Core Viewpoint - Descartes Systems (DSGX) has experienced a significant decline of 25.2% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with readings below 30 indicating a stock may be oversold [2]. - DSGX's current RSI reading is 27.12, indicating that the heavy selling pressure may be exhausting itself, which could lead to a trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for DSGX, with the consensus EPS estimate rising by 16.7% over the last 30 days, which typically correlates with price appreciation [7]. - DSGX holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

A downtrend has been apparent in Q2 Holdings (QTWO) lately with too much selling pressure. The stock has declined 18.2% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Emcor Group (EME) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Emcor Group currently has an av ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Gold.com (GOLD) .Gold.com currently has an average brokerage recommendation (ABR) of 1.00, on a ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Coinbase Global, Inc. (COIN), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank [1][5]. Group 1: Brokerage Recommendations for Coinbase Global - Coinbase Global has an average brokerage recommendation (ABR) of 1.97, indicating a consensus between Strong Buy and Buy, based on 34 brokerage firms [2]. - Out of the 34 recommendations, 19 are classified as Strong Buy, accounting for 55.9%, while only one is classified as Buy, representing 2.9% [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts from brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [6][11]. Group 3: Zacks Rank vs. ABR - The Zacks Rank is a proprietary tool that classifies stocks based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to ABR [8][12]. - Unlike ABR, which is based solely on brokerage recommendations, the Zacks Rank is updated frequently to reflect changes in earnings estimates, making it a timely indicator of future price movements [13]. Group 4: Current Earnings Estimates for Coinbase Global - The Zacks Consensus Estimate for Coinbase Global has declined by 6% over the past month to $5.42, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Coinbase Global, suggesting caution despite the Buy-equivalent ABR [15].

Company Performance - Fastly (FSLY) has seen a significant increase in its stock price, rising 102.2% over the past month and reaching a new 52-week high of $19.14 [1] - Year-to-date, Fastly's stock has gained 79.4%, outperforming the Zacks Computer and Technology sector, which is down 2.6%, and the Zacks Internet - Software industry, which has declined by 12.1% [1] Earnings and Revenue Expectations - Fastly has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - For the current fiscal year, Fastly is projected to report earnings of $0.17 per share on revenues of $711.06 million, reflecting a 30.77% increase in EPS and a 13.95% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $0.26 per share on revenues of $786.99 million, indicating a year-over-year change of 57.84% in EPS and 10.68% in revenues [3] Valuation Metrics - Fastly's current valuation metrics show a Price-to-Earnings (P/E) ratio of 110.7X for the current fiscal year, significantly higher than the peer industry average of 19.2X, suggesting a premium valuation [6] - The stock has a Value Score of F, while its Growth and Momentum Scores are A and A, respectively, resulting in a VGM Score of B [6] Zacks Rank - Fastly holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further growth [7] - The recommendation for investors is to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which Fastly meets [7] Industry Comparison - The Internet - Software industry is performing well, ranking in the top 37% of all industries, providing favorable conditions for both Fastly and its peer, Karooooo Ltd. (KARO) [10] - Karooooo Ltd. also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, having beaten consensus estimates by 11.36% last quarter [9]

Core Insights - Veracyte, Inc. (VCYT) is set to report its fourth-quarter 2025 results on February 25, with expectations of strong performance based on previous earnings surprises [1][9] Financial Performance - The Zacks Consensus Estimate for revenues is $138.7 million, indicating a 16.9% increase from the previous year [2] - The Zacks Consensus Estimate for EPS is 41 cents, reflecting a 13.9% year-over-year growth [2] - Earnings estimates have increased by 2.5% in the last 30 days, suggesting positive sentiment leading up to the earnings report [3] Business Segments - The core testing business is anticipated to show solid revenue growth, driven by strong volumes in Decipher and Afirma tests [4][9] - Decipher Prostate tests delivered approximately 26,700 tests in the third quarter, marking 14 consecutive quarters of over 25% year-over-year volume growth, a trend expected to continue [5] - Test volumes in the high-risk localized segment are also expected to have increased, supported by ongoing research and clinical adoption [6] Product Insights - Product volume in the third quarter was around 2,200 tests, with a year-over-year revenue growth of 4%, a trend expected to persist [7] - However, management has indicated a decline in product gross margin due to a transition to a contract manufacturing model [7][9] Market Position - VCYT has an Earnings ESP of +7.98% and a Zacks Rank of 2 (Buy), indicating a higher likelihood of beating earnings estimates [11] - The company is facing challenges in its biopharma revenues and expects lower product gross margins in the fourth quarter due to restructuring efforts [9][10]

Core Viewpoint - Southern Company is expected to report fourth-quarter earnings of 56 cents per share on revenues of $6.9 billion, with a year-over-year profit increase of 12% and an 8.3% rise in revenues [1][3][8] Group 1: Previous Quarter Performance - In the last reported quarter, Southern Company achieved adjusted earnings per share of $1.60, exceeding the Zacks Consensus Estimate by $1.50, with sales of $7.8 billion surpassing the consensus by 3.8% [2] - The company has topped the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 3% [3] Group 2: Factors Influencing Performance - Weather conditions are a significant factor affecting earnings, with milder temperatures in Q3 impacting year-over-year results and potentially limiting heating-related usage in Q4 [4] - Increased financing and depreciation expenses may pressure fourth-quarter profitability, as management noted higher costs offsetting operating growth [5] - Despite challenges, Southern Company has solid earnings visibility due to firm load growth and executed contracts, with retail sales rising 1.8% and commercial sales increasing by 3.5% in Q3 [6] Group 3: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Southern Company in the fourth quarter, as the Earnings ESP is -4.76% and the company holds a Zacks Rank of 4 (Sell) [7][9]

Company Performance - Lennar's stock increased by 1.2% to $122.28, outperforming the S&P 500's gain of 0.05% on the same day [1] - Over the past month, Lennar's stock has decreased by 1.16%, underperforming the Construction sector's gain of 6.88% and the S&P 500's loss of 1.99% [1] Earnings Estimates - Analysts project Lennar's earnings per share (EPS) to be $0.96, reflecting a 55.14% decrease from the same quarter last year [2] - Quarterly revenue is estimated at $6.83 billion, down 10.47% from the previous year [2] - For the entire fiscal year, earnings are expected to be $6.44 per share and revenue at $33 billion, indicating changes of -20.1% and -3.48% respectively from the prior year [3] Analyst Sentiment - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive changes indicating a favorable outlook on business health and profitability [3][4] - The Zacks Consensus EPS estimate has decreased by 5.41% over the past month, and Lennar currently holds a Zacks Rank of 5 (Strong Sell) [5] Valuation Metrics - Lennar's Forward P/E ratio is 18.76, which is a premium compared to the industry average Forward P/E of 15.01 [6] - The company has a PEG ratio of 1.76, while the average PEG ratio for the Building Products - Home Builders industry is 2.26 [7] Industry Context - The Building Products - Home Builders industry is part of the Construction sector and currently holds a Zacks Industry Rank of 241, placing it in the bottom 2% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Auna S.A. (AUNA) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in e ...