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]

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Healthcare Services (HCSG) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Healthcare Services is a member of our Business Services group, which includes 256 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector grou ...

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]

Core Insights - Exponent, Inc. reported flat revenues for Q2 2025 but exceeded expectations, driven by growth in dispute-related activities in construction, automotive, and medical device sectors [2][4] - The company is optimistic about early-stage work in digital health, AI usability, and distributed energy systems, indicating significant growth potential [2][3] Financial Results - Total revenues for Q2 2025 increased by 1% to $142.0 million compared to $140.5 million in Q2 2024, while revenues before reimbursements were approximately flat at $132.9 million [4] - Net income decreased to $26.6 million, or $0.52 per diluted share, down from $29.2 million, or $0.57 per diluted share in Q2 2024 [5] - EBITDA for Q2 2025 decreased to $37.0 million, representing 27.8% of revenues before reimbursements, compared to $39.9 million, or 30.2% in Q2 2024 [6] Year-to-Date Financial Performance - For the first half of 2025, total revenues increased by 1% to $287.5 million, while revenues before reimbursements were approximately flat at $270.3 million [7] - Net income for the first half of 2025 was $53.2 million, or $1.03 per diluted share, down from $59.4 million, or $1.15 per diluted share in the same period of 2024 [8] - EBITDA for the first half of 2025 decreased to $74.5 million, or 27.6% of revenues before reimbursements, compared to $80.1 million, or 29.7% in the first half of 2024 [9] Business Segments - The engineering and other scientific segment accounted for 85% of revenues before reimbursements in Q2 2025, with a 1% increase in revenues driven by demand in construction, automotive, and medical device sectors [11] - The environmental and health segment represented 15% of revenues before reimbursements in Q2 2025, with a 4% decrease in revenues due to lower activity in life sciences and chemical regulatory services [12] Business Outlook - The company is optimistic about market opportunities and expects growth in the second half of 2025, maintaining its full-year guidance [13] - Exponent anticipates mid-single-digit growth in revenues before reimbursements and EBITDA to be between 26.75% and 27.75% of revenues before reimbursements for the full fiscal year 2025 [16]