Latest news with #Zacks Consensus
Yahoo
02-08-2025
- Business
- Yahoo
Deere (DE) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Deere (DE) closed at $501.25 in the latest trading session, marking a -4.41% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.6%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 2.24%. The agricultural equipment manufacturer's stock has climbed by 0.65% in the past month, falling short of the Industrial Products sector's gain of 5.21% and the S&P 500's gain of 2.25%. Investors will be eagerly watching for the performance of Deere in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 14, 2025. It is anticipated that the company will report an EPS of $4.62, marking a 26.55% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.26 billion, down 9.92% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.84 per share and a revenue of $38.05 billion, representing changes of -26.46% and -14.99%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Deere. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. As of now, Deere holds a Zacks Rank of #3 (Hold). In the context of valuation, Deere is at present trading with a Forward P/E ratio of 27.83. Its industry sports an average Forward P/E of 20.57, so one might conclude that Deere is trading at a premium comparatively. One should further note that DE currently holds a PEG ratio of 3.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Manufacturing - Farm Equipment industry held an average PEG ratio of 3.32. The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 22% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming 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 Deere & Company (DE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
30-07-2025
- Business
- Globe and Mail
NOW's Subscription Growth Picks Up: A Sign of More Upside?
ServiceNow 's NOW AI-powered platform is helping enterprises undergo business transformation by automating workflows across IT, customer service and business operations. NOW's cloud-based solutions streamline processes and improve productivity through intelligent automation. Growth in subscription revenues is the key driver of NOW's financial performance. In the second quarter of 2025, subscription revenues increased 22.5% year over year to $3.11 billion, surpassing the Zacks Consensus Estimates by 2.66%. Current Remaining Performance Obligations appreciated 21.5% year-over-year to $10.92 billion in the second quarter. ServiceNow secured 89 net new ACV deals over $1 million, including 11 above $5 million, implying strong enterprise demand during the reported quarter. Growth in NOW's subscription business is supported by rising adoption of its innovative product suite. AI-enhanced Pro Plus tiers of core products like ITSM, CSM and HRSD help customers automate workflows and accelerate resolution times. Tools such as Workflow Data Fabric and RaptorDB Pro unify data and support high-performance AI applications. In the reported quarter, the AI Pro Plus deal count increased by over 50% sequentially. ServiceNow also closed its largest Now Assist deal to date, exceeding $20 million, with 21 large transactions involving five or more Now Assist products. With strong adoption trends in place, ServiceNow expects 2025 subscription revenues of $12.785 billion and the Zacks Consensus Estimate for the same is pegged at $12.661 billion. As enterprises deepen platform adoption and expand across AI-driven SKUs, subscription growth is expected to remain the central engine for NOW's revenue expansion. NOW Faces Stiff Competition NOW faces stiff competition in the subscription-driven workflow automation space from the likes of Salesforce CRM and Pegasystems PEGA. Salesforce is benefiting from strong demand for its Einstein AI platform, which integrates across subscription offerings to enhance customer relationship management and automation capabilities. Salesforce has a steady subscription revenue growth driven by AI adoption. Salesforce recently expanded its subscription platform with advanced AI agents and workflow automation tools to compete directly with specialized automation providers like ServiceNow. Pegasystems remains a formidable competitor in the enterprise workflow subscription market, leveraging its GenAI Blueprint solution to accelerate application development. Pegasystems continues expanding its subscription-based platform with AI-powered decisioning capabilities, positioning it as a key rival for enterprise automation budgets in the growing subscription economy. NOW's Share Price Performance, Valuation and Estimates ServiceNow's shares have declined 6.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 11.4% but beating the Zacks Computer- IT services industry's decline of 9.9%. NOW Stock Performance Image Source: Zacks Investment Research ServiceNow stock is trading at a premium, with a forward 12-month Price/Sales of 14.19X compared with the sector's 6.72X. NOW has a Value Score of F. NOW Valuation The Zacks Consensus Estimate for ServiceNow's third-quarter 2025 earnings is pegged at $4.22 per share, which decreased by a penny over the past 30 days. This indicates a 13.44% increase year over year. ServiceNow, Inc. Price and Consensus The consensus mark for NOW's 2025 earnings is pegged at $16.79 per share, which has increased by 25cents over the past 30 days, suggesting 20.62% year-over-year growth. NOW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. 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 Salesforce Inc. (CRM): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Pegasystems Inc. (PEGA): Free Stock Analysis Report
Yahoo
23-07-2025
- Business
- Yahoo
Slowdown in Leveraged Loan Issuance to Hurt Moody's Q2 Earnings
Moody's MCO is scheduled to announce second-quarter 2025 results on July 23, before the opening bell. The company's Corporate Finance line, the largest revenue contributor at the Moody's Investors Service ('MIS') division, is not expected to have witnessed much revenue the second quarter of 2025, global bond issuance activity was somewhat healthy, but there was a notable slowdown in leveraged loan issuance activity from the previous-year of lower repricing activity and an uptick in corporate debt spreads, leveraged loan issuance weakened notably. Among the other two sub-categories within non-financial corporate bonds, investment-grade loans witnessed lower volumes on a year-over-year basis while high yield issuance performed well. The Zacks Consensus Estimate for revenues in the Corporate Finance line of $492 million indicates a 6.3% decline from the prior-year quarter's reported consensus estimate for revenues from the Financial Institutions business line of $198 million suggests a year-over-year increase of 1.5%. The Zacks Consensus Estimate for Public, Project and Infrastructure Finance business revenues of $164 million implies a 6.5% issuance volumes for collateral debt obligations were robust in the to-be-reported quarter. However, commercial mortgage-backed securities and asset-backed securities issuance volumes declined year over year against reasonably tough comps. Hence, Structured Finance revenues are likely to have been negatively impacted. The consensus estimate for the same stands at $123 million, suggesting a 6.1% Zacks Consensus Estimate for MIS division revenues for the to-be-reported quarter of $1.03 billion implies a 3.1% year-over-year decline. Moody's Other Key Factors & Estimates for Q2 Moody's Analytics ('MA') Division: With the demand for analytics rising, revenues from all units at the MA division are expected to have increased in the second quarter. The company's efforts to strengthen the division's profitability through inorganic growth strategies are anticipated to have offered some support. Thus, the division's overall revenues are likely to have risen in the to-be-reported consensus estimate for the MA division's quarterly revenues is pegged at $876 million, indicating an 8.7% increase from the prior-year quarter's Given Moody's inorganic growth efforts, costs related to acquisitions and restructuring are expected to have increased in the to-be-reported quarter, thus resulting in an increase in total expenses. Key Q2 Development for Moody's In June, MCO fully acquired ICR Chile, strengthening its presence in Latin America's domestic credit markets. The terms of the deal were not disclosed and the transaction will not have a material impact on Moody's 2025 financial transaction followed Moody's acquisition of a minority stake in ICR Chile in Fernandez-Romero, managing director of Moody's Local, stated, 'Today's acquisition builds on our successful partnership with ICR and underscores our commitment to Chile's growing debt capital market. Bringing ICR into Moody's Local will enhance our ability to provide high quality credit ratings, research, and analytical services to market participants, while contributing to greater transparency in Latin America.' Earnings Whispers for Moody's According to our proven model, the chances of MCO beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or can uncover the best stocks to buy or sell before they are reported with our Earnings ESP ESP: The Earnings ESP for Moody's is +2.41%.Zacks Rank: The company currently carries a Zacks Rank #3. Q2 Earnings & Sales Expectations for MCO The Zacks Consensus Estimate for earnings is pegged at $3.42, which has been unchanged over the past seven days. The figure indicates a 4.3% rise from the year-ago reported number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Moody's Corporation Price and EPS Surprise Moody's Corporation price-eps-surprise | Moody's Corporation Quote The consensus estimate for sales of $1.85 billion suggests a 1.8% rise from the prior-year quarter's actual. Other Finance Stocks Worth a Look Here are a couple of other finance sector stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time:Prosperity Bancshares, Inc. PB is slated to announce second-quarter 2025 results on July 23. The company currently has a Zacks Rank #3 and an Earnings ESP of +1.33%. The Zacks Consensus Estimate for Prosperity Bancshares' quarterly earnings has been unchanged at $1.40 over the past Banc-Corp ASB has an Earnings ESP of +0.81% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report second-quarter 2025 results on July 24. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks the past seven days, the Zacks Consensus Estimate for Associated Banc-Corp's quarterly earnings has been unchanged at 62 cents. 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 Moody's Corporation (MCO) : Free Stock Analysis Report Prosperity Bancshares, Inc. (PB) : Free Stock Analysis Report Associated Banc-Corp (ASB) : 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
Globe and Mail
22-07-2025
- Business
- Globe and Mail
KeyCorp's Q2 Earnings Beat Estimates, NII & Fee Income Rise Y/Y
KeyCorp 's KEY second-quarter 2025 earnings per share from continuing operations of 35 cents surpassed the Zacks Consensus Estimate by a penny. The bottom line reflected a 40% jump from the prior-year quarter's actual. Results benefited from a rise in net interest income (NII) and non-interest income. The average loan balance increased sequentially, which was another positive. However, higher expenses and a rise in provisions were undermining factors. Net income from continuing operations attributable to common shareholders was $387 million, up 63.3% year over year. KEY's Revenues Improve, Expenses Rise Total revenues increased 20.9% year over year to $1.83 billion. Moreover, the top line beat the Zacks Consensus Estimate of $1.80 billion. NII (on a tax-equivalent or TE basis) increased 27.9% on a year-over-year basis to $1.15 billion. The net interest margin (NIM) (TE basis) from continuing operations expanded 62 basis points (bps) to 2.66%. Both metrics benefited from the lower deposit costs, reinvestment of proceeds from maturing low-yielding investment securities, fixed-rate loans and swaps repricing into higher-yielding investments, the repositioning of the available-for-sale portfolio in the third and fourth quarters of 2024, and an improved funding mix. These benefits were partially offset by the impact of lower interest rates on variable-rate earning assets, and lower loan balances. Our estimate for NII (TE) and NIM was $1.14 billion and 2.62%, respectively. Non-interest income was $690 million, up 10% year over year. The rise was driven by an increase in almost all the components of fee income, except for corporate-owned life insurance income, consumer mortgage income, operating lease income and other leasing gains, and other income. Our estimate for the metric was $673.3 million. Non-interest expenses increased 7% year over year to $1.15 billion. The rise was due to an increase in almost all cost components, except for operating lease expenses and other expenses. We projected the metric to be $1.16 billion. KeyCorp's Loans Rise & Deposits Slip At the end of the second quarter, average total loans were $105.72 billion, up 1.3% from the previous quarter. We had anticipated average total loans of $105.52 billion. Average total deposits were $147.45 billion, down marginally from the prior-quarter end. The fall was due to a reduction in higher-cost commercial client balances and retail CDs. Our estimate for the metric was $150.58 billion. KEY's Credit Quality: A Mixed Bag The provision for credit losses was $138 million, up 38% year over year. Our estimate for provision for credit losses was $120.2 million. Net loan charge-offs, as a percentage of average total loans, rose 5 bps year over year to 0.39%. However, the allowance for loan and lease losses was $1.45 billion, down 6.5% from the prior-year quarter. Non-performing assets, as a percentage of period-end portfolio loans, other real estate-owned property assets, and other non-performing assets, were 0.66%, down 2 bps year over year. KeyCorp's Capital Ratios Improve KEY's tangible common equity to tangible assets ratio was 7.8% as of June 30, 2025, up from 5.2% in the corresponding period of 2024. The Tier 1 risk-based capital ratio was 13.4%, up from 12.2%. The Common Equity Tier 1 ratio was 11.7%, up from 10.5% as of June 30, 2024. Our Take on KEY Decent loan balances, balance sheet repositioning efforts, strategic buyouts and relatively higher interest rates will likely support KeyCorp's revenues in the near term. Weakening asset quality amid a tough macroeconomic backdrop is concerning. KeyCorp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Major Banks The Bank of New York Mellon Corporation 's BK second-quarter 2025 adjusted earnings of $1.94 per share surpassed the Zacks Consensus Estimate of $1.74. Also, the bottom line reflected a jump of 28.5% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) BNY Mellon's results were primarily aided by increased fee revenues and NII. Growth in the assets under custody and/or administration and assets under management balances supported the results. Also, the company recorded a provision benefit in the quarter, which was a tailwind. Wells Fargo & Company 's WFC second-quarter 2025 adjusted earnings per share of $1.54 surpassed the Zacks Consensus Estimate of $1.41. In the prior-year quarter, the company reported earnings per share of $1.33. Wells Fargo's results benefited from an improvement in non-interest income and lower provisions. However, a decline in NII and higher expenses were the undermining factors. 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. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report KeyCorp (KEY): Free Stock Analysis Report
