Core Insights - The Zacks Semiconductors - Radio Frequency industry is experiencing growth driven by the adoption of WiFi 7, edge IoT, AI data centers, and automotive electrification, despite facing challenges such as inventory buildup and sluggish capital spending by telecom carriers [1][3][5]. Industry Overview - The industry includes companies providing radio frequency solutions and components for various applications, including 5G, aerospace, automotive, and smart home technologies [2]. - Key technologies utilized by industry players include ZigBee, Bluetooth Low Energy, and Gallium Nitride [2]. Trends Influencing the Industry - Accelerated 5G deployment is enhancing demand for RF power amplifiers and WiFi hotspots due to increased bandwidth needs from remote work trends [3]. - Innovation in IoT, wearables, and autonomous vehicles is expanding the market for RF semiconductor products beyond smartphones [4]. - The electric vehicle market is projected to grow fourfold by 2027, benefiting industry players [5]. Industry Performance - The Zacks Semiconductors - Radio Frequency Industry holds a Zacks Industry Rank of 9, placing it in the top 4% of over 250 Zacks industries, indicating bullish near-term prospects [6][7]. - Despite a positive earnings outlook, the industry has underperformed the S&P 500 and broader sector over the past year, declining 7.8% compared to the S&P 500's 14.4% gain [10]. Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.76X, lower than the S&P 500's 23.3X and the sector's 28.61X [12]. Notable Companies - **RF Industries**: This company has seen a 75.5% increase in shares over the past year, with a backlog of $19.7 million and steady earnings estimates of 35 cents per share for fiscal 2026 [16][17]. - **Skyworks**: Despite a 20.6% drop in shares over the past year, Skyworks is benefiting from demand in automotive electrification and AI data centers, with expected revenues between $975 million and $1.025 billion for the first quarter of fiscal 2026 [20][22].

Core Insights - RF Industries has received an additional $2 million order for custom cabling solutions from a leading aerospace company, indicating strong demand in the aerospace sector [1][2] - The CEO of RF Industries highlighted the company's progress in the aerospace industry and the importance of custom cabling solutions in driving growth and entering new markets [2] - The company is focused on diversifying its business across customers, applications, and markets, which is expected to enhance topline growth [2] Company Overview - RF Industries designs and manufactures a wide range of interconnect products for various markets, including wireless/wireline telecom, data communications, and industrial applications [3] - The company's product offerings include RF connectors, coaxial cables, fiber optic cables, and custom cabling solutions, among others [3] - RF Industries is headquartered in San Diego, California, with additional operations in New York, Connecticut, and New Jersey [3]

Industry Overview - Semiconductor sales have been experiencing rapid growth, driven by optimism surrounding artificial intelligence (AI) and demand from various industries [1][10] - Global semiconductor sales reached $64.9 billion in August, marking a 4.4% increase from July and a 21.7% rise year-over-year from $53.3 billion in August 2024 [3][10] - The semiconductor market is expected to maintain double-digit growth through 2025, fueled by rising demand for data center processors and memory components as AI investments increase [6][10] Regional Performance - Sales growth in August was particularly strong in the Asia Pacific and the Americas, with year-over-year increases of 43.1% and 25.5% respectively [4] - China and Europe also saw sales growth, with increases of 12.4% and 4.4% year-over-year [4] Company Highlights - Advanced Energy Industries, Inc. (AEIS) focuses on power-conversion solutions for the semiconductor industry, with an expected earnings growth rate of 53.1% for the current year and a Zacks Rank of 2 [7][8] - Analog Devices (ADI) specializes in analog, mixed-signal, and digital signal processing integrated circuits, with an expected earnings growth rate of 21.5% and a Zacks Rank of 1 [9][11] - RF Industries, Ltd. designs and manufactures coaxial connectors, with an expected earnings growth rate of over 100% and a Zacks Rank of 1 [12]

Market Overview - The U.S. stock market has reached record highs following the Fed's first rate cut of the year, reducing rates by 25 basis points to 4-4.25% [1] - The Fed's indication of potential further cuts through 2026 and 2027 has bolstered investor confidence in supportive monetary policy despite slowing growth [1] Investment Strategy - Relative price strength is emphasized as a strategy to identify market leaders likely to outperform [2] - Stocks such as Tutor Perini Corporation (TPC), RF Industries, Ltd. (RFIL), and A-Mark Precious Metals, Inc. (AMRK) are recommended based on their relative price strength [2] Stock Performance Metrics - A stock's potential for returns is primarily assessed through earnings and valuation ratios, alongside its price performance relative to peers [3] - Stocks outperforming their industries or benchmarks should be included in investment portfolios for higher return potential [4] Earnings Estimates and Analyst Sentiment - Stocks that have outperformed the S&P 500 over the past 1 to 3 months and show solid fundamentals are considered optimal for investment [5] - Positive revisions in earnings estimates are crucial, as upward revisions typically lead to price gains [6] Screening Parameters - Stocks must show positive relative price changes over 12 weeks, 4 weeks, and 1 week, alongside positive current-quarter estimate revisions [7] - Only Zacks Rank 1 (Strong Buy) stocks, which have historically outperformed the S&P 500, are included in the screening process [8] Company-Specific Insights - Tutor Perini Corporation (TPC) has a 2025 earnings estimate indicating 220.8% growth, with shares up 153.1% over the past year [9][11] - RF Industries (RFIL) projects a 422.2% growth in 2025 earnings, with shares surging 132.2% in a year [9][13] - A-Mark Precious Metals (AMRK) has a 2026 earnings estimate showing 58.1% year-over-year growth, although shares have declined by 40.3% in the past year [9][15]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: RF Industries, Ltd. (RFIL) - RFIL currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [4]. Performance Metrics - Over the past week, RFIL shares increased by 4.59%, matching the performance of the Zacks Semiconductors - Radio Frequency industry [6]. - In a longer timeframe, RFIL's monthly price change is 27.31%, significantly outperforming the industry's 2.66% [6]. - Over the last quarter, RFIL shares rose by 34%, and over the past year, they increased by 134.32%, while the S&P 500 only moved 12.64% and 18.69% respectively [7]. Trading Volume - RFIL's average 20-day trading volume is 183,731 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, one earnings estimate for RFIL has increased, raising the consensus estimate from $0.24 to $0.29 [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, RFIL is positioned as a promising investment opportunity with a Momentum Score of A [12].

Core Viewpoint - RF Industries, Ltd. reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing a significant improvement from a loss of $0.01 per share a year ago [1] Financial Performance - The company achieved revenues of $19.79 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 6.86%, compared to $16.84 million in the same quarter last year [2] - Over the last four quarters, RF Industries has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - RF Industries shares have increased approximately 96.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 11.1% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $19.75 million, and for the current fiscal year, it is $0.24 on revenues of $76.37 million [7] - The estimate revisions trend for RF Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Semiconductors - Radio Frequency industry, to which RF Industries belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [4][17] - Gross profit margin improved by 450 basis points to 34%, exceeding the target margin of 30% [4][17] - Operating profit was $719,000 compared to a loss of $419,000 in the same period last year [4][17] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [5][19] - Consolidated net income was $392,000 or $0.04 per share, compared to a net loss of $705,000 in Q3 2024 [18] Business Line Data and Key Metrics Changes - Strong growth was noted across aerospace, venues, telecommunications, and broadband networks [14] - The company is diversifying its product offerings and customer base, reducing reliance on tier one carrier customers [6][7] - Significant orders were received in the transportation market, including a terminal infrastructure project at a major U.S. airport [8] Market Data and Key Metrics Changes - The company is seeing contributions from fast-growing markets such as aerospace, transportation, and data centers [6][7] - The backlog at the end of the quarter was $19.7 million, with current backlog at $16.1 million [5][21] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider [6] - Focus on building deeper relationships with existing customers and expanding into new markets [10][11] - Emphasis on operational efficiency and cost structure to improve profitability without compromising quality [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels [12][16] - The company is mindful of potential tariff impacts and ongoing supply chain constraints but remains optimistic about its sales pipeline [16][20] - The management highlighted the importance of execution in achieving results and capitalizing on future opportunities [16] Other Important Information - The company has a strong balance sheet with $3 million in cash and cash equivalents and a current ratio of approximately 1.6 to 1 [20] - Inventory levels were managed carefully, with a slight increase from the previous quarter [20] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells versus mix? - Management indicated that the mix of higher-value items, including DAC thermal cooling systems and aerospace projects, is contributing to the improved gross margin [23][24] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, with potential fluctuations based on product mix and sales levels [25][26] Question: Can you characterize the competition between traditional wireless business and newer end markets? - Management noted that contributions are coming from various markets, indicating a diverse customer base and product lines [27][28] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [29][30] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [31]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year-over-year to $19.8 million [4][17] - Gross profit margin improved to 34%, a 450 basis point increase from the previous year [4][17] - Operating profit was $719,000 compared to a loss of $419,000 in the same period last year [4][17] - Adjusted EBITDA was $1.6 million, representing 8% of net sales, with a goal of reaching at least 10% [5][18] Business Line Data and Key Metrics Changes - Strong growth was observed across aerospace, venues, telecommunications, and broadband networks [14] - The company is diversifying its product offerings and customer base, reducing reliance on tier one carrier customers [6][10] - New partnerships and deeper relationships with existing customers are contributing to revenue growth [10][11] Market Data and Key Metrics Changes - Fast-growing markets such as aerospace, transportation, and data centers are now contributing to the sales pipeline [6][8] - Significant orders have been received for infrastructure projects in transportation, particularly at major U.S. airports [8] - The company is seeing a revival in stadium and venue buildouts, with a pipeline of over 100 venues [9] Company Strategy and Development Direction - The company is transitioning from a component supplier to a technology solutions provider [6] - Focus on profitability and operational efficiency is emphasized, with a cost structure that supports improved margins [5][12] - The strategy includes diversifying the supply chain to mitigate tariff impacts and enhance inventory availability [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining steady revenue in Q4, similar to Q3 levels [12][16] - The company is mindful of potential tariff impacts and ongoing supply chain constraints but remains optimistic about its sales pipeline [16] - The focus on execution and collaboration is seen as crucial for capitalizing on future opportunities [16] Other Important Information - The company ended the quarter with a backlog of $19.7 million, which has since decreased to $16.1 million [5][21] - Cash and cash equivalents stood at $3 million, with a current ratio of approximately 1.6 to 1 [20] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC systems and small cells versus mix? - Management indicated that the mix of higher value items, including DAC systems and aerospace projects, is contributing to the improved gross margin [23][24] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, with potential fluctuations based on product mix and sales levels [25][26] Question: Can you characterize the competition between traditional wireless business and newer end markets? - Management noted that contributions are coming from various markets, indicating a diverse customer base and product lines [27][28] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with a long sales cycle for such projects [29][30] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales numbers as key factors in reaching the EBITDA target [31][32]

Financial Data and Key Metrics Changes - Third quarter net sales increased by 17.5% year over year to $19.8 million [5][18] - Gross profit margin improved to 34%, a 450 basis point increase from 29.5% in the same quarter last year [5][18] - Operating profit was $719,000 compared to a loss of $419,000 in the prior year [5][18] - Adjusted EBITDA reached $1.6 million, representing 8% of net sales, with a goal of at least 10% in the future [6][19] Business Line Data and Key Metrics Changes - The company has diversified its product offerings, with significant contributions from aerospace, transportation, and data centers [7][9] - Strong growth was noted in aerospace, with repeat orders from a leading market player [8] - The transportation market is seen as a significant opportunity, with meaningful orders for infrastructure projects [9] Market Data and Key Metrics Changes - The company is experiencing growth across various markets, including aerospace, venues, telecommunications, and broadband networks [15] - The sales pipeline includes over 100 venues, with projects related to major events like the Olympics and World Cup [10][31] Company Strategy and Development Direction - The company aims to transform from a component supplier to a technology solutions provider, focusing on product diversification and deeper customer relationships [7][8] - Partnerships with tier one carriers and new manufacturers are being leveraged to expand market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong revenue in Q4, similar to Q3 levels, despite potential tariff impacts [13][17] - The company is focused on operational efficiency and profitability, with a strong sales pipeline and disciplined operations [16][19] Other Important Information - The company ended the quarter with a backlog of $19.7 million, which has since decreased to $16.1 million [6][22] - Inventory levels were managed carefully, with a slight increase from the previous quarter [21] Q&A Session Summary Question: How much of the gross margin improvement is driven by DAC thermal cooling systems and small cells? - Management indicated that the product mix, including higher-value items, has contributed to the margin improvement, alongside increased sales volume [24][25] Question: Should gross margins in Q4 be similar to Q3? - Management expects gross margins to remain above 30%, but specific quarter-to-quarter predictions are challenging due to fluctuations in sales [26][27] Question: How is competition characterized between traditional wireless business and newer markets? - Management noted contributions from various markets, emphasizing the importance of diversification in customer base and product lines [28][29] Question: When can meaningful bookings from the venue pipeline be expected? - Management anticipates contributions from the venue pipeline into fiscal 2026, with long-term deployments expected [31][32] Question: What is the bridge to the 10% EBITDA target? - Management highlighted ongoing operational improvements and higher sales as key factors in reaching the EBITDA target [33][34]

Market Performance - U.S. equities experienced a robust rally on September 11, 2025, with all three major indices closing at record highs, driven by optimism over a potential Federal Reserve interest rate cut [1][2] - The S&P 500 rose 0.9% to approximately 6586 points, marking a 17.69% increase year-over-year [2] - The Dow Jones Industrial Average surged 1.3%, closing above 46,000 for the first time, adding over 500 points [2] - The Nasdaq Composite climbed 0.7%, achieving a new record high, influenced by mixed performances among technology stocks [2] Economic Indicators - The Consumer Price Index (CPI) report for August indicated a headline annual inflation of 2.9% and core inflation steady at 3.1%, with a monthly rise of 0.4% in headline CPI [3] - Initial jobless claims reached a near four-year high, signaling a softening labor market, which reinforced expectations for a Federal Reserve rate cut [3] - Treasury yields eased in response to the economic reports, as traders anticipated the Fed's first rate cut of the year [3] Upcoming Events - The Federal Reserve's meeting on September 17, 2025, is highly anticipated, with expectations for the first interest rate cut of the year [4] - Key economic data releases are scheduled, including the Michigan Consumer Sentiment report and Retail Sales, Industrial Production, and Housing Starts [5] Corporate News - Oracle (ORCL) shares fell 3.6% after a previous surge of nearly 36% due to excitement over AI-related contracts [6] - Tesla (TSLA) gained 6%, while Apple (AAPL) rose over 1%, and Microsoft (MSFT) and Alphabet (GOOGL) saw slight increases [7] - Warner Bros. Discovery (WBD) shares soared 29% following news of a potential takeover bid from Paramount Skydance [8] - Synopsys Inc. (SNPS) plummeted 35.8% after missing earnings estimates, while GameStop Corp. (GME) rose 3.3% after beating expectations [10] Earnings Announcements - Adobe Inc. (ADBE) is expected to report earnings with a forecasted EPS of $4.21, a 10.50% increase year-over-year [11] - Other companies reporting include RH and RF Industries, with RF Industries expected to show a significant 200% increase in EPS year-over-year [11]