Core Insights - Skillsoft Global Knowledge has been awarded the 2025 Global AWS Partner Award, highlighting its role in driving innovation and building solutions on Amazon Web Services (AWS) [1] - The company has been recognized as the EMEA Training Partner of the Year, reflecting its significant impact in equipping learners in the region with skills in cloud, data, and security [1] Company Recognition - The award signifies Skillsoft Global Knowledge's leadership in the training sector, particularly in relation to AWS [1] - The recognition as EMEA Training Partner of the Year underscores the company's commitment to enhancing learning opportunities in the cloud computing domain [1]

Key Takeaways Skillsoft has dropped 69.2% YTD, while peers and its industry posted gains.AI-focused products boosted platform usage and reduced development expenses for Skillsoft.Skillsoft lowered the FY26 revenue guidance amid weak federal and discretionary spending.Skillsoft Corp. (SKIL) shares have plummeted 69.2% in the year-to-date period against 22.4% growth in its industry and a 20.7% rise in the Zacks S&P 500 Composite.SKIL underperformed its industry peers, JBT Marel Corporation (JBTM) and MediaAlp ...

Core Insights - Both Skillsoft (SKIL) and Docusign (DOCU) are focusing on enterprise software and productivity solutions, with SKIL providing cloud-based learning and DOCU offering eSignature and contract lifecycle management solutions [1] Group 1: Skillsoft (SKIL) - SKIL's revenue trajectory has shown improvement, with a 4% increase in revenues after a 7.4% sequential dip in Q1 FY2026 [2] - The Talent Development Solutions (TDS) segment remained flat at $101 million, while the TDS Enterprise Solution has seen four consecutive quarters of revenue growth, contributing over 90% to the TDS segment [2] - The Global Knowledge segment reported $28 million in revenues, down 10% year-over-year but up 12% sequentially [2] - Adjusted EBITDA margin expanded by 70 basis points and 60 basis points, attributed to prudent expense management and operational enhancements [3] - SKIL experienced a 50% year-over-year increase in technology learners, with AI learners and AI learning hours surging 74% and 158% year-over-year, respectively [3] - Management has cut the revenue outlook to $510-$530 million from $530-$545 million due to macroeconomic and geopolitical instability [4] - SKIL reported a net loss of $23.8 million in Q2 FY2026, an improvement from a $39.6 million loss in the same quarter last year [4] - The company faces competition from established players like Coursera and Udemy, necessitating rapid investments that could lead to further losses [4] Group 2: Docusign (DOCU) - DOCU's revenue increased by 9% year-over-year and 4.8% sequentially in Q2 FY2026, reflecting strong subscription revenue growth [5] - Subscription revenues, which account for 98% of total revenues, rose 9% year-over-year and 5% sequentially, indicating robust customer retention [5] - Billing climbed 13% year-over-year, outpacing revenue growth, showcasing strong demand and pricing power [5] - Dollar net retention increased to 102%, reinforcing customer base retention [5] - Management raised the fiscal 2026 revenue guidance to $3.189-$3.201 billion from $3.151-$3.163 billion [5] - DOCU maintains a solid balance sheet with cash reserves of $844 million and no current debt, generating $218 million in free cash flow during Q2 FY2026 [6] - Despite strong revenue growth, DOCU faced a 20-basis point decline in adjusted gross margin and a 240-basis point drop in adjusted operating margin, raising concerns about sustainable profitability [7] - Competition from major players like Adobe Acrobat Sign poses additional risks to DOCU's growth potential [8] Group 3: Comparative Analysis - The Zacks Consensus Estimate for SKIL indicates a year-over-year decline of 2.8% in sales and 19.6% in EPS for fiscal 2026 [9] - In contrast, DOCU's estimates show a year-over-year increase of 7.3% in sales and 3.9% in EPS for fiscal 2026 [10] - SKIL is trading at a 12-month forward price-to-earnings ratio of 2.16, lower than its median of 3.95, suggesting it may be undervalued compared to DOCU, which has a forward P/E ratio of 17.26 [11] - Both companies present compelling growth narratives, with SKIL showing consistent growth and momentum in AI learning, while DOCU benefits from strong customer retention and a solid balance sheet [13] - SKIL is anticipated to offer better growth potential due to its undervaluation, providing a margin of safety that lowers downside risks [14]

Core Insights - Skillsoft Corp. (SKIL) shares increased by 17.9% to close at $10.82, following a notable trading volume, despite a 46.3% loss over the past four weeks [1] - The company's Percipio platform has driven significant growth, with a 50% year-over-year increase in technology learners, 74% growth in AI learners, and a 158% rise in AI learning hours in Q2 of fiscal 2026 [2] - Skillsoft is projected to report quarterly earnings of $1.26 per share, reflecting a year-over-year increase of 169.2%, while revenues are expected to be $131.56 million, down 4.1% from the previous year [2] Earnings and Estimates - The consensus EPS estimate for Skillsoft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [5] Industry Context - Skillsoft operates within the Zacks Technology Services industry, where another company, Richtech (RR), has seen a decline of 43.9% over the past month, closing at $3 [5] - Richtech's consensus EPS estimate for its upcoming report is -$0.03, which is a 40% improvement from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Skillsoft Corp. (SKIL) is currently viewed as a better investment opportunity compared to Climb Global Solutions (CLMB) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Analyst Outlook - Skillsoft Corp. has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while Climb Global Solutions has a Zacks Rank of 5 (Strong Sell) [3]. - The stronger Zacks Rank for SKIL suggests an improving analyst outlook, making it a more favorable option for investors [3]. Group 2: Valuation Metrics - SKIL has a forward P/E ratio of 3.02, significantly lower than CLMB's forward P/E of 21.88, indicating that SKIL may be undervalued [5]. - The PEG ratio for SKIL is 0.30, while CLMB's PEG ratio is 1.82, further suggesting that SKIL offers better value considering its expected earnings growth [5]. - SKIL's P/B ratio stands at 2.12, compared to CLMB's P/B of 4.39, reinforcing the notion that SKIL is more attractively priced relative to its book value [6]. Group 3: Overall Value Assessment - Based on the analysis of various valuation metrics, SKIL has earned a Value grade of A, while CLMB has a Value grade of C, indicating that SKIL is perceived as a better value investment [6][7].

Core Insights - Skillsoft Corp. (SKIL) is leveraging AI-driven innovation to transform workforce upskilling, with the Percipio platform being central to this strategy [1][5] - The company has secured significant client engagements, including a semiconductor manufacturer enhancing learning for 43,000 employees, validating the effectiveness of its platform [1] - A European digital services provider's collaboration with Skillsoft resulted in over 20,000 certifications earned globally, indicating a growing demand for scalable learning solutions [2] Engagement Metrics - The AI learner base on the Percipio platform increased by 74% year over year, while AI learning hours surged by 158%, reflecting heightened engagement with Skillsoft's offerings [3][8] - These metrics are crucial for enhancing enterprise value and establishing recurring revenue streams through multi-year contracts [3] Financial Performance - Skillsoft achieved a nearly 5.9% reduction in content and software development expenses year over year, contributing to improved margins with a 10-basis-point increase in adjusted EBITDA [4][8] - The company's AI strategy has been instrumental in driving certification achievements and margin improvements, positioning it favorably in the evolving workforce landscape [5] Valuation and Market Position - Skillsoft's stock has declined by 53.6% over the past six months, underperforming the industry average growth of 13.3% [6] - The company trades at a 12-month forward price-to-sales ratio of 2.18, which is lower than peers such as First Advantage Corporation (9.78) and Xperi Inc. (6.15) [10] - Skillsoft holds a Value Score of A, with positive EPS estimates for fiscal years 2026 and 2027, indicating potential for recovery [13]

Core Insights - Skillsoft Corp. (SKIL) shares have declined 52.6% in the past six months, underperforming its industry which grew by 22.9% and the Zacks S&P 500 Composite which rose by 19.4% [1] - Over the past year, SKIL has also underperformed compared to competitors Parsons and Peraso, with a decline of 30.2% against Parsons' 13.8% drop and Peraso's 26.4% rise [4] AI-Driven Strategy - SKIL's future growth is heavily reliant on AI-led innovation, focusing on intelligent learning design and skills intelligence, with over 20,000 certifications earned by its global workforce in relevant fields [5][6] - The demand for scalable learning solutions is increasing as companies adapt to workforce changes and AI technology, which SKIL aims to meet through its product strategy [6] Financial Performance - In the second quarter of fiscal 2026, SKIL reported a 5.9% year-over-year decline in content and software development expenses, attributed to productivity gains from AI [9] - The company achieved $45 million in expense reductions since implementing transformation actions, resulting in an adjusted EBITDA margin increase to 22% from 21.4% year-over-year [10][11] - SKIL's year-to-date free cash flow (FCF) stands at $3.5 million, with management projecting adjusted EBITDA of $112-$118 million and FCF of $13-$18 million for the year [13] Capital Management and Valuation - By the end of the second quarter of fiscal 2026, SKIL's return on equity (ROE) was 16.03%, surpassing the industry's 15.89%, indicating effective capital management [14] - SKIL is currently priced at 2.12 times forward 12-month price-to-earnings, significantly below the industry average of 25.19 times, and its trailing 12-month EV-to-EBITDA ratio is 3.05, well below the industry average of 15.87 [15] Investment Recommendation - The company's focus on AI-led innovation and cost-cutting initiatives is expected to improve margins and free cash flow, making it an attractive investment opportunity [19] - SKIL is currently undervalued and offers strong capital returns, making it a recommended addition for long-term investors [20]

Group 1: Skillsoft Corp. (SKIL) - Skillsoft is an instructor-led training services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 519.3% over the last 60 days [1] - Skillsoft has a PEG ratio of 0.33 compared to the industry average of 1.13, indicating strong growth potential [1] - The company possesses a Growth Score of B [1] Group 2: Micron Technology, Inc. (MU) - Micron is a memory and storage products company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 24.4% over the last 60 days [2] - Micron has a PEG ratio of 0.52 compared to the industry average of 1.51, suggesting favorable growth characteristics [2] - The company possesses a Growth Score of A [2] Group 3: Futu Holdings Limited (FUTU) - Futu is an online brokerage and wealth management platform with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu has a PEG ratio of 0.67 compared to the industry average of 1.13, indicating potential for growth [3] - The company possesses a Growth Score of B [3]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Universal Health Services, Micron Technology, and Skillsoft [1][2][3] Company Summaries - **Universal Health Services (UHS)**: - Operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers - Holds a Zacks Rank 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings increased by 0.7% over the last 60 days - PEG ratio of 0.86 compared to the industry average of 1.02 - Growth Score of A [1][2] - **Micron Technology (MU)**: - A leading provider of semiconductor memory solutions - Holds a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 24.3% over the last 60 days - PEG ratio of 0.48 compared to the industry average of 1.32 - Growth Score of A [2] - **Skillsoft (SKIL)**: - Provides digital learning, training, and talent solutions - Holds a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 240.9% over the last 60 days - PEG ratio of 0.49 compared to the industry average of 0.88 - Growth Score of B [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Skillsoft Corp. (SKIL) Analysis - Skillsoft Corp. (SKIL) has shown a significant price increase of 27.9% over the past four weeks, indicating growing investor interest [4] - The stock has gained 13.2% over the past 12 weeks, with a beta of 1.6, suggesting it moves 60% more than the market in either direction [5] - SKIL has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SKIL is trading at a low Price-to-Sales ratio of 0.28, meaning investors pay only 28 cents for each dollar of sales, suggesting it is undervalued [7] Group 3: Additional Investment Opportunities - Besides SKIL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]