Core Viewpoint - The upcoming earnings report from Automatic Data Processing (ADP) is anticipated to show a quarterly earnings per share (EPS) of $2.22, reflecting a 6.2% increase year-over-year, with revenues expected to reach $5.05 billion, indicating a 5.9% growth compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised down by 0.1% over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenues- Interest on funds held for clients' to be $286.31 million, a 3.4% increase from the year-ago quarter [5]. - The consensus estimate for 'Revenues- PEO revenues' is $1.63 billion, suggesting a 5.2% year-over-year change [5]. - 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' is expected to reach $3.13 billion, indicating a 6.3% increase year-over-year [6]. - The average prediction for 'Segment revenues- Employer Services' is $3.43 billion, reflecting a 6.4% change from the previous year [6]. - 'Segment revenues- PEO Services' is projected to be $1.63 billion, a 5% increase from the year-ago quarter [7]. Employee Metrics - Analysts estimate that the 'Average paid PEO worksite employees during the period' will reach 757, compared to 742 in the previous year [7]. Market Performance - ADP shares have shown a return of +1.1% over the past month, while the Zacks S&P 500 composite has increased by +4.6% [7].

Core Viewpoint - Analysts project that Merck (MRK) will report quarterly earnings of $1.99 per share, reflecting a 12.7% decline year over year, with revenues expected to reach $15.71 billion, down 2.5% from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 1.1% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Sales- Oncology- Keytruda' at $7.90 billion, indicating an 8.7% year-over-year increase [5]. - 'Sales- Vaccines- Gardasil' is projected at $1.30 billion, reflecting a significant decline of 47.5% from the prior-year quarter [5]. - 'Sales- Animal health' is expected to reach $1.55 billion, suggesting a 4.5% year-over-year increase [5]. Oncology Sales Breakdown - 'Sales- Oncology- Alliance revenue- Lenvima' is estimated at $244.01 million, down 2% from the year-ago quarter [6]. - 'Sales- Oncology- Keytruda - U.S.' is projected at $4.67 billion, reflecting a 5.9% increase year over year [6]. - 'Sales- Oncology- Keytruda - International' is expected to reach $3.16 billion, indicating a 10.4% year-over-year increase [6]. Additional Oncology Revenue Estimates - 'Sales- Oncology- Alliance revenue- Lynparza - U.S.' is expected to be $140.82 million, down 8% from the previous year [7]. - 'Sales- Oncology- Alliance revenue- Lynparza - International' is projected at $185.43 million, reflecting a 12.4% year-over-year increase [7]. - 'Sales- Oncology- Alliance revenue- Lenvima - U.S.' is estimated at $178.30 million, indicating a 0.7% increase from the year-ago quarter [8]. - 'Sales- Oncology- Alliance revenue- Lenvima - International' is expected to be $73.72 million, reflecting a 1% increase year over year [8]. Hospital Acute Care Sales - 'Sales- Hospital Acute Care- Zerbaxa - U.S.' is projected to reach $36.85 million, indicating an 11.7% increase from the prior-year quarter [9]. - 'Sales- Hospital Acute Care- Zerbaxa - International' is expected to be $29.97 million, reflecting a 7.1% year-over-year increase [9]. Stock Performance - Over the past month, Merck shares have recorded a return of +5.4%, compared to the Zacks S&P 500 composite's +5.7% change [9]. - Based on its Zacks Rank 4 (Sell), Merck is expected to underperform the overall market in the upcoming period [9].

Core Viewpoint - Analysts project that Royal Caribbean (RCL) will report quarterly earnings of $4.10 per share, reflecting a year-over-year increase of 27.7%, with revenues expected to reach $4.55 billion, a 10.7% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 1.6%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Onboard and other' to be $1.33 billion, marking a 9% increase from the previous year [5]. - 'Revenues- Passenger ticket' is projected to reach $3.21 billion, reflecting an 11.1% increase from the year-ago quarter [5]. Operational Metrics - The estimated 'Available Passenger Cruise Days (APCD)' is projected at 12,923 days, up from 12,233 days in the same quarter last year [6]. - The 'Occupancy Rate' is expected to be 109.6%, compared to 108.2% a year ago [6]. - 'Passenger Cruise Days' are anticipated to reach 14,168 days, an increase from 13,230 days in the previous year [6]. Cost Projections - 'Net Cruise Costs Excluding Fuel per APCD' is expected to be $129.25, up from $123.65 in the same quarter last year [7]. - 'Net Cruise Costs per APCD' is projected at $151.33, compared to $146.70 in the same quarter last year [7]. Passenger Estimates - The consensus among analysts is that 'Passengers Carried' will reach 2.34 million, an increase from 2.04 million a year ago [8]. Stock Performance - Shares of Royal Caribbean have increased by 24.1% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.7% [8].

Core Insights - CVS Health Corporation is set to report its second-quarter 2025 results on July 31, with adjusted earnings in the last quarter exceeding estimates by 31.58% [1] - The Zacks Consensus Estimate for second-quarter revenues is $93.72 billion, indicating a year-over-year growth of 2.7%, while earnings per share are expected to decline by 19.67% to $1.47 [2][7] Earnings Estimates - Earnings estimates for CVS Health have decreased from $1.58 to $1.47 per share over the past 90 days due to various operational and regulatory challenges [3] - The current earnings estimates for the upcoming quarters are $1.42 for the next quarter, $6.12 for the current year, and $7.00 for the next year [4] Operational Challenges - CVS Health faces operational cost pressures, legal challenges, and regulatory scrutiny, which have negatively impacted earnings estimates [4] - The company has incurred one-time charges totaling $1.082 billion, including $387 million related to the Omnicare verdict and $448 million in ACA-related reserves [4] Segment Performance - The Health Care Benefits segment is expected to generate revenues of $34.6 billion, with a focus on margin recovery through benefit redesigns and pricing changes [6][8] - The Pharmacy & Consumer Wellness segment is projected to achieve revenues of $32.16 billion, benefiting from increased prescription volumes despite reimbursement pressures [11][12] - The Health Services segment is estimated to generate $43.52 billion in revenues, supported by the performance of Caremark, CVS's pharmacy benefit manager [10][9] Stock Performance - CVS Health shares gained 2.5% in the second quarter of 2025, underperforming the S&P 500's 10.7% rise [13] - Compared to peers, CVS outperformed Herbalife and UnitedHealth Group, which saw declines of 2.2% and 40% respectively [13] Valuation - CVS Health's forward 12-month price-to-earnings (P/E) ratio is 9.24X, which is a premium compared to Herbalife's 4.51X but undervalued relative to UnitedHealth's 12.27X [16] Strategic Initiatives - CVS is implementing strategies to improve profitability, including redesigning Aetna benefits and enhancing drug pricing transparency through new PBM models [17] - The company is also optimizing its retail footprint and has plans to close over 20 pharmacies in Arkansas due to new regulatory laws [4][5]

Core Viewpoint - Analysts forecast that Ryder will report quarterly earnings of $3.11 per share, reflecting a year-over-year increase of 3.7%, while revenues are expected to be $3.17 billion, showing a decrease of 0.3% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised 0.3% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Operating Revenue- Fleet Management Solutions' at $1.29 billion, indicating a year-over-year change of +0.9% [5]. - The estimate for 'Operating Revenue- Dedicated Transportation Solutions' is $460.58 million, reflecting a year-over-year decrease of 5% [5]. - 'Operating Revenue- Supply Chain Solutions' is expected to reach $1.02 billion, showing a change of +3.3% from the previous year [6]. - The estimate for 'Revenues- Fleet Management Solutions' is $1.47 billion, indicating a year-over-year change of -0.6% [7]. - 'Revenues- Dedicated Transportation Solutions' is projected at $604.69 million, reflecting a decrease of 4.8% from the prior year [8]. - 'Revenues- Fleet Management Solutions- ChoiceLease' is expected to reach $880.92 million, indicating a year-over-year change of +2.9% [9]. Key Metrics - 'Commercial rental - Rental Utilization - Power Units' is estimated at 68.0%, down from 69.0% a year ago [10]. - Over the past month, Ryder shares have returned +9.8%, outperforming the Zacks S&P 500 composite's +5.9% change [10].

Core Viewpoint - Wall Street analysts expect Westinghouse Air Brake Technologies (WAB) to report quarterly earnings of $2.18 per share, reflecting an 11.2% year-over-year increase, with revenues projected at $2.77 billion, a 4.8% increase from the previous year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.8%, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue and Sales Estimates - Analysts predict 'Sales to external customers - Transit Segment' will reach $762.91 million, a 5.4% increase from the year-ago quarter [5]. - The estimated 'Sales to external customers - Freight Segment' is $2.01 billion, reflecting a 4.6% increase from the previous year [5]. Backlog Estimates - The total backlog is expected to reach $22.34 billion, compared to $22.08 billion from the same quarter last year [5]. - The average prediction for 'Backlog - Transit Group' is $4.42 billion, up from $4.15 billion in the same quarter last year [6]. - The consensus estimate for 'Backlog - Freight Group' stands at $17.92 billion, slightly down from $17.93 billion year-over-year [6]. Income from Operations - 'Adjusted Income from operations - Transit Segment' is projected at $104.42 million, compared to $91.00 million in the same quarter last year [7]. - 'Adjusted Income from operations - Freight Segment' is expected to be $487.43 million, up from $462.00 million year-over-year [7]. - The 'Income from operations - Freight Segment' is estimated at $434.84 million, compared to $391.00 million last year [8]. - The 'Income from operations - Transit Segment' is projected to reach $91.71 million, up from $82.00 million in the previous year [8]. Stock Performance - Over the past month, Wabtec shares have returned +6%, outperforming the Zacks S&P 500 composite's +5.4% change [8].

Core Viewpoint - A.O. Smith (AOS) is expected to report a quarterly earnings per share (EPS) of $0.97, reflecting an 8.5% year-over-year decline, with revenues projected at $987.3 million, a decrease of 3.6% compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 0.6%, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Estimates - The consensus estimate for 'Geographic Revenue- North America' is $763.85 million, suggesting a year-over-year change of -3.4% [5]. - The estimated 'Geographic Revenue- Rest of World' is $234.39 million, indicating a decline of 4.3% from the prior-year quarter [5]. Segment Operating Earnings - Analysts estimate 'Segment Operating Earnings (NON-GAAP)- North America' to be $180.26 million, down from $198.40 million reported in the same quarter last year [6]. - The estimate for 'Segment Operating Earnings (NON-GAAP)- Rest of World' is $22.62 million, compared to $25.90 million in the previous year [6]. - The average prediction for 'Segment Operating Earnings (GAAP)- North America' is $174.91 million, also down from $198.40 million reported last year [7]. - The consensus for 'Segment Operating Earnings (GAAP)- Rest of World' is $23.46 million, compared to $25.90 million in the same quarter of the previous year [7]. Stock Performance - Over the past month, A.O. Smith shares have returned +12.1%, outperforming the Zacks S&P 500 composite's +5.4% change [7]. - A.O. Smith currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7].

Core Viewpoint - LKQ is expected to report quarterly earnings of $0.93 per share, reflecting a 5.1% decline year over year, with revenues forecasted at $3.61 billion, a decrease of 2.7% compared to the previous year [1]. Revenue Estimates - Analysts estimate 'Revenue- Other- Total' to be $151.43 million, indicating a decline of 4.8% from the prior-year quarter [4]. - 'Revenue- Parts and Services- Wholesale- North America' is projected to reach $1.35 billion, suggesting a 3.1% decrease year over year [4]. - The total 'Revenue- Parts and Services' is expected to be $3.44 billion, reflecting a 3.2% decline from the previous year [4]. - 'Revenue- Parts and Services- Specialty' is anticipated to be $438.81 million, indicating a 5.8% decrease year over year [5]. - 'Revenue- Parts and Services- Europe' is forecasted at $1.59 billion, suggesting a 2.4% decline from the prior-year quarter [5]. - 'Revenue- Parts and Services- Self Service' is estimated at $52.92 million, reflecting a 3.8% decrease year over year [5]. - 'Revenue- Specialty' is expected to be $436.72 million, indicating a 6.3% decline year over year [6]. - 'Revenue- Wholesale- North America' is projected to reach $1.43 billion, suggesting a 3.1% decrease year over year [6]. - 'Revenue- Europe' is expected to be $1.62 billion, indicating a 1.3% decline year over year [6]. - 'Revenue- Self Service' is estimated at $132.14 million, reflecting a 0.7% decrease year over year [7]. EBITDA Estimates - 'EBITDA- Self Service' is expected to reach $13.67 million, compared to $13.00 million reported in the same quarter of the previous year [7]. - 'EBITDA- Specialty' is projected at $33.34 million, down from $41.00 million reported in the same quarter of the previous year [8]. Stock Performance - Over the past month, shares of LKQ have remained unchanged, while the Zacks S&P 500 composite has increased by 5.4% [8].

Core Insights - Analysts forecast Infosys (INFY) will report quarterly earnings of $0.19 per share, reflecting a year-over-year increase of 5.6% [1] - Expected revenues for the quarter are projected at $4.84 billion, indicating a 2.6% increase compared to the same quarter last year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.3%, indicating a collective reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Metrics - Analysts estimate 'Employee Metrics - Software Professionals' will reach 256,265, down from 298,123 in the same quarter last year [5] - The expected 'Utilization - Including trainees - Consolidated' is projected at 82.8%, compared to 83.9% reported in the same quarter last year [5] - The consensus for 'Utilization - Excluding trainees - Consolidated' is 84.9%, down from 85.3% in the previous year [6] - The estimate for 'Employee Metrics - Sales & Support' stands at 14,344, compared to 17,209 a year ago [6] Stock Performance - Infosys shares have changed by +0.2% in the past month, while the Zacks S&P 500 composite has moved +5.4% [6] - With a Zacks Rank 2 (Buy), INFY is expected to outperform the overall market in the near term [6]

ETF Market Inflows and Trends - Year-to-date net inflows into ETFs reach $623 billion, on track for another trillion-dollar year [2] - The industry is potentially heading towards $1.3 trillion in flows for the entire year, driven by low-cost and active strategies [3] - Stronger sector flows observed in the past three months compared to the prior three months, indicating tactical adjustments and improving sentiment [3][4] Communication Services ETFs (XLC) - Increased inflows driven by price and fundamental momentum, with the sector outperforming the broader market [4] - Communication services is the only sector with increased earnings estimates over the last three months, largely due to AI [5] - Beneficiary of the "one big beautiful bill act" due to high R&D expenditure that can be expensed at a higher rate, boosting cash flow [5] - Considered a safe haven due to its service-oriented nature, making it less impacted by tariffs [5] Small Cap ETFs - July saw $2 billion of outflows, contributing to net outflows year-to-date, reflecting a less robust economic outlook [6] - Small caps face challenges due to below-trend growth expected in 2025 and 2026, high interest costs, and significant debt financing [6][7] - Small caps have experienced negative earnings growth over the last three years, contrasting with the sizable positive earnings growth of large caps [7] - Sentiment favors large caps with AI tech benefits, higher cash flow, and less debt service, making them less tied to the economic cycle [8] ETF Recommendations for Current Market - Communication Services ETF (XLC) is recommended due to fundamental momentum, high earnings expectations, cash flow, earnings revisions, and limited tariff exposure [11][12] - Aerospace and Defense ETF (XR) is suggested due to macro momentum from increased defense spending driven by geopolitical conflicts [12][13]