Core Insights - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but this metric has limitations [1] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, providing a clearer picture of a company's true value and earnings potential [2][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a complete view of a company's valuation [4] - A lower EV-to-EBITDA ratio typically indicates a stock may be undervalued, making it attractive for acquisition targets [5] - Unlike P/E, EV-to-EBITDA can be applied to companies with negative net earnings but positive EBITDA, making it useful for evaluating highly leveraged firms [6] Limitations of EV-to-EBITDA - EV-to-EBITDA has its own limitations and should not be used in isolation; it varies across industries and is not suitable for comparing companies in different sectors [7] Screening Criteria for Bargain Stocks - Parameters for screening include: - EV-to-EBITDA ratio lower than the industry median [8] - P/E ratio lower than the industry median [8] - P/B ratio lower than the industry median [9] - P/S ratio lower than the industry median [9] - Estimated one-year EPS growth greater than or equal to the industry median [9] - Average 20-day volume greater than or equal to 50,000 [10] - Current price greater than or equal to $5 [10] - Zacks Rank of 1 or 2 [10] - Value Score of A or B [11] Selected Stocks - Industrial Logistics Properties Trust (ILPT) has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 20% for 2026 [11][12] - Plains GP Holdings (PAGP) also has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 27% for 2026 [12][13] - ASGN Incorporated (ASGN) holds a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 10.1% for 2026 [13][14] - California Water Service Group (CWT) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 8.3% for 2026 [14][15] - Dollar Tree, Inc. (DLTR) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 12.4% for the current fiscal year [15][16]

Core Insights - Boeing Company's shares have increased by 2.6% over the past three months, outperforming the Zacks Aerospace-Defense industry's growth of 1.1% [1][8] - The company is experiencing growth across its commercial, defense, and services sectors, driven by strong aircraft demand, significant contract awards, and a solid backlog [1][4] Company Performance - Boeing has secured its largest-ever airplane order from Alaska Airlines, which will enhance its order backlog and long-term revenue visibility [5] - The company was awarded a $2 billion contract from the U.S. Air Force for the B-52 Commercial Engine Replacement Program, reinforcing its position as a key defense contractor [6] - Boeing's forward price-to-sales (P/S) ratio is 1.84X, which is lower than the aerospace-defense industry's average of 2.71X, indicating a potential undervaluation [8][18] Challenges - Despite strong growth potential, Boeing faces challenges such as supply-chain disruptions, including shortages of engines and critical components, which have delayed aircraft deliveries and increased production costs [10][11] - The Zacks Consensus Estimate for Boeing's 2026 earnings per share (EPS) has decreased by 21.83% in the past 60 days, indicating a decline in earnings expectations [12] Investment Considerations - Boeing's trailing 12-month return on invested capital (ROIC) is negative and lags behind the peer group's average, suggesting insufficient returns on investments [16] - The company has beaten earnings estimates in two of the last four quarters, but has a negative average surprise of 22.4% [14]

Core Insights - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but this metric has limitations and may not always reflect a company's true value [1][6] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, as it accounts for a company's total value and provides a clearer picture of profitability [2][4] Valuation Metrics - The EV-to-EBITDA ratio is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a more complete valuation approach [4] - A lower EV-to-EBITDA ratio typically indicates that a stock may be undervalued, making it an attractive option for investors [5] Stock Recommendations - Stocks such as El Pollo Loco Holdings, Inc. (LOCO), OppFi Inc. (OPFI), Edison International (EIX), ScanSource, Inc. (SCSC), and Zions Bancorporation (ZION) have been identified as having attractive EV-to-EBITDA ratios [3][11] - Each of these stocks meets specific screening criteria, including low EV-to-EBITDA ratios, P/E ratios below industry medians, and strong growth potential [8][10] Growth Projections - El Pollo Loco is expected to have a year-over-year earnings growth rate of 7.9% for 2025, with a recent upward revision of 4.4% in earnings estimates [12] - OppFi is projected to have a significant earnings growth rate of 65.3% for 2025, with a 10.6% upward revision in earnings estimates [13] - Edison International anticipates a 23.7% earnings growth rate for 2025, with a slight upward revision of 0.5% in estimates [14] - ScanSource expects a year-over-year earnings growth rate of 15.7% for fiscal 2026, with a 4% upward revision in estimates [15] - Zions Bancorporation has a projected earnings growth rate of 19% for 2025, with a 2.1% upward revision in estimates [16]

Core Insights - Boeing Company's shares have increased by 41.4% over the past year, significantly outperforming the Zacks Aerospace-Defense industry's growth of 15.8, driven by rising commercial air travel and a robust defense backlog [1][8]. Group 1: Stock Performance and Market Activity - Boeing has experienced notable growth in its commercial airplanes business, with sales surging by 81% year-over-year in Q2 2025, supported by a 63% increase in delivery numbers [3]. - The company secured significant contracts, including a $173 million deal for eight MH-139A Grey Wolf helicopters for the U.S. Air Force [4]. - Notable orders include 30 Boeing 737-8 aircraft from Norwegian Group and a record order from Turkish Airlines for up to 75 787 Dreamliners and up to 150 additional 737 MAX jets [5][6]. Group 2: Revenue and Backlog - Boeing's defense segment won contracts worth $19 billion in Q2 2025, resulting in a backlog of $74 billion for this unit [11]. - The total backlog for Boeing's Global Services business unit was reported at $21.94 billion as of June 30, 2025, indicating strong future revenue potential [10]. Group 3: Financial Estimates and Growth Projections - The Zacks Consensus Estimate projects a 28.9% year-over-year increase in Boeing's 2025 sales, with a loss per share estimate improving to $2.95 from a previous loss of $20.38 [12]. - The current quarter's sales estimate is $21.38 billion, with a year-over-year growth estimate of 19.87% [13]. - Analysts have shown skepticism regarding Boeing's near-term earnings growth, as estimates have declined over the past 60 days [14]. Group 4: Valuation and Investment Considerations - Boeing's forward 12-month price-to-sales ratio is 1.7X, which is lower than the industry's average of 2.31X, indicating a potentially attractive valuation [19]. - Despite the attractive valuation, Boeing's poor return on invested capital (ROIC) and declining earnings estimates may deter new investors [21].

Core Insights - Boeing's shares have increased by 25.4% over the past six months, outperforming the aerospace-defense industry growth of 20.8% and the broader aerospace sector's rise of 22% [1][8] - Other major aircraft manufacturers, such as Embraer and Airbus, have also seen significant stock price increases of 34% and 21.5%, respectively [2] Group 1: Stock Performance and Market Position - Boeing's stock performance has been driven by strong order inflows for both commercial and defense programs, as well as successful product deliveries [3] - Notable orders include 17 CH-47 Block II Chinooks from Japan Self-Defense Forces, 18 737-8 and 12 737-10 jets from Malaysia Aviation Group, and a contract from the U.S. Air Force for next-generation fighter aircraft [3][4] - Qatar Airways placed a record order for up to 210 widebody jets, including the largest order for 787 Dreamliners [4] - Boeing's successful delivery of satellites and contracts worth $2.8 billion for the Evolved Strategic Satellite Communications program have further boosted investor confidence [4][5] Group 2: Future Growth Prospects - Boeing anticipates a demand for 43,600 new commercial planes through 2044, supported by an expected annual passenger traffic growth of 4.2% over the next 20 years [6] - The defense segment has also shown strong performance, with contract awards worth $19 billion leading to a backlog of $74 billion as of June 30, 2025 [9] - The long-term earnings growth rate estimate for Boeing is 17.9%, surpassing the industry's 15.9% [10] Group 3: Sales Estimates and Earnings Projections - Boeing's third-quarter 2025 sales are projected to improve by 19.2% year-over-year, with full-year 2025 sales expected to rise by 27.8% [11] - The Zacks Consensus Estimate for sales in the current quarter is $21.27 billion, with a year-over-year growth estimate of 19.22% [13] - Despite some mixed revisions in near-term earnings estimates, the overall trend indicates a positive outlook for sales and earnings growth [12][14] Group 4: Valuation and Investment Considerations - Boeing's forward price-to-sales ratio is 1.84X, which is below the industry's average of 2.25X, indicating a potential discount [19] - However, the stock's valuation appears stretched compared to its five-year median value of 1.44 [19] - The company currently has a negative return on invested capital (ROIC), which is lower than its peers, indicating challenges in generating sufficient returns [16]