Group 1: Kohl's Corporation - Kohl's continues to experience revenue declines in apparel, footwear, and legacy homes despite sales gains from in-store initiatives like Sephora and Home Décor [2] - Structural risks to Kohl's store footprint are significant, with adjusted debt/EBITDAR ending 2023 at 3.6x, above the company's target of ~2.5x, and projected leverage may exceed 4x through 2024–26 [3] - Analyst forecasts fiscal year 2025 EPS at 56 cents and fiscal year 2026 EPS at 53 cents, both above Street estimates, while maintaining an Underweight rating with a price forecast of $8 [4] Group 2: Vail Resorts, Inc. - Vail Resorts may be nearing a turning point in revenue and earnings, aided by the return of former CEO Katz and unique growth drivers [5] - Key advantages include a premium resort portfolio, upfront revenue from the Epic Pass strategy, and a resilient customer base of high-income, frequent skiers [5] - Projected fiscal year 2025 adjusted EBITDA is $866 million and fiscal year 2026 at $908 million, both slightly above Street estimates, with a Neutral rating and price forecast of $167 [6] Group 3: Foot Locker, Inc. - Foot Locker faces challenges from inconsistent same-store sales, increased promotions, and brand allocation changes, particularly with Nike [7] - Dick's Sporting Goods aims to revamp Foot Locker through a $2.4 billion acquisition to create a larger global retail sports platform and enhance omni-channel capabilities [7] - Analyst models fiscal year 2025 EPS for Foot Locker at $1.10, ahead of the Street's $1.00, with a projected rise to $1.65 for fiscal year 2026, maintaining a Neutral rating and price forecast of $24 [8]

Core Viewpoint - Recent data from CarMax KMX Auto Finance indicates a rise in loan delinquencies and net losses, raising concerns about credit quality in the used auto lender's portfolio [1][4]. Summary by Sections Loan Performance - After two months of stability, loan delinquency and loss rates have worsened, with May showing a sharper increase than typical seasonal trends [2][3]. - The portfolio-level delinquency rate increased by 36 basis points sequentially, exceeding the historical seasonal average of 18 basis points [7]. - Year-over-year, the portfolio-level delinquency rate rose by 16 basis points, contrasting with a trailing three-month trend of a decrease of 2 basis points [8]. Credit Quality Concerns - The cumulative net loss rate increased by 52 basis points year-over-year, consistent with a trailing three-month trend of 48 basis points [8]. - Newer securitizations are not performing better than older vintages, with the delinquency rate for the most recent prime securitization trending higher than older vintages [5][4]. Analyst Insights - Analyst Scott Devitt maintains an Outperform rating on CarMax with a price target of $90, despite the concerns raised by the recent data [1]. - Devitt projects first-quarter revenue of $7.67 billion and earnings per share of $1.23 [10]. - The company is expected to face increased loan loss provisions as it targets lower-tier borrowers to maintain interest margins [6][4]. Market Dynamics - Despite the challenges, the used auto market remains healthy, supported by strong gross profit margins for scaled retailers [9][10]. - CarMax has sustained robust sourcing methods and integrated credit capabilities, which have helped maintain performance amid macroeconomic uncertainties [10].

Core Insights - Jabil Inc. reported better-than-expected third-quarter results with adjusted earnings per share of $2.55, surpassing the analyst consensus estimate of $2.31, and quarterly sales of $7.83 billion, exceeding the consensus estimate of $7.06 billion [1] Financial Projections - For the fourth quarter, Jabil projects net revenues between $7.10 billion and $7.80 billion, compared to a consensus of $7.19 billion, and anticipates adjusted EPS of $2.64 to $3.04 against a consensus of $2.74 [2] - For fiscal 2025, Jabil expects revenues of $29.0 billion, above the consensus of $28.0 billion, and anticipates adjusted EPS of $9.33, exceeding the consensus of $8.97 [3] Stock Performance - Following the earnings announcement, Jabil shares rose by 4.1% to trade at $204.98 [3] Analyst Ratings and Price Targets - UBS analyst David Vogt maintained a Neutral rating and raised the price target from $157 to $208 [5] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating and increased the price target from $180 to $214 [5] - Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $188 to $215 [5] - Raymond James analyst Melissa Fairbanks reiterated a Strong Buy rating and increased the price target from $170 to $230 [5]

Core Viewpoint - The digital banking space is identified as an attractive investment arena, with a focus on companies like Alkami Technology and Q2 Holdings, which are modernizing customer-facing software for credit unions and regional banks [1][3]. Company Summaries - **Alkami Technology**: - Rated as Overweight by the analyst, with organic revenue growth exceeding 20% and trading at six times EV/Sales for 2026E [4]. - Holds less than 5% market share in a ~$10 billion market, with up to 60% of the market being an addressable opportunity [3]. - Benefits from high customer retention and long contract lengths, supporting revenue visibility [1]. - **Q2 Holdings**: - Also rated as Overweight, with similar characteristics to Alkami Technology in terms of customer retention and contract lengths [1]. - Holds less than 10% market share in the same ~$10 billion market, with significant growth potential [3]. - **nCino**: - Rated as Neutral, focusing on cloud-based banking software solutions for financial institutions [2]. - The analyst has noted idiosyncratic factors that have kept her on the sidelines regarding nCino compared to broader vertical SaaS [2]. Market Dynamics - The digital banking industry is characterized by a defensive monetization model based on the number of bank accounts and products subscribed to by banks [2]. - The opportunity for improving bank efficiency is described as seemingly limitless, indicating a strong growth potential for the sector [2]. Price Actions - As of publication, stock prices are as follows: - Alkami Technology (ALKT) is up 5.26% at $28.24 - Q2 Holdings (QTWO) is up 3.56% at $89.07 - nCino (NCNO) is down 0.44% at $26.96 [5].

Core Viewpoint - Darden Restaurants Inc. is expected to report strong fourth-quarter results, with analysts predicting a beat and positive guidance for fiscal year 2026, although some of this may already be reflected in the stock's performance [1][4]. Group 1: Financial Performance Expectations - Analysts from Truist Securities predict Olive Garden's same-store sales (SSS) will rise by 6.5% in the quarter, surpassing the 4.5% consensus and likely exceeding investor expectations [2]. - The fourth-quarter same-store sales estimate has been raised to +4.5% and EPS forecast to $3.02, both above the consensus estimates of +3.6% and $2.96 [3]. - For fiscal year 2026, the blended SSS forecast is increased to +3.8% and EPS to $11.05, up from +3.5% and $10.92 respectively [3]. Group 2: Strategic Focus and Market Position - Darden is likely to reaffirm its long-term goal of a 10%–15% total shareholder return, with a greater emphasis on new store openings rather than margin expansion [2]. - Olive Garden, which accounts for approximately 43% of Darden's sales, is seen as a key driver for the company's performance, benefiting from delivery growth and enhanced marketing efforts [5]. - Analysts maintain a bullish outlook on Darden, with expectations of continued earnings upside into fiscal year 2026 despite the stock's elevated price-to-earnings (P/E) multiple of 21x [4][5]. Group 3: Analyst Ratings and Price Forecasts - Truist Securities analyst Jake Bartlett has reiterated a Buy rating on Darden, raising the price forecast from $230 to $252 [8]. - Oppenheimer analyst Brian Bittner has also reiterated an Outperform rating, adjusting the price forecast from $230 to $250 [8].

Core Viewpoint - BofA Securities analyst Wamsi Mohan initiated coverage on SanDisk with a Buy rating and a price target of $61, highlighting the company's strong position in the NAND flash technology market [1] Group 1: Market Dynamics - The near-term supply-demand balance is improving, with supply curtailment observed in the first quarter, leading to a more positive pricing environment for NAND in the upcoming quarters [1] - The NAND flash industry remains fragmented with over six players, but there is potential for consolidation in the long term [2] - SanDisk aims to implement more disciplined pricing strategies in a capital expenditure-heavy industry characterized by historically low returns [2] Group 2: Financial Projections - Mohan projects fiscal 2025 revenue for SanDisk at $7.29 billion and earnings per share (EPS) at $2.75 [5] - SanDisk's stock price increased by 6.04% to $46.76 at the time of publication [5] Group 3: Competitive Positioning - SanDisk's operating margin has shown resilience during downturns due to effective capacity management and a favorable customer mix [4] - The company is expanding its product mix towards embedded solid-state drives (eSSDs), which represented only 15% of sales in the second half of 2024 [4] - SanDisk's joint venture with Kioxia allows for shared capital expenditure costs, which have surged to as high as $30 billion in recent years [3] Group 4: Future Outlook - There is potential for significant valuation rerating if pricing trends improve structurally in the NAND industry, although competition in China poses a concern [3] - The company is expected to outperform other NAND flash competitors in terms of through-cycle operating profit in the coming years [4]

Market Performance - U.S. stocks showed positive movement with the Dow Jones index increasing by over 150 points, up 0.36% to 42,366.99 [1] - The NASDAQ rose 0.56% to 19,629.54, and the S&P 500 gained 0.39% to 6,006.14 [1] - Consumer discretionary shares increased by 0.6%, while energy stocks fell by 0.4% [1] Company Earnings - Korn Ferry (KFY) reported better-than-expected fourth-quarter fiscal year 2025 results, with adjusted earnings per share of $1.32, surpassing the analyst consensus estimate of $1.26 [2] - Quarterly sales reached $719.83 million, exceeding the expected $689.90 million [2] Commodity Prices - Oil prices decreased by 0.9% to $74.20, while gold prices increased by 0.1% to $3,410.40 [5] - Silver prices fell by 0.5% to $36.970, and copper prices rose by 0.8% to $4.8455 [5] Global Market Trends - European shares were mixed, with the eurozone's STOXX 600 declining by 0.4%, while Spain's IBEX 35 Index rose by 0.1% [6] - Asian markets closed mixed, with Japan's Nikkei gaining 0.90% and Hong Kong's Hang Seng Index falling by 1.12% [7] Stock Movements - Ryde Group Ltd. (RYDE) shares surged by 165% to $0.4719 following the announcement of a 40% stake acquisition in Atoll Discovery [9] - Aptevo Therapeutics Inc. (APVO) shares increased by 114% to $6.06 after positive clinical data from its ongoing trial [9] - Eyenovia, Inc. (EYEN) shares dropped by 37% to $4.4100 due to the appointment of a strategic advisor and debt agreement amendments [9]

Group 1 - Valero Energy Corp's stock has gained nearly 40% since April, leading analysts to anticipate profit-taking due to overbought conditions [1] - The stock has faced resistance at the $142.50 level, which has historically led to sell-offs when reached [2][3] - Previous instances of reaching this resistance level resulted in traders placing sell orders, creating a pattern of selling pressure [4] Group 2 - The current overbought conditions at the resistance level suggest that a sell-off may occur soon, as traders anticipate a reversal [5]

Financial Performance - CarMax is set to release its first-quarter financial results on June 20, with analysts expecting earnings of $1.17 per share, an increase from $0.97 per share in the same period last year [1] - The company projects quarterly revenue of $7.53 billion, compared to $7.11 billion a year earlier [1] - CarMax reported weaker-than-expected earnings for the fourth quarter on April 10 [1] Stock Performance - CarMax shares fell by 2.2%, closing at $64.43 on Tuesday [2] Analyst Ratings - Wedbush analyst Scott Devitt reiterated an Outperform rating with a price target of $90 [4] - RBC Capital analyst Steven Shemesh maintained an Outperform rating but reduced the price target from $103 to $80 [4] - JP Morgan analyst Rajat Gupta maintained an Underweight rating and lowered the price target from $72 to $65 [4] - Truist Securities analyst Scot Ciccarelli maintained a Hold rating and increased the price target from $72 to $88 [4] - Oppenheimer analyst Brian Nagel maintained an Outperform rating with a price target of $105 [4]

McDonald's Corp MCD just launched a new burger in the UK called The Big Arch, but the only thing getting grilled this week is the stock.Chart created using Benzinga ProMcDonald's is now trading below its 200-day simple moving average (SMA) — a widely watched indicator — in what looks like a full technical breakdown. For the Golden Arches, that's not exactly a golden signal.Shares of the fast-food giant have been sliding underperforming the S&P 500. Over the past month, MCD has lost 9%, and it's now down sli ...