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Listen to the Market's Whispers: Buy on Upcoming Weakness
'Be fearful when others are greedy, and be greedy when others are fearful.' – Warren BuffettThe market rally off the April lows has been nothing short of extraordinary. In fact, it has been so swift and relentless that many investors have been caught off guard, with positioning far below where it likely should does that mean for stocks going forward?It means that even if we have some short-term downside (which appears to be the case amid rising treasury yields along with the recent U.S. credit rating downgrade), pullbacks are likely to be relatively shallow and short-lived as underexposed investors look to quickly buy any has been a bullish move reminiscent of the astonishing rally off the 2020 COVID-induced plunge. I have to admit, I wasn't expecting a 'V' shaped rally this time around. Still, we noted back in April that there was a large percentage of stocks in oversold territory. Combined with historically bearish sentiment along with a high level of fear, we had the recipe for a strong lockout rally to materialize – and that's exactly what we saw This Rally in PerspectiveA bit over a month ago, the S&P 500 was down over 15% on the year and narrowly avoided an official bear market (in fact, it closed down 19% from its highs and touched bear territory intraday). The Nasdaq officially entered by mid-May, the S&P 500 soared back into the green for 2025. It was the fastest recovery in over 40 years, with the index erasing its 15% YTD loss in less than six weeks. It's a good reminder that one of the worst mistakes we can make is to panic sell during times of market reached maximum headline fear in April as the tariff problem was covered extensively by financial media outlets. Markets have a habit of bottoming on maximum fear. What many weren't expecting were the positive headlines that would soon follow, helping to relieve some of the volatility that plagued markets in the first market is now telling us two things. First, it's to expect a quicker-than-anticipated resolution to the tariff issues and trade wars. And alongside that, the assumption is that inflation remains under control, which will allow the Fed to resume the rate-cutting process. This should provide a further tailwind to equity evidence is now pointing to the notion that this correction in the S&P 500 has come to an abrupt end. Let's take a look at a few reasons why the worst of the selling is likely behind . . .------------------------------------------------------------------------------------------------------Deadline Approaching: Zacks' 7 Best Stocks for JuneFrom 220 Zacks Rank #1 Strong Buy stocks, our experts hand-picked these 7 compelling companies as the most likely to spike NOW. While we can't guarantee 100% success, they are likely to jump sooner and climb higher than any others you could buy this distribution is limited, so don't miss out. The deadline is midnight Sunday, June 1st. Hurry – See Stocks Now >>------------------------------------------------------------------------------------------------------Three Motives to Buy on Weakness from HereBearish Sentiment Remains PrevalentDespite the latest rally, the bears won't give up. Most investors still remain bearish amid the recent volatility, so there's certainly fuel to push markets even higher in the coming start with consumers and individual investors. Consumer sentiment plunged in May as Americans grew more pessimistic about the inflation outlook. The latest University of Michigan consumer sentiment survey showed its sentiment index registered at 50.8, its second-lowest reading on record. Image Source: University of Michigan, Survey Research Center, Surveys of ConsumersAlong the same lines, the American Association of Individual Investors (AAII) – a nonprofit organization whose purpose is to educate individual investors – also conducts sentiment surveys. As recently as early May, the percentage of AAII investors spent 11 straight weeks with more than 50% bears, which marked a new record. Clearly, pervasive bearish sentiment has dominated the minds of individual about professional fund managers? The recently released Bank of America Global Fund Manager Survey showed the fifth-lowest level on record in terms of fund manager sentiment. Additionally, it showed a record number of participants who intend to cut U.S. equity survey also showed the largest two-month jump in cash since April 2020, along with the 4th highest recession expectations ever. Given this survey looks at managers who manage actual portfolios, this is a potential contrarian Index Completes RoundtripIn bull markets, spikes in the volatility (VIX) index typically represent great buying opportunities. Remember, it's not imperative for us to call the exact top in the VIX or the exact bottom in the market. We're not in the business of calling tops and bottoms, we're in the business of making money consistently and allowing gains to compound over the VIX index closes above the 50-price level for the first time in a cycle, it has likely been preceded by poor market performance driven by panic. We took a look at past instances in which the VIX closed above 50 and subsequently plunged to close back below 30. This indicator has been known as a 'bear market killer.' Image Source: Chart Courtesy of back to the early 2000s, the volatility index only experienced this exact type of movement two other times: following the Great Recession low in 2009, and after the COVID-19 bear market in 2020. Both instances marked an important bottom in the market. And looking out one year from the date the VIX closed back below 30, the S&P 500 rose +23.2% and +44.5% in those respective average drawdown after each signal was 3.55%, while the maximum drawdown was 3.75%. This tells us that it wouldn't be too shocking to see a bit of a retracement here, but any pullback should be relatively since then, the VIX has actually managed to close back below 20, marking the largest 6-week volatility crash in history. Looking at the 20 other biggest monthly declines in the VIX, the 1-year forward returns for the S&P 500 averaged more than +20%, telling us to keep an open mind about better-than-expected outcomes Remains on a Downward Trajectory To top it all off, inflation has remained tame this year even in the face of President Trump's tariffs. April's Consumer Price Index (CPI) report showed inflation pressures actually eased, despite it being the first month that many tariffs were in effect. Data from the Bureau of Labor Statistics showed that consumer prices increased just 2.3% over the prior year, below estimates of 2.4%. It marked the lowest annual increase since February 2021. Image Source: Zacks Research SystemOn a 'core' basis, which strips out volatile food and energy components, prices rose 2.8% over the past year, in line with a more dovish signal, Federal Reserve Bank of Cleveland President Beth Hammack recently indicated that policymakers could move forward with a rate cut in June if the data comes in as expected.'If we have clear and convincing data by June, then I think you'll see the committee move if we know which way is the right way to move at that point in time,' Hammack downward trend in inflation should prompt the Fed to resume the rate-cutting process, which will likely serve as another boost for stocks moving Thoughts These tailwinds are presenting a bullish setup for equities. Many individual stocks are now forming proper bases, another sign that this latest push higher has legs.I'll leave you with this. The S&P 500 has been in 11 bull markets (not including the current one) since 1949. The index hit a new high in January of 2024 following the inflation-induced bear market of 2022. Dating back to the 1950s, once those former highs were put in the rearview mirror, bull markets have lasted an average of another 4.5 overlooked fact suggests the potential for more gains ahead that could be substantial. Investors normally underestimate the length and magnitude of bull markets. It looks like this latest correction will turn out to be a great buying in my opinion, it's still early. Bearish investor sentiment, declining volatility, and a tame inflation trend suggest further gains are on the Advantage Today The time is now to get in (and not miss out) on more gains to has just released a brand-new Special Report, 7 Best Stocks for the Next 30 Days, and you're invited to be one of the first to see team of experts combed through the latest Zacks Rank #1 Strong Buys and handpicked seven exciting companies poised for significant price increases. They're likely to jump sooner and climb higher than any other stock you could buy this future success isn't guaranteed, recent winners have climbed +46.4%, +61.8% and +97.3% in just 30 days.¹Our latest picks could soar just as high, or higher, and you can see them for only $1. You'll also get 30-day access to all of Zacks' private portfolios for the same dollar.I encourage you to take advantage right away. The earlier you get in, the greater profits you stand to make. But don't delay. We're limiting the number of investors who share our 7 Best Stocks, so this opportunity will end midnight Sunday, June and check out Zacks' portfolios for just $1 >> Good Investing,Bryan Hayes, CFABryan Hayes, CFA, manages our Zacks Income Investor and Headline Trader portfolios. He employs a combination of fundamental and technical analysis and has developed a unique approach to selecting stocks with the best profit potential. You can also find him covering a host of investment topics for The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research 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
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8 hours ago
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Plus Therapeutics (PSTV) Reports Q1 Loss, Misses Revenue Estimates
Plus Therapeutics (PSTV) came out with a quarterly loss of $0.56 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to loss of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -229.41%. A quarter ago, it was expected that this developer of cell therapies would post a loss of $0.51 per share when it actually produced a loss of $0.67, delivering a surprise of -31.37%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Plus , which belongs to the Zacks Medical - Drugs industry, posted revenues of $1.06 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 42.76%. This compares to year-ago revenues of $1.68 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Plus shares have lost about 75.1% since the beginning of the year versus the S&P 500's gain of 0.5%. While Plus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Plus: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.17 on $1.9 million in revenues for the coming quarter and -$0.67 on $8.23 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the top 28% of the 250 plus Zacks industries. 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. Another stock from the same industry, IGC Pharma, Inc. (IGC), has yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. IGC Pharma, Inc.'s revenues are expected to be $0.31 million, up 6.9% from the year-ago quarter. 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 Plus Therapeutics, Inc. (PSTV) : Free Stock Analysis Report IGC Pharma, Inc. (IGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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8 hours ago
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Why AudioEye (AEYE) Dipped More Than Broader Market Today
AudioEye (AEYE) closed at $12.22 in the latest trading session, marking a -0.81% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.13%, while the tech-heavy Nasdaq depreciated by 0.32%. Shares of the company witnessed a gain of 11.19% over the previous month, beating the performance of the Computer and Technology sector with its gain of 10.75% and the S&P 500's gain of 6.43%. The investment community will be paying close attention to the earnings performance of AudioEye in its upcoming release. The company's earnings per share (EPS) are projected to be $0.16, reflecting a 33.33% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.94 million, showing a 17.31% escalation compared to the year-ago quarter. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.71 per share and revenue of $41.51 million, indicating changes of +29.09% and +17.91%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for AudioEye. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.67% higher within the past month. AudioEye presently features a Zacks Rank of #2 (Buy). From a valuation perspective, AudioEye is currently exchanging hands at a Forward P/E ratio of 17.48. This represents a discount compared to its industry's average Forward P/E of 28.91. Investors should also note that AEYE has a PEG ratio of 0.7 right now. 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. The Internet - Software was holding an average PEG ratio of 2.03 at yesterday's closing price. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. 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 Audioeye, Inc. (AEYE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
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8 hours ago
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Cresco Labs Inc. (CRLBF) Reports Q1 Loss, Tops Revenue Estimates
Cresco Labs Inc. (CRLBF) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.01, delivering no surprise. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Cresco Labs Inc. , which belongs to the Zacks Medical - Products industry, posted revenues of $165.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.84%. This compares to year-ago revenues of $184.29 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cresco Labs Inc. Shares have lost about 25.8% since the beginning of the year versus the S&P 500's gain of 0.5%. While Cresco Labs Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cresco Labs Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $170.14 million in revenues for the coming quarter and -$0.09 on $692.17 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 41% of the 250 plus Zacks industries. 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. Ayr Wellness Inc. (AYRWF), another stock in the same industry, has yet to report results for the quarter ended March 2025. This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -14.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ayr Wellness Inc.'s revenues are expected to be $108.73 million, down 7.9% from the year-ago quarter. 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 Cresco Labs Inc. (CRLBF) : Free Stock Analysis Report Ayr Wellness Inc. (AYRWF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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Nutriband Inc. (NTRB) Reports Q1 Loss, Misses Revenue Estimates
Nutriband Inc. (NTRB) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.18, delivering a surprise of -50%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Nutriband , which belongs to the Zacks Medical - Drugs industry, posted revenues of $0.67 million for the quarter ended April 2025, missing the Zacks Consensus Estimate by 6.06%. This compares to year-ago revenues of $0.41 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Nutriband shares have added about 37.2% since the beginning of the year versus the S&P 500's gain of 0.5%. While Nutriband has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Nutriband: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.16 on $0.76 million in revenues for the coming quarter and -$0.56 on $14.09 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the top 28% of the 250 plus Zacks industries. 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. Another stock from the same industry, Plus Therapeutics (PSTV), has yet to report results for the quarter ended March 2025. This developer of cell therapies is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +77.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Plus Therapeutics' revenues are expected to be $1.85 million, up 10.1% from the year-ago quarter. 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 Nutriband Inc. (NTRB) : Free Stock Analysis Report Plus Therapeutics, Inc. (PSTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
