Investors interested in Financial - Investment Bank stocks are likely familiar with BGC Group (BGC) and Evercore (EVR) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision tr ...

Core Insights - Bristol Myers Squibb (BMY) has received FDA acceptance for the new drug application (NDA) of iberdomide, in combination with daratumumab and dexamethasone, for treating relapsed or refractory multiple myeloma (RRMM) [1][7] - The FDA has granted a priority review for the NDA, with a decision expected on August 17, 2026 [1] - Iberdomide is part of a new class of drugs known as cereblon E3 ligase modulators (CELMoDs), which are under investigation for RRMM treatment [2][8] BMY's Price Performance - Over the past six months, BMY shares have increased by 24.8%, outperforming the industry average rise of 21.4% [3] Iberdomide Development - The NDA filing is based on data from the phase III EXCALIBER-RRMM study, which showed a statistically significant improvement in minimal residual disease (MRD) negativity rates compared to the control arm [4][7] - The study is ongoing, with patients being assessed for progression-free survival [5] Regulatory Designations - Iberdomide has received Breakthrough Therapy designation from the FDA for the treatment of RRMM [2][7] - The review process is part of the FDA's Project Orbis initiative, allowing simultaneous evaluation by regulatory authorities in other countries [8] Strategic Focus - The successful development of iberdomide and other key pipeline candidates is crucial for Bristol Myers as it aims to expand and diversify its portfolio amid challenges from generic competition [9]

Core Insights - Chegg, Inc. is making a significant strategic shift towards the $40 billion global workforce skilling market, splitting its operations into Chegg Skilling for growth and Academic Services for cash flow generation [1] Group 1: Financial Performance - Chegg Skilling revenues increased by 11% year over year in Q4 2025, reaching $17.7 million, while overall revenues declined by 39% year over year in 2025 and 49% in Q4 [2][3] - The company expects to generate meaningful free cash flow in 2026 despite incurring near-term severance expenses, ending the quarter with $85 million in cash and investments [2] Group 2: Market Position and Competition - Chegg is transitioning from academic support services to focus on B2B skilling, competing with platforms like Coursera and Udemy, which have established niches in academic credibility and broad course offerings respectively [4][5][6] - Chegg's transformation is marked by a deeper integration of AI to provide personalized, skills-based learning rather than just academic support [6] Group 3: Stock Performance and Valuation - Chegg's stock has decreased by 45.4% over the past three months, underperforming compared to the Zacks Internet - Software industry, the Zacks Computer and Technology sector, and the S&P 500 Index [7] - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.24, indicating a discount compared to industry peers [9] Group 4: Earnings Estimates - The Zacks Consensus Estimate for Chegg's 2026 bottom line has widened to a loss of 11 cents per share, reflecting a 466.7% year-over-year decline [11]

Core Viewpoint - Franklin FTSE United Kingdom ETF (FLGB) has reached a 52-week high, increasing by 44.54% from its 52-week low of $25.10 per share, indicating strong momentum and potential for further gains [1] Group 1: ETF Overview - FLGB tracks the FTSE UK RIC Capped Index, which is a market-capitalization weighted index representing UK large and mid-cap stocks [2] - The ETF charges an annual fee of 0.09% [2] Group 2: Market Drivers - The FTSE 100, the UK's benchmark index, has reached a record high due to softer domestic inflation data, which has raised expectations for potential interest rate cuts by the Bank of England as early as March [3] Group 3: Performance Outlook - FLGB holds a Zacks ETF Rank of 3 (Hold) and has a positive weighted alpha of 30.89, suggesting the possibility of continued strong performance in the near term [4]

Market Overview - The S&P 500 experienced a decline of approximately 1.3% last week due to AI-related volatility, but showed signs of stabilization with a 0.14% increase on Tuesday [1] - The concentration of the S&P 500 in the information technology sector is about 33%, highlighting concentration risk amid rising anxiety around AI disruption [4] Investor Sentiment - A record share of investors, approximately 35%, believe companies are overspending on AI, marking the largest concern in over two decades [2] - About 25% of investors view an "AI bubble" as a primary tail risk, while 30% cite aggressive AI capital expenditure by large tech firms as a leading credit risk [3] Diversification Strategies - Diversification is essential not only to mitigate technology exposure but also due to broader structural risks such as high U.S. national debt and complex geopolitical issues [5] - ETFs are recommended for diversification, providing benefits like tax efficiency and a disciplined investment approach [6][11] Investment Approaches - A buy-and-hold strategy is suggested for sustainable long-term returns, helping investors avoid emotional decision-making during market fluctuations [8] - Equal-weighted index funds, such as the S&P 500 Equal Weight Index, have gained 11.76% over the past year and 5.50% year-to-date, offering sector-level diversification [9] ETF Recommendations - Invesco S&P 500 Equal Weight ETF (RSP) has a 60.96% allocation to equities and a dividend yield of 2.47% [10][12] - iShares Core 80/20 Aggressive Allocation ETF (AOA) has 80.44% in equities and a dividend yield of 2.10% [12] - iShares Core 30/70 Conservative Allocation ETF (AOK) has 30.94% in equities and a dividend yield of 3.25% [13] - Multi-Asset Diversified Income Index Fund (MDIV) charges an annual fee of 0.75% and has a dividend yield of 6.10%, with significant exposure to dividend-paying equities and other asset classes [14]

Core Insights - Commercial Metals Company's (CMC) Transform, Advance, Grow (TAG) Program aims to enhance margins, earnings, cash flows, and return on invested capital (ROIC), with an expected annualized EBITDA benefit of $150 million by fiscal 2026 [1][8] Group 1: TAG Program Overview - Launched in 2024, the TAG program focuses on optimizing logistics, reducing input consumption, lowering costs, and improving energy efficiency through over 150 individual projects across all business segments [2] - The program has already led to improvements in melt shops and rolling mills, resulting in higher product volumes while maintaining energy and raw material consumption levels [2] - CMC anticipates significant and lasting transformation in its margin profile from the TAG program, alongside strong market dynamics and effective operational execution [4] Group 2: Performance and Market Position - CMC has experienced success in optimizing scrap, improving yield, and cost mix, maintaining solid momentum in the TAG program during the first fiscal quarter [3] - CMC shares have increased by 51.3% over the past year, outperforming the industry growth of 50.1% and the Zacks Basic Materials sector's return of 47.2% [7] - The Zacks Consensus Estimate for CMC's fiscal 2026 sales is projected at $8.89 billion, reflecting a 13.9% year-over-year increase, with earnings expected to rise by 134.5% to $7.34 per share [11] Group 3: Competitive Landscape - Cleveland-Cliffs Inc. is implementing cost-reduction initiatives, targeting a decrease in steel unit costs by $150 per ton over three years, while Steel Dynamics, Inc. is developing a lower-carbon facility to enhance its product portfolio [5][6] - CMC is currently trading at a forward price/sales ratio of 0.96, compared to the industry's 1.77, indicating a favorable valuation [10]

Core Insights - Invesco Ltd.'s shares have increased by 16.6% over the past three months, outperforming the industry and the S&P 500 Index [1][9] - The company's assets under management (AUM) have shown a compound annual growth rate (CAGR) of 10% from 2020 to 2025, driving fee-based revenues [4][9] - Strategic partnerships and restructuring efforts are aimed at enhancing operational efficiency and expanding market capabilities [5][11] Performance Overview - Invesco's share price has significantly outperformed its peers, with a 16.6% increase compared to BlackRock's 5.3% and AllianceBernstein's 5.9% [1][9] - The company has rebounded in total operating revenues in 2024 and 2025 after a challenging operating environment [6][9] Growth Drivers - The steady growth in AUM is a key factor for revenue generation, with strategic initiatives like partnerships with LGT Capital Partners and MassMutual's Barings to enhance private market capabilities [4][5] - The conversion of the Invesco QQQ Trust into an open-end ETF structure is expected to generate revenues from over $400 billion in AUM [5] Financial Estimates - Zacks Consensus Estimates for Invesco's sales indicate a growth trajectory, with current quarter estimates at $1.25 billion and next year at $5.58 billion, reflecting year-over-year growth of 12.35% [10] - Earnings estimates for 2026 and 2027 have been revised upward, with projections of $2.66 and $3.03 respectively, indicating growth rates of 31% and 13.6% [18][19] Strategic Initiatives - Invesco is executing a broad transformation strategy, including a partnership with CI Global Asset Management to enhance Canadian operations and divesting stakes in certain subsidiaries [11][12] - The company is focusing on a hybrid Alpha investment platform to drive long-term cost savings and operational scalability [11] Global Presence - Invesco has a diversified global footprint, with 31.2% of its client AUM sourced from markets outside the United States, bolstered by the acquisition of Europe-based Source [12] Capital Management - The company maintains solid liquidity, allowing for consistent capital returns to shareholders, including a 2.4% increase in quarterly dividends [13][14] - Invesco has $232.2 million remaining under its share buyback authorization and plans to repurchase $40 million worth of shares in Q1 2026 [14] Challenges - Invesco faces rising operating expenses, with a CAGR of 6.2% over the past five years, primarily due to increased distribution and advisory costs [15] - The company holds $12.4 billion in goodwill and intangible assets, which could pose risks to earnings stability due to potential impairment [16]

Core Insights - Diageo Plc (DEO) is set to release its interim results for the first half of fiscal 2026 on February 25, facing challenges in North America and Asia Pacific, while showing strong performance in Europe, Latin America, and Africa [1][10] Group 1: Performance Overview - Diageo's first-quarter organic net sales were broadly flat despite positive volume growth, indicating regional and category shifts, particularly weakness in Chinese white spirits and softer U.S. spirits demand [2][3] - The company has experienced significant declines in key markets, especially in North America and Greater China, due to soft consumption trends and increased promotional intensity [3][4] - Management has indicated that fiscal 2026 performance will be weighted towards the second half, with expectations of weak organic net sales and operating profit trends in the first half [5][6] Group 2: Regional Performance - The Asia Pacific region has faced the most pressure, particularly in Greater China, where declines in baijiu consumption have negatively impacted performance [4] - Positive trends in India are expected to partially offset weaknesses in the Asia Pacific region [4] - In Europe, strong momentum in Guinness and resilient execution have contributed positively, despite a subdued spirits backdrop [8] - Latin America is benefiting from stabilizing consumer environments in Brazil and Mexico, with positive price/mix trends aiding results [9] Group 3: Market Trends and Valuation - Diageo has been experiencing solid business momentum, strong consumer demand, and market share gains, particularly in the spirits category [7] - The company's shares have risen by 9.1% over the past three months, outperforming the S&P 500 index's growth of 3.2% [10] - Diageo's forward 12-month P/E multiple is 14.88X, which is below the industry average of 16.89X and the S&P 500's average of 22.51X, indicating a relatively cheap valuation compared to the industry [14]

Core Viewpoint - Natural Alternatives International, Inc. (NAII) has experienced significant stock declines following its second-quarter fiscal 2026 results, with a 25.3% drop compared to a 0.3% return for the S&P 500 index during the same period [1] Financial Performance - For the second quarter ended December 31, 2025, the company reported a net loss of $2.6 million, or 42 cents per diluted share, compared to a net loss of $2.2 million, or 37 cents per diluted share, in the prior-year period [2] - Net sales increased by 2% year over year to $34.8 million from $34.1 million, while gross profit improved to $2.5 million, or 7.2% of net sales, from $1.7 million, or 4.9% [2] - For the first six months of fiscal 2026, net sales rose 8% to $72.5 million from $67.2 million, and the net loss narrowed to $2.8 million, or 47 cents per share, from a $4.2 million loss, or 70 cents per share, a year earlier [3] Segment & Channel Performance - Private-label contract manufacturing, the company's core business, increased by 2% in the quarter to $32.8 million, with private-label sales climbing 9% to $68.9 million for the first six months of fiscal 2026 [4] - On a trailing 12-month basis, private-label manufacturing accounted for approximately 94.5% of total revenues, highlighting its importance in the revenue mix [4] - CarnoSyn beta-alanine royalty, licensing, and raw material sales rose 13% year over year in the second quarter to $2 million from $1.8 million, but for the first six months, CarnoSyn revenues declined 15% to $3.7 million from $4.3 million [5] Management Commentary & Operating Environment - The company faces challenges in forecasting demand from clients in multi-level marketing and direct selling channels across various regions, leading to underutilization of manufacturing capacity [7] - Despite improved gross margins and a slight decline in selling, general, and administrative expenses, the company continues to incur operating losses due to fixed manufacturing costs being spread over lower-than-expected volumes [8] - Management noted growth in other sales channels, including large retailers and internet-based direct-to-consumer sales [8] Strategic Initiatives - The company emphasizes the strategic importance of expanding the CarnoSyn patent estate, particularly through TriBsyn, a new formulation aimed at improving bioavailability [9] - There are opportunities for TriBsyn and sustained-release CarnoSyn in wellness and healthy aging markets, especially related to the use of GLP-1 medications [9] Liquidity & Financial Position - As of December 31, 2025, cash and cash equivalents totaled $3.8 million, down from $12.3 million at June 30, 2025, with working capital at $28.7 million [10] - The company had $5.8 million outstanding under its line of credit, with $10 million in available borrowing capacity, and total assets were $153.3 million with stockholders' equity at $67 million [10] Outlook - Management expects sales revenues to increase in the remaining two quarters of fiscal 2026 compared to both prior-year periods and the first half of the current fiscal year, but anticipates a net loss in the second half of fiscal 2026 [11]

Key Takeaways KVUE beat Q4 earnings and revenue estimates, with both metrics rising year over year.Kenvue's margins improved on supply chain productivity and cost discipline despite higher brand spend.KVUE saw double-digit sales growth in EMEA, Asia Pacific and Latin America, offsetting North America softness.Kenvue Inc. (KVUE) posted solid fourth-quarter results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, both metrics increased year over year. Organic growth was driven b ...