Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. US equities experienced solid returns in 2025, with double-digit gains across all major indices. A copy of the letter can be downloaded here. In 2025, the Conestoga Micro Cap Composite met its purpose of preserving capital during negative market returns and capturing upside during strong market returns. Micro Caps faced significant volatility in 2025. During the course of events, Conestoga Micro Cap Co ...

NEW YORK, Feb. 18, 2026 (GLOBE NEWSWIRE) -- ODDITY Tech Ltd. (“ODDITY”) (NASDAQ: ODD), today announced that it will release its fourth quarter and full year 2025 financial results before the market open on Wednesday, February 25, 2026, to be followed by a conference call at 8:30 a.m. Eastern Time. Conference Call Details: To participate in the conference call, please dial 1-877-407-9208 (US) or 1-201-493-6784 (international). To access the call, please reference the company name and call title: ODDITY Fourt ...

Company Overview - Oddity Tech Ltd. (NASDAQ:ODD) is a consumer technology company focused on building digital-first brands in the beauty and wellness industries [4]. Analyst Ratings - Barclays analyst Lauren Lieberman has reduced the price target for Oddity Tech's stock from $46 to $40 while maintaining an "Equal Weight" rating [1]. - The firm has adjusted its targets in the broader consumer staples category concerning Q4 2025 earnings, indicating concerns about the company's fundamentals and sector performance [2]. Financial Developments - Oddity Tech announced amendments to existing agreements with a syndicate of banks to secure credit facilities amounting to $350 million, replacing prior $200 million credit facilities. This move enhances the company's financial flexibility for growth initiatives, acquisitions, and share buybacks [3]. Market Sentiment - Recent enthusiasm for Oddity Tech's stock is attributed to a flight to safety among investors, although there are concerns about potential oil and currency headwinds that may arise in 2026 [2]. - While the company shows potential as an investment, there are opinions that certain AI stocks may offer greater upside potential with less downside risk [4].

Core Insights - The Baron Small Cap Fund experienced a decline of 1.56% in Q4 2025, underperforming the Russell 2000 Growth Index, which gained 1.22% during the same period. For the entire year, the fund returned -0.66%, trailing the index by 13.67 percentage points, indicating weak performance both absolutely and relatively [1]. Group 1: Fund Performance - The Baron Small Cap Fund's performance in Q4 2025 was negative, with a decline of 1.56% compared to a gain of 1.22% for the Russell 2000 Growth Index [1]. - The fund's annual return for 2025 was -0.66%, significantly underperforming the index by 13.67 percentage points [1]. - Large-cap growth stocks continued to lead the market for the third consecutive year, suggesting a concentrated leadership trend [1]. Group 2: Oddity Tech Ltd. Analysis - Oddity Tech Ltd. (NASDAQ:ODD) was highlighted as a leading detractor for the Baron Small Cap Fund, with a one-month return of -14.31% and a 12-month decline of 28.64%, resulting in a market capitalization of approximately $1.73 billion [2]. - The company aims to transform the beauty and wellness market through proprietary technology for online sales, but faced stock declines due to investor concerns about category weakness and potential deceleration in its largest brand, Il Makiage [3]. - Oddity Tech Ltd. is launching a new platform, MethodIQ, which requires significant upfront marketing investment, adding uncertainty to its financial outlook [3]. Group 3: Hedge Fund Interest - Oddity Tech Ltd. was held by 31 hedge fund portfolios at the end of Q3 2025, a decrease from 36 in the previous quarter, indicating a decline in popularity among hedge funds [4]. - Despite its potential, the company is viewed as less favorable compared to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4].

Core Viewpoint - The article compares Oddity Tech (ODD) and Adyen N.V. Unsponsored ADR (ADYEY) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Estimates - Oddity Tech has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Adyen N.V. has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3] - The Zacks Rank system emphasizes companies with strong earnings estimate revisions, making ODD a more appealing option for investors focused on earnings growth [3] Group 2: Valuation Metrics - ODD has a forward P/E ratio of 13.87, significantly lower than ADYEY's forward P/E of 32.33, indicating that ODD may be undervalued compared to ADYEY [5] - The PEG ratio for ODD is 1.16, while ADYEY's PEG ratio is 1.76, suggesting that ODD offers better value relative to its expected earnings growth [5] - ODD's P/B ratio is 4.91, compared to ADYEY's P/B of 9.06, further supporting the notion that ODD is more attractively priced [6] Group 3: Value Grades - ODD has a Value grade of B, while ADYEY has a Value grade of F, indicating that ODD is viewed more favorably by value investors based on key fundamental metrics [6]

Core Insights - The consumer staples sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Oddity Tech Ltd (NASDAQ: ODD) has an RSI of 25.3, with a stock price decline of approximately 20% over the past month, closing at $33.80 [3][6] - PMGC Holdings Inc (NASDAQ: ELAB) has an RSI of 16.2, with a significant stock price drop of around 73% over the past month, closing at $3.56 [4][6] - Zevia Pbc (NYSE: ZVIA) has an RSI of 26, with a stock price decrease of about 33% over the past month, closing at $1.68 [5][6] Group 2: Analyst Ratings and Price Targets - Keybanc analyst maintained an Overweight rating for Oddity Tech, lowering the price target from $70 to $50 [6] - Telsey Advisory Group analyst maintained an Outperform rating for Zevia, keeping the price target at $6 [6]

Core Viewpoint - ODDITY Tech (NASDAQ:ODD) is recognized as a promising mid-cap consumer staples stock with a significant upside potential, supported by positive analyst ratings and strong product performance [1][3]. Group 1: Analyst Ratings and Price Target - Evercore ISI analyst Mark Mahaney has reaffirmed an outperform rating for ODDITY Tech, projecting a price target of $80, indicating an upside of nearly 126% [1][3]. - Citizens also assigned an outperform rating to ODDITY Tech, estimating a similar 126% upside based on the same price target of $80 [3]. Group 2: Product Performance and Revenue Potential - The latest skin care offering, METHODIQ, has received a promising market response, with expectations of generating incremental revenues between $80 million and $200 million by 2028 [2]. - METHODIQ has outperformed the SpoiledChild product at a comparable stage, suggesting strong growth and cross-selling opportunities in the future [4]. Group 3: Financial Performance - ODDITY Tech has demonstrated strong fundamental performance, achieving EBITDA margins of nearly 20% for nine consecutive quarters and over 20% topline growth for ten consecutive quarters [3]. Group 4: Business Model and Innovation - ODDITY Tech operates as a consumer technology business that disrupts the beauty and wellness industries through an AI-enabled platform, utilizing data science, machine learning, and biotechnology to develop digital-first brands like SpoiledChild and IL MAKIAGE [5].

Core Viewpoint - Investors are evaluating Oddity Tech (ODD) and BlackLine (BL) to determine which stock offers better value opportunities in the Internet - Software sector [1] Group 1: Zacks Rank and Earnings Estimates - Oddity Tech has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while BlackLine has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that ODD's earnings outlook is improving more significantly than BL's [3] Group 2: Value Metrics - ODD has a forward P/E ratio of 14.54, compared to BL's forward P/E of 24.52, indicating that ODD may be undervalued relative to BL [5] - The PEG ratio for ODD is 1.22, while BL's PEG ratio is significantly higher at 4.98, suggesting ODD has better growth potential relative to its price [5] - ODD's P/B ratio is 5.15, while BL's P/B ratio is 10.84, further indicating that ODD is more attractively valued [6] Group 3: Overall Value Grades - ODD has received a Value grade of B, while BL has a Value grade of D, reinforcing the view that ODD is the more favorable investment option for value investors [6]

Core Viewpoint - Oddity Tech (ODD) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][2]. Earnings Estimates and Stock Price Correlation - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock price movements [2][3]. - There is a strong correlation between earnings estimate revisions and near-term stock price movements, largely driven by institutional investors who adjust their valuations based on these estimates [3][5]. Company Performance and Outlook - For Oddity Tech, the increase in earnings estimates and the Zacks rating upgrade suggest an improvement in the company's underlying business, which is expected to positively impact its stock price [4][9]. - The Zacks Consensus Estimate for Oddity Tech indicates expected earnings of $2.13 per share for the fiscal year ending December 2025, with a 4.6% increase in estimates over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6][8]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9].

Core Insights - The beauty and wellness industry traditionally relies on an old-economy model, but Oddity Tech is adopting a tech-forward e-commerce approach to enhance customer relationships and drive sales [1] - Oddity has shown strong financial performance and aims to sustain its momentum as it becomes a key player in the new Voyager Portfolio [2] Business Model and Strategy - Oddity's direct-to-consumer platform leverages various data types to optimize customer interactions and product offerings, leading to improved operational efficiency and user acquisition [4] - The company has achieved higher customer loyalty and repeat business rates, indicating effective use of collected data to enhance shareholder value [5] Future Growth Potential - Oddity launched the Methodiq telehealth platform in November 2025, targeting dermatological health issues such as acne, hyperpigmentation, and eczema, providing an alternative to traditional treatments [6] - The company has demonstrated the viability of its business model through successful consumer brands and plans to introduce additional brands to capture growth in niche markets [7]