Investors with an interest in Consumer Products - Staples stocks have likely encountered both National Vision (EYE) and Hermes International SA - Unsponsored ADR (HESAY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estima ...

Core Insights - Thermo Fisher Scientific Inc. (TMO) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $6.57, exceeding the Zacks Consensus Estimate by 2.1% and reflecting a year-over-year increase of 7.7% [1][9] - The company's full-year adjusted EPS reached $22.87, surpassing the Zacks Consensus Estimate by 0.6% and showing a 4.6% year-over-year growth [2] Revenue Performance - TMO's revenues for the fourth quarter increased by 7.1% year over year to $12.22 billion, exceeding the Zacks Consensus Estimate by 2.3% [3][9] - For the full year, revenues rose 3.9% year over year to $44.56 billion, also surpassing the Zacks Consensus Estimate by 0.6% [3] Segment Analysis - Life Sciences Solutions segment revenues (24.1% of total revenues) grew by 13.5% year over year to $2.95 billion [4] - Analytical Instruments segment revenues (18.1%) increased by 1.4% year over year to $2.22 billion [5] - Specialty Diagnostics segment revenues (10%) rose by 5.2% year over year to $1.22 billion [6] - Laboratory Products and Biopharma Services segment revenues (52.2%) increased by 7.4% year over year to $6.38 billion [7] Margin and Cost Analysis - The gross margin for the fourth quarter was 41.5%, contracting by 150 basis points year over year due to a 10% rise in the cost of revenues [8] - Selling, general, and administrative expenses increased by 7.1% to $1.98 billion, while research and development expenses decreased by 4.5% year over year to $357 million [8] Financial Position - At the end of the fourth quarter, TMO had cash and cash equivalents and short-term investments totaling $10.11 billion, a significant increase from $3.55 billion at the end of the third quarter [10] - Cumulative net cash from operating activities at the end of the fourth quarter was $7.82 billion, down from $8.67 billion a year ago [10] Strategic Developments - TMO made several high-impact product launches in the fourth quarter, including the Helios MX1 Plasma Focused Ion Beam Scanning Electron Microscope, and received FDA approval for the Ion Torrent Oncomine Dx Target Test and the EXENT System, which are expected to support future growth [12][13]

Core Viewpoint - National Vision (EYE) shares have increased by 1.8% over the past four weeks, closing at $26.4, with a mean price target of $33.18 indicating a potential upside of 25.7% according to Wall Street analysts [1] Price Targets and Analyst Estimates - The mean estimate consists of 11 short-term price targets with a standard deviation of $4.29, where the lowest estimate is $27.00 (2.3% increase) and the highest is $39.00 (47.7% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [2][9] Earnings Estimates and Market Sentiment - Analysts are optimistic about EYE's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has shown a strong correlation with near-term stock price movements [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 5%, with one estimate moving higher and no negative revisions [12] Zacks Rank and Investment Potential - EYE currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Company Overview - National Vision Holdings, Inc. is a leading and rapidly growing optical retailer in the United States, positioned strongly in the attractive value segment of the U.S. optical retail industry [11]. Investment Ratings - National Vision is rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, indicating a favorable investment outlook [11]. Momentum and Performance - The company has a Momentum Style Score of B, with shares increasing by 1.8% over the past four weeks [12]. - An analyst has revised their earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $0.70 per share [12]. - National Vision boasts an average earnings surprise of +21%, highlighting its strong performance relative to expectations [12].

Core Viewpoint - National Vision (EYE) is a strong candidate for investors looking for a stock that has consistently beaten earnings estimates and is well-positioned for future performance [1] Earnings Performance - National Vision has a strong track record of surpassing earnings estimates, averaging a 23.40% beat over the last two quarters [2] - In the most recent quarter, the company reported earnings of $0.13 per share against an expectation of $0.12, resulting in an 8.33% surprise [3] - For the previous quarter, National Vision's earnings of $0.18 per share exceeded the consensus estimate of $0.13, leading to a surprise of 38.46% [3] Earnings Estimates and Predictions - Estimates for National Vision have been trending higher, influenced by its history of earnings surprises [6] - The stock has a positive Zacks Earnings ESP of +9.09%, indicating that analysts are optimistic about the company's earnings prospects [9] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a high likelihood of another earnings beat [9] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] Investment Strategy - It is crucial for investors to check a company's Earnings ESP before quarterly releases to enhance the likelihood of successful investments [10]

Financial Data and Key Metrics Changes - The company reported a significant increase in share price, up over 170% in 2025, indicating a positive market response to its transformation strategy [3] - Operating margin expansion of 120 basis points was achieved through Q3 2025, reflecting improved profitability [9] Business Line Data and Key Metrics Changes - The company is focusing on premium product offerings, with the percentage of frames priced over $99 increasing from 20% to 40% by the end of 2025 [13] - Managed care transactions now account for approximately 40% of the business mix, up from low single digits when the company was founded [18] Market Data and Key Metrics Changes - The managed vision care segment constitutes 70% of the eyewear category, providing a resilient market backdrop for the company [31] - The competitive landscape includes independent optometrists holding about 50% of the market, with the company positioned uniquely with over 2,000 employed optometrists [34] Company Strategy and Development Direction - The company is transitioning to a more innovative digital model, enhancing customer experience and product assortment [2] - Key strategic pillars include underdeveloped customer segments, product mix, customer experience, and new store growth, all aimed at expanding operating margins [7][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to control its destiny through effective execution of its strategic plan, despite potential macroeconomic challenges [41] - The company aims for high single-digit revenue growth and mid-single-digit comparable store sales growth over the next five years [37] Other Important Information - The company is investing in remote health technology, with over 10% of exams now conducted remotely, indicating a shift towards telehealth services [35] - A new CRM platform is being implemented to enhance marketing capabilities and consumer engagement [36] Q&A Session Summary Question: What is the current status of the company's transformation? - Management indicated that the transformation is still in early stages, with positive early results in profitability and customer segmentation [5][6] Question: How does the company plan to drive value for shareholders? - The focus is on expanding operating margins through targeted customer segments and premium product offerings, with a significant difference in profitability between consumer types [9][24] Question: How sensitive is the business to macroeconomic shifts? - The company operates in a resilient category, with managed vision care providing stability, and management believes they can navigate macroeconomic challenges effectively [31][41]

Financial Data and Key Metrics Changes - The company reported a significant increase in share price, up over 170% in 2025, indicating a positive market response to its transformation strategy [3] - Operating margin expansion of 120 basis points was achieved through Q3 2025, reflecting improved profitability [9] Business Line Data and Key Metrics Changes - The company is focusing on premium product offerings, with the percentage of frames priced over $99 increasing from 20% in 2024 to 40% by the end of 2025, indicating a shift towards higher-margin products [13] - Managed care transactions now account for approximately 40% of the business mix, up from low single digits when the company was founded, showcasing a successful strategy to attract this segment [18] Market Data and Key Metrics Changes - The managed vision care segment constitutes 70% of the overall category, with the company currently capturing 40% of that market, suggesting room for growth [31] - The competitive landscape includes independent optometrists holding about 50% of the market, with the company positioned uniquely with over 2,000 employed optometrists [34] Company Strategy and Development Direction - The company is transitioning from an analog model to a digitally driven approach, focusing on customer segmentation, product mix, and enhancing customer experience [7][9] - Future growth strategies include a continued emphasis on premiumization of products and leveraging technology for better customer engagement and operational efficiency [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, particularly due to the managed care component, which provides stability against macroeconomic shifts [31][41] - The company aims for high single-digit revenue growth and mid-single-digit comparable store sales growth over the next five years, with a focus on operating margin expansion [37] Other Important Information - The company has invested in remote health technology, with over 10% of exams now conducted remotely, indicating a strategic shift towards telehealth services [35] - A new CRM platform is being implemented to enhance marketing capabilities and improve customer acquisition strategies [36] Q&A Session Summary Question: What is the current status of the transformation strategy? - Management indicated that they are in the early stages of transformation, with early actions yielding stronger profitability and better comparable sales [5][6] Question: How does the company plan to drive value for shareholders? - The focus is on expanding operating margins through targeted customer segments and premium product offerings, which are expected to yield higher gross margins [9] Question: How sensitive is the business to macroeconomic shifts? - The company believes it operates in a resilient category, with managed vision care providing a buffer against economic fluctuations [31]

Financial Data and Key Metrics Changes - The company reported a significant increase in share price, up over 170% in 2025, indicating strong market performance and investor confidence [3] - Operating margin expansion of 120 basis points through Q3 2025, reflecting improved profitability [12] Business Line Data and Key Metrics Changes - The company is focusing on evolving its product mix, with a shift towards premium frames and lenses, which are expected to generate higher gross margin dollars [12][19] - The percentage of frames priced over $99 increased from 20% in 2024 to 40% by the end of 2025, indicating a strategic shift towards higher-value offerings [18] Market Data and Key Metrics Changes - Managed care transactions now account for approximately 40% of the company's mix, up from low single digits when the company was founded, showcasing a successful shift in customer targeting [23] - The eyewear category is described as resilient, with 70% of the market driven by managed vision care, which is expected to grow [37] Company Strategy and Development Direction - The company is transitioning from an analog model to a digitally driven approach, focusing on customer segmentation, product mix, customer experience, and new store growth [8][12] - Investments in remote health technology and a revamped CRM platform are part of the strategy to enhance customer engagement and operational efficiency [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's insulated position against macroeconomic shifts due to the nature of the eyewear category and its reliance on managed care [37][48] - The long-term growth algorithm targets high single-digit revenue growth and mid-single-digit same-store sales growth, with a focus on operating margin expansion [44] Other Important Information - The company plans to continue investing 4%-5% of revenue into capital expenditures annually, with a focus on store refreshes and strategic initiatives [45] - The introduction of premium products, such as Ray-Ban Meta smart glasses, has been well received, indicating a positive consumer response to the evolving product assortment [18][19] Q&A Session Summary Question: What is the current competitive landscape for National Vision? - The company operates in a resilient category, with 50% of the market held by independent optometrists and a growing share of managed care consumers [39] Question: How has telehealth impacted the company's strategy? - The company has invested in remote health technology, with over 10% of exams now conducted remotely, indicating a shift towards more accessible care [41] Question: What are the long-term financial targets for investors? - The company aims for high single-digit revenue growth and mid-single-digit comps, with operating margin expansion of 50 to 150 basis points annually [44]

Core Insights - National Vision (EYE) has experienced a significant share price increase of 154.6% over the past 12 months, outperforming the industry decline of 13.9% and the S&P 500's growth of 16.4% [1][9] Company Performance - National Vision holds a Zacks Rank 3 (Hold) and is benefiting from the strong performance of its America's Best brand, with strategic initiatives showing early progress [2] - The company operates 1,242 retail stores across four brands and has a distribution network that includes a 118,000-square-foot center in Georgia and a 52,000-square-foot center in Ohio [3] Revenue Growth - The Owned & Host segment of National Vision reported a 9.1% year-over-year revenue increase in Q3 2025, primarily driven by America's Best brand [4][9] - The company opened four new America's Best stores and converted four Eyeglass World locations during the September 2024 to September 2025 period [5] Strategic Initiatives - National Vision is enhancing its Eyeglass World operations with a new leadership team and expanding remote exam capabilities, with two-thirds of its stores now equipped for remote technology [6] - The company is testing smaller store formats for America's Best and is incorporating insights from a fleet optimization review into future growth plans [5][6] Customer Engagement - Early indicators of stronger customer engagement are noted, supported by a new marketing strategy and customer relationship management (CRM) platform [10] - Newly introduced premium frames are selling faster than expected, indicating positive consumer response [10] Financial Estimates - The Zacks Consensus Estimate projects a 32.6% increase in earnings per share (EPS) for 2025, reaching $0.69, and a 26.8% increase for 2026, reaching $0.88 [12] - Revenues are expected to grow by 5.2% to $1.98 billion in 2025 and reach $2.05 billion in 2026, implying a 3.3% increase [12]

Core Insights - National Vision's shares have increased by approximately 19.9% over the past month, outperforming the S&P 500 [1] - The upcoming earnings release is anticipated to be influenced by recent performance trends and analyst reactions [2] Financial Performance - In Q3 2025, National Vision reported adjusted earnings per share of 13 cents, an increase from 12 cents year-over-year, exceeding the Zacks Consensus Estimate by 8.33% [3] - The company's net revenues for Q3 totaled $487.3 million, reflecting a year-over-year growth of 7.9% and surpassing the Zacks Consensus Estimate by 2.69% [4] Future Outlook - National Vision has revised its full-year net revenue guidance to a range of $1.970 billion to $1.988 billion, up from a previous estimate of $1.934 billion to $1.970 billion [5] - Adjusted comparable store sales are now expected to grow by 5.0% to 6.0%, an increase from the earlier forecast of 3.0% to 5.0% [5] - The adjusted earnings per share estimate for 2025 has been updated to a range of 63 to 71 cents, compared to the previous range of 62 to 70 cents [5] Estimate Revisions - Consensus estimates have remained stable over the past month, with a shift of 16.67% noted [6] Stock Performance Metrics - National Vision holds an average Growth Score of C and a Momentum Score of B, with an overall VGM Score of C, indicating a middle-tier position for value investors [7] - The company currently has a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [8] Industry Comparison - National Vision operates within the Zacks Consumer Products - Staples industry, where Colgate-Palmolive has seen a modest gain of 0.4% over the past month [9] - Colgate-Palmolive reported revenues of $5.13 billion for the quarter ended September 2025, marking a year-over-year increase of 1.9% [10] - The overall estimate revisions for Colgate-Palmolive have resulted in a Zacks Rank of 4 (Sell) [11]