Why Exelixis (EXEL) Stands Out as a Leading Value Investment for Long-Term Growth

Maximize Your Stock Market Potential with Zacks Premium

Whether you’re new to investing or have years of experience, making the most of the stock market and investing with assurance are shared ambitions. Zacks Premium offers a variety of tools to help you reach these goals.

This well-regarded research platform empowers you to become a more knowledgeable and confident investor. Subscribers receive daily updates on the Zacks Rank and Zacks Industry Rank, access to the exclusive Zacks #1 Rank List, in-depth equity research reports, and advanced stock screening features.

Additionally, Zacks Premium members can utilize the Zacks Style Scores for further insight.

Understanding Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores consist of several indicators designed to help investors identify stocks with the highest potential to outperform the market in the next month.

Each stock is evaluated based on value, growth, and momentum factors, and receives a grade from A to F. Higher grades indicate a greater likelihood of outperformance—an A is superior to a B, and so forth.

The Style Scores are divided into four main types:

Value Score

Value investors seek quality stocks trading below their intrinsic worth, often before the broader market recognizes their potential. The Value Style Score highlights the most appealing and undervalued stocks by analyzing metrics such as P/E, PEG, Price/Sales, Price/Cash Flow, and other valuation ratios.

Growth Score

Growth-focused investors prioritize a company’s financial health and future prospects. The Growth Style Score evaluates both projected and historical earnings, sales, and cash flow to identify businesses poised for sustainable, long-term expansion.

Momentum Score

Momentum investing centers on capitalizing on trends in stock prices or earnings forecasts. The Momentum Style Score helps pinpoint optimal entry points by considering factors like weekly price movements and monthly changes in earnings estimates.

VGM Score

If you prefer a blended approach, the VGM Score combines all three Style Scores. This composite rating, used alongside the Zacks Rank, helps narrow down companies with strong value, robust growth outlooks, and positive momentum.

How Style Scores Enhance the Zacks Rank

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

Historically, stocks rated #1 (Strong Buy) by Zacks have delivered an average annual return of +23.86% since 1988—more than twice the S&P 500’s performance. However, with over 200 companies holding a Strong Buy rating and another 600 rated #2 (Buy) at any time, narrowing down your choices can be daunting.

This is where Style Scores prove invaluable.

For the best chance at strong returns, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. If considering stocks with a #3 (Hold) rating, prioritize those with high Style Scores to maximize upside potential.

Since Style Scores are designed to work in tandem with the Zacks Rank, any shift in a company’s earnings outlook should influence your investment decisions.

Stocks rated #4 (Sell) or #5 (Strong Sell), even with high Style Scores, typically face declining earnings projections and a higher risk of price declines.

Owning more stocks with a #1 or #2 Rank and top Style Scores increases your chances of investment success.

Featured Stock: Exelixis (EXEL)

Exelixis, Inc., based in Alameda, California, is a biotechnology firm specializing in oncology. The company is dedicated to discovering, developing, and commercializing innovative treatments for challenging cancer types. Through strategic investments and partnerships, Exelixis is expanding its pipeline, which includes small molecules, antibody-drug conjugates (ADCs), and other advanced therapies targeting a broad range of tumors.

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

It also receives a B for Value, supported by attractive valuation measures such as a forward P/E ratio of 12.98—making it appealing to value-oriented investors.

In the past two months, six analysts have raised their earnings forecasts for fiscal 2026, and the Zacks Consensus Estimate has climbed by $0.21 to $3.39 per share. EXEL has also delivered an average earnings surprise of +25%.

Given its strong Zacks Rank and impressive Value and VGM Scores, EXEL deserves a spot on investors’ watchlists.

Top Analyst’s “Best Pick to Double”

Out of thousands of stocks, five Zacks experts have each selected their top choice for potential gains of 100% or more in the coming months. Among 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 price dip presents an attractive entry point. While not every top pick is a winner, this selection could outperform previous Zacks recommendations such as Nano-X Imaging, which surged +129.6% in just over nine months.