Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "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 characte ...

KBR Inc. (KBR) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.43%. A quarter ago, it was expected that this the engineering, construction company would post earnings of $0.95 per share when it actually produced earnings of $1.02, delivering a surprise of +7.37%.Over the last four ...

Core Insights - Innodata Inc. (INOD) is set to release its fourth-quarter 2025 results on February 26, 2026, after market close [1] Financial Performance - Innodata reported a record third-quarter 2025, with adjusted earnings per share (EPS) of 24 cents, exceeding the Zacks Consensus Estimate by 71.4%. This is a decrease from the adjusted EPS of 51 cents in the same quarter last year [2] - Revenues for the third quarter reached $62.6 million, surpassing the consensus estimate by 4.6% and reflecting a year-over-year growth of 19.8% [2] - Adjusted EBITDA increased to $16.2 million from $13.9 million a year ago, indicating operational leverage [2] - The company maintains guidance for 45% or more year-over-year organic revenue growth in 2025 [2] Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter EPS remains unchanged at 21 cents, indicating a 32.3% decline from the year-ago EPS of 31 cents. Revenue estimates for the quarter are pegged at $69.5 million, suggesting a 17.4% year-over-year growth [5] - For 2026, revenues are expected to increase by 25.9%, with EPS projected to grow by 27.8% [6] Market Dynamics - Fourth-quarter revenues are likely supported by ongoing expansion with large technology customers and strong demand for generative AI data engineering services. The company has highlighted significant deal momentum [8] - Anticipated contracts related to high-quality pre-training data could represent approximately $68 million in potential revenue across multiple customers, with some scaling expected through 2026 [9] - The launch of Innodata Federal and engagement with a new high-profile customer may contribute to early mobilization revenues in the fourth quarter [10] Profitability Factors - Scale benefits from expanding engagements with big tech and higher-value services are expected to support gross margin dynamics [12] - Investments in new capabilities, including federal expansion and advanced model safety offerings, may pressure selling and administrative costs in the near term [13] Stock Performance - INOD stock has gained 18.5% over the past six months, outperforming some industry peers but underperforming the Zacks Engineering - R and D Services industry [16] - Compared to competitors like Cognizant Technology Solutions and Infosys, INOD has shown stronger price resilience [17] - The stock is currently trading at a premium forward P/E compared to its industry [20] Investment Outlook - Despite solid operating momentum and strong organic growth expectations, the fourth-quarter EPS is projected to decline year over year, and the Earnings ESP stands at 0.00%, indicating no clear signal for another earnings beat [22]

Investors interested in Engineering - R and D Services stocks are likely familiar with Fluor (FLR) and Babcock International Group PLC (BCKIY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive ...

Core Viewpoint - Quanta Services reported strong quarterly earnings, exceeding expectations and showing significant year-over-year growth in both earnings and revenues [1][3]. Earnings Performance - The company achieved earnings of $3.16 per share, surpassing the Zacks Consensus Estimate of $3 per share, and up from $2.94 per share a year ago, representing a +5.40% earnings surprise [1][2]. - Over the last four quarters, Quanta Services has consistently exceeded consensus EPS estimates [2]. Revenue Performance - Quanta Services reported revenues of $7.84 billion for the quarter, exceeding the Zacks Consensus Estimate by 7.78%, and up from $6.55 billion in the same quarter last year [3]. - The company has also topped consensus revenue estimates in each of the last four quarters [3]. Stock Performance - Quanta Services shares have increased approximately 23% since the beginning of the year, significantly outperforming the S&P 500, which gained only 0.5% [4]. Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [4][5]. - Current consensus EPS estimates for the upcoming quarter stand at $2.21 on revenues of $7.02 billion, and for the current fiscal year at $12.42 on revenues of $30.84 billion [8]. Industry Context - Quanta Services operates within the Zacks Engineering - R and D Services industry, which is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable industry outlook [9].

Core Viewpoint - Kadant (KAI) reported quarterly earnings of $2.27 per share, exceeding the Zacks Consensus Estimate of $2.19 per share, and showing a slight increase from $2.25 per share a year ago [1] Financial Performance - The earnings surprise for the quarter was +3.54%, and the company had a significant surprise of +18.81% in the previous quarter, where actual earnings were $2.59 compared to an expected $2.18 [2] - Kadant's revenues for the quarter reached $286.2 million, surpassing the Zacks Consensus Estimate by 4.82%, and up from $258.03 million year-over-year [3] Stock Performance - Kadant shares have increased approximately 17% since the beginning of the year, contrasting with the S&P 500's zero return [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.33 on revenues of $272.88 million, and for the current fiscal year, it is $10.25 on revenues of $1.15 billion [8] - The Engineering - R and D Services industry, to which Kadant belongs, is ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Sterling Infrastructure, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Sterling Infrastructure is expected to report quarterly earnings of $2.66 per share, reflecting an increase of +82.2% year-over-year [3]. - Revenues are projected to reach $647.81 million, marking a growth of 29.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 3.89% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Sterling Infrastructure is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.01% [11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [9]. - Sterling Infrastructure holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Sterling Infrastructure exceeded expectations by delivering earnings of $3.48 per share against an expected $2.79, resulting in a surprise of +24.73% [12]. - The company has consistently beaten consensus EPS estimates over the last four quarters [13]. Industry Context - In the Zacks Engineering - R and D Services industry, VSE is expected to report earnings of $0.88 per share, indicating a year-over-year decline of -2.2% [17]. - VSE's revenue is projected to be $294.6 million, down 1.5% from the previous year [17].

Core Insights - Sterling Infrastructure (STRL) has a strong history of exceeding earnings estimates and is well-positioned for continued success in upcoming reports [1][2] Earnings Performance - The company has consistently surpassed earnings estimates, achieving an average beat of 21.88% over the last two quarters [2] - In the most recent quarter, Sterling Infrastructure reported earnings of $3.48 per share, exceeding the Zacks Consensus Estimate of $2.79 per share by 24.73% [3] - In the previous quarter, the company reported earnings of $2.69 per share against an expectation of $2.26 per share, resulting in a surprise of 19.03% [3] Earnings Estimates and Predictions - Recent estimates for Sterling Infrastructure have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6][9] - The current Earnings ESP for the company is +2.01%, suggesting analysts are optimistic about its earnings prospects [9] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings surprise, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [7][9] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8] - A positive Earnings ESP enhances the predictive power for earnings beats, while a negative value diminishes it, though it does not necessarily indicate an earnings miss [10]

Core Viewpoint - Aecom Technology (ACM) is currently more attractive to value investors compared to Sterling Infrastructure (STRL) based on various financial metrics and analyst outlooks [3][7]. Valuation Metrics - ACM has a forward P/E ratio of 18.18, while STRL has a significantly higher forward P/E of 34.74 [5]. - The PEG ratio for ACM is 1.32, indicating a more favorable expected EPS growth rate compared to STRL's PEG ratio of 2.32 [5]. - ACM's P/B ratio stands at 5.1, whereas STRL's P/B ratio is much higher at 11.64, suggesting that ACM is more undervalued relative to its book value [6]. Analyst Outlook - ACM holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while STRL has a Zacks Rank of 3 (Hold), reflecting a less favorable outlook [3][7]. - The stronger estimate revision activity for ACM suggests a more optimistic analyst sentiment compared to STRL [7]. Value Grades - ACM has been assigned a Value grade of B, indicating it is considered undervalued, while STRL has a Value grade of F, suggesting it is overvalued based on key financial metrics [6].

Core Insights - KBR Inc. has expanded its relationship with the U.S. Space Force through two task orders totaling $103 million, focusing on AI-enabled analytics and technical expertise to enhance decision-making and personnel readiness [1][9] - The contract supports KBR's Mission Technology Solutions segment, which is experiencing growth due to demand in cybersecurity, digital engineering, and space capabilities [2][9] - KBR's federal pipeline remains strong, bolstered by ongoing investments in space operations and defense modernization, contributing to backlog growth and improved revenue visibility [3][4] Company Performance - KBR's backlog has reached $23 billion, enhancing revenue visibility and offsetting volatility in other segments [4][9] - The company has secured significant awards, including a $2.5 billion NASA recompete for astronaut health services, with an additional $1 billion in options [2] - KBR's stock has seen a 1.5% increase following the announcement of the new contracts, although it has declined 10.6% over the past six months [1][10] Competitive Landscape - KBR operates in a competitive environment alongside peers like Fluor Corporation and Sterling Infrastructure, focusing on mission-critical programs in defense and infrastructure [5] - Fluor has reported a backlog of $28.2 billion, with a strong focus on energy solutions and urban development [6] - Sterling has experienced a 32% year-over-year revenue growth, driven by demand in data centers and e-commerce distribution [7] Valuation and Earnings Estimates - KBR's stock is currently trading at a forward P/E ratio of 10.46, indicating a discount compared to industry peers [12] - Earnings estimates for KBR have trended upward to $4.17 per share for 2026, although revenue is expected to decline by 11% year-over-year [14]