BREAKING NEWS: Investing

Chevron's Venezuelan oil cargoes stalled at sea after export cancellations

Fri, 11 Apr 2025 16:32:01 +0000

Oil gains as market adjusts to risks posed by US trade policies

Fri, 11 Apr 2025 16:26:23 +0000

Gold Price Hits New Record, Breaking US$3,200 for First Time

Fri, 11 Apr 2025 16:15:00 +0000

The gold price reached yet another record high on Friday (April 11), breaking US$3,200 per ounce.

The precious metal has gained significant momentum since the beginning of the year. In morning trading on Friday it surged past the US$3,200 mark, climbing as high as US$3,244.33 per ounce.

The rise comes after a week of chaos caused by US President Donald Trump's on-again-off-again global tariff scheme.

The week had the president reversing course on some of the tariff measures he announced on April 2, for what he called "Liberation Day."

At the time, Trump immediately applied a 10 percent tariff to all but a handful of countries, including Canada and Mexico, with more severe reciprocal tariffs to come into effect this week. However, on Wednesday (April 9), Trump announced he would pause the additional tariffs for 90 days, saying more than 70 countries had contacted him to make deals.

Trump may have also been feeling pressure from economic advisors as a surge in treasury yields signalled a potential economic crisis brewing in the US bond market. Normally a safe haven during market volatility, the bond market saw a significant sell-off this week as US tariffs and the overall stability of the US economy spooked traders.

Although the pause gave most countries some breathing room, tariffs against China were left on the table. After back-and-forth increases to import fees, US tariffs levied against China had increased to 145 percent, while Chinese tariffs had climbed to 125 percent.

Trump has threatened various tariffs since the start of his administration, but few have yet to materialize. The majority have targeted US trade partners like Canada, Mexico and the European Union.

On March 26, Trump announced a 25 percent tariff on all automobiles made outside of the US, but suggested there may be exemptions for parts and vehicles that fall under US-Mexico-Canada Agreement guidelines. Those rules require that 60 percent of vehicles and components be manufactured in the US, Canada or Mexico.

The net effect of Trump's actions has been political and financial turmoil, sparking selloffs on major stock markets and pushing prices for safe-haven assets like gold to fresh records.

Additionally, China, Japan and South Korea agreed on March 30 to seek deeper free trade ties in response to the threat of tariffs from the US government. The deal marks a significant move by the three countries following decades of US diplomacy to maintain close relationships with Japan and South Korea.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

US energy secretary says we can stop Iran's oil exports

Fri, 11 Apr 2025 15:59:24 +0000

Why M&T Bank Corporation (MTB) is a Great Dividend Stock Right Now

Fri, 11 Apr 2025 15:45:09 +0000

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

M&T Bank Corporation in Focus

Headquartered in Buffalo, M&T Bank Corporation (MTB) is a Finance stock that has seen a price change of -16.04% so far this year. The company is paying out a dividend of $1.35 per share at the moment, with a dividend yield of 3.42% compared to the Banks - Major Regional industry's yield of 4.19% and the S&P 500's yield of 1.7%.

Looking at dividend growth, the company's current annualized dividend of $5.40 is up 0.9% from last year. Over the last 5 years, M&T Bank Corporation has increased its dividend 3 times on a year-over-year basis for an average annual increase of 5.45%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. M&T Bank's current payout ratio is 36%. This means it paid out 36% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, MTB expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $16.22 per share, representing a year-over-year earnings growth rate of 9.01%.

Bottom Line

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MTB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

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M&T Bank Corporation (MTB): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

East West Bancorp (EWBC) Could Be a Great Choice

Fri, 11 Apr 2025 15:45:09 +0000

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

East West Bancorp in Focus

Based in Pasadena, East West Bancorp (EWBC) is in the Finance sector, and so far this year, shares have seen a price change of -25.68%. Currently paying a dividend of $0.6 per share, the company has a dividend yield of 3.37%. In comparison, the Banks - West industry's yield is 3.42%, while the S&P 500's yield is 1.7%.

Looking at dividend growth, the company's current annualized dividend of $2.40 is up 9.1% from last year. Over the last 5 years, East West Bancorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.60%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. East West Bancorp's current payout ratio is 26%, meaning it paid out 26% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for EWBC for this fiscal year. The Zacks Consensus Estimate for 2025 is $8.65 per share, with earnings expected to increase 4.22% from the year ago period.

Bottom Line

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, EWBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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East West Bancorp, Inc. (EWBC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Why DuPont de Nemours (DD) is a Top Dividend Stock for Your Portfolio

Fri, 11 Apr 2025 15:45:09 +0000

DuPont de Nemours in Focus

Based in Wilmington, DuPont de Nemours (DD) is in the Basic Materials sector, and so far this year, shares have seen a price change of -24.38%. Currently paying a dividend of $0.41 per share, the company has a dividend yield of 2.84%. In comparison, the Chemical - Diversified industry's yield is 2.65%, while the S&P 500's yield is 1.7%.

Looking at dividend growth, the company's current annualized dividend of $1.64 is up 7.9% from last year. Over the last 5 years, DuPont de Nemours has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.09%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. DuPont de Nemours's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for DD for this fiscal year. The Zacks Consensus Estimate for 2025 is $4.38 per share, with earnings expected to increase 7.62% from the year ago period.

Bottom Line

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, DD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DuPont de Nemours, Inc. (DD): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Are You Looking for a High-Growth Dividend Stock?

Fri, 11 Apr 2025 15:45:09 +0000

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

The Bank of New York Mellon Corporation in Focus

Based in New York, The Bank of New York Mellon Corporation (BK) is in the Finance sector, and so far this year, shares have seen a price change of -0.29%. The company is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 2.45% compared to the Banks - Major Regional industry's yield of 4.19% and the S&P 500's yield of 1.7%.

Looking at dividend growth, the company's current annualized dividend of $1.88 is up 5.6% from last year. Over the last 5 years, The Bank of New York Mellon Corporation has increased its dividend 4 times on a year-over-year basis for an average annual increase of 10.29%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. The Bank of New York Mellon's current payout ratio is 31%, meaning it paid out 31% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BK for this fiscal year. The Zacks Consensus Estimate for 2025 is $6.81 per share, which represents a year-over-year growth rate of 12.94%.

Bottom Line

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BK is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

HSBC (HSBC) Could Be a Great Choice

Fri, 11 Apr 2025 15:45:09 +0000

HSBC in Focus

HSBC (HSBC) is headquartered in London, and is in the Finance sector. The stock has seen a price change of -2.51% since the start of the year. The bank is currently shelling out a dividend of $1.79 per share, with a dividend yield of 14.89%. This compares to the Banks - Foreign industry's yield of 4.08% and the S&P 500's yield of 1.7%.

In terms of dividend growth, the company's current annualized dividend of $7.18 is up 76% from last year. HSBC has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 48.87%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. HSBC's current payout ratio is 30%. This means it paid out 30% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, HSBC expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $6.81 per share, which represents a year-over-year growth rate of 4.77%.

Bottom Line

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that HSBC is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

HSBC Holdings plc (HSBC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Bank of America (BAC) is a Top Dividend Stock Right Now: Should You Buy?

Fri, 11 Apr 2025 15:45:08 +0000

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Bank of America in Focus

Based in Charlotte, Bank of America (BAC) is in the Finance sector, and so far this year, shares have seen a price change of -18.43%. The nation's second-largest bank is currently shelling out a dividend of $0.26 per share, with a dividend yield of 2.9%. This compares to the Financial - Investment Bank industry's yield of 1.28% and the S&P 500's yield of 1.7%.

In terms of dividend growth, the company's current annualized dividend of $1.04 is up 4% from last year. Bank of America has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.84%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Bank of America's payout ratio is 32%, which means it paid out 32% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BAC for this fiscal year. The Zacks Consensus Estimate for 2025 is $3.64 per share, representing a year-over-year earnings growth rate of 10.98%.

Bottom Line

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BAC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Bank of America Corporation (BAC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

CenterPoint Energy (CNP) Could Be a Great Choice

Fri, 11 Apr 2025 15:45:08 +0000

CenterPoint Energy in Focus

Headquartered in Houston, CenterPoint Energy (CNP) is a Utilities stock that has seen a price change of 14.06% so far this year. Currently paying a dividend of $0.22 per share, the company has a dividend yield of 2.43%. In comparison, the Utility - Electric Power industry's yield is 3.08%, while the S&P 500's yield is 1.7%.

Looking at dividend growth, the company's current annualized dividend of $0.88 is up 8.6% from last year. Over the last 5 years, CenterPoint Energy has increased its dividend 4 times on a year-over-year basis for an average annual increase of 8.25%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, CenterPoint's payout ratio is 52%, which means it paid out 52% of its trailing 12-month EPS as dividend.

CNP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $1.75 per share, representing a year-over-year earnings growth rate of 8.02%.

Bottom Line

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CNP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

BankUnited, Inc. (BKU) Could Be a Great Choice

Fri, 11 Apr 2025 15:45:08 +0000

BankUnited, Inc. In Focus

Based in Miami Lakes, BankUnited, Inc. (BKU) is in the Finance sector, and so far this year, shares have seen a price change of -21.88%. The company is paying out a dividend of $0.29 per share at the moment, with a dividend yield of 3.89% compared to the Banks - Major Regional industry's yield of 4.19% and the S&P 500's yield of 1.7%.

In terms of dividend growth, the company's current annualized dividend of $1.16 is up 1.8% from last year. Over the last 5 years, BankUnited, Inc. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 6.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. BankUnited's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BKU expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $3.15 per share, representing a year-over-year earnings growth rate of 2.27%.

Bottom Line

For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BKU is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BankUnited, Inc. (BKU): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Fastenal Q1 Earnings Meet Expectations, Sales Top, Daily Sales Up Y/Y

Fri, 11 Apr 2025 15:45:00 +0000

Fastenal Company’s FAST first-quarter 2025 adjusted earnings came in line with the Zacks Consensus Estimate and on par year over year. On the other hand, net sales surpassed the consensus mark and grew year over year.

The top-line growth was attributable to improved customer contract signings over the past 12 months, which were partially offset by sluggish underlying business activity. The bottom line was adversely impacted by higher fleet and transportation costs, along with increased labor costs.

FAST stock lost 0.03% in the pre-market trading session on Friday, after the results’ announcement.

Fastenal’s Earnings & Sales in Detail

The company reported earnings per share (EPS) of 52 cents, which met the Zacks Consensus Estimate and remained flat year over year.

Net sales totaled $1.96 billion, topping the consensus mark of $1.95 billion by 0.5% and increasing 3.4% from the year-ago level.

Fastenal Company Price, Consensus and EPS Surprise

Fastenal Company price-consensus-eps-surprise-chart | Fastenal Company Quote

Daily sales of $31.1 million increased 5% year over year in the quarter despite one less selling day. Foreign exchange rates negatively impacted sales by 50 basis points (bps) compared with an immaterial impact in the year-ago quarter.

Unit sales growth in the quarter was driven by the growth in the number of customer sites spending $10K or more per month with Fastenal and, to a lesser degree, growth in average monthly sales per customer site across all customer spend categories.

Daily sales of Fasteners (mainly used for industrial production and accounted for approximately 30.3% of net sales) increased 1.1% year over year. Sales of Safety Supplies (22%) grew 7.1% daily. Sales of the Other Product Lines (47.7%) also increased 6.7% year over year.

On an end-market basis, the daily sales rate of Heavy Manufacturing (which accounted for approximately 43.4% of net sales) rose 4.8% year over year. The daily sales rate of Other Manufacturing (33%) grew 9.7% compared with the prior year.

Furthermore, the daily sales of Non-Residential Construction declined 3.4% compared with the prior-year quarter, while the same for Other End-Markets grew 0.8% in the same time frame.

Daily sales through weighted FMI devices grew 9.5% for the first quarter, representing 43.3% of net sales. Daily sales through eProcurement and eCommerce were up 17.2% and 0.2%, respectively.

The company’s Digital Footprint increased to 61% of sales from 59.2% in the year-ago period. Fastenal anticipates that 66- 68% of its sales volume will flow through Digital Footprint at some point in 2025.

Customer Sites Detail of FAST

Customer sites represent the number of customer locations served by the company’s in-market network. In terms of manufacturing sales, customer sites declined in the first quarter to 43,259 from 44,710 in the year-ago quarter. Manufacturing sales increased to $1.49 billion, up year over year from $1.44 billion.

In terms of non-manufacturing sales, customer sites declined to 57,785 from 64,934 reported a year ago. Non-manufacturing sales increased to $466.4 million, up year over year from $454 million.

Margin Discussion of Fastenal

The gross margin was 45.1% in the reported quarter, down 40 bps year over year. This downside was due to an unfavorable customer/product mix and higher fleet/freight costs, with offsets related to increased supplier spend and incentives. The company expects a narrower gap to the full year based on easier comparisons and benefits from inventory investments in the back half of 2025.

Selling, general and administrative expenses – as a percentage of net sales – increased to 25% from 24.9% reported in the year-ago quarter due to one less selling day and increased employee-based compensation and occupancy expenses. Our model predicted SG&A expenses of 24.9% of net sales for the quarter.

Operating margin was 20.1% (lower than our projection of 20.4%), down 50 bps from a year ago.

FAST’s Financials

As of March 31, 2024, Fastenal had cash and cash equivalents of $231.8 million, down from $255.8 million as of Dec. 31, 2023. The long-term debt in the first quarter of 2025-end was $125 million, in line with 2024-end. During the quarter, FAST returned $246.7 million to its shareholders in the form of dividends.

In the first quarter of 2025, net cash provided by operating activities totaled $262.2 million, down from the year-ago period’s reported value of $335.6 million.

FAST’s Zacks Rank & Key Picks

Fastenal currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.

The Gap, Inc. GAP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company has a trailing four-quarter negative earnings surprise of 77.5%, on average. The stock has lost 16.6% in the past six months. The Zacks Consensus Estimate for The Gap’s fiscal 2025 sales and EPS indicates growth of 1.6% and 7.7%, respectively, from the year-ago period’s levels.

Deckers Outdoor Corporation DECK currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 36.8%, on average. The stock has moved down 33.3% in the past six months.

The Zacks Consensus Estimate for Deckers’ fiscal 2026 sales and EPS indicates growth of 10.1% and 12.2%, respectively, from the year-ago period’s levels.

Sprouts Farmers Market, Inc. SFM currently carries a Zacks Rank of 2. SFM has a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 34.5% in the past six months.

The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 11.9% and 24%, respectively, from the year-ago period’s levels.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Fastenal Company (FAST): Free Stock Analysis Report

Deckers Outdoor Corporation (DECK): Free Stock Analysis Report

The Gap, Inc. (GAP): Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Artificial Intelligence Fuels Genpact's Growth, High Talent Costs Ail

Fri, 11 Apr 2025 15:41:00 +0000

Genpact G stock has gained 52% in a year, outperforming the industry's 3.3% fall and the 8.4% increase of the Zacks S&P 500 composite.

G reported impressive fourth-quarter 2024 results. Quarterly EPS of 91 cents surpassed the consensus estimate by 5.8% and grew 11% year over year. Revenues of $1.25 billion beat the consensus mark by 1.7% and increased 8.9% from the year-ago quarter.

How is Genpact Faring?

The company’s dominance in the Business Process Outsourcing services market is due to its expertise in business analytics, digital and consulting services. It is an industry-leading provider of the Industrial Internet of Things (IIoT), user experience, order and supply chain management, data engineering, digital content and risk management, direct procurement, logistics services, and more.

The company’s focus on integrating process, analytics, and digital technologies, coupled with its deep domain expertise, is creating a medium to win customers frequently. We anticipate customer base expansion, disciplined cost management, buyouts, and aggressive share repurchases to help the company retain its success in the long run.

Artificial Intelligence (AI) is vital for Genpact’s growth. Its patented approach, Digital Smart Enterprise Processes (Digital SEPs), improves clients’ business processes. Digital SEPs reduce inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.

In 2024, 2023, 2022 and 2021, G repurchased shares worth $252.7 million, $225.4 million, $214.1 million and $298.2 million, respectively. The company paid out $108 million, $100 million, $91.8 million and $80.5 million in dividends to its shareholders in 2024, 2023, 2022 and 2021, respectively. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.

Genpact's current ratio at the end of the fourth quarter of 2024 was 2.16, lower than the industry average of 2.29. Despite being lower than the industry average, the company maintains a current ratio of more than 1, indicating efficient short-term debt coverage abilities.

Image Source: Zacks Investment Research

G operates within a mature industry that has a slower rate of expansion, marginally above inflation levels. Additionally, the industry is saturated with much larger competitors than Genpact. While G is a solid player, it does not lead the market.

The outsourcing industry is labor-intensive and significantly dependent on foreign talent. Rising talent costs due to competition could hurt the industry’s growth, in turn, affecting Genpact.

Zacks Rank & Stocks to Consider

G has a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Affirm AFRM and Baidu, Inc. BIDU.

Affirm sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM has a long-term earnings growth expectation of 36.2%. It delivered a trailing four-quarter earnings surprise of 84.1% on average.

Baidu currently flaunts a Zacks Rank of 1.

BIDU has a long-term earnings growth expectation of 4.2%. It delivered a trailing four-quarter earnings surprise of 19.1% on average.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

RRC vs. VNOM: Which Stock Is the Better Value Option?

Fri, 11 Apr 2025 15:40:09 +0000

Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either Range Resources (RRC) or Viper Energy Partners (VNOM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Range Resources is sporting a Zacks Rank of #2 (Buy), while Viper Energy Partners has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RRC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

RRC currently has a forward P/E ratio of 8.77, while VNOM has a forward P/E of 20.63. We also note that RRC has a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VNOM currently has a PEG ratio of 3.

Another notable valuation metric for RRC is its P/B ratio of 1.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VNOM has a P/B of 1.99.

These are just a few of the metrics contributing to RRC's Value grade of B and VNOM's Value grade of F.

RRC sticks out from VNOM in both our Zacks Rank and Style Scores models, so value investors will likely feel that RRC is the better option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

QFIN vs. CLMB: Which Stock Should Value Investors Buy Now?

Fri, 11 Apr 2025 15:40:09 +0000

Investors interested in stocks from the Technology Services sector have probably already heard of Qifu Technology, Inc. (QFIN) and Climb Global Solutions (CLMB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Qifu Technology, Inc. and Climb Global Solutions are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

QFIN currently has a forward P/E ratio of 5.30, while CLMB has a forward P/E of 19.27. We also note that QFIN has a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CLMB currently has a PEG ratio of 1.61.

Another notable valuation metric for QFIN is its P/B ratio of 1.74. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLMB has a P/B of 5.29.

These metrics, and several others, help QFIN earn a Value grade of A, while CLMB has been given a Value grade of C.

Both QFIN and CLMB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that QFIN is the superior value option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

STNE or PYCR: Which Is the Better Value Stock Right Now?

Fri, 11 Apr 2025 15:40:09 +0000

Investors interested in Internet - Software stocks are likely familiar with StoneCo Ltd. (STNE) and Paycor HCM, Inc. (PYCR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

StoneCo Ltd. has a Zacks Rank of #1 (Strong Buy), while Paycor HCM, Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that STNE likely has seen a stronger improvement to its earnings outlook than PYCR has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

STNE currently has a forward P/E ratio of 8.69, while PYCR has a forward P/E of 39.56. We also note that STNE has a PEG ratio of 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PYCR currently has a PEG ratio of 2.05.

Another notable valuation metric for STNE is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PYCR has a P/B of 3.12.

These metrics, and several others, help STNE earn a Value grade of B, while PYCR has been given a Value grade of F.

STNE has seen stronger estimate revision activity and sports more attractive valuation metrics than PYCR, so it seems like value investors will conclude that STNE is the superior option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

GIL or LULU: Which Is the Better Value Stock Right Now?

Fri, 11 Apr 2025 15:40:09 +0000

Investors interested in Textile - Apparel stocks are likely familiar with Gildan Activewear (GIL) and Lululemon (LULU). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Gildan Activewear has a Zacks Rank of #2 (Buy), while Lululemon has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GIL likely has seen a stronger improvement to its earnings outlook than LULU has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

GIL currently has a forward P/E ratio of 11.54, while LULU has a forward P/E of 17.13. We also note that GIL has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LULU currently has a PEG ratio of 2.15.

Another notable valuation metric for GIL is its P/B ratio of 4.21. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LULU has a P/B of 7.20.

These metrics, and several others, help GIL earn a Value grade of B, while LULU has been given a Value grade of C.

GIL has seen stronger estimate revision activity and sports more attractive valuation metrics than LULU, so it seems like value investors will conclude that GIL is the superior option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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lululemon athletica inc. (LULU): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

PRDO vs. LOPE: Which Stock Is the Better Value Option?

Fri, 11 Apr 2025 15:40:09 +0000

Investors looking for stocks in the Schools sector might want to consider either Perdoceo Education (PRDO) or Grand Canyon Education (LOPE). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Right now, Perdoceo Education is sporting a Zacks Rank of #2 (Buy), while Grand Canyon Education has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PRDO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

PRDO currently has a forward P/E ratio of 10.69, while LOPE has a forward P/E of 19.71. We also note that PRDO has a PEG ratio of 0.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LOPE currently has a PEG ratio of 1.31.

Another notable valuation metric for PRDO is its P/B ratio of 1.76. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LOPE has a P/B of 6.33.

These are just a few of the metrics contributing to PRDO's Value grade of A and LOPE's Value grade of C.

PRDO sticks out from LOPE in both our Zacks Rank and Style Scores models, so value investors will likely feel that PRDO is the better option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Perdoceo Education Corporation (PRDO): Free Stock Analysis Report

Grand Canyon Education, Inc. (LOPE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

CON vs. MEDP: Which Stock Is the Better Value Option?

Fri, 11 Apr 2025 15:40:08 +0000

Investors looking for stocks in the Medical Services sector might want to consider either Concentra Group (CON) or Medpace (MEDP). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Concentra Group and Medpace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CON has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CON currently has a forward P/E ratio of 15.24, while MEDP has a forward P/E of 23.13. We also note that CON has a PEG ratio of 2.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MEDP currently has a PEG ratio of 3.14.

Another notable valuation metric for CON is its P/B ratio of 9.24. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MEDP has a P/B of 10.63.

Based on these metrics and many more, CON holds a Value grade of B, while MEDP has a Value grade of C.

CON has seen stronger estimate revision activity and sports more attractive valuation metrics than MEDP, so it seems like value investors will conclude that CON is the superior option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Concentra Group Holdings Parent, Inc. (CON): Free Stock Analysis Report

Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

GHLD or SOFI: Which Is the Better Value Stock Right Now?

Fri, 11 Apr 2025 15:40:08 +0000

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Guild Holdings Company (GHLD) or SoFi Technologies, Inc. (SOFI). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Guild Holdings Company has a Zacks Rank of #2 (Buy), while SoFi Technologies, Inc. has a Zacks Rank of #3 (Hold). This means that GHLD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GHLD currently has a forward P/E ratio of 8.19, while SOFI has a forward P/E of 41.84. We also note that GHLD has a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SOFI currently has a PEG ratio of 1.56.

Another notable valuation metric for GHLD is its P/B ratio of 0.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SOFI has a P/B of 1.77.

These are just a few of the metrics contributing to GHLD's Value grade of B and SOFI's Value grade of F.

GHLD has seen stronger estimate revision activity and sports more attractive valuation metrics than SOFI, so it seems like value investors will conclude that GHLD is the superior option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Guild Holdings Company (GHLD): Free Stock Analysis Report

SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

TAP vs. SAM: Which Stock Is the Better Value Option?

Fri, 11 Apr 2025 15:40:08 +0000

Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Molson Coors Brewing (TAP) or Boston Beer (SAM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Molson Coors Brewing has a Zacks Rank of #1 (Strong Buy), while Boston Beer has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that TAP likely has seen a stronger improvement to its earnings outlook than SAM has recently. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

TAP currently has a forward P/E ratio of 9.42, while SAM has a forward P/E of 23.20. We also note that TAP has a PEG ratio of 1.55. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SAM currently has a PEG ratio of 1.92.

Another notable valuation metric for TAP is its P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAM has a P/B of 3.01.

These are just a few of the metrics contributing to TAP's Value grade of A and SAM's Value grade of D.

TAP sticks out from SAM in both our Zacks Rank and Style Scores models, so value investors will likely feel that TAP is the better option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Molson Coors Beverage Company (TAP): Free Stock Analysis Report

The Boston Beer Company, Inc. (SAM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

TCBI vs. CFR: Which Stock Should Value Investors Buy Now?

Fri, 11 Apr 2025 15:40:08 +0000

Investors looking for stocks in the Banks - Southwest sector might want to consider either Texas Capital (TCBI) or Cullen/Frost Bankers (CFR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Texas Capital has a Zacks Rank of #2 (Buy), while Cullen/Frost Bankers has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TCBI likely has seen a stronger improvement to its earnings outlook than CFR has recently. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

TCBI currently has a forward P/E ratio of 10.71, while CFR has a forward P/E of 12.07. We also note that TCBI has a PEG ratio of 0.72. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CFR currently has a PEG ratio of 4.25.

Another notable valuation metric for TCBI is its P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CFR has a P/B of 1.83.

These are just a few of the metrics contributing to TCBI's Value grade of A and CFR's Value grade of F.

TCBI sticks out from CFR in both our Zacks Rank and Style Scores models, so value investors will likely feel that TCBI is the better option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Texas Capital Bancshares, Inc. (TCBI): Free Stock Analysis Report

Cullen/Frost Bankers, Inc. (CFR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

BMO vs. IBN: Which Stock Is the Better Value Option?

Fri, 11 Apr 2025 15:40:08 +0000

Investors looking for stocks in the Banks - Foreign sector might want to consider either Bank of Montreal (BMO) or ICICI Bank Limited (IBN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Bank of Montreal has a Zacks Rank of #2 (Buy), while ICICI Bank Limited has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that BMO likely has seen a stronger improvement to its earnings outlook than IBN has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

BMO currently has a forward P/E ratio of 10.92, while IBN has a forward P/E of 18.64. We also note that BMO has a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IBN currently has a PEG ratio of 1.41.

Another notable valuation metric for BMO is its P/B ratio of 1.16. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, IBN has a P/B of 2.99.

Based on these metrics and many more, BMO holds a Value grade of B, while IBN has a Value grade of F.

BMO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BMO is likely the superior value option right now.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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ICICI Bank Limited (IBN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

AXIL Brands Stock Price Decreases 2.2% as Earnings Decline Y/Y in Q3

Fri, 11 Apr 2025 15:39:00 +0000

Shares of AXIL Brands, Inc. AXIL have fallen 2.2% since reporting results for the third quarter of fiscal 2025. This compares with the S&P 500 index’s 7.8% growth over the same time frame. Over the past month, the stock has lost 37%, notably underperforming the S&P 500’s 2.6% decline. The sharp underperformance reflects investor reaction to AXIL’s recent results and broader market dynamics.

In the third quarter of fiscal quarter, AXIL reported revenues of $6.92 million, a 7% increase from $6.47 million in the prior-year quarter. Net income, however, declined 26.1% to $0.6 million from $0.8 million a year earlier. Diluted earnings per share (EPS) were 7 cents, down from 4 cents in the comparable period of 2024. Notably, this reflects a reversal from the prior-year profitability trends despite the rise in revenues. The company’s adjusted EBITDA stood at $0.9 million for the quarter, a sharp turnaround from a negative $11,052 a year earlier, signaling improved operational efficiency despite softer bottom-line results.

AXIL Brands, Inc. Price, Consensus and EPS Surprise

AXIL Brands, Inc. price-consensus-eps-surprise-chart | AXIL Brands, Inc. Quote

Operating Metrics & Business Segments

AXIL Brands’ hearing enhancement and protection segment drove the bulk of sales, contributing $6.45 million or roughly 93% to quarterly revenues, up from $5.99 million last year. The segment also delivered $4.71 million in gross profit. Meanwhile, the hair and skin care segment reported essentially flat revenues of $0.5 million and gross profit of $0.3 million. Segment-level asset growth was modest, with consolidated total assets at $12.95 million, up from $10.97 million as of May 31, 2024.

Gross profit improved to $4.97 million from $4.62 million, reflecting a margin expansion to 71.7% from 71.5% in the prior-year period. Cost of sales increased 6% year over year to $1.96 million, largely in line with higher sales volumes.

Operating expenses totaled $4.38 million, down 7.3% from the prior year due to lower advertising costs and a shift to targeted marketing. Still, stock-based compensation surged to $0.3 million from $59,099 a year earlier. Notably, adjusted EBITDA as a percentage of sales rose to 12.9% from the negative territory last year.

The company’s cash position strengthened considerably, with cash rising to $4.74 million from $3.25 million at the end of the previous fiscal year. The operating cash flow improved sharply to $1.73 million for the nine months ended Feb. 28, 2025, from $339,323 in the prior-year period. This increase was mainly due to inventory optimization and accounts payable forgiveness of approximately $220,000.

Management Commentary

Management acknowledged the impacts of reduced advertising spending in earlier quarters, which weighed on direct-to-consumer sales. However, management emphasized that the company saw stronger performance in the third quarter, thanks to the timing of post-Thanksgiving holiday sales and expanded distribution channels. CEO Jeff Toghraie expressed confidence in AXIL’s ability to navigate market headwinds, and highlighted initiatives aimed at expanding geographic reach and enhancing cost efficiency through domestic manufacturing capabilities.

Management has noted that the company has not yet fully realized the benefits of its recent geographic expansion and new product lines. In the quarter, AXIL Brands incurred approximately $195,000 in consulting fees, primarily related to these strategic efforts, including about $116,000 in stock-based compensation.

Factors Influencing the Headline Numbers

Several factors shaped the latest quarterly performance. The company experienced higher direct-to-consumer sales due to favorable seasonal demand. AXIL saw a shift toward distributor sales, especially in the hearing enhancement and protection segment, which contributed to higher volumes but carried lower margins.

On the expense side, operating costs benefited from the company’s deliberate reduction in advertising spend, while consulting fees increased as AXIL Brands pursued new market opportunities. Stock-based compensation also rose significantly, which impacted overall profitability.

Additionally, while revenues increased year over year, net income was pressured by an unfavorable comparison to the prior year’s income tax benefit of $0.8 million versus tax expenses of $53,085 this quarter.

View

The company expressed optimism about maintaining a positive cash flow and net income for the fiscal year ending May 31, 2025. It expects current cash balances, along with operating cash flow, to sufficiently meet working capital requirements for at least the next 12 months. The company also highlighted ongoing investments to enhance manufacturing resilience and mitigate geopolitical risks tied to tariffs and international supply chains.

Other Developments

In the quarter, AXIL completed a reverse stock split at a ratio of 1-for-20, which became effective on Jan. 16, 2024. Additionally, the company converted 3.36 million shares of its Series A Preferred Stock into 168,000 shares of common stock. Management confirmed that repurchased and converted preferred shares were considered retired as of March 24, 2025, streamlining the company’s capital structure.

AXIL Brands accelerated its supply-chain transition strategy in response to elevated tariffs and geopolitical risks. The relocation of senior manufacturing leadership to the United States and the establishment of domestic facilities were highlighted as key steps to improve cost stability and responsiveness to customer demand over time.

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Zacks Investment Research

Why Camden Property Remains a Solid Hold in the Current Market

Fri, 11 Apr 2025 15:39:00 +0000

Camden Property Trust CPT is well-poised to gain from the healthy renter demand for its residential properties in the high-growth markets of the United States amid favorable demographic trends, a healthy job market and high homeownership costs. The company’s diversification efforts in urban and suburban markets are likely to drive stable revenues.

CPT’s focus on leveraging technology to drive margin expansion is encouraging. A strong development pipeline backed by a healthy balance sheet position augurs well for long-term growth.

However, the elevated supply of rental units in certain markets is likely to fuel competition, impeding the rent growth momentum to some extent. High interest rates add to its woes.

What’s Supporting CPT Stock?

Camden focuses on high-growth markets with strong resident demographics, supporting consistent rental income. These markets are marked by robust job creation in high-wage industries and positive in-migration trends. Camden has a diverse portfolio with a superior product mix of A/B quality properties in urban and suburban markets. Per the company’s February operating update, CPT has witnessed better occupancy and blended lease rate growth since the beginning of the first quarter of 2025 through Feb. 27 in comparison to the fourth quarter of 2024.

Camden is leveraging technology, scale and organizational capabilities to drive margin expansion in its portfolio. Such efforts are likely to bring operational efficiency and reduce costs, aiding NOI growth. In 2024, the company’s efforts to this effect generated an annual NOI amounting to $55 million.

Camden has a healthy balance sheet with ample liquidity, placing it well to capitalize on long-term growth opportunities. As of Dec. 31, 2024, the company had more than $1.0 billion in liquidity, including $21 million in cash and cash equivalents and around $1.0 billion available under its unsecured credit facility.

CPT has a well-laddered debt maturity schedule with a weighted average year to maturity of 6.2 years. In addition, in the fourth quarter of 2024, its annualized net debt to annualized adjusted EBITDAre was 3.8 times and unencumbered assets to NOI was 93.5%, providing scope for tapping the additional secured debt capital if required.

Solid dividend payouts are arguably the biggest enticement for REIT investors, and Camden remains committed to shareholder value accretion. In the past five years, it has increased its dividend five times, and the annualized dividend growth rate for this period is 6.21%. Backed by strong operating fundamentals and solid balance sheet strength, we expect the company’s dividend distribution to be sustainable in the upcoming period.

What’s Hurting CPT Stock?

Camden is likely to continue facing challenges in attracting renters, particularly in markets where supply remains elevated — though management anticipates a gradual moderation over time. Additionally, competition from alternative housing options, including other rental apartments, condominiums and single-family homes, puts pressure on the company’s ability to raise rents and maintain high occupancy levels, somewhat constraining its growth trajectory.

Despite the Federal Reserve announcing rate cuts late in 2024, the interest rate is still high and is a concern for Camden. Elevated rates imply a higher borrowing cost for the company, which would affect its ability to purchase or develop real estate. The company has a substantial debt burden, and its total debt as of Dec. 31, 2024 was approximately $3.49 billion.

Over the past year, shares of this Zacks Rank #3 (Hold) company have rallied 10.3% compared with the industry's rise of 2.1%. However, analysts do not seem to have an overtly bullish view on the stock now, with the Zacks Consensus Estimate for 2025 FFO per share remaining unchanged over the past month at $6.76.

Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower Inc. WELL and Cousins Properties Incorporated CUZ. Welltower and Cousins Properties carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Welltower’s 2025 FFO per share is pegged at $4.95, which indicates year-over-year growth of 14.6%.

The Zacks Consensus Estimate for Cousins’ 2025 FFO per share is pegged at $2.79, which implies a year-over-year increase of 3.7%.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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Zacks Investment Research

SNCR Stocks Climbs 12% in 3 Months: Is Holding the Right Move?

Fri, 11 Apr 2025 15:38:00 +0000

Synchronoss Technologies SNCR shares have returned 12.2% over the past three months, outperforming the Zacks Computer and Technology sector and the Internet - Software industry’s declines of 11.6 % and 6.5%, respectively.

It has also outperformed its industry peers, including Appian APPN, BlackBerry BB and Five9 FIVN.

Over the same time frame, shares of Appian, BlackBerry and Five9 have fallen 17.8%, 20.3% and 38.6%, respectively.

The recent rally in SNCR shares can be attributed to a strong fourth-quarter 2024 performance, supported by growing cloud subscriber base, particularly its Personal Cloud solution. Long-term contract extensions and operational stability further validate Synchronoss’ improving fundamentals. Together, these factors signal rising market confidence and support the stock's upward movement.

Synchronoss Technologies, Inc. Price and Consensus

Synchronoss Technologies, Inc. price-consensus-chart | Synchronoss Technologies, Inc. Quote

Expanding Cloud Market Creates Tailwinds for SNCR

Synchronoss Personal Cloud is a robust software platform designed to help global network operators and mobile insurance providers boost revenues, deepen customer engagement and enhance digital security. With AI-powered features that enrich the user experience, SNCR enables operators to unlock revenue opportunities, reduce innovation costs and build stronger customer loyalty through seamless and secure content management.

The company’s recent performance underscores the growing relevance of its cloud solutions. In the fourth quarter of 2024, Synchronoss reported a 6% year-over-year increase in cloud subscribers, a key contributor to overall revenue growth. This uptick reflects rising demand for its Personal Cloud services, bolstered by long-term customer contracts, partnerships and consistent product innovation. SNCR expects the global Personal Cloud market to grow, seeing a compound annual growth rate of 25% through 2029.

Further reinforcing its position in the market, Synchronoss launched an enhanced version of its Personal Cloud platform in the third quarter of 2024. The update introduced features such as “Memories” and the AI-enhanced “Genius,” enabling users to curate, share and optimize digital content effortlessly. These enhancements aim to boost user engagement and reduce churn for service providers.

Adding to its innovation pipeline, SNCR recently launched Capsyl Cloud, a turnkey personal cloud platform designed for mobile operators and broadband service providers. This solution enables rapid deployment of secure and scalable cloud services, enhancing user engagement and creating revenue opportunities.

Growing Partner Base to Drive Synchronoss’ Performance

SNCR continues to solidify its market position through partnerships. The company collaborates with leading telecom providers such as AT&T, Verizon and SoftBank to deliver its Personal Cloud solutions, positioning it for growth.

A key highlight is Synchronoss’ growing relationship with SoftBank, which opens doors to the broader integration of its cloud platform across a diverse portfolio of SoftBank-owned brands and services, boosting the company’s international footprint and growth potential.

Further strengthening its domestic footprint, SNCR secured a three-year contract extension in December 2024 with a major U.S. telecom operator. This extension not only highlights the trust of major providers in Synchronoss but also provides predictable revenue streams and long-term stability.

SNCR’s Revenue & Earnings Estimates Show Mixed Trend

The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $42.94 million, indicating a 1.2% year-over-year decline.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 39 cents per share, up by a penny over the past 30 days. The consensus mark indicates a year-over-year decrease of 18.75%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $174.40 million, indicating a year-over-year increase of 0.46%.

The consensus mark for 2025 earnings is pegged at $1.58 per share, up 8.2% over the past 30 days, implying a year-over-year decline of 3.07%.

Conclusion: Warrants a Hold

Given Synchronoss’ steady momentum in cloud subscriber growth, expanding partnerships with major telecom providers and its investments in AI-driven product innovation, the company shows promising long-term potential. However, a mixed trend in analyst estimates introduces a note of caution. Based on this information, it is currently recommended for investors to take a prudent hold position.

Currently, SNCR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Synchronoss Technologies, Inc. (SNCR): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Lower NII, Higher Costs to Hurt Citizens Financial's Q1 Earnings

Fri, 11 Apr 2025 15:36:00 +0000

Citizens Financial Group, Inc. CFG is scheduled to report its first-quarter 2025 results on April 16, 2025, before the opening bell. The bank’s first-quarter 2025 revenues are expected to have declined from the year-ago quarter’s reported level, while earnings are expected to have improved.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the fourth quarter, CFG witnessed a rise in non-interest income, along with reduced expenses. However, lower net interest income (NII) and declining loan and deposit balances were major headwinds.

The company’s earnings missed the Zacks Consensus Estimate twice, matched once and surpassed on one occasion. On Average, the negative surprise is 3.05%.

Citizens Financial Group, Inc. Price and EPS Surprise

Citizens Financial Group, Inc. price-eps-surprise | Citizens Financial Group, Inc. Quote

Factors to Influence CFG’s Q1 Earnings

NII: The Federal Reserve kept interest rates unchanged at 4.25-4.5% in the first quarter of 2025, given sticky inflation and the impacts of Trump’s tariff on the economy. This is likely to have had a positive effect on CFG’s NII, given relatively higher yields on interest-earning assets, partially offset by higher funding costs.

Management expects NII to decline 1.5-2.5% in the first quarter of 2025 from the fourth quarter’s reported figure of $1.34 million.

The Zacks Consensus Estimate for NII for the first quarter of 2025 is pegged at $1.39 billion, indicating a 1.8% decline from the prior quarter’s reported figure. Our estimate for the metric is the same as the Zacks Consensus Estimate.

Loans: In the first quarter, the lending scenario was not very impressive as Trump’s tariff plan resulted in uncertainty across the markets. Per the Federal Reserve’s latest data, demand for commercial and industrial loans, and consumer loans in the first two months of the quarter was decent. As a result, CFG’s lending activities are expected to have seen some improvements.

The Zacks Consensus Estimate for average interest-earning assets is pegged at $196 billion, indicating a marginal decline from the prior quarter’s reported figure. We estimate the metric to be $195.3 billion.

Non-Interest Income: Despite the Fed's interest rate cuts, mortgage rates did not decrease significantly and hovered around the 7% mark. As such, refinancing activities and origination volumes did not experience significant improvement. Thus, Citizens Financial is likely to have witnessed lower mortgage banking fees in the quarter-to-be-reported.

The Zacks Consensus Estimate for mortgage banking fees is pegged at $55.5 million, indicating a 7.8% decline from the prior quarter’s reported figure. Our estimate for the metric is pegged at $53.9 million.

The quarter witnessed heightened market volatility and client activity because of uncertainty related to Trump’s tariff plans. Also, the performance of the equity markets was subdued. Hence, Citizens Financial trust and investment services fees are likely to have recorded some improvements in the quarter to be reported. The Zacks Consensus Estimate for trust and investment services fees is pegged at $75.9 million, indicating a marginal increase from the previous quarter’s reported figure.

Global mergers and acquisitions (M&As) in the first quarter of 2025 were less impressive than previously expected. While deal value and volume rose marginally in the quarter, this was majorly led by the Asia Pacific region. The year started on an extremely positive note, with the expectations of robust IB performance on the back of the Trump administration being business-friendly, and the likelihood of tax cuts and deregulations.

However, none of these materialized, and the rebound fizzled as ambiguity over the tariff and ensuing trade war resulted in extreme market volatility. These developments have led to economic uncertainty, with data indicating a slowdown in the U.S. economy and mounting inflationary pressure. Hence, amid such a backdrop, companies started rethinking their M&A plans despite stabilizing rates and having significant investible capital. As such, CFG’s capital markets’ growth is expected to have been decent.

The Zacks Consensus Estimate for capital markets fees is pegged at $113.9 million, indicating a sequential decline of 5.8%. We estimate the metric to be $120.6 million.

The Zacks Consensus Estimate for the service charge and fee revenues is pegged at $106.5 million, indicating a decline of 2.3% from the prior quarter’s reported level. Our estimate for the metric is pegged at $108.5 million.

The Zacks Consensus Estimate for card fees is pegged at $98.3 million, indicating a 1.3% decline from the prior quarter’s reported figure. We estimate the metric to reach $95 million.

Management expects fee income in the first quarter to be down 2% from the fourth-quarter 2024 reported level. Further, the Zacks Consensus Estimate for the metric is pegged at $553.9 million, indicating a 3.5% sequential fall. Our estimate for the metric is pegged at $562 million.

Expenses: Though CFG is making efforts to control expenses and generate positive operating leverage, costs are likely to remain elevated due to the opening of private banking offices, franchise expansion nationally and investments in newer technological advancements.

Management projects adjusted non-interest expenses to rise 1-5-2% from the fourth-quarter 2024 reported level.

Asset Quality: The company is likely to have set aside a substantial amount of money for potential bad loans, given the expectations of a higher for longer interest rate backdrop and tariff-related uncertainty.

Our estimate for the non-accrual loans is pegged at $1.59 billion, indicating an increase of 8.1% from the year-ago level.

What Our Model Unveils for CFG

Per our proven model, the chances of Citizen Financial beating estimates this time are low. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Citizen Financial has an Earnings ESP of -0.27%.

Zacks Rank: CFG currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter earnings of 75 cents has been unchanged in the past seven days. The figure indicates an increase of 15.4% from the year-ago reported figure.

The consensus estimate for first-quarter 2025 revenues is pegged at $1.94 billion, indicating a decline of 0.9% from the year-ago reported figure.

Stocks to Consider

Here are a couple of bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.

The Earnings ESP for First Horizon Corporation FHN is +3.80% and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2025 results on April 16.

Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has been unchanged at 40 cents.

Truist Financial TFC is scheduled to announce first-quarter 2025 results on April 17. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.15%.

Quarterly earnings estimates for TFC have remianed unchanged at 86 cents over the past week.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Best Natural and Organic Food Stocks to Buy Now in 2025

Fri, 11 Apr 2025 15:35:00 +0000

An updated edition of the Feb. 20, 2025 article.

Natural foods have moved well beyond the shelves of specialty stores and into the daily lives of consumers. What’s behind this shift? A growing awareness of health, wellness and environmental responsibility. Shoppers today, across all age groups, are seeking options that are not just nutritious but also produced with care for people and the planet. As a result, the natural foods industry is experiencing rapid growth. Clean ingredients, sustainable agriculture and ethical sourcing have become essential features of the modern food landscape.

More consumers are reaching for products that are transparent about their ingredients and made with minimal processing. Labels that read organic, non-GMO (genetically modified organisms) and preservative-free are gaining attention, and clean eating is no longer just a trend — it’s becoming the norm. Governments are also stepping in, tightening food labeling rules and promoting healthier eating habits. In turn, natural food brands are not only building stronger customer loyalty but are also successfully charging premium prices for products that deliver both trust and quality.

Companies like The Hain Celestial Group, Inc. HAIN, General Mills, Inc. GIS and Vital Farms, Inc. VITL are responding to the rising demand for organic, clean-label and ethically sourced foods. With consumers prioritizing transparency, sustainability and minimal processing, the market for natural foods continues to grow. Expanding farm networks, plant-based innovations and a focus on humane, eco-friendly production are shaping the industry's future.

The natural foods industry is set to evolve with continuous innovation and expanding product categories. Companies are investing in plant-based alternatives, functional foods enriched with vitamins and probiotics and sustainable farming technologies. E-commerce is also playing a crucial role in making natural foods more accessible, allowing consumers to shop for organic and gluten-free products with ease. The global healthy foods market is expected to reach $2.26 trillion by 2035.

If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as United Natural Foods, Inc. UNFI, Sprouts Farmers Market, Inc. SFM and Beyond Meat, Inc. BYND.

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3 Natural Food Stocks to Watch

United Natural stands as a prominent player in the natural food sector, serving as one of the largest distributors of organic and natural products in North America. Through its extensive network, UNFI supplies a vast array of products, including fresh produce, pantry staples, dairy alternatives and plant-based foods. With its diverse portfolio, the company caters to both retail giants and independent natural food stores, meeting the growing demand for cleaner, healthier eating options. United Natural Foods has made a strategic shift by realigning its wholesale business into two product-centric divisions — one of which is solely dedicated to natural, organic, specialty and fresh products.

As the natural food industry continues to expand, UNFI is well-positioned to capitalize on the shift toward organic, non-GMO and ethically sourced products. Its wide-reaching distribution capabilities and strategic partnerships allow the company to provide an extensive selection of natural and organic foods that appeal to health-conscious consumers. The company’s natural business continues to outperform industry trends, driven by strong volume growth and enhanced supplier collaborations. UNFI’s natural products business has become a clear driver of overall performance, with sales increasing more than 8% in the last reported quarter.

This Zacks Rank #2 (Buy) company is increasingly focusing on innovation and sustainability within the natural foods space. The company has committed to enhancing its supply-chain practices, reducing waste and supporting regenerative agriculture initiatives. UNFI is also working closely with suppliers to accelerate food innovation. Upgrades in automation and warehouse processes are leading to better order accuracy, less product waste and faster deliveries. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sprouts Farmers has been at the forefront of the natural and organic food movement, catering to health-conscious consumers seeking fresh, high-quality and ethically sourced products. The company’s commitment to fresh, organic and attribute-driven products sets it apart. This strategic positioning not only resonates with a growing base of wellness-focused consumers but also aligns with broader food industry trends favoring transparency, sustainability and nutritional value.

A key element of SFM’s strategy is its innovative product development and sourcing initiatives. In 2024 alone, the company introduced approximately 7,100 new items, including more than 300 under its private-label Sprouts Brand. Notable offerings include organic grass-fed meatballs, pasture-raised poultry and globally inspired Sprouts-branded items, such as Moroccan and al pastor-flavored chickpeas. These exclusive, trend-forward products cater to the evolving preferences of health-conscious consumers. The launch of its “Real Root” premium health and beauty line further reinforces the brand’s holistic approach to wellness, expanding its influence beyond the food aisle.

In addition to product innovation, this Zacks Rank #2 company excelled at enhancing customer engagement through strategic merchandising events and effective marketing campaigns. Seasonal events like the Summer Cherry Festival shine a spotlight on fresh, specialty items and educate consumers on better-for-you choices. This approach not only drove strong traffic across its channels but also contributed to its robust e-commerce growth, surpassing $1 billion in sales in 2024.

Beyond Meat has strategically realigned its product innovation to strengthen its appeal among health-conscious and natural-food-seeking consumers. A standout development in this direction is the launch of Beyond IV and the extended Beyond Steak line. These new offerings have been designed not only to deliver flavor and texture improvements but also to meet heightened consumer expectations around nutrition and ingredient transparency. These products have earned accreditations from respected health organizations, including the American Heart Association, American Diabetes Association and Clean Label Project.

Internationally, Beyond Meat’s health-focused positioning is finding resonance, particularly in markets like France, where a sizable portion of the population is actively reducing meat consumption. The launch of Beyond Steak in French retail builds on a robust lineup already in-market, including Beyond Mince and Beyond Sausage, all tailored to health-conscious consumers.

This Zacks Rank #2 company has taken a proactive stance, using nutritional credentials and transparent messaging to reposition its products as a better-for-you choice. By doubling down on natural and functional food innovation, the brand is not only aiming to win over skeptical customers but also elevate its products to a new standard that aligns more closely with organic and wellness-oriented trends in the food industry.

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General Mills, Inc. (GIS): Free Stock Analysis Report

The Hain Celestial Group, Inc. (HAIN): Free Stock Analysis Report

United Natural Foods, Inc. (UNFI): Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report

Beyond Meat, Inc. (BYND): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Gauging ACIW-NationsBenefits Deal: Investment Opportunity or Hype?

Fri, 11 Apr 2025 15:34:00 +0000

ACI Worldwide ACIW announced a partnership with NationsBenefits, a healthcare fintech and supplemental benefits company, to enhance health and retail benefits for millions of consumers.

The partnership will integrate ACI Worldwide's payment processing solutions with NationsBenefits' Benefits Mastercard Prepaid Card, enabling seamless transactions for eligible health plan members at participating retailers. This initiative is expected to increase retailer connectivity, broaden payment options, and ensure enhanced consumer security and compliance.

This collaboration underscores both companies' commitment to leveraging technology to improve consumer access to health-related products and services, reflecting a significant step forward in integrating healthcare benefits with advanced payment solutions.

NationsBenefits Deal to Boost ACIW’s Footprint

The partnership of ACI Worldwide, which is a global leader in payments technology, with NationsBenefits marks a strategic entry into the rapidly expanding healthcare payments ecosystem, positioning ACIW to capitalize on the high-growth supplemental benefits space. This collaboration broadens ACIW’s merchant footprint beyond traditional retail and places the company at the intersection of healthcare fintech and next-generation payment solutions.

ACI Worldwide, Inc. Price and Consensus

ACI Worldwide, Inc. price-consensus-chart | ACI Worldwide, Inc. Quote

Collaborating with a prominent player in the healthcare fintech space may enhance ACIW's competitive position, differentiating its offerings in the payment technology landscape. This partnership may catalyze long-term value creation and operational leverage across ACIW’s broader digital payments portfolio.

ACI Worldwide Outperforms Sector & Industry in a Year

ACIW shares have soared 55.1% over the trailing 12 months, significantly outperforming the broader Zacks Computer and Technology sector’s 1.4% return and the Zacks Computer - Software industry’s decline of 5.5%.

ACI Worldwide also outperformed other industry players such as Cadence Design Systems CDNS, PTC PTC and Adobe ADBE over the same timeframe.

Over the past year, shares of Cadence Design Systems, PTC and Adobe have declined 18.4%, 20.9%, and 27.7%, respectively.

The rise in the share price is driven by its standout 2024 performance, with revenues up 10% year over year and net income surging 67%. Strong growth across core segments, early contract wins and a bullish 2025 outlook reinforce investor confidence.

Early Contract Wins Set Stage for Robust 2025

ACI Worldwide's focus on completing contract renewals and new contract signings early in the year has been successful, allowing the company to shift its focus to reducing seasonal revenue fluctuations and ensuring new customer wins. This proactive approach has not only improved revenue visibility but also helped accelerate the pace of progress toward 2025.

ACIW also signed several significant contracts in 2024. In February 2025, it secured its largest-ever new logo and a major competitive takeaway win in the Asia Pacific region. This landmark deal, along with others, enabled the banking segment to secure net revenue contracts exceeding $50 million, which will directly contribute to first-quarter 2025 revenues. These early wins have firmly positioned the company for a strong start to the year.

Additionally, the earlier timing of the contract signing is expected to boost revenue contribution in the first half of 2025. ACIW anticipates recognizing 45% of its full-year revenues in the first half of 2025, whereas it recorded 43% in the first half of 2024.

ACIW Provides Optimistic 2025 View

ACI Worldwide’s strong bookings growth in 2024 has laid a solid foundation for the company to capitalize on growth opportunities. Management’s active progress on the 2025 pipeline deals reinforces its confidence in the full-year outlook.

For 2025, the company expects total revenues of $1.685-$1.715 billion, indicating 7-9% year-over-year growth. The Zacks Consensus Estimate for 2025 revenues is pegged at $1.7 billion, indicating year-over-year growth of 6.77%.

ACIW expects adjusted EBITDA of $480-$495 million, implying an increase of 3-6% over the 2024 performance.

The consensus mark for 2025 earnings is pegged at $2.80 per share, up 2.6% over the past 30 days, suggesting a year-over-year rise of 6.06%.

ACIW’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 161.34%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Zacks Rank

ACI Worldwide currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Adobe Inc. (ADBE): Free Stock Analysis Report

Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report

ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report

PTC Inc. (PTC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Decent Loan Demand to Aid U.S. Bancorp's Q1 Earnings, Lower NII to Ail

Fri, 11 Apr 2025 15:34:00 +0000

U.S. Bancorp USB is scheduled to report first-quarter 2025 results on April 16, 2025, before the opening bell. The company is expected to have witnessed year-over-year increases in quarterly revenues and earnings.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

In the fourth quarter, U.S. Bancorp benefited from higher non-interest income. However, a weak asset quality was concerning.

USB has an impressive earnings surprise history. Its earnings beat estimates in the trailing four quarters, the surprise being 1.79%, on average.

U.S. Bancorp Price and EPS Surprise

U.S. Bancorp price-eps-surprise | U.S. Bancorp Quote

Factors Influencing U.S. Bancorp’s Q1 Performance

NII: The Federal Reserve kept interest rates unchanged at 4.25-4.5% in the first quarter of 2025 after cutting those last year. This is likely to have had some positive impacts on USB’s NII, given relatively lower funding costs.

Management expects NII for the first quarter of 2025 to be relatively stable compared with the fourth quarter’s reported figure.

The consensus estimate for NII is pegged at $4.01 billion, indicating a 1.2% decrease from the prior quarter’s reported figure.

Loans: Given the uncertainty related to Trump’s tariff plan, the lending scenario was not very impressive in the first quarter. Per the Federal Reserve’s latest data, the demand for commercial and industrial loans, and commercial real estate loans in the first two months of the quarter was decent. As a result, USB’s lending activity is expected to have seen some improvement.

The Zacks Consensus Estimate of $614.9 million for average earning assets indicates a marginal sequential increase.

Non-Interest Income: The first quarter witnessed heightened market volatility and client activity because of uncertainty related to Trump’s tariff plans. Also, volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange.

In the first quarter of 2025, trading volumes across equity derivatives and corporate bonds exhibited growth, reflecting heightened market activity and investor engagement. The Zacks Consensus Estimate for commercial product revenues is pegged at $372.7 million, indicating an increase of 2.4% from the prior quarter’s reported figure.

The Mortgage rates in the first quarter of 2025 did not decline significantly and hovered at nearly 7% despite the central bank's interest rate cuts. As such, refinancing activities and origination volumes witnessed decent growth. Thus, U.S Bancorp's mortgage banking fees are likely to have seen some improvement.

The Zacks Consensus Estimate for mortgage banking revenues is pegged at $144.6 million, which increased 24.7% from the prior year’s reported figure.

The Zacks Consensus Estimate for income from card revenues is pegged at $400.8 million, indicating a decline of 7.4% from the prior quarter’s reported figure.

The consensus mark for trust and investment management fees is pegged at $715.4 million, indicating a rise of 1.7% from the prior year’s reported figure.

Overall, the Zacks Consensus Estimate for total non-interest income is pegged at $2.79 billion, indicating a year-over-year fall of 1.2%.

Expenses: Higher costs related to compensation, employee benefits, and net occupancy are expected to keep the expense base elevated in the first quarter. Yet, the company’s focus on prudent expense management is likely to have offset the increase.

Management projects adjusted total non-interest expenses to be relatively stable from the prior-quarter reported level.

The Zacks Consensus Estimate for non-performing loans is pegged at $1.84 billion, indicating a rise of 2.4% from the prior quarter’s reported figure.

What the Zacks Model Unveils for USB

Per our proven model, the chances of U.S. Bancorp beating estimates this time are high. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: U.S. Bancorp has an Earnings ESP of +0.94%.

Zacks Rank: USB currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter earnings of 99 cents has been unchanged in the past seven days. The figure indicates an increase of 10% from the year-ago reported number.

The consensus estimate for first-quarter 2025 revenues is pegged at $6.92 billion, indicating a rise of 3.6% from the year-ago reported figure.

Other Stocks to Consider

Here are a couple of other bank stocks that you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this time around.

The Earnings ESP for First Horizon Corporation FHN is +3.80% and it carries a Zacks Rank #3 at present. The company is slated to report first-quarter 2025 results on April 16.

Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has been unchanged at 40 cents.

Truist Financial TFC is scheduled to announce first-quarter 2025 results on April 17. The company carries a Zacks Rank #3 at present and has an Earnings ESP of +0.15%.

Quarterly earnings estimates for TFC have been revised 1.1% lower to 86 cents over the past week.

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Zacks Investment Research

NVAX Stock Tanks as HHS Secretary Raises Concern Over COVID-19 Jab

Fri, 11 Apr 2025 15:33:00 +0000

Shares of Novavax NVAX were down 19.6% on April 10 after the United States Health and Human Services (“HHS”) Secretary Robert F. Kennedy Jr., a well-known vaccine skeptic, raised concerns regarding the efficacy of the company’s protein-based COVID-19 vaccine.

In a recent interview with CBS News, the HHS Secretary raised concerns about NVAX’s COVID-19 vaccine. He stated that it employs a single-antigen approach and mentioned that it has never worked for such respiratory diseases. The HHS Secretary also said that they are now shifting the focus toward vaccines that offer a multiple-antigen approach.

NVAX Seeking Full Approval for COVID-19 Jab

NVAX’s COVID-19 vaccine has been authorized for emergency use in the United States since 2022. The vaccine is also approved/authorized for use in multiple markets like Australia, Canada, Europe, India and Indonesia.

However, NVAX has filed a biologics license application (BLA) seeking full approval of the vaccine. A decision from the FDA was expected earlier this month.

The market is speculating that the resignation of a key FDA official, Dr. Peter Marks, has been the reason for the delay in FDA’s decision on NVAX’s vaccine. Dr. Marks resigned citing irreconcilable differences with the new HHS Secretary last week.

Novavax has not received an official response from the FDA related to the status of the BLA.

The BLA was based on data from a phase III study, which showed the vaccine was safe and effective for the prevention of COVID-19.

Year to date, shares of Novavax have plunged 32.5% compared with the industry’s decline of 7.9%.

Image Source: Zacks Investment Research

Other Stocks That Declined

The concerns raised by the HHS Secretary in the latest interview also affected other vaccine makers in the United States. Pfizer PFE was down 3.9%, while Moderna MRNA was down 8.1% after the markets closed on Thursday.

While Novavax uses a protein-based COVID-19 vaccine, PFE and MRNA market mRNA-based COVID-19 vaccines, namely Comirnaty and Spikevax, respectively.

Kennedy Rules Out Personnel Change for Delay in NVAX Jab Approval

In the interview with CBS News, Robert F. Kennedy Jr. ruled out possible personnel changes when asked about the delay in the FDA approval of NVAX’s COVID-19 vaccine.

Notably, in his resignation letter posted by the New York Times, Dr. Marks had called out the newly appointed HHS Secretary for promoting “misinformation and lies” about the safety of FDA-approved vaccines. Several stocks in the vaccine and gene therapy space tumbled on the news.

Dr. Marks expressed strong concerns about efforts to undermine vaccine safety. He warned about the rising hesitancy toward vaccines and their consequences, citing the recent measles outbreak as an example of what happens when trust in vaccines is eroded.

Some Wall Street analysts worry that his absence could weaken the FDA’s role in ensuring timely access to safe and effective therapies, potentially adding to the challenges already facing the biotech sector.

Novavax, Inc. Price

Novavax, Inc. price | Novavax, Inc. Quote

NVAX's Zacks Rank

Novavax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Names #1 Semiconductor Stock

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Zacks Investment Research

Oil-Dri Earns Outperform Rating on Renewable Diesel, Ultra Pet Wins

Fri, 11 Apr 2025 15:33:00 +0000

Oil-Dri Corporation of America ODC has been upgraded to an “Outperform” rating, a reflection of its robust execution and well-placed strategic investments. The company's growth trajectory is powered by two transformative catalysts — the flourishing renewable diesel segment and the successful Ultra Pet acquisition. Both initiatives are propelling performance beyond expectations, underpinned by strong financial results and promising market expansion.

Renewable Diesel: Fueling Growth

Oil-Dri’s fluids purification segment has emerged as a standout performer, primarily driven by the surging demand for renewable diesel. In the first half of fiscal 2025, net sales in this segment jumped 27% to $57.1 million, cementing its position as a vital revenue engine. Renewable diesel producers are increasingly turning to ODC's purification solutions, drawn by their quality, efficiency and the company’s ability to maintain favorable pricing strategies.

Market dynamics support this growth. North American and European renewable diesel markets remain stable, with new production facilities coming online and driving incremental demand. This secular tailwind aligns Oil-Dri’s offerings with the global energy transition, ensuring sustained contributions from this high-margin business. Moreover, ODC’s vertical integration and operational agility enhance its ability to meet evolving customer needs while navigating input cost inflation effectively.

The renewable diesel catalyst does more than boost sales; it positions Oil-Dri as an essential enabler of cleaner energy solutions, embedding long-term value into its business model and reinforcing its competitive edge in the evolving energy landscape.

Ultra Pet Acquisition: Broader Reach & Higher Profits

The second key growth engine is the Ultra Pet acquisition, which is delivering beyond initial projections. In the first half of fiscal 2025, Ultra Pet contributed an impressive $10.4 million in incremental domestic cat litter net sales. This acquisition has not only diversified Oil-Dri’s product portfolio with high-margin silica gel-based cat litter but also expanded its shelf presence in major retail channels.

The operational integration of Ultra Pet has been smooth, enabling efficiency gains and supporting earnings momentum. Early retailer feedback has been favorable, with growing interest in expanded product placements anticipated during upcoming retail resets. Notably, while major distribution gains typically align with seasonal cycles, initial traction suggests that Ultra Pet will continue to be a durable revenue contributor in the future.

Beyond the financial upside, Ultra Pet enhances Oil-Dri’s value proposition in the premium pet care market — a space characterized by sticky consumer demand and favorable margin structures. The acquisition solidifies ODC's leadership position in the fast-growing crystal cat litter segment, strengthening the company’s growth prospects.

Complementary Strengths Support Upgrade

The catalysts are reinforced by a solid financial foundation. Oil-Dri delivered $244.9 million in sales in the first half of fiscal 2025, up 13% year over year. It generated $32.3 million in operating cash flow, with no outstanding debt. These figures underscore the company’s disciplined capital allocation, ability to fund growth internally, and commitment to shareholder returns through sustained dividends.

Additionally, the recent two-for-one stock split has improved share liquidity, attracting a broader investor base and reflecting management’s confidence in long-term growth.

Despite certain challenges, including SG&A cost pressures and international market volatility, the core drivers of renewable diesel and Ultra Pet’s success have created a favorable risk-reward profile. Management’s proactive strategies, coupled with these high-growth segments, underpin the rationale for the recommendation upgrade.

Outlook

Oil-Dri’s focus on market-relevant innovations and disciplined execution position it to outperform the broader market. The company is capitalizing on powerful industry trends — sustainable energy and premium pet care — while reinforcing operational resilience. With renewable diesel expansion and Ultra Pet’s continued integration fueling momentum, ODC is well-prepared to navigate near-term headwinds and capture long-term shareholder value.

The “Outperform” rating reflects this promising outlook, with both catalysts expected to sustain earnings growth and enhance market positioning in the quarters ahead.

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Zacks Investment Research

Buy, Sell or Hold J&J Stock? Key Tips Ahead of Q1 Earnings

Fri, 11 Apr 2025 15:32:00 +0000

Johnson & Johnson JNJ will begin the earnings season for the drug & biotech sector when it reports its first-quarter 2025 results on April 15. The Zacks Consensus Estimate for first-quarter sales and earnings is pegged at $21.66 billion and $2.57 per share, respectively. The Zacks Consensus Estimate for J&J’s earnings has declined from $10.58 per share to $10.57 per share for 2025, while that for 2026 has declined from $11.07 per share to $11.02 per share over the past 60 days.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

JNJ Estimate Movement

Image Source: Zacks Investment Research

JNJ’s Earnings Surprise History

The healthcare bellwether’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 4.43%, on average. In the last reported quarter, the company delivered an earnings surprise of 2.0%.

Image Source: Zacks Investment Research

JNJ’s Stock Price & EPS Surprise

J&J has an Earnings ESPof -2.53% and a Zacks Rank #3 (Hold). Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Shaping JNJ’s Upcoming Results

Sales in J&J’s Innovative Medicines segment are expected to have been driven by higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains.

For Darzalex, the consensus mark is pegged at $3.13 billion, while our model estimates sales of $3.15 billion.

The Zacks Consensus Estimate for Tremfya is $939.0 million, while our model estimate is $989.7 million.

The Zacks Consensus Estimate for Erleada sales is $817.0 million, while our model projects sales to be $855.3 million.

Other products like Invega Sustenna, Uptravi and Spravato are likely to show growth. The rapid adoption of new drugs like Carvykti, Tecvayli and Talvey are likely to have contributed to top-line growth.

Sales of the key drug Stelara are likely to have declined due to the impact of current and potential biosimilar competition.

A biosimilar version of Stelara was launched in certain European markets for some indications in July 2024. Several biosimilar versions of Stelara are expected to be launched in the United States in 2025. Amgen AMGN launched the first Stelara biosimilar, Wezlana, in January 2025. Stelara biosimilar competition is expected to accelerate throughout 2025 as the number of biosimilar entrants increases.

The Zacks Consensus Estimate for Stelara sales is pegged at $1.64 billion, while our model projects sales of $1.66 billion.

Imbruvica sales are likely to have declined due to rising competitive pressure in the United States due to new oral competition. The Zacks Consensus Estimate for Imbruvica is $678.0 million, while our model indicates sales to be $703.0 million.

Sales of Xarelto and Simponi/Simponi Aria improved in the fourth quarter of 2024. It remains to be seen if the positive trend continued in the first quarter of 2025.

Generic/biosimilar competition for drugs like Zytiga and Remicade is likely to have hurt the top line.

The negative impact of the Part D redesign and a heavier impact from Fx are expected to have weighed on the Innovative Medicine segment in the first quarter.

The Zacks Consensus Estimate for J&J’s Innovative Medicine unit is $13.46 billion, while our estimate is $13.57 billion.

The MedTech segment is expected to have faced difficult year-over-year comparisons in the first quarter.

J&J’s MedTech business has been facing continued headwinds in the Asia Pacific, specifically in China, where sales are expected to have been hurt by the impact of the volume-based procurement (VBP) program and the anti-corruption campaign. VBP is a government-driven cost containment effort in China. J&J does not expect any improvement in its business in the Asia Pacific region, specifically in China, in the first quarter or other quarters of 2025. Competitive pressure is likely to continue to hurt sales growth in some MedTech businesses like U.S. electrophysiology for PFA ablation catheter.

However, new product uptake and commercial execution are expected to have boosted growth in other markets in the MedTech segment.

The Zacks Consensus Estimate as well as our model estimate for J&J’s MedTech segment is $8.14 billion.

Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold J&J stock ahead of earnings.

JNJ’s Stock Price Performance & Valuation

So far this year, J&J’sstock has risen 3.6% against a decrease of 4.8% for the industry. The stock has also outperformed the sector as well as the S&P 500, as seen in the chart below.

JNJ Stock Outperforms Industry, Sector & S&P 500

Image Source: Zacks Investment Research

From a valuation standpoint, J&J is reasonably valued. Going by the price/earnings ratio, the company’s shares currently trade at 13.87 forward earnings, slightly lower than 14.81 for the industry. The stock is trading slightly below its five-year mean of 15.94.

JNJ Stock Valuation

Image Source: Zacks Investment Research

Investment Thesis for JNJ

J&J’s biggest strength is its diversified business model. With last year’s complete separation of the Consumer Health segment into a newly listed company called Kenvue KVUE, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields.

J&J’s Innovative Medicine unit is showing a growth trend. In 2025, J&J expects growth in the Innovative Medicine segment to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant.

J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline.

Continuing the M&A momentum, in April, J&J closed its previously announced acquisition of Intra-Cellular Therapies for approximately $14.6 billion, strengthening its presence in the neurological and psychiatric drug market.

However, the softness in the MedTech unit, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. It remains to be seen how the company navigates them. Stelara generated sales of $10.36 billion in 2024. The launch of generics is expected to significantly erode the drug’s sales, hurting J&J’s sales and profits in 2025.

The legal battle surrounding its talc lawsuits has created a bearish sentiment around the stock. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian and some other cancers. Earlier this month, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits. J&J will go back to the traditional tort system to fight the lawsuits individually with its bankruptcy strategy to settle the lawsuits failing for the third time.

Stay Invested in J&J’s Stock

J&J has shown steady revenue and EPS growth for years. No matter how the first-quarter results play out, those who already own this company’s shares may stay invested for some time as J&J looks poised for a better performance in 2025.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Names #1 Semiconductor Stock

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Zacks Investment Research

Five9 Shares Plunge 43% YTD: Is it Time for You to Buy the Dip?

Fri, 11 Apr 2025 15:32:00 +0000

Five9 FIVN shares have dropped 42.8% year to date (YTD), underperforming the Zacks Computer and Technology sector’s decline of 12.5% and the Zacks Internet – Software industry’s fall of 11.1%.

FIVN has underperformed its industry peers, StoneCo STNE, BlackBerry BB and Affirm AFRM.

Over the same time frame, StoneCo shares have risen 37.8%, while BlackBerry and Affirm shares have lost 16.9% and 33.1%, respectively.

This underperformance raises the question of whether investors should cut their losses and exit or view the dip as a compelling entry point. Despite near-term challenges, the company’s long-term growth trajectory remains strong, suggesting opportunities for investors.

Five9, Inc. Price and Consensus

Five9, Inc. price-consensus-chart | Five9, Inc. Quote

Why Did FIVN Underperform?

Five9’s recent decline stems from a mix of broader market weakness and company-specific concerns. A widespread sell-off in tech stocks, triggered by fears of escalating trade tensions and slowing economic growth, has put pressure on the entire sector.

Growing uncertainty around the adoption of artificial intelligence (AI) is adding complexity to enterprise decision-making. This hesitation is adding complexity to the buying process and can delay customer acquisitions or expansion deals, raising questions about the pace and durability of Five9’s growth in the AI-driven contact center space.

However, the company’s strong focus on AI innovation, platform scalability and partnerships continues to strengthen its competitive positioning and support long-term growth potential.

Five9’s Growth is Backed by AI Advancements & Partnerships

FIVN is strengthening its position in AI-driven customer experience solutions by continuously launching products with advanced capabilities. Over the past few months, the company has launched multiple AI-enabled solutions, including Spotlight and Five9 AI Agent.

Spotlight is designed to help companies utilize Generative AI (GenAI)-powered insights and access contextual data faster, reduce manual work and make data-driven decisions. The Five9 AI Agent will help businesses create chat and voice bots that combine the conversational abilities of a human with the speed and extensive knowledge of AI.

Five9’s sustained focus on enhancing product capabilities is driving its Enterprise AI revenues, which grew 46% year over year in the fourth quarter of 2024. AI now accounts for 9% of enterprise subscription revenues, reflecting rising customer adoption. The momentum is underscored by a nearly 50% year-over-year rise in AI-related bookings from new enterprise customers, signaling sustained demand and a robust trajectory for long-term growth.

FIVN continues to build on the strength of its strategic alliances. The company has been seeing substantial opportunities in 2025, following high-impact collaborations with industry leaders such as Salesforce, ServiceNow, Microsoft, Verint and Google. These partnerships not only enhance Five9’s ecosystem and market reach but also position the company to capitalize on the growing enterprise demand for integrated, AI-powered customer experience solutions.

Partnerships with leading technology providers are enhancing AI-driven customer experience (CX) and employee experience solutions through deeper integration, modernized deployment and global accessibility. These alliances are accelerating customer acquisition, expanding market reach and reinforcing leadership in next-generation intelligent experience platforms.

FIVN Provides Positive 2025 Outlook

For 2025, Five9 anticipates revenues of $1.140-$1.144 billion, reflecting confidence in sustaining growth through AI integration and platform expansion. The Zacks Consensus Estimate for revenues is pegged at $1.14 billion, indicating a year-over-year rise of 9.79%.

Non-GAAP earnings for 2025 are expected to be $2.58-$2.62 per share. The consensus mark for earnings is pegged at $2.61, unchanged over the past 30 days, indicating a year-over-year increase of 5.67%.

FIVN’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 18.55%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Conclusion: Buy Five9’s Stock Now

Despite macroeconomic headwinds and prolonged sales cycles, FIVN's strong AI momentum, deepening partnerships and expanding global reach underscore its long-term growth potential. Continued innovation in AI-driven CX solutions and robust enterprise adoption position the company favorably, helping offset short-term challenges and reinforcing confidence in its strategic direction and market leadership.

Five9 currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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Zacks Investment Research

Adobe (ADBE) Down 7.4% Since Last Earnings Report: Can It Rebound?

Fri, 11 Apr 2025 15:30:06 +0000

A month has gone by since the last earnings report for Adobe Systems (ADBE). Shares have lost about 7.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Adobe due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

Currently, Adobe has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Adobe has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks Names #1 Semiconductor Stock

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Zacks Investment Research

ZIM (ZIM) Down 29.9% Since Last Earnings Report: Can It Rebound?

Fri, 11 Apr 2025 15:30:06 +0000

It has been about a month since the last earnings report for ZIM Integrated Shipping Services (ZIM). Shares have lost about 29.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ZIM due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, ZIM has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, ZIM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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Zacks Investment Research

Why Is Nektar (NKTR) Down 38.8% Since Last Earnings Report?

Fri, 11 Apr 2025 15:30:06 +0000

It has been about a month since the last earnings report for Nektar Therapeutics (NKTR). Shares have lost about 38.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Nektar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 12.5% due to these changes.

VGM Scores

Currently, Nektar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nektar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Nektar belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Catalyst Pharmaceutical (CPRX), has gained 2.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.

Catalyst reported revenues of $141.82 million in the last reported quarter, representing a year-over-year change of +28.3%. EPS of $0.70 for the same period compares with $0.53 a year ago.

For the current quarter, Catalyst is expected to post earnings of $0.53 per share, indicating a change of +39.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Catalyst. Also, the stock has a VGM Score of A.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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Zacks Investment Research

American Eagle (AEO) Down 2.7% Since Last Earnings Report: Can It Rebound?

Fri, 11 Apr 2025 15:30:06 +0000

A month has gone by since the last earnings report for American Eagle Outfitters (AEO). Shares have lost about 2.7% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is American Eagle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -64.54% due to these changes.

VGM Scores

At this time, American Eagle has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise American Eagle has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

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Zacks Investment Research

ABM Industries (ABM) Down 5.7% Since Last Earnings Report: Can It Rebound?

Fri, 11 Apr 2025 15:30:05 +0000

A month has gone by since the last earnings report for ABM Industries (ABM). Shares have lost about 5.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ABM Industries due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, ABM Industries has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, ABM Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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ABM Industries Incorporated (ABM): Free Stock Analysis Report

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Zacks Investment Research

Terreno Realty Expands Portfolio With Property Buyout in Redmond

Fri, 11 Apr 2025 15:28:00 +0000

As part of its acquisition-driven growth strategy, Terreno Realty TRNO recently announced the acquisition of an industrial property in Redmond, WA, for $9.3 million. The transaction marks an estimated stabilized cap rate after renovation of 5.5%.

Located at 9660 153rd Avenue NE on Seattle’s Eastside, the property comprises one industrial distribution building containing roughly 33,000 square feet on 1.5 acres. While the property is fully leased on a short-term basis, it will undergo renovation after the existing tenant vacates and will then contain roughly 26,000 square feet of space. With an advantageous location, the property is likely to lure tenants, and its acquisition seems a strategic fit.

TRNO has been actively restructuring its portfolio by disposing of non-core assets and acquiring value-accretive investments. Such efforts will aid long-term revenue growth. In the first quarter of 2025, Terreno Realty sold two properties with two industrial distribution buildings spanning around 88,000 square feet at an aggregate sale value of around $24.9 million. As of March 31, 2025, TRNO had acquisitions worth around $55.9 million under contract and nearly $16 million under letters of intent.

Moreover, as of March 31, 2025, Terreno had five properties under development or redevelopment. Post completion, these will comprise eight buildings spanning around 0.8 million square feet, which are 48% pre-leased. The company also has around 22.4 acres of land dedicated to future developments at an estimated investment value of around $392.8 million.

With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate. However, reflecting concerns over macroeconomic uncertainty and tariff woes, shares of this Zacks Rank #3 (Hold) company have declined 8.8% so far in the year, wider than its industry’s fall of 4.7%.

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Stocks to Consider

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Cousins Properties Incorporated (CUZ): Free Stock Analysis Report

Terreno Realty Corporation (TRNO): Free Stock Analysis Report

Welltower Inc. (WELL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Lovesac's Q4 Earnings & Net Sales Beat Estimates, Stock Up

Fri, 11 Apr 2025 15:27:00 +0000

The Lovesac Company LOVE reported better-than-expected fourth-quarter fiscal 2025 (ended Feb. 2, 2025) results, with earnings and net sales beating the Zacks Consensus Estimate. On a year-over-year basis, earnings increased but revenues declined.

This downside was due to a 9.4% drop in omnichannel comparable net sales. The negative impact was partially offset by the net addition of 27 showrooms during the fiscal. However, in the fourth quarter of fiscal 2025, the company did not open any new showrooms and closed one.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Nonetheless, lower inbound transportation costs and savings in outbound transportation and warehousing contributed to the improvement in the bottom line. Following a slow start to the holiday season, stronger execution helped LOVE improve the conversion of customer quotes into sales during the rest of the quarter.

In fiscal 2025, the company gained momentum through several product launches, including the Reclining Seat and PillowSac Accent Chair. LOVE also introduced the EverCouch, targeting the large couch market. With its long-term strategy in place, the company aims to expand its offerings further. Owing to upcoming product launches and a stronger position, the company expects net sales to rise in fiscal 2026 compared with fiscal 2025, despite ongoing macro challenges.

Following the earnings release, Lovesac’s shares appreciated 16.1% during yesterday’s trading hours.

Inside LOVE’s Q4 Numbers

For the fiscal fourth quarter, the company reported adjusted earnings of $2.13 per share, beating the Zacks Consensus Estimate of $1.80. Lovesac reported adjusted earnings per share of $1.87 in the prior-year quarter.

The Lovesac Company Price, Consensus and EPS Surprise

The Lovesac Company price-consensus-eps-surprise-chart | The Lovesac Company Quote

Net sales of $241.5 million topped the consensus estimate of $228.7 million by 5.6%. However, the metric decreased 3.6% from the year-ago quarter’s figure. Showroom sales fell 1.6% year over year, while internet sales dropped 9.7%.

Operating Highlights of LOVE

The gross margin expanded 70 basis points (bps) year over year to 60.4%, mainly due to a 90-bps drop in inbound transportation costs and a 30-bps decline in outbound transportation and warehousing costs. This was partly offset by a 50-bps decrease in product margin due to higher promotional discounts.

Selling, general and administrative expenses, as a percentage of net sales, decreased 250 bps to 28% year over year. Advertising & marketing expenses, as a percentage of net sales, depreciated 70 bps year over year to 11.1%.

Adjusted EBITDA was $53.9 million, up from $48.4 million reported a year ago.

Fiscal 2025 Highlights

For the fiscal year, Lovesac reported net sales of $680.6 million, down from $700.3 million reported in fiscal 2024. Adjusted EPS of 69 cents was down from $1.45 reported a year ago.

Adjusted EBITDA in fiscal 2025 was $47.8 million, down from $54 million reported in fiscal 2024. Net income of $11.6 million was down from $23.9 million reported a year ago.

Lovesac’s Financial Highlights

As of Feb. 2, 2025, Lovesac had cash and cash equivalents of $83.7 million compared with $87 million at the end of fiscal 2024.

Net cash provided by operating activities totaled $39 million in fiscal 2025 compared with $76.4 million reported in the year-ago period.

LOVE’s Q1 Guidance

For first-quarter fiscal 2026, LOVE expects net sales to be in the range of $136-$142 million and adjusted EBITDA loss in the band of $8-$12 million. In first-quarter fiscal 2025, it reported net sales of $132.6 million and an adjusted EBITDA loss of $10.3 million.

The company expects net loss to be in the range of $10-$13 million. In the year-ago period, it reported a net loss of $13 million.

LOVE’s Fiscal 2026 Guidance Updated

For fiscal 2026, the company now expects net sales to be in the range of $700-$750 million. Adjusted EBITDA is expected to be in the range of $48-$60 million. Net income is expected to be in the band of $13-$22 million.

Diluted income per common share is expected to be between 80 cents and $1.36, on approximately 16.3 million estimated diluted weighted average shares outstanding.

LOVE’s Zacks Rank & Key Picks

Lovesac currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are BJ's Restaurants, Inc. BJRI, Cracker Barrel Old Country Store, Inc. CBRL and Sprouts Farmers Market, Inc. SFM.

BJ's Restaurants currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company delivered a trailing four-quarter negative earnings surprise of 84.7%, on average. The stock has declined 4.4% in the past six months. The Zacks Consensus Estimate for BJ's Restaurants’ 2025 sales and earnings per share (EPS) indicates growth of 3.2% and 13.6%, respectively, from the year-ago period’s levels.

Cracker Barrel currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 22.5%, on average. The stock has declined 10.4% in the past six months.

The Zacks Consensus Estimate for Cracker Barrel’s 2026 sales and EPS indicates a rise of 2.3% and 13.8%, respectively, from the year-ago period’s level.

Sprouts Farmers currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 15.1%, on average. The stock has gained 33.5% in the past six months.

The Zacks Consensus Estimate for Sprouts Farmers’ 2025 sales and EPS indicates a rise of 11.9% and 24.3%, respectively, from the year-ago period’s level.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

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Cracker Barrel Old Country Store, Inc. (CBRL): Free Stock Analysis Report

BJ's Restaurants, Inc. (BJRI): Free Stock Analysis Report

Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report

The Lovesac Company (LOVE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Can Alphabet's New AI and Cloud Launches Push the Stock Higher?

Fri, 11 Apr 2025 15:25:00 +0000

Alphabet GOOGL shares have lost 19.2% year to date, underperforming the broader Zacks Computer & Technology sector’s decline of 16.4%. The decline can be attributed to challenging macroeconomic conditions post U.S. President Donald Trump’s decision to levy tariffs on trade partners, including China, Mexico, and Canada.

However, GOOGL’s initiatives to infuse AI into its products are a major growth driver. Alphabet made a series of high-impact announcements at the Cloud Next 2025 conference in Las Vegas on Wednesday.

Alphabet unveiled Ironwood, its seventh-generation Tensor Processing Unit (TPU), expected to be available later this year. Ironwood promises 3,600 times better performance compared with Alphabet’s first publicly available TPU and is 29 times more energy efficient.

Google Cloud unveiled its Cloud Wide Area Network (Cloud WAN), giving enterprises access to its private global fiber network. Launching later this month, Cloud WAN delivers more than 40% faster performance while cutting ownership costs by a similar margin.

Alphabet Inc. Price and Consensus

Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote

Alphabet showcased Willow, its new quantum chip, which overcomes a key challenge in error correction. Willow reduces errors exponentially as more qubits are added, paving the way for scalable quantum computing.

On the AI model front, Alphabet launched Gemini 2.5, its most advanced reasoning model, alongside Gemini 2.5 Flash, a low-latency, cost-efficient version tailored for developers.

Alphabet’s diverse portfolio spanning Google Cloud, Search and YouTube is expected to help the stock ride over the current tumultuous phase. GOOGL’s plan to buy Wiz for a whopping $32 billion in a deal that will enhance Google Cloud’s security offerings. Wiz has a stellar clientele with its cloud security platform currently used by Amazon AMZN, Microsoft and Oracle ORCL.

Alphabet dominates the digital advertising and search business that drives advertising revenues. In fourth-quarter 2024, Google Search revenues increased 13% year over year to $54 billion, led by strength in financial services and retail, while YouTube ads increased 14% year over year to $10.5 billion. Google Cloud revenues surged 30% year over year to $12 billion, driven by core cloud products, AI infrastructure, and generative AI tools like Vertex AI and Gemini. The company is facing stiff competition from Microsoft and Amazon in the cloud domain.

Alphabet Benefits From Expanding Clientele

Alphabet continues to deepen its enterprise partnerships, fuelling growth in AI and cloud. The company recently deployed NVIDIA’s NVDA H200-based platforms to customers and was the first to announce a customer running on the highly anticipated Blackwell platform, reinforcing its strong ties with NVIDIA.

GOOGL also expanded its collaboration with Oracle, announcing an industry-first partner program and the upcoming availability of Oracle Base Database Service on Oracle Database running on Google Cloud. The service now supports Oracle Exadata X11M and offers Oracle Interconnect for U.S. Government Cloud customers. To meet rising customer demand, Oracle and Alphabet plan to expand its availability to 11 new regions over the next 12 months.

GOOGL’s Q1 to Suffer From Unfavourable Forex

Alphabet expects first-quarter 2025 revenues to suffer from unfavourable forex and one less day of revenues compared with the year-ago quarter.

The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $75.63 billion, suggesting a 11.87% increase from the prior-year quarter’s actual.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The consensus mark for first-quarter 2025 earnings is pegged at $2.02 per share, unchanged over the past 30 days. The consensus estimate indicates a year-over-year increase of 6.88%.

Zacks Rank

Alphabet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Oracle Corporation (ORCL): Free Stock Analysis Report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Devon Trades at a Discount to Industry: How to Play the Stock?

Fri, 11 Apr 2025 15:24:00 +0000

Devon Energy Corporation DVN is currently trading at a discount relative to its industry based on its trailing 12-month Enterprise Value to EBITDA (EV/EBITDA TTM) basis. With a valuation of 3.45X, it is lower than the Zacks Oil and Gas - Exploration and Production - United States industry average of 10.18Xand is trading below its five-year median of 4.22X.

DVN has a multi-basin portfolio and focuses on high-margin assets that hold significant long-term growth potential. Devon Energy also has a diverse commodity mix, having a balanced exposure to oil, natural gas and natural gas liquid production volumes. The company continues to produce strong, thanks to the contribution from its multi-basin assets.

Image Source: Zacks Investment Research

Devon Energy is attractively valued compared with other companies like Range Resources RRC and Comstock Resources, Inc. CRK operating in the same industry, having EV/EBITDA TTM of 9.19X and 11.07X, respectively.

Should you consider adding the DVN stock to your portfolio only based on an attractive valuation? Let us delve deeper and find out the factors that can help investors decide whether it is a good entry point to add the DVN stock to their portfolio.

Multi-Basin Assets Aid DVN Stock

Devon Energy’s multi-basin portfolio and focus on high-quality assets continue to boost its production. Strategic acquisitions and divestitures of non-core assets enable the company to concentrate on core assets.

Devon Energy completed the acquisition of Grayson Mill Energy, adding a high-margin production mix in its portfolio. This acquisition is expected to triple the total production volume to 150,000 barrels of oil equivalent per day (Boe/d) from 50,000 Boe/d earlier expected from Williston Basin.

Devon Energy possesses assets that can deliver sustainable production for many years into the future, and provide reliable and affordable energy to its customers. The assets currently owned by DVN can sustain the production levels for more than 10 years. The ongoing exploration activities continue to replenish production volumes and add reserves.

Devon Energy’s Low-Cost Operation Boosts Margin

DVN’s low-cost operation boosts its margins. Devon Energy is also working to reduce its drilling and completion costs, and is aligning personnel with the go-forward business.

Devon Energy also has a diverse commodity mix, with a balanced exposure to oil, natural gas and natural gas liquid production volumes. The company continues to evaluate opportunities to add more high-quality resources to its portfolio.

Due to cost management, production costs, including taxes, averaged $11.39 per Boe in the third quarter of 2024, a decline of 7% from the prior period. The cost savings will continue to boost the company’s margins.

DVN Stock Returns Better Than Industry

Devon Energy’s return on invested capital (ROIC) has outperformed the industry average in the trailing 12 months. ROIC of DVN was 8.51% compared with the industry average of 7.03%. The ROIC measures how well a company generates returns on the money it invests. ROIC is a key indicator of a company's profitability and operational efficiency. The ROIC of the company indicates that it is investing money more efficiently than its peers in the industry.

Image Source: Zacks Investment Research

Range Resources and Comstock Resources’ ROICs are currently pegged at 8.49% and 2.37%, lower than Devon Energy's level.

Devon Stock’s Earnings Surprise

The company’s earnings in the last four reported quarters were better than estimates. Devon Energy registered an average positive earnings surprise of 8.63% in the last four quarters.

Image Source: Zacks Investment Research

DVN’s Earnings Estimates Decline

The Zacks Consensus Estimate for Devon Energy’s 2025 and 2026 earnings per share has decreased 3.3% and 2.57%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

DVN’s Stock Price Performance

The stock has fallen 25% in the last three months compared with the 38.2% decline in the industry.

Image Source: Zacks Investment Research

Summing Up

Devon Energy benefits from the contributions from its multi-basin assets, which generate ample free cash flow and assist the company in strengthening its balance sheet. The company has a balanced exposure to oil, natural gas and NGL production, adding to its advantage.

Despite a negative revision in earnings estimates, investors can consider adding the stock to their portfolio as it currently has a VGM Score of B and is trading at a discount. Its strong ROIC and VGM Score indicate a robust performance.

Those who already own this Zacks Rank #3 (Hold) stock would do well retaining it in their portfolio.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Devon Energy Corporation (DVN): Free Stock Analysis Report

Comstock Resources, Inc. (CRK): Free Stock Analysis Report

Range Resources Corporation (RRC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Can HubSpot's Cutting-Edge Solutions Solicit Customer Interests?

Fri, 11 Apr 2025 15:23:00 +0000

HubSpot, Inc. HUBS is set to showcase a comprehensive suite of its cutting-edge solutions, including more than 200 new and improved features designed to enhance productivity across go-to-market teams at the Spring 2025.

How These Innovations Buoy HUBS?

One of the key highlights of HubSpot’s demonstration will center on its Breeze Agents suite, which serves key business functions across customer support, sales, and marketing. A notable addition to the lineup is the Knowledge Base Agent, which strengthens customer support by updating and expanding support resources in real time. The solution will work in close coordination with the updated Customer Agent, which now resolves more than half of all support tickets automatically and cuts resolution time by nearly 40%. With the ability to process unstructured data and engage across channels like WhatsApp, Facebook Messenger, and email, the Customer Agent is poised to become an even more powerful force for delivering round-the-clock service.

Sales teams will benefit from a smarter Prospecting Agent, which now brings more customization to outreach strategies. The tool gathers insights from HubSpot’s Customer relationship management (CRM) and external sources like company websites and news articles, providing automated research for each target account. It also adapts messaging based on product type, buyer persona, and market segment. It is now accessible from multiple tools, including the Sales Workspace, Prospecting Agent app, and the new Target Accounts app.

Marketing teams will benefit from the improved Content Agent, which is designed to accelerate content production across a wide range of formats. The tool can now use uploaded reference documents for blog posts and landing pages, suggest optimized topics based on top-performing content, and handle pre-publish tasks like crafting metadata and confirmation emails.

HubSpot is also introducing significant updates to its Marketing Hub Enterprise. The new Lookalike Lists uses Breeze to identify ideal customers based on current customer profiles, helping marketers expand reach with precision. Journey Automation introduces a visual Journey Builder paired with real-time performance insights to help marketers craft and optimize personalized customer experiences with ease. Additionally, for organizations managing multiple brands or divisions, Multi-Account Management brings a unified solution for overseeing customer data, assets, and campaign execution from one place.

To complement these upgrades, three new AI-powered Workspaces are being launched to help teams stay aligned and move faster. The Sales Workspace gives sales reps a centralized view of the pipeline and priorities. The Customer Success Workspace provides a unified dashboard for managing accounts, monitoring customer health, and addressing risks. Meanwhile, the Help Desk Workspace allows support staff to track, sort, and resolve customer issues with greater speed and clarity.

Will Strong Portfolio Additions Aid HUBS’ Prospects?

HubSpot has significant scope for cross-selling its products to its existing customer base. The company’s inbound marketing and sales applications enable businesses to easily reach, acquire and retain customers through traditional marketing tools like cold calls, print advertisements and e-mail. It also remains focused on becoming a leading CRM platform provider in the near future.

With the launch of these new and enhanced AI agents, the software-as-a-service vendor continues its commitment to providing innovative solutions that meet the evolving needs of the industry, reinforcing its position as a leader in the field and addressing the dynamic needs of the industry.

These advancements are expected to generate incremental demand for HubSpot’s solutions, leading to higher revenues. An improved financial performance is likely to propel the stock upward.

HUBS Stock Price Performance

Shares of HubSpot have plunged 21.7% over the past year against the industry’s growth of 10.4%.

Image Source: Zacks Investment Research

HUBS’ Zacks Rank and Stocks to Consider

HubSpot currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below:

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital designs and develops a wide range of advanced technology solutions, which are used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

CommScope Holding COMM currently flaunts a Zacks Rank #1. It has a long-term growth expectation of 19.37%.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. Since its inception in 1976, the company has created a niche market for itself, helping customers scale network capacity, delivering better network response time and performance, and simplifying technology migration. CommScope currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions.

United States Cellular USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer customers the best wireless experience by providing a superior-quality network and national coverage. U.S. Cellular is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United States Cellular Corporation (USM): Free Stock Analysis Report

InterDigital, Inc. (IDCC): Free Stock Analysis Report

CommScope Holding Company, Inc. (COMM): Free Stock Analysis Report

HubSpot, Inc. (HUBS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

4 Agriculture Operations Stocks to Watch Amid Positive Industry Trends

Fri, 11 Apr 2025 15:23:00 +0000

The Zacks Agriculture – Operations industry stands to gain from ongoing innovation and the growing demand for health-focused products. As consumers increasingly prioritize healthy eating, alternative protein consumption is projected to climb. Growth is also being fueled by investments in acquisitions, joint ventures and expansion initiatives. Advancements in food processing technologies, improved grain-handling methods, expanded storage capacity and robust demand from emerging markets are supporting industry momentum. In this favorable environment, companies such as Corteva CTVA, Dole DOLE, Adecoagro AGRO and Mission Produce AVO appear well-positioned to capitalize on these trends.

However, the industry faces challenges, such as fluctuating commodity prices, rising input costs, trade uncertainties and growing operational expenses. These pressures affect productivity, profitability and long-term sustainability, posing hurdles for industry participants.

About the Industry

The Zacks Agriculture – Operations industry comprises companies that produce or procure, transport, store, process and distribute agricultural commodities to consumers. It also distributes ingredients to other parts of the agriculture industry (including clothing, animal feed, energy and industrial products). Some industry players engage in dairy operations, land transformation activities and the development of food ingredients using gene-editing technology. The industry encompasses production activities related to the traditional farming of crops (like corn, soybean, wheat and cotton), and livestock and poultry products (including meat, dairy and eggs). The products are mainly sold at grocery stores or exported overseas. These are also used as feedstock for other industries. For example, cotton is used in the clothing industry and corn is used in the ethanol industry.

Factors Shaping the Future of Agriculture - Operations Industry

Agricultural Export/Import Projections: The U.S. Department of Agriculture projects agricultural exports of $170.5 billion for fiscal 2025 (ending Sept. 30, 2025), up $500 million from the November forecast. The uptick is primarily driven by stronger grain and feed exports, partially offset by a weaker outlook for oilseeds. Grain and feed exports are expected to be $37.7 billion, up $1.2 billion due to a $1.4-billion increase in corn exports, supported by higher volumes and prices. In contrast, oilseed and product exports are forecast to decline to $32.4 billion, which moved down $1.1 billion from the previous estimate due to lower soybean prices amid intensified competition from South America. Meanwhile, U.S. agricultural imports for fiscal 2025 are projected at $219.5 billion, reflecting a $4-billion rise from the November outlook. This increase is primarily driven by higher import values of horticultural goods, sugar and tropical products.

Organic Products & Innovation in Focus: The industry has gained from rising consumer demand for healthier food, prompting a shift toward organic farming practices, and reduced use of chemicals and pesticides. Innovations in food processing, enhanced grain-handling techniques, increased storage capacity and strong demand from emerging markets are driving growth. As healthy eating trends expand, alternative protein consumption is expected to rise. To align with trends in food security, health and well-being, industry players are prioritizing productivity and innovation. Companies are also investing in acquisitions and joint ventures to create high-quality ingredients and solutions that meet the growing demand for healthy products.

Elevated Costs: Agricultural companies face rising costs due to fluctuating commodity prices, inflation-driven input increases and trade uncertainties, all of which are squeezing profitability. Inflation-driven surges in input costs are significant challenges, raising production expenses and narrowing margins. To combat these pressures, companies have adopted pricing strategies and improved supply-chain resilience through partnerships and distribution initiatives. However, commodity cost inflation is expected to persist, maintaining pressure on margins in the near term.

Additionally, companies are managing higher SG&A expenses, driven by performance-related compensation, project costs and technology investments to stay competitive. These elevated operating expenses and ongoing SG&A deleverage may continue to weigh on profitability.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Agriculture – Operations industry is within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #88, which places it in the top 36% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries resulted from a positive aggregate earnings outlook for the constituent companies. Looking at the aggregate earnings estimate revisions, analysts are gradually gaining confidence in this group’s earnings growth potential.

Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and valuation picture.

Industry Vs Broader Market

In a year, the Zacks Agriculture – Operations industry has underperformed the Zacks Consumer Staples sector and the S&P 500.

The stocks in the industry have collectively fallen 12.2% in a year against growth of 4.3% for the sector and 7% for the Zacks S&P 500 composite.

One-Year Price Performance

Agriculture - Operations Industry's Valuation

On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing Consumer Staples stocks, the agriculture – Operations industry is currently trading at 13.34X compared with the S&P 500’s 20.05X and the sector’s 17.18X.

Over the last five years, the industry traded as high as 17.3X, as low as 10.91X and at the median of 14.21X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Agriculture Operations Stocks to Keep an Eye on

None of the stocks in the Zacks Agriculture – Operations universe currently sport a Zacks Rank #1 (Strong Buy), whereas one stock has a Zacks Rank #2 (Buy). Additionally, we have suggested three stocks with a Zacks Rank #3 (Hold) from the same industry, which investors may hold on to.

Mission Produce: This Oxnard, CA-based company is engaged in sourcing, farming, packaging, marketing and distribution of avocados, mangoes and blueberries to food retailers, distributors and foodservice customers in the United States and internationally. By effectively integrating its sales operations with sourcing teams, the company has demonstrated an exceptional ability to meet customer demand while optimizing per-unit margins. This alignment allows Mission Produce to leverage a sustained higher pricing environment, ensuring profitability and consistent performance in its Marketing and Distribution segment.

The Zacks Consensus Estimate for Mission Produce’s fiscal 2025 earnings has moved up 19% in the past 30 days. The Zacks Consensus Estimate for its fiscal 2025 sales and earnings suggests declines of 6.6% and 32.4%, respectively, from the year-ago period’s reported figures. The Zacks Rank #2 company has delivered a significant earnings surprise, on average, in the trailing four quarters. The AVO stock has declined 14% in the past year.

Price and Consensus: AVO

Corteva: This Wilmington, DE-based pure-play agriculture company is poised to drive above-market growth through its industry-leading product pipeline, and rigorous approach to innovation and operating discipline. It is poised to accelerate its pace of innovation and existing leadership position in the high-value sector to meet the increasing market demand for naturally derived products through three new collaboration agreements. Strong price execution in seed, supply-chain flexibility and solid market demand for its balanced and differentiated new product portfolios drive CTVA’s performance.

The Zacks Consensus Estimate for Corteva’s 2025 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2025 sales and earnings suggests growth of 1.7% and 15.2%, respectively, from the year-ago period’s reported figures. The Zacks Rank #3 company has delivered a negative earnings surprise of 11.5%, on average, in the trailing four quarters. The CTVA stock has risen 7.7% in the past year.

Price and Consensus: CTVA

Dole: This Dublin, Ireland-based global leader in fresh produce is poised to benefit from improved logistical efficiencies in several areas, which brought increased stability to its core fruit business. The company’s diverse sourcing network and advanced farming practices are likely to help overcome the weather challenges in various regions. DOLE benefited from a healthier supply and demand balance, which allowed for a better pricing environment in Europe and much-improved selling conditions in the non-core markets.

The Zacks Consensus Estimate for Dole’s 2025 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for its 2025 earnings suggests growth of 4.7% from the year-ago period’s reported figure. The Zacks Rank #3 company delivered an earnings surprise of 38.3%, on average, in the trailing four quarters. The DOLE stock has rallied 15% in the past year.

Price and Consensus: DOLE

Adecoagro: This Luxembourg-based agro-industrial company engages in farming crops and other agricultural products, dairy operations, sugar, ethanol and energy production, and land transformation activities in South America. AGRO benefits from high asset flexibility, which gives it a competitive advantage in the current uncertain market outlook. Its flexibility is reflected in its ability to increase the mix of anhydrous ethanol to benefit from its high prices and recovering demand. The company’s Farming and Land Transformation businesses have been benefiting from consolidating the five-year plan investments made in Crops, Rice and Dairy businesses, along with its focus on efficiencies.

The Zacks Rank #3 company’s shares have declined 0.3% in the past year. The Zacks Consensus Estimate for AGRO’s 2025 earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for the company’s 2025 sales and EPS suggests declines of 3.2% and 41.1%, respectively, from the year-ago period’s reported figures.

Price and Consensus: AGRO

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Corteva, Inc. (CTVA): Free Stock Analysis Report

Dole PLC (DOLE): Free Stock Analysis Report

Adecoagro S.A. (AGRO): Free Stock Analysis Report

Mission Produce, Inc. (AVO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

3 Outsourcing Stocks to Consider Amid Industry Challenges

Fri, 11 Apr 2025 15:20:00 +0000

The Zacks Outsourcing industry has witnessed significant growth, driven by multiple economic, technological and business factors. Key drivers include reduced costs, the onset of remote work, the rising focus on cybersecurity awareness, and the surge in trends such as Artificial Intelligence (AI) and Machine Learning (ML).

Investors can consider ExlService Holdings, Inc. EXLS, Barrett Business Services, Inc. BBSI and Broadridge Financial Solutions, Inc. BR from the Outsourcing market.

About the Industry

Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, one can find companies that provide human capital, business management and IT solutions, primarily catering to small and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, administration of benefits, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies while external experts manage these critical functions.

What's Shaping the Future of the Outsourcing Industry?

Strong Market Demand: The industry has witnessed significant growth post-pandemic, led by tech advancements and a rise in remote work. Revenues, income and cash flows have risen over these years, aiding many industry players to increase dividends.

Consistent Growth in Business Process & IT Outsourcing: The higher demand for business process outsourcing services is fueled by greater flexibility, lower costs and enhanced service quality. The IT outsourcing market is also in great shape. In the future, outsourced IT services will cover an array of functions, including programming and technical support. Companies can outsource entire IT departments to cut costs and focus on vital tasks. A significant driver of outsourcing trends will be the shortage of in-house engineering talent.

Urgency of Cybersecurity Measures: Increased public awareness and evolving cyber threats, such as ransomware and national-level cyberattacks, have led to a rising demand for robust data encryption and cybersecurity measures. Companies are focusing on employee security awareness training and breach detection systems to tackle these threats. The demand for outsourced cybersecurity services is rising as businesses are turning to it to reduce risks, maintain compliance and support scalability in their operations.

Changing Industry Trends: Trends like the Internet of Things (IoT), cloud computing, AI and ML are gradually reshaping the outsourcing sector. These innovations promote efficiency, build a runway for innovations and provide a competitive edge to companies, changing the outsourcing landscape for businesses to streamline operations. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide swifter, effective and consistent customer support while optimizing operational costs.

Zacks Industry Rank Indicates Dull Near-Term Prospects

The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #217. This rank places it in the bottom 12% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock market performance and current valuation.

Industry Outperforms Sector & S&P 500

Over the past year, the Zacks Outsourcing industry beat the broader Zacks Business Services sector and the Zacks S&P 500 composite.

The industry has rallied 16% over this period compared with the broader sector's 6.4% growth and the 8.4% rise of the Zacks S&P 500 composite.

One-Year Price Performance

Industry's Current Valuation

On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 22.68X compared with the S&P 500’s 19.37X and the sector’s 21.56X.

In the past five years, the industry has traded as high as 24.47X and as low as 11.86X, with the median being 20.55X, as the charts below show.

Price to Forward 12-Month P/E Ratio

3 Outsourcing Stocks Worth a Look

One year, the stock prices of three major outsourcing companies have had an impressive run on the bourse. EXLS, BBSI, and BR gained 46.2%, 32.2% and 16.7%, respectively. Broadridge Financial Solutions currently has a Zacks Rank #2 (Buy). The rest of the companies mentioned above carry a Zacks Rank #3 (Hold).

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Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report

ExlService Holdings, Inc. (EXLS): Free Stock Analysis Report

Barrett Business Services, Inc. (BBSI): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Mastercard Premium Valuation: Opportunity or Risk in a Shaky Economy?

Fri, 11 Apr 2025 15:18:00 +0000

Payments giant Mastercard Incorporated MA currently trades at a premium valuation. Its forward earnings multiple of 30.01X significantly outpaces the financial transaction industry average of 22.30X. In contrast, peers like Visa Inc. V and American Express Company AXP command more modest multiples of 26.92X and 15.51X, respectively. While Mastercard boasts strong margins and long-term growth potential, the near-term outlook is far less compelling.

With rising economic uncertainty, softening consumer sentiment and looming global slowdowns, Mastercard’s growth could face pressure. In this environment, paying a premium for the stock looks increasingly risky. Any sign of deceleration — even modest — could trigger a sharp correction. Careful analysis is crucial to determine whether this premium is justified or if it’s time to take some chips off the table.

Image Source: Zacks Investment Research

MA’s Underwhelming Price Performance

So far in 2025, Mastercard shares are down 5.1%, underperforming the broader industry’s 1.4% decline. While Mastercard has fared better than American Express, which dipped 16.8%, it still lags behind Visa’s 2.7% gain. The S&P 500 has also lost 7.5% year to date, underscoring the cautious tone across markets.

YTD Price Performance: MA, V, AXP, Industry & S&P 500

Image Source: Zacks Investment Research

Mastercard’s Near-Term Outlook is not Exciting

Despite Mastercard’s strong fundamentals, the near-term picture is clouded by growing macroeconomic headwinds. Global consumer spending growth is losing steam, with discretionary categories expected to take a hit — segments where Mastercard typically sees stronger transaction volumes and higher fees.Although inflation has eased somewhat, it continues to squeeze household budgets, reducing the frequency and size of card transactions. Meanwhile, central banks remain cautious. Any future rate cuts are now more likely to signal economic weakness than renewed growth.

Business sentiment is also turning cautious, particularly in Europe and parts of Asia. This might dampen cross-border volume growth — one of Mastercard’s most important growth drivers. As such, market stakeholders will keep an eye on Asia-Pacific economies, where a slight pickup in GDP growth is expected this year. Meanwhile, the digital payments space is becoming increasingly crowded, with fintech challengers and regional players chipping away at market share and pricing power.

The recent 90-day tariff pause by President Trump may offer short-lived relief, but it excludes China, which now faces 125% tariffs while maintaining a 10% base tariff on most other countries. This limited scope means that supply chain disruptions, elevated costs and uncertain trade dynamics will persist. Worse, the temporary nature of the pause leaves companies in limbo, further weighing on investment and consumer confidence — both crucial to Mastercard’s transaction-driven business model.

Can Mastercard Fight Back?

Yes. One of Mastercard’s more promising growth drivers is its Value-Added Services (VAS). These offerings — spanning cybersecurity, data analytics, and market insights — have become increasingly important, especially after COVID-19. VAS revenue rose 17.7% in 2023 and 16.8% in 2024, reflecting rising demand from businesses seeking deeper consumer engagement and operational insights. This shift into less cyclical, service-based income could add more resilience to Mastercard’s top line.

Additionally, Mastercard continues to expand across emerging markets in Southeast Asia and Latin America, where underbanked populations offer long-term growth potential. The company’s strong cash reserves enable it to pursue both organic expansion and strategic acquisitions, positioning it well for future scale.

Other Concerns

Mastercard’s balance sheet has become a point of concern. Its long-term debt stood at $17.48 billion at 2024-end, up sharply from $14.34 billion just a year earlier. The company’s long-term debt-to-capital ratio of 72.8% is significantly above the industry average of 38.5% and higher than Visa’s 30.3% and American Express’s 62.2%. This leverage could limit Mastercard’s flexibility, particularly in an environment where growth becomes harder to chase and capital becomes more expensive.

Adjusted operating expenses have been on an upward trend, increasing 10.7% in 2022, 10.5% in 2023, and 11% in 2024. Additionally, rising rebates and incentives — a contra-revenue item — are likely to weigh on net revenue growth. In 2024 alone, this metric rose 16.1% year over year.

Beyond macroeconomic and financial concerns, Mastercard also faces rising regulatory scrutiny and legal challenges. One key concern is the Credit Card Competition Act of 2023, which aims to introduce more routing options for credit card transactions, potentially breaking up the Visa-Mastercard duopoly. If passed, this legislation could lower interchange fees. Additionally, Mastercard continues to face antitrust lawsuits both in the United States and internationally, particularly in Europe, where claims over excessive interchange fees have led to multiple legal actions.

Unfavorable Estimate Revision for MA

The Zacks Consensus Estimate for Mastercard’s 2025 and 2026 earnings per share witnessed three and two downward revisions, respectively, against no movement in the opposite direction.

Image Source: Zacks Investment Research

Conclusion: Sell MA Stock for Now

Mastercard remains a high-quality company with attractive long-term potential.But its stretched valuation, rising macroeconomic pressures, downward estimate revisions and increasing debt levels paint a far less compelling near-term picture. Given these headwinds, the stock appears vulnerable, and investors may be better off trimming exposure and waiting for a more favorable entry point.

Currently, Mastercard holds a Zacks Rank #4 (Sell), reflecting bearish sentiment surrounding its near-term performance.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Mastercard Incorporated (MA): Free Stock Analysis Report

Visa Inc. (V): Free Stock Analysis Report

American Express Company (AXP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

PPI for March Comes in Negative

Fri, 11 Apr 2025 15:18:00 +0000

There is plenty of economic news and quarterly earnings reports ahead of today’s open, but probably the biggest “event” to occur over this week, culminating this morning, is that trade between the U.S. and China — worth $582 billion in 2024 — has apparently ground to a halt. Both countries now have +125% tariffs on the other country’s goods (China imposes its tariff April 12) has made goods exchanges untenable. Perhaps we’ll hear than talks will be getting underway today? Still waiting.

Should this impasse hold steady for a prolonged period of time, we may expect to see pressure placed on other economic relationships besides trade between the two countries. For instance, China owns an outsized amount of U.S. mortgage-based securities. What is the risk to the domestic housing market, for instance, if this is to be weaponized against the U.S.?

PPI Numbers Slide Toward Disinflation: -0.4%

The second shoe on March price-inflation levels fell this morning with a new Producer Price Index (PPI) report showing wholesale prices somewhat mirroring yesterday’s retail Consumer Price Index (CPI), in that they are tracking decisively toward lower inflation. Importantly, these numbers are from a month ago; a couple things have changed since then…

Headline PPI in March swung to a negative -0.4% from +0.2% expected, equalling the lowest level since October of 2023. To find a lower print on headline you’d have to go back to the scorched earth of the early Covid months: April 2020. Year over year PPI hacked off half a percentage point from the previous month to +2.7%. Expectations were for a 10 basis-point (bps) increase to +3.3%.

Stripping out volatile food and energy costs bring these PPI numbers in slightly better focus: month over month came in -0.1%, 40 bps lower than the estimated +0.3%, and 30 bps lower than the prior month’s read. Ex-food, energy and trade, this also comes in below projections to +0.1%, the lowest since November. Year over year, core PPI reached +3.3% — in-line with February, but 30 bps under estimates. Ex-food, energy and trade year over year ticked up to +3.4%.

Q1 Earnings Season Gets Rolling: JPM, WFC, MS, BLK

Shares of JPMorgan Chase JPM are up +1% on its Q1 earnings release this morning. A headline $5.07 per share easily surpassed the $4.62 in the Zacks consensus, and swinging to a positive year over year versus expectations. Revenues of $46.01 billion were nicely above the $43.23 billion projected. The biggest of the big Wall Street banks has now beaten earnings estimates in 11 straight quarters, with a trailing 4-quarter average beat of +20%.

Wells Fargo WFC also beat on Q1 earnings this morning — $1.27 per share versus $1.23 — but missed expectations on the top line: $20.1 billion, -3.1% from what analysts were expecting. Like JPM, Wells Fargo is only up fairly marginally on this news, after trading down -10% year to date.

Morgan Stanley MS posted dominant beats in its Q1 results out before today’s opening bell: earnings of $2.60 per share versus $2.23 anticipated (and clearly better than the $2.02 per share reported a year ago), on revenues of $17.74 billion, substantially outperforming the $16.64 billion in the Zacks consensus (and the $15.14 billion reported in the year-ago quarter). Shares are up even more marginally, however, even after falling -15% since the first of the year.

BlackRock BLK put up mixed results in Q1, beating estimates on the bottom line with earnings of $11.30 per share versus $10.25 expected (and strongly up from $9.81 per share a year ago). Revenues, however, came in at $5.28 billion, missing the Zacks consensus by -1% while improving from $4.73 billion in Q1 of 2024. This stock is up +1.3% in early trading, after tumbling -16% year-to-date.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wells Fargo & Company (WFC): Free Stock Analysis Report

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

Morgan Stanley (MS): Free Stock Analysis Report

BlackRock (BLK): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Here's Why Charles River Associates Stock is a Great Pick

Fri, 11 Apr 2025 15:17:00 +0000

Charles River Associates CRAI has performed extremely well over the past year and has the potential to sustain the momentum in the near term. Consequently, you should add the stock to your portfolio if you have not taken advantage of the share price appreciation yet.

What Makes CRAI an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of CRAI have surged 17% against the industry’s 13% decline.

Charles River Associates Price

Charles River Associates price | Charles River Associates Quote

Solid Rank: CRAI carries a Zacks Rank #2 (Buy) at present and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition.

Northward Estimate Revisions: Three earnings estimates for 2025 have moved north in the past 60 days versus no southward revision, indicating analysts’ confidence in the company. The Zacks Consensus Estimate for 2025 earnings has increased 3.1% at the same time.

Positive Earnings Surprise History: Charles River has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 25.9%.

Strong Growth Prospects: The Zacks Consensus Estimate for CRAI’s 2025 revenues is pegged at $717.7 million, indicating 4.4% year-over-year growth. The consensus estimate for earnings is pegged at $7.75 per share, implying 2% growth year over year.

Growth Factors: Given the nature of its business, CRAI’s success depends on the talent that it can acquire and retain. CRAI has built and sustained a strong reputation for delivering high-quality consulting services driven by its highly qualified professionals. Around 74% of its senior staff hold advanced degrees, including doctorates, and are recognized field leaders. At the end of 2024, CRAI had 946 consulting staff, comprising 151 officers, 552 other senior staff and 243 junior staff.

Charles River returns value to shareholders through dividends and share repurchases. Over the years, the company has steadily increased its dividend payouts, paying $9.6 million in 2022, $10.8 million in 2023 and $12.3 million in 2024. Dividend per share has grown alongside, rising from $1.24 in 2022 to $1.44 in 2023 and $1.75 in 2024, reflecting the company’s consistent commitment to enhancing shareholder returns.

Other Stocks to Consider

Some other top-ranked stocks are Affirm AFRM and Baidu BIDU.

Affirm sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM has a long-term earnings growth expectation of 36.2%. It delivered a trailing four-quarter earnings surprise of 84.1% on average.

Baidu currently sports a Zacks Rank of 1, too.

BIDU has a long-term earnings growth expectation of 4.2%. It delivered a trailing four-quarter earnings surprise of 19.1% on average.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Charles River Associates (CRAI): Free Stock Analysis Report

Baidu, Inc. (BIDU): Free Stock Analysis Report

Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research