Market Overview - U.S. equities started February on a subdued note, with investors becoming more selective regarding AI exposure, leading to a decline in stocks as the market adjusted high expectations and penalized companies perceived as potential AI "losers" [1] - Retail investors are advised to adopt a disciplined approach by reassessing allocations, tightening risk controls, and ensuring alignment with long-term goals [1] Stock Selection Criteria - Traditional stock selection based on sales growth is emphasized as a more reliable metric compared to earnings-focused metrics [2] - Sales growth is viewed as a clear indicator of a company's underlying momentum, reflecting actual demand for products and services, and can signal future profit potential [3] - Revenue trends should be analyzed in context, comparing growth with peers and industry norms to distinguish between sustainable strength and temporary boosts [4] Screening Parameters for Winning Stocks - Stocks are shortlisted based on a 5-Year Historical Sales Growth (%) greater than the industry average and a cash flow exceeding $500 million [5] - Additional criteria include a Price/Sales (P/S) Ratio lower than the industry average, indicating better value for each dollar of revenue [6] - Estimate revisions for future sales that exceed industry standards are also considered, as they can lead to stock price increases [6] - Operating Margin over the last five years should be greater than 5%, indicating effective cost control and sales growth outpacing costs [7] - Return on Equity (ROE) should be above 5%, ensuring that sales growth translates into profits and that the company is not hoarding cash [8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are preferred, as they are known to outperform in various market conditions [8] Recommended Stocks - Genuine Parts Company (GPC) is highlighted, with an expected sales growth rate of 3.7% for 2026 and a Zacks Rank of 2 [9][10] - Wheaton Precious Metals Corp. (WPM) is noted for its expected sales growth rate of 35.4% for 2026, also holding a Zacks Rank of 2 [9][11] - FirstEnergy Corporation (FE) is projected to have a sales increase of 3.6% in 2026, currently carrying a Zacks Rank of 2 [9][12]

Ichor crushed expectations in Q4 and issued promising guidance.Ichor Holdings (ICHR +32.48%) surged higher Tuesday. The fluid-delivery-subsystems company's share price closed out the daily session up 32.7%. Meanwhile, the S&P 500 was down 0.4% and the Nasdaq Composite was down 0.6%. Ichor published its fourth-quarter earnings report after the market closed yesterday, and performance crushed expectations. The company also issued great forward guidance. Ichor surged after topping Q4 sales and earnings expect ...

Core Insights - The company reported a 1.7% increase in comparable store sales for the 4-week period ended January 31, 2026, compared to the same period in the previous year [1] - Total net sales for the same period rose by 3.7% to $61.8 million, up from $59.5 million in the prior year [2] Men's Business Performance - Men's sales decreased by 2.5% for the 4-week fiscal period ended January 31, 2026, compared to the previous year [2] - Men's business accounted for approximately 44% of total sales, down from 46.5% in the same period last year [2] - Overall price points for men's products increased by about 4% during the fiscal month [2] Women's Business Performance - Women's sales increased by 6.5% for the 4-week fiscal period ended January 31, 2026, compared to the previous year [3] - Women's business represented approximately 58% of total sales, up from 53.5% in the same period last year [3] - Overall price points for women's products increased by about 6.5% during the fiscal month [3] Accessory Sales - Accessory sales for the combined men's and women's categories increased by approximately 1% compared to the prior year [4]

Core Insights - The Hershey Company reported fourth-quarter 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although adjusted earnings per share fell 36.4% year over year [1][10] - The company provided an initial outlook for 2026, expecting sales growth of 4-5% and earnings growth of 30-35% [13][14] Financial Performance - Consolidated net sales reached $3,091 million, a 7% increase from the previous year, surpassing the Zacks Consensus Estimate of $3,002 million [2] - Adjusted earnings were $1.71 per share, exceeding the consensus estimate of $1.40 [1] - Adjusted operating income declined 24% to $529.3 million, with an adjusted operating margin of 17.1%, down 700 basis points year over year [6] Sales Breakdown - North America Confectionery segment net sales were $2.48 billion, up 5.3% year over year, driven by pricing actions despite a decline in volume [7] - The North America Salty Snacks segment saw net sales of $357 million, representing a 28% year-over-year growth, aided by the LesserEvil acquisition [9] - International segment net sales were $255.6 million, a slight increase of 0.4% year over year, but reported a loss of $31.6 million compared to a profit in the prior year [11] Margin and Cost Analysis - Adjusted gross margin was 38.3%, down 650 basis points year over year due to increased cocoa and input costs, tariff expenses of approximately $30 million, and lower volumes [4] - Selling, marketing, and administrative expenses rose 12.1% year over year, driven by higher compensation and brand investment [5] Future Outlook - For 2026, Hershey anticipates net sales growth of 4-5%, with contributions from pricing actions and innovation [13] - Expected adjusted diluted earnings per share for 2026 are projected to be between $8.20 and $8.52, indicating significant growth [14] - Capital expenditures for 2026 are estimated to be between $425 million and $475 million [14]

Core Insights - Boot Barn Holdings, Inc. reported a 16% year-over-year increase in net sales for the third fiscal quarter, reaching $705.6 million, driven by strong demand across various merchandise categories and channels [4][5] - The company achieved a merchandise margin expansion of 110 basis points, contributing to earnings per diluted share of $2.79, up from $2.43 in the prior year [4][5] - Same store sales increased by 5.7%, with retail store same store sales rising 3.7% and e-commerce same store sales growing 19.6% [4][5] Financial Performance - Net income for the quarter was $85.8 million, compared to $75.1 million in the prior-year period [4][5] - Gross profit was $281.2 million, representing 39.9% of net sales, an increase from 39.3% in the previous year [5][6] - Selling, general and administrative (SG&A) expenses rose to $166.5 million, or 23.6% of net sales, up from 22.9% in the prior year [5][6] Store Expansion and Operations - The company opened 25 new stores, bringing the total store count to 514 as of the end of the quarter [4][5] - Average inventory per store increased approximately 4.1% on a same-store basis compared to the previous year [11] - Boot Barn plans to open 70 new stores in the upcoming fiscal year [11] Future Outlook - For the fiscal year ending March 28, 2026, the company expects total sales between $2.24 billion and $2.25 billion, representing growth of 17% to 18% over fiscal year 2025 [11] - SG&A expenses are projected to be approximately 24.5% of net sales, with net income expected to be between $222.8 million and $225.8 million [15]

Group 1 - The company reported total sales of MSEK 38,422 for Q4 2025, a decrease from MSEK 41,794 in the same period of the previous year [1] - Organic sales growth for Q4 2025 was 3 percent, down from 4 percent year-over-year, while adjusted organic sales growth remained at 4 percent [1] - Operating income before amortization for Q4 2025 was MSEK 3,063, slightly up from MSEK 3,036, resulting in an operating margin of 8.0 percent compared to 7.3 percent in Q4 2024 [1] Group 2 - For the full year 2025, total sales were MSEK 155,113, down from MSEK 161,921 in 2024, with organic sales growth at 4 percent, a decline from 5 percent [1] - The operating income before amortization for 2025 was MSEK 11,493, an increase from MSEK 11,200, leading to an operating margin of 7.4 percent, up from 6.9 percent [1] - The company proposed a dividend of SEK 5.30 per share for 2025, an increase from SEK 4.50 per share in the previous year [1]

Core Insights - Grainger reported earnings per share (EPS) of $9.44 for Q4 2025, slightly above the estimated $9.43, with revenue of approximately $4.43 billion, exceeding the estimated $4.40 billion [1][2] Group 1: Financial Performance - In Q4 2025, Grainger achieved sales of $4.43 billion, a 4.5% increase compared to Q4 2024, but the operating margin decreased by 70 basis points to 14.3% [2] - For the full year 2025, Grainger's sales grew to $17.9 billion, a 4.5% increase from the previous year, with an operating margin reported at 13.9%, down 150 basis points [3] - The diluted EPS for 2025 was $35.40, reflecting an 8.6% decline, but on an adjusted basis, EPS increased by 1.3% to $39.48 [3] Group 2: Cash Flow and Shareholder Returns - Grainger produced $2 billion in operating cash flow in 2025 and returned $1.5 billion to shareholders through dividends and share repurchases [4] - The company's price-to-earnings (P/E) ratio is approximately 31.47, and its price-to-sales ratio stands at about 3.04, indicating investor confidence [4] Group 3: Future Outlook - For 2026, Grainger projects a daily, organic constant currency sales growth of 6.5% to 9.0%, driven by strategic initiatives and commitment to customer service [5] - The company maintains a solid financial position with a debt-to-equity ratio of approximately 0.76 and a current ratio of about 2.72 [5]

Core Insights - Axsome Therapeutics has shown significant market performance over the past five years, driven by clinical and regulatory advancements, and is approaching large-cap status [1] - There remains potential for further investment in Axsome Therapeutics due to ongoing growth and new product developments [1] Group 1: Sales Growth - Axsome's revenue for the third quarter reached $171 million, reflecting a 63% increase compared to the same period last year [2] - The company's current product lineup includes Auvelity for depression, Sunosi for narcolepsy-related daytime sleepiness, and Symbravo for migraines, all contributing to strong sales growth [2][3] Group 2: Future Approvals - Axsome is pursuing new approvals and label expansions, including a new indication for Auvelity in treating Alzheimer's disease agitation, which has shown positive results in phase 3 studies and is under FDA consideration [4] - Sunosi has completed a phase 3 study for ADHD in adults, with plans for additional late-stage trials in related markets [5] Group 3: New Product Pipeline - The company is developing several other products, such as AXS-12 for cataplexy in narcolepsy and AXS-14 for fibromyalgia, which could significantly enhance sales potential [6] - The addressable market for Alzheimer's agitation is substantial, with over 5 million patients in the U.S. and currently only one FDA-approved treatment available [7]

Core Insights - Oshkosh Corporation (OSK) reported fourth-quarter 2025 adjusted earnings of $2.26 per share, missing the Zacks Consensus Estimate of $2.33 and down from $2.58 in the same quarter last year. However, consolidated net sales increased by 3.5% year over year to $2.69 billion, surpassing the Zacks Consensus Estimate of $2.56 billion [1]. Segment Performance - **Access Segment**: Sales increased by 1.3% year over year to $1.17 billion, driven by higher sales volume in North America, exceeding the Zacks Consensus Estimate of $981 million [2]. - **Vocational Segment**: This segment reported sales of $922.4 million, up 4.7% year over year, attributed to improved pricing, but fell short of the estimate of $1 billion [3]. - **Transport Segment**: Sales reached $566.7 million, a 6.2% increase year over year, benefiting from the ramp-up of the U.S. Postal Service's Next Generation Delivery Vehicle production and higher international sales, beating the estimate of $532 million [5]. Financial Overview - As of December 31, 2025, Oshkosh had cash and cash equivalents of $479.8 million, up from $204.9 million a year earlier. Long-term debt increased to $1.10 billion from $599.5 million [7]. - The company declared a quarterly cash dividend of 57 cents per share, payable on March 3, 2026, to shareholders on record as of February 17, 2026 [7]. 2026 Guidance - Oshkosh expects adjusted earnings per share for 2026 to be approximately $11.50, with full-year net sales projected to be around $11 billion [8]. Zacks Rank & Comparisons - Oshkosh currently holds a Zacks Rank 3 (Hold). In comparison, Ford Motor (F), REV Group (REVG), and PHINIA Inc. (PHIN) are better-ranked stocks in the auto sector, each holding a Zacks Rank 1 (Strong Buy) [9].

Core Insights - Investors seek stocks that provide substantial gains, and identifying such opportunities requires a structured approach [1] Group 1: Sales Growth - Sales growth is essential for profit generation, enabling companies to achieve efficiencies and create shareholder value [2] - Nvidia serves as a prime example, with its stock price increasing significantly due to strong sales growth in its Data Center segment [2] Group 2: Margins - Margin performance indicates operational efficiency, reflecting a company's ability to generate more profit from sales [3] - Companies like Netflix have successfully leveraged pricing power to enhance margins without losing subscribers [4] Group 3: Innovation - Innovation is critical for maintaining and expanding market share, with Nvidia's advancements in artificial intelligence exemplifying this trend [5] Group 4: Earnings Estimates - Positive revisions in earnings estimates are crucial for stock price appreciation, with the Zacks Rank system categorizing stocks based on these estimates [6] - Micron Technology's stock performance illustrates the impact of favorable earnings estimates, as it maintained a Zacks Rank of 1 (Strong Buy) since August of the previous year [7] Group 5: Common Traits of Market-Beating Stocks - Successful stocks typically exhibit strong sales growth, margin expansion, innovation, and positive earnings estimate revisions [8] Conclusion - Key factors contributing to stock outperformance include robust sales growth, margin expansion, innovation, and favorable earnings estimate revisions [9]