Core Insights - Investors are focusing on cash-rich stocks with strong returns as attractive opportunities amid economic uncertainties, rather than solely on Federal Reserve policy shifts [1][9] Group 1: Importance of Cash Flow - Cash is essential for business vitality, providing the flexibility to make investment decisions and shielding companies from market turmoil [2] - Positive cash flow indicates an increase in liquid assets, enabling companies to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [5] - Companies must not only have positive cash flow but also increasing cash flow to ensure future growth and reduce dependency on external financing [6] Group 2: Screening for Investment Opportunities - A screening process was established to identify stocks with increasing cash flow, focusing on those whose latest cash flow is at least equal to the 5-year average [7] - Stocks with a Zacks Rank of 1 (Strong Buy) have a history of outperformance, and brokers' positive ratings further support investment decisions [8] Group 3: Qualified Stocks - Materion Corporation (MTRN) specializes in high-performance engineered materials, with a Zacks Consensus Estimate for current-year earnings improving by 8.2% [10][11] - Willdan Group, Inc. (WLDN) provides consulting services to enhance cost and energy efficiencies, with a current-year earnings estimate up by 27.7% [11][12] - Build-A-Bear Workshop, Inc. (BBW) is a leading retailer of stuffed animals, with a fiscal 2026 earnings estimate revised upward by 3.9% [12][13] - NCS Multistage Holdings, Inc. (NCSM) focuses on engineered products for oil and gas operators, with a current-year earnings estimate improving by 62% [14]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Trend Analysis - Timing entries into a trend significantly impacts investment success, as trends can reverse unexpectedly, leading to potential losses [1][2]. - A predefined screening strategy, "Recent Price Strength," helps identify stocks with strong fundamentals that can sustain their upward trends [3]. Group 2: Company Spotlight - Bowman Consulting (BWMN) - BWMN has shown a solid price increase of 58.3% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 25% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, BWMN is trading at 98.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - BWMN 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 [6]. - The stock's Average Broker Recommendation is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 4: Additional Insights - Besides BWMN, there are other stocks that meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8]. - The effectiveness of stock-picking strategies can be backtested using tools like the Zacks Research Wizard, which offers insights into successful strategies [9].

Core Insights - Stantec reported quarterly earnings of $0.98 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.82 per share a year ago [1] - The company posted revenues of $1.15 billion for the quarter ended June 2025, which was 2.42% below the Zacks Consensus Estimate, but up from $1.09 billion year-over-year [2] - Stantec shares have increased by approximately 39.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.6% [3] Earnings Outlook - The future performance of Stantec's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $1.26 billion, and for the current fiscal year, it is $3.87 on revenues of $4.77 billion [7] Industry Context - The Consulting Services industry, to which Stantec belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Summary of ICF International Conference Call Company Profile - ICF International is a professional services and technology services company with revenues slightly under $2 billion and approximately 9,500 employees. The company has been publicly traded on Nasdaq for nearly 20 years [4][5] - The company operates in two main verticals: - Energy, environment, infrastructure, and disaster recovery (48% of total revenue) - Public health and social programs (37% of total revenue) [5][6] Financial Performance - The company has a strong backlog, starting each year with over 70% of revenues secured [6] - Approximately 30% of the company's work is commercial, which is higher margin and growing rapidly, particularly in the energy sector [7] - The company expects a mid-single-digit decline in revenue for the year, primarily due to a transition in the US federal business, but anticipates returning to growth next year [9] Growth Drivers - The non-federal business is expected to grow approximately 15% this year, driven by: - Commercial energy work, primarily for utilities, which has been growing over 25% due to increased power demand from data centers and crypto [11][12] - Disaster recovery services, which are increasingly in demand due to the rising frequency and severity of natural disasters [13] - International revenues are also expected to grow by 20% due to large contracts with European Union and UK government clients [13][14] Federal Business Challenges - About 43-45% of total business is with the US federal government, which has seen significant contract cancellations due to a shift in administration priorities [15][16] - The company reported $117 million in revenue impacted by contract cancellations, with expectations that no further material cancellations will occur [18] - The federal focus is shifting towards IT modernization, with a strong emphasis on AI and agile methodologies [51][52] Sustainability and Renewable Energy - There is a continued interest in sustainability and renewable energy, despite federal shifts. Utilities are still prioritizing sustainability alongside resource adequacy [22][23] - The company is involved in various energy efficiency programs, which are funded through small charges on customer bills, and has a high recompete rate for these contracts [41][43] Disaster Recovery Business - The company has diversified its disaster recovery portfolio, now working in 20 states, and is well-positioned to respond to increasing natural disasters [34][36] - Federal funding for disaster recovery typically comes through special appropriations, which are often bipartisan [35] Margin and Future Outlook - The company has guided for flat EBITDA margins this year but has seen a slight increase in margins compared to last year due to a favorable mix of higher-margin commercial business [64][65] - The expectation is for continued margin improvement in the coming years, driven by growth in the commercial energy sector [66] Conclusion - ICF International is positioned for growth despite current challenges, with a strong focus on expanding its commercial and international business segments while navigating the complexities of federal contracts and sustainability initiatives [61][62]

Group 1: Zacks Premium Overview - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - The service aims to help investors become smarter and more confident in their investment decisions [1] Group 2: Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] Group 4: Accenture (ACN) Analysis - Accenture is recognized as a leading consulting services provider, with a revenue increase of 1.2% in fiscal 2024, currently holding a 3 (Hold) Zacks Rank and a VGM Score of A [11] - The company has a Value Style Score of B, supported by a forward P/E ratio of 18.58, and has seen eight analysts raise their earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.19 to $12.88 per share [12]

Group 1 - Healthcare Services (HCSG) is currently outperforming its peers in the Business Services sector, with a year-to-date gain of approximately 19.2% compared to an average loss of 0.3% for Business Services stocks [4] - The Zacks Consensus Estimate for HCSG's full-year earnings has increased by 10% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - HCSG holds a Zacks Rank of 1 (Strong Buy), suggesting a strong potential for beating the market in the near term [3] Group 2 - The Business Services group includes 256 companies and is currently ranked 8 in the Zacks Sector Rank, which measures the strength of individual sector groups [2] - Huron Consulting (HURN), another stock in the Business Services sector, has a year-to-date return of 1.8% and a Zacks Rank of 2 (Buy) [5] - The Business - Services industry, which includes HCSG, has gained an average of 15.4% this year, indicating that HCSG is performing well within its industry [6]

Core Insights - ICF International, Inc. (ICFI) reported mixed second-quarter 2025 results with earnings surpassing estimates while revenues fell short [1][11] - The market reacted positively to the earnings beat, resulting in a 5.4% increase in share price since the earnings release on July 31 [1] Financial Performance - Quarterly earnings per share (EPS) were $1.66, exceeding the Zacks Consensus Estimate by 1.8%, but down 1.8% year-over-year [3][8] - Total revenues amounted to $476.2 million, missing the Zacks Consensus Estimate by 0.4% and declining 7% year-over-year [3][8] Segmental Revenues - Revenues from government clients decreased by 18.2% year-over-year to $319.6 million, below the estimate of $350.2 million [4] - U.S. state and local government revenues were $85.6 million, representing 20.1% of total revenues, which was below the expected $95.8 million and down 1.02% year-over-year [4] - International government revenues reached $29.3 million, representing 6.2% of total revenues, lagging behind the anticipated $40.7 million but up 2% year-over-year [5] - U.S. federal government revenues were $204.7 million, contributing 43% to total revenues, missing the estimate of $213.7 million and down 25.2% year-over-year [5] - Commercial revenues, which accounted for 32.9% of total revenues, were $156.6 million, exceeding expectations and up 24.4% year-over-year [6] Operating Performance - Adjusted EBITDA fell 5.6% year-over-year to $52.9 million, with an adjusted EBITDA margin of 11.12%, which increased by 18 basis points from the previous year [7] Balance Sheet and Cash Flow - At the end of the quarter, cash and cash equivalents stood at $1.28 billion, down from $4.96 billion at the end of December 2024 [9] - Long-term debt increased to $462.3 million from $411.7 million in December 2024 [9] - The company used $18.9 million in cash from operating activities, with capital expenditures of $3.84 million [9] Guidance - For 2025, ICFI expects full-year operating cash flow to be approximately $150 million and capital expenditures to be between $26 million and $28 million [10] - The anticipated full-year tax rate is approximately 18.5% [10]

Group 1 - Stantec has shown strong year-to-date performance, returning approximately 39.4%, significantly outperforming the average gain of 0.6% in the Business Services sector [4] - The Zacks Consensus Estimate for Stantec's full-year earnings has increased by 3.4% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [4] - Stantec is currently ranked 2 (Buy) in the Zacks Rank system, which highlights stocks with characteristics likely to outperform the market in the near term [3] Group 2 - Stantec belongs to the Consulting Services industry, which has seen an average loss of 14.4% this year, further emphasizing Stantec's strong performance relative to its peers [6] - Coherent, another stock in the Business Services sector, has also outperformed with a year-to-date increase of 13.6% and a Zacks Rank of 1 (Strong Buy) [5] - The Technology Services industry, to which Coherent belongs, has gained 13.1% year-to-date, indicating a relatively better performance compared to the Consulting Services industry [6]

Core Viewpoint - Exponent (EXPO) reported quarterly earnings of $0.52 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.57 per share a year ago, indicating an earnings surprise of +8.33% [1][2] Financial Performance - The company achieved revenues of $132.87 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.38% and showing a slight increase from $132.43 million year-over-year [2] - Over the last four quarters, Exponent has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] Stock Performance - Exponent shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Exponent is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $133.65 million, while the estimate for the current fiscal year is $1.96 on revenues of $530.18 million [7] - The trend of earnings estimate revisions is mixed ahead of the earnings release, which may influence future stock performance [6] Industry Context - The Consulting Services industry, to which Exponent belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Second quarter revenue was $476.2 million, down 2.4% from the first quarter and a 7% decline year-over-year, or 4% when excluding subcontractor and other direct costs [20][21] - Adjusted EBITDA margin expanded by 20 basis points to 11.1%, reflecting gross margin expansion [24] - Net income was $23.7 million with diluted EPS of $1.28, compared to $25.6 million and diluted EPS of $1.36 in the previous year [25] Business Line Data and Key Metrics Changes - Revenues from commercial clients increased by 25.2% in the second quarter, driven by a 27% increase in commercial energy clients [8][21] - Revenues from state and local government clients increased by 1%, with disaster management accounting for about 45% of this client category [12] - Revenues from international government clients increased by 2%, while federal government revenues declined by 9.8% sequentially, representing a 25.2% reduction year-over-year [14][15] Market Data and Key Metrics Changes - Revenues from commercial, state and local government, and international government clients grew 13.8% and accounted for approximately 57% of total revenues, up from 47% a year ago [20] - The company expects revenues from commercial, state and local, and international government clients to increase approximately 15% this year [14] Company Strategy and Development Direction - The company is focused on expanding its capabilities in AI and other technologies while maintaining a balanced approach to capital allocation, including funding organic growth initiatives and pursuing strategic acquisitions [28] - The introduction of ICF Fathom, a suite of tailored AI solutions for federal agencies, is aimed at modernizing federal technology systems [19][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a more positive business outlook for 2025, supported by strong demand from commercial energy clients and a stable revenue outlook from state and local government clients [7][32] - The company does not foresee full-year revenues declining by as much as 10% from 2024 levels, indicating improved visibility and confidence in the business environment [30][46] Other Important Information - The company repurchased an additional $11 million shares during the first half of the year and announced a quarterly cash dividend of $0.14 per share [24][28] - Backlog at the end of the second quarter was $3.4 billion, with 54% of the backlog funded, reflecting stability and long-term visibility [25] Q&A Session Summary Question: Can you provide insights on the backlog and federal work mix? - Federal government backlog constitutes about half of the total backlog, with the remainder divided among state and local and commercial clients [34][35] Question: What improvements are being seen in federal government activity? - There has been a pickup in contract modifications and funding, particularly in IT modernization and complex program management [42][43] Question: How is the company viewing the state and local activity? - There has been no decrease in federal funding for FEMA programs, and the company is preparing for potential shifts in responsibilities to state and local governments [51][52] Question: What is the current acquisition pipeline like? - The company is focused on potential acquisitions in the commercial energy sector, while remaining cautious about federal acquisitions due to uncertainty [54][56] Question: What are the expectations for the procurement environment in the upcoming quarter? - The third quarter is expected to be strong for sales, although there are risks associated with staffing changes among contracting officers [61][62] Question: How is the growth in data centers impacting the commercial energy segment? - The demand for electricity associated with data centers is unprecedented, driving significant growth opportunities in the commercial energy sector [63][64]