ZACKS
Search documents
Why Howmet (HWM) is a Top Growth Stock for the Long-Term
ZACKS· 2026-02-18 15:45
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using factors like weekly price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in building a successful portfolio [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks, even if they have high Style Scores, may still face downward price trends [11] Company Spotlight: Howmet Aerospace Inc. (HWM) - Howmet Aerospace provides engineered solutions for the transportation and aerospace industries, including forged wheels and aerospace fastening systems [12] - HWM holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Growth Style Score of A, indicating a projected year-over-year earnings growth of 18.8% for the current fiscal year [13] - The Zacks Consensus Estimate for HWM's earnings has increased by $0.07 to $4.48 per share, with an average earnings surprise of +7.2% [13][14]
Valmont Industries (VMI) is a Top-Ranked Growth Stock: Should You Buy?
ZACKS· 2026-02-18 15:45
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as we ...
Innodata vs. BigBear.ai: Which AI Play Has More Upside Now?
ZACKS· 2026-02-18 15:42
Core Insights - The artificial intelligence boom has created distinct investment opportunities, with Innodata (INOD) and BigBear.ai (BBAI) representing different approaches to capitalize on this trend [1][2]. Company Overview - Innodata has positioned itself as a high-growth data engineering partner for Big Tech and AI model builders, acting as a "picks and shovels" enabler of generative AI [2]. - BigBear.ai focuses on mission-ready AI solutions for defense and intelligence, recently expanding its capabilities through acquisitions [2]. Financial Performance - Innodata reported third-quarter revenues of $62.6 million, a 20% increase year over year, with adjusted EBITDA of $16.2 million, and anticipates 45% or more revenue growth in 2025 [7][10]. - In contrast, BigBear.ai's third-quarter revenue declined 20% year over year to $33.1 million, with a gross margin decrease to 22.4% [8][10]. Growth Potential - Innodata's revenue for the first nine months of 2025 reached $179.3 million, up 61% year over year, driven by demand for high-quality data [9]. - The company has a potential revenue pipeline of approximately $68 million from new contracts, positioning it well for future growth [11]. - BigBear.ai's recent acquisition of Ask Sage for $250 million aims to enhance its secure AI capabilities, although operational performance remains under pressure [14][17]. Valuation Metrics - Innodata trades at a forward price-to-sales ratio of 4.39X, while BigBear.ai trades at 9.95X, despite BigBear's weaker growth trajectory and negative EBITDA [10][18]. - Innodata's lower valuation multiple aligns with its profitable growth profile and clearer earnings visibility [18]. Earnings Outlook - The consensus estimate for Innodata's 2026 earnings per share is $1.12, indicating a 27.8% growth from 2025, with revenues expected to rise 25.9% [21]. - BigBear.ai is projected to narrow its loss to 25 cents per share in 2026, with revenues expected to grow 30.2% [22]. Investment Considerations - Both companies are positioned to benefit from expanding AI budgets, particularly in generative AI and federal deployments [23]. - However, Innodata is seen as having a clearer path to sustained profitability and diversified growth drivers, making it a more compelling investment opportunity at current levels [24][25].
Should Investors Buy, Sell or Hold KROS Stock Ahead of Q4 Earnings?
ZACKS· 2026-02-18 15:42
Key Takeaways KROS is set to report Q4 results, with investors focused on pipeline progress over limited license revenues.Rinvatercept advanced in DMD with phase I data and orphan drug tag; phase II start planned for 2026.Takeda deal on elritercept triggered $10M milestone as phase III RENEW study dosed first patient.We expect investors to focus on pipeline updates when Keros Therapeutics (KROS) reports fourth-quarter results shortly. The Zacks Consensus Estimate for sales and loss per share is pegged at $6 ...
Is KTOS Stock a Smart Investment Option Before Q4 Earnings Release?
ZACKS· 2026-02-18 15:42
Core Viewpoint - Kratos Defense & Security Solutions (KTOS) is anticipated to report fourth-quarter 2025 results on February 23, with earnings expected to grow by 7.69% year-over-year and revenues projected to increase by 15.95% from the previous year [1][7]. Financial Estimates - The Zacks Consensus Estimate for earnings is set at 14 cents per share for Q4 2025, with a revenue estimate of $328.25 million [1][2]. - Year-over-year growth estimates for earnings and revenues are 7.69% and 15.95%, respectively [1][2]. - The earnings estimates for the current year (2025) and next year (2026) are $0.51 and $0.73 per share, indicating growth of 4.08% and 41.92% respectively [2]. Earnings Surprise History - Kratos has consistently beaten earnings estimates in the last four quarters, with an average surprise of 29.17% [3][4]. Growth Drivers - The company is expected to benefit from increased target drone production and expanded maintenance, repair, and overhaul (MRO) capacity [7][10]. - New facilities in the U.S. and Jerusalem are anticipated to enhance engine, microwave, and RF production, thereby improving efficiency and revenue [7][12][13]. Stock Performance - Over the past three months, KTOS stock has returned 30.9%, outperforming the industry growth of 16.1% [14]. - The stock is currently trading at a discount compared to its industry on a forward 12-month price-to-sales (P/S) basis [17]. Investment Thesis - Kratos is recognized as a leading provider of unmanned aerial target drones, with a strong reputation and technology that supports consistent contract wins and global expansion [20]. - The Valkyrie UAS is becoming a core platform in the U.S. Marine Corps' Collaborative Combat Aircraft program, enhancing cash flow visibility and long-term growth prospects [21]. Challenges - The company faces supply-chain challenges due to raw material shortages, which may impact operations [24].
Reddit Benefits From Solid ARPU Growth: A Sign for More Upside?
ZACKS· 2026-02-18 15:42
Key Takeaways Reddit's Q4 2025 ARPU surged 42% YoY to $5.98, fueled by strong advertiser and user growth. RDDT added 121M daily users, up 19%, while active advertisers jumped 75% year over year. International revenue climbed 78%, with AI tools and automation expected to support ARPU growth. Reddit (RDDT) is benefiting from solid growth in Average Revenue Per User (ARPU). In the fourth quarter of 2025, ARPU increased 42% year over year to $5.98, indicating that portfolio expansions are driving higher moneti ...
Why First American Financial (FAF) is a Top Value Stock for the Long-Term
ZACKS· 2026-02-18 15:42
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...
Here's Why Avnet (AVT) is a Strong Value Stock
ZACKS· 2026-02-18 15:41
Company Overview - Avnet (AVT) is one of the world's largest distributors of electronic components and computer products, serving a diverse customer base that includes original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), and value-added resellers (VARs) [11] Investment Ratings - Avnet holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid overall rating [12] - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 14.09, making it appealing to value investors [12] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.25 to $4.62 per share [12] - Avnet has demonstrated an average earnings surprise of +10.9%, indicating a positive trend in earnings performance [12] Investment Consideration - With a strong Zacks Rank and top-tier Value and VGM Style Scores, Avnet is recommended for investors looking for potential opportunities in the market [13]
Is Kaiser Aluminum (KALU) Outperforming Other Industrial Products Stocks This Year?
ZACKS· 2026-02-18 15:41
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kaiser Aluminum (KALU) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.Kaiser Aluminum is a member of our Industrial Produ ...
Should Value Investors Buy PeapackGladstone Financial (PGC) Stock?
ZACKS· 2026-02-18 15:41
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, in ...