Core Insights - Coherent Corp. has entered a new multiyear strategic supply agreement with Apple, enhancing their long-term partnership [1][2] - The agreement focuses on the production of vertical-cavity surface-emitting lasers (VCSELs) essential for features like Face ID on Apple devices [1] - Coherent's manufacturing facility in Sherman, Texas, plays a crucial role in this production [1][2] Company Overview - Coherent is recognized as a global leader in photonics, providing technology that drives innovation across various industries [3] - The company operates in over 20 countries and offers a comprehensive technology stack and resilient supply chain [4] - Coherent's technology is utilized by industry leaders in data centers, communications, and industrial markets [3][4] Strategic Importance - The partnership with Apple is seen as a testament to the strength of their collaboration and commitment to advancing technology [2] - Apple's commitment to invest $600 billion in the U.S. over the next four years highlights the significance of American manufacturing and innovation [2] - Coherent's Sherman facility features advanced manufacturing platforms for next-generation optoelectronic applications [2]

Company Overview - Coherent (COHR) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.93, reflecting a +52.5% change, and revenues of $1.51 billion, up 15.2% from the previous year [3][12] - The company has a positive Earnings ESP of +4.91%, indicating analysts have recently become bullish on its earnings prospects [12] Earnings Expectations - The upcoming earnings report is anticipated to be released on August 13, and the stock may move higher if the actual results exceed expectations [2] - The consensus EPS estimate has been revised 5.54% higher over the last 30 days, reflecting a reassessment by covering analysts [4] Historical Performance - Coherent has a strong earnings surprise history, having beaten consensus EPS estimates in the last four quarters, including a +5.81% surprise in the most recent quarter [13][14] Industry Comparison - Bitfarms Ltd. (BITF), another player in the Zacks Technology Services industry, is expected to report a loss per share of $0.01, with revenues projected at $81.67 million, up 96.6% year-over-year [18] - Bitfarms has an Earnings ESP of +25% and a Zacks Rank of 2, suggesting a high likelihood of beating the consensus EPS estimate [19]

Industry Overview - The Technology Services industry ranks within the top 40% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months [1][8] - The industry is mature with strong demand for services, leading to significant growth in the first half of 2025, which is likely to continue in the second half [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [3][4] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights Coherent Corp. (COHR) - Coherent is positioned in the industrial, communications, electronics, and instrumentation markets, offering diversified applications [7] - Expected revenue and earnings growth rates for the current year are 11.5% and 29.3%, respectively, with a 4.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [9] Vimeo Inc. (VMEO) - Vimeo provides cloud-based video software solutions, including video hosting, management, and analytics [10][11] - Expected revenue and earnings growth rates for the next year are 6.2% and over 100%, respectively, with no change in the Zacks Consensus Estimate for next-year earnings over the last 60 days [12] Skillsoft Corp. (SKIL) - Skillsoft offers personalized learning experiences and operates in two segments: Talent Development Solutions and Global Knowledge [13][14] - Expected revenue and earnings growth rates for the current year are 1.2% and -157%, respectively, with a 54.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [15] Vontier Corp. (VNT) - Vontier focuses on transportation and mobility solutions, operating through three segments: Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions [16] - Expected revenue and earnings growth rates for the current year are 0.1% and 9%, respectively, with a 2.9% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [17] SPX Technologies Inc. (SPXC) - SPX Technologies is a diversified supplier in the HVAC and detection and measurement markets, operating in two segments [18] - Expected revenue and earnings growth rates for the current year are 12.7% and 17%, respectively, with a 3.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [19]

Core Insights - The AI megatrend is not limited to tech stocks but is influencing all sectors, including transportation, telecom, fast food, and finance [2][3] - Investors must evaluate their portfolios through the lens of AI, as it is a critical factor for growth and operational efficiency [3][6] AI Market Trends - President Trump's AI Action Plan aims to reduce regulatory hurdles and invest billions to maintain U.S. leadership in AI development [8] - Estimates suggest that generative AI could contribute between $2.6 trillion and $4.4 trillion annually to the economy, with Goldman Sachs predicting a $7 trillion increase in global GDP over the next decade [15] Company Performance - Palantir (PLTR) has seen an 81% increase in stock value this year, driven by its focus on AI and data analytics [11][10] - Coherent (COHR), recommended as an AI builder stock, has rebounded over 70% since being identified as oversold, with strong growth prospects [13][14] Robotics and Automation - The global population of industrial robots is expected to grow from over 4 million to more than 6 million within three years, indicating a significant trend in automation [17] - Teradyne (TER) is positioned to benefit from AI-driven automation and has already seen over a 10% increase since its recommendation in early July [19]

Core Points - Coherent Corp. will release its financial results for the quarter and fiscal year ended June 30, 2025, on August 13, 2025, after the NYSE closes [1] - A live audio webcast will follow the release at 5:00 p.m. ET to discuss the results [1] - Investors can access the live audio webcast at coherent.com and a replay will be available within 24 hours [2] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [3] - The company was founded in 1971 and operates in over 20 countries, offering a comprehensive technology stack and strong supply chain resilience [4] - Coherent aims to assist customers in overcoming significant technology challenges through its global scale and innovation [4]

Core Viewpoint - Coherent (COHR) is experiencing solid improvement in earnings estimates, leading to positive short-term price momentum, which is expected to continue due to an improving earnings outlook [1][2]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Coherent's earnings prospects, which is likely to influence its stock price positively [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and near-term stock price movements [2]. - Current-quarter earnings estimate is $0.93 per share, showing a year-over-year increase of +52.5% [6]. - The Zacks Consensus Estimate for the current quarter has risen by 5.47% over the last 30 days, with three estimates increasing and no negative revisions [6]. - For the full year, Coherent is expected to earn $3.53 per share, representing a year-over-year change of +111.4% [7]. - The consensus estimate for the current year has increased by 5.68%, with three estimates moving higher and no negative revisions [8]. Zacks Rank and Performance - Coherent has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors [9]. - Stocks with Zacks Rank 1 and 2 have historically outperformed the S&P 500 [9]. - The stock has gained 23.5% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10].

Core Insights - Coherent Corp. has introduced the 56 Gbaud PAM4 transimpedance amplifier (TIA) to its open-market ASIC portfolio, aimed at enhancing optical transceiver performance for 400G and 800G applications [2][3] Product Features - The new CHR1065 product family offers exceptional performance with a 2 µARMS input-referred noise level, which enhances receiver sensitivity for extended optical reach [3] - It features high linearity up to 2.5 mA, ensuring reliable performance across various link budgets [3] - The power efficiency of 227 mW per channel supports dense deployments in power-constrained datacenters, thereby reducing operational costs and cooling requirements [3] - The product is designed for compact DR, FR, and LR module configurations, with a 750 µm optical pitch and advanced monitoring via I2C [3] Market Strategy - Coherent is expanding its fiber-optic ASIC portfolio and plans to release 112 GBaud and 224 GBaud ASICs in the near future [4] - The CHR1065 is currently available as a wire-bondable bare die and has entered volume production, with engineering samples being shipped in 25-piece waffle packs [4] Company Overview - Coherent is recognized as a global leader in photonics, providing technology solutions for datacenter, communications, and industrial markets [5] - Established in 1971, the company operates in over 20 countries and offers a comprehensive technology stack and resilient supply chain to address complex technology challenges [6]

Group 1 - Coherent Corp. (COHR) has reached a significant support level and is considered a good investment pick from a technical perspective due to a "golden cross" formation [1] - The golden cross indicates a potential bullish breakout, characterized by the 50-day simple moving average crossing above the 200-day moving average [1][2] - Over the past four weeks, COHR's stock has gained 15%, and it currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a potential breakout [3] Group 2 - The positive earnings outlook for COHR is reinforced by the fact that no earnings estimates have been cut for the current quarter, with three revisions higher in the past 60 days [3] - The Zacks Consensus Estimate for COHR has also increased, further supporting the bullish case for the stock [3][4] - Investors are encouraged to monitor COHR for potential gains in the near future, given its key technical level and positive earnings estimate revisions [4]

Company Performance - Dave Inc. has gained approximately 133% year-to-date, significantly outperforming the average gain of 0.8% in the Business Services sector [4] - The Zacks Consensus Estimate for Dave Inc.'s full-year earnings has increased by 69.7% over the past quarter, indicating improving analyst sentiment and a positive earnings outlook [3] - Dave Inc. currently holds a Zacks Rank of 1 (Strong Buy), reflecting its strong performance and favorable earnings estimates [3] Industry Context - Dave Inc. is part of the Technology Services industry, which includes 122 individual stocks and currently ranks 74 in the Zacks Industry Rank [6] - The average gain for the Technology Services industry so far this year is 9.6%, indicating that Dave Inc. is performing better than its industry peers [6] - Coherent, another stock in the Business Services sector, has also shown strong performance with a year-to-date increase of 1.4% and a Zacks Rank of 1 (Strong Buy) [4][5]

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COHR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...