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Industry Overview - The consumer discretionary sector has experienced moderate growth over the past year, despite a strong rally in U.S. stock markets, and is currently in the negative year-to-date [1] - The sector is growth-oriented, with share prices typically increasing over a long period, but it is sensitive to market interest rate movements [1] Monetary Policy Impact - The Federal Reserve has implemented easy monetary policies with significant cuts in the benchmark lending rate over the last two years, leading to uncertainty about interest rate trajectories this year [2] - Concerns regarding AI-led corporate profits have also impacted growth-oriented stocks [2] Investment Opportunities - Five consumer discretionary stocks have been identified with favorable Zacks Ranks for investment, showing double-digit price upside potential in the short term: Ralph Lauren Corp. (RL), Roku Inc. (ROKU), Airbnb Inc. (ABNB), FOX Corp. (FOX), and Carnival Corporation & plc (CCL) [3][9] - Each selected stock carries either a Zacks Rank 1 (Strong Buy) or 2 (Buy) [3] Ralph Lauren Corp. (RL) - Ralph Lauren has benefited from its "Next Great Chapter: Drive Plan," focusing on brand elevation and operational agility, leading to robust financial performance [6] - The company expects revenues to increase in the high-single to low-double digits for fiscal 2026, with gross margin expected to rise by 40-80 basis points and operating margin by 100-140 basis points [7] - Expected revenue and earnings growth rates for the current year are 11.7% and 30.5%, respectively, with a 5% improvement in the earnings consensus estimate over the last 30 days [8] Roku Inc. (ROKU) - Roku demonstrates strong platform revenue expansion driven by innovative advertising capabilities and a growing distribution of streaming services [11] - The company has achieved substantial household penetration and improved profitability, with expected revenue and earnings growth rates of 15.4% and over 100%, respectively, for the current year [15] - The short-term average price target indicates a potential increase of 35.7% from the last closing price, with a maximum upside of 77.8% [15] Airbnb Inc. (ABNB) - Airbnb is experiencing positive trends in Gross Booking Value due to improvements in Nights and Experiences Booked, driven by increasing guest demand and recovery in cross-border travel [16][17] - The expected revenue and earnings growth rates for the current year are 10.8% and 18.1%, respectively, with a 0.6% improvement in the earnings consensus estimate over the last seven days [18] - The short-term average price target suggests a potential increase of 20.4% from the last closing price, indicating a maximum upside of 64.8% [18] FOX Corp. (FOX) - FOX produces and distributes a variety of content, including news and sports, but has expected revenue and earnings growth rates of -0.9% and -2.3%, respectively, for the current year [19] - The short-term average price target indicates a potential increase of 36.1% from the last closing price, with a maximum upside of 68.7% [20] Carnival Corporation & plc (CCL) - Carnival is benefiting from sustained demand, increased booking volumes, and a focus on marketing to attract new customers [21][22] - The expected revenue and earnings growth rates for the current year are 4.6% and 12.9%, respectively, with a 5.8% improvement in the earnings consensus estimate over the last 60 days [23] - The short-term average price target suggests a potential increase of 19.1% from the last closing price, indicating a maximum upside of 44.8% [23]

Key Takeaways NIO delivered 326,028 vehicles in 2025, up nearly 47%, and topped 1 million cumulative deliveries.Tesla's deliveries fell more than 8% in 2025, marking the second straight year of decline.NIO targets Q4'25 adjusted operating profit of 700M-1.2B yuan, indicating a sharp reversal from Q4'24 loss.For years, Tesla (TSLA) was synonymous with electric vehicles (EVs). It was the first name that came to mind when talking about EVs. But competition intensified, EV adoption got slower than expected, and ...

Core Viewpoint - Newmont Corporation (NEM) is expected to report its fourth-quarter 2025 results on February 19, with anticipated benefits from higher gold prices despite challenges from weaker production [1][7]. Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter earnings has been revised upward to $1.81 per share, indicating a 29.3% year-over-year increase [2][3]. - The consensus estimate for fourth-quarter revenues is projected at $5.76 billion, reflecting a roughly 2% increase from the previous year [2]. Production and Pricing Factors - Higher realized gold prices are expected to positively impact Newmont's revenues and margins for the fourth quarter [6][10]. - Gold prices increased nearly 13% in the fourth quarter and surged approximately 65% in 2025, with an average realized price for Newmont estimated at $3,560 per ounce, a 34.7% year-over-year rise [10][8]. - Newmont's production is anticipated to decline by about 25% year-over-year, with expected production of 1.415 million ounces for the fourth quarter, influenced by strategic divestments and lower grades [12][11]. Stock Performance and Valuation - Newmont's shares have increased by 170.1% over the past year, outperforming the Zacks Mining – Gold industry, which rose by 143.7% [13]. - The company is currently trading at a forward 12-month earnings multiple of 15.14, which is a 7.8% premium to the peer group average of 14.05 [17]. Growth and Strategic Positioning - Newmont is positioned for growth with a strong portfolio of projects aimed at expanding production capacity and extending mine life, which should drive revenues and profits [18]. - The acquisition of Newcrest Mining Limited is expected to enhance Newmont's portfolio and deliver significant shareholder value [18]. - The company's focus on high-return, long-life assets supports its long-term sustainability [19]. Financial Health - Newmont maintains a strong liquidity position and generates substantial cash flows, enabling it to fund growth projects and meet short-term obligations [19]. - The anticipated production decline due to divestments and lower grades may impact profitability goals [19]. Investment Outlook - Newmont is well-positioned for future expansion, supported by solid performance from its Tier 1 assets and a robust project pipeline [20]. - Elevated gold prices are expected to enhance margins and cash flow generation, although softer production levels could pressure near-term results [20].

Core Insights - Equinox Gold Corp. (EQX) is expected to release its fourth-quarter 2025 results on February 18, with a history of mixed earnings surprises, having beaten estimates in two of the last four quarters and missed in two, averaging an earnings surprise of approximately 86.6% over the trailing four quarters [1][10] Group 1: Performance Metrics - EQX's shares have increased by 125.7% over the past year, while the Zacks Mining – Gold industry has seen a rise of 140% [2] - The company reported record gold production of 922,827 ounces for the full year 2025, indicating strong operational performance [5] - For the fourth quarter, gold production reached a record 247,024 ounces, including contributions from Greenstone (72,091 ounces) and Valentine (23,207 ounces) [6][8] Group 2: Market Factors - Higher gold prices are anticipated to have positively impacted EQX's profitability, with prices closing nearly 13% higher in the fourth quarter and surging approximately 65% throughout 2025 due to increased safe-haven demand amid global trade tensions and geopolitical issues [4] - Operational improvements at Greenstone and Valentine are expected to have contributed to the strong production figures, with Greenstone showing enhanced mining and milling rates [9]

Core Insights - Kinross Gold Corporation (KGC) shares have increased by 38.1% over the past three months, outperforming the Zacks Mining – Gold industry's growth of 36.1% and the S&P 500's rise of 3% [1][6] - The surge in KGC's stock price is attributed to strong earnings, higher gold prices, and solid operational performance across its mining assets [6] Price Performance - KGC has been trading above the 200-day simple moving average (SMA) since March 6, 2024, indicating a bullish trend [4] - The stock is also above its 50-day SMA, which is higher than the 200-day moving average [4] Development Projects - Kinross is advancing three organic growth projects in the U.S. aimed at extending mine life and optimizing costs, including Round Mountain Phase X, Bald Mountain Redbird 2, and Kettle River–Curlew [10] - These projects are expected to contribute 3 million ounces of life-of-mine production, with a combined Internal Rate of Return (IRR) of 55% and a post-tax Net Present Value (NPV) of $4.1 billion [11] Financial Health - KGC has a strong liquidity position, generating substantial cash flows to finance development projects and pay down debt [13] - The company reactivated its share buyback program in April 2025, returning over $750 million to shareholders through dividends and buybacks [13] - As of September 30, 2025, KGC had $1.6 billion in available credit and no debt maturities until 2033 [14] Gold Prices Impact - Gold prices surged by 65% in 2025, driven by aggressive trade policies and central bank purchases, which are expected to boost KGC's profitability [16][18] - Despite a recent pullback, gold prices remain elevated, currently around $5,000 per ounce [17] Production Costs - KGC faced a 17% year-over-year increase in production cost of sales per ounce to $1,145, with all-in-sustaining costs (AISC) rising nearly 20% to $1,622 per gold equivalent ounce sold [19] - The company anticipates an AISC of $1,500 per ounce for 2025, indicating continued inflationary pressure [19] Analyst Sentiment - Earnings estimates for KGC have been rising, with the Zacks Consensus Estimate for 2025 earnings at $1.69, reflecting a year-over-year growth of 148.5% [20] - Analysts expect earnings to grow approximately 52.9% in 2026 [20] Valuation - KGC is currently trading at a forward 12-month earnings multiple of 13.39, which is a 4.7% discount to the peer group average of 14.05 [24] - The company has a Value Score of B, indicating a favorable valuation compared to its peers [24] Investment Considerations - KGC's strong pipeline of development projects and solid financial health, along with rising earnings estimates, present positive investment opportunities [25] - However, higher production costs may pose challenges, suggesting a cautious approach for investors [25]

Watsco (WSO) came out with quarterly earnings of $1.68 per share, missing the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.33%. A quarter ago, it was expected that this heating and cooling company would post earnings of $4.21 per share when it actually produced earnings of $3.98, delivering a surprise of -5.46%.Over the last four quarters, t ...

Hillman Solutions Corp. (HLMN) came out with quarterly earnings of $0.1 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.26%. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.22, delivering a surprise of +22.22%.Over the last four quarters, the company has su ...

Heightened uncertainty over global macroeconomic conditions and volatile supply-chain dynamics, amid ongoing tariff troubles, continues to be concerning for the participants of the Zacks Computer - Networking industry in the near-term. Fierce competition is an overhang on pricing power and margin expansion. Over the long term, participants are expected to receive a boost from momentum in cloud computing, network security, big data and cloud storage, as well as next-gen connectivity, amid the rapid adoption ...

Ceragon Networks (CRNT) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this provider of wireless backhaul services would post earnings of $0.04 per share when it actually produced earnings of $0.02, delivering a surprise of -50%.Over the l ...