Core Insights - Abercrombie & Fitch (ANF) and PVH are set to report their Q2 results, attracting investor interest as potential buy-the-dip candidates due to a possible rate cut in September [1][2] Q2 Expectations - Abercrombie & Fitch is expected to report a nearly 5% year-over-year sales increase to $1.19 billion, but earnings per share (EPS) are projected to decline by 9% to $2.27 [4] - PVH's Q2 sales are anticipated to rise by 1% to $2.1 billion, while EPS is expected to drop over 34% to $1.97 [6] Performance History - Abercrombie & Fitch has surpassed sales expectations for 11 consecutive quarters and has exceeded the Zacks EPS Consensus for nine straight quarters, with an average earnings surprise of 11.24% [4][8] - PVH has exceeded sales estimates for six straight quarters and has surpassed the Zacks EPS Consensus for 17 consecutive quarters, with an average earnings surprise of 13.47% [8] Valuation Metrics - Both ANF and PVH stocks are trading under 10 times forward earnings and below 2 times sales, earning an "A" Zacks Style Scores grade for Value [10] Investment Outlook - The upcoming Q2 reports and guidance for both companies will be critical for determining potential upside, with both currently holding a Zacks Rank 3 (Hold) [12]

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Core Viewpoint - Eli Lilly's stock experienced a significant decline despite strong Q2 earnings, primarily due to disappointing clinical trial data for its weight loss drug orforglipron, which has raised concerns about its market potential and competitive position against Novo Nordisk [1][2][10]. Financial Performance - Eli Lilly reported Q2 sales of $15.6 billion, marking a 38% increase year-over-year, and adjusted earnings per share (EPS) rose by 61% to $6.31, surpassing Wall Street estimates [3][4]. - The company increased its full-year 2025 guidance by $1.5 billion at the midpoint, indicating strong overall performance despite the stock drop [4]. Market Position and Competition - Eli Lilly gained 3.8% market share in the U.S. weight loss drug market, continuing to lead over Novo Nordisk [4]. - The disappointing results from the orforglipron clinical trials have raised concerns about Eli Lilly's ability to maintain its competitive edge, especially as Novo Nordisk's oral GLP-1 drug has shown better efficacy [9][10]. Clinical Trial Data - Orforglipron's Phase 3 ATTAIN-1 results indicated an average weight loss of 11.5% at 72 weeks, which is below the previous findings of 12.4% at 36 weeks and also lower than Novo Nordisk's 12.7% at 68 weeks [7][9]. - The market's reaction to the orforglipron data suggests a significant disappointment, impacting investor sentiment and stock performance [10]. Future Outlook - Despite the current challenges, there is potential for orforglipron to tap into a new patient demographic that prefers oral medications over injectables, which could still provide growth opportunities for Eli Lilly [12][14]. - Eli Lilly plans to submit orforglipron for regulatory approval by the end of 2025, with potential sales starting in 2026, although competition from Novo Nordisk's oral GLP-1 could pose risks [13][14]. Investment Considerations - The recent stock decline may present a buy-the-dip opportunity, as analysts maintain a Moderate Buy rating with a 12-month price target of $999.50, indicating a potential upside of 58.77% [8][15].

Core Viewpoint - Pool Corp. is facing a challenging economic environment, with its stock down approximately 12% year to date, but this may present a buying opportunity for investors as it is a high-quality industry leader available at a discount [1]. Group 1: Company Overview - Pool Corp. is the world's largest pool supplies distributor, operating 448 sales centers across North America, Europe, and Australia, serving over 125,000 customers [5]. - The company owns the Pinch A Penny retail franchise, which has around 300 locations [5]. - Pool Corp.'s revenue is significantly driven by recurring sales, with 86% coming from consistent upkeep products for installed pools [6]. Group 2: Financial Performance - Over the past five years, Pool Corp. has achieved a 14% compound annual growth rate (CAGR) in total revenue, reaching $5.3 billion in 2024 [8]. - Despite a slowdown in new pool construction, management remains optimistic about growth from its expanding private-label business and the Pool360 digital platform [9][10]. - For 2025, Pool Corp. anticipates net sales to be "flat to slightly higher" year over year, with an earnings-per-share (EPS) estimate of $11.08 to $11.58, indicating a 3% increase at the midpoint compared to 2024 [10]. Group 3: Capital Allocation and Shareholder Returns - Pool Corp. has a strong free cash flow generation, allowing for a generous capital allocation strategy, including a recent 4% increase in its quarterly dividend to $1.25 per share, yielding about 1.3% [11]. - The company has also increased its share repurchase authorization to $600 million, demonstrating its commitment to shareholders [11]. Group 4: Valuation and Market Position - Pool Corp.'s current forward price-to-earnings (P/E) ratio is 27, which is a discount compared to its historical average P/E of around 30 over the past decade, suggesting the stock may be undervalued [12]. - A potential recovery in the housing market and pool construction, aided by subdued inflation and lower interest rates, could enhance company performance [14].

Core Viewpoint - FedEx reported strong fiscal Q4 results but saw its stock decline by 3%, impacting UPS shares as well [1][2] FedEx Q4 Results - FedEx's Q4 earnings increased by 12% to $6.07 per share, exceeding EPS estimates of $5.93 [3] - Q4 sales reached $22.22 billion, surpassing estimates of $21.73 billion and slightly up from $22.1 billion in the same quarter last year [3] - FedEx has missed the Zacks EPS Consensus in two of the last four quarters, with an average EPS surprise of -5.53% [4] UPS Q2 Expectations - UPS's Q2 sales are projected to decline by 4% to $20.84 billion compared to $21.82 billion a year ago [5] - Expected Q2 EPS for UPS is forecasted to fall by 12% to $1.57 from $1.79 in the prior year quarter [5] - UPS has exceeded earnings expectations in three of its last four quarterly reports, with an average EPS surprise of 2.42% [6] Performance & Valuation Comparison - Both FedEx and UPS stocks are down 20% this year, but FedEx has a total return of +86% over the last five years, outperforming UPS's +11% [7] - FedEx and UPS have lower P/E valuations at 11.7X and 14.2X forward earnings, respectively, compared to the S&P 500's 23.5X [8] Dividend Comparison - UPS currently offers a higher annual dividend yield of 6.52%, compared to FedEx's 2.41% and the S&P 500's average of 1.22% [10] Bottom Line - FedEx and UPS are considered appealing buy-the-dip targets in terms of value, with FedEx potentially being the better long-term pick despite UPS's attractive dividend [11]