Company Performance - Nextracker's stock closed at $100.24, reflecting a +1.17% change from the previous day's closing price, outperforming the S&P 500's daily loss of 0.19% [1] - The stock has increased by 13.68% over the past month, significantly surpassing the Oils-Energy sector's gain of 0.24% and the S&P 500's gain of 2.26% [1] Upcoming Earnings Report - Nextracker is set to release its earnings on January 27, 2026, with an expected EPS of $0.93, indicating a 9.71% decrease from the same quarter last year [2] - The consensus estimate anticipates revenue of $814.64 million, representing a 19.91% increase from the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $4.17 per share and revenue of $3.39 billion, reflecting changes of -1.18% and +14.63% respectively from the previous year [3] - Recent changes to analyst estimates for Nextracker may indicate shifting near-term business trends, with positive revisions seen as a favorable sign for the business outlook [3] Valuation Metrics - Nextracker has a Forward P/E ratio of 23.78, which is higher than the industry average of 21.21, indicating that Nextracker is trading at a premium [6] - The company currently has a PEG ratio of 2.89, compared to the industry average PEG ratio of 0.67, suggesting a higher expected earnings growth rate relative to its peers [6] Industry Context - The solar industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 26, placing it in the top 11% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - American Express (AXP) closed at $359.59, down 4.27% from the previous trading session, underperforming the S&P 500's gain of 0.16% [1] - Over the past month, AXP shares have decreased by 1.82%, lagging behind the Finance sector's gain of 3.24% and the S&P 500's gain of 1.89% [1] Upcoming Earnings Report - The company is set to release its earnings on January 30, 2026, with expected earnings of $3.55 per share, reflecting a year-over-year growth of 16.78% [2] - Revenue is anticipated to be $18.86 billion, indicating a 9.78% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $15.41 per share, showing a growth of 15.43%, while revenue is expected to remain flat at $72.11 billion [3] - Recent adjustments to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analyst optimism [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 ranked stocks have yielded an average annual return of +25% since 1988 [5] - American Express currently holds a Zacks Rank of 3 (Hold), with a recent 0.13% increase in the consensus EPS estimate over the last 30 days [5] Valuation Metrics - The current Forward P/E ratio for American Express is 21.38, which is a premium compared to its industry's Forward P/E of 11.84 [6] - The company has a PEG ratio of 1.57, indicating a higher valuation relative to the average PEG ratio of 0.94 for Financial - Miscellaneous Services stocks [7] Industry Context - The Financial - Miscellaneous Services industry, part of the Finance sector, has a Zacks Industry Rank of 157, placing it in the bottom 36% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Lowe's stock closed at $271.47, reflecting a +1.59% increase from the previous day, outperforming the S&P 500's daily gain of 0.16% [1] - Over the past month, Lowe's shares have appreciated by 8.06%, surpassing the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 1.89% [1] Upcoming Earnings - Lowe's earnings report is scheduled for February 25, 2026, with expected earnings of $1.95 per share, indicating a year-over-year growth of 1.04% [2] - The consensus estimate projects revenue of $20.35 billion for the upcoming quarter, reflecting a 9.71% increase from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.26 per share and revenue of $86.06 billion, showing changes of +2.17% and +2.85% respectively from the previous year [3] - Recent changes to analyst estimates for Lowe's suggest optimism about the business outlook, as positive revisions often correlate with near-term stock price movements [3][4] Valuation Metrics - Lowe's is currently trading at a Forward P/E ratio of 21.8, which is lower than the industry average of 22.9, indicating a potential discount [6] - The company's PEG ratio stands at 4.43, compared to the Retail - Home Furnishings industry's average PEG ratio of 2.26 [7] Industry Ranking - The Retail - Home Furnishings industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 167, placing it in the bottom 32% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Shopify's stock closed at $167.93, reflecting a 2.1% increase from the previous trading session, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, Shopify's stock has increased by 0.18%, while the Computer and Technology sector has seen a decline of 0.85% [1] Upcoming Earnings Report - Analysts expect Shopify to report earnings of $0.5 per share, representing a year-over-year growth of 13.64% [2] - The consensus estimate for revenue is $3.58 billion, indicating a 27.33% increase from the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates project earnings of $1.45 per share and revenue of $11.46 billion for the year, reflecting changes of +11.54% in earnings and 0% in revenue compared to the previous year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates are crucial for investors, as positive revisions indicate optimism regarding Shopify's business and profitability [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings for stocks [4] Zacks Rank and Valuation - Shopify currently holds a Zacks Rank of 4 (Sell), with a 0.4% decrease in the consensus EPS estimate over the last 30 days [5] - The company is trading at a Forward P/E ratio of 93.19, significantly higher than the industry average of 17.85 [5] PEG Ratio and Industry Context - Shopify has a PEG ratio of 3.77, compared to the industry average PEG ratio of 1.74 [6] - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [6]

Company Performance - Advanced Micro Devices (AMD) ended the recent trading session at $207.67, showing a +2.21% change from the previous day's closing price, outperforming the S&P 500's gain of 0.16% [1] - Over the past month, AMD shares experienced a loss of 3.61%, underperforming the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89% [1] Upcoming Earnings Report - AMD is scheduled to release its earnings on February 3, 2026, with projected earnings of $1.31 per share, indicating a year-over-year growth of 20.18% [2] - The consensus estimate for revenue is $9.64 billion, reflecting a 25.88% increase from the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates anticipate earnings of $3.96 per share and revenue of $33.94 billion, representing shifts of +19.64% and 0% respectively from the previous year [3] - Recent changes to analyst estimates suggest a favorable outlook on AMD's business health and profitability [3] Stock Performance and Valuation - The Zacks Rank system, which evaluates estimate changes, indicates that AMD currently holds a Zacks Rank of 3 (Hold) [5] - AMD's Forward P/E ratio is 32.47, which is a premium compared to the industry average of 24.02 [6] - The company has a PEG ratio of 0.75, lower than the industry average PEG ratio of 0.92 [7] Industry Context - The Computer - Integrated Systems industry, which includes AMD, has a Zacks Industry Rank of 24, placing it in the top 10% of over 250 industries [8] - Research indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Duolingo, Inc. (DUOL) closed at $161.74, reflecting an -8.45% change from the previous day's closing price, which is less than the S&P 500's daily gain of 0.16% [1] - Prior to the recent trading session, Duolingo's shares had decreased by 10%, underperforming the Business Services sector's gain of 3.4% and the S&P 500's gain of 1.89% [1] Upcoming Earnings - Analysts expect Duolingo to report earnings of $0.78 per share, indicating a year-over-year growth of 151.61% [2] - The consensus estimate for revenue is $275.88 million, which represents a 31.65% increase from the same quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates project Duolingo's full-year earnings at $8.37 per share and revenue at $1.03 billion, reflecting year-over-year changes of +345.21% for earnings and 0% for revenue [3] - Recent modifications to analyst estimates suggest a positive outlook for the company's near-term business trends [3] Valuation Metrics - Duolingo is currently trading at a Forward P/E ratio of 43.37, significantly higher than the industry average of 17.5, indicating a premium valuation [6] - The company's PEG ratio stands at 0.93, compared to the Technology Services industry's average PEG ratio of 1.44 [7] Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 155, placing it within the bottom 37% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Kuehne & Nagel International Ag (KHNGY) is currently viewed as a more attractive investment option compared to C.H. Robinson Worldwide (CHRW) based on valuation metrics and earnings outlook [3][7]. Valuation Metrics - KHNGY has a forward P/E ratio of 23.82, while CHRW has a higher forward P/E of 29.14 [5]. - KHNGY's PEG ratio is 1.30, indicating a better valuation relative to its expected earnings growth compared to CHRW's PEG ratio of 1.85 [5]. - KHNGY has a P/B ratio of 10.1, which is lower than CHRW's P/B ratio of 10.86, suggesting KHNGY is more favorably valued in terms of market value to book value [6]. Earnings Outlook - KHNGY holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while CHRW has a Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for KHNGY suggests an improving earnings outlook compared to CHRW [7]. Value Grades - KHNGY has a Value grade of B, while CHRW has a Value grade of D, indicating that KHNGY is perceived as a better value investment [6].

Core Viewpoint - Investors in the Medical - Dental Supplies sector should consider The Cooper Companies (COO) and West Pharmaceutical Services (WST) for potential investment opportunities, with a focus on which stock is more appealing to value investors [1] Group 1: Zacks Rank and Earnings Outlook - The Cooper Companies has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to West Pharmaceutical Services, which has a Zacks Rank of 3 (Hold) [3] - The improvement in earnings outlook for COO is likely more significant than that of WST [3] Group 2: Valuation Metrics - COO has a forward P/E ratio of 18.52, while WST has a forward P/E of 35.98, suggesting that COO may be undervalued relative to WST [5] - The PEG ratio for COO is 2.38, compared to WST's PEG ratio of 3.80, indicating that COO has a more favorable growth outlook relative to its valuation [5] - COO's P/B ratio is 2.01, while WST's P/B ratio is significantly higher at 6.5, further suggesting that COO is a better value option [6] Group 3: Value Grades - Based on various valuation metrics, COO holds a Value grade of B, whereas WST has a Value grade of D, reinforcing the notion that COO is the more attractive option for value investors [6]

Summary of Key Points from the Conference Call Industry Overview - The report discusses the equity market dynamics and forecasts for 2026, indicating a broadening bull market in the technology sector and beyond [2][25]. Core Insights and Arguments - In 2025, nearly all major equity markets outperformed the US in both local and USD terms, suggesting a shift in global investment dynamics [4][25]. - The PEG ratio, which compares the price-to-earnings ratio to earnings growth, has been closing between the US and the rest of the world, indicating a potential revaluation of equities globally [7][8]. - Equity valuations across regions are now at historical highs, with the US showing a P/E multiple of 22.4, compared to lower multiples in other regions [17][19]. - Earnings models predict moderate profit growth ahead, with estimates for 2026 EPS growth at 12% for the S&P 500 and 5% for the STOXX 600 [21][24]. - The report forecasts potential upside for global equities in 2026, with the US expected to marginally underperform compared to other regions [25]. Additional Important Insights - Value versus growth dynamics have diverged between the US and Europe, indicating different investment strategies may be required in these markets [27]. - Sector and style performances are reflecting broad diversification, with various sectors contributing differently to total returns [30][32]. - Pairwise correlations among large AI hyperscalers have decreased, suggesting a more attractive opportunity set for alpha generation in the tech sector [34][37]. - The report emphasizes the importance of considering multiple factors in investment decisions, highlighting the need for a comprehensive approach to equity analysis [2][58]. This summary encapsulates the key points from the conference call, focusing on the industry dynamics, core insights, and additional important observations that may influence investment strategies moving forward.

Company Performance - Quanta Services (PWR) closed at $422.57, marking a +2.28% move from the previous day, outperforming the S&P 500 which gained 0.65% [1] - The company’s shares have lost 11.51% in the past month, while the Construction sector gained 0.07% and the S&P 500 gained 1.15% [2] Earnings Projections - The upcoming EPS for Quanta Services is projected at $3, indicating a 2.04% increase compared to the same quarter of the previous year, with quarterly revenue expected to be $7.31 billion, up 11.57% from the year-ago period [3] - For the full year, earnings are projected at $10.59 per share and revenue at $27.95 billion, representing changes of +18.06% and 0% respectively from the prior year [4] Analyst Estimates and Rankings - Recent changes to analyst estimates for Quanta Services reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system currently rates Quanta Services at 3 (Hold), with an unchanged EPS estimate over the last 30 days [6] Valuation Metrics - Quanta Services has a Forward P/E ratio of 33.37, indicating a premium compared to its industry's Forward P/E of 23.99 [7] - The company has a PEG ratio of 1.84, compared to the Engineering - R and D Services industry average PEG ratio of 1.7 [8] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 103, placing it in the top 43% of all 250+ industries [9]