ING Groep (ING) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.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.The power of a chan ...

Immunocore Holdings PLC Sponsored ADR (IMCR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tra ...

Core Viewpoint - Western Union is expected to report its fourth-quarter 2025 results on February 20, 2026, with earnings estimated at 43 cents per share and revenues of $1.04 billion [1]. Earnings Estimates - The fourth-quarter earnings estimate has seen one downward revision and no upward revisions in the past month, indicating a year-over-year earnings increase of 7.5% [2]. - The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decrease of 2.1% [2]. Annual Projections - For the full year 2025, the Zacks Consensus Estimate for Western Union's revenues is $4.08 billion, reflecting a 3.1% year-over-year decline [3]. - The consensus estimate for 2025 EPS is $1.73, indicating a year-over-year decrease of 0.6% [3]. Earnings Performance History - Western Union has beaten the consensus estimate in two of the last four quarters and missed twice, with an average surprise of 0.6% [3]. Earnings Prediction Model - The company's earnings prediction model suggests a likely earnings beat due to a positive Earnings ESP of +1.51% and a Zacks Rank of 3 (Hold) [4]. Revenue Breakdown - Consumer Services revenues are projected to increase by 23.6%, while Consumer Money Transfer revenues and C2C transactions are expected to decline year-over-year [7]. - The Zacks Consensus Estimate for Consumer Money Transfer revenues indicates a 5.2% year-over-year decrease, while the estimate for C2C transactions shows a 2.5% decline [8]. Geographic Revenue Trends - Revenues are expected to decline year-over-year in North America, the Middle East, Africa, South Asia, East Asia, and Oceania, contributing to lower overall revenues [9]. Operating Income Insights - The consensus mark for operating income from the Consumer Money Transfer segment indicates a 6.4% year-over-year decline, while the model predicts a 7% fall [9]. - Conversely, the Consumer Services segment is expected to see a significant increase in operating income, with estimates suggesting a 163.4% year-over-year surge [10]. Expense Management - The model estimates a 2.4% year-over-year decrease in total operating expenses, attributed to lower service costs and SG&A expenses, which may support bottom-line growth [11].

Core Insights - Air Lease Corporation (AL) reported fourth-quarter 2025 earnings per share of $2.20, exceeding the Zacks Consensus Estimate of $1.46 and reflecting a 64.2% year-over-year increase due to higher revenues, partially offset by increased depreciation expenses [1][9] - Total revenues reached $820.4 million, surpassing the Zacks Consensus Estimate of $752.1 million and growing 15.1% year over year [1][9] Revenue Breakdown - Revenues from the rental of flight equipment increased by 6% year over year to $680 million, driven by fleet growth and an increase in portfolio lease yield [2] - Revenues from aircraft sales, trading activity, and other sources surged by 90% year over year to $141 million, attributed to heightened sales activity, including $132 million in gains from the sale of 23 aircraft during the fourth quarter [2][9] Operating Expenses and Financial Position - Operating expenses rose by 3.7% year over year to $593.9 million [3] - As of December 31, 2025, Air Lease owned 490 aircraft with a net book value of $29.1 billion, with a total fleet size of 753 aircraft, including 218 on order [3] - Cash and cash equivalents at the end of the fourth quarter were $466.41 million, up from $452.21 million in the prior quarter, while debt financing decreased to $19.7 billion from $20.2 billion [4]

Core Insights - Liberty Energy Inc. (LBRT) has achieved a 28.4% increase in share price over the past month, significantly outperforming its sector's gain of 11.7% and sub-industry's rise of 14.7%, indicating strong relative strength and favorable positioning for investors to monitor closely [1] Company Overview - Liberty Energy is a leading North American oilfield services company specializing in hydraulic fracturing, wireline, proppant delivery, sand mining, and natural gas solutions across major North American shale basins [4] - The company operates approximately 40 active frac fleets and focuses on next-generation technologies such as digiFleets and dual-fuel systems to enhance efficiency and reduce emissions [4] - Liberty Energy is expanding into distributed power generation for data centers and industrial customers through Liberty Power Innovations (LPI), positioning itself as an innovation-driven completions leader [4] Growth Factors - Liberty Energy's LPI platform aims for about 3 gigawatts of deployment by 2029, primarily targeting hyperscale data centers, with secured firm reservations including a 1 GW framework agreement and additional 330 MW commitments [6] - The company's gas recip-based power solution is competitive with current grid pricing and is expected to become structurally cheaper over time, providing predictable pricing through long-term Energy Services Agreements (ESAs) [7][8] - Investment in AI-driven automation and technologies has led to a 14% reduction in maintenance costs per unit of work, enhancing operational efficiency and market share defense [9] Financial Strategy - In 2025, Liberty Energy returned $77 million to shareholders through dividends and buybacks while maintaining $281 million in liquidity and moderate net debt [10] - Project-level financing is expected to support much of the power expansion, preserving financial flexibility and limiting corporate leverage [10] Challenges - The company's distributed power strategy requires significant upfront capital in 2026, with meaningful EBITDA contributions not expected until 2027, creating a near-term cash flow gap [11] - Management anticipates a decline in adjusted EBITDA for 2026 due to frac pricing resets and increased development costs, with margin compression expected [12] - Liberty Energy remains exposed to volatile oilfield services pricing, with potential impacts on fleet utilization and margins if oil prices weaken [13] Conclusion - Liberty Energy's strong positioning in North American completions and excitement around its distributed power platform support a positive long-term outlook, despite near-term challenges related to EBITDA decline and exposure to commodity volatility [15][16]

Core Insights - Pagaya Technologies (PGY) achieved GAAP profitability in 2025 after substantial losses in previous years, marking a significant turnaround with positive net income reported in all four quarters of the year [1][2]. Financial Performance - For the full year 2025, Pagaya reported a record net income of $81.4 million, a substantial recovery from a net loss of $401.4 million in 2024 [2][9]. - Total revenue and other income grew by 26.1% year over year, primarily driven by increased fee income from its lending network [2][9]. - Adjusted EBITDA surged by 76.3% year over year, indicating improved operational efficiency and cost management [3][9]. Operational Efficiency - The company benefited from operating leverage, where revenue growth outpaced expense growth, leading to improved margins and a quicker transition to profitability [3][4]. - Enhanced funding diversification and disciplined risk management practices supported the company's profitability, allowing it to maintain capital availability while focusing on profitable growth [4]. Market Reaction - Despite the strong performance in 2025, PGY's stock experienced a decline due to management's softer-than-expected guidance for early 2026, projecting network volume of $2.5-$2.7 billion and total revenues of $315-$335 million for Q1 2026 [5][9]. - The stock has lost 63.4% over the past six months, contrasting with a 25% decline in the industry [8][10]. Peer Comparison - In 2025, Upstart Holdings, Inc. reported a net income of $53.6 million, with total revenues increasing by 64% year over year to $1.04 billion [6]. - Upstart expects total revenues of $1.4 billion for 2026, indicating strong growth prospects in comparison to Pagaya's guidance [7].

Key Takeaways Home Depot reinforces long-term growth with disciplined capital allocation in fiscal 2025.Home Depot invested $900M in Q3 on stores, supply chain and tech, with capex at 2.5% of sales.Home Depot generated $13B in nine-month cash flow and paid out $2.3B in Q3 dividends.The Home Depot, Inc. (HD) continues to reinforce its long-term growth outlook through a disciplined and well-articulated capital allocation framework. Despite navigating a softer demand environment, the company has demonstrated r ...

Core Viewpoint - Quanta Services, Inc. (PWR) is set to report its fourth-quarter 2025 results on February 19, 2026, with a record backlog and raised guidance for 2025 following the third quarter [1] Financial Performance - In the last reported quarter, adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 2.5% and 2.4%, respectively, with year-over-year growth of 22.4% in earnings and 17.6% in revenues [2] - The company reported revenues of $7.63 billion and a record backlog of $39.2 billion, indicating strong demand in the Electric segment [2] - The Zacks Consensus Estimate for fourth-quarter adjusted earnings per share (EPS) has decreased slightly to $3.00, reflecting a 2% increase from the previous year's EPS of $2.94, while revenue estimates are set at $7.28 billion, indicating an 11% year-over-year growth [3] Segment Performance - The Electric Infrastructure Solutions segment, which contributed 80.9% to third-quarter revenues, is expected to be the main growth driver due to ongoing demand for upgrades in transmission, substations, and distribution, as well as renewable energy integration [4] - The Underground Utility and Infrastructure Solutions segment, contributing 19.1% to revenues, may benefit from ongoing infrastructure projects and recent acquisitions, with additional support from technology and healthcare-related markets [5] - Revenue estimates for the Electric Infrastructure Solutions segment are expected to rise by 76% to $6 billion, while the Underground Utility and Infrastructure Solutions segment is projected to increase by 16.7% to $1.37 billion [8] Margin Analysis - Fourth-quarter margins are anticipated to be supported by the Electric Infrastructure Solutions segment's strength, with favorable project mix and operating leverage contributing to profitability [10] - However, margins may face pressure from inflation, supply chain constraints, and project timing variability, which could impact overall profitability [11] - Operating profit in the Electric Infrastructure Solutions segment is expected to grow to $647 million from $445 million year-over-year, while the Underground Utility and Infrastructure Solutions segment's operating profit is projected to increase to $111 million from $42.6 million [12]

Core Insights - Waste Connections, Inc. (WCN) reported fourth-quarter 2025 earnings that slightly exceeded the Zacks Consensus Estimate, with an 11.2% year-over-year increase in earnings and a 5% year-over-year growth in revenues [1][9] - Despite the earnings beat, the stock price fell by 6.6% following the results announcement on February 11, reflecting investor disappointment [1] - Over the past year, WCN shares have decreased by 14%, contrasting with a 3.5% decline in the industry and a 15.3% increase in the Zacks S&P 500 Composite [1] Segment Performance - The Solid Waste Collection segment generated $1.7 billion in revenues, marking a 5.8% year-over-year increase [2] - Revenues from the Solid Waste Disposal and Transfer segment rose by 5.4% year-over-year to $757.1 million, driven by solid core pricing [2] - The Solid Waste Recycling segment experienced a 14.3% decline in revenues, totaling $51.2 million [3] - The E&P Waste Treatment, Recovery and Disposal segment reported revenues of $171.1 million, reflecting a 16.9% year-over-year increase [3] - The Intermodal and Other segment saw revenues of $42.3 million, down 7.9% from the previous year [3] Operating Results - Adjusted EBITDA for the quarter was $731.9 million, an 8% decrease from the prior year, with an adjusted EBITDA margin of 32.4%, down 110 basis points year-over-year [4] - The company recorded an operating loss of $199.1 million, compared to an operating income of $420.8 million in the same quarter last year [4] Balance Sheet & Cash Flow - At the end of the fourth quarter of 2025, Waste Connections had cash and cash equivalents of $46 million, down from $117.6 million in the previous quarter [5] - The long-term debt and notes payable increased to $8.8 billion from $8 billion in the third quarter of 2025 [5] - The company generated $556.9 million in cash from operating activities, with adjusted free cash flow of $175.6 million and capital expenditures totaling $261.1 million [6] - During the quarter, Waste Connections paid out $89.9 million in dividends [6] FY26 Outlook - For the fiscal year 2026, Waste Connections anticipates revenues between $9.9 billion and $9.95 billion, with the Zacks Consensus Estimate at $9.95 billion [7] - Adjusted EBITDA is expected to be in the range of $3.3 billion to $3.325 billion [7] - Waste Connections currently holds a Zacks Rank of 4 (Sell) [7]

Core Insights - Dillard's, Inc. (DDS) is anticipated to experience a year-over-year decline in earnings for the fourth quarter of fiscal 2025, with a revenue estimate of $2.02 billion reflecting a slight growth of 0.16% compared to the previous year, while earnings per share are projected to drop by 26% to $9.98 [1][8]. Financial Performance - In the last reported quarter, Dillard's achieved an earnings surprise of 29.2%, and over the trailing four quarters, the company has averaged a 26.5% beat against the Zacks Consensus Estimate [2]. - The company expects SG&A expenses to rise by 4.8% year-over-year for the fiscal fourth quarter, with the SG&A expense rate projected to increase by 120 basis points to 23.2% [6]. Growth Drivers - Dillard's fourth-quarter results are expected to benefit from growth initiatives and effective execution, particularly in brick-and-mortar stores and e-commerce, which are aimed at retaining existing customers and attracting new ones [3][4]. - The company has been enhancing its customer base through store improvements, better brand partnerships, and trend-focused assortments, which are anticipated to support flat year-over-year comparable-store sales [3][4]. Challenges - The company is facing challenges from a tough retail environment characterized by cautious consumer spending and increased operating expenses due to higher payroll costs and investments in store personnel [5]. - These factors are likely to negatively impact margins and the bottom line for the fiscal fourth quarter, with a predicted 16.1% decline in operating profit and a 190-basis point contraction in operating margin [5][6]. Valuation and Market Performance - Dillard's is currently trading at a forward price-to-earnings ratio of 20.82X, which is above the industry average of 14.71X and its five-year median of 13.14X [8][9]. - Over the past three months, Dillard's shares have increased by 7.6%, compared to a 10.6% growth in the industry [10].