Core Insights - ODDITY Tech Ltd. reported strong Q2 2025 results, with net sales and earnings exceeding estimates and showing year-over-year growth [1][3] - The company raised its full-year outlook, driven by robust top-line growth and strategic investments in innovation [2] Financial Performance - Adjusted EPS for Q2 was 92 cents, beating the estimate of 88 cents, and increased by 12.2% year-over-year [3] - Net sales reached $241.1 million, surpassing the estimate of $239 million, and grew by 25.1% from $192.8 million in the prior year [3] - Online DTC sales rose by 29.6% to $235.2 million, constituting 98% of total sales, up from 94% in the previous year [4] Margin and Cost Analysis - Gross profit was $174.4 million, a 25.3% increase from $139.1 million last year, with a gross margin of 72.3% [5] - SG&A expenses increased by 36.3% to $117.3 million, representing 48.6% of net sales, up 200 basis points year-over-year [5] - Operating income was $57.1 million, a 7.6% increase, while the operating margin declined to 23.7% [6] Strategic Developments - ODDITY's core brands, IL MAKIAGE and SpoiledChild, achieved double-digit online sales growth, supported by AI-driven personalization [10] - The company is on track to launch Brand 3 in Q4 2025, targeting the medical-grade dermatology segment, and Brand 4 is expected to launch in 2026 [11] - ODDITY raised $600 million through its first exchangeable note offering, indicating strong investor confidence [12] Future Guidance - For FY25, ODDITY expects net sales between $799 million and $804 million, reflecting 23-24% year-over-year growth [13] - Adjusted EBITDA is projected between $160 million and $162 million, with adjusted EPS expected between $2.06 and $2.09 [14] - For Q3 2025, net sales are anticipated to be between $144 million and $146 million, indicating year-over-year growth of 21-23% [14] Financial Health - As of June 30, 2025, ODDITY had cash and cash equivalents of $656.8 million, no long-term debt, and shareholders' equity of $351.2 million [9]

Core Insights - The article discusses the importance of various valuation metrics, particularly focusing on the price-to-book (P/B) ratio as a tool for identifying undervalued stocks with high growth potential [1][5][9]. Valuation Metrics - The price-to-earnings (P/E) ratio is often the first metric considered, but it becomes negative for loss-making companies, making the price-to-sales (P/S) ratio a more relevant indicator in such cases [1]. - The P/B ratio is calculated by dividing the current stock price by the book value per share, helping investors understand how much they pay for each dollar of book value [2][5]. - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued and a good buy [5][6]. Book Value - Book value represents the total value left for shareholders if a company were to liquidate its assets after settling all liabilities [3][4]. - It is calculated by subtracting total liabilities from total assets, and in some cases, intangible assets should also be deducted [4]. Stock Examples - StoneCo (STNE), CVS Health (CVS), KT Corporation (KT), KB Financial Group (KB), and USANA Health Sciences (USNA) are highlighted as stocks with low P/B ratios and strong growth potential [9][15][16][18][19]. - STNE has a projected 3-5 year EPS growth rate of 25.3% and a Zacks Rank of 1, while CVS has a projected EPS growth rate of 11.4% and a Zacks Rank of 2 [15][16]. Screening Parameters - Stocks are screened based on several parameters, including P/B, P/S, P/E ratios, PEG ratio, trading price, average volume, Zacks Rank, and Value Score [11][12][13][14]. - A PEG ratio of less than 1 indicates that a stock is undervalued relative to its growth prospects [13]. Limitations of P/B Ratio - The P/B ratio is most useful for companies in finance, investments, and manufacturing with tangible assets, but may be misleading for firms with high R&D expenditures or significant debt [8].

Core Insights - Datadog (DDOG) is expected to report second-quarter 2025 results on August 7, with projected revenues between $787 million and $791 million, indicating year-over-year growth of 22% to 23% [1][8] - The Zacks Consensus Estimate for revenues stands at $790.92 million, reflecting a 22.57% increase from the previous year's quarter [1][2] - Diluted non-GAAP earnings per share are anticipated to be between 40 and 42 cents, with the consensus estimate at 41 cents, showing a year-over-year decline of 4.65% [1][2] Revenue Growth Factors - Datadog's performance is likely to benefit from innovations in its AI-powered observability platform, including new modules like App Builder and security monitoring, which have attracted enterprise adoption [3][8] - The acquisitions of Eppo and Metaplane have enhanced the platform's functionality, promoting upsell momentum and increasing customer engagement [3][8] - The company has seen a 13% increase in large customers (3,770 clients with annual recurring revenues above $100,000), which is crucial for long-term growth [4][8] Enterprise Momentum - Datadog experienced a 70% year-over-year increase in dollar bookings for new logos in Q1 2025, along with 11 large deals exceeding $10 million, indicating strong enterprise traction [5][8] - The ongoing expansion within the large customer segment is expected to support revenue momentum and product penetration in Q2 [4][5] Margin Pressures - Operating margin pressures are anticipated due to ongoing reinvestments and elevated cloud hosting costs, with non-GAAP operating margin declining from 27% to 22% year-over-year in Q1 [6][8] - Gross margin also contracted by 300 basis points, which is expected to negatively impact margins in the upcoming quarter [6][8] Earnings Outlook - Datadog has an Earnings ESP of +2.86% and a Zacks Rank 2, indicating a favorable outlook for an earnings beat [7][9]

Core Viewpoint - The market anticipates that Monday.com (MNDY) will report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - The consensus estimate for Monday.com's quarterly earnings is $0.84 per share, reflecting a year-over-year decrease of 10.6% [3]. - Expected revenues for the quarter are $293.15 million, which represents a 24.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +3.30% suggests that analysts have recently become more optimistic about Monday.com's earnings prospects [12]. Earnings Surprise Potential - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. - Monday.com currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Monday.com exceeded the expected earnings of $0.70 per share by delivering $1.10, resulting in a surprise of +57.14% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Industry Context - StoneCo Ltd. (STNE), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.36 per share for the same quarter, indicating a year-over-year increase of 20% [18]. - StoneCo's revenues are projected to be $653.09 million, up 6.2% from the previous year [18]. - The consensus EPS estimate for StoneCo has been revised up by 5.9% over the last 30 days, and it has an Earnings ESP of +12.68%, suggesting a strong likelihood of beating the consensus EPS estimate [19].

Group 1: Mitsui & Co. - Mitsui & Co. operates more than 860 subsidiaries and associated companies across various sectors including chemicals, foodstuffs, and real estate [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Mitsui & Co. has a price-to-earnings ratio (P/E) of 11.16, lower than the industry average of 12.00, and possesses a Value Score of A [2] Group 2: StoneCo - StoneCo provides a cloud-based technology platform for electronic commerce across in-store, online, and mobile channels [2] - The company holds a Zacks Rank of 1 and has seen a 5.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - StoneCo has a price-to-earnings ratio (P/E) of 8.44, significantly lower than the industry average of 29.80, and has a Value Score of B [3] Group 3: SB Financial Group - SB Financial Group is a financial services holding company offering a full range of services including wealth management and commercial lending [3] - The company has a Zacks Rank of 1 and a 9.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - SB Financial Group has a price-to-earnings ratio (P/E) of 8.51, compared to the industry average of 9.70, and possesses a Value Score of B [4]

Core Insights - MercadoLibre (MELI) has established itself as the leading fintech acquiring engine in Latin America by focusing on small and informal sellers rather than large retailers [1][2] Group 1: Business Growth and Performance - MELI's Acquiring Total Payment Volume (TPV) reached $40.3 billion in Q1 2025, reflecting a 59% year-over-year FX-neutral growth [2] - Mexico and Brazil have experienced nine consecutive quarters of double-digit TPV growth, while Argentina's TPV surged 144% year-over-year, FX-neutral [2][4] - The Zacks Consensus Estimate for Q2 2025 total TPV is approximately $64 billion [4] Group 2: Competitive Landscape - MELI faces competition from StoneCo (STNE) and DLocal (DLO), both of which are expanding in key Latin American markets [5][6] - StoneCo processed R$133.5 billion ($24.7 billion) in TPV in Q1 2025, with a client base of 4.4 million [5] - DLocal achieved $8.1 billion in TPV in Q1 2025, marking a 53% year-over-year increase [6] Group 3: Strategic Focus and Future Outlook - MELI is concentrating on serving small and medium-sized businesses while enhancing support for micro-sellers [3] - The company is improving recurring payment features, adding point-of-sale devices, and providing business tools for inventory and billing [3] - By integrating credit, banking, payments, and software, MELI aims to facilitate digital participation for more individuals and businesses [4] Group 4: Stock Performance and Valuation - MELI shares have increased by 41.2% year-to-date, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.90X, compared to the industry's 2.17X [11] - The Zacks Consensus Estimate for Q2 2025 earnings is $12.01 per share, indicating a 14.60% year-over-year growth [15]

Company Overview - Nu Holdings (NU) shares increased by 3.6%, closing at $13.54, with trading between $13.12 and $13.54 during the day [1] - The stock's rise is attributed to growing analyst confidence, with several Wall Street firms raising their price targets modestly over the past week [1] - Despite the gains, Nu's stock is still 16% below its 52-week high of approximately $16.14 [4] Market Performance - Nu's stock outperformed the Nasdaq Composite, which was up 0.18%, and the S&P 500, which dropped by 0.4% [2] - Trading volume for Nu was around 123 million shares, double the 50-day average of 84.5 million [2] Competitive Landscape - Industry peers also experienced gains, with Inter & Co (INTR) rising by 4% to $7.05, reflecting strength after recent earnings and supportive central bank signals for digital lenders [3] - In contrast, StoneCo (STNE) declined by 2% to $14.87 despite the broader tech momentum this year [3] Analyst Sentiment - The positive reassessments of Nu's stock are driven by accelerating user metrics and promising early results from its credit card and loan offerings in new Latin American markets [4] - If Nu continues to execute well, further price target revisions may occur [4]

Core Concept - The price-to-book (P/B) ratio is a key metric for value investors to identify undervalued stocks with potential for exceptional returns, calculated as market price per share divided by book value per share [1][5] Understanding 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 [3][4] P/B Ratio Insights - A P/B ratio under 1.0 indicates a potentially undervalued stock, while a ratio above 1.0 suggests overvaluation [5][6] - Stocks with low P/B ratios can indicate strong growth prospects, but a low ratio may also reflect weak asset returns or overstated assets [7][8] Screening Parameters for Value Stocks - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry median, and a P/E ratio using F(1) estimates lower than the industry median [11][12] - A PEG ratio under 1 indicates undervaluation relative to growth prospects, and stocks must trade at a minimum price of $5 [13] - High trading volume and favorable Zacks Rank (1 or 2) are also important criteria for screening [14] Identified Low P/B Stocks - Centene Corporation (CNC) has a projected 3-5 year EPS growth rate of 11.5% and holds a Zacks Rank of 2 with a Value Score of A [16] - CVS Health (CVS) has a projected EPS growth rate of 11.4% and also holds a Zacks Rank of 2 with a Value Score of A [16] - The ODP Corporation (ODP) has a projected EPS growth rate of 14% and holds a Zacks Rank of 1 with a Value Score of A [17] - StoneCo (STNE) has a projected EPS growth rate of 25.3% and holds a Zacks Rank of 2 with a Value Score of B [18] - Paysafe Limited (PSFE) has a projected EPS growth rate of 17.9% and holds a Zacks Rank of 1 with a Value Score of A [19]

Core Insights - The markets started 2025 positively but have faced increased volatility due to the Trump administration's tariff plans and geopolitical uncertainties, leading to cautious investor behavior [1] Company Analysis - StoneCo Ltd. (STNE) is projected to have a sales growth rate of 10.9% in 2025 and currently holds a Zacks Rank 1, indicating strong buy potential [12] - Cullen/Frost Bankers, Inc. (CFR) is expected to see a sales growth rate of 4.6% in 2025 and also holds a Zacks Rank 1 [13] - Intuit Inc. (INTU) is anticipated to achieve a sales increase of 15.1% in fiscal 2025, the highest among the highlighted stocks, and has a Zacks Rank 1 [14] - The Mosaic Company (MOS) is expected to grow sales by 11.5% in 2025 and currently has a Zacks Rank 2 [15] Investment Strategy - A focus on companies with strong sales growth and high cash balances is essential for identifying potential investment opportunities [6] - Key screening parameters include a 5-Year Historical Sales Growth (%) greater than the industry average and cash flow exceeding $500 million [6] - Additional metrics for stock selection include a P/S Ratio lower than the industry average, positive sales estimate revisions, operating margin greater than 5%, and a Return on Equity (ROE) greater than 5% [7][8][9]

Core Insights - Value investing provides an opportunity to acquire overlooked stocks that are trading at low multiples, particularly using the price-to-book (P/B) ratio as a metric for identifying potential bargains with high-growth prospects [1][2] Understanding P/B Ratio - The P/B ratio is calculated as market capitalization divided by book value of equity, helping to identify low-priced stocks with high growth potential [2] - A P/B ratio of less than one indicates that a stock is undervalued, while a ratio greater than one suggests it may be overvalued [5][6] - The P/B ratio is particularly relevant for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenditures or significant debt [8] Screening Parameters - Stocks were screened based on several criteria, including a P/B ratio less than the industry median, a P/S ratio lower than the industry average, and a PEG ratio of less than 1, indicating undervaluation relative to growth prospects [11][12][13] - Additional criteria included a minimum current price of $5, an average 20-day trading volume of at least 100,000, and a Zacks Rank of 1 or 2, which indicates strong buy potential [14] Selected Stocks - Five stocks identified with low P/B ratios and strong projected EPS growth include: - **USANA Health Sciences (USNA)**: Projected 3-5 year EPS growth rate of 12.0%, Zacks Rank 2, Value Score A [15] - **CVS Health (CVS)**: Projected 3-5 year EPS growth rate of 11.4%, Zacks Rank 2, Value Score A [16] - **Pfizer (PFE)**: Projected 3-5 year EPS growth rate of 9.0%, Zacks Rank 2, Value Score A [17] - **StoneCo (STNE)**: Highest projected 3-5 year EPS growth rate at 26.3%, Zacks Rank 1, Value Score B [10][18] - **Paysafe Limited (PSFE)**: Projected 3-5 year EPS growth rate of 17.9%, Zacks Rank 2, Value Score A [19]