Why Expand Energy (EXE) Stands Out as a Leading Long-Term Growth Stock

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Whether you're just starting out or have years of investing experience, Zacks Premium provides a comprehensive suite of tools to help you navigate the stock market with assurance. This service delivers daily updates on the Zacks Rank and Industry Rank, full access to the exclusive Zacks #1 Rank List, in-depth Equity Research reports, and advanced stock screening features—all designed to empower you to make smarter investment decisions.

Subscribers also benefit from the Zacks Style Scores, a valuable addition to the platform's offerings.

Understanding Zacks Style Scores

Created to complement the Zacks Rank, the Zacks Style Scores evaluate stocks using three popular investment strategies. These scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term.

Each stock receives a letter grade—A, B, C, D, or F—based on its value, growth, and momentum characteristics. An 'A' rating signals the strongest prospects, while lower grades indicate decreasing potential for outperformance.

The Style Scores are divided into four main categories:

Value Score

For those who prioritize undervalued opportunities, the Value Score highlights stocks trading below their intrinsic worth. This score uses metrics such as price-to-earnings (P/E), price/earnings-to-growth (PEG), price-to-sales, and price-to-cash flow ratios, among others, to spotlight the most attractively priced companies in the market.

Growth Score

Growth-oriented investors focus on companies with strong financial health and promising future prospects. The Growth Score considers both historical and projected figures for earnings, sales, and cash flow to identify businesses poised for sustainable expansion.

Momentum Score

Momentum investing is about capitalizing on prevailing trends in stock prices or earnings forecasts. The Momentum Score evaluates factors like recent price movements and changes in earnings estimates, helping investors pinpoint optimal times to invest in stocks with strong upward momentum.

VGM Score

If you prefer a blended approach, the VGM Score combines value, growth, and momentum metrics into a single rating. This comprehensive score, especially when used alongside the Zacks Rank, helps narrow down stocks that excel across all three investment styles.

Integrating Style Scores with the Zacks Rank

The Zacks Rank is a proprietary system that leverages changes in earnings estimates to help investors build robust portfolios. Historically, stocks rated #1 (Strong Buy) have delivered an impressive average annual return of +23.86% since 1988—more than twice the S&P 500's performance. However, with over 800 stocks frequently earning top ratings, choosing the right ones can be daunting.

This is where Style Scores prove invaluable. For the best chance of strong returns, focus on stocks with a Zacks Rank of #1 or #2 and Style Scores of A or B. Even if a stock is rated #3 (Hold), a high Style Score can indicate additional upside potential. Conversely, stocks with lower ranks—even if they have high Style Scores—may be at risk due to declining earnings forecasts.

In summary, prioritizing stocks with both high Zacks Ranks and top Style Scores can significantly enhance your investment outcomes.

Featured Stock: Expand Energy (EXE)

Expand Energy Corporation, formed from the merger of Chesapeake Energy Corporation and Southwestern Energy Company, stands as a leading U.S. natural gas producer. Finalized on October 1, 2024, this all-stock merger created a powerhouse with premier assets in the Haynesville and Appalachian regions, a robust drilling portfolio, and strategic access to both LNG and domestic markets. The combined company benefits from increased scale, operational efficiency, and financial strength, supporting a strong balance sheet, improved credit, and attractive returns for shareholders—all while positioning itself to meet rising global energy needs.

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

Growth investors may find EXE particularly appealing. The company has earned a B Growth Style Score and is projected to achieve a 39.2% increase in earnings for the current fiscal year.

Looking ahead to fiscal 2026, three analysts have raised their earnings forecasts in the past two months, lifting the Zacks Consensus Estimate by $0.25 to $8.49 per share. EXE has also delivered an average earnings surprise of +5.4%.

With its strong Zacks Rank and high Growth and VGM Scores, EXE 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 expected to potentially double in value in the coming months. From these, the Director of Research, Sheraz Mian, has identified the single stock with the greatest upside potential.

This standout company targets millennial and Gen Z consumers, generating nearly $1 billion in revenue last quarter. A recent dip in its share price presents a timely opportunity for investors. While not every top pick achieves extraordinary gains, this stock could outperform previous Zacks selections like Nano-X Imaging, which soared +129.6% in just over nine months.