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Yahoo
11 hours ago
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Zacks Industry Outlook Highlights Comcast, Charter Communications and Naspers
Chicago, IL – June 16, 2025 – Today, Zacks Equity Research discusses Comcast CMCSA, Charter Communications CHT and Naspers NPSNY. Link: The Zacks Cable Television industry players are focusing on bundled offerings and on-demand programming to counter challenges from cord-cutting as consumers shift away from traditional pay-TV options, including cable TV and satellite TV, to over-the-top streaming services with innovative content. The industry is evolving by leveraging its broadband infrastructure to meet changing consumer preferences and balancing traditional cable services with new streaming options to maintain relevance in the rapidly changing media landscape. Cable companies are benefiting from consistent demand for high-speed broadband and WiFi devices, driven by hybrid work and learning environments. Increased media consumption has been a key catalyst for industry leaders like Comcast, Charter Communications and Naspers. The Zacks Cable Television industry comprises companies offering integrated data, video and voice services, including pay-TV and Internet-based streaming content. These firms provide equipment like satellite dishes, digital set-top receivers and remote controls. Cable companies typically build or lease network backbones from telecom companies and purchase licenses to distribute programmers' content over these networks. They license content from programmers and sell advertising spots. The industry is capital-intensive, requiring significant investment in infrastructure, and is heavily regulated by the Federal Communications Commission. Industry players must balance the need for ongoing investment in technology and infrastructure with evolving consumer preferences and regulatory compliance to maintain competitiveness in the media landscape. : Cable television's ability to generate ad revenues outside traditional TV platforms, such as websites and any digitally-consumed platform, provides increased scope for target-based advertising. Nevertheless, consumers' unfavorable disposition, particularly toward advertising, has hit industry participants hard. Further, the growing consumer preference for digital and subscription services instead of linear pay-TV and rental or outright purchase has compelled industry players to alter their business models. Cable television companies are now offering a variety of alternative packages, including skinny bundles, which are delivered at lower costs than traditional offerings. These companies are also innovating in terms of original content to be competitive against streaming service providers. : The growing demand for high-speed Internet, including broadband, has aided cable television industry participants like Comcast and Charter. Improving Internet speed is fueling the demand for high-quality video and the trend of binge viewing. Further, a strengthening broadband ecosystem in international markets, along with the proliferation of smart TVs, is anticipated to drive growth. Also, the work-from-home trend and online learning have boosted Internet usage, thus supporting industry participants. : The cable television industry is witnessing the rapid evolution of distribution platforms as well as embracing new players and advanced technologies. Declining profits of residential video services due to rising programming costs and retransmission fees have made survival difficult for traditional companies. Additionally, the heightened need for on-demand content has led to the mushrooming of streaming service providers, making it particularly tricky for traditional cable television companies to maintain a viewer base. Furthermore, the traditional pay-TV industry is maturing with widespread consolidation. Moreover, residential voice service revenues are declining due to the rising shift to wireless voice services. : Persistent inflation and higher interest rates are having a detrimental effect on ad spending. Besides, the challenge with TV ads is that marketers have difficulty getting actionable metrics and insights such as attribution data. At this time, marketers must look for outside-the-box solutions to extract conversion data from offline media. TV has taken a secondary role in most marketing strategies due to the growing influence of digital marketing. Many marketers are increasing ad spending on digital mediums due to their unmatched ability to deliver personalized messages that are easy to measure. Cable TV players are set to face competition for ad dollars from streaming service providers like Netflix and Disney, which are raising prices and introducing cheaper ad-supported packages now that their subscriber growth has slowed. The Zacks Cable Television industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #199, which places it in the bottom 19% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group's earnings growth potential. Since June 30, 2024, the industry's earnings estimate for 2025 has moved south by 4%. Before we present a few 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. The Zacks Cable Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year. The industry has returned 8.9% over this period compared with the broader sector's growth of 19.8%. The S&P 500 has risen 11.2% in the said time frame. On the basis of the trailing 12-month EV/EBITDA, a commonly used multiple for valuing cable companies, we see that the industry is currently trading at 6.76X compared with the S&P 500's 17.07X and the sector's 10.84X. Over the past five years, the industry has traded as high as 16.19X, as low as 6.26X and at the median of 8X. Comcast: The company demonstrates financial resilience with 2% EBITDA growth and robust $5.4 billion free cash flow generation, while wireless momentum accelerated to the strongest quarter in two years. However, broadband operations face headwinds with 199,000 customer losses amid intensifying competition from fiber and fixed wireless providers. Management acknowledges execution challenges in their core connectivity business but has initiated strategic responses, including simplified pricing structures, five-year price guarantees, and aggressive wireless expansion targeting their substantial 87% untapped broadband customer base. The upcoming Epic Universe theme park opening and improving Peacock economics provide growth catalysts, though near-term EBITDA pressure is expected from necessary investments. Comcast's diversified portfolio and strong balance sheet offer defensive qualities while management works to regain competitive momentum in its largest business segment. Shares of this Zacks Rank #3 (Hold) company have lost 6% year to date. The Zacks Consensus Estimate for Comcast's 2025 earnings has moved north by 1.2% to $4.35 per share in 60 days. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Charter Communications: This Zacks Rank #3 company presents a compelling watch story for 2025 following its transformative $34.5 billion acquisition of Cox Communications announced in May. The merger will create an enhanced industry leader serving more than 69 million passings while generating anticipated annual cost synergies of $500 million within three years. Q1 2025 results demonstrate operational resilience with 4.8% adjusted EBITDA growth and robust free cash flow expansion to $1.6 billion, despite modest Internet customer declines offset by strong mobile line additions. The company's ongoing network evolution initiatives and rural expansion efforts position it strategically for long-term growth. However, investors should monitor integration execution risks, regulatory approval processes, and intensifying competition in broadband that could impact customer acquisition and pricing power throughout the combination period. Charter's shares have gained 15.8% year to date. The consensus mark for 2025 earnings has moved north by 5% in the past 60 days to $39.54 per share. Naspers: This Zacks Rank #3 company is worth a watch for 2025 following a significant operational transformation and delivering impressive results with ecommerce revenue growing 24% to $3.3 billion and adjusted EBIT increasing fivefold to $169 million in the first half. The company's AI-first strategy is showing tangible benefits, including 20% improvements in customer acquisition costs and enhanced fraud detection across its ecosystem. With $10 billion available for disciplined investment and strong free cash flow generation of $911 million, Naspers is well-positioned for strategic opportunities. The focus on value crystallization through Indian IPOs, following Swiggy's successful $11.3 billion listing, offers potential near-term catalysts. However, investors should monitor the execution of the $6.2 billion revenue and $400 million profitability guidance amid evolving market conditions. Shares of the company have surged 40.3% year to date. The consensus mark for fiscal 2025 earnings has remained steady at $4.88 per share in the past 30 days. 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 >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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. 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 Comcast Corporation (CMCSA) : Free Stock Analysis Report Chunghwa Telecom Co., Ltd. (CHT) : Free Stock Analysis Report Naspers Ltd. (NPSNY) : 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
4 days ago
- Business
- Globe and Mail
Zacks Industry Outlook Highlights Howard Hughes and Landsea Homes
For Immediate Release Chicago, IL – June 13, 2025 – Today, Zacks Equity Research discusses Howard Hughes Holdings Inc. HHH and Landsea Homes Corp. LSEA. Industry: Real Estate Development The constituents of the Zacks Real Estate – Development industry are expected to encounter difficulties stemming from geopolitical instability and macroeconomic uncertainty. These factors are likely to drive up material expenses and uphold high real estate prices. Sales activity is expected to stay subdued in the near future until there is a recovery in macroeconomic conditions. However, healthy demand across several real estate property categories, along with a slowdown in the pace of new deliveries, is anticipated to lend support to the industry, thereby placing companies like Howard Hughes Holdings Inc. and Landsea Homes Corp. in a strong position for growth. About the Industry The Zacks Real Estate – Development industry comprises companies that are mainly engaged in owning, developing and managing a variety of real estate properties, including commercial, residential and mixed-use parcels. While some developers undertake construction on their land holdings to eventually sell the properties to homebuilders, retaining the same for conducting operations is also a common practice. Some industry participants actively undertake strategic activities, such as infrastructure improvement, along with land planning and development, to boost economic development, attract quality job creators and diversify the regions in which the firms operate. These firms provide real estate leasing, stewardship, underwriting, planning and entitlement services. Real estate development companies are chiefly classified as financial ones, not construction firms. What's Shaping the Future of the Real Estate Development Industry? Macroeconomic Uncertainty Woes Linger: The ongoing heightened uncertainty surrounding trade policy and government spending is expected to weigh on the industry's growth in the near term. The tariff polices with other countries are expected to raise the cost of certain imported goods by the second half of this year. This makes investors skeptical about the economy's outlook. Although the Federal Reserve has reduced interest rates in the second half of 2024, it is expected to make fewer cuts this year due to an anticipated high inflation amid tariff woes and potential policy changes. Amid such an environment, clients are likely to adopt a cautious approach. As a result, investors' desire for greater price discovery will cause a delay in the closing timeline for transactions. Geopolitical Instability to Affect the Industry: Geopolitical turmoil is likely to have a significant impact on the industry's performance. Conflicts and wars happening in a number of countries have affected the global economic environment. These situations have escalated supply-chain disruption and increased inflation. Several capital sources are tightening their underwriting practices, reducing credit availability. In the upcoming period, sales activity is likely to stay subdued until macroeconomic conditions improve. Demand Revival for Certain Asset Classes and Constrained Supply Helps Industry Fundamentals: Demand for certain real estate categories, such as retail, industrial, logistics, and office is witnessing healthy growth. The post-pandemic resurgence in consumers' preference for in-person shopping is propelling retail real estate demand in high-traffic corridors as retailers eye expansion to satisfy this demand. Meanwhile, the e-commerce boom and supply-chain strategy transformations are driving growth in the industrial and logistics real estate space. Moreover, the office REIT companies are noticing an increase in the number of tenants returning to offices or announcing plans to do so. This is likely to support office real estate market fundamentals. However, in addition to raising the price of raw materials, an elevated interest rate environment has also slowed down the pace of new construction deliveries. Particularly, the residential market is experiencing a significant shortage of new homes as a result of more than a decade of under-building in comparison to population growth. The retail real estate market is also going through supply shortages, which is helping the industry fundamentals. Hence, the rebound in demand for certain real estate categories and supply shortage are likely to play a role in maintaining favorable industry fundamentals. Zacks Industry Rank Indicates Bleak Prospects The Zacks Real Estate Development industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #179, which places it in the bottom 27% of 245 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's positioning in the bottom 50% of the Zacks-ranked industries is a result of the southbound earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group's earnings growth potential. For 2025, the industry's earnings estimates have moved 39.4% south since June 2024. However, before we present a few 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 the Sector and the S&P 500 The Zacks Real Estate – Development industry has underperformed the S&P 500 composite and the broader Finance sector over the past year. The industry has declined 6.8% during this period against the S&P 500 composite's growth of 12.3%. The broader Finance sector has increased by 22.5%. Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is a commonly used multiple for valuing real estate development companies, we see that the industry is currently trading at 7.76X compared with the S&P 500's 22.02X. The industry is also trading below the Finance sector's forward 12-month P/E of 16.20X. Over the past five years, the industry has traded as high as 22.09X and as low as 3.77X, with a median of 6.94X. 2 Real Estate Development Stocks to Consider Landsea Homes Corp.: This Dallas, TX-based publicly traded residential homebuilder designs and builds best-in-class homes and sustainable master-planned communities in some of the United States' most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Colorado, Florida, Texas and throughout California in Silicon Valley, Los Angeles and Orange County. Though elevated interest rates have exerted downward pressure on demand nationwide, primarily due to reduced affordability for numerous prospective homebuyers, Landsea Homes is expected to benefit from its efforts to enter new markets, focus on entry-level product offerings and strengthen its brand position through product differentiation. LSEA currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2025 EPS has remained unchanged at $1.05 over the past two months. The stock has gained 54% in the past three months. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Howard Hughes Holdings, Inc.: This Woodlands, TX-based company is engaged in the ownership, management and development of commercial, residential and mixed-use real estate throughout the United States. The company operates through three business segments, namely Operating Assets, Master Planned Communities and Strategic Developments. Its assets include a portfolio of master-planned community assets, buildings and equipment, land and developments. With its expertise in the real estate sector, the company is well-poised to bank on the favorable demand in the residential and commercial real estate markets. HHH currently has a Zacks Rank #3. The Zacks Consensus Estimate for its 2025 EPS has been raised 55.4% over the past two months to $1.43. The company's shares have declined 3.2% in the past three months. 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 >> Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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. 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 Landsea Homes Corporation (LSEA): Free Stock Analysis Report Howard Hughes Holdings Inc. (HHH): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
Zacks Industry Outlook Highlights A10 Networks and Ondas
Chicago, IL – June 11, 2025 – Today, Zacks Equity Research discusses A10 Networks ATEN and Ondas ONDS. Link: The Zacks Communication-Network Software industry players like A10 Networks and Ondas are gaining from the ongoing digitalization efforts, including a shift to cloud computing and the rapid deployment of 5G-based networks. The strong demand for network security benefits industry participants, as a secure environment is required to run cloud-based applications. Industry players are leveraging artificial intelligence (AI) and machine learning to develop security solutions, thereby providing better threat protection systems. However, the industry players are suffering from challenging macroeconomic conditions and persistent inflation. Small and medium businesses have deferred capital spending on infrastructure buildout due to higher interest rates and inflation, which does not bode well for industry players. The Zacks Communication-Network Software industry comprises companies that provide software solutions supporting cloud, on-premise and hybrid environments, communication technology solutions, including broadband and Voice Over Internet Protocol, digital communication services delivered as software-as-a-service and telecom solutions, supporting the proliferation and the deployment of 5G and 6G networks of the future. There are a few companies that offer solutions based on the Open Radio Access Network standard. Others offer wireless connectivity solutions for mission-critical Industrial Internet applications and services. Solutions from these companies support a variety of industries, including telecommunications, technology, industrial, government, retail, financial, gaming and education. : Rapid digitalization, driven by the disruption caused by the pandemic, has increased the demand for cloud-based applications, virtualized software and container-based software. Applications are being developed in the cloud, which is creating opportunities and, at the same time, challenges for industry participants in terms of performance and security. Rising cyberattacks, including Distributed Denial of Service attacks and attacks using malware through Transport Layer Security and Secure Sockets Layer protocols, are redefining the cyber threat landscape. Enterprises are spending more on cloud-based security solutions. Moreover, the software-defined approach is increasingly preferred over legacy hardware-centric models due to the need for agility. : The ongoing rapid transition to the cloud has increased the importance of automation tools. Enterprises are adopting automated tools to deploy and operate security and application services. This is improving performance monitoring and detection, reporting security anomalies and reducing overall costs. : Industry participants are benefiting from a continued rise in demand for data-intensive bandwidth and the need for reduced latency associated with smartphones, tablets and machine-to-machine communication. The proliferation of data centers, big data, cloud-based services, streaming media content and IoT are key catalysts. The rapid deployment of 5G networks is creating a massive growth opportunity for telecom providers who are using solutions provided by industry participants. The Zacks Communication-Network Software industry is housed within the broader Zacks Computer And Technology sector. It carries a Zacks Industry Rank #93, which places it in the top 38% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. Given the bullish prospects, there are a handful of stocks worth watching in this prospering industry. But, before we present these stocks, it is worth looking at the industry's shareholder returns and current valuation first. The Zacks Communication-Network Software industry has outperformed the Zacks S&P 500 composite and its sector in the past year. The industry has appreciated 23% over this period compared with the Zacks Computer and Technology sector's return of 10.6% and the S&P 500's appreciation of 11.6%. On the basis of trailing 12-month EV/Sales, a commonly used multiple for valuing network software companies, we see that the industry is currently trading at 2.68X compared with the S&P 500's 5.19X and the sector's 7.08X. Over the past five years, the industry has traded as high as 2.83X and as low as 2.35X, with the median being 2.7X. A10 Networks: This Zacks Rank #2 (Buy) company is a leading provider of security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. A10 Networks is benefiting from strong demand for its solutions from AI-related data centers. ATEN's solutions offer industry-leading efficiency in terms of throughput and low latency, along with integrated security capabilities. A10 Networks' initiatives to develop solutions for Bot Protection, DDoS mitigation and technologies designed specifically for GPU-based AI infrastructure are noteworthy. ATEN's 2025 prospects are expected to be driven by strong security revenue growth. San Jose, CA-based A10 Networks' shares have declined 0.3% year to date. The Zacks Consensus Estimate for ATEN's 2025 earnings has been steady at 88 cents per share in the past 30 days. Ondas: This Zacks Rank #3 (Hold) company is a provider of private wireless, drone, and automated data solutions. Ondas Networks provides wireless connectivity solutions enabling mission-critical Industrial Internet applications and services. Ondas Autonomous Systems' business unit develops and integrates drone-based solutions focusing on high-performance critical applications for government and Tier-1 commercial enterprises. The company is benefiting from strong demand for its Autonomous Drone platforms. At the end of the first quarter of 2025, order backlog was $16.8 million. Based on strong demand for both Iron Drone and Optimus Ondas expects orders to grow with revenues of at least $25 million for 2025. Shares of Boston, MA-based Ondas have declined 34.4% year to date. The Zacks Consensus Estimate for Ondas' 2025 loss has narrowed by a penny to 39 cents per share over the past 30 days. 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 >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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. 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 A10 Networks, Inc. (ATEN) : Free Stock Analysis Report Ondas Holdings Inc. (ONDS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
6 days ago
- Business
- Yahoo
Zacks Industry Outlook Highlights CyberArk Software, Okta and Qualys
Chicago, IL – June 10, 2025 – Today, Zacks Equity Research discusses CyberArk Software Ltd. CYBR, Okta, Inc. OKTA and Qualys, Inc. QLYS. Industry: Security Link: The Zacks Security industry is experiencing robust demand for cybersecurity products, driven by the increasing need for secure networks and cloud-based applications, especially with the rise of hybrid work environments. This surge in demand is largely due to a significant increase in data breaches, prompting companies to seek comprehensive IT security solutions. The growing need for privileged access security, fueled by digital transformation and cloud migration strategies, is further boosting the demand for cybersecurity solutions. Companies like CyberArk Software Ltd., Okta, Inc. and Qualys, Inc. are benefiting from these trends. However, the industry's short-term growth prospects may be hampered as organizations delay investments in large and costly technology products due to global economic slowdown concerns, macroeconomic challenges and geopolitical tensions. Furthermore, increased operating expenses related to hiring new employees, and implementing sales and marketing strategies to gain market share are expected to pressure profit margins in the near term. The Zacks Security industry encompasses companies that provide both on-premise and cloud-based security solutions. These solutions cater to a variety of needs, such as identity access management, infrastructure protection, integrated risk management, malware analysis and Internet traffic management, among others. The industry offers a diverse range of security solutions, many of which can be used interchangeably. These solutions are broadly categorized into three types — Computer Security, Cybersecurity and Information Security. Computer Security focuses on safeguarding the software and hardware of computer systems from vulnerabilities. Cybersecurity encompasses areas like web security, network security, application security, container security and information security. Information Security deals with the protection of data in all forms, whether physical or digital. The increasing frequency of cyberattacks is escalating the need for robust security solutions. These threats not only impact individual companies but also pose risks to national security in some countries. Companies in the security industry are actively addressing these issues as there is a growing need for protection against spear phishing, credential-based attacks, account takeovers and ransomware. The shift toward digital transformation and cloud migration is driving the demand for cybersecurity solutions. Sectors ranging from education and entertainment to healthcare are increasingly relying on technology, making them vulnerable to cyberattacks. Public institutions and large companies, as well as smaller organizations with less stringent security measures, are at risk. The deployment of 5G has expanded the Internet of Things (IoT) and artificial intelligence (AI), which, while simplifying operations, will increase cybercrime rates due to greater technological reliance. Uncertain macroeconomic conditions and geopolitical issues may lead enterprises to delay significant IT investments. Amid current economic challenges, organizations are likely to conserve cash and reduce spending, which could negatively affect the security market in the short term. To remain competitive in the IT security market, companies are continually investing in expanding their capabilities. This includes substantial investments in research and development to enhance product offerings and improve overall security solutions for clients. Additionally, firms are heavily investing in sales and marketing, particularly by increasing their sales workforce. These elevated operating expenses, aimed at gaining market share, may reduce profit margins in the near term. The Zacks Security industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #19, which places it among the top 8% of nearly 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. 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 aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group's earnings growth potential. The industry's bottom-line estimate for 2025 has moved up to $1.45 from earnings of $1.35 expected a year ago. Over the past year, the Zacks Security industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 composite. The industry has soared 38.3% during this period, while the broader sector and the S&P 500 have returned 11.8% and 11.9%, respectively. On the basis of the forward 12-month price-to-sales ratio (P/S), which is a commonly used multiple for valuing Security stocks, the industry is currently trading at 14.77, higher than the S&P 500's 5.12 and the sector's 6.37. Over the last five years, the industry has traded as high as 19.36X and as low as 6.92X, with a median of 12.56X. CyberArk Software: Founded in 1999, the company offers services that protect organizational privileged accounts from cyberattacks. Currently, CYBR sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. CyberArk Software is benefiting from the rising demand for cybersecurity and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies. A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CyberArk Software from the adverse effects of softening IT spending. The company's strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth. The consensus mark for its 2025 earnings has been revised upward by 13 cents to $3.79 per share over the past 30 days. Shares of CYBR have soared 60% over the past year. Qualys: It has been a leading force in offering information security solutions. Qualys' suite of IT, security and compliance solutions spans diverse applications, including asset management, IT security, cloud-native security, web application security and compliance. Qualys is benefiting from the increasing demand for cloud-based cybersecurity solutions amid growing cyber threats and digital transformation initiatives. With a diverse customer base that includes enterprises, SMBs and government entities, the company maintains a balanced customer mix, which keeps it resilient against fluctuations in IT spending. Qualys' continuous innovation and focus on expanding product capabilities position it well to navigate market challenges and sustain long-term growth despite potential macroeconomic disruptions. A continuous increase in Vulnerability Management, Detection and Response to customer penetration is an upside. Qualys currently sports a Zacks Rank #1. The consensus mark for its 2025 earnings has been revised upward by 9 cents to $6.17 per share over the past 30 days. Shares of QLYS have risen 3.8% over the past year. Okta: It is a leading provider of identity security for enterprises. Okta's Workforce Identity Cloud combines access management, identity governance and privileged access to provide a gateway that enables its workforce-based customers to securely connect to Okta's applications from multiple devices. Okta's Customer Identity Cloud provides bot detection, fraud prevention and account takeover attack protection. Both platforms offer Adaptive Multi-Factor Authentication for secure connectivity. Its Workforce Identity Cloud and Customer Identity Cloud solutions are experiencing increased traction as a growing number of organizations are adopting digital transformation and cloud migration strategies. The company was serving approximately 20,000 customers at the end of the first quarter of fiscal 2026. Okta currently carries a Zacks Rank #2 (Buy). The consensus mark for its fiscal 2026 earnings has been revised upward by 9 cents to $3.28 per share over the past 30 days. Shares of OKTA have rallied 17.9% over the past year. 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. 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 Qualys, Inc. (QLYS) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Okta, Inc. (OKTA) : 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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09-06-2025
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The Zacks Analyst Blog Highlights SLV, SIVR, SIL SILJ and SLVP
Chicago, IL – June 9, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares Silver Trust SLV, abrdn Physical Silver Shares ETF SIVR, Global X Silver Miners ETF SIL, ETFMG Prime Junior Silver ETF SILJ and iShares MSCI Global Silver and Metals Miners ETF SLVP. Here are highlights from Friday's Analyst Blog: Silver soared to its highest level in more than a decade, topping $35.90 per ounce — a level not seen since February 2012. The rally comes amid a weakening U.S. dollar, heightened global trade uncertainty and rising interest in precious metals as geopolitical and economic hedges. Silver has risen 24% so far this year. Silver miners also spiked, as they are the biggest beneficiaries of a surge in silver prices. These act as leveraged plays on underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market. Investors seeking to tap the rally could consider ETFs. The silver surge mirrors the recent rally in gold, with both precious metals benefiting from investor anxiety surrounding President Trump's evolving tariff agenda. Silver futures for July delivery jumped more than 4% on Thursday, riding a wave of momentum that analysts say has been building for months. "The breakout has been brewing for a while," said Maria Smirnova, CIO at Sprott Asset Management. "Silver had attempted to breach the $35 threshold several times recently. This move is technically significant and could ignite a wave of physical buying that accelerates the rally." A major tailwind for silver is the sustained supply deficit in recent years. The silver market is heading for the fifth year of deficit, driven largely by surging industrial demand, particularly from the green energy and electronics sectors. Per the Silver Institute industry association, total silver demand is expected to reach 1.148 billion ounces this year, while supply is forecast at just 1.030 billion ounces. Silver is often used to preserve wealth during times of financial and political uncertainty and usually does well when other asset classes struggle. Geopolitical tensions and ongoing uncertainty over the Trump administration's trade policies enhance the metal's attractiveness among investors (read: Tap Income ETFs Amid Trump Tariffs' Legal Trouble). Silver is benefiting from its dual role as both an investment asset and an industrial metal. The white metal is used in a wide range of industrial applications. About half of the metal's total demand comes from industrial applications, while 30% comes from jewelry/silverware/coins and medal manufacturers. Additionally, the global push for green energy, increasing demand in areas like 5G, a rebound in global computer shipments, the photovoltaics (PV) and automotive industries and new sources of demand for sensors used in IoT and OLED lighting will continue to boost silver demand. Silver is largely used for manufacturing solar panels and electric vehicles, and will play a key role in the shift to 5G wireless network technology. The gold-to-silver ratio has tightened sharply from around 105 in April to approximately 94 by early June, indicating silver is outperforming gold. Since gold has also seen strong inflows (up 29% year to date), this shift added fuel to silver ETF flows (read: Gold Eyes Best Week in a Month: Will ETFs Sustain the Rally?). Another crucial factor behind silver's rally is the weakness in the U.S. dollar. The dollar index has declined steadily over recent weeks, driven by growing concerns over America's fiscal trajectory. President Trump's newly passed tax bill, which raises the debt ceiling by $4 trillion, has added to investor anxiety over ballooning federal deficits. As the greenback loses value, dollar-denominated assets like silver have become more attractive to foreign buyers. We have discussed the above-mentioned ETFs here: iShares Silver Trust iShares Silver Trust offers exposure to the day-to-day movement of the price of silver bullion. It is an ultra-popular silver ETF, with an AUM of $16 billion and a heavy volume of 15 million shares a day. It charges 50 bps in fees per year from investors. abrdn Physical Silver Shares ETF abrdn Physical Silver Shares ETF tracks the performance of the price of silver less the Trust expenses. It has an AUM of $1.8 billion and trades in a good volume of around 628,000 shares per day on average. SIVR has an expense ratio of 0.30%. Global X Silver Miners ETF Global X Silver Miners ETF provides investors access to a broad range of silver mining companies by tracking the Solactive Global Silver Miners Total Return Index. It holds 40 stocks in its basket with a double-digit concentration on the top two firms. Global X Silver Miners ETF has managed assets worth $1.7 billion and trades in a good volume of about 1.4 million shares a day. It charges 65 bps in annual fees. ETFMG Prime Junior Silver ETF ETFMG Prime Junior Silver ETF is the first ETF to target small-cap silver miners. It provides direct exposure to the small-cap silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index. ETFMG Prime Junior Silver ETF holds 56 stocks in its basket, with Canadian firms taking the lion's share at 57%, while the United States takes 18% exposure. It has managed assets worth $1.3 billion and trades in a good volume of nearly 3 million shares a day. It charges 69 bps in annual fees (see: all the Materials ETFs here). iShares MSCI Global Silver and Metals Miners ETF iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of their revenues from silver exploration or metals mining. It holds 30 stocks in its basket, with Canadian firms making up the lion's share at 69.1%, while the United States and Mexico round off the next spots. iShares MSCI Global Silver and Metals Miners ETF has AUM of $285.7 million and an average daily volume of about 189,000 shares. It charges 39 bps in annual fees. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it 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. 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 iShares Silver Trust (SLV): ETF Research Reports abrdn Physical Silver Shares ETF (SIVR): ETF Research Reports Global X Silver Miners ETF (SIL): ETF Research Reports Amplify Junior Silver Miners ETF (SILJ): ETF Research Reports iShares MSCI Global Silver and Metals Miners ETF (SLVP): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
