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Is Quest Diagnostics Stock a Right Pick for Your Portfolio Now?
ZACKS· 2025-09-22 14:31
Core Insights - Quest Diagnostics focuses on meeting the evolving needs of physicians, hospitals, and consumers through strategic acquisitions and advanced diagnostics to enhance patient care and drive growth [1][3][4] - The company has experienced an 18.8% stock rally over the past year, outperforming the industry and closely matching the S&P 500's performance [2] - Quest Diagnostics has a market capitalization of $20.53 billion and an earnings yield of 5.3%, surpassing the industry's yield of 4.9% [2] Growth Momentum - The physician channel grew by 20% in Q2 2025, driven by acquisitions and high-single-digit organic gains, reflecting increased tests per requisition and strong commercial execution [3] - The hospital channel is adapting to market challenges by providing strategic options for accessing diagnostic innovations without the burden of running a lab [3][8] - The consumer-testing channel, QuestHealth.com, is expanding its offerings and partnerships with wellness brands [4] Acquisition Strategy - Quest Diagnostics completed eight acquisitions in 2024, including LifeLabs and select lab assets from Allina Health, enhancing its market presence [5][6] - The acquisition of PathAI Diagnostics aims to increase the adoption of AI and digital pathology for improved cancer diagnosis [5] Advanced Diagnostics Potential - The company focuses on five clinical areas: advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health, achieving double-digit revenue growth in several areas [10][11] - New tests, such as the AD-Detect blood test for Alzheimer's and the AB 42/40 and p-tau-217 panel, are being launched to support growth in brain health and oncology [10][11] Financial Concerns - As of Q2 2025, long-term debt stood at $5.17 billion, with cash and cash equivalents at $319 million, raising concerns about interest payment capacity [12] - The times interest ratio declined to 6.1%, indicating potential challenges in meeting interest obligations [12] Macroeconomic Challenges - The evolving U.S. healthcare system poses risks, including reduced utilization and reimbursement from government payers, which may impact Quest Diagnostics' operations [13] - Industry consolidation has led to larger insurance plans with significant bargaining power, complicating fee negotiations for Quest Diagnostics [13] Earnings Estimates - The Zacks Consensus Estimate for Quest Diagnostics' 2025 earnings per share has increased by 0.4% to $9.74, with revenue estimates at $10.85 billion, indicating a 9.9% growth from the previous year [14]
Is the Options Market Predicting a Spike in Perdoceo Education Stock?
ZACKS· 2025-09-22 14:31
Group 1 - Investors in Perdoceo Education Corporation (PRDO) should monitor the stock due to significant activity in the options market, particularly the Oct 17, 2025 $17.50 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Perdoceo Education's stock price, possibly due to an upcoming event [2] - Perdoceo Education currently holds a Zacks Rank 3 (Hold) in the Schools industry, which is in the top 14% of the Zacks Industry Rank, but no analysts have raised earnings estimates for the current quarter, with one analyst lowering the estimate from 62 cents to 61 cents per share [3] Group 2 - The high implied volatility surrounding Perdoceo Education may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]
Flex Stock Up 75% in 12 Months: Will the Momentum Hold Amid Headwinds?
ZACKS· 2025-09-22 14:31
Key Takeaways Flex has transformed into an end-to-end provider across design, manufacturing and supply services.The company targets $6.5B in data center revenue, with at least 35% growth and 25% of total sales.Recent buys of JetCool and Crown expand Flex's liquid cooling and U.S. power market presence.Flex Ltd. ((FLEX) stock has surged 75% in the past year, outperforming the Zacks Electronics - Miscellaneous Products industry, the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 7. ...
Archrock Inc. (AROC) Is Considered a Good Investment by Brokers: Is That True?
ZACKS· 2025-09-22 14:31
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Archrock Inc. (AROC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Archrock Inc. currently has an averag ...
Should You Invest in Home Depot (HD) Based on Bullish Wall Street Views?
ZACKS· 2025-09-22 14:31
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Home Depot (HD), and suggests that while the average brokerage recommendation (ABR) indicates a positive outlook, it may not be a reliable basis for investment decisions due to potential biases from brokerage firms [1][2][7]. Group 1: Brokerage Recommendations - Home Depot has an average brokerage recommendation (ABR) of 1.66, indicating a consensus between Strong Buy and Buy, with 67.6% of recommendations being Strong Buy and 2.7% being Buy [2]. - The ABR is based on recommendations from 37 brokerage firms, but studies show limited success in using these recommendations to identify stocks with the best price increase potential [2][3]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [3][7]. Group 2: Zacks Rank Comparison - Zacks Rank is a proprietary stock rating tool that categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, which are correlated with near-term stock price movements [5][8]. - The Zacks Rank is more timely and reflects the latest earnings estimates, while the ABR may not be up-to-date [9]. - Home Depot currently holds a Zacks Rank 3 (Hold), indicating a cautious outlook despite the positive ABR [10][11]. Group 3: Investment Implications - The unchanged Zacks Consensus Estimate for Home Depot at $15.03 suggests that analysts have steady views on the company's earnings prospects, which may lead to performance in line with the broader market [10]. - Given the Zacks Rank and the cautious outlook, it may be prudent to be cautious with the Buy-equivalent ABR for Home Depot [11].
Arq, Inc. (ARQ) Soars 5.1%: Is Further Upside Left in the Stock?
ZACKS· 2025-09-22 14:25
Company Overview - Arq, Inc. (ARQ) shares increased by 5.1% to $7.36 in the last trading session, contrasting with a 1.7% loss over the past four weeks [1] - The price increase is attributed to improved contract terms, including growth in average selling prices and a surge in volumes [1] Earnings Expectations - Arq, Inc. is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 50% [2] - Revenue is anticipated to be $36.56 million, which is a 5.2% increase from the same quarter last year [2] Stock Performance Insights - The consensus EPS estimate for Arq, Inc. has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - Arq, Inc. operates within the Zacks Waste Removal Services industry, where Zurn Water (ZWS) is another player [3] - Zurn Water's consensus EPS estimate is $0.4, representing a year-over-year increase of 17.7%, and it holds a Zacks Rank of 1 (Strong Buy) [4]
HOLX vs. TMO: Which Diagnostic Giant Is the Stronger Buy Today?
ZACKS· 2025-09-22 14:25
Core Insights - Hologic and Thermo Fisher Scientific are key players in the diagnostics market, each with distinct strengths and market focuses [1][2] Hologic Overview - Hologic specializes in molecular diagnostic assays for infectious diseases, particularly in women's health, with a market cap of $14.75 billion [1] - The company has seen strong growth in its Molecular Diagnostics segment, particularly with the BV, CV/TV assay, which has become its second-largest test globally since its launch in 2019 [3] - Hologic's Breast Health business is recovering, with expectations to return to growth by Q4 of fiscal 2025, aided by new leadership and innovations [4] - The company has a strong GYN Surgical portfolio and has expanded its fibroid treatment offerings through the acquisition of Gynesonics [5] - Hologic maintains a solid financial position with $1.88 billion in cash and short-term investments and a net leverage ratio of 0.6 [6] - The company has raised its full-year revenue guidance to $1.03-$1.04 billion and adjusted EPS to $1.09-$1.12, despite facing cost pressures from tariffs [7] Thermo Fisher Overview - Thermo Fisher, valued at $181.10 billion, offers a wide range of diagnostic products and services across various sectors, including healthcare and food safety [2] - The company is experiencing growth in its bioproduction and pharma services, supported by significant innovations and product launches [8] - Thermo Fisher's capital deployment strategy includes strategic acquisitions and shareholder returns, with recent acquisitions aimed at enhancing its bioproduction capabilities [11] - The company has projected revenues between $43.6 and $44.2 billion and adjusted EPS of $22.22-$22.84 for the full year, both raised from prior estimates [13] Performance Comparison - Over the last six months, Hologic's stock has increased by 4.2%, while Thermo Fisher's stock has decreased by 7.7% [9][16] - Hologic's shares are trading at a forward five-year P/E of 14.41X, compared to Thermo Fisher's P/E of 20.12X, indicating a more favorable valuation for Hologic [17] - Analysts project a year-over-year EPS growth of 3.7% for Hologic, while Thermo Fisher's EPS is expected to improve by 3% [19][21] Investment Outlook - Both companies exhibit strong fundamentals and financial stability, with Hologic showing resilience in its growth areas and Thermo Fisher focusing on innovation and market expansion [22]
Veritone (VERI) Soars 28.0%: Is Further Upside Left in the Stock?
ZACKS· 2025-09-22 14:25
Veritone, Inc. (VERI) shares ended the last trading session 28% higher at $5.35. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 83.3% gain over the past four weeks.The stock recorded this price increase as the company benefits from 45% year-over-year growth in its organic revenues in the second quarter of 2025 and expects to continue throughout the year.This company is expected to post quarterly loss of $0.11 per ...
Heritage Insurance Holdings, Inc. (HRTG) Soars to 52-Week High, Time to Cash Out?
ZACKS· 2025-09-22 14:25
Company Performance - Heritage Insurance (HRTG) shares have increased by 25.4% over the past month, reaching a new 52-week high of $29.1, and have gained 134.7% since the beginning of the year [1] - The company has consistently beaten earnings estimates, reporting EPS of $1.55 against a consensus estimate of $1.03 in its last earnings report [2] Financial Projections - For the current fiscal year, Heritage Insurance is expected to post earnings of $4.1 per share on revenues of $842.24 million, reflecting a 103.98% change in EPS and a 3.09% change in revenues [3] - For the next fiscal year, the expected earnings are $4.15 per share on revenues of $899.54 million, indicating a year-over-year change of 1.22% in EPS and 6.8% in revenues [3] Valuation Metrics - Heritage Insurance has a Value Score of A, with Growth and Momentum Scores of B and D respectively, resulting in a combined VGM Score of A [6] - The stock trades at 6.9X current fiscal year EPS estimates, below the peer industry average of 11.4X, and at a trailing cash flow basis of 12.5X, matching the peer group's average [7] Zacks Rank - Heritage Insurance holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, making it a favorable option for investors [8][9] Industry Comparison - The Insurance - Property and Casualty industry is performing well, with Heritage Insurance and HCI Group, Inc. being notable peers, where HCI has a Zacks Rank of 2 (Buy) and strong earnings expectations [10][12]
The Goldman Sachs Group, Inc. (GS) Soars to 52-Week High, Time to Cash Out?
ZACKS· 2025-09-22 14:25
Have you been paying attention to shares of Goldman Sachs (GS) ? Shares have been on the move with the stock up 8.5% over the past month. The stock hit a new 52-week high of $809.66 in the previous session. Goldman has gained 40.6% since the start of the year compared to the 14.8% gain for the Zacks Finance sector and the 30.4% return for the Zacks Financial - Investment Bank industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks ...