Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend can lead to successful investments if supported by strong fundamentals and positive earnings revisions [1][2]. Group 1: Stock Performance - Universal Technical Institute (UTI) has shown a significant price increase of 23.9% over the past 12 weeks, indicating strong investor interest [4]. - UTI's stock has also increased by 25% over the last four weeks, suggesting that the upward trend is maintained [5]. - Currently, UTI is trading at 94.1% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - UTI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with strong fundamentals that can maintain their upward trends [3]. - In addition to UTI, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting potential investment opportunities [8].

Group 1 - PLBY Group, Inc. has returned 7.5% year-to-date, outperforming the average gain of 5% in the Consumer Discretionary sector [4] - The Zacks Rank for PLBY Group, Inc. is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for PLBY's full-year earnings has increased by 5.9% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - PLBY Group, Inc. belongs to the Leisure and Recreation Products industry, which has 23 companies and is currently ranked 191 in the Zacks Industry Rank [6] - The average gain for stocks in the Leisure and Recreation Products industry this year is 9.9%, indicating that PLBY is slightly underperforming its industry [6] - Universal Technical Institute, another Consumer Discretionary stock, has returned 37.7% year-to-date and is part of the Schools industry, which has a higher average gain of 10.2% [4][7]

Company Overview - Patterson-UTI Energy is an oil and gas service provider primarily operating in the United States [1] Industry Context - A recent decline in crude oil prices has led several producers to slightly reduce drilling activity [1]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [11] Company Spotlight: Universal Technical Institute (UTI) - Universal Technical Institute is a leading provider of post-secondary education in the U.S., offering various programs in automotive and related fields [12] - UTI holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Momentum Style Score of B [12][13] - UTI's shares have increased by 28.2% over the past four weeks, with upward revisions in earnings estimates for fiscal 2025 [13]

Core Insights - Universal Technical Institute (UTI) celebrates a 30-year collaboration with Crown Equipment Corporation, enhancing career opportunities for UTI graduates in the material handling sector [2][4] - Crown Equipment has actively recruited UTI graduates for various roles, contributing to the development of a skilled workforce across its 80+ branches nationwide [2][3] - The partnership includes initiatives like UTI's Early Employment Program, allowing students to gain industry experience while completing their education [2][3] Company Collaboration - The collaboration has resulted in hundreds of UTI graduates being hired and promoted within Crown, many achieving leadership positions [3] - Crown Equipment's director of talent acquisition emphasizes the importance of this partnership in maintaining high service standards and providing meaningful career paths for graduates [3] - UTI's division president highlights the commitment to connecting students with employers who value their skills, showcasing the long-term success of graduates at Crown [4] Equipment and Resources - Crown Equipment has provided essential material handling equipment to UTI campuses, ensuring access to reliable tools for training and operations [4] - The partnership reinforces Crown's commitment to workforce development and support for skilled trades through custom campus branding and equipment donations [4] Educational Impact - UTI operates 15 campuses across nine states, offering a range of technical training programs in transportation and skilled trades [5] - The institute aims to serve students and communities by providing quality education and support services for in-demand careers [5]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging [1] Group 1: Company Overview - Universal Technical Institute (UTI) is currently recommended as a growth stock based on the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - UTI has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - UTI's historical EPS growth rate is 43.1%, with projected EPS growth of 37% this year, significantly surpassing the industry average of 23.7% [4] - Double-digit earnings growth is preferred by growth investors, indicating strong future prospects [3] Group 3: Cash Flow Growth - UTI's year-over-year cash flow growth is 60.3%, well above the industry average of 3.2%, highlighting its strong cash accumulation capabilities [5] - The company's annualized cash flow growth rate over the past 3-5 years is 63.3%, compared to the industry average of 9.2% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for UTI, with the Zacks Consensus Estimate for the current year increasing by 3.8% over the past month [7] - Positive earnings estimate revisions are correlated with near-term stock price movements, making this a favorable indicator for investors [7] Group 5: Investment Positioning - UTI has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]

Have you been paying attention to shares of Universal Technical Institute (UTI) ? Shares have been on the move with the stock up 21.7% over the past month. The stock hit a new 52-week high of $33.67 in the previous session. Universal Technical Institute has gained 27.5% since the start of the year compared to the 0.1% move for the Zacks Consumer Discretionary sector and the 5.9% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings su ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, detailing significant revenue and net income growth driven by UTI and Concorde segments Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $95,998 | $161,900 | | Total current assets | $198,452 | $221,951 | | Total assets | $720,443 | $744,575 | | Total current liabilities | $185,100 | $204,963 | | Long-term debt | $91,642 | $123,007 | | Total liabilities | $426,530 | $484,344 | | Total shareholders' equity | $293,913 | $260,231 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $207,447 | $184,176 | $408,876 | $358,871 | | Income from operations | $16,853 | $11,192 | $44,331 | $25,423 | | Net income | $11,446 | $7,787 | $33,599 | $18,176 | | Diluted EPS | $0.21 | $0.14 | $0.61 | $0.31 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,173 | $8,345 | | Net cash used in investing activities | ($53,983) | ($9,759) | | Net cash used in financing activities | ($35,149) | ($34,965) | | Change in cash, cash equivalents and restricted cash | ($66,959) | ($36,379) | - The company operates in two reportable segments: **Universal Technical Institute (UTI)**, focused on transportation and skilled trades, and **Concorde Career Colleges (Concorde)**, focused on healthcare education programs[30](index=30&type=chunk)[31](index=31&type=chunk) - In December 2023, all remaining outstanding shares of Series A Preferred Stock were converted into Common Stock, and all rights of preferred holders to receive future dividends were terminated[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting significant revenue and student growth, 'North Star' strategy execution, and strong liquidity [Overview of Operations](index=27&type=section&id=Overview%20of%20the%20Three%20and%20Six%20Months%20Ended%20March%2031%2C%202025) The company experienced robust growth in student metrics and revenue for the three and six months ended March 31, 2025, driven by new program rollouts and strong demand Consolidated Student Metrics (% Change YoY) | Metric | Q2 2025 vs Q2 2024 | Six Months 2025 vs Six Months 2024 | | :--- | :--- | :--- | | Total new student starts | +21.4% | +21.7% | | Average full-time active students | +10.3% | +10.7% | | End of period full-time active students | +12.6% | +12.6% | - Revenue for Q2 2025 increased **12.6% to $207.4 million**, and for the six months ended March 31, 2025, revenue increased **13.9% to $408.9 million** compared to the prior year periods[110](index=110&type=chunk)[111](index=111&type=chunk) - The increase in student population was driven by the launch of new HVAC and refrigeration programs in the UTI segment and five new programs along with new cash-pay 'short programs' in the Concorde segment[108](index=108&type=chunk) [Business Strategy](index=28&type=section&id=Business%20Strategy) The company is actively executing its 'North Star' strategy, focusing on growth, diversification, and optimization through new campus announcements and program expansions - Announced plans for new UTI division campuses in Atlanta, GA, and San Antonio, TX, both expected to open in 2026, pending regulatory approvals[116](index=116&type=chunk) - Signed a new facility lease for a co-branded Concorde and Heartland Dental campus in Fort Myers, Florida, expected to open in early fiscal 2026[116](index=116&type=chunk) - Expanded program offerings by adding Tesla's START Collision Repair program at the Long Beach campus and launching new Battery Hybrid Electric Vehicle (EV) courses across multiple campuses[116](index=116&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenues grew significantly for both the quarter and six-month period, driven by higher student volumes across UTI and Concorde segments, leading to improved operating margins Revenue by Segment (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | UTI | $134,228 | $123,323 | 8.8% | | Concorde | $73,219 | $60,853 | 20.3% | | **Total** | **$207,447** | **$184,176** | **12.6%** | Revenue by Segment - Six Months (in thousands) | Segment | Six Months 2025 Revenue | Six Months 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | UTI | $265,706 | $238,697 | 11.3% | | Concorde | $143,170 | $120,174 | 19.1% | | **Total** | **$408,876** | **$358,871** | **13.9%** | - For Q2 2025, educational services and facilities expenses decreased as a percentage of revenue to **49.4%** from **52.9%** in the prior year, despite a dollar increase, indicating improved efficiency[118](index=118&type=chunk)[122](index=122&type=chunk) - For the six months ended March 31, 2025, selling, general and administrative (SG&A) expenses increased by **$18.4 million**, primarily due to higher compensation, advertising, and provision for credit losses to support strategic growth initiatives[155](index=155&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and credit availability, sufficient to fund operations and strategic initiatives, and significantly increased operating cash flow - As of March 31, 2025, the company had **$96.0 million** in cash and cash equivalents and **$99.0 million** available under its Revolving Credit Facility[174](index=174&type=chunk) - Net cash provided by operating activities for the six months ended March 31, 2025, was **$22.2 million**, a substantial increase from **$8.3 million** in the prior-year period[181](index=181&type=chunk) - Significant cash outflows included **$39.7 million** for the purchase of held-to-maturity investments, **$14.3 million** for property and equipment, and **$30.0 million** in payments on the Revolving Credit Facility[184](index=184&type=chunk)[186](index=186&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes EBITDA as a non-GAAP measure to analyze operational results, showing significant increases for both the three and six-month periods EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,446 | $7,787 | $33,599 | $18,176 | | **EBITDA** | **$25,000** | **$18,513** | **$60,442** | **$39,942** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposure during the six months ended March 31, 2025, compared to prior disclosures - There have been no material changes in the company's market risk exposure during the six months ended March 31, 2025[193](index=193&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[194](index=194&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[195](index=195&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, though it is periodically subject to various claims in the ordinary course of business - The company is not currently a party to any material legal proceedings[84](index=84&type=chunk)[198](index=198&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None reported for the period[200](index=200&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[203](index=203&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, including an offer letter, CEO and CFO certifications, and XBRL data files - Exhibits filed include an offer letter with Bruce Schuman, CEO/CFO certifications (302 and 906), and XBRL data files[204](index=204&type=chunk)

Company Performance - Universal Technical Institute (UTI) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.14 per share a year ago [1][2] - The earnings surprise for this quarter was 75%, following a previous quarter where the company reported earnings of $0.40 per share against an expectation of $0.18, resulting in a surprise of 122.22% [2] - UTI's revenues for the quarter ended March 2025 were $207.45 million, surpassing the Zacks Consensus Estimate by 5.28%, and an increase from $184.18 million year-over-year [3] Stock Performance - UTI shares have increased approximately 14.4% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $196.02 million, and for the current fiscal year, it is $1 on revenues of $815.07 million [8] Industry Outlook - The Zacks Schools industry, to which UTI belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, American Public Education (APEI), is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year increase of +350% [10]