Core Viewpoint - Coupang (CPNG) is set to report its first-quarter 2025 results on May 6, with expectations of revenue growth and potential challenges impacting earnings performance [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for CPNG's first-quarter 2025 revenues is $8.07 billion, reflecting a 13.43% increase from the previous year's quarter [2]. - The earnings estimate has decreased slightly to 6 cents per share, indicating a year-over-year growth of 20% [2]. - CPNG has exceeded the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 320.83% [3]. Factors Influencing Upcoming Results - The company reported a strong fourth-quarter 2024 performance, with net revenues growing 21% year over year to $8.0 billion and gross profit increasing 48% to $2.5 billion [4]. - The weakening Korean won, which reached its lowest level in over a decade, is expected to create currency headwinds, potentially affecting reported dollar-denominated results [5]. - Macroeconomic conditions in South Korea indicate a slowdown in domestic e-commerce market growth, which could impact CPNG's growth trajectory [6]. Investment and Operational Challenges - CPNG's increasing investment in technology and infrastructure is both an opportunity for long-term innovation and a challenge due to elevated operating expenses, which are expected to moderate only in the near to medium term [7]. - The Developing Offerings segment is projected to incur significant adjusted EBITDA losses of $650-750 million for 2025, despite showing promising growth in international expansion efforts [8]. - The Fulfillment & Logistics by Coupang offering is performing well and is margin-accretive, which may help support overall profitability despite revenue compression [9]. Current Market Position - Given the mixed factors and the current stock valuation, it may be prudent for investors to hold existing positions rather than initiate new ones ahead of the earnings announcement [10]. - CPNG currently has an Earnings ESP of -9.09% and a Zacks Rank of 3, indicating a lower likelihood of an earnings beat [11][12].

Core Insights - Garmin Ltd. reported a strong start to fiscal 2025, with total sales reaching a record $1.54 billion, marking an 11% year-over-year increase despite missing revenue and earnings estimates [1] Outdoor Segment Performance - The Outdoor segment saw a 20% year-over-year sales increase to $438 million, leading all operating segments in growth and absolute revenues [2] - Operating income for the Outdoor segment rose 20% to $129 million, with gross and operating margins of 64% and 29%, respectively, indicating strong demand and profitability [2] Product Expansion Strategy - Garmin's focus on expanding its product portfolio has significantly contributed to the Outdoor segment's performance, targeting niche outdoor sports and lifestyle categories [3] - Notable product releases include the Instinct 3 series of adventure watches, the Descent G2 for diving, the tactix 8 for tactical use, and the Approach S44/S50 for golf [4] - The introduction of new handheld GPS products, such as the Montana series with SOS functionality and the solar-powered Approach G20 GPS, showcases Garmin's commitment to innovation [5] Financial Impact and Market Position - The Outdoor segment's high-margin profile provides Garmin with a financial cushion amid challenges in other business areas, such as a 2% decline in Marine revenues and modest growth in Aviation [6][7] - Despite macroeconomic pressures, including estimated annual cost increases of $100 million due to U.S.-China tariffs, Garmin maintained its full-year EPS guidance at $7.80, reflecting confidence in the Outdoor segment's strength [8]

Core Viewpoint - In times of market volatility, value investing becomes a preferred strategy as investors seek to buy undervalued stocks when others are selling at lower prices [1][2]. Value Investing Strategy - Value investors capitalize on market uncertainty by purchasing stocks at discounted prices when other investors sell [1]. - The strategy can lead to "value traps" if not understood properly, where stocks underperform due to persistent issues rather than temporary problems [3]. Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, as a low PEG ratio indicates better value [5]. - Unlike P/E alone, the PEG ratio helps identify a stock's intrinsic value, although it has limitations regarding changing growth rates [5]. Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [6]. Selected Stocks - **Barrick Gold (GOLD)**: A leading gold mining company with 3.9 million ounces of gold and 195,000 tons of copper produced in 2024, holding 89 million ounces of proven and probable gold reserves. It has a Zacks Rank 2 and a Value Score of A, with a five-year expected growth rate of 33.5% [8][9]. - **StoneCo (STNE)**: A financial technology company in Brazil providing various financial services. It has a Zacks Rank 1 and a Value Score of B, with a long-term expected growth rate of 26.3% [9][10]. - **Synovus Financial (SNV)**: A diverse financial services company with a Zacks Rank 2 and a Value Score of A, boasting a five-year expected growth rate of 10.2% [11][12]. - **BGC Group, Inc. (BGC)**: A financial brokerage and technology company with a long-term expected earnings growth rate of 24.7%, holding a Value Score of B and a Zacks Rank of 1 [12][13].

Core Viewpoint - Fabrinet (FN) is expected to report strong fiscal third-quarter results, with anticipated revenues between $850 million and $870 million, reflecting a year-over-year growth of 17.42% [1][2] Revenue Expectations - The Zacks Consensus Estimate for fiscal third-quarter revenues is $858.96 million, indicating a significant increase from the previous year [1] - Telecom revenues are projected to have grown robustly, driven by data center interconnect products and new system wins, following a 24% year-over-year increase in the previous quarter [3] Earnings Projections - Non-GAAP earnings per share are expected to be between $2.55 and $2.63, with the consensus mark for earnings at $2.47 per share, reflecting a 3.35% growth from the prior year [1][2] - Fabrinet has consistently beaten earnings estimates in the past four quarters, with an average surprise of 5.96% [2] Segment Performance - Continued strength in telecom and steady growth in automotive revenues are anticipated to positively impact FN's performance [3] - Datacom revenues are expected to decline slightly due to customer transitions to next-generation products, while automotive revenues are projected to continue their growth trend [4] Margin Insights - The gross margin for the fiscal second quarter was 12.4%, slightly down from 12.7% in the first quarter, influenced by favorable forex conditions [4]

Core Viewpoint - IPG Photonics is expected to report a significant decline in earnings and revenues for the first quarter of 2025, primarily due to lower demand in its materials processing business and increased competition, particularly in China [1][3][4]. Financial Expectations - The company anticipates non-GAAP earnings per share between 5 cents and 35 cents, with revenues expected to range from $210 million to $240 million [1]. - The Zacks Consensus Estimate for earnings is set at 21 cents per share, reflecting a 59.62% year-over-year decline [1]. - The revenue estimate stands at $221.18 million, indicating a year-over-year decrease of 12.23% [2]. Demand and Market Conditions - IPG Photonics is facing reduced demand for welding, cutting, and marking applications, which has negatively impacted its financial performance [3]. - In the fourth quarter of 2024, revenues from China fell by 22% year-over-year due to lower demand in industrial markets and competitive pressures [4]. - Economic uncertainty in Europe is also affecting industrial demand and capital investments, leading to sluggish demand from cutting OEM customers [5]. Strategic Initiatives - The company is strategically expanding into new end-markets such as 3D printing, micro-materials processing, electric vehicles, and medical devices, which may provide some offsetting benefits to its revenue [6]. Earnings Surprise History - IPG Photonics has a mixed earnings surprise history, having missed the Zacks Consensus Estimate in two of the last four quarters while beating it in the other two, with an average earnings surprise of 15.97% [2]. Earnings ESP and Zacks Rank - Currently, IPG Photonics has an Earnings ESP of -33.33% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [7].

Valuation Metrics - The price-to-earnings (P/E) ratio is a common valuation metric, but for companies with losses or minimal profits, the price-to-sales (P/S) ratio is more effective in identifying undervalued stocks [1] - The price-to-book (P/B) ratio is another useful tool for identifying low-priced stocks with high growth potential, calculated by dividing the stock's current price by its book value per share [2][6] Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [4][5] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][7] Stock Examples - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5%, currently holding a Zacks Rank of 2 and a Value Score of A [16][17] - Pediatrix Medical Group (MD) provides specialized physician services with a projected EPS growth rate of 9.5% and also holds a Zacks Rank of 2 and a Value Score of A [18][19] - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 13.8% and maintains a Zacks Rank of 2 and a Value Score of A [19] - StoneCo (STNE) offers financial technology solutions with a projected EPS growth rate of 26.3%, holding a Zacks Rank of 1 and a Value Score of B [20] - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 9.6% and a Zacks Rank of 2 with a Value Score of A [21][22] Screening Parameters - Stocks with a P/B ratio less than the industry median indicate potential for price appreciation [12] - A P/S ratio lower than the industry average makes a stock more attractive [12] - A P/E ratio (F1) below the industry median is considered favorable [13] - A PEG ratio of less than 1 suggests that a stock is undervalued relative to its growth prospects [14] - Stocks should have a minimum trading price of $5 and an average 20-day volume of at least 100,000 for better liquidity [15]

Core Insights - KLA Corporation is expected to report third-quarter fiscal 2025 results on April 30, with projected revenues of $3 billion, plus/minus $150 million, indicating a year-over-year increase of 27.36% [1] - The company anticipates non-GAAP earnings of $8.05 per share, plus/minus 60 cents, reflecting a year-over-year growth of 53.23% [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for revenues is pegged at $3.01 billion, which is slightly above KLA's own revenue guidance [1] - The consensus mark for earnings is at $8.06 per share, which has decreased by a penny over the past month [2] Growth Drivers - KLA's advanced packaging portfolio is experiencing momentum due to rising demand for powerful chip systems and complex chip integration, with advanced packaging revenues projected to exceed $800 million in 2025, up from $500 million in 2024 [3] - The company's growth in the wafer fab equipment market is supported by strong investments in leading-edge logic, high-bandwidth memory, and advanced packaging, contributing positively to its performance [4] - Advancements in artificial intelligence (AI) are driving demand for advanced semiconductors and process control solutions, which are expected to significantly impact KLA's third-quarter performance [5] Services Segment Performance - KLA's Services segment reported $667 million in revenues in the second quarter of fiscal 2025, marking its 50th consecutive quarter of year-over-year growth, which is likely to have a positive impact on the upcoming quarter [6] Tax and Regulatory Considerations - KLA anticipates a modest increase in its effective tax rate to approximately 14% in the second half of 2025 due to global tax reforms, which may negatively affect the reported quarter [7] - Ongoing uncertainty regarding the U.S. government's processing of export licenses could pose additional risks to revenue performance [7] Earnings Prediction Model - According to the Zacks model, KLA has an Earnings ESP of +0.23% and a Zacks Rank of 3, indicating a reasonable chance of an earnings beat [8]

Core Insights - GoDaddy (GDDY) is set to report first-quarter 2025 results on May 1, with expected revenues between $1.175 billion and $1.195 billion, indicating a 7% growth at the mid-point from the previous year [1] - The Zacks Consensus Estimate for first-quarter 2025 revenues is $1.19 billion, suggesting a 7.1% year-over-year rise [1][2] Revenue and Earnings Expectations - The consensus estimate for earnings is $1.41 per share, reflecting a 30.56% growth from the year-ago quarter, despite a 3.4% decline over the past 30 days [2] - GoDaddy has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 3.42% [2] Key Factors Impacting Performance - Currency fluctuations are expected to negatively impact international revenues, with U.S. revenue growth anticipated to outpace international growth by 200 basis points [3] - Increased marketing spend to support the launch of the Airo platform is likely to pressure margins in the first quarter [3] - Customer retention challenges are expected due to divestitures, lack of deep discounting, and ongoing customer migrations [4] Positive Developments - GoDaddy is expected to benefit from strong early adoption of the Airo platform, with 50% of paid subscriptions in Q4 originating from Airo, driven by increased customer engagement [5] - The company aims for Applications & Commerce (A&C) revenue growth in the mid-teens, with a Zacks Consensus Estimate for A&C revenues at $441 million, indicating a 15.1% year-over-year growth [6] Earnings Outlook - GoDaddy currently has an Earnings ESP of -17.31% and a Zacks Rank of 4 (Sell), indicating lower odds of an earnings beat [7]

Core Viewpoint - Stem (STEM) is expected to report its first-quarter 2025 earnings on April 29, with revenues estimated at $25.80 million, reflecting a 1.30% increase year-over-year, and a projected loss of 20 cents per share, which is an improvement from a loss of 46 cents in the same quarter last year [1][3]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for first-quarter 2025 revenues is $25.80 million, indicating a 1.30% increase from the previous year [1]. - The consensus for the bottom line is a loss of 20 cents per share, which has widened by 6 cents over the past month but shows improvement from a loss of 46 cents in the prior year [1][2]. Group 2: Performance Drivers - The anticipated performance for the first quarter is expected to benefit from the high-margin software platform, PowerTrack, which has delivered gross margins of 70-80% in previous quarters [3]. - The company's strategic shift towards software and services aims to reduce reliance on lower-margin hardware sales, likely supporting improved profitability [3]. - International expansion, particularly a deal with Neovolt in Hungary to manage a 484 MW solar portfolio, is expected to contribute to revenue growth [4]. Group 3: Operational Improvements - The company expects an improvement in operating cash flow due to working capital releases related to OEM hardware, aided by efficient inventory management and a reduction in lower-margin hardware deployments [5]. - Stem plans to cut operational expenses by over 20% in 2025, focusing on profitability and operational efficiency through targeted initiatives [6]. Group 4: Challenges - A significant decline in hardware sales during the fourth quarter of 2024 negatively impacted overall performance, and this trend is expected to continue into the first quarter of 2025, putting pressure on total revenues [7]. Group 5: Earnings Prediction Model - According to the Zacks model, Stem currently has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy), indicating that the odds of an earnings beat are not favorable [8].

Core Viewpoint - CoStar Group is expected to report first-quarter 2025 earnings on April 29, with projected revenues between $711 million and $716 million, indicating a year-over-year growth of 9% at the midpoint of the range [1]. Revenue Estimates - The Zacks Consensus Estimate for CoStar's revenues is currently at $719.37 million, suggesting a growth of 9.59% compared to the same quarter last year [2]. - The consensus estimate for earnings remains at 11 cents per share, indicating a 10% growth from the previous year's figure [2]. Historical Performance - CoStar Group has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 47.26% [3]. Factors Influencing Performance - The first-quarter performance is likely to benefit from a strong portfolio of marketplaces, including Apartments.com, LoopNet, and Homes.com [4]. - Apartments.com is expected to see an 11% revenue growth in Q1 2025, driven by increased traffic and higher advertising spending [4]. - Homes.com reached 110 million average monthly unique visitors in Q4 2024, up 11% year over year, contributing to overall traffic growth [5]. - CoStar's total site traffic reached 134 million average monthly unique visitors in Q4 2024, reflecting a 17% year-over-year increase [5]. - The international segment and positive outlook for real estate marketplaces are anticipated to enhance LoopNet's performance [5]. Acquisition Impact - CoStar's growth is supported by a consistent acquisition strategy, including the acquisition of Matterport, which integrates 3D capture technology into its real estate marketplaces [6]. - The acquisition of Visual Lease strengthens CoStar's Real Estate Manager business line, providing comprehensive lease management solutions [7]. - The STR product, a benchmarking tool for the hospitality industry, is expected to show strong revenue growth in the upcoming quarter [7]. Earnings Model Insights - According to the Zacks model, CoStar Group has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable [8].