Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Harmony Biosciences Holdings, Inc. (HRMY) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - Harmony Biosciences has a historical EPS growth rate of 13.1%, but the projected EPS growth for this year is significantly higher at 26.7%, surpassing the industry average of 13.7% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Harmony Biosciences is currently at 10%, which is notably higher than the industry average of -3.1% [5] - Over the past 3-5 years, the company's annualized cash flow growth rate has been 25.7%, compared to the industry average of 4.4% [6] Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Harmony Biosciences have been revised upward, with the Zacks Consensus Estimate increasing by 7.4% over the past month, indicating a positive trend in earnings estimate revisions [7] Group 5: Investment Positioning - Harmony Biosciences has achieved a Zacks Rank 1 (Strong Buy) and a Growth Score of B, positioning the company well for potential outperformance in the market, making it an attractive option for growth investors [9]

Core Viewpoint - Espey Mfg. & Electronics Corp. has experienced a significant decline in stock price despite reporting increased net income, indicating potential market concerns despite improved profitability metrics. Financial Performance - For Q2 of fiscal 2026, Espey reported net income of $0.99 per share, an increase from $0.71 per share in the same quarter last year [1] - Net sales decreased by 10.8% to $12.1 million from $13.6 million a year earlier, yet net income rose by 47% to $2.8 million compared to $1.9 million in the prior-year quarter [2] - Gross profit increased to $4.2 million from $3.2 million, raising gross margin to 34.7% from 23.2%, attributed to product mix, labor efficiencies, and process improvements [3] Expenses and Income - Selling, general and administrative (SG&A) expenses remained flat at $1.1 million, with increases in ESOP contributions and salaries offset by lower stock option expenses [4] - Other income rose to $0.4 million from $0.3 million, reflecting higher interest earned on cash and investment balances [4] Backlog and Orders - Total backlog increased to $134.7 million as of Dec. 31, 2025, from $120.1 million a year earlier, with $88.8 million tied to three significant customers [5] - New orders in the first half of fiscal 2026 totaled approximately $16.3 million, a decrease from $46.9 million in the prior-year period, with expectations for lower new orders compared to fiscal 2025 [6] Management Outlook - Management anticipates higher revenues in fiscal 2026 compared to fiscal 2025, driven by existing backlog, despite lighter first-half sales [7] - Full-year net income is expected to approximate fiscal 2025 levels [7] Risks and Challenges - The company cited ongoing inflationary pressures, tariffs, and potential supply chain or labor constraints as risks, but does not expect a material impact on fiscal 2026 operating income based on current conditions [8] Liquidity and Capital Position - Working capital was approximately $48.9 million at Dec. 31, 2025, up from $40.2 million a year earlier, with cash and cash equivalents totaling $17.8 million [9] - Operating cash flow for the six months was $2.9 million, down from $6.8 million in the prior-year period, primarily due to inventory builds and working capital changes [9] Other Developments - During the six months ended Dec. 31, 2025, Espey received $2 million in milestone reimbursements under a $3.4 million U.S. Navy funding award for facility and capital equipment upgrades, with completion expected by the end of fiscal 2026 [11]

Core Viewpoint - Investors are encouraged to consider Bank of NT Butterfield & Son (NTB) due to solid improvements in earnings estimates and positive short-term price momentum [1] Earnings Estimates - Analysts show growing optimism regarding the earnings prospects of Bank of NT Butterfield & Son, reflected in upward revisions of earnings estimates, which typically correlate with stock price movements [2] - The current quarter's earnings estimate is projected at $1.39 per share, marking a +6.9% increase from the previous year [7] - For the full year, the earnings estimate stands at $5.94 per share, indicating a year-over-year change of +6.1% [8] Estimate Revisions - Over the past month, the consensus estimate for Bank of NT Butterfield & Son has increased by 8.59%, with one estimate moving higher and no negative revisions [7] - The trend for the current year is also positive, with the consensus estimate rising by 8% due to favorable revisions [9] Zacks Rank - Bank of NT Butterfield & Son currently holds a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates [10] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [10] Stock Performance - Shares of Bank of NT Butterfield & Son have increased by 5.5% over the past four weeks, suggesting investor confidence in its earnings growth prospects [11]

Core Viewpoint - Investors are encouraged to consider Advanced Energy Industries (AEIS) due to improving earnings estimates and positive stock momentum [1] Earnings Estimates - Analysts are optimistic about the earnings prospects of Advanced Energy, leading to higher earnings estimates which are expected to positively impact the stock price [2] - The current quarter's earnings estimate is $1.83 per share, reflecting a 48.8% increase from the previous year, with a 38.08% rise in the Zacks Consensus Estimate over the last 30 days [6] - For the full year, the earnings estimate is projected at $8.20 per share, indicating a year-over-year increase of 27.9%, with a 10.85% increase in the consensus estimate due to four upward revisions [7][8] Zacks Rank - Advanced Energy currently holds a Zacks Rank 1 (Strong Buy), supported by strong agreement among analysts on upward earnings estimate revisions, which historically correlate with stock performance [3][9] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9] Stock Performance - The stock has experienced a 23.8% gain over the past four weeks, attributed to solid estimate revisions and favorable earnings growth prospects [10]

Core Viewpoint - BCB Bancorp (BCBP) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about BCB Bancorp's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - The current-quarter earnings estimate is $0.25 per share, reflecting a remarkable increase of +149.0% compared to the same period last year. Over the last 30 days, the consensus estimate has risen by 21.95% with no negative revisions [5]. - For the full year, the expected earnings are $1.13 per share, representing a year-over-year increase of +234.5%. The consensus estimate has also increased by 13.64% over the past month, with one estimate moving higher and no negative revisions [6][7]. Zacks Rank and Performance - BCB Bancorp currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts regarding the positive earnings revisions. This ranking is associated with a historical average annual return of +25% for Zacks 1 Ranked stocks since 2008 [3][8]. - Stocks with Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500, suggesting that BCB Bancorp is well-positioned for future growth [8]. Recent Stock Performance - BCB Bancorp shares have appreciated by 10.1% over the past four weeks, indicating investor confidence in the company's earnings growth potential driven by favorable estimate revisions [9].

Core Viewpoint - Entegris (ENTG) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10]. Earnings Estimate Revisions - Analysts have become increasingly optimistic about Entegris' earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is projected at $0.75 per share, reflecting a year-over-year increase of +11.9%. Over the last 30 days, the estimate has risen by 13.57% with three upward revisions and no negative changes [6]. - For the full year, the earnings estimate is expected to be $3.41 per share, representing a +24.0% change from the previous year. The consensus estimate has increased by 6.27% over the same period, with three estimates moving higher and no negative revisions [7][8]. Zacks Rank and Performance - Entegris currently holds a Zacks Rank 1 (Strong Buy), which is based on the positive estimate revisions. This ranking system has a strong track record, with Zacks 1 stocks averaging an annual return of +25% since 2008 [3][9]. - Stocks rated Zacks Rank 1 and 2 (Buy) have been shown to significantly outperform the S&P 500 [9]. Recent Stock Performance - Entegris shares have appreciated by 12% over the past four weeks, indicating investor confidence in the company's earnings growth prospects due to the favorable estimate revisions [10].

Core Viewpoint - nLight (LASR) shows a promising earnings outlook, with analysts raising their earnings estimates, which may positively impact the stock price [1][2]. Earnings Estimate Revisions - Current-quarter earnings are projected at $0.11 per share, reflecting a significant increase of +136.7% from the previous year [7]. - For the full year, the earnings estimate stands at $0.21 per share, indicating a change of +132.3% from the year-ago figure [8]. - Over the past 30 days, the Zacks Consensus Estimate for nLight has risen by 10%, with two estimates moving higher and no negative revisions [7][8]. Zacks Rank and Performance - nLight has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts regarding positive earnings revisions [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9]. Stock Performance - The stock has increased by 19% over the past four weeks due to favorable estimate revisions, suggesting potential for further upside [10].

Core Viewpoint - Kennametal (KMT) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook that may continue to drive stock gains [1][10]. Estimate Revisions - Analysts have shown growing optimism regarding Kennametal's earnings prospects, reflected in upward revisions of earnings estimates, which historically correlate with stock price movements [2]. - For the current quarter, Kennametal is expected to earn $0.57 per share, marking a year-over-year increase of +21.3%. The Zacks Consensus Estimate has risen by 15.15% over the last 30 days, with two estimates moving higher and no negative revisions [6]. - For the full year, the expected earnings per share is $2.23, representing a year-over-year change of +66.4%. The consensus estimate has increased by 39.17% due to three upward revisions and no negative changes [7][8]. Zacks Rank - Kennametal has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which is a reliable indicator for potential stock performance [9]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008, suggesting that Kennametal may outperform the market [3]. Stock Performance - The stock has gained 16.4% over the past four weeks, driven by favorable estimate revisions and positive earnings growth prospects, making it a candidate for portfolio addition [10].

Core Viewpoint - Southwest Airlines (LUV) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts raising earnings estimates [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism about Southwest Airlines' earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.51 per share, showing a significant increase of +492.3% compared to the previous year [5]. - Over the last 30 days, four estimates have been raised while one has been lowered, resulting in a 30.94% increase in the Zacks Consensus Estimate for the current quarter [5]. - For the full year, the expected earnings are $4.30 per share, representing a year-over-year increase of +362.4% [6]. - In the past month, seven estimates have been raised with no negative revisions, indicating a positive trend for the current year [6]. Zacks Rank - Southwest Airlines currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts regarding the positive earnings estimate revisions [7]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. Stock Performance - The stock has gained 18.5% over the past four weeks, driven by solid estimate revisions, suggesting potential for further growth [8].

Core Insights - Sterling Infrastructure (STRL) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][2] Earnings Performance - The company has consistently surpassed earnings estimates, achieving an average beat of 21.88% over the last two quarters [2] - In the most recent quarter, Sterling Infrastructure reported earnings of $3.48 per share, exceeding the Zacks Consensus Estimate of $2.79 per share by 24.73% [3] - In the previous quarter, the company reported earnings of $2.69 per share against an expectation of $2.26 per share, resulting in a surprise of 19.03% [3] Earnings Estimates and Predictions - Recent estimates for Sterling Infrastructure have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6][9] - The current Earnings ESP for the company is +2.01%, suggesting analysts are optimistic about its earnings prospects [9] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings surprise, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [7][9] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] - A positive Earnings ESP enhances the predictive power for earnings beats, while a negative value diminishes it, though it does not necessarily indicate an earnings miss [10]