Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Thermon Group (THR) currently holding a Momentum Style Score of A [2][3] Group 2: Thermon Group Performance - Thermon Group has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance in the market [3] - Over the past week, THR shares increased by 19.07%, while the Zacks Instruments - Control industry remained flat [5] - In a longer timeframe, THR shares rose by 36.75% monthly, significantly outperforming the industry's 0.62% [5] - Over the last quarter, THR shares increased by 37.02%, and by 19.57% over the past year, compared to the S&P 500's gains of 7.27% and 15.21%, respectively [6] Group 3: Trading Volume and Earnings Outlook - THR's average 20-day trading volume is 221,969 shares, which is a useful indicator of market interest [7] - In terms of earnings estimates, THR has seen 2 upward revisions in the past two months, raising the consensus estimate from $1.85 to $2.06 [9] - For the next fiscal year, there has been 1 upward revision with no downward revisions, indicating positive earnings outlook [9] Group 4: Conclusion - Considering the positive momentum indicators and earnings outlook, Thermon Group is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment [11]

Core Insights - Watts Water Technologies, Inc. (WTS) reported third-quarter 2025 adjusted earnings per share (EPS) of $2.50, an increase from $2.03 in the prior-year quarter, beating the Zacks Consensus Estimate by 9.2% [1][9] - The company's quarterly net sales rose 13% year over year to $611.7 million, surpassing the Zacks Consensus Estimate by 5.9% [1][9] - Organic sales increased by 9% year over year, driven by favorable pricing, volume, and pull-forward demand [1][9] Acquisition and Integration - In the third quarter, WTS acquired Haws Corporation, enhancing its emergency safety and hydration solutions capabilities [2] - Integration and synergy efforts across Bradley, Josam, I-CON, and EasyWater are progressing ahead of expectations [2] Regional Performance - The Americas segment saw net sales increase by 1% to $464 million, with organic sales jumping 13% [5] - Europe reported net sales growth of 4% year over year to $112 million, but organic sales decreased by 2% [6] - APMEA experienced a 1% decline in net sales to $36 million, with organic sales remaining flat [7] Financial Performance - Gross profit increased by 16.1% year over year to $298.4 million, while operating income rose by 19.5% to $111.4 million [10] - Adjusted operating margin expanded by 110 basis points to 18.2%, driven by favorable pricing and productivity gains [11] Cash Flow and Liquidity - For the nine months ended September 28, 2025, WTS generated $247.3 million in cash from operating activities, up from $221.6 million in the prior-year period [12] - Free cash flow for the same period was $216 million, compared to $204.2 million a year ago [13] Guidance - WTS raised its full-year 2025 sales guidance to an expected increase of 7%-8%, up from the previous range of 2%-5% [16] - Adjusted EBITDA margin is now forecasted to be between 21.5% and 21.6%, indicating an improvement of 140 to 150 basis points [17] Stock Performance - Shares of WTS have gained 33.1% over the past year, significantly outperforming the Zacks Instruments - Control industry, which grew by 4.8% [4]

Core Insights - Thermon Group (THR) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.38 per share a year ago, representing an earnings surprise of +52.78% [1] - The company achieved revenues of $131.72 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 9.82% and increasing from $114.65 million year-over-year [2] - Thermon Group has outperformed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $138.54 million, and for the current fiscal year, it is $1.85 on revenues of $507.25 million [7] - The estimate revisions trend for Thermon Group was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Instruments - Control industry, to which Thermon Group belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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]

Core Insights - Watts Water (WTS) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.29 per share, and up from $2.03 per share a year ago, representing an earnings surprise of +9.17% [1] - The company achieved revenues of $611.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.90%, and an increase from $543.6 million year-over-year [2] - Watts Water's stock has increased by approximately 35.1% year-to-date, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Watts Water'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 $2.06 on revenues of $561.06 million, and for the current fiscal year, it is $9.86 on revenues of $2.34 billion [7] Industry Context - The Instruments - Control industry, to which Watts Water belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [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]

Core Insights - Sensata Technologies is a significant player in the Zacks Instruments - Control industry, providing sensors and controls for automotive, industrial, and aerospace applications, and has consistently met market expectations despite competition [1] Financial Performance - For Q3 2025, Sensata reported an EPS of $0.89, exceeding the estimated $0.85 by 4.71%, and improved from $0.86 in the same quarter last year [2][6] - The company's revenue reached $932 million, surpassing the estimated $921 million, although it reflects a 5.2% decline from $983 million in the previous year, still exceeding the Zacks Consensus Estimate of $915 million by 1.86% [3][6] Financial Health - Sensata's current ratio is 2.71, indicating a strong ability to cover short-term liabilities, while its debt-to-equity ratio stands at 1.11, suggesting a moderate level of debt [4][6] Valuation Metrics - The company has a P/E ratio of 40.51, a price-to-sales ratio of 1.20, an enterprise value to sales ratio of 1.87, and an enterprise value to operating cash flow ratio of 12.44, with an earnings yield of 2.47% [5]

Core Insights - Sensata (ST) reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.86 per share a year ago [1] - The company achieved a revenue of $931.98 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.86%, although it represents a decline from $982.83 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +4.71%, following a previous surprise of +3.57% when earnings were $0.87 per share against an expectation of $0.84 [2] - Over the last four quarters, Sensata has exceeded consensus EPS estimates three times [2] Revenue Insights - Sensata has topped consensus revenue estimates four times in the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.84, with expected revenues of $901.22 million, and for the current fiscal year, the estimate is $3.35 on $3.67 billion in revenues [8] Market Performance - Sensata shares have increased by approximately 15.3% since the beginning of the year, compared to a 16.9% gain in the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Instruments - Control industry, to which Sensata belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Core Insights - Wall Street anticipates a year-over-year increase in earnings for Transcat, Inc. (TRNS) due to higher revenues, with a consensus EPS estimate of $0.46, reflecting a +31.4% change [1][3][19] - The upcoming earnings report on November 3 could significantly influence the stock price depending on whether the actual results meet or exceed expectations [2][20] Earnings Expectations - Revenues for the quarter are projected to be $79.07 million, which is a 16.6% increase from the previous year [3][19] - The consensus EPS estimate has been revised 4.65% higher in the last 30 days, indicating a positive reassessment by analysts [4][19] Earnings Surprise Prediction - The Zacks Earnings ESP for Transcat is -13.04%, suggesting a bearish outlook from analysts regarding the company's earnings prospects [12][19] - Despite the negative Earnings ESP, the company holds a Zacks Rank of 1 (Strong Buy), complicating predictions about beating the consensus EPS estimate [12][20] Historical Performance - In the last reported quarter, Transcat exceeded EPS expectations by +47.50%, but has only beaten consensus estimates once in the last four quarters [13][14] Conclusion - While Transcat is not positioned as a strong earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [17][20]

Core Insights - Badger Meter, Inc. (BMI) reported Q3 2025 EPS of $1.19, exceeding the Zacks Consensus Estimate by 7.2% and up from $1.08 in the same quarter last year [1][7] - Quarterly net sales reached $235.7 million, a 13.1% increase from $208.4 million year-over-year, driven by higher utility water sales [1][7] - The company maintains a positive outlook on long-term growth, supported by strong demand for its smart water management solutions and a robust opportunity pipeline [2][11] Financial Performance - Gross profit for the quarter was $95.8 million, up from $83.9 million year-over-year, with a gross margin of 40.7%, an increase of 50 basis points [5][7] - Operating earnings increased by 13% year-over-year to $46.1 million, while operating margin slightly declined to 19.6% [8] - Selling, engineering, and administration (SEA) expenses rose 11.8% year-over-year to $49.8 million, primarily due to the addition of SmartCover [9] Segmental Performance - Utility water sales grew by 14% year-over-year, with an 8% increase even when excluding SmartCover, driven by higher ultrasonic meter volumes and increased BEACON Software-as-a-Service sales [4] - Flow instrumentation sales increased by 4% year-over-year, supported by strength in water-related markets [4] Cash Flow & Liquidity - In Q3 2025, Badger Meter generated $51.3 million in net cash from operating activities, compared to $45.1 million a year ago [10] - As of September 30, 2025, the company had $201.7 million in cash and cash equivalents, up from $165.2 million as of June 30, 2025 [10] Strategic Outlook - The company expects to achieve an average high single-digit top-line growth rate over the next five years, driven by technology adoption and strategic pricing initiatives [11] - With a raised normalized gross margin range of 39%–42%, the company is well-positioned to invest in innovation and pursue value-creating acquisitions [12]

Badger Meter (BMI) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +7.21%. A quarter ago, it was expected that this manufacturer of products that measure gas and water flow would post earnings of $1.21 per share when it actually produced earnings of $1.17, delivering a surprise of -3. ...

Group 1 - Badger Meter, Inc. (BMI) is experiencing significant activity in the options market, particularly with the Nov 21, 2025 $130.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a negative outlook on Badger Meter, with the company currently holding a Zacks Rank 4 (Sell) in the Instruments - Control Industry, and the Zacks Consensus Estimate for the current quarter has decreased from $1.22 to $1.12 per share due to downward revisions by four analysts [3][4] Group 2 - The high implied volatility in Badger Meter's options may indicate a trading opportunity, as seasoned traders often seek to sell premium on options with such volatility, hoping the stock does not move as much as expected by expiration [4]