*Stock prices used were from the trading day of July 29, 2025. The video was published on July 29, 2025. PayPal remains one of the most undervalued names in my portfolio. In this video, I will discuss PayPal's (PYPL -8.76%) recent earnings report and management's comments during the earnings call. Watch the short video to learn more, consider subscribing, and click the special offer link below. ...

Core Insights - AutoNation, Inc. reported second-quarter 2025 adjusted earnings of $5.46 per share, a 37% increase year over year, exceeding the Zacks Consensus Estimate of $4.70, driven by strong revenues across various segments [1] - Total revenues for the quarter reached $6.97 billion, surpassing the Zacks Consensus Estimate of $6.80 billion and up from $6.48 billion in the same quarter of 2024 [1] Revenue Breakdown - New vehicle revenues increased by 8.8% year over year to $3.40 billion, exceeding the estimate of $3.24 billion, with retail units sold totaling 65,847, a 7.5% increase [2] - Retail used-vehicle revenues rose 5.8% to $1.85 billion, surpassing the projection of $1.76 billion, with used vehicle retail units sold totaling 69,736, a 6.5% increase [3] - Wholesale used vehicle revenues decreased by 16.5% to $140 million, missing the estimate of $164.2 million, although gross profit increased significantly [4] - Finance and insurance business revenues amounted to $367.7 million, a 13.5% increase year over year, beating the projection of $327 million [4] - Parts and service business revenues grew by 9.3% to $1.22 billion, exceeding the estimate of $1.18 billion [5] Segment Performance - Domestic segment revenues rose 10.4% year over year to $1.92 billion, surpassing the projection of $1.75 billion, with income climbing 82.9% to $92 million [6] - Import segment revenues increased 6.4% to $2.15 billion, exceeding the forecast of $2.02 billion, with income rising 23.3% to $133.4 million [6] - Premium Luxury segment sales increased by 6.6% to $2.56 billion, slightly missing the projection of $2.57 billion, but income rose 26.9% to $180.1 million [7] Financial Position - As of June 30, 2025, the company's liquidity stood at $1.8 billion, including $63 million in cash and nearly $1.8 billion available under its revolving credit facility [8] - Inventory was valued at $3.46 billion, with non-vehicle debt at $3.76 billion [9] - Capital expenditure for the quarter was $79 million, and the company repurchased 1.5 million shares for $254 million during the first half of 2025 [9]

Core Insights - Lithia Motors reported revenue of $9.58 billion for the quarter ended June 2025, reflecting a 3.8% increase year-over-year and a surprise of +0.52% over the Zacks Consensus Estimate of $9.53 billion [1] - Earnings per share (EPS) reached $10.24, compared to $7.87 in the same quarter last year, resulting in an EPS surprise of +4.7% against the consensus estimate of $9.78 [1] Financial Performance Metrics - New vehicle retail unit sales were 94,144, below the three-analyst average estimate of 98,009 [4] - Used vehicle retail unit sales totaled 109,053, also below the three-analyst average estimate of 112,524 [4] - The average selling price for new vehicles was $47,782, compared to the average estimate of $48,329.15 [4] - The average selling price for used vehicles was $28,379, exceeding the three-analyst average estimate of $27,338.08 [4] - Fleet and other revenue was $209.5 million, below the five-analyst average estimate of $241.66 million, representing a year-over-year decline of -13.1% [4] - Finance and insurance revenue was $373.8 million, slightly below the average estimate of $388.18 million, but showed a year-over-year increase of +3.6% [4] - Used vehicle wholesale revenue reached $383.1 million, surpassing the five-analyst average estimate of $338.23 million, marking a +32.3% year-over-year increase [4] - Used vehicle retail revenue was $3.09 billion, matching the five-analyst average estimate, with a year-over-year increase of +3.6% [4] - Service, body and parts/aftersales revenue was $1.02 billion, aligning with the average estimate [4] - New vehicle revenue was $4.5 billion, below the five-analyst average estimate of $4.78 billion, reflecting a +2.2% year-over-year increase [4] - Same store operating metrics for service, body and parts/aftersales revenue were $998 million, exceeding the two-analyst average estimate of $903.52 million, with a +28.3% year-over-year change [4] - Same store operating metrics for finance and insurance revenue were $366 million, slightly below the two-analyst average estimate of $368.42 million, showing a +16.7% year-over-year increase [4] Stock Performance - Lithia Motors' shares have returned -9.1% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Sysco reported revenue of $21.14 billion for the quarter ended June 2025, marking a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate by 0.65% [1] - The earnings per share (EPS) for the same period was $1.48, up from $1.39 a year ago, representing a surprise of 5.71% over the consensus estimate of $1.40 [1] Revenue Breakdown - International Foodservice Operations generated $3.93 billion, surpassing the average estimate of $3.88 billion, with a year-over-year change of 3.6% [4] - U.S. Foodservice Operations reported $14.76 billion, slightly above the estimated $14.72 billion, reflecting a 2.4% increase compared to the previous year [4] - Sales from Other operations were $288 million, below the average estimate of $297.6 million, showing a year-over-year decline of 7.1% [4] - SYGMA sales reached $2.16 billion, exceeding the estimated $2.13 billion, with a year-over-year increase of 5.9% [4] Operating Income and Gross Profit - Operating income for Other operations was reported at -$82 million, significantly lower than the average estimate of $18.01 million [4] - SYGMA's operating income was $27 million, slightly above the average estimate of $24.92 million [4] - Gross profit for Other operations was $69 million, below the average estimate of $79.64 million, while SYGMA's gross profit was $170 million, marginally exceeding the estimate of $169.27 million [4] Stock Performance - Sysco's shares have returned 6.1% over the past month, outperforming the Zacks S&P 500 composite's 3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Asbury Automotive Group reported $4.37 billion in revenue for Q2 2025, a 3% year-over-year increase, with an EPS of $7.43 compared to $6.40 a year ago, indicating an EPS surprise of +8.94% against the consensus estimate [1] Financial Performance - Revenue of $4.37 billion was below the Zacks Consensus Estimate of $4.45 billion, representing a surprise of -1.73% [1] - Unit sales for new vehicles were 44,437, slightly below the average estimate of 45,291 [4] - Unit sales for used vehicle retail were 36,233, compared to the average estimate of 36,382 [4] - Average selling price for new vehicles was $51.85 billion, slightly lower than the average estimate of $52.01 billion [4] - Revenues from new vehicles were $2.3 billion, a 6.4% year-over-year increase, compared to the average estimate of $2.31 billion [4] - Revenues from used vehicles were $1.29 billion, a -1.7% change year-over-year, below the average estimate of $1.32 billion [4] - Revenues from parts and service were $601.5 million, a 3.6% year-over-year increase, below the average estimate of $624.93 million [4] - Revenues from finance and insurance net were $182 million, a -5.4% change year-over-year, below the average estimate of $203.25 million [4] - Revenues from used vehicle retail were $1.13 billion, a -3.2% change year-over-year, below the average estimate of $1.15 billion [4] - Revenues from used vehicle wholesale were $156.3 million, a 10.9% year-over-year increase, above the average estimate of $153.27 million [4] Stock Performance - Asbury Automotive shares returned -3.9% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Norfolk Southern reported revenue of $3.11 billion for the quarter ended June 2025, reflecting a 2.2% increase year-over-year, but a slight miss of 0.76% against the Zacks Consensus Estimate of $3.13 billion [1] - The earnings per share (EPS) for the quarter was $3.29, up from $3.06 in the same quarter last year, exceeding the consensus EPS estimate of $3.27 by 0.61% [1] Financial Performance Metrics - Total carloads volume was 1.79 million, slightly below the four-analyst average estimate of 1.81 million [4] - Coal carloads volume was 181.7 thousand, surpassing the average estimate of 176.35 thousand [4] - The Railway Operating Ratio was reported at 63.4%, higher than the average estimate of 62.6% [4] - Merchandise railway operating revenues totaled $1.97 billion, matching the average estimate and showing a year-over-year increase of 3.6% [4] - Specific merchandise categories showed varied performance: - Agriculture, forest and consumer products revenue was $645 million, slightly above the estimate of $643.81 million, with a year-over-year increase of 3.7% [4] - Coal revenue was $395 million, slightly below the estimate of $396.48 million, reflecting a year-over-year decrease of 0.8% [4] - Chemicals revenue was $546 million, slightly below the estimate of $549.39 million, with a year-over-year increase of 2.6% [4] - Intermodal revenue was $743 million, below the estimate of $765.09 million, with a year-over-year increase of 0.1% [4] - Automotive revenue was $323 million, exceeding the estimate of $311.33 million, with a year-over-year increase of 4.2% [4] - Metals and construction revenue was $458 million, above the estimate of $449.09 million, with a year-over-year increase of 4.1% [4] Stock Performance - Norfolk Southern shares have returned +11.9% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - JetBlue Airways reported a revenue of $2.36 billion for the quarter ended June 2025, which is a 3% decrease compared to the same period last year [1] - The company's EPS was -$0.16, a decline from $0.08 in the year-ago quarter, but it exceeded the Zacks Consensus Estimate of -$0.31 by 48.39% [1][3] - JetBlue's stock has returned +3.1% over the past month, slightly underperforming the Zacks S&P 500 composite's +3.6% change [3] Financial Metrics - Load factor was reported at 81.9%, below the average estimate of 84.5% from five analysts [4] - Average fuel cost per gallon was $2.40, slightly above the four-analyst average estimate of $2.38 [4] - Operating revenue per ASM was 14.17 cents, exceeding the average estimate of 13.75 cents from four analysts [4] - Available seat miles (ASMs) were 16.63 billion, slightly above the average estimate of 16.59 billion [4] - Operating expense per ASM, excluding fuel, was 10.86 cents, better than the average estimate of 10.95 cents [4] - Passenger revenue per ASM was 13.1 cents, surpassing the average estimate of 12.71 cents [4] - Revenue passenger miles (RPMs) were 13.63 billion, below the average estimate of 13.98 billion [4] - Fuel gallons consumed were 210.00 million, lower than the estimated 213.10 million [4] - Operating expense per ASM was 14.13 cents, slightly above the average estimate of 14.07 cents [4] - Yield per passenger mile was 15.99 cents, exceeding the average estimate of 15.1 cents [4] - Operating Revenues from Passenger were $2.18 billion, compared to the estimated $2.11 billion, reflecting a -3.8% change year over year [4] - Operating Revenues from Other sources were $177 million, above the average estimate of $171.24 million, representing an 8.6% year-over-year increase [4]

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Boeing performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Boeing (BA) reported $22.75 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 34.9%. EPS of -$1.24 for the same period compares ...

Core Insights - Universal Health Services (UHS) reported $4.28 billion in revenue for Q2 2025, a year-over-year increase of 9.6% [1] - Earnings per share (EPS) for the same period was $5.35, compared to $4.31 a year ago, representing a surprise of +10.31% over the consensus estimate of $4.85 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $4.22 billion by +1.51% [1] Financial Performance Metrics - Behavioral health admissions were 118,974, below the estimated 122,616 [4] - Net revenues from behavioral health services reached $1.88 billion, slightly above the average estimate of $1.86 billion, with a year-over-year change of +8.6% [4] - Net revenues from acute care hospital services were $2.4 billion, exceeding the estimated $2.37 billion, reflecting a +10.5% change compared to the previous year [4] - Operating income for behavioral health care services was $396.46 million, surpassing the estimated $368.68 million [4] - Operating income for acute care hospital services was $225.22 million, slightly below the average estimate of $226.87 million [4] Stock Performance - Shares of Universal Health Services have returned -12.6% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - OneMain Holdings (OMF) reported a strong second-quarter 2025 performance with adjusted earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.25, and reflecting a 42.2% increase year-over-year [1][8] - The company's net interest income (NII) rose by 10.8% to $1.02 billion, driven by higher net finance receivables and improved yield, while total other revenues increased by 1.1% to $176 million [3][8] - Despite the positive earnings and revenue growth, total other expenses rose by 10.3% year-over-year to $473 million, primarily due to higher operating expenses and insurance policy claims [3][8] Financial Performance - Net income available to common shareholders on a GAAP basis was $167 million, significantly up from $71 million in the prior-year quarter [2] - The provision for finance receivable losses decreased by 11.1% to $511 million, with net charge-offs also down by 10.3% to $445 million [4][8] - As of June 30, 2025, net finance receivables were $23.9 billion, a 2.3% increase from the previous quarter, while long-term debt rose by 2.6% to $22.1 billion [5][8] Credit Quality - The company reported 30-89-day delinquencies of $706 million, which is a 2.8% increase from the prior-year quarter, indicating some deterioration in asset quality [4] - The allowance ratio increased to 11.54% from 11.46% in the prior-year quarter, reflecting a cautious approach to credit risk [4] Shareholder Actions - In the reported quarter, OneMain Holdings repurchased 460 thousand shares for $21 million, indicating a commitment to returning value to shareholders [6] Strategic Outlook - The company's focus on growing credit card and auto finance loans, along with strategic acquisitions, is expected to bolster its financial performance, although rising expenses and asset quality concerns remain challenges [7]