Latest news with #TechSector
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Advanced Auto Parts and Birkenstock are part of Zacks Earnings Preview
For Immediate Release Chicago, IL – August 11, 2025 – releases the list of companies likely to issue earnings surprises. This week's list includes Advanced Auto Parts AAP and Birkenstock BIRK. 3 Key Takeaways from Q2 Earnings Season As we head into the final phase of the Q2 earnings season, we can say with complete confidence that the overall earnings picture remains strong and resilient. Even more importantly, the outlook for the current and coming quarters has clearly started improving, with the favorable revisions trend particularly notable for the Tech sector. While we still have a few key Tech sector players among the 9% of S&P 500 members that are still to report results, the primary focus of the still-to-come reports will be on the retail space. We have a couple of retail-centric companies, such as Advanced Auto Parts and Birkenstock on deck to report this week, but the bulk of the sector results will start coming out the following week. Here are the three key takeaways from the Q2 earnings season. First, we saw an above-average proportion of companies beat Q2 EPS and revenue estimates, with the beats percentage particularly notable on the revenues side. Through Friday, August 8 th, we have seen Q2 results from 455 S&P 500 members, or 91% of the index's total membership. Total earnings for these companies are up +11.6% from the same period last year on +5.9% revenue growth, with 80.4% beating EPS estimates and 79.1% beating revenue estimates. This is a notably better performance relative to what we have seen from this group of index members in other recent periods. Second, we are on track for a new all-time quarterly record for the aggregate Q2 earnings total for the S&P 500 index, surpassing the previous record set in 2024 Q4. Looking at Q2 as a whole, combining the actual results from the 455 index members that have reported already with estimates for the still-to-come 45 companies, total S&P 500 earnings are expected to be up +12.1% from the same period last year on +6.2% higher revenues. The Q2 earnings growth rate improves to +13.9% when the Energy sector's drag is removed from the results and weakens to +8.5% when the Tech sector's substantial contribution is excluded from the aggregate numbers. The aggregate dollar total for Q2 is a new all-time quarterly record. Aggregate earnings are on track to reach $582 billion, up from $556.2 billion in the preceding period, $519.3 billion in the year-earlier quarter, and the previous record of $573.6 billion in 2024 Q4. Third, the revisions trend has turned positive, with the trend particularly notable for the Tech sector. For the current period (2025 Q3), the expectation today is for earnings growth of +5.1% for the S&P 500 index on +5.6% higher revenues. Since the start of July, Q3 estimates have increased for 6 of the 16 Zacks sectors, with the biggest gains for the Tech, Finance, Energy, and Retail sectors. On the negative side, Q3 estimates have declined for the remaining 10 sectors since the start of the period, with the biggest declines for the Medical, Transportation, Basic Materials, Construction, and Auto sectors. For the Tech sector, Q3 earnings are currently expected to be up +10.4% from the same period last year on +11.5% higher revenues. The Earnings Big Picture In terms of S&P 500 index 'EPS', these growth rates approximate to $257.35 for 2025 and $289.35 for 2026. For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >> >> Earnings Outlook Steadily Improves: Mag 7 Earnings Loom Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Birkenstock Holding PLC (BIRK): Free Stock Analysis Report
Globe and Mail
3 days ago
- Business
- Globe and Mail
Alphabet Rises 11% in a Month: Buy, Sell or Hold the GOOGL Stock?
Alphabet GOOGL shares have appreciated 11.3% in the past month, outperforming the broader Zacks Computer & Technology sector's appreciation of 3.8%. The outperformance can be attributed to Alphabet's strong second-quarter 2025 results that revealed the benefits of AI infusion across its Search business and a surge in Google Cloud revenues. In the second quarter of 2025, Google Search and other revenues increased 11.7% year over year to $54.19 billion, surpassing the Zacks Consensus Estimate by 3.04% and accounting for 56.2% of total revenues. Overall queries and commercial queries on Search continued to grow year over year in the reported quarter. Google continues to dominate the Search business, handling over 5 trillion queries annually, per Semrush. The company has been actively embedding AI, especially within Search, to enhance user experience, provide better AI-focused features and consequently improve ad performance. Google accounts for 89.66% market share, followed by Microsoft' s MSFT Bing, with 3.88% share. Google Cloud revenues surged 31.7% year over year to $13.62 billion and accounted for 14.1% of the quarter's total revenues. The figure beat the Zacks Consensus Estimate by 4.24%. The year-over-year growth was driven by growth in Google Cloud Platform (GCP) across core GCP products, AI Infrastructure, and Generative AI Solutions. Google Cloud's annual revenue run rate is now more than $50 billion. The strong growth in Search and Google Cloud has helped Alphabet shares outperform its closest peers in the cloud computing domain, Microsoft and Amazon. According to Synergy Research Group data, Amazon 's AMZN cloud arm, Amazon Web Services, continues to lead with a 30% market share in the second quarter of 2025, while Alphabet and Microsoft had 20% and 13% market share, respectively. GOOGL Stock's Performance AI Push to Boost GOOGL's Prospects Alphabet is advancing visual and contextual search capabilities. The Circle to Search feature is now active on more than 300 million devices. The company is adding functionalities to help people explore complex topics and ask follow-up questions without switching apps. For instance, gamers can now use Circle to Search while playing mobile games to see an AI Overview or answers. AI Overviews now reach more than 2 billion users per month and are available in over 200 countries across 40 languages. It is now driving over 10% more queries globally. Powered by Gemini 2.5, AI Overviews currently delivers the fastest AI responses in the industry. The combination of lens or Circle to Search, together with AI Overviews, is driving multimodal search usage. Google's AI-powered Search features are driving deeper engagement, with AI Mode offering advanced reasoning and multimodal responses. Users are generating queries twice as long as those in traditional searches. The launch of AI Mode in the United States and India — where it currently has more than 100 million monthly active users — is expected to drive further growth. Google Cloud is benefiting from its partnership with the likes of NVIDIA and PayPal PYPL. Google Cloud was the first cloud provider to offer NVIDIA's B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. PayPal will expand its Google Cloud adoption for AI-driven recommendations, transaction processing and enhanced security. The partnership expands the availability and functionality of PayPal's payment services and capabilities across a range of Google products. Google Cloud's expanding clientele is expected to boost Alphabet's top line. In the second quarter of 2025, the number of deals was over $250 million, doubling year over year, and the number of new GCP customers increased by nearly 28% sequentially. Earnings Estimate Revisions Show Upward Trend for GOOGL The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.32 per share, up 6.4% over the past 30 days, indicating 9.43% year-over-year growth. The consensus mark for 2025 earnings is pegged at $9.94 per share, up 4% over the past 30 days, suggesting 23.6% over 2024's reported figure. Here's Why Investors Should Hold GOOGL Stock Now Alphabet's growing AI capabilities and significant investments in cloud computing bode well for long-term investors. So, investors who have already invested in GOOGL stock should continue to hold it. However, the Value Score of C suggests a stretched valuation for Alphabet at this moment. Alphabet stock is trading at a premium, with a forward 12-month Price/Sales of 6.64X compared with the Zacks Internet Services industry's 5.38X and Amazon's 3.18X. However, GOOGL stock is cheaper than Microsoft's 12X. Price/Sales Ratio (F12M) Regulatory headwinds like the lawsuit between the Department of Justice (DOJ) and GOOGL over Google Search are a concern. The DOJ argues that Google has inked anticompetitive deals with Apple and other companies for prime placement of its search engine and plans to break up Google to separate products like Chrome, Search and Android. DOJ's proposal doesn't bode well for Alphabet, given growing competition from AI-powered products like ChatGPT, Grok, DeepSeek, Perplexity and Meta AI. GOOGL is suffering from a lack of capacity, and until new capacity comes online this year, cloud revenues are expected to witness increased variability. The company expects to invest roughly $85 billion in capital expenditures in 2025, which is aimed at building up technical infrastructure, primarily for servers, followed by data centers and networking. Alphabet currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to start accumulating the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days 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 Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
5 days ago
- Business
- Yahoo
Uber Technologies (UBER) Announces Q2 Earnings Growth and US$20 Billion Share Repurchase
Uber Technologies recently announced considerable positive developments, including robust second-quarter revenue growth and a significant share buyback program, which may have bolstered investor confidence. The company's stock rose 8%, aligning with a broader market uptrend influenced by positive corporate earnings announcements and a general uptick in the tech sector. Uber's optimistic third-quarter guidance, including contributions from its Trendyol Go acquisition, and collaborative strategic initiatives like partnerships in autonomous vehicle operations, suggest a positive trajectory. These factors seem to have portended well with the prevailing sentiment, enhancing its appeal against recent market volatility concerns. Uber Technologies has 3 possible red flags (and 1 which is concerning) we think you should know about. Rare earth metals are the new gold rush. Find out which 25 stocks are leading the charge. Uber Technologies's recent announcements of robust quarterly revenue growth and a major share buyback program bode well for enhancing shareholder value, aligning with its strategic narrative of expanding user engagement and cross-platform integration. Over the past five years, Uber's total return, including share price appreciation and dividends, has been 189.30%, showcasing strong longer-term performance. Comparatively, Uber's shares have outpaced both the broader market and the US Transportation industry in the past year, demonstrating resilience and adaptability amid market shifts. The company's strategic moves in autonomous vehicles and partnerships could potentially impact future revenue and earnings forecasts. Analysts expect Uber's revenue to grow 12.14% per year, although earnings are anticipated to decline by an average of 1.7% annually over the next three years. Recent positive developments, however, could refine these outlooks if execution aligns with growth expectations. Currently trading at US$89.22, Uber's share price is below the consensus price target of US$103.05, indicating a potential upside according to analyst consensus. While the price target suggests further growth potential, investors should consider both risks and opportunities as part of their own assessments. According our valuation report, there's an indication that Uber Technologies' share price might be on the cheaper side. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UBER. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
7 days ago
- Business
- Globe and Mail
Bull of the Day: Netflix, Inc. (NFLX)
Investors can buy Netflix, Inc. ( NFLX ) stock roughly 15% below its all-time highs and at some of its most oversold RSI levels over the past few years to start August. Netflix easily outperformed the stock market and the Tech sector over the last several years, without the benefit of artificial intelligence euphoria. The streaming TV and technology giant is also far less exposed to potential tariff and trade war setbacks compared to many of its big tech peers. Wall Street took profits on Netflix stock throughout July after its furious first-half rally that's part of a 550% surge off its summer 2022 lows. Despite this charge, and its massive long-term outperformance, Netflix offers investors great value. Investors sold the news after the streamer's beat-and-raise second quarter earnings release on July 17, which confirmed Netflix's robust growth outlook in a non-speculative and stable growth area of the economy that's not reliant on the AI revolution. This backdrop makes Netflix one of the best technology stocks to buy in the second half of 2025. Is Netflix the Best Non-AI Tech Stock to Buy Now? Netflix stock tumbled between November 2021 and July 2022 as Wall Street feared its growth days were numbered and that it wouldn't be able to churn out huge profits like Apple and other mega-cap tech stocks. That selloff seems like a lifetime ago. Netflix successfully addressed all of Wall Street's worst fears and then some, helping the stock blow away all of the Magnificent 7 stocks outside of Nvidia during the past three years. More recently, NFLX has charged 95% higher in the last year, tripling the Zacks Tech sector. NFLX rolled out a lower-cost, ad-supported subscription plan in the fall of 2022. Netflix has also successfully raised prices on its top-tier premium plans while remaining one of the best deals in streaming TV for ad-based plans compared to Disney and other rivals. And the company effectively cracked down on account sharing to help boost user growth. Netflix added 18.9 million paid subscriptions in Q4 2024, marking its largest quarter of net adds on record, topping the Covid-lockdown surge. It closed 2024 with 301.63 million global paid memberships, up 16% year-over-year. NFLX announced last April that it would stop disclosing subscriber growth each quarter starting with the first quarter of 2025, though it will publicize major milestones. The company effectively streamlined its operations, grew its user base, rolled out more content, and, most importantly, expanded its bottom line. Netflix has also improved its balance sheet, and its board authorized an additional $15 billion stock buyback program in early 2025. On a macro level, Netflix doesn't need to spend billions of dollars on data centers or other AI-focused growth efforts to thrive. On a speculative note, NFLX could be due for a stock split, with it trading at around $1,170 a share. Netflix's Growth Plans Are Paying Off Netflix completely transformed Hollywood entertainment and television over the last 15-plus years, turning it into one of the biggest winners on Wall Street. The company remains near the top of the crowded streaming industry despite growing challenges from deep-pocketed rivals such as Apple ( AAPL ) and Amazon, and heavy investments from Disney ( DIS ) and other traditional titans. NFLX's successful expansion into big-budget blockbuster movies and TV and reality TV are helping it thrive as the U.S. and the world cut the cord for good. Live sports were the last hope for linear TV and the biggest market for television advertising. Yet Disney is launching a full-scale direct-to-consumer streaming version of ESPN in the fall at a $29.99 per month price point. Netflix already made its way into live sports, landing deals with the NFL, WWE, boxing, and more. On top of that, it's rolling out more video game content to make it as close to a one-stop entertainment shop as possible. There is growing speculation that Netflix will experiment with user-generated content to help compete against YouTube, which owns the largest share of TV viewing (12%), according to Nielsen, ahead of Disney, Paramount, NBC Universal, and Netflix. NFLX topped our Q2 earnings estimate on July 17 and provided upbeat guidance, with its FY26 consensus up over 5% since then. The company's recently improving earnings outlook earns Netflix a Zacks Rank #1 (Strong Buy) and extends its impressive run of upward earnings revisions. The company confirmed last quarter its plans to 'roughly double ads revenue in 2025.' Separately, The Wall Street Journal reported earlier this year that Netflix is aiming to double its annual revenue by 2030. In the short run, NFLX is projected to increase its revenue by 16% in 2025 and 13% next year to reach nearly $51 billion, doubling its 2020 total. The streaming company more than tripled its earnings between 2020 and 2024. Netflix is expected to grow its EPS by another 31% in 2025 and 23% in FY26, following 65% growth last year. The company is targeting a 29.5% operating margin for 2025, up from 26.8% last year. Buy Netflix Stock On the Dip for Great Value Netflix was one of the best-performing stocks of the 2010s, and it is up 260% since the start of 2020 to outpace Tech's 150%. It soared 415% in the last three years and 550% from its 2022 lows, leaving all of the Magnificent 7 (outside of Nvidia) in the dust. Despite its roughly 15% drop from its June 30 peaks, NFLX is still up 30% in 2025 vs. Tech's 9%. The pullback over the last month has it trading at some of its lowest RSI levels over the past five years, down from some of its highest. The stock is trying to hold its ground near its late April/early May breakout levels and its long-term 21-week moving average. Any drop to Netflix's 200-day would likely represent an even better buying opportunity. But playing the market timing game is no easy task. Image Source: Zacks Investment Research Netflix's pullback might not last much longer since it trades at more than a 90% discount to its 10-year highs and 31% below its 10-year median at 39X forward earnings. On the price-to-earnings-to-growth (PEG) ratio front, Netflix trades in line with Tech at 1.7 despite its massive outperformance and nearly 60% below its five-year highs. Disney's PEG ratio sits at 1.6, yet DIS stock climbed just 14% in the past 10 years. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report
Globe and Mail
15-07-2025
- Business
- Globe and Mail
CYBR Stock Trades at a P/S of 12.81X: Should You Buy, Sell or Hold?
CyberArk Software CYBR shares are overvalued, as the Value Score of F suggests. CYBR shares are trading at a significant premium compared to the Zacks Computer & Technology sector. Its 12-month Price/Sales (P/S) of 12.81X is higher than the broader sector's 6.59X. Is CYBR's premium valuation justified? Let's dig deep to find out. CyberArk Forward 12 Months (P/S) Valuation Chart Traction in Identity Security Drives CyberArk CyberArk has been leading the identity security space, where it witnessed a CAGR of 44% from 2020 to 2024 and reached an annual recurring revenues (ARR) of $1.17 billion in fiscal 2024 alone. CYBR crossed the milestone of 10,000 customers recently and projects huge growth opportunities given the total addressable market scope for its identity security solutions to be $80 billion. In the first quarter of 2025, CyberArk's subscription ARR grew 65% year over year and is expected to rise on the back of robust demand. CyberArk is keeping pace with the growing cybersecurity market by capitalizing on the recent trends. CYBR's implementation of AI solutions, including CyberArk Secure AI Agents Solution and CORA AI, has deepened its capability. CyberArk also collaborated with Accenture ACN to enhance its identity security platform with Accenture's AI Refinery. CYBR's implementation of CORA AI and Secure AI Agents into CyberArk's identity security platform will aid its customers to secure a full spectrum of identities, including human, AI and machine. CYBR will also be exposed to Accenture's client base after Accenture's AI Refinery integration, potentially unlocking large-scale deployments. As CyberArk continues to enhance its offerings with upgrades and AI implementation, the rise in adoption of its identity security products will rise. Furthermore, CYBR is also expanding its capabilities through inorganic growth. CYBR's acquisitions of Zilla Security and Venafi have expanded its expertise in identity governance and machine identity. The acquisitions also enhanced its recurring revenues and market share. These factors have boosted CyberArk's top line, which is reflected in its recent guidance. For 2025, CyberArk expects revenues in the band of $1.313-$1.323 billion. The Zacks Consensus Estimates for 2025 revenues is pegged at $1.32 billion, reflecting year-over-year growth of 31.88%. CyberArk Drives Growth Through Key Alliances Since its inception in 1999, CyberArk has expanded its customer base to include more than 5,400 global businesses, which comprise over 50% of the Fortune 500 and 35% of the Global 2000 companies. One of the key drivers for customer growth is CyberArk's strategic partnerships with tech giants like Microsoft MSFT, Amazon 's AMZN Amazon Web Services ('AWS') and Alphabet's Google Cloud. By integrating its solutions with Microsoft's Azure Active Directory, Amazon's AWS cloud infrastructure and Alphabet's Google Cloud, CyberArk deepened its ability to secure cloud environments, offering robust identity management solutions across various IT ecosystems. Microsoft and CyberArk further expanded on Microsoft's External Authentication Methods, allowing CyberArk users to use FIDO2-based MFA. With all these enhancements in place, CyberArk provides its customers with comprehensive and integrated security solutions, making CYBR an indispensable player in today's identity security solutions landscape. CYBR's high gross margin reflects its success in its premium SaaS business and 18% non-GAAP operating margin reflects operational discipline while CyberArk continues to scale. The Zacks Consensus Estimates for its 2025 bottom line is pegged at $3.83, indicating a year-over-year rise of 26.4%. Image Source: Zacks Investment Research CyberArk Stock Outperforms Sector Year to date, CyberArk shares have outperformed the sector and industry. The stock has gained 13.2%, outperforming the Zacks Computer and Technology sector's growth of 7.4% in the same timeframe. CyberArk YTD Price Performance Chart CyberArk: Buy, Sell or Hold the Stock? CyberArk's innovative cybersecurity portfolio with AI integration makes it well-positioned to benefit from the strong TAM of the identity security space. This bodes well for long-term investors. The company's collaboration with industry leaders and high-margin operational business model justifies its premium valuation at present. CyberArk currently sports a Zacks Rank #1 (Strong Buy), suggesting investors that it is the right time to buy the stock. You can see the complete list of today's Zacks #1 Rank stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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 Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report
