Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks based on valuation ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow, targeting growth investors [4] Momentum Score - The Momentum Score evaluates stocks based on price trends and earnings estimate changes, assisting momentum investors in timing their purchases [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% 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 also considering earnings estimate trends [10][11] Company Spotlight: Zoom Video Communications - Zoom Video Communications is currently rated 2 (Buy) on the Zacks Rank, with a VGM Score of B, benefiting from increased demand for remote communication tools [12] - The company is projected to have year-over-year earnings growth of 1.1% for the current fiscal year, with an upward revision in earnings estimates [13]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Zscaler (ZS), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for investment decisions [1][5]. Brokerage Recommendations for Zscaler - Zscaler has an average brokerage recommendation (ABR) of 1.52, indicating a consensus between Strong Buy and Buy, based on 42 brokerage firms [2]. - Out of the 42 recommendations, 30 are classified as Strong Buy, accounting for 71.4%, while 2 are classified as Buy, making up 4.8% of the total recommendations [2]. Limitations of Brokerage Recommendations - The article highlights that brokerage recommendations may not be reliable indicators of stock performance due to analysts' biases stemming from their firms' vested interests [6][10]. - Research indicates that for every "Strong Sell" recommendation, there are five "Strong Buy" recommendations, suggesting a tendency for analysts to issue overly optimistic ratings [6]. Comparison with Zacks Rank - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of near-term stock performance compared to ABR [8][11]. - The Zacks Rank is a quantitative model that maintains a balance among its five ranks and is updated more frequently than ABR, which may not reflect the most current information [9][12]. Current Earnings Estimates for Zscaler - The Zacks Consensus Estimate for Zscaler's earnings for the current year remains unchanged at $3.19, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Zscaler holds a Zacks Rank of 3 (Hold), suggesting caution despite the favorable ABR [14].

Core Viewpoint - The average brokerage recommendation (ABR) for Walt Disney (DIS) is 1.53, indicating a consensus between Strong Buy and Buy, based on 29 brokerage firms' recommendations [2][5]. Brokerage Recommendation Analysis - The ABR consists of 20 Strong Buy and 2 Buy recommendations, accounting for 69% and 6.9% of total recommendations respectively [2]. - Despite the positive ABR, relying solely on brokerage recommendations may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. Analyst Bias and Limitations - Brokerage analysts tend to exhibit a strong positive bias due to their firms' vested interests, resulting in a disproportionate number of favorable ratings compared to negative ones [6][10]. - This misalignment of interests can lead to misleading insights regarding future stock price movements [7][10]. Zacks Rank as an Alternative - The Zacks Rank, which categorizes stocks based on earnings estimate revisions, is presented in whole numbers and is considered a more reliable indicator of near-term price performance compared to ABR [8][9]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, which correlates strongly with stock price movements [11][12]. Current Earnings Estimates for Disney - The Zacks Consensus Estimate for Disney's current year earnings has increased by 1.8% over the past month to $5.85, indicating growing analyst optimism [13]. - This increase in consensus estimates, along with other factors, has led to a Zacks Rank of 2 (Buy) for Disney, suggesting a positive outlook for the stock [14].

Financial Performance - Napco Security Technologies is expected to report fourth-quarter earnings of 26 cents per share, a decrease from 39 cents per share in the same period last year [1] - The projected quarterly revenue is $44.45 million, down from $50.33 million a year earlier [1] Leadership Recognition - CEO Richard "Dick" Soloway has been named a 2025 Security Innovator by Security Business magazine [2] Stock Performance and Analyst Ratings - Napco Security Technologies shares rose 0.7% to close at $30.39 [2] - DA Davidson analyst maintained a Buy rating and increased the price target from $30 to $33 [8] - Needham analyst maintained a Buy rating but reduced the price target from $37 to $32 [8] - TD Cowen analyst downgraded the stock from Buy to Hold and cut the price target from $46 to $27 [8]

Group 1 - Zoom Communications Inc. is set to release its second-quarter earnings results on August 21, with analysts expecting earnings of $1.38 per share, a slight decrease from $1.39 per share in the same quarter last year [1] - The company is projected to report quarterly revenue of $1.2 billion, an increase from $1.16 billion in the previous year [1] - In the first quarter, Zoom reported better-than-expected earnings and provided positive guidance, although its shares experienced a minor decline of 0.1% to close at $72.16 [2] Group 2 - Keybanc analyst Jackson Ader initiated coverage on Zoom with an Underweight rating and a price target of $73 [7] - B of A Securities analyst Nikolay Beliov maintained a Neutral rating and raised the price target from $79 to $84 [7] - JP Morgan analyst Mark Murphy also maintained a Neutral rating, increasing the price target from $80 to $85 [7]

Group 1 - Walmart Inc. is set to release its second-quarter earnings results on August 21, with analysts expecting earnings of 74 cents per share, an increase from 67 cents per share in the same period last year [1] - The projected quarterly revenue for Walmart is $176.16 billion, compared to $167.77 billion generated in the same quarter last year [1] - Despite missing revenue estimates in the first quarter, Walmart has beaten estimates in nine of the last ten quarters [2] Group 2 - Walmart shares increased by 1.3%, closing at $102.57 on Wednesday [2] - Analysts have maintained positive ratings on Walmart, with Evercore ISI Group raising the price target from $108 to $110 [7] - Oppenheimer increased its price target for Walmart from $110 to $115, while JP Morgan raised its target from $112 to $130 [7]

Core Insights - Nordson Corporation is set to release its third-quarter financial results on August 20, with analysts expecting earnings of $2.64 per share, an increase from $2.41 per share in the same period last year [1] - The company is projected to report quarterly revenue of $723.57 million, up from $661.60 million a year earlier [1] Stock Performance - Nordson shares increased by 1.6%, closing at $217.50 [2] Analyst Ratings - Keybanc analyst Jeffrey Hammond maintained an Overweight rating and raised the price target from $230 to $250 [7] - Oppenheimer analyst Christopher Glynn upgraded the stock from Perform to Outperform with a price target of $260 [7] - Baird analyst Michael Halloran maintained a Neutral rating and increased the price target from $241 to $245 [7] - Loop Capital analyst Chris Dankert upgraded the stock from Hold to Buy, raising the price target from $255 to $280 [7] - Seaport Global analyst Walt Liptak upgraded the stock from Neutral to Buy with a price target of $250 [7]

Core Viewpoint - Analyst recommendations, particularly for Netflix, suggest a strong buy sentiment, but reliance solely on these recommendations may not be prudent due to potential biases from brokerage firms [2][5][10]. Group 1: Analyst Recommendations - Netflix has an average brokerage recommendation (ABR) of 1.75, indicating a position between Strong Buy and Buy, based on 46 brokerage firms [2]. - Of the 46 recommendations, 28 are Strong Buy (60.9%) and 3 are Buy (6.5%) [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [5][10]. Group 2: Bias and Limitations of Brokerage Recommendations - Brokerage analysts tend to exhibit a strong positive bias due to their firms' vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. - This misalignment of interests can result in misleading insights regarding future stock price movements [7][10]. Group 3: Zacks Rank vs. ABR - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock performance compared to ABR, which is solely based on brokerage recommendations [8][11]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, while ABR may not always be current [12]. - For Netflix, the Zacks Consensus Estimate for the current year has increased by 2.4% to $26.06, contributing to a Zacks Rank 1 (Strong Buy) [13][14].

Financial Results - Cisco Systems, Inc. is set to release its fourth-quarter financial results on August 13, with analysts expecting earnings of 98 cents per share, an increase from 87 cents per share in the same period last year [1] - Projected quarterly revenue is $14.62 billion, compared to $13.64 billion a year earlier [1] Stock Performance - Cisco shares increased by 1% to close at $71.38 on Tuesday [2] Analyst Ratings - UBS analyst David Vogt maintained a Neutral rating and raised the price target from $70 to $74 [4] - Evercore ISI Group analyst Amit Daryanani downgraded the stock from Outperform to In-Line with a price target of $72 [4] - Morgan Stanley analyst Meta Marshall maintained an Overweight rating and increased the price target from $67 to $70 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating and raised the price target from $73 to $78 [4] - Wolfe Research analyst George Notter initiated coverage with a Peer Perform rating [4]

Group 1 - Performance Food Group Company (PFGC) is set to release its fourth-quarter earnings results on August 13, with analysts expecting earnings of $1.45 per share, unchanged from the previous year [1] - The company is projected to report quarterly revenue of $16.86 billion, an increase from $15.19 billion a year earlier [1] - PFGC shares rose by 0.9% to close at $98.36 on the previous Tuesday [3] Group 2 - There is reported takeover interest in Performance Food from US Foods as of July 11 [2] - Analysts have varying ratings and price targets for PFGC, with UBS maintaining a Buy rating and raising the price target from $103 to $110 [8] - Barclays also maintained an Overweight rating, increasing the price target from $100 to $112 [8] - Citigroup initiated coverage with a Buy rating and a price target of $121 [8] - Truist Securities maintained a Buy rating but reduced the price target from $104 to $101 [8] - Piper Sandler downgraded the stock from Overweight to Neutral, cutting the price target from $92 to $90 [8]