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Yahoo
2 days ago
- Business
- Yahoo
Barrick Mining and Whirlpool have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release Chicago, IL – August 7, 2025 – Zacks Equity Research shares Barrick Mining Corp. B as the Bull of the Day and Whirlpool WHR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company KO, PepsiCo Inc. PEP and Keurig Dr Pepper Inc. KDP. Here is a synopsis of all five stocks. Bull of the Day: Gold mining stocks are on fire, and they're still cheap. With gold prices hovering near all-time highs and on the verge of another breakout, the sector has been gaining strong price and earnings momentum. Many of the leading miners now sport PEG ratios below 1, making them some of the most compelling value-and-growth opportunities in the market today. Among them, Barrick Mining Corp. stands out as a clear leader. Barrick Mining is one of the world's largest gold producers, with a diversified portfolio of high-quality mines across North America, Africa, and the Middle East. This scale provides a unique competitive advantage, giving Barrick operational flexibility, strong cash flows, and the ability to invest in long-term growth projects while still returning value to shareholders. From a numbers perspective, the story is even more compelling: Barrick combines strong price momentum, deeply discounted valuation, robust growth forecasts, and a top Zacks Rank, making it a standout choice in a sector that is starting to attract institutional attention. Why Gold Stock Back in Focus The macro backdrop for gold has rarely been more supportive. Central banks are buying gold at the fastest pace in decades as they diversify away from the US dollar, while geopolitical tensions, from US-China trade friction to Middle East conflicts, are keeping safe-haven demand elevated. At the same time, expectations for Federal Reserve rate cuts later this year are boosting gold's appeal by reducing the opportunity cost of holding the metal. Combined with renewed interest from institutional investors, this creates a powerful tailwind for gold prices, and by extension, for the miners that produce it. Barrick Mining Corporation Stock gets Upgrades Analysts have been steadily raising their earnings estimates, reflecting the improving outlook for both gold prices and Barrick's margins, giving it a Zacks Rank #1 (Strong Buy) rating. Over the last two months, FY2025 earnings estimates have climbed 11.4%, while FY2026 projections are up 10%. Longer term, earnings are expected to grow at an impressive 33.5% annually over the next three to five years. Barrick Shares Trading at a Discount Even after its recent rally, Barrick shares remain undervalued, thanks to the significantly higher earnings estimates. The stock trades at just 11.5x forward earnings, well below the industry average of 16x and its own 10-year median of 20.1x. When you factor in its earnings growth potential, the picture becomes even more attractive: Barrick sports a PEG ratio of just 0.34, a level that suggests the stock could be significantly undervalued relative to its growth trajectory. Should Investors Buy Barrick Stock? With gold near a breakout, earnings on the rise, and shares trading at a steep discount, Barrick offers an appealing mix of momentum, value, and growth. Add in a top Zacks Rank, and it's hard to ignore the opportunity here. For investors looking to gain exposure to gold or simply diversify into a sector that thrives in periods of geopolitical and economic uncertainty, Barrick Mining Corporation looks like one of the best ways to play the trend. Bear of the Day: It's been a rough year for Whirlpool. The stock is down 28% year-to-date, and the pressure shows little sign of easing. The company is facing a very challenging macro environment, with higher costs, intensifying competition from Asian imports, and soft consumer demand all weighing on results. With considerable downside momentum, falling earnings estimates and stagnant sales, the stock is one investors should avoid for now. Whirlpool Earnings Downgrades Drag Stock Lower The pain was underscored in the company's latest quarterly report. Q2 revenue fell 5.4% year-over-year to $3.77 billion, missing expectations, while adjusted EPS came in at $1.34, well below consensus estimates and last year's $2.39. Net income tumbled 70% to $65 million, and profit margins contracted sharply. Analysts have responded by slashing their forecasts. Earnings estimates have cratered 26.6% for this year and 25.5% for next year, pushing Whirlpool to a Zacks Rank #5 (Strong Sell). Sales are projected to decline 7.2% in 2025 and another 3.6% in 2026, reflecting persistent headwinds from tariff-driven stockpiling by competitors and weaker demand. Whirlpool Shares Still Trade at a Premium Despite these challenges, Whirlpool stock is not particularly cheap. It currently trades at 13.6x forward earnings, above the industry average of 11.2x and its own 10-year median of 9.4x. If earnings continue to fall or sentiment weakens further, that premium valuation leaves plenty of room for downside risk as the multiple compresses toward industry norms. Should Investors Avoid Whirlpool Stock? In a more favorable backdrop, Whirlpool's global brand and product portfolio might warrant a premium. But with falling earnings, weakening sales, and compressed margins, the near-term outlook appears grim. Add in negative free cash flow, and it's no wonder the stock has been punished. Until earnings estimates stabilize and management demonstrates a clear path to margin recovery, investors may be better off avoiding Whirlpool. Additional content: Will Coca-Cola's Coffee Bet Perk Up Global Beverage Sales The Coca-Cola Company's long-standing ambition to break into the global coffee segment remains a work in progress. The company's acquisition of Costa aimed to unlock multiple verticals, including store-based retail, ready-to-drink (RTD) formats and at-home coffee experiences. While the Costa brand has shown strength in-store, particularly in the U.K., its broader expansion into RTD and vending solutions has not delivered at the pace the company had hoped. Management acknowledged that the investment hypothesis has not fully materialized, with much of Costa's growth still concentrated in physical locations rather than diversified platforms. That said, Coca-Cola is not backing off on the coffee opportunity. With the category being large, fragmented and still growing globally, the company is reassessing its strategy. Management emphasized the importance of reflecting on past learnings and exploring avenues for expansion. Despite underperformance relative to expectations, Costa remains a profitable and strategically important brand. Coca-Cola has focused on affordability, store refreshment and speed of service to stabilize Costa's performance while it works on longer-term transformation initiatives. Looking ahead, KO is likely to pursue a more measured and insight-driven approach to coffee. With the beverage giant already boasting $30-billion brands and a deep innovation pipeline, Costa's transformation will hinge on its ability to tap into global consumption trends and leverage Coca-Cola's system capabilities. While the coffee bet has not perked up global sales meaningfully, it remains a strategic growth lever with untapped potential if execution aligns with evolving consumer behavior. KO's Peers Deepen Coffee Ambitions: PEP & KDP Step Up Their Game Apart from Coca-Cola, PepsiCo Inc. and Keurig Dr Pepper Inc. have been steadily brewing their presence in the global coffee arena, each leveraging unique brand partnerships and distribution strengths to tap into the high-growth category. PepsiCo's coffee presence remains limited, with no direct updates in its second-quarter 2025 remarks regarding new coffee-specific products or partnerships. While PEP continues to see strong growth across segments like zero-sugar sodas, functional hydration and prebiotic beverages like poppi, coffee is not yet a core focus. However, with an emphasis on expanding in fast-growing beverage categories and improving channel presence, PepsiCo can still explore selective coffee innovations or partnerships in the future. Keurig Dr Pepper's coffee business showed sequential improvement in second-quarter 2025, led by better pod pricing and resilient volume trends. While brewer shipments remained pressured due to tight retailer inventory, point-of-sale consumption was stable. The company is expanding into premium and cold segments, with Lavazza dessert-inspired K-Cups and La Colombe RTD coffee gaining traction. Though near-term performance faces cost and tariff headwinds, KDP remains focused on long-term growth via innovation and next-gen systems. The Zacks Rundown for Coca-Cola KO shares have risen 10.9% year to date compared with the industry's growth of 3.7%. From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.11X, significantly higher than the industry's 17.39X. The Zacks Consensus Estimate for KO's 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.3%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days. Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 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 for information about the performance numbers displayed in this press release. 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 CocaCola Company (The) (KO) : Free Stock Analysis Report Whirlpool Corporation (WHR) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Barrick Mining Corporation (B) : Free Stock Analysis Report Keurig Dr Pepper, Inc (KDP) : 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
Yahoo
3 days ago
- Business
- Yahoo
JPMorgan and Carter's have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release Chicago, IL – August 6, 2025 – Zacks Equity Research shares JPMorgan JPM as the Bull of the Day and Carter's Inc. CRI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors GM, Ford F and Tesla TSLA. Here is a synopsis of all five stocks. Bull of the Day: Headquartered in New York, NY, Zacks Rank #1 (Strong Buy) stock JPMorgan is one of the largest global banks with assets worth ~$5 trillion. With its iconic CEO Jamie Dimon at the helm, JPM has grown into one of the largest financial service firms globally, with operations in more than 60 countries. JPM has four major segments under its umbrella, including: · Consumer & Community Banking: Includes bank branches, ATMs, mobile, and website. · Commercial & Investment Bank: Offers market-making, prime brokerage, and wholesale payments services to institutions, governments, and municipal entities. · Asset & Wealth Management: Offers clients global investment management in equities, fixed income, real estate, hedge funds, private equity, and money market instruments. · Corporate Segment: Includes corporate staff units and centrally managed expenses. JPM in the Interest Rate Sweet Spot Fed Chair Jerome Powell's monetary policy stance has been a political 'hot button' topic. However, JPM is one of the companies benefiting from the current interest rate levels. With rates near multi-year highs, JPM benefits from higher Net Interest Income (NII), which is the spread between what a bank earns on loans and what it pays out in deposits. While betting markets anticipate that Powell and the Fed will cut interest rates in September, a gradual rate-cutting-cycle should be a net positive for JPM as lower rates can stimulate the market (more M&A & IPOs). In other words, the company will still enjoy fairly robust NII while other sides of the business gain steam. JPM Delivers Consistent EPS Surprises JPM CEO Jamie Dimon is the longest-sitting CEO at a major bank (he has been CEO since 2006) – and for good reason. While the macroeconomic environment has been unpredictable and challenging over the past few years, JPM has delivered positive earnings beats versus Zacks Consensus Analyst Estimates in twelve consecutive quarters. JPM has a Reasonable Valuation Though JPM shares are near new highs, they are reasonably priced compared to the general market and its peers. JPM has a price-to-earnings ratio of 15.32x, which is significantly lower than the S&P 500's 24.84x. As tech valuations get more and more stretched, JPM could be a beneficiary of a rotational pullback in high valuation names. JPM's Aggressive Growth Strategy JPMorgan is expanding its global banking footprint aggressively, with plans to open more than 500 new banking branches over the next two years. This move will solidify its position as the most extensive banking network, allowing the company to boost market share and benefit from cross-selling and network effects. Bottom Line JPMorgan's reasonable valuation, its consistent earnings, and its ability to capitalize on favorable interest rate environments set the stock up for continued outperformance. Bear of the Day: Headquartered in Atlanta, GA, Zacks Rank #5 (Strong Sell) stock Carter's Inc. is the largest seller of branded apparel and baby-related products. Notably, the company runs a portfolio of popular brands, including Carter's, OshKoshB'gosh, Just One You, Child of Mine, Simple Joys, Skip Hop, and Precious Firsts. CRI sells its products through leading department stores, national chains, and specialty retailers, both domestically and internationally. The company sells through retail partners like Amazon, Walmart, Targetand Macy's. Declining Birthrate a Long-term Headwind for Carter's The US birthrate has been declining consistently for the past seven decades. However, as economic conditions, social, and cultural winds shift, the birthrate in the United States has shrunk even further. Meanwhile, widespread access to contraception has also weighed on the birthrate. Because Carter's is focused on the baby segment, this is a troubling long-term headwind with no end in sight for CRI investors. CRI Suffers Amid Weak Consumer Trends, Suspends Guidance Carter's, like others in the industry, has been witnessing the impacts of a challenging macroeconomic environment, which is affecting its top-line performance. In addition, the current tariff environment has introduced significant uncertainty, making it difficult to predict the company's future financial performance. As a result, Carter's has decided to suspend providing guidance until there is more clarity on the internal operational direction and external market conditions. The company also cited a highly volatile retail landscape, ongoing macroeconomic pressures, and foreign currency headwinds, particularly in its international markets, as added factors contributing to the lack of forward visibility. Zacks Consensus Estimates suggest that EPS growth will continue to plunge into 2026. Driven by the continuation of these trends, Carter's first-quarter 2025 sales declined 4.8% from $661.5 million posted in the year-ago period. The decline was due to macroeconomic pressures, including inflation, elevated interest rates, and weakening consumer confidence, which reduced demand across segments. We note that the company's shares have exhibited relative weakness, losing 49.9% in the past six months compared with the industry's 43.4% decline. CRI Faces Tariff Headwinds Carter's faces significant tariff pressures, with proposed increases on imports into the U.S. adding to existing duties, which amounted to approximately $110 million in 2024. These rising tariffs, particularly on products manufactured in Asia, are impacting cost structures, especially given that less than 5% of baby apparel is produced in the Western Hemisphere. While the company has actively engaged in lobbying efforts and evaluated nearshoring alternatives in Latin America, high labor costs and limited infrastructure in the region make it challenging to offset the tariff burden effectively. Bottom Line A falling birthrate, weak consumer trends, and a negative outlook are all reasons to avoid baby retailer Carter's. Additional content: After a Hot July for GM EV Sales, Is the Stock Still a Buy? General Motors sold more than 19,000 electric vehicles (EVs) last month, up a whopping 115% year over year. The surge was largely led by strong demand for the Chevrolet Equinox EV model. The US legacy automaker is advancing well in its electrification journey, thanks to its robust portfolio, including 13 models across its Chevrolet, GMC and Cadillac brands. General Motors was the second-largest EV seller in the United States last year, just behind Tesla and managed to keep up the momentum through the first half of 2025. General Motors' EV sales in the last reported quarter more than doubled. Meanwhile, GM's closest peer, Ford, witnessed more than a 30% drop in second-quarter EV sales year over year. EV giant Tesla recorded a 13.4% decline in deliveries in the three months ending June. While General Motors' EV sales have been impressive, it will be interesting to watch if the company can sustain its sales growth amid policy shifts and U.S. President Trump's unfriendly stance on e-mobility. Let's take a closer look at the company's fundamentals to assess if General Motors is worth buying at the moment. GM Maintains EPS Beat Streak in Q2 Despite Tariffs General Motors' second-quarter 2025 earnings beat was its 12th straight quarterly beat. Strong vehicle demand and stable vehicle pricing led to record first-half 2025 revenues of $91 billion. GMNA (General Motors North America) segment revenues were also a first-half record at roughly $77 billion. The company was hit with $1.1 billion in net tariffs in the last reported quarter, although EPS of $2.53 exceeded expectations by 6%. However, GM expects net tariff costs in the third quarter to be higher than in the second quarter. It stuck to its guidance of gross tariff impact of $4-$5 billion for the full year but expects to offset roughly 30% of that through strategic initiatives like cost cuts, stable pricing and production adjustments. GM reaffirmed its adjusted EBIT forecast for the full year between $10 billion and $12.5 billion. General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote Factors Favoring General Motors In the first half of the year, GM's U.S. market share climbed to 17.3%, up 1.2 percentage points from the same period last year — a steady, positive trend. The company continues to expand its U.S. manufacturing footprint and domestic supply chain, while also investing heavily in battery, software, and autonomous vehicle innovation. Internationally, GM is making meaningful progress. In China, it's working closely with its joint venture partner to improve sales, streamline inventory and boost profitability. The strong performance of its new energy vehicles is also boosting results. Chevrolet has emerged as the number two EV brand in the United States, thanks to the success of the Blazer EV and Equinox EV. Meanwhile, Cadillac became the fifth-largest EV brand in the last reported quarter. GM is also scaling its hands-free driving system, Super Cruise. The technology is on track to generate over $200 million in revenues in 2025, with expectations to more than double by 2026. The company's investor-friendly moves also augur well. It completed a $2 billion accelerated share repurchase program in the second quarter of 2025, retiring 10 million more shares. This brings the total shares bought back under that program to 43 million. Notably, GM resumed open market buybacks in early July. GM's Performance & Valuation Over the past three months, shares of General Motors have risen 16%, outperforming the industry as well as Ford and Tesla, which gained 5% and 12%, respectively. From a valuation standpoint, General Motors appears relatively undervalued. The stock trades at a forward price-to-sales (P/S) ratio of just 0.29, well below the industry's 2.64. GM also boasts a Value Score of A. In comparison, Tesla and Ford trade at a P/S ratio of 9.7 and 0.27, respectively. Why Buying GM Stock Isn't a Good Idea Now While GM continues to make strides in EVs and innovation, near-term headwinds are worth noting. Fleet pricing has come under pressure due to rising competition, and this trend is expected to persist in the second half of the year. GM also flagged higher warranty costs, particularly for the L87 powertrain and early EV software issues, which will be a drag in 2025. Capital spending remains high and can weigh on free cash flow. While the company expects 2025 capex to be in the range of $10–$11 billion, the figure is expected to rise slightly to $10–$12 billion in 2026 and 2027 as GM ramps up production and future model launches. The Zacks Consensus Estimate for GM's 2025 EPS and sales implies a year-over-year decline of 11% and 4.3%, respectively. Adjusted EBIT for the first half of the year came in at $6.5 billion. Based on full-year guidance, second-half earnings are expected to be about $1.75 billion lower at the midpoint of the outlook. This is essentially due to three reasons. First, tariffs will remain a burden. Second, the company expects lower wholesale volumes in North America. Lastly, increased spending to prepare for the rollout of next-gen full-size trucks and the expansion of U.S. EV capacity will also weigh on the results. Additionally, EV profitability may take a hit from softening demand because of the phase-out of government incentives like the federal tax credit. Given these headwinds, this isn't the best time for new investors to jump in. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Why Haven't You Looked at Zacks' Top Stocks? 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 access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 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 for information about the performance numbers displayed in this press release. 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 JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Ford Motor Company (F) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Carter's, Inc. (CRI) : 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
01-08-2025
- Business
- Globe and Mail
Celestica and Westlake have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release Chicago, IL – August 1, 2025 – Zacks Equity Research shares Celestica CLS as the Bull of the Day and Westlake Corp. WLK as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company's KO, Monster Beverage Corp. MNST and PepsiCo Inc. PEP. Here is a synopsis of all five stocks: Bull of the Day: Celestica, a Zacks Rank #2 (Buy), is one of the largest electronics manufacturing companies in the world. This company provides supply chain solutions in North America, Europe, as well as Asia. The stock is displaying relative strength, breaking out to the upside amid a bullish move that pushed shares to new all-time highs. The price movement is a sign of strength as we head deeper into the second half of the year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock. Celestica is part of the Zacks Electronics – Manufacturing Services industry group, which currently ranks in the top 4% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has over the prior 3 months. Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success. Company Description Celestica provides a range of services such as new product design and development, engineering and component sourcing, complex mechanical assembly, systems integration, and logistics. The company has also been involved in the AI movement in terms of delivering platform solutions, which includes development of infrastructure platforms along with hardware and software design services. Celestica offers their products and services to hyperscalers, cloud-based providers, and original equipment manufacturers. The company serves a variety of industries such as aerospace and defense, industrial, capital equipment, and communication markets. Earnings Trends and Future Estimates A leading electronics manufacturer, Celestica has built up an impressive reporting history and hasn't missed the earnings mark in many years. The company has delivered a trailing four-quarter average earnings beat of 7.7%. Earlier in the week, Celestica reported second-quarter earnings of $1.39 per share, a 12.1% surprise over the $1.24/share consensus estimate. Revenues of $2.89 billion also exceeded projections by 8.3%. Solid growth in the hardware platform solutions portfolio, backed by hyperscaler demand for networking products, buoyed the top line. Analysts are bullish on the stock and have been raising earnings estimates lately. The full-year consensus EPS estimate has been revised upward in the past 60 days by 0.59% to $5.08 per share. If the company is able to achieve this, it would translate to a 30.9% growth rate versus the prior year. Let's Get Technical This market leader has seen its stock advance nearly 200% off the April lows. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, CLS stock is poised to continue its outperformance. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Celestica has recently witnessed positive revisions. As long as this trend remains intact (and CLS continues to deliver earnings beats), the stock will likely continue its bullish run. Bottom Line A growing proliferation of AI-based applications and generative AI tools across industries presents robust growth opportunities for Celestica. The company has offered a bullish outlook for 2025 and increased previous guidance, another sign that the bullish run can be sustained. Backed by a leading industry group and history of earnings beats, it's not difficult to see why Celestica stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix. Recent positive earnings estimate revisions should also serve to create a 'floor' in terms of any sudden or unexpected downside moves. If you haven't already done so, be sure to put CLS on your shortlist. Bear of the Day: Westlake Corp. manufactures and markets performance and essential materials as well as housing and infrastructure products globally. The company produces and supplies a variety of products such as ethylene, polyethylene, PVC, vinyl intermediates, and fence and decking components. Founded in 1986 and headquartered in Houston, Texas, Westlake also provides consumer and commercial products including landscape edging, home and office matting, and marine dock edging. It offers its products to chemical processors, plastics fabricators, construction contractors, and supply warehouses for use in various consumer and industrial markets. The company faces challenges from elevated interest rates and lingering inflation. High rates and affordability concerns have dampened housing starts, leading to reduced demand and lower business confidence. Sluggish construction activity in North America remains a concern over the short-term. As a result, both the pipe-and-fitting and siding-and-trim businesses have been negatively impacted. The Zacks Rundown A Zacks Rank #5 (Strong Sell) stock, Westlake is a component of the Zacks Chemical – Plastic industry group, which currently ranks in the bottom 4% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has so far this year. Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they're part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult. WLK shares have been underperforming over the past year. The stock is hitting a series of lower lows and represents a compelling short opportunity as we head further into 2025. Recent Earnings Misses & Deteriorating Outlook Westlake Corp. has fallen short of earnings estimates in three of the past four quarters. Back in May, the company reported a first-quarter loss of -$0.31 per share, missing the Zacks Consensus Estimate by a whopping -144.3%. Westlake has posted a trailing four-quarter average earnings miss of -61.4%. Consistently falling short of earnings estimates is a recipe for underperformance, and WLK is no exception. The company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the second quarter, analysts have slashed estimates by -88.89% in the past 60 days. The Q2 Zacks Consensus EPS Estimate is now $0.06 per share, reflecting negative growth of -97.5% relative to the year-ago period. Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see. Technical Outlook WLK stock has experienced what is known as a "death cross," whereby the stock's 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 30% this year alone. Final Thoughts A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that WLK is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns. A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend. Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of WLK until the situation shows major signs of improvement. Additional content: Is Coca-Cola's Diversification into Energy Drinks Gaining Traction? The Coca-Cola Company 's push into the energy drink category is starting to yield results, although it is a gradual build. While the second-quarter 2025 earnings call did not shine the spotlight on energy drinks directly, the company's emphasis on its diversified portfolio, including BODYARMOR and Powerade, signals strategic momentum. Both brands registered volume growth in the second quarter, contributing to Coca-Cola's broader objective of gaining value share for the 17th consecutive quarter. This reflects consumer receptiveness to Coca-Cola's expanding non-soda offerings. The company's innovation agenda also plays a key role. The latest launches, such as Sprite+Tea, though not energy drinks, highlight Coca-Cola's agility in crafting hybrid beverages that tap into evolving tastes for functionality and flavor. This strategy complements its efforts in premium stills and sports hydration — segments that overlap with consumer needs — in the energy category. The company's all-weather approach and accelerated marketing execution have further enhanced visibility and consumer traction for its broader beverage lineup. While Coca-Cola has not yet disrupted the energy drink market on the scale of leaders like Monster Beverage Corp. or Red Bull, its existing brand power, distribution strength and innovation pipeline suggest it is in for the long game. If current execution trends continue, Coca-Cola's diversification into energy beverages may shift from incremental gain to a more commanding presence in the next few quarters. The Rivalry in Energy Drinks Strengthens: Can PEP & MNST Keep Up? As Coca-Cola steadily expands its footprint in the energy drink market, all eyes are on PepsiCo Inc. and Monster Beverage to see if they can keep pace in this increasingly competitive and fast-evolving segment. PepsiCo is intensifying its energy drink strategy with bold moves like acquiring Poppi, a fast-growing prebiotic soda brand, and expanding Sting's global visibility through a multi-year Formula 1 partnership. Gatorade remains central to its sports hydration portfolio, while Propel drives strong growth in functional drinks. With continued investments in zero-sugar, performance beverages and away-from-home channels, PepsiCo is positioning itself for sustained growth in the fast-evolving energy and wellness drink segment. Monster Beverage continues to dominate the energy drink space with a diverse portfolio that includes Monster Energy, Reign Total Body Fuel, Reign Storm, Bang Energy, Predator and Fury. In first-quarter 2025, the company expanded globally with product launches like Monster Ultra Blue Hawaiian and continues to lead in market share across several countries. Monster is also ramping up innovation and expanding affordable brands internationally, positioning itself for global growth and consumer reach. The Zacks Rundown for Coca-Cola KO shares have risen 10.4% year to date compared with the industry 's growth of 5.3%. From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.04X, significantly higher than the industry's 17.64X. The Zacks Consensus Estimate for KO's 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.3%, respectively. Earnings estimates for 2025 have been unchanged in the past 30 days. Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 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. Click to get this free report Westlake Corp. (WLK): Free Stock Analysis Report CocaCola Company (The) (KO): Free Stock Analysis Report PepsiCo, Inc. (PEP): Free Stock Analysis Report Celestica, Inc. (CLS): Free Stock Analysis Report Monster Beverage Corporation (MNST): Free Stock Analysis Report
Globe and Mail
25-07-2025
- Business
- Globe and Mail
Zacks Industry Outlook Highlights Berkshire Hathaway, Progressive, Chubb, Travelers Companies and Allstate
For Immediate Release Chicago, IL – July 25, 2025 – Today, Zacks Equity Research discusses Berkshire Hathaway ( BRK.B ), The Progressive Corp. PGR, Chubb Ltd. CB, The Travelers Companies TRV and The Allstate Corp. ALL. Industry: Property & Casualty Insurance Link: The Zacks Property and Casualty Insurance (P&C) industry is likely to benefit from better pricing, prudent underwriting and exposure growth. Industry players like Berkshire Hathaway, The Progressive Corp., Chubb Ltd., The Travelers Companies and The Allstate Corp. are poised to grow despite a rise in catastrophic events. Given an active catastrophe environment, the policy renewal rate should accelerate. Also, the increasing adoption of technology and the emergence of insurtech will help the industry players function smoothly. However, insurers are witnessing a decline in pricing after several years of rate rise. Also, last year witnessed three interest rate cuts, and there is a possibility of more this year. Though insurers are direct beneficiaries of an improved rate environment and rate cuts are headwinds, investment income is expected to remain strong, given insurers' diverse investment portfolio as well as continued growth of private market investments. The imposition of tariffs by President Trump, as well as higher inflation, will have an impact on pricing. Nonetheless, an improvement in surplus and accelerated economic activities set the stage for a better M&A environment. Per Fitch Ratings, personal auto is expected to stay strong, and coupled with better investment results and lower claims, should fuel insurers' performance in 2025. About the Industry The Zacks Property and Casualty Insurance industry comprises companies that provide commercial and personal property insurance, and casualty insurance products and services. Such insurance helps to safeguard property in case of any natural or man-made disasters. Liability coverages are also provided by some industry players. The insurance coverage offered also includes automobiles, professional risk, marine, excess casualty, aviation, personal accident, commercial multi-peril, and professional indemnity and surety. Premiums are the primary source of revenues for these insurers. Better pricing and increased exposure drive premiums. These companies invest a portion of premiums to meet their commitments to policyholders. However, three rate cuts last year and a few more expected this year raise concerns. 4 Trends Shaping the Future of the Property and Casualty Insurance Industry Proper pricing to help navigate claims: Catastrophes remain a major concern for insurers due to the high losses incurred, leading to rate increases to ensure claims payouts. Per Global Insurance Market Index by Marsh, global commercial insurance rates fell 4% in the second quarter. Fitch Ratings expects strong performance in personal auto insurance, driven by improved investment returns and reduced claims. S&P Global projects that underwriting profits in this segment will stabilize as insurers aim to grow policy volumes while keeping rates steady or slightly reduced. Deloitte estimates gross premiums to grow sixfold to $722 billion by 2030, with China and North America accounting for over two-thirds of the total. Swiss Re predicts premium growth of 5% in 2025 and 4% in 2026. Catastrophe loss induces volatility in underwriting profits: The property and casualty insurance industry is susceptible to catastrophe events, which drag down underwriting profits. Per a Colorado State University (CSU) report, 2025 will have an above-normal hurricane season. The latest report published by CSU states that the 2025 hurricane season may have 23 named storms, including eight hurricanes and three major hurricanes. The first half of 2025 already incurred global insured losses from natural disasters of least $100 billion per a Risk and Insurance report. Swiss Re estimates the combined ratio to improve from 2023 to 98.5% in 2025 and deteriorate by another 50 basis points to 99% in 2026. Underwriting profitability is expected to be under pressure, primarily due to soft performance in personal lines, which are expected to witness higher catastrophe losses per Insurance Information Institute and Milliman. Exposure growth, better pricing, prudent underwriting and favorable reserve development will help withstand the blow. Also, frequent occurrences of natural disasters should accelerate the policy renewal rate. Merger and acquisitions: Consolidation in the property and casualty industry is likely to continue as players look to diversify their operations into new business lines and geography. Buying businesses along the same lines will also continue as players look to gain market share and grow in their niche areas. With a sturdy capital level, the industry is witnessing a number of mergers, acquisitions and consolidations. Increased adoption of technology: The industry is witnessing increased use of technology like blockchain, artificial intelligence, advanced analytics, telematics, cloud computing and robotic process automation that expedite business operations and save costs. The industry has also witnessed the emergence of insurtechs or technology-led insurers. The focus of insurtech is mainly on the property and casualty insurance industry. Insurers continue to invest heavily in technology, generative AI in particular, as it is expected to improve basis points, scale and efficiencies. However, the use of technology poses cyber threats. Zacks Industry Rank Indicates Bright Prospects The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bright prospects in the near term. The Zacks Property and Casualty Insurance industry, which is housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #92, which places it in the top 38% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms 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 is a result of a positive earnings outlook for the constituent companies in aggregates. Earnings estimates for 2025 have increased 2.9% year over year. Before we present a few property and casualty stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture. Industry Underperforms Sector and the S&P 500 The Property and Casualty Insurance industry has underperformed its sector and the Zacks S&P 500 composite year to date. The stocks in this industry have collectively risen 4.7% compared with the sector's increase of 9.8% and the Zacks S&P 500 composite's increase of 6.9% in the said time frame. Current Valuation On the basis of the trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 1.53X compared with the S&P 500's 8.5X and the sector's 4.27X. Over the past five years, the industry has traded as high as 1.71X, as low as 1.16X and at the median of 1.4X. 5 Property and Casualty Insurance Stocks to Focus On Here, we are discussing one Zacks Rank #2 (Buy) stock and four Zacks Rank #3 (Hold) stocks from the P&C Insurance industry. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Progressive Corp.: Based in Mayfield Village, OH, Progressive is one of the major auto insurers in the country. It is the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. A solid market presence, a convincing portfolio of products and services, and underwriting and operational expertise should help this insurer deliver steady profitability. It carries a Zacks Rank #2. The Zacks Consensus Estimate for PGR's 2025 earnings suggests 23.4% year-over-year growth. The consensus estimate for 2025 and 2026 earnings has moved 3% and 1.3% north, respectively, in the past seven days. It delivered a four-quarter average earnings surprise of 8.23%. It has a VGM Score of A. The expected long-term earnings growth rate is pegged at 9.5%, better than the industry average of 6.7%. Berkshire Hathaway: Omaha, NE-based Berkshire Hathaway owns more than 90 subsidiaries in insurance, railroads, utilities, manufacturing services, retail and homebuilding. BRK.B is one of the largest property and casualty insurance companies measured by premium volume. BRK.B, carrying a Zacks Rank #3, should continue to benefit from its growing Insurance business as well as Manufacturing, Service and Retailing, and Finance and Financial Products segments. Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. With Warren Buffett at its helm, Berkshire continues to create tremendous value for shareholders. The Zacks Consensus Estimate for 2026 bottom line suggests a year-over-year increase of 5%. The expected long-term earnings growth rate is 7%. It delivered a four-quarter average earnings surprise of 13.4%. Chubb Ltd.: Headquartered in Zurich, Switzerland, Chubb is one of the world's largest providers of property and casualty insurance and reinsurance and the largest publicly traded P&C insurer based on market capitalization. Chubb is poised for long-term growth as it capitalizes on the potential of middle-market businesses (both domestic and international) as well as enhances traditional core packages and specialty products. Investments in various strategic initiatives bode well for growth. It focuses on cyber insurance, which has immense room for growth. This Zacks Rank #3 insurer has increased dividends for 32 straight years. The Zacks Consensus Estimate for CB's 2026 earnings suggests 18.9% year-over-year growth. The expected long-term earnings growth rate is 3.7%. The consensus estimate for 2025 has moved 0.2% north in the past seven days. It delivered a four-quarter average earnings surprise of 10.85%. The expected long-term earnings growth rate is pegged at 4.2%. Travelers Companies: Based in New York, NY, Travelers Companies is one of the leading writers of auto and homeowners' insurance, plus commercial U.S. property-casualty insurance. High levels of retention, improved pricing, increased new business and a positive renewal premium change, banking on the strength of a compelling product portfolio of coverages across nine lines of business, position it well for growth. Travelers' commercial businesses should continue to perform well on the back of stability in the markets where it operates, as well as the execution of its strategies. It carries a Zacks Rank #3. The Zacks Consensus Estimate for TRV's 2026 earnings suggests 20.5% year-over-year growth. The consensus estimate for 2025 and 2026 has moved up 10.2% and 1.7%, respectively, in the past seven days. It delivered a four-quarter average earnings surprise of 89.97%. It has a VGM Score of B. The expected long-term earnings growth rate is pegged at 4.5%. Allstate: Headquartered in Northbrook, IL, Allstate is the third-largest P&C insurer and the largest publicly held personal lines carrier in the United States. Its premiums are poised to improve courtesy of rate increases in auto and home insurance businesses, as well as an enhanced distribution strategy. The company keeps expanding its Protection Services business with strategic acquisitions, which position it for long-term growth. Divestments and cost-cutting measures are expected to enhance the margins of this Zacks Rank #3 insurer. The Zacks Consensus Estimate for ALL's 2025 and 2026 earnings suggests 0.1% and 22% year-over-year growth, respectively. The consensus estimate has moved up 1 cent in the past seven days. The company delivered a four-quarter average earnings surprise of 134.91%. The expected long-term earnings growth rate is pegged at 10.5%. It has a VGM Score of A. Why Haven't You Looked at Zacks' Top Stocks? 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 access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This 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. #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 The Travelers Companies, Inc. (TRV): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report The Allstate Corporation (ALL): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report
Globe and Mail
24-07-2025
- Business
- Globe and Mail
CyberArk and Centene have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release Chicago, IL – July 24, 2025 – Zacks Equity Research shares CyberArk CYBR as the Bull of the Day and Centene Corp. CNC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Palantir Technologies PLTR, Lockheed Martin LMT and RTX Corp. RTX. Here is a synopsis of all five stocks. Bull of the Day: CyberArk is a $19 billion provider of cybersecurity solutions to more than 5,400 global businesses, including over half of the Fortune 500 and over 35% of Global 2000 companies. CYBR specializes in Privileged Access Management (PAM), which allows businesses to secure, manage, and monitor identities (human, machine, and now agentic) that have elevated or "privileged" access to critical systems and sensitive data. Since 2022 when I became a CYBR investor, my rationale has centered on two themes: (1) threat actors were becoming more sophisticated and well-funded to perform larger attacks on enterprises and (2) AI and other automation tools would multiply and accelerate their malicious efforts exponentially. So I'm excited to see CYBR finding more ways to use AI to their advantage in a never-ending war of threats. Here's what their 2025 report Identity Security Landscape had to say about the challenge... "Organizations now report that 72% of employees regularly use AI tools on the job -- yet 68% of respondents still lack identity security controls for these technologies. Machine identities now outnumber human identities by more than 80 to 1." Securing AI Agents In Q1 of 2025, CyberArk introduced its Secure AI Agents Solution to help organizations manage the privileged access of AI agents and secure their interactions across environments. The solution combined CyberArk's existing platform capabilities with AI-specific discovery, privilege controls, lifecycle management and governance. With the explosion of "agentic" AI this year -- where software programs with specific goals can act autonomously on your behalf to execute tasks -- the risks have soared in the identity security realms. AI agents can act like humans in their autonomy and like machines in their ability to scale, creating a unique security risk. They can communicate with other agents, access sensitive systems and even modify their behavior to complete complex tasks, making them a fast-growing security risk as organizations scale their use of AI. Millions of autonomous, unpredictable AI agents represent a new, rapidly expanding identity security attack surface. CyberArk's solutions address this challenge by applying identity-first security principles, where it treats each AI agent like any other privileged, autonomous identity. The solution provides organizations with visibility into all AI agents, including known or shadow agents. It also enforces privilege control for secure access management and threat detection and response. AWS Marketplace AI Agents and Tools Again from the CYBR Identity Security Landscape report... "In the race to adopt AI, organizations are also inadvertently creating a surge of unmanaged and unsecured machine identities that overburdened teams don't have the visibility to manage. The privileged access of AI agents represents an entirely new threat vector that existing security models aren't built to handle." On July 16, CyberArk expanded access to these capabilities by making Secure Cloud Access MCP Server and Agent Guard available through Amazon Web Service ("AWS") Marketplace. Through these offerings, CyberArk aims to simplify the adoption and enforcement of Zero Standing Privileges across AI workflows, further strengthening CyberArk's platform reach. Customers can now use AWS Marketplace to easily discover, buy, and deploy AI agent solutions using their AWS accounts, accelerating agent and agentic workflow development. The Growth Outlook Brightens While estimates did not rise in the past week since this announcement, I expect them to and we'll learn more at the company's Q2 earnings report on August 7. On July 14, Barclays raised their price target on CYBR shares to $440. CYBR is projected to grow revenues this year by 32% to cross $1.3 billion. And profits are hopping too with an expected 26.4% advance to EPS of $3.83. A key driver of this growth is CyberArk's ability to carry out cross-selling synergies among its existing customer base. Existing customers are adopting more solutions from CyberArk's platform, which is helping grow subscription revenues. As more enterprises adopt AI agents, CyberArk's early move into this space could create new cross-sell opportunities, making its platform even more critical for customers seeking identity security consolidation. For instance, A Fortune 100 financial services firm, which is a long-time CyberArk customer on the human identity side, expanded into certificate lifecycle management and Public Key Infrastructure (PKI) offerings with a competitive multi-six-figure Annual Contract Value (ACV) deal. I'm looking forward to the August 7 company report to learn more. Disclosure: I own shares of CYBR for the Zacks TAZR Trader portfolio. Bear of the Day: Centene Corp., a giant of managed care expected to cross $175 billion in revenues this year, unexpectedly pulled its earnings guidance for 2025 on July 2. This change came after an unexpected shift in the dynamics of the health Insurance Marketplace, which could impact earnings more significantly than what was initially forecasted. The decision followed industry risk adjustment data from the independent actuarial firm Wakely, which analyzed 22 out of Centene's 29 Marketplace states, representing approximately 72% of its Marketplace membership. According to the company, these data showed higher-than-expected overall market morbidity and a slower pace of market growth. CNC is anticipating a shortfall of about $1.8 billion in net risk adjustment revenues, which would mean a $2.75 impact on adjusted diluted EPS for 2025. Although it does not have data from the other seven states, management anticipates a further decline in risk-adjusted revenues due to similar morbidity trends. Since the revelation, Wall Street analysts slashed their EPS projection for this year, cutting the Zacks profit consensus in half from $7.29 to $3.55 and discounting more of the unknowns. The Good, the Bad, and the Ugly Despite headwinds, CNC shared that the final 2024 risk-adjusted results from the Centers for Medicare and Medicaid Services aligned with their expectations, and its Medicare Advantage and Medicare PDP segments are performing better than its expectations in the second quarter of 2025. However, Medicaid is facing challenges due to rising costs in behavioral health, home care and expensive medications, particularly in states like New York and Florida. As we look toward 2026, Centene is taking proactive steps to adjust its rates, aiming to account for a higher morbidity baseline. This adjustment is seen as a necessary move to help balance out potential losses. The company plans to make these pricing changes in the states where it conducts most of its marketplace business. The early refiling of 2026 rates by CNC suggests a more defensive pricing approach in the future. Typical of many Wall Street investment banks, Wells Fargo downgraded CNC shares to Equal-Weight and cut their price target from $72 to $30. A close look at second-quarter earnings and data analysis is required to move forward. CNC's second-quarter 2025 results are slated to be released on Friday July 25. Additional content: Palantir's Current Valuation Stretch or Fully Justified? Palantir Technologies has emerged as one of the most talked-about names in the S&P 500, and not just for what it does, but for what investors are willing to pay for it. With a market capitalization of $358 billion, it now surpasses giants like Coca-Cola and Bank of America. Yet, when viewed through a valuation lens, Palantir stands alone in its league. Its trailing 12-month price-to-earnings ratio exceeds 640X, and its forward 12-month multiple hovers above 225X. Even more striking is its enterprise value relative to forward 12-month revenue of more than 78X, a level rarely seen, even during the most exuberant periods in market history. By that metric, Palantir looks far more expensive than nearly every other established U.S. stock over the past two decades. Such elevated valuations raise the bar for future performance. For a company trading at these levels, expectations around revenue acceleration, margin expansion, and long-term scalability must not only be met; they must be exceeded. Even minor disappointments can trigger sharp corrections as multiples revert toward historical norms. Companies in the past that reached these kinds of revenue multiples — often 30x or higher — eventually faced tough questions about sustainability. Investor optimism alone is rarely enough to sustain prices when fundamentals don't keep up. The pattern is hard to ignore. When companies reach 30x sales or more, they often enter what is viewed as the 'bubble zone,' a place where expectations are sky-high and hard to maintain. Revenue growth typically slows, forecasts get downgraded and valuations eventually compress. In the short term, momentum can mask this risk, but over time, gravity tends to take hold. In conclusion, Palantir's valuation not only defies market norms but also places it well beyond even the exuberance seen in past bubbles. Unless its performance can defy history, the risk of multiple compression looms large. Investors should tread carefully. Stable Defense Alternatives to Palantir As PLTR's valuation moves higher, Lockheed Martin and RTX Corp. offer more grounded defense exposure. Lockheed Martin, with its massive defense contracts, provides steady cash flow and less volatility than PLTR. Its trailing 12-month price-to-earnings ratio is below 18X, and its forward 12-month multiple is just above 14X. Lockheed Martin continues to benefit from global rearmament while trading at modest earnings multiples. Similarly, RTX shines through missile systems. RTX's defense backlog, like LMT's, underscores its stability. Its trailing 12-month price-to-earnings ratio is below 44X, and its forward 12-month multiple is just above 23X. PLTR's Price Performance, Estimates The stock has surged a whopping 97% year to date, significantly outperforming the industry 's 19% rally. The Zacks Consensus Estimate for PLTR's earnings has remained unchanged over the past 30 days. PLTR stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Why Haven't You Looked at Zacks' Top Stocks? 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 access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 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 for information about the performance numbers displayed in this press release. 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report This article originally published on Zacks Investment Research (
