Group 1 - The company emphasizes a conservative approach to value investing, prioritizing the avoidance of losses over chasing good opportunities [1] - Crude Value Insights provides an investment service focused on oil and natural gas, concentrating on cash flow and companies that generate it, which leads to potential value and growth [1] - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] Group 2 - The company offers a two-week free trial for new subscribers, promoting engagement with the oil and gas sector [3]

Core Insights - European Wax Center, Inc. has been recognized in Entrepreneur Magazine's 2025 Top Franchises for Multi-Unit Owners and Best of the Best Franchises lists, highlighting its strong market position and brand reputation [1][2]. Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 locations across 45 states [5]. - The company performed more than 23 million services in the previous year and generated sales of $951 million in fiscal 2024 [5]. Franchise Performance - The brand ranked among the top 20 on Entrepreneur's Top Brands for Multi-Unit Owners list, improving its position from 2024 [2]. - It was also recognized as the top waxing franchise in the Best of the Best Franchises list [2]. Franchisee Support - European Wax Center provides robust support to its franchisees, including comprehensive training, multi-channel marketing, real estate guidance, and guest retention tools [3]. - A significant portion of franchisees are multi-unit owners, with one-fifth operating five or more centers [3]. Brand Values and Innovation - The company emphasizes its core values: caring for each other, doing the right thing, delighting guests, and having fun while being awesome [5]. - European Wax Center has developed an innovative Comfort Wax® to enhance the waxing experience, making it more efficient and less painful [5].

Core Insights - European Wax Center, Inc. (EWCZ) has shown exceptional performance in the beauty market, with a stock increase of 53.7% over the past three months, closely aligning with the Zacks Cosmetics industry's growth of 54.6% [1] - EWCZ has outperformed broader indices, including the S&P 500's rise of 19.1% and the Consumer Staples sector's decline of 1% [1] Performance Comparison - Among major cosmetics and beauty peers, The Estee Lauder Companies Inc. (EL) led with a 58.9% gain, while Coty Inc. (COTY) saw a modest increase of 4%, and Helen of Troy Limited (HELE) experienced a decline of 40.5% [4] Financial Performance - In the first quarter of fiscal 2025, EWCZ reported a 10.3% increase in adjusted net income and a 7.2% rise in adjusted EBITDA, with the adjusted EBITDA margin improving to 36.5% from 33.7% [6] - The company generated strong free cash flow, repurchasing $1.1 million in shares during the first quarter, with cumulative repurchases reaching $41.2 million under a $50 million authorization [11] Growth Strategies - EWCZ is enhancing its digital marketing efforts and franchisee support, introducing new tools to measure advertising effectiveness and improve guest acquisition [7] - The company is focusing on disciplined expansion, targeting underpenetrated areas for new center openings planned for 2026, supported by improved market planning tools and a rigorous site approval process [10] Valuation - EWCZ is currently trading at a forward 12-month P/E ratio of 8.03, significantly below the industry average of 27.58 and the one-year median of 21.27, indicating solid value [12] - The company holds a Value Score of A, suggesting it offers attractive value relative to the market [12] Overall Outlook - EWCZ's recent performance reflects tangible progress in profitability, marketing innovation, and franchisee support, making it a compelling investment option in the beauty sector [14]

Core Viewpoint - European Wax Center, Inc. has appointed Angela Jaskolski as Chief Operating Officer and Kurt Smith as Chief Development Officer, both bringing extensive experience in franchise operations and development to enhance the company's growth strategy [1][4]. Group 1: Executive Appointments - Angela Jaskolski will assume the role of Chief Operating Officer on August 18, 2025, overseeing Franchise Operations, Field Training, Learning and Development, and Industry Engagement [1][2]. - Kurt Smith will take on the position of Chief Development Officer on July 22, 2025, responsible for Business Development, Real Estate, Market Planning, and Franchise Recruitment [1][3]. Group 2: Experience and Background - Ms. Jaskolski has over 20 years of executive-level experience, previously serving as Chief Store Officer at Madison Reed, where she significantly improved average unit volume (AUV) and EBITDA [2][5]. - Mr. Smith has nearly 20 years of global leadership experience, most recently as Vice President and General Manager of Pizza Hut Latin America and the Caribbean, achieving record-high profitability and franchisee engagement [3][6]. Group 3: Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, performing over 23 million services annually [7]. - The company generated sales of $951 million in fiscal 2024 and operates more than 1,000 centers across 45 states [8].

Core Insights - European Wax Center, Inc. (EWCZ) achieved a significant EBITDA improvement in Q1 of fiscal 2025, raising questions about the sustainability of this expansion [1][8] - The company reported adjusted EBITDA of $18.8 million, a 7.2% year-over-year increase, with margins increasing to 36.5% from 33.7% [1][8] Financial Performance - The EBITDA margin expansion was primarily driven by revenue growth, advertising, and the timing of selling, general and administrative expenses, which provided a temporary boost to profitability [2] - EWCZ reaffirmed its full-year adjusted EBITDA guidance of $69 million to $71 million, indicating confidence in its cost structure and marketing strategy [4][8] Marketing Strategy - EWCZ plans to distribute advertising expenses more evenly throughout 2025 to support new guest acquisition and stabilize marketing activities [3] - The company has reported early progress in marketing efficiency with the implementation of a new media strategy [2] Market Position - EWCZ's shares have increased by 61.6% over the past three months, slightly trailing the industry's growth of 62.6% [7] - The company trades at a forward price-to-earnings ratio of 8.15X, significantly lower than the industry average of 28.11X, indicating potential undervaluation [9] Earnings Estimates - The Zacks Consensus Estimate for EWCZ's fiscal 2025 and 2026 earnings implies year-over-year growth of 35.6% and 8.2%, respectively [10] - Current earnings estimates for the upcoming quarters show a positive growth trajectory, with a year-over-year growth estimate of 13.33% for the current quarter [11]

Market Overview - The three major U.S. stock indexes closed lower last week, with the Dow Jones Industrial Average down 1%, the S&P 500 down 0.3%, and the Nasdaq Composite down 0.1% [1] - The market pullback was influenced by renewed U.S. tariff threats, particularly higher levies on Canada and the European Union, raising concerns about economic growth and inflation [2] Earnings Performance - Despite tariff concerns, many investors focused on strong earnings reports from airlines and consumer stocks, indicating a resilient economy [2] - The second-quarter earnings season is critical for assessing the impact of tariffs on corporate profits [3] Zacks Research Performance - Mogo Inc. shares surged 81.8% since being upgraded to Zacks Rank 2 (Buy) on May 8, significantly outperforming the S&P 500's 11.1% increase [4] - ATI Inc. also saw a 32.6% return since its upgrade to Zacks Rank 2 on May 6, compared to the S&P 500's 10.7% increase [5] - A hypothetical portfolio of Zacks Rank 1 (Strong Buy) stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Zacks Recommendations - Amarin Corporation and European Wax Center shares increased by 62.6% and 49.9%, respectively, after being upgraded to Outperform on May 12, against the S&P 500's 10.5% rise [8] - The Zacks Focus List portfolio returned 8.84% in 2025 (through June 30) compared to the S&P 500's +6.21% [12] Portfolio Performance - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [16] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned +5.74% in Q1 2025, compared to the S&P 500's -2.41% [20] - The Zacks Top 10 Stocks portfolio delivered +11.8% year-to-date through June 2025, outperforming the S&P 500's +6.2% [22] Long-term Performance - Since 2004, the Zacks Focus List portfolio has produced an annualized return of +11.60%, compared to +10.22% for the S&P 500 [15] - The Top 10 portfolio has generated a cumulative return of +2,246.8% since 2012, significantly outperforming the S&P 500's +502.3% [24]

Core Insights - European Wax Center, Inc. (EWCZ) is undergoing a significant marketing transformation, showing early signs of improvement in guest trends after implementing a new advertising effectiveness platform in Q1 FY25 [1][7] - The company is focusing on data-driven, digital-first marketing strategies, which include enhanced measurement tools that connect media impressions to in-center behavior, leading to smarter marketing spend and reduced acquisition costs [2][7] - EWCZ's marketing efforts are closely integrated with franchisee operations, utilizing new support tools and communication platforms, with plans for a major ad campaign during the summer to boost traffic recovery [3] Marketing Efficiency Comparison - Coty Inc. (COTY) is shifting its marketing strategy towards high-ROI categories while reducing focus on lower-return segments, facing challenges from inconsistent demand and global channel fragmentation [4] - Helen of Troy Limited (HELE) is simplifying its marketing execution and prioritizing high-return investments, reporting success in influencer-backed launches despite facing tariff disruptions and pricing pressures [5] Financial Performance - EWCZ shares have increased by 64.6% over the past three months, outperforming the industry growth of 50.1% [6] - The company has a forward price-to-earnings ratio of 8.61X, significantly lower than the industry average of 27.7X, indicating potential undervaluation [8] - The Zacks Consensus Estimate predicts EWCZ's earnings growth of 35.6% for fiscal 2025 and 8.2% for fiscal 2026 [9]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The PEG ratio is 1.05, significantly lower than the industry average of 7.79, and it possesses a Growth Score of A [2] Group 2: Intercorp Financial Services (IFS) - This company provides financial products and services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [2] - It has a PEG ratio of 0.36 compared to the industry average of 1.51, with a Growth Score of B [2] Group 3: European Wax Center (EWCZ) - The company operates as a personal care franchise offering wax services and proprietary skincare products [3] - It holds a Zacks Rank of 1 and has seen a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The PEG ratio stands at 0.51, well below the industry average of 3.65, and it has a Growth Score of B [3]

Company Overview - European Wax Center is the largest and fastest-growing provider of out-of-home waxing services[8] - The company performed over 23 million waxing services via 15+ million guest visits in FY 2023[8] - As of January 6, 2024, the company has 1,044 centers[11, 14] - The company is approximately 6x larger than the next largest waxing-focused competitor by center count and ~11x larger by system-wide sales[14] Financial Performance - FY 2023 system-wide sales were $955 million[12] - FY 2023 revenue was $221 million[11] - FY 2023 Adjusted EBITDA margin was 344%[11] - FY 2023 Free Cash Flow was $55 million[12] Growth and Future Outlook - The company anticipates opening 27-32 net new centers in FY 2024[52] - The company expects $930M – $950M system-wide sales and $216M – $221M EWC Revenue in FY2024[52] - The company has a strong multi-year development pipeline with 370+ locations[31, 34]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1][2] - The PEG ratio is 1.02, significantly lower than the industry average of 7.02, and it possesses a Growth Score of A [2] Group 2: Strattec Security (STRT) - The company designs, develops, manufactures, and markets mechanical and electro-mechanical locks for automotive manufacturers in the US, Canada, and Mexico [2] - It also carries a Zacks Rank of 1 and has seen a 19.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2][3] - The PEG ratio stands at 1.30 compared to the industry average of 4.04, with a Growth Score of A [3] Group 3: European Wax Center (EWCZ) - This personal care franchise offers wax services and a range of proprietary skincare products [3] - It holds a Zacks Rank of 1 and has experienced a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3][4] - The PEG ratio is 0.50, much lower than the industry average of 3.26, and it has a Growth Score of B [4]