Nexa Resources S.A. (NEXA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indi ...

Core Viewpoint - Q2 Holdings (QTWO) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Outlook for Q2 Holdings - The upgrade indicates a positive outlook for Q2 Holdings' earnings, suggesting that the company's underlying business is improving [5][10]. - Analysts have raised their earnings estimates for Q2 Holdings, with the Zacks Consensus Estimate increasing by 5.1% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Kingfisher PLC (KGFHY) - Kingfisher PLC currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4] - The stock has shown significant price performance, with a 4.96% increase over the past week and a 17.06% increase over the past month, outperforming the Zacks Retail - Miscellaneous industry, which remained flat and grew only 3.22% respectively [6] - Over the past quarter, KGFHY shares have risen 29.56%, and over the last year, they have increased by 56.45%, while the S&P 500 has only moved 1.74% and 13.08% in the same periods [7] Trading Volume - The average 20-day trading volume for KGFHY is 123,552 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions show positive momentum, with one estimate moving higher for the full year, increasing the consensus estimate from $0.69 to $0.71 over the past 60 days [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10] Conclusion - Considering the positive price trends, trading volume, and earnings outlook, KGFHY is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Viewpoint - Vertiv Holdings Co. (VRT) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - For Vertiv, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a rise in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, Vertiv is expected to earn $5.85 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 17.1% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Vertiv's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9][10].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Fortis (FTS) - Fortis currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - The stock has shown a price increase of 5.24% over the past week, outperforming the Zacks Utility - Electric Power industry, which rose by 4.55% [6] - Over the past month, Fortis shares increased by 9.45%, compared to the industry's 7.16% [6] - In the last quarter, Fortis shares rose by 10.22%, and over the past year, they increased by 26.65%, while the S&P 500 only moved 1.74% and 13.08%, respectively [7] Trading Volume - Fortis has an average 20-day trading volume of 1,059,620 shares, which is a useful indicator of market interest and price movement [8] Earnings Outlook - In the past two months, four earnings estimates for Fortis have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.56 to $2.63 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, Fortis is positioned as a promising investment opportunity [12]

Core Insights - Gorman-Rupp (GRC) currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a positive outlook for the stock [2][3][11] Momentum Characteristics - Momentum investing focuses on following a stock's recent price trends, with the aim of capitalizing on established price movements [1] - GRC's shares have increased by 2.59% over the past week, outperforming the Zacks Manufacturing - General Industrial industry, which rose by 2.06% [5] - Over the last month, GRC's price change is 27.34%, significantly higher than the industry's 6.09% [5] Long-Term Performance - GRC has shown impressive long-term performance, with a 49.41% increase over the past quarter and a 76.86% gain over the last year [6] - In comparison, the S&P 500 has only moved 1.74% and 13.08% over the same periods [6] Trading Volume - The average 20-day trading volume for GRC is 135,384 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - Recent earnings estimate revisions for GRC have been positive, with one estimate moving higher for the full year, increasing the consensus estimate from $2.25 to $2.32 [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [9]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: China Yuchai (CYD) - China Yuchai currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Performance Metrics - Over the past week, CYD shares have increased by 7.22%, significantly outperforming the Zacks Automotive - Original Equipment industry, which rose by only 0.25% [6] - In a longer timeframe, CYD shares have surged by 55.44% over the past quarter and an impressive 353.55% over the last year, while the S&P 500 has only increased by 1.74% and 13.08% respectively [7] Trading Volume - The average 20-day trading volume for CYD is 157,076 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for CYD has been revised upward, increasing the consensus estimate from $2.09 to $2.97 for the full year [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, CYD is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling option for investors seeking short-term gains [12]

Phinia (PHIN) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors oft ...

Core Insights - MercadoLibre's logistics network is evolving from a cost burden to a driver of operating leverage, with improved shipping efficiency and reduced per-unit delivery costs in Brazil and record-low fulfillment costs in Mexico, indicating a shift towards profitability [1][10] Logistics Efficiency - Structural efficiency gains are being realized through robotics deployment and optimized warehouse workflows, which enhance productivity and lower long-term operating costs [2] - The logistics network successfully managed a 28% year-over-year increase in shipments in Q3 without service disruptions, showcasing improved capacity utilization typical of scaled platforms [2][10] Delivery Speed and Order Density - Faster delivery speeds, including greater penetration of same- and next-day shipping, are enhancing conversion rates and buyer engagement, which in turn increases order density [3] - Rising transaction volumes allow fixed logistics costs to be spread over a larger base, while companywide expenses become progressively diluted [3] Future Outlook - The logistics investments are entering a return phase, with previous margin pressures now generating structural efficiency gains; sustained order growth could establish the delivery network as a long-term competitive advantage [4] - The Zacks Consensus Estimate projects 2026 revenues of $37.27 billion, reflecting approximately 30% year-over-year growth [4] Competitive Landscape - MercadoLibre faces increasing competitive pressure in logistics from Sea Limited and JD.com, both of which are enhancing their logistics capabilities [5] - Sea Limited is building a localized delivery network with SPX Express, improving customer adoption and seller loyalty through fast and low-cost shipping [6] - JD.com is applying pressure with its fully integrated supply-chain network, offering reliable service and competitive pricing, thus emerging as a premium logistics competitor [7] Share Price and Valuation - MercadoLibre's shares have declined 15.9% over the past six months, underperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector [8] - The current forward 12-month price-to-earnings (P/E) ratio for MercadoLibre is 31.42X, which is higher than the industry average of 21.06X, indicating that shares may be overvalued [12] - The Zacks Consensus Estimate for 2026 earnings is $59.48 per share, reflecting a 49.45% year-over-year increase [15]

Core Viewpoint - The Zacks Transportation - Shipping industry is experiencing growth due to strategic diversification, digitalization, environmental compliance, and low fuel costs [1][2]. Industry Overview - The industry focuses on liquefied natural gas and crude oil marine transportation services under long-term contracts, primarily dealing with crude oil and oil products globally [2]. - The shift in e-commerce due to COVID-19 has led to increased reliance on third-party logistics providers, positively impacting the industry as economic activities resume [2]. Key Trends - **Digitalization and AI Adoption**: Enhancements in efficiency and decision-making through digitalization and AI are reducing operational costs and emissions, improving cargo visibility, and streamlining processes [3]. - **Increased Focus on Green Transition**: Adoption of alternative fuels and sustainable practices is driving technological progress and operational efficiency, while also improving access to green financing [4]. - **Low Oil Prices**: A decline in oil prices, which fell 7% during the October-December period, is benefiting the bottom line of industry participants, particularly oil tanker companies [5]. Challenges - **Supply-Demand Imbalance**: A persistent imbalance is compressing freight rates and weakening profitability due to excess vessel capacity and fluctuating cargo volumes [6]. Industry Performance - The Zacks Transportation-Shipping industry ranks 60 out of 243 Zacks industries, indicating strong near-term prospects [8]. - The industry has outperformed the S&P 500 and broader sector, gaining 32.9% over the past year compared to the S&P 500's 14.1% increase [10]. Valuation - The industry is currently trading at a forward P/E of 14.28X, below the S&P 500's 22.52X and the sector's 14.78X [13]. Stock Recommendations - **Seanergy Maritime (SHIP)**: Strong performance in the Capesize market with a Zacks Rank 1 and an average earnings beat of 76.4% over the past four quarters [17]. - **ZIM Integrated Shipping**: Fleet expansion initiatives and a Zacks Rank 2, with a 10% share price increase over the past year [20]. - **Genco Shipping & Trading (GNK)**: Strong balance sheet and modernization efforts, with a 36% stock gain over the past six months and a significant upward revision in earnings estimates [23].