Core Concept - The article discusses the concept of "wide moats," which refers to companies with sustainable competitive advantages that protect them from rivals, leading to long-term profitability [1][3]. Group 1: Characteristics of Wide-Moat Companies - Wide-moat companies benefit from strong brand recognition, network effects, high customer switching costs, regulatory hurdles, and economies of scale, creating significant challenges for competitors [3]. - These companies typically enjoy solid pricing power, stable profit margins, and the ability to reinvest in their businesses, reinforcing their competitive edge [3][4]. Group 2: Investment Appeal - Investing in wide-moat companies is attractive due to their ability to deliver steady, long-term returns, especially during economic downturns [4][5]. - These firms produce consistent cash flows and provide shareholder value through dividends and stock price growth, making them appealing for long-term wealth building [5]. Group 3: Company Examples - **Lam Research Corporation (LRCX)**: Holds a leadership position in wafer fabrication equipment, benefiting from long-term customer relationships and significant capital requirements in the semiconductor industry [7]. The company is poised for growth due to increasing demand for memory chips driven by AI and other advanced technologies [8][9]. - **NVIDIA Corporation (NVDA)**: A leader in GPUs and AI, NVIDIA maintains a technological moat through substantial R&D investments and a strong software ecosystem, which enhances customer retention [10]. The company is expanding its market presence in enterprise AI and data centers, driven by increasing demand for cloud services [11][12]. - **ASML Holding N.V. (ASML)**: A critical supplier in the semiconductor industry, ASML has a near-monopoly on extreme ultraviolet lithography, essential for producing advanced chips [14]. The company's High-NA EUV technology is expected to drive sustained demand as chipmakers produce smaller, more powerful chips [15][16]. - **Moody's Corporation (MCO)**: A leader in credit ratings and analytics, Moody's benefits from regulatory reliance on its ratings and a strong reputation, creating high barriers for new entrants [17]. The company is pursuing growth through strategic acquisitions and diversifying into professional services and enterprise risk solutions [18][19].

Industry Overview - The artificial intelligence (AI) sector, bolstered by the rapid growth of cloud computing and data centers, is experiencing a robust demand scenario, particularly for AI-powered data center capacity to manage and store vast amounts of data [1] - The "magnificent 7" stocks are set to invest $650 billion in 2026 for AI infrastructure development, representing a significant 71.1% year-over-year increase in capital spending on the AI ecosystem [2] Company Insights Amphenol Corp. (APH) - Amphenol holds a Zacks Rank 2 and benefits from a diversified business model, commanding an estimated 33% market share in AI-powered data center interconnects [7] - The company is experiencing triple-digit organic growth in its IT datacom segment, driven by high-speed and power interconnect products [8] - Amphenol's expected revenue and earnings growth rates for the current year are 34.9% and 29.3%, respectively, with a 1.9% improvement in the earnings consensus estimate over the last 30 days [12] Western Digital Corp. (WDC) - Western Digital, with a Zacks Rank 1, is witnessing strong demand for high-capacity hard disk drives (HDD) amid intensified cloud and AI demand [13] - The company is collaborating closely with hyperscale customers to deliver reliable, high-capacity storage solutions, with an expected revenue growth rate of -6.3% and earnings growth rate of 81.7% for the current year [16] Vertiv Holdings Co. (VRT) - Vertiv, holding a Zacks Rank 2, benefits from a diverse product portfolio and is strategically expanding capacity to support AI-enabled pipelines [17] - The company has a partnership with NVIDIA to co-develop an 800-volt DC power architecture, ensuring its infrastructure solutions remain relevant as power requirements scale [19] - Vertiv's expected revenue and earnings growth rates for the current year are 34% and 46.9%, respectively, with a 15.3% improvement in the earnings consensus estimate over the last 30 days [20] Lumentum Holdings Inc. (LITE) - Lumentum, with a Zacks Rank 1, designs and manufactures optical technologies essential for AI and cloud computing, experiencing significant revenue growth driven by demand for AI infrastructure connectivity solutions [21][22] - The company has a strong collaboration with NVIDIA for developing silicon photonics, positioning it as a key supplier to hyperscale customers [23] - Lumentum's expected revenue and earnings growth rates for the current year are 76.7% and over 100%, respectively, with a 34.6% improvement in the earnings consensus estimate over the last 30 days [24] EMCOR Group Inc. (EME) - EMCOR, holding a Zacks Rank 2, is a leading provider of critical infrastructure to AI-powered data centers, focusing on electrical infrastructure and cooling systems [25] - The company is gaining traction in the data center construction market, which is contributing to its expanding remaining performance obligations (RPOs) [26] - EMCOR's expected revenue and earnings growth rates for the current year are 5.4% and 8.6%, respectively, with a slight improvement in the earnings consensus estimate over the last 30 days [28]

Core Insights - Shake Shack Inc. (SHAK) is set to report its fourth-quarter 2025 financial results on February 26, with earnings expected to be 36 cents per share, reflecting a 38.5% year-over-year increase [2][4] - Revenue estimates for the quarter are projected at $402.4 million, indicating a 22.4% growth compared to the previous year [2][7] - The company has experienced downward revisions in earnings estimates by 4 cents over the past 60 days [2] Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter 2025 earnings is 36 cents per share, with revenues expected to reach $402.4 million [2][7] - Preliminary results suggest revenues of $400.5 million, impacted by weather-related disruptions, particularly in the Northeast [4] - Same-Shack sales are anticipated to increase by 2.1% during the quarter [4][7] Growth Drivers - Shake Shack's performance is likely to benefit from positive traffic trends, menu innovation, and value-oriented digital promotions [3] - The company has been investing in digital transformation, with significant contributions from kiosks and digital ordering channels to comparable sales growth [3] - Increased media investments and brand visibility initiatives are expected to enhance customer engagement [3] Profitability Outlook - The company is projected to maintain resilient margins, with restaurant-level profit expected in the mid-22% range [5] - Adjusted EBITDA for the full year 2025 is estimated to be between $208 million and $212 million, indicating improved cost leverage and balanced growth [5] - Unit expansion remains a key growth catalyst, with a meaningful number of company-operated and licensed Shacks added during the year [5] Earnings Prediction Model - The Zacks model indicates that Shake Shack is unlikely to beat earnings estimates this quarter, with an Earnings ESP of -2.98% and a Zacks Rank of 5 (Strong Sell) [6]

Core Insights - Willdan Group, Inc. (WLDN) is set to report its fourth-quarter fiscal 2025 results on February 26, 2026, after market close [1] Financial Performance - In the last reported quarter, Willdan achieved record performance with contract revenue increasing by 15% year over year to $182 million and net revenue rising by 26% year over year to $95 million, exceeding the Zacks Consensus Estimate by 11.5% [2] - Gross profit grew by 30% year over year to $67.1 million, while adjusted EBITDA surged by 53% year over year to $23.1 million, achieving a margin of 24% of net revenue [2] - Adjusted EPS increased by 65.8% year over year to $1.21, surpassing the consensus estimate by 49.4% [2][3] Earnings Estimates - The Zacks Consensus Estimate for the fourth-quarter EPS remains unchanged at 79 cents, indicating a 5.3% growth from the year-ago reported EPS of 75 cents [4] - The consensus revenue estimate for the fourth quarter is $87.5 million, suggesting a 39.3% year-over-year decline [4] - For 2026, revenues are expected to increase by 4.8% year over year, with EPS projected to grow by 9.6% [5] Market Position and Performance - WLDN has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 58.1% [3] - The stock has rallied 19.4% over the past three months, outperforming key peers and the broader Zacks Business - Services industry [19][20] Key Growth Drivers - The strength of Willdan's Energy segment, which constitutes approximately 85% of total revenue, is expected to support Q4 results despite anticipated revenue decline [9] - Recent contract wins in energy and infrastructure, along with the APG acquisition, are anticipated to contribute positively to revenues [10] - Utility programs and government work continue to provide recurring revenue visibility, supporting steady demand [11] Profitability Outlook - Management has guided for full-year 2025 adjusted EBITDA of $77-$78 million and net revenues of $360-$365 million, indicating continued margin discipline [13] - Operating leverage from revenue growth and effective cost control are expected to drive margin expansion [14] - However, integration costs from acquisitions and ongoing investments may temper margin expansion [15] Valuation and Investment Stance - WLDN stock is currently trading at a premium valuation compared to its industry [23] - The near-term outlook appears balanced, with recent share price increases suggesting that much of the optimism is already priced in, leading to a Hold stance for now [24]

Core Insights - Roblox Corporation (RBLX) reported a remarkable fourth quarter with bookings increasing by 63% year over year to $2.2 billion, indicating a potential new phase of sustainable growth for the platform [1][4] Group 1: Performance Metrics - Daily active users rose by 69% year over year, while total engagement hours surged by 88%, reflecting significantly increased user activity on the platform [2][11] - Bookings from the Asia-Pacific (APAC) region nearly doubled, with notable growth in countries like Japan, India, and Indonesia, showcasing broad geographic diversification [2][11] Group 2: User Demographics and Engagement - The 18-plus user segment grew over 50% year over year and monetizes approximately 40% better than younger users, indicating a shift towards older demographics [3][11] - Advancements in discovery, AI-driven personalization, and expanded genre offerings are expected to enhance user engagement and monetization over time [3] Group 3: Competitive Landscape - Meta Platforms (META) is a significant competitor, focusing on metaverse-related products and leveraging its vast user base across Facebook, Instagram, and Oculus to enhance engagement [6] - Electronic Arts (EA) competes for user engagement through its popular franchises like EA Sports and The Sims, targeting similar demographics as Roblox [7][8] Group 4: Financial Metrics and Valuation - Roblox's stock has decreased by 50.4% over the past six months, compared to a 26.1% decline in the industry [9] - The stock is currently trading at a forward price-to-sales (P/S) multiple of 4.72X, significantly above the industry average of 2.16X [12] - The Zacks Consensus Estimate for Roblox's 2026 loss per share has improved to $1.61 from $1.76 over the past month [15]

Core Insights - Rigetti Computing (RGTI) is set to release its fourth-quarter and full-year 2025 results on March 4, 2026, which is anticipated to be a crucial update for investors assessing the company's recent commercial achievements and technical progress [1][9] Financial Performance - In the third quarter, RGTI's revenue fell by 18% year-over-year to $1.9 million, with a significant reduction in gross margin to 21% due to contract mix and pricing variability [1][2] - The company has secured $5.7 million in Novera system purchase orders and a $5.8 million AFRL contract, which are expected to positively impact fourth-quarter revenue [2] - The Zacks Consensus Estimate for Rigetti's 2026 earnings suggests a substantial 74.3% improvement compared to the previous year [12] Strategic Developments - Rigetti has revised the timeline for the general availability of its 108-qubit quantum computing system, Cepheus-1-108Q, now aiming for availability by the end of Q1 2026 [3] - Investors should monitor updates regarding DARPA Phase B engagement and developments related to NVIDIA's NVQLink hybrid computing ecosystem [4] Market Position and Valuation - Rigetti's shares have increased by 7.4% over the last six months, contrasting with an 18.2% decline in the industry [8] - The company currently has a price-to-book ratio of 14.13, which is above the industry average, and carries a Value Score of F [11]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach is to invest in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Constellium (CSTM) Stock Analysis - Constellium (CSTM) has shown a price increase of 10.9% over the past four weeks, indicating growing investor interest [3] - CSTM has gained 51.3% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.51, suggesting it moves 51% higher than the market in either direction, indicating fast-paced momentum [4] - CSTM has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - CSTM is trading at a Price-to-Sales ratio of 0.41, indicating it is reasonably valued at 41 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides CSTM, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Viewpoint - Palantir Technologies Inc. (PLTR) is experiencing a price downturn despite strong earnings and operational performance, currently trading at a 34.8% discount from its all-time high, presenting a potential investment opportunity due to significant short-term price upside potential [1]. Financial Performance - Government revenues increased by 60.4% year over year to $730 million, while commercial revenues surged by 81.8% annually to $677 million, with a total customer count of 954 as of December 31 [4]. - The company is projected to achieve first-quarter revenues of $1.53 billion, indicating an 8.5% sequential growth, and expects full-year revenues of approximately $7.19 billion, reflecting a 61% year-over-year growth [12]. Business Model and Strategy - Palantir's core customer base includes large government and corporate clients seeking tailored AI/ML services, contributing to a 21.3% compound annual growth rate (CAGR) from 2020 to 2024 [5]. - The launch of the Artificial Intelligence Platform (AIP) in 2023 has accelerated growth in the commercial sector, allowing clients to analyze data effectively and adapt to business goals [6][8]. - AIP provides access to various large language models (LLMs), enabling organizations to transform data into actionable insights, reducing dependency on government contracts [7]. AI Integration and Market Position - Palantir's AI strategy integrates its Foundry and Gotham platforms, promoting AI adoption across government and commercial sectors, particularly in data-intensive industries like defense, healthcare, and finance [9][10]. - The company is involved in significant defense initiatives, such as the Department of Defense's Open DAGIR project, enhancing military operations through AI solutions [10]. Customer Acquisition and Growth - AIP boot camps have successfully engaged over 1,000 companies, showcasing the platform's capabilities and facilitating customer acquisition across various sectors [11]. - The modular sales approach allows clients to purchase specific product components, lowering entry barriers and expanding the U.S. commercial customer base [14][15]. Future Outlook - The Zacks Consensus Estimate for 2026 indicates revenues of $7.22 billion and earnings per share of $1.34, representing year-over-year increases of 61.3% and 78.7%, respectively [16]. - For 2027, revenues are expected to reach $10.11 billion, with earnings per share projected at $1.89, indicating a 40% year-over-year growth [17]. - Long-term growth potential is strong, with earnings per share growth estimated at 49.5% compared to 16.3% for the S&P 500 [18]. Price Target and Investment Thesis - The short-term average price target for PLTR suggests a potential increase of 48.2% from the last closing price of $135.24, with a maximum upside of 92.3% and a downside of 33.3% [19]. - Palantir holds a Zacks Rank 2 (Buy), indicating confidence in its ability to capitalize on the AI boom through robust execution and a leading product portfolio [20].

Core Insights - Innodata Inc. (INOD) is set to release its fourth-quarter 2025 results on February 26, 2026, after market close [1] Financial Performance - Innodata reported a record third-quarter 2025, with adjusted earnings per share (EPS) of 24 cents, exceeding the Zacks Consensus Estimate by 71.4%. This is a decrease from the adjusted EPS of 51 cents in the same quarter last year [2] - Revenues for the third quarter reached $62.6 million, surpassing the consensus estimate by 4.6% and reflecting a year-over-year growth of 19.8% [2] - Adjusted EBITDA increased to $16.2 million from $13.9 million a year ago, indicating operational leverage [2] - The company maintains guidance for 45% or more year-over-year organic revenue growth in 2025 [2] Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter EPS remains unchanged at 21 cents, indicating a 32.3% decline from the year-ago EPS of 31 cents. Revenue estimates for the quarter are pegged at $69.5 million, suggesting a 17.4% year-over-year growth [5] - For 2026, revenues are expected to increase by 25.9%, with EPS projected to grow by 27.8% [6] Market Dynamics - Fourth-quarter revenues are likely supported by ongoing expansion with large technology customers and strong demand for generative AI data engineering services. The company has highlighted significant deal momentum [8] - Anticipated contracts related to high-quality pre-training data could represent approximately $68 million in potential revenue across multiple customers, with some scaling expected through 2026 [9] - The launch of Innodata Federal and engagement with a new high-profile customer may contribute to early mobilization revenues in the fourth quarter [10] Profitability Factors - Scale benefits from expanding engagements with big tech and higher-value services are expected to support gross margin dynamics [12] - Investments in new capabilities, including federal expansion and advanced model safety offerings, may pressure selling and administrative costs in the near term [13] Stock Performance - INOD stock has gained 18.5% over the past six months, outperforming some industry peers but underperforming the Zacks Engineering - R and D Services industry [16] - Compared to competitors like Cognizant Technology Solutions and Infosys, INOD has shown stronger price resilience [17] - The stock is currently trading at a premium forward P/E compared to its industry [20] Investment Outlook - Despite solid operating momentum and strong organic growth expectations, the fourth-quarter EPS is projected to decline year over year, and the Earnings ESP stands at 0.00%, indicating no clear signal for another earnings beat [22]

Industry Overview - Natural gas prices are stabilizing around $3.00 per MMBtu, with a recent close at approximately $3.05, influenced by a 144 Bcf storage withdrawal that was slightly below expectations [1] - Inventories are significantly below the five-year average and last year's levels, providing stronger support for prices within the $3.00-$3.15 range [1] LNG Export Impact - LNG export facilities are operating near full capacity, which is reshaping U.S. gas pricing dynamics and reducing reliance on weather fluctuations [3] - The Golden Pass LNG project, backed by QatarEnergy and ExxonMobil, is expected to produce around 18 million tons of LNG annually, nearing first production despite construction delays [4] - A new pipeline will transport up to 1 Bcf per day from the Permian Basin to the terminal, expected to begin initial volumes in early March, further supporting price stability [5] Market Dynamics - The gas market is transitioning from being weather-driven to infrastructure-driven, with overall U.S. consumption dropping by over 15 Bcf per day as temperatures warmed [6] - Rising LNG capacity and steady exports to Mexico suggest that prices may trade within a tighter and more stable range, with storage levels below average but manageable [7] Investment Opportunities - Companies like Expand Energy (EXE), Cheniere Energy (LNG), and Excelerate Energy (EE) are positioned to benefit from the evolving export-centered pricing regime [2][10] - Expand Energy has become the largest natural gas producer in the U.S. and is well-positioned to capitalize on rising demand from LNG exports and electrification trends [9] - Cheniere Energy has a competitive edge with its regulatory approval for LNG exports and strong operational performance, indicating substantial growth potential [11][12] - Excelerate Energy, focusing on LNG infrastructure and services, accounts for about 20% of the global FSRU fleet and is expanding into LNG-to-power and gas distribution [13]