Core Viewpoint - European Wax Center, Inc. has appointed Angela Jaskolski as Chief Operating Officer and Kurt Smith as Chief Development Officer, both bringing extensive experience in franchise operations and development to enhance the company's growth strategy [1][4]. Group 1: Executive Appointments - Angela Jaskolski will assume the role of Chief Operating Officer on August 18, 2025, overseeing Franchise Operations, Field Training, Learning and Development, and Industry Engagement [1][2]. - Kurt Smith will take on the position of Chief Development Officer on July 22, 2025, responsible for Business Development, Real Estate, Market Planning, and Franchise Recruitment [1][3]. Group 2: Experience and Background - Ms. Jaskolski has over 20 years of executive-level experience, previously serving as Chief Store Officer at Madison Reed, where she significantly improved average unit volume (AUV) and EBITDA [2][5]. - Mr. Smith has nearly 20 years of global leadership experience, most recently as Vice President and General Manager of Pizza Hut Latin America and the Caribbean, achieving record-high profitability and franchisee engagement [3][6]. Group 3: Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, performing over 23 million services annually [7]. - The company generated sales of $951 million in fiscal 2024 and operates more than 1,000 centers across 45 states [8].

Core Insights - European Wax Center, Inc. (EWCZ) achieved a significant EBITDA improvement in Q1 of fiscal 2025, raising questions about the sustainability of this expansion [1][8] - The company reported adjusted EBITDA of $18.8 million, a 7.2% year-over-year increase, with margins increasing to 36.5% from 33.7% [1][8] Financial Performance - The EBITDA margin expansion was primarily driven by revenue growth, advertising, and the timing of selling, general and administrative expenses, which provided a temporary boost to profitability [2] - EWCZ reaffirmed its full-year adjusted EBITDA guidance of $69 million to $71 million, indicating confidence in its cost structure and marketing strategy [4][8] Marketing Strategy - EWCZ plans to distribute advertising expenses more evenly throughout 2025 to support new guest acquisition and stabilize marketing activities [3] - The company has reported early progress in marketing efficiency with the implementation of a new media strategy [2] Market Position - EWCZ's shares have increased by 61.6% over the past three months, slightly trailing the industry's growth of 62.6% [7] - The company trades at a forward price-to-earnings ratio of 8.15X, significantly lower than the industry average of 28.11X, indicating potential undervaluation [9] Earnings Estimates - The Zacks Consensus Estimate for EWCZ's fiscal 2025 and 2026 earnings implies year-over-year growth of 35.6% and 8.2%, respectively [10] - Current earnings estimates for the upcoming quarters show a positive growth trajectory, with a year-over-year growth estimate of 13.33% for the current quarter [11]

Core Insights - European Wax Center, Inc. (EWCZ) is undergoing a significant marketing transformation, showing early signs of improvement in guest trends after implementing a new advertising effectiveness platform in Q1 FY25 [1][7] - The company is focusing on data-driven, digital-first marketing strategies, which include enhanced measurement tools that connect media impressions to in-center behavior, leading to smarter marketing spend and reduced acquisition costs [2][7] - EWCZ's marketing efforts are closely integrated with franchisee operations, utilizing new support tools and communication platforms, with plans for a major ad campaign during the summer to boost traffic recovery [3] Marketing Efficiency Comparison - Coty Inc. (COTY) is shifting its marketing strategy towards high-ROI categories while reducing focus on lower-return segments, facing challenges from inconsistent demand and global channel fragmentation [4] - Helen of Troy Limited (HELE) is simplifying its marketing execution and prioritizing high-return investments, reporting success in influencer-backed launches despite facing tariff disruptions and pricing pressures [5] Financial Performance - EWCZ shares have increased by 64.6% over the past three months, outperforming the industry growth of 50.1% [6] - The company has a forward price-to-earnings ratio of 8.61X, significantly lower than the industry average of 27.7X, indicating potential undervaluation [8] - The Zacks Consensus Estimate predicts EWCZ's earnings growth of 35.6% for fiscal 2025 and 8.2% for fiscal 2026 [9]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The PEG ratio is 1.05, significantly lower than the industry average of 7.79, and it possesses a Growth Score of A [2] Group 2: Intercorp Financial Services (IFS) - This company provides financial products and services and also carries a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.6% over the last 60 days [2] - It has a PEG ratio of 0.36 compared to the industry average of 1.51, with a Growth Score of B [2] Group 3: European Wax Center (EWCZ) - The company operates as a personal care franchise offering wax services and proprietary skincare products [3] - It holds a Zacks Rank of 1 and has seen a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The PEG ratio stands at 0.51, well below the industry average of 3.65, and it has a Growth Score of B [3]

Company Overview - European Wax Center is the largest and fastest-growing provider of out-of-home waxing services[8] - The company performed over 23 million waxing services via 15+ million guest visits in FY 2023[8] - As of January 6, 2024, the company has 1,044 centers[11, 14] - The company is approximately 6x larger than the next largest waxing-focused competitor by center count and ~11x larger by system-wide sales[14] Financial Performance - FY 2023 system-wide sales were $955 million[12] - FY 2023 revenue was $221 million[11] - FY 2023 Adjusted EBITDA margin was 344%[11] - FY 2023 Free Cash Flow was $55 million[12] Growth and Future Outlook - The company anticipates opening 27-32 net new centers in FY 2024[52] - The company expects $930M – $950M system-wide sales and $216M – $221M EWC Revenue in FY2024[52] - The company has a strong multi-year development pipeline with 370+ locations[31, 34]

Group 1: Great Lakes Dredge & Dock (GLDD) - The company is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm damage restoration [1] - It has a Zacks Rank of 1 (Strong Buy) and a 39.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1][2] - The PEG ratio is 1.02, significantly lower than the industry average of 7.02, and it possesses a Growth Score of A [2] Group 2: Strattec Security (STRT) - The company designs, develops, manufactures, and markets mechanical and electro-mechanical locks for automotive manufacturers in the US, Canada, and Mexico [2] - It also carries a Zacks Rank of 1 and has seen a 19.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2][3] - The PEG ratio stands at 1.30 compared to the industry average of 4.04, with a Growth Score of A [3] Group 3: European Wax Center (EWCZ) - This personal care franchise offers wax services and a range of proprietary skincare products [3] - It holds a Zacks Rank of 1 and has experienced a remarkable 96.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3][4] - The PEG ratio is 0.50, much lower than the industry average of 3.26, and it has a Growth Score of B [4]

Core Viewpoint - European Wax Center, Inc. (EWCZ) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook for its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily based on a company's earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The recent upgrade reflects an improvement in European Wax Center's earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Revisions - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [5]. - For European Wax Center, a 145.1% increase in the Zacks Consensus Estimate over the past three months signifies a positive trend in earnings expectations [9]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of European Wax Center to Zacks Rank 1 places it in the top 5% of stocks covered by Zacks, indicating strong potential for market-beating returns in the near term [10][11].

Group 1: European Wax Center, Inc. (EWCZ) - European Wax Center is a franchisor and operator of out-of-home waxing services with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 96.8% over the last 60 days [1] - The company's shares gained 30.8% over the last three months, outperforming the S&P 500's advance of 5.3% [1] - European Wax Center possesses a Momentum Score of A [1] Group 2: Carlsberg A/S (CABGY) - Carlsberg is a producer of beer and other beverage products with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.1% over the last 60 days [2] - Carlsberg's shares gained 41.2% over the last six months, significantly outperforming the S&P 500's advance of 1.9% [2] - The company also possesses a Momentum Score of A [2]

Core Insights - Estee Lauder has launched its storefront on Amazon.ca Premium Beauty Store, enhancing its digital presence in Canada and providing access to its high-performance skincare, makeup, and fragrances [1][8] - The launch includes a curated selection of best-selling products, making it easier for Canadian shoppers to purchase Estee Lauder items online [2][4] - The collaboration with Amazon aims to combine Estee Lauder's luxury brand with Amazon's trusted service, offering a seamless shopping experience [4] Product Offerings - Estee Lauder's storefront features popular products such as Advanced Night Repair Serum, Double Wear Stay-In-Place Foundation, and Revitalizing Supreme+ [2][8] - The store is designed to provide an informative shopping experience, helping customers discover and learn about Estee Lauder's iconic products [3] Strategic Focus - Estee Lauder is implementing its Beauty Reimagined strategy to regain growth momentum, focusing on expanding consumer reach and enhancing brand presence on digital platforms like Amazon and TikTok Shop [9] - The company reported share gains in key markets, including Southeast Asia, the United States, the United Kingdom, and Canada, driven by strong performances from brands like Clinique and La Mer [9] Financial Performance - As of the third quarter of fiscal 2025, Estee Lauder has approved over 2,600 net position reductions and streamlined middle management by 20% to support long-term performance and restore sustainable sales growth [10] - The company's stock has gained 9.8% in the past month, while the industry and S&P 500 have grown by 14.8% and 2.4%, respectively [11]

Group 1: European Wax Center, Inc. (EWCZ) - European Wax Center is a franchisor and operator of out-of-home waxing services with a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 96.8% over the last 60 days [1] - The company has a PEG ratio of 0.56 compared to the industry average of 3.02 and possesses a Growth Score of B [1] Group 2: The ODP Corporation (ODP) - The ODP Corporation provides products and digital workplace technology solutions and also carries a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 18.4% over the last 60 days [2] - ODP has a PEG ratio of 0.43 compared to the industry average of 3.65 and possesses a Growth Score of B [2] Group 3: Strattec Security Corporation (STRT) - Strattec Security Corporation specializes in automotive security, access control, and user interface controls products and solutions, holding a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 19.9% over the last 60 days [3] - The company has a PEG ratio of 1.25 compared to the industry average of 4.33 and possesses a Growth Score of A [3]