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Can ACI Worldwide (ACIW) Run Higher on Rising Earnings Estimates?
ZACKS· 2025-03-25 17:20
Core Viewpoint - ACI Worldwide (ACIW) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimates - The current quarter's earnings estimate for ACI Worldwide is projected at $0.33 per share, reflecting a significant increase of +230% compared to the same quarter last year [5]. - Over the past 30 days, the Zacks Consensus Estimate for ACI Worldwide has risen by 283.33%, with no negative revisions reported [5]. - For the full year, the expected earnings per share is $2.73, indicating a year-over-year growth of +3.41% [6]. - The consensus estimate for the current year has increased by 5.77% due to two upward revisions and no negative changes [7]. Analyst Sentiment - There is strong agreement among analysts in raising earnings estimates for ACI Worldwide, contributing to a more favorable outlook [3]. - The Zacks Rank system currently rates ACI Worldwide as 1 (Strong Buy), indicating a positive sentiment among analysts [8]. Stock Performance - ACI Worldwide shares have appreciated by 8% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [9].
Wall Street Analysts See Chipotle (CMG) as a Buy: Should You Invest?
ZACKS· 2025-03-25 14:30
Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Chipotle Mexican Grill (CMG), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations - Chipotle has an average brokerage recommendation (ABR) of 1.52, indicating a consensus between Strong Buy and Buy, based on 32 brokerage firms [2]. - Of the 32 recommendations, 22 are Strong Buy (68.8%) and 3 are Buy (9.4%) [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often lack success in guiding investors towards stocks with high price appreciation potential [5][10]. Group 2: Analyst Bias and Zacks Rank - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [8][11]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR, which may not be up-to-date [12]. Group 3: Chipotle's Earnings Estimates - The Zacks Consensus Estimate for Chipotle's earnings has declined by 0.6% over the past month to $1.28, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. - This decline in consensus estimates has resulted in a Zacks Rank of 4 (Sell) for Chipotle, suggesting caution despite the Buy-equivalent ABR [14].
Wall Street Analysts Believe OptiNose (OPTN) Could Rally 143.06%: Here's is How to Trade
ZACKS· 2025-03-24 14:55
Group 1 - OptiNose (OPTN) shares have increased by 58.6% in the past four weeks, closing at $9.15, with a mean price target of $22.24 indicating a potential upside of 143.1% [1] - The mean estimate consists of four short-term price targets with a standard deviation of $15.68, where the lowest estimate suggests a 1.6% decline and the highest predicts a 391.6% increase to $44.98 [2] - Analysts show strong agreement on the company's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] Group 2 - The Zacks Consensus Estimate for the current year has risen by 0.7% over the last 30 days, with one estimate moving higher and no negative revisions [10] - OPTN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [11] - While consensus price targets may not be reliable for predicting actual stock gains, they can provide a useful guide for price movement direction [12]
Immunocore (IMCR) Moves 6.0% Higher: Will This Strength Last?
ZACKS· 2025-03-21 15:25
Company Overview - Immunocore Holdings PLC shares ended the last trading session 6% higher at $30.43, following a period of 3.6% loss over the past four weeks, indicating a significant price movement driven by higher-than-average trading volume [1] - The company presented encouraging initial data from the phase I/II STRIVE study for its functional cure candidate, IMC-M113V, for treating HIV, showing well-tolerated treatment and dose-dependent viral control after interruption of antiretroviral treatment [2] Financial Expectations - The company is expected to report a quarterly loss of $0.35 per share, reflecting a year-over-year change of +28.6%, with revenues projected at $86.81 million, up 23.1% from the previous year [3] - The consensus EPS estimate for the quarter has been revised 30.6% lower over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not correlate with price appreciation [4] Industry Context - Immunocore is part of the Zacks Medical - Biomedical and Genetics industry, where another company, Adherex Technologies Inc., has a consensus EPS estimate change of +32.4% to -$0.12, representing a year-over-year change of -129.3% [4][5]
Brokers Suggest Investing in Carvana (CVNA): Read This Before Placing a Bet
ZACKS· 2025-03-21 15:00
Group 1: Analyst Recommendations - Carvana currently has an average brokerage recommendation (ABR) of 1.95, indicating a position between Strong Buy and Buy, based on recommendations from 19 brokerage firms [2] - Of the 19 recommendations, nine are Strong Buy and two are Buy, accounting for 47.4% and 10.5% of all recommendations respectively [2] - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often lack success in guiding investors towards stocks with high price appreciation potential [3][4] Group 2: Limitations of Brokerage Recommendations - Brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [4][5] - The interests of brokerage firms may not align with those of retail investors, providing limited insight into future stock price movements [5][8] - Analysts' recommendations tend to be overly optimistic, misleading investors more frequently than guiding them accurately [8] Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more effective indicator of near-term stock price performance compared to ABR [6][9] - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR which may not be up-to-date [10] - For Carvana, the Zacks Consensus Estimate for the current year has increased by 21.4% over the past month, indicating growing optimism among analysts regarding the company's earnings prospects [11] Group 4: Investment Implications for Carvana - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Carvana, suggesting a favorable outlook for the stock [12] - The Buy-equivalent ABR for Carvana may serve as a useful guide for investors, complementing the insights provided by the Zacks Rank [12]
Strength Seen in ProAssurance (PRA): Can Its 48.1% Jump Turn into More Strength?
ZACKS· 2025-03-21 13:10
Core Insights - ProAssurance (PRA) shares surged 48.1% to close at $23.02, significantly outperforming its previous 8.1% gain over the past four weeks, driven by high trading volume [1] - The stock's rally is primarily due to The Doctors Company's acquisition announcement at a premium price of $25.00 per share, indicating strong investor confidence in ProAssurance's value [2] - The acquisition aligns ProAssurance's expertise in medical liability, life sciences, and workers' compensation with The Doctors Company's mission, enhancing competitiveness [3] Financial Performance - ProAssurance is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 125%, while revenues are projected to be $270.66 million, a 4% decline from the previous year [4] - The consensus EPS estimate for ProAssurance has been revised 3.4% higher in the last 30 days, suggesting potential price appreciation in the near term [5] Industry Context - ProAssurance is categorized under the Zacks Insurance - Property and Casualty industry, where CNA Financial, another player, has seen a slight decline of 0.1% in its stock price [5] - CNA Financial's consensus EPS estimate has decreased by 8.6% over the past month, indicating a 10% drop compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [6]
Micron (MU) Surpasses Q2 Earnings and Revenue Estimates
ZACKS· 2025-03-20 22:11
Core Insights - Micron reported quarterly earnings of $1.56 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing a significant increase from $0.42 per share a year ago, representing an earnings surprise of 9.09% [1] - The company achieved revenues of $8.05 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 1.97% and up from $5.82 billion year-over-year [2] - Micron's stock has increased by approximately 21.3% since the beginning of the year, contrasting with a -3.5% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.48 on revenues of $8.47 billion, and for the current fiscal year, it is $6.64 on revenues of $35.07 billion [7] - The trend of estimate revisions for Micron has been unfavorable leading up to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Computer - Integrated Systems industry, to which Micron belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting potential challenges ahead as the top 50% of industries outperform the bottom 50% by more than 2 to 1 [8]
Adma Biologics (ADMA) Surges 10.2%: Is This an Indication of Further Gains?
ZACKS· 2025-03-20 14:31
Company Overview - Adma Biologics (ADMA) shares increased by 10.2% to close at $20.61, with a notable trading volume compared to normal sessions, and a total gain of 15.7% over the past four weeks [1][2] Revenue Growth - In 2024, Adma Biologics reported total revenues of $426.5 million from product sales, marking a 65% year-over-year increase [2] Earnings Expectations - The company is projected to report quarterly earnings of $0.16 per share, reflecting a 100% year-over-year change, with expected revenues of $119.1 million, up 45.5% from the same quarter last year [3] Earnings Estimate Revisions - The consensus EPS estimate for the upcoming quarter has been revised 6.7% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] Industry Context - Adma Biologics operates within the Zacks Medical - Biomedical and Genetics industry, where Wave Life Sciences (WVE) has seen a 2.6% increase in its stock price, but has returned -11.2% over the past month [4]
Is Gray Media (GTN) a Buy as Wall Street Analysts Look Optimistic?
ZACKS· 2025-03-20 14:31
Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions, but their reliability is questionable due to potential biases stemming from brokerage firms' vested interests [1][5][9]. Group 1: Brokerage Recommendations - Gray Media (GTN) has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the recommendations classified as Strong Buy [2][12]. - The ABR is based on recommendations from five brokerage firms, which may not always reflect the true potential of the stock due to inherent biases [4][9]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, a proprietary stock rating tool, is a more reliable indicator of near-term price performance, classifying stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) [7][10]. - Unlike the ABR, which is based solely on brokerage recommendations, the Zacks Rank incorporates earnings estimate revisions, providing a more timely and accurate reflection of stock performance [8][11]. Group 3: Earnings Estimates and Investment Potential - The Zacks Consensus Estimate for Gray Media has increased by 3.6% over the past month, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - This positive trend in earnings estimates has contributed to a Zacks Rank 2 (Buy) for Gray Media, suggesting that the stock may have significant upside potential [13].
H World Group (HTHT) Q4 Earnings Lag Estimates
ZACKS· 2025-03-20 12:25
分组1 - H World Group reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.27 per share, and down from $0.33 per share a year ago, representing an earnings surprise of -48.15% [1] - The company posted revenues of $825 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.06%, compared to year-ago revenues of $786 million [2] - H World Group shares have increased approximately 15.2% since the beginning of the year, while the S&P 500 has declined by -3.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $776.22 million, and for the current fiscal year, it is $2.05 on revenues of $3.46 billion [7] - The Zacks Industry Rank indicates that the Hotels and Motels sector is currently in the bottom 26% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]