Core Insights - The Zacks Equity Research team has highlighted several stocks, including AbbVie Inc., RTX Corp., International Business Machines Corp., EVI Industries, Inc., and Rocky Mountain Chocolate Factory, Inc. in their Analyst Blog [1][2] AbbVie Inc. (ABBV) - AbbVie shares have increased by 13.8% over the past six months, while the Zacks Large Cap Pharmaceuticals industry has gained 29.5% [4] - The company exceeded fourth-quarter estimates for both earnings and sales, successfully managing the loss of exclusivity for Humira by launching new immunology drugs, Skyrizi and Rinvoq, which are performing well [4][5] - AbbVie's neuroscience portfolio is also contributing to revenue growth, with robust net sales growth reported in 2025, marking the second full year post-Humira's loss of exclusivity [5] RTX Corp. (RTX) - RTX shares have outperformed the Zacks Aerospace - Defense industry, gaining 29.2% compared to 11.7% over the past six months [6] - The company reported fourth-quarter earnings and revenues that surpassed estimates, benefiting from strong orders for defense products from the Pentagon and foreign allies [6][7] - RTX's backlog reached $268 billion as of December 31, 2025, supported by improving global commercial air traffic [8] International Business Machines Corp. (IBM) - IBM shares have risen by 10.8% over the past six months, while the Zacks Computer - Integrated Systems industry has gained 61.4% [9] - The company reported strong fourth-quarter results, with adjusted earnings and revenues exceeding estimates, driven by growth in hybrid cloud, AI-powered automation, and enterprise consulting [9][10] - IBM is focusing on its Watsonx platform for AI capabilities and quantum technology, although it faces challenges from traditional business weaknesses and high debt levels [11] EVI Industries, Inc. (EVI) - EVI shares have outperformed the Zacks Industrial Services industry, increasing by 24.4% over the past year [12] - The company reported a 24% revenue increase in the December quarter and a 20% rise for the first six months of FY26, with gross margin expanding to approximately 31% [12][13] - Despite solid revenue growth, net income has dipped due to rising SG&A expenses, and the company faces increased working capital demands [14] Rocky Mountain Chocolate Factory, Inc. (RMCF) - Rocky Mountain shares have outperformed the Zacks Retail - Restaurants industry, gaining 51.1% over the past year [15] - The company is focusing on margin improvement, with manufacturing gross margin rising to 21.4% from 10%, and EBITDA turning positive [15][16] - However, Rocky Mountain faces liquidity risks and high-cost debt, which could impact its operational stability [17]

Core Viewpoint - Howmet (HWM) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.74 per share a year ago [1] Financial Performance - The earnings surprise for the quarter was +8.66%, with the company also surpassing earnings expectations in the previous quarter by +4.4% [2] - Howmet's revenues for the quarter reached $2.17 billion, surpassing the Zacks Consensus Estimate by 1.26%, and up from $1.89 billion year-over-year [3] Stock Performance - Howmet shares have increased approximately 12.6% since the beginning of the year, compared to a 1.4% gain in the S&P 500 [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.02 for the upcoming quarter and $4.43 for the current fiscal year [8] - The Zacks Rank for Howmet is currently 3 (Hold), indicating expected performance in line with the market [7] Industry Context - The Aerospace - Defense industry, to which Howmet belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Core Viewpoint - Howmet Aerospace Inc. is expected to report strong fourth-quarter results, with earnings projected to increase by 31.1% year-over-year and revenues expected to rise by 13.2% [2][7]. Financial Performance - The Zacks Consensus Estimate for earnings is 97 cents per share, with revenues projected at $2.14 billion for Q4 2025 [2]. - Earnings estimates have increased by a penny over the past 30 days, indicating positive momentum [2]. - The company has a history of exceeding earnings estimates, with an average surprise of 5.9% over the last four quarters [3]. Market Demand - The commercial aerospace market is driving demand, particularly for wide-body aircraft, which supports OEM spending [5]. - Revenues from the commercial aerospace market are estimated at $1.14 billion, reflecting a 14% increase year-over-year [6]. - The defense aerospace market is also contributing significantly, with expected revenues of $365 million, indicating a 19.7% growth from the previous year [8]. Challenges - The commercial transportation market, particularly the Forged Wheels segment, is facing challenges due to lower OEM builds and tariff impacts, with revenues projected to decline by 6.4% to $279 million [9]. - Supply-chain disruptions in the aerospace sector have led to delays and increased costs, which may impact performance [10]. Valuation - Howmet's forward P/E ratio stands at 49.65X, significantly higher than the industry average of 32.61X, which may pose risks if market sentiment declines [14]. - Compared to peers like General Dynamics and RTX Corporation, Howmet's valuation appears elevated, with General Dynamics and RTX trading at 21.35X and 28.48X, respectively [14]. Investment Outlook - The recent passage of the fiscal year 2026 Defense Appropriations Act, allocating $838.7 billion, is expected to benefit Howmet's defense business and enhance contract opportunities [16]. - Despite strong fundamentals, the company faces near-term challenges in the commercial transportation market and high valuation concerns [17].

Group 1: Company Performance - Huntington Ingalls (HII) has gained approximately 21.5% year-to-date, outperforming the average return of 7.1% for Aerospace companies [4] - The Zacks Consensus Estimate for HII's full-year earnings has increased by 1.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - HII currently holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook [3] Group 2: Industry Comparison - Huntington Ingalls is part of the Aerospace - Defense industry, which includes 30 companies and has an average year-to-date gain of 7.4%, indicating HII's superior performance [6] - In contrast, Moog (MOG.A), another Aerospace stock, has returned 32.2% year-to-date and is part of the Aerospace - Defense Equipment industry, which has a lower average gain of 6.4% [5][7] - The Aerospace sector as a whole ranks 1 in the Zacks Sector Rank, reflecting strong overall performance among its 68 individual stocks [2]

分组1 - Huntington Ingalls (HII) reported quarterly earnings of $4.04 per share, exceeding the Zacks Consensus Estimate of $3.72 per share, and showing an increase from $3.15 per share a year ago, resulting in an earnings surprise of +8.53% [1] - The company achieved revenues of $3.48 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 13.73%, compared to $3 billion in the same quarter last year [2] - Huntington Ingalls has outperformed the S&P 500, with shares increasing about 21.5% since the beginning of the year, while the S&P 500 gained only 0.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $3.75 on revenues of $2.87 billion, and for the current fiscal year, it is $17.30 on revenues of $12.69 billion [7] - The Aerospace - Defense industry, to which Huntington Ingalls belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - The estimate revisions trend for Huntington Ingalls was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Core Insights - Lockheed Martin reported quarterly earnings of $7.43 per share, exceeding the Zacks Consensus Estimate of $6.24 per share, but down from $7.67 per share a year ago, resulting in an earnings surprise of +19.07% [1] - The company achieved revenues of $20.32 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.48% and increasing from $18.62 billion year-over-year [2] - Lockheed's stock has increased by approximately 23.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The future performance of Lockheed'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 $7.13, with expected revenues of $18.71 billion, and for the current fiscal year, the consensus EPS is $29.55 on revenues of $77.8 billion [7] Industry Context - The Aerospace - Defense industry, to which Lockheed belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Company Overview - Astronics Corporation (ATRO) is part of the Aerospace sector, which includes 68 individual stocks and currently holds a Zacks Sector Rank of 2, indicating strong performance relative to other sectors [2] - The company has a Zacks Rank of 1 (Strong Buy), emphasizing its improving earnings outlook based on earnings estimates and revisions [3] Performance Metrics - The Zacks Consensus Estimate for ATRO's full-year earnings has increased by 12.5% over the past quarter, reflecting positive analyst sentiment [4] - Year-to-date, ATRO has returned approximately 41.2%, outperforming the average gain of 40% for Aerospace stocks [4] - In comparison to its specific industry, Aerospace - Defense Equipment, which has gained an average of 48.7% this year, ATRO is slightly underperforming [6] Industry Context - The Aerospace - Defense Equipment industry, which includes 37 stocks, currently ranks 53 in the Zacks Industry Rank [6] - Another stock in the Aerospace sector, Intuitive Machines, Inc. (LUNR), has returned 40.5% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The broader Aerospace - Defense industry, consisting of 30 stocks, is ranked 85 and has seen a gain of 36.9% this year [7]

Core Viewpoint - Lockheed Martin reported quarterly earnings of $5.8 per share, missing the Zacks Consensus Estimate of $6.24 per share, and showing a decline from $7.67 per share a year ago, indicating an earnings surprise of -7.10% [1] Financial Performance - The company posted revenues of $20.32 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.48%, and showing an increase from $18.62 billion year-over-year [2] - Over the last four quarters, Lockheed has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Lockheed shares have increased approximately 23.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $7.13 for the coming quarter and $29.55 for the current fiscal year [4][7] - The Zacks Rank for Lockheed is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Aerospace - Defense industry is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Lockheed Martin (LMT) is expected to report fourth-quarter 2025 results on January 29, 2026, with revenue estimates at $19.83 billion, reflecting a 6.5% increase year-over-year, while earnings per share (EPS) are projected at $6.24, indicating an 18.6% decline from the previous year [1][5]. Revenue Estimates - The Zacks Consensus Estimate for current quarter revenue is $19.83 billion, with a year-over-year growth estimate of 6.48% [2]. - The revenue for the next quarter is estimated at $18.71 billion, with a growth estimate of 4.17% [2]. - For the current year, total revenue is projected at $74.55 billion, with a growth estimate of 4.94%, and for the next year, it is expected to reach $77.80 billion, with a growth estimate of 4.36% [2]. Earnings Estimates - The Zacks Consensus Estimate for EPS in the current quarter is $6.24, reflecting a year-over-year decline of 18.64% [3]. - The next quarter's EPS estimate is $7.13, with a slight decline of 2.06% expected [3]. - For the current year, EPS is projected at $21.90, indicating a significant decline of 23.08%, while the next year’s EPS is expected to rise to $29.55, reflecting a growth of 34.93% [3]. Performance Metrics - LMT has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 13.29% [4]. - The company has an Earnings ESP of -9.36% and a Zacks Rank of 3, indicating a neutral outlook for the upcoming earnings report [6]. Key Growth Drivers - Increased production of F-35 jets, missiles, helicopters, and space programs is expected to drive revenue growth [5][8]. - The Aeronautics segment is likely to benefit from higher sales volume due to increased production contracts for the F-35 jet program [8]. - The Missiles and Fire Control segment is anticipated to see improved sales performance from tactical and strike missile programs [8]. Challenges Impacting Earnings - Higher tariff-related costs and program charges are expected to pressure earnings despite increased sales volume [10]. - Losses from helicopter contracts and charges related to classified programs are also anticipated to negatively impact the bottom line [11]. Stock Performance and Valuation - LMT's stock has increased by 41.6% over the past six months, outperforming the aerospace-defense industry growth of 8.6% [12]. - The forward 12-month price-to-sales (P/S) ratio for LMT is 1.76X, which is lower than the industry average of 2.72X, suggesting a more favorable valuation compared to peers [13]. Long-term Outlook - The company is well-positioned for long-term growth due to steady demand for core defense programs and a strong order backlog [15]. - Continued contract wins across key platforms, rising international demand, and supportive U.S. defense spending are expected to enhance revenue visibility [15][18]. - However, geopolitical factors and potential supply-chain disruptions present uncertainties that could affect performance [18].

Core Insights - General Dynamics reported quarterly earnings of $4.17 per share, exceeding the Zacks Consensus Estimate of $4.11 per share, and showing a slight increase from $4.15 per share a year ago, resulting in an earnings surprise of +1.56% [1] - The company achieved revenues of $14.38 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.21% and increasing from $13.34 billion year-over-year [2] - General Dynamics has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +4.02%, with actual earnings of $3.88 per share compared to an expected $3.73 per share [1] - The current consensus EPS estimate for the upcoming quarter is $3.80, with projected revenues of $12.53 billion, while the estimate for the current fiscal year is $17.19 on revenues of $54.31 billion [7] Stock Performance - General Dynamics shares have increased approximately 8.9% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Aerospace - Defense industry, to which General Dynamics belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]