Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Gartner's shares have decreased by approximately 2.8% since the last earnings report, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1]. Earnings Estimates - Estimates for Gartner have remained flat over the past month, indicating no significant changes in expectations [2]. VGM Scores - Gartner holds a Growth Score of B and a Momentum Score of A, but has a Value Score of D, placing it in the bottom 40% for this investment strategy. The overall aggregate VGM Score for the stock is B, which is relevant for investors not focused on a single strategy [3]. Outlook - Gartner has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]. Industry Performance - Gartner is part of the Zacks Consulting Services industry. CRA International (CRAI), a competitor in the same industry, has seen a 6.1% increase in its stock price over the past month. CRA reported revenues of $181.85 million for the quarter ended March 2025, reflecting a year-over-year increase of 5.9% [5]. - CRA's earnings per share (EPS) for the same quarter was $2.22, compared to $1.96 a year ago. For the current quarter, CRA is expected to post earnings of $1.83 per share, with no change from the previous year. The Zacks Consensus Estimate for CRA has changed by +0.4% over the last 30 days, resulting in a Zacks Rank of 3 (Hold) and a VGM Score of D [6].

Trade and Tariffs - The Trump administration has reached a short-term trade agreement with China, reducing tariffs on Chinese imports from 145% to approximately 30% and on US goods from 125% to 10% [4][6][10] - The market reacted positively to the news, with a notable rally in tech stocks, which rose by 8% in the week following the announcement [4][6] - Companies are facing increased costs due to tariffs, and there is uncertainty about whether they can pass these costs onto consumers or if margins will contract [7][10] Walmart's Pricing Strategy - Walmart has indicated that it will raise prices on some goods due to tariff impacts, which is significant given its position as a low-cost provider [9][10] - The company expects prices to increase this summer, reflecting the cost pressures from tariffs that began in late April and accelerated into May [10][11] - Despite the anticipated price increases, Walmart has reiterated its guidance for 3%-4% net sales growth, indicating confidence in its overall business performance [11][12] CAVA's Performance - CAVA reported a 10.8% increase in same-store sales, driven by a 7.5% increase in customer visits, contrasting with declines seen in other restaurant chains [16][17] - The company has reached the billion-dollar sales mark over the past 12 months, showcasing strong growth in a challenging market [17] - CAVA's food and beverage costs increased to 29.3% of sales, but the company maintains a strong store margin around 25% [18] Dick's Sporting Goods Acquisition - Dick's Sporting Goods announced a $2.4 billion acquisition of Foot Locker, which was met with skepticism from the market, resulting in a 10% drop in Dick's shares [22][23] - The acquisition aims to turn around Foot Locker, which has been struggling with declining sales and changing consumer buying patterns [22][23] - Foot Locker's international presence may provide Dick's with new growth opportunities, although concerns remain about the viability of the acquisition [24][25] On Holdings' Growth - On Holdings reported a 43% increase in revenues, with direct-to-consumer sales up 45%, indicating strong demand for its products [27][28] - The company raised its sales guidance for the year to 28%, reflecting confidence in its growth trajectory [27] - On Holdings benefits from sourcing 90% of its shoes from Vietnam and Indonesia, which mitigates the impact of tariffs on its business [28][29] Evolv Technology and Booz Allen Hamilton - Evolv Technology is focused on transforming security management in public and private buildings, with a strong customer base in sports venues [57][58] - Booz Allen Hamilton, a consultant primarily serving the federal government, faces challenges due to potential cutbacks in defense spending but maintains a significant backlog of $39 billion [59][60]

Core Insights - Alithya Group inc. will announce its financial results for the fourth quarter and fiscal year ending March 31, 2025, on June 12, 2025 [1] - A conference call will be held at 9:00 a.m. Eastern time on the same day, with a question-and-answer session for the financial community [1][2] Company Overview - Alithya is a provider of AI-centric strategic consulting and digital transformation services, aimed at solving business challenges and unlocking new opportunities for clients [3] - The company utilizes a team of industry experts, AI-based intellectual property solutions, and the latest digital technologies to enhance efficiency and modernize processes [3] - Alithya has established a global delivery network to provide comprehensive end-to-end solutions [3]

Booz Allen Hamilton (BAH) came out with quarterly earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.59 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.26%. A quarter ago, it was expected that this defense contractor would post earnings of $1.48 per share when it actually produced earnings of $1.55, delivering a surprise of 4.73%.Over the last four quarters, ...

Core Viewpoint - Stantec's shares have experienced significant growth, rising 16% over the past month and reaching a 52-week high of $101.81, with a year-to-date increase of 29.1% compared to the broader market [1][2]. Financial Performance - Stantec has consistently exceeded earnings expectations, reporting an EPS of $0.81 against a consensus estimate of $0.79 in its last earnings report, with a revenue beat of 4.49% [2]. - For the current fiscal year, Stantec is projected to achieve earnings of $3.86 per share on revenues of $4.77 billion, reflecting a 19.5% increase in EPS and an 11.37% increase in revenues. The following fiscal year is expected to see earnings of $4.31 per share on $5.11 billion in revenues, indicating year-over-year changes of 11.53% and 7.12%, respectively [3]. Valuation Metrics - Stantec's current valuation metrics indicate a premium, trading at 26.2 times the current fiscal year EPS estimates compared to the peer industry average of 21 times. On a trailing cash flow basis, it trades at 19.2 times versus the peer group's average of 18.7 times [6]. Style Scores and Zacks Rank - Stantec has a Value Score of D, while its Growth and Momentum Scores are B and A, respectively, resulting in a combined VGM Score of B. This suggests a mixed valuation perspective [6]. - The stock holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts, indicating potential for further gains [7].

Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN) and Thomson Reuters (TRI) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and ou ...

Core Viewpoint - Hackett Group reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.39 per share a year ago, indicating a positive earnings surprise of 2.50% [1] - The company also posted revenues of $76.23 million for the quarter, surpassing the Zacks Consensus Estimate by 0.46% and reflecting a year-over-year increase from $75.73 million [2] Financial Performance - Hackett Group has consistently surpassed consensus EPS estimates over the last four quarters, achieving this milestone four times [2] - The company experienced an earnings surprise of 11.90% in the previous quarter, where actual earnings were $0.47 compared to an expected $0.42 [1][2] Stock Performance - Hackett Group shares have declined approximately 13.2% since the beginning of the year, contrasting with the S&P 500's decline of 3.9% [3] - The current Zacks Rank for Hackett Group is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.43, with projected revenues of $78.89 million, and for the current fiscal year, the estimate is $1.74 on revenues of $316.92 million [7] - The outlook for the consulting services industry is favorable, as it currently ranks in the top 30% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Data and Key Metrics Changes - The company reported total revenue of $77.9 million, up 1% year-over-year, with revenues before reimbursements at $76.2 million, also up 1% [13] - Adjusted earnings per share were $0.41, at the high end of quarterly guidance, compared to $0.39 in the prior year [19] - GAAP net income for the quarter was $3.1 million, or diluted earnings per share of $0.11, down from $8.7 million or $0.32 in the previous year [18] - Adjusted gross margin improved to 43.4% from 41.4% in the prior year, driven by higher margin GenAI consulting and implementation revenue [17] Business Line Data and Key Metrics Changes - The Global SMBT segment revenues were $43.4 million, with revenues before reimbursements at $42.6 million, a 6% increase year-over-year [13] - The Oracle Solutions segment saw revenues of $21.1 million, down 3% year-over-year, primarily due to the wind down of a large engagement [14] - The SAP Solutions segment reported revenues of $13.4 million, down 8% year-over-year, but expected to see strong demand due to increased software sales [15] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring, multi-year, and subscription-based revenues [16] - Days Sales Outstanding (DSO) increased to 73 days from 66 days in the previous quarter, attributed to extended terms on large client engagements [20] Company Strategy and Development Direction - The company is focusing on GenAI enabled transformations, viewing it as a generational opportunity that will change consulting services delivery [6][24] - The acquisition of Leeway Hertz and the integration of ZBrain are expected to enhance the company's capabilities in GenAI solutions [25][27] - The company plans to leverage its AI Explorer platform to integrate GenAI capabilities across all offerings, enhancing its market position [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic concerns and tariff negotiations may impact client decision-making [23] - The company expects IT budgets to increase, with a focus on GenAI initiatives in high feasibility areas [24] - Management anticipates continued growth in GenAI revenue, with licensing expected to start in July [49] Other Important Information - The company repurchased 379,000 shares at an average price of $30.93, totaling approximately $11.7 million [21] - A second quarter dividend of $0.12 per share was declared, payable on July 7, 2025 [21] Q&A Session Summary Question: Can you elaborate on client interactions with AI Explorer and the pipeline for implementation projects? - Management highlighted unique capabilities in ideation and evaluation, leading to favorable client reactions and new engagements [35][36] Question: What is the current capacity for AI implementation and plans for scaling further? - Management indicated a 60% to 70% increase in capacity since acquisitions, with ongoing hiring to expand resources [39] Question: Update on the joint venture with ZBrain and any ARR contracts? - Management confirmed the addition of licensed clients to the ZBrain platform and expected to finalize the JV agreement soon [40] Question: How does economic disruption impact the business model? - Management acknowledged the need to address strategic cost reduction and efficiency in light of economic disruptions [44] Question: What is the expected impact of GenAI on 2025 results? - Management expects meaningful growth in GenAI revenue and licensing, with potential for accelerated growth through the JV [47][49] Question: What portion of AI revenue was implementation revenue in the quarter? - Management estimated a 50-50 split between implementation and discovery ideation revenue, with expectations for implementation to grow significantly [59] Question: Are you seeing cross-selling from GenAI consulting clients into other services? - Management confirmed cross-selling opportunities, integrating GenAI solutions into traditional digital transformation engagements [60]

Financial Data and Key Metrics Changes - Adjusted EPS grew over 22% to $1.43, supported by solid year-over-year margin expansion [7][21] - Adjusted net revenue rose over 3% in Q2, with adjusted EBITDA for Q2 at $287 million, representing an 8% year-over-year increase [11][20] - Backlog grew 20% to more than $22 billion, a new record [7][21] Business Line Data and Key Metrics Changes - PA Consulting's revenue growth inflected positively, reaching mid-single digits and driving double-digit operating profit growth [7] - Adjusted net revenue growth for Water and Environmental was 2% in Q2, with expectations for mid to high single-digit growth in the second half [22] - Life Sciences and Advanced Manufacturing adjusted net revenue grew approximately 6% in Q2, with strong demand in both sectors [23] Market Data and Key Metrics Changes - Approximately 9% of total revenue comes from U.S. Federal infrastructure and related services, primarily tied to Department of Defense engagements [10] - The Middle East saw strong growth, continuing at double digits [45] - FX was a headwind in Q2, but if rates remain stable, it could become a tailwind in Q3 [46] Company Strategy and Development Direction - The core pillar of the strategy is to redefine the asset lifecycle for clients, focusing on high-growth markets [13][18] - The company aims to deliver sustainable, profitable growth by providing differentiated, digitally enabled solutions [18] - Continued investment in PA Consulting is being considered to strengthen the partnership and capitalize on growth opportunities [90][91] Management's Comments on Operating Environment and Future Outlook - The geopolitical backdrop remains stable, with infrastructure and consulting services in high demand [9] - The company anticipates sequential revenue growth from Q2 to Q3, with Q3 net revenue expected to grow 5% to 7% year-on-year [31] - Management expressed confidence in the backlog and its ability to absorb impacts from legal reserves and FX challenges [39][40] Other Important Information - The company returned a record amount of capital to shareholders during Q2, with $351 million in share repurchases [28] - A dividend of $0.32 per share was declared, representing a 10% year-over-year growth [29] - The company is on track to potentially return more than 100% of adjusted free cash flow in fiscal year 2025, excluding the distribution of Momentum shares [30] Q&A Session Summary Question: Can you quantify the reserve for the JV matter and discuss customer spending visibility? - Management indicated that while the procurement cycle is extending, there are no broad cancellations or delays in execution [37] Question: What are the regional dynamics, particularly in PA and the UK? - PA is experiencing strong growth, particularly in defense and security, while the UK business is rebounding with solid performance in transportation and water [41][42] Question: How is the company addressing rising construction costs? - The company is working with clients on supply chain scenario planning and value engineering opportunities due to rising costs [66][68] Question: Is there potential for stimulus spending from government customers? - Some programs that were paused are now resuming, particularly in federal infrastructure [72] Question: What is the outlook for margins and utilization rates? - Utilization rates have improved and are on par with previous years, with expectations for margin improvements in Q3 and Q4 [55][107]