and cash flow to pinpoint stocks with the potential for sustained long-term growth.

Momentum Score

Momentum investors capitalize on trends in stock prices or earnings forecasts. The Momentum Score considers short-term price movements and recent changes in earnings estimates, among other factors, to help identify optimal moments to invest in stocks with strong momentum.

VGM Score

For those seeking a blend of value, growth, and momentum, the VGM Score offers a comprehensive rating by combining all three styles. This score helps investors find companies that excel in value, have robust growth prospects, and demonstrate positive momentum. It is especially effective when used alongside the Zacks Rank.

Integrating Style Scores with the Zacks Rank

The Zacks Rank is a proprietary rating system that leverages changes in earnings estimates to guide investors in building successful portfolios.

Stocks with a #1 (Strong Buy) Zacks Rank have historically delivered an average annual return of +23.86% since 1988, more than twice the S&P 500's performance during the same period. However, with over 200 companies often holding a Strong Buy rating and another 600 with a #2 (Buy) rating, narrowing down your choices can be daunting.

That's where the Style Scores become invaluable.

To maximize your investment returns, focus on stocks rated #1 or #2 by the Zacks Rank that also have Style Scores of A or B. This combination offers the best chance for success. For stocks with a #3 (Hold) rating, prioritize those with A or B Style Scores to enhance your upside potential.

The Style Scores are specifically designed to complement the Zacks Rank, so any changes in a company's earnings outlook should play a key role in your investment decisions.

For example, a stock rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, is likely facing declining earnings expectations and may see its share price drop.

Owning more stocks with a #1 or #2 Zacks Rank and A or B Style Scores increases your likelihood of achieving strong returns.

Featured Stock: Pediatrix Medical Group (MD)

Pediatrix Medical Group, Inc., based in Sunrise, Florida, rebranded from Mednax on July 1, 2022, to enhance its market presence, while continuing to trade under the ticker MD.

Currently, MD holds a #3 (Hold) Zacks Rank and boasts an A-rated VGM Score.

This company stands out for growth-oriented investors, with an A in the Growth Style Score and an anticipated 2% increase in earnings for the current fiscal year.

In the past two months, two analysts have raised their earnings projections for fiscal 2026, and the Zacks Consensus Estimate has edged up by $0.01 to $2.08 per share. MD has also delivered an average earnings surprise of +24.6%.

With a solid Zacks Rank and top Growth and VGM Scores, MD deserves a spot on investors' watchlists.

Top Analyst’s “Best Pick to Double” Revealed

Out of thousands of stocks, five Zacks experts have each selected their top choice to potentially soar by 100% or more in the coming months. From these, Director of Research Sheraz Mian has identified the one with the greatest upside potential.

This company, which targets millennial and Gen Z consumers, generated nearly $1 billion in revenue last quarter. A recent dip in its share price presents an attractive entry point. While not all top picks achieve such results, this stock could outperform previous winners like Nano-X Imaging, which surged +129.6% in just over nine months.