Key Takeaways Alphabet emerges as the superior AI cloud investment with better valuation and diversified revenue streams.GOOGL trades at 19.29x P/E ratio versus ORCL's premium 33.59x, offering more attractive entry pricing.Oracle secured $30B+ cloud deal starting 2028, while Google Cloud posted 32% growth with unicorn dominance.The AI revolution has reshaped the cloud computing landscape, creating unprecedented opportunities for technology giants. Two prominent players, Oracle Corporation (ORCL) and Alphabe ...

Core Insights - Pegasystems (PEGA) is experiencing strong growth in its cloud business, with a 30% year-over-year increase in Pega Cloud backlog, reaching approximately $1.32 billion, and total backlog at $1.84 billion, indicating a healthy revenue pipeline for future quarters [1][10] - The Annual Contract Value (ACV) has risen 16% year-over-year to $1.514 billion, while Pega Cloud ACV surged 28%, reflecting robust demand for PEGA's AI-driven solutions [2][10] - The current cloud backlog, expected to convert within the next 12 months, has grown 28% year-over-year, providing near-term revenue visibility [3][10] - The Zacks Consensus Estimate projects revenue growth of 13.71% for fiscal 2025 and 5.83% for fiscal 2026 [4] Competitive Landscape - Pegasystems faces significant competition in the cloud market from Oracle and Salesforce [5] - Oracle is expanding its cloud infrastructure and applications, enhancing its competitive position with strengths in AI-driven databases and integrated enterprise solutions [6] - Salesforce leads in cloud-based CRM, offering a fully cloud-native solution that emphasizes usability and integration, setting a high benchmark in customer engagement [7] Financial Performance - Pegasystems' shares have increased by 9.7% year-to-date, compared to a 10.8% return for the broader Zacks Computer and Technology sector and a 16.3% rise in the Computer-Software industry [8] - The company has a Value Score of D and is trading at a forward 12-month price-to-earnings ratio of 24.66X, lower than the industry's 32.73X [12] - The Zacks Consensus Estimate for PEGA's earnings is $1.98 per share for 2025, reflecting a year-over-year growth of 31.13% [15]

Key Takeaways Okta ended Q1 FY26 with 20,000 customers and subscription revenue growth prospects of 10.3%.SentinelOne's Purple AI saw triple-digit bookings growth, with attach rates above 25% in Q1 FY26.Okta shares are down 13.9% YTD, outperforming SentinelOne's 25.1% decline over the same period.Okta (OKTA) and SentinelOne (S) are key providers of security software solutions for enterprises. OKTA offers cloud-based identity solutions that allow customers to integrate with nearly any application, service or ...

Core Insights - Okta (OKTA) is expected to report second-quarter fiscal 2026 results on August 26, with anticipated non-GAAP earnings between 83-84 cents per share and revenues projected at $710-$712 million, reflecting a year-over-year growth of 10% [1][9] Financial Performance - The Zacks Consensus Estimate for earnings has remained steady at 84 cents per share, indicating a year-over-year growth of 16.7%, while the revenue consensus is pegged at $711 million, showing an increase of 10.1% from the previous year [2] - Okta has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 13.53% [2] Business Growth Factors - Okta's expanding product portfolio, particularly in security and identity governance, is expected to drive client acquisition and revenue growth, with approximately 20,000 customers reported at the end of the first quarter of fiscal 2026 [3] - The number of customers with over $100,000 in Annual Contract Value increased by 70 sequentially to 4,870, indicating strong subscription revenue growth [3] - New product momentum, including offerings like Identity Governance and Identity Threat Protection with Okta AI, is anticipated to contribute positively to the upcoming quarter's performance [4] Strategic Partnerships - Okta benefits from a robust partner ecosystem, including major companies like Amazon Web Services, Microsoft, and Salesforce, with over 7,000 integrations with various applications and IT infrastructure providers [5][17] Market Position and Competition - Despite strong growth, Okta faces challenges from sluggish federal business and competition from Microsoft and other enterprise security providers like SentinelOne and Cisco [6] - Year-to-date, Okta shares have increased by 13.9%, outperforming the Zacks Computer & Technology sector and the Zacks Security industry [7] Valuation Insights - Okta's stock is currently considered overvalued, with a Value Score of D, and a forward 12-month Price/Sales ratio of 5.22X, higher than competitors like SentinelOne and Cisco [11] - For fiscal 2026, Okta expects revenues between $2.85 billion and $2.86 billion, indicating a growth of 9-10% from fiscal 2025 [16] Financial Health - Okta ended the first quarter of fiscal 2026 with $2.73 billion in cash and investments, with net cash provided by operations at $241 million and free cash flow at $238 million, raising free cash flow margin guidance to approximately 27% for fiscal 2026 [18]

Key Takeaways RCL posted Q2 EPS of $4.38, up 36% y/y and above guidance by $0.33.Q2 Load factor reached 110%, with millennials and Gen Z making up half of RCL's guest base.Star of the Seas and Celebrity Xcel launches are boosting pricing power for RCL.Royal Caribbean Cruises Ltd. (RCL) is entering a pivotal stage as its Perfecta financial plan gains momentum. Designed to deliver a 20% compound annual EPS growth rate through 2027 and return on invested capital in the high teens, Perfecta has become the compa ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Dollar General (DG) , which belongs to the Zacks Retail - Discount Stores industry, could be a great candidate to consider.When looking at the last two reports, this discount retailer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 16.54%, on average, in the last two quarters.For the last reported quar ...

As consumer electronics retailers navigate a shifting landscape marked by evolving technology and changing consumer habits, Best Buy BBY finds itself at a pivotal juncture. Analysts closely watch how the company adapts to these dynamics, with strategic moves and new product offerings potentially reshaping its future trajectory.Telsey Advisory Group analyst Joseph Feldman maintained Best Buy with an Outperform and a $90 price forecast.Feldman states the company’s results are stabilizing and positioned to ret ...

Five Below, Inc. FIVE is showing signs of regaining momentum, with stronger sales growth, robust same-store performance, and an accelerating store expansion strategy positioning the discount retailer to capture demand across demographics.While tariff pressures and higher labor costs weigh on margins, a sharper focus on value-driven merchandising and potential competitive relief from U.S. import rule changes could bolster its longer-term growth trajectory.Telsey Advisory Group analyst Joseph Feldman reaffirm ...

Core Viewpoint - Global gold ETFs experienced inflows of $3.2 billion in July, indicating strong interest in the gold market, particularly in gold-backed exchange-traded funds, which are on track for their second-strongest year on record [1] Group 1: Market Trends - The gold market has seen unprecedented interest due to factors such as tariffs and inflation, leading to record highs for the precious metal [1] - Gold is traditionally viewed as a safe-haven investment, attracting capital during periods of uncertainty and volatility [2] - The growth in gold investments is primarily driven by U.S. investors, with significant inflows also coming from Asia [3] Group 2: Investment Dynamics - The gold trade continues to gain momentum across various forms, including physical gold, mining stocks, and ETFs, despite some recent tariff concerns that were alleviated [4] - Inflows into gold ETFs have been described as "staggering" compared to previous years, yet investors are less hedged in relation to the equity market than a decade ago, suggesting potential for further allocation into gold ETFs [5] - Gold-focused ETFs represent a smaller segment of the overall gold trade, but the demand for physical gold ownership is also increasing globally [6] Group 3: Comparative Analysis - U.S. bitcoin ETFs account for about 7% of the total market capitalization of bitcoin, while gold ETFs make up less than 1%, indicating room for growth in gold ETFs [7] - Gold ETFs are considered effective vehicles for tracking the spot price of gold and serve as a great allocation option for investors [7]

Core Insights - lululemon athletica inc. (LULU) continues to focus on product innovation, with recent successful launches such as Daydrift trousers and Glow Up leggings, which resonate well with consumers [1][8] - The company is expanding its product offerings across five key activities: yoga, running, training, golf, and tennis, successfully appealing to both lifestyle and performance segments [2][8] - Despite strong product sell-outs, lululemon's comparable sales in the U.S. rose only 1% due to soft traffic and competitive promotions, indicating external pressures on growth [3][8] Product Innovation - lululemon's strategy emphasizes the importance of new product introductions, with recent items like Fast & Free running shorts and ultramarathon apparel enhancing its credibility in high-performance sports [2] - The brand's ability to refresh core items while introducing new categories positions it well in the premium activewear market [1] Competitive Landscape - Competitors like NIKE and Under Armour are also streamlining inventories, with NIKE focusing on new product innovation and direct-to-consumer engagement to stabilize U.S. sales [4][5] - Under Armour is repositioning itself as a performance-focused brand, facing challenges from weaker consumer demand and intense competition [6] Financial Performance - lululemon's shares have declined 48.1% year to date, compared to the industry's decline of 28.4% [7] - The forward price-to-earnings ratio for LULU is 13.20X, higher than the industry average of 10.99X [9] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 1.9% for fiscal 2025, with a projected growth of 7.3% for fiscal 2026 [10]