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EDU vs. UTI: Which Stock Should Value Investors Buy Now?
ZACKS· 2026-03-26 16:41
Core Viewpoint - New Oriental Education (EDU) is currently viewed as a more attractive investment compared to Universal Technical Institute (UTI) based on various valuation metrics and earnings outlook [1][3][6] Valuation Metrics - EDU has a forward P/E ratio of 15.15, significantly lower than UTI's forward P/E of 51.51, indicating that EDU may be undervalued [5] - The PEG ratio for EDU is 0.81, while UTI's PEG ratio is 3.43, suggesting that EDU offers better value when considering expected earnings growth [5] - EDU's P/B ratio stands at 2.12, compared to UTI's P/B of 6.5, further supporting the notion that EDU is a more favorable investment option [6] Analyst Outlook - EDU holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while UTI has a Zacks Rank of 3 (Hold), reflecting a less favorable analyst outlook [3][6] - Based on the combination of valuation metrics and analyst ratings, EDU is positioned as the superior value option in the education sector [6]
Conagra Brands Q3 Earnings on Deck: What Should Investors Expect?
ZACKS· 2026-03-26 15:50
Core Viewpoint - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2026, with revenue estimated at $2.77 billion, reflecting a 2.6% decrease from the previous year [1]. Revenue and Earnings Estimates - The consensus estimate for earnings remains at 40 cents per share, indicating a 21.6% drop from the same quarter last year [2]. - CAG has a trailing four-quarter earnings surprise average of 3.4% [2]. Factors Influencing Q3 Results - The company is facing continued pressure on sales and earnings due to a cautious consumer environment, particularly among lower and middle-income shoppers [3]. - Weather disruptions and SNAP-related timing issues have negatively impacted prior-period trends, complicating the operating environment [3]. - The timing of retailer orders and promotions has also influenced results, with some promotional activities shifting from the second to the third quarter, potentially affecting shipment volumes [4]. Profitability and Margin Outlook - Profit margins are expected to remain under pressure due to high input costs and ongoing investments in the business, with adjusted gross margins projected to contract by 160 basis points [5]. - Inflation in commodities and packaging has contributed to elevated costs, while increased spending on advertising and promotions has further impacted earnings [5]. Positive Trends - Despite challenges, there are signs of improvement in the frozen and snacks segments, supported by innovation and better promotional activities, which may provide some cushion [6]. - A volume increase of 1.5% is anticipated for the Refrigerated & Frozen segment for the quarter [6]. Earnings Prediction Insights - Current models do not predict a definitive earnings beat for Conagra Brands, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [7].
Wall Street Analysts See a 33.32% Upside in Kontoor (KTB): Can the Stock Really Move This High?
ZACKS· 2026-03-26 14:56
Core Viewpoint - Kontoor Brands (KTB) shows potential for significant upside, with a mean price target of $92.67 indicating a 33.3% increase from the current price of $69.51 [1] Price Targets - The average price target consists of nine estimates ranging from a low of $50.00 to a high of $131.00, with a standard deviation of $22.01, indicating variability among analysts [2] - The lowest estimate suggests a decline of 28.1%, while the highest indicates an 88.5% upside potential [2] Analyst Consensus and Earnings Estimates - Analysts are increasingly optimistic about KTB's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [4][11] - The Zacks Consensus Estimate for the current year has risen by 11.6% over the past month, with one estimate increasing and no negative revisions [12] Zacks Rank - KTB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside [13] Price Movement Insights - While the consensus price target may not be a reliable indicator of the extent of KTB's potential gains, it does provide a useful guide for the direction of price movement [14]
Does Vanguard Long-Term Tax-Exempt Bond ETF Shares (ASUR) Have the Potential to Rally 66.83% as Wall Street Analysts Expect?
ZACKS· 2026-03-26 14:56
Core Viewpoint - Shares of Vanguard Long-Term Tax-Exempt Bond ETF Shares (ASUR) have increased by 7.7% in the past four weeks, closing at $7.99, with a potential upside of 66.8% based on Wall Street analysts' mean price target of $13.33 [1] Price Targets - The average of nine short-term price targets ranges from a low of $11.00 to a high of $15.00, with a standard deviation of $1.41, indicating a potential increase of 37.7% to 87.7% from the current price level [2] - A low standard deviation suggests greater agreement among analysts regarding the price targets, which can be a useful indicator for further research [2][9] Analyst Sentiment - Analysts have shown increasing optimism about ASUR's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price movements [4][11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 7.3%, with two estimates moving higher and no negative revisions [12] Zacks Rank - ASUR currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [13] Conclusion on Price Targets - While the consensus price target may not be a reliable measure of ASUR's potential gains, the implied direction of price movement appears to be a useful guide for investors [14]
Why Air Products and Chemicals (APD) is a Top Momentum Stock for the Long-Term
ZACKS· 2026-03-26 14:50
Core Insights - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance over the next 30 days [2][3][4][5][6]. Group 1: Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each assessing different investment characteristics [3][4][5][6]. - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3]. - Growth Score evaluates a company's future prospects through projected earnings and sales growth [4]. - Momentum Score identifies stocks with favorable price trends based on recent price changes and earnings estimate revisions [5]. - VGM Score combines the three styles to highlight stocks with attractive value, growth potential, and positive momentum [6]. Group 2: Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [7]. - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8]. - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing upside potential [9][10]. Group 3: Company Spotlight - Air Products and Chemicals - Air Products and Chemicals Inc. is classified as a 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating moderate potential [11]. - The company has a Momentum Style Score of B, with shares increasing by 3.5% over the past four weeks [11]. - For fiscal 2026, the Zacks Consensus Estimate for Air Products' earnings has risen by $0.04 to $13.01 per share, supported by upward revisions from three analysts [12]. - The company has an average earnings surprise of +0.4%, making it a candidate for investors' consideration [12].
Here's Why Phillips 66 (PSX) is a Strong Momentum Stock
ZACKS· 2026-03-26 14:50
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors identify stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with A being the highest score indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with the best value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks, even with good Style Scores, may still face downward price trends, indicating higher risk [11] Company Spotlight: Phillips 66 - Phillips 66 is a diversified energy company with a refining capacity of 2.2 million barrels per day, operating 13 refineries mainly in the U.S. [12] - Currently rated 3 (Hold) with a VGM Score of A, Phillips 66 has a Momentum Style Score of A and has seen a 19.3% increase in shares over the past four weeks [13] - Recent earnings estimates for fiscal 2026 have been revised higher, with the Zacks Consensus Estimate increasing by $1.17 to $12.46 per share, alongside an average earnings surprise of +16.3% [13]
Here's Why Wolverine World Wide (WWW) is a Strong Growth Stock
ZACKS· 2026-03-26 14:45
Company Overview - Wolverine World Wide, Inc. is headquartered in Michigan and is involved in the design, manufacturing, and distribution of a variety of casual and active apparel and footwear, including children's footwear and industrial boots and accessories [11] - The company is known for its diverse range of footwear styles and designs under well-recognized brand names such as Bates, Chaco, Cat Footwear, Hush Puppies, Harley-Davidson Footwear, Hytest, Merrell, Saucony, Stride Rite, Sweaty Betty, and Wolverine [11] Investment Ratings - Wolverine World Wide holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating a solid overall rating [12] - The company is considered a potential top pick for growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 9% for the current fiscal year [12] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing by $0.12 to $1.46 per share [12] - Wolverine World Wide has demonstrated an average earnings surprise of +31.8%, indicating strong performance relative to expectations [12] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Wolverine World Wide is recommended for investors' consideration [13]
Are Consumer Discretionary Stocks Lagging Johnson Outdoors (JOUT) This Year?
ZACKS· 2026-03-26 14:43
Group 1 - Johnson Outdoor (JOUT) is outperforming its Consumer Discretionary peers with a year-to-date return of approximately 12%, while the sector has an average return of -8.1% [4] - The Zacks Rank for Johnson Outdoor is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings increasing by 9.5% over the past 90 days [3] - Johnson Outdoor is part of the Leisure and Recreation Products industry, which has an average return of -5.3% this year, further highlighting JOUT's strong performance [5] Group 2 - Kontoor Brands (KTB) is another Consumer Discretionary stock that has outperformed the sector with a year-to-date return of 13.8% [4] - The consensus EPS estimate for Kontoor Brands has increased by 11.6% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - Kontoor Brands belongs to the Textile - Apparel industry, which is currently ranked 98 and has a year-to-date return of -7.2% [6]
Has Envela (ELA) Outpaced Other Retail-Wholesale Stocks This Year?
ZACKS· 2026-03-26 14:42
Company Overview - Envela Corporation (ELA) is part of the Retail-Wholesale group, which consists of 195 companies and currently ranks 12 within the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook based on earnings estimates and revisions [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for Envela's full-year earnings has increased by 31.1%, reflecting improved analyst sentiment [4] - Year-to-date, Envela Corporation has gained approximately 30.1%, significantly outperforming the average return of -3.1% for Retail-Wholesale companies [4] Industry Comparison - Envela Corporation operates within the Retail - Jewelry industry, which includes 6 companies and currently ranks 98 in the Zacks Industry Rank. This industry has seen an average gain of 8% year-to-date, indicating that ELA is performing better than its peers [6] - In contrast, Li Ning Co. (LNNGY), another outperforming stock in the Retail-Wholesale sector, belongs to the Retail - Apparel and Shoes industry, which has declined by 9% year-to-date [6]
BrightSpring Health Services, Inc. (BTSG) is a Top-Ranked Value Stock: Should You Buy?
ZACKS· 2026-03-26 14:42
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - The Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - Stocks with higher Style Scores have better chances of outperforming the market, with A being the highest score [2] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable long-term growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify optimal entry points [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum, assisting in narrowing down investment choices [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that simplifies portfolio building by using earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while 3 (Hold) ranked stocks should also have A or B scores for potential upside [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face declining earnings forecasts [11] Company Spotlight: BrightSpring Health Services, Inc. - BrightSpring Health Services, Inc. is a national healthcare services platform focusing on home and community-based care for complex patients, serving all 50 states [12] - The company holds a 1 (Strong Buy) Zacks Rank and a VGM Score of A, with a Value Style Score of B, supported by a forward P/E ratio of 27.86 [13] - Recent upward revisions in earnings estimates by six analysts for fiscal 2026 have increased the Zacks Consensus Estimate by $0.21 to $1.61 per share, with an average earnings surprise of +40.4% [13] - With strong rankings and Style Scores, BrightSpring Health Services is recommended for investors [14]