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Abercrombie's Hollister Turnaround: Catalyst or Drag on Results?
ZACKS· 2026-01-16 17:51
Core Insights - Hollister has emerged as a significant earnings driver for Abercrombie & Fitch Co. (ANF), achieving 16% net sales growth and 15% comparable sales growth in Q3 fiscal 2025, marking its tenth consecutive quarter of growth [2][7] Performance Summary - Hollister's growth is characterized by balanced demand across men's and women's categories, supported by increased traffic and improved customer engagement, indicating broad-based demand rather than dependence on a single trend [3] - The brand's disciplined inventory management has led to improved average unit retail through lower promotions, which has helped maintain gross margin resilience in a competitive apparel market [3] Strategic Initiatives - Abercrombie is making strategic investments in Hollister, including marketing collaborations with collegiate sports and pop-culture brands, which have enhanced customer acquisition and brand relevance [4] - Plans for physical retail expansion include opening 25 new stores and refreshing over 35 existing locations, demonstrating management's confidence in long-term demand [4] Financial Overview - Abercrombie's shares have declined by 17.5% over the past year, compared to a 3.9% decline in the industry [6] - The company trades at a forward price-to-earnings ratio of 10.88X, significantly lower than the industry average of 16.32X [8] Earnings Estimates - The Zacks Consensus Estimate for ANF's fiscal 2025 EPS indicates an 8.4% year-over-year decline, while fiscal 2026 EPS suggests a growth of 4.3% [10]
Why Dollar General (DG) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-12-19 15:51
Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score identifies undervalued stocks using ratios like P/E, PEG, and Price/Sales to find attractive investment opportunities [3] - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate revisions [5] - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank, based on earnings estimate revisions, has shown a strong performance with 1 (Strong Buy) stocks yielding an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering 3 (Hold) stocks with similar scores for potential upside [9] Stock Highlight: Dollar General - Dollar General Corporation, a major discount retailer in the U.S., is currently rated 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having seen a 36.3% increase in shares over the past four weeks [11] - Recent upward revisions from 21 analysts have raised the earnings estimate for fiscal 2026 by $0.30 to $6.44 per share, with an average earnings surprise of +22.9%, making it a noteworthy option for investors [12]
BJ's Restaurants (BJRI) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKS· 2025-11-17 15:51
Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [3][4] Zacks Style Scores - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each rated from A to F based on specific investment characteristics [4][5][6][7] - Value Score focuses on identifying undervalued stocks using financial ratios [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score assesses stocks based on price trends and earnings outlook [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10] Stock Highlight: BJ's Restaurants - BJ's Restaurants (BJRI) operates a chain of high-end casual dining restaurants in the U.S. and currently holds a 3 (Hold) Zacks Rank with a VGM Score of A [12] - The stock has shown a Momentum Style Score of B, with a price increase of 19.1% over the past four weeks [12] - Analysts have revised BJRI's earnings estimate upwards, with the Zacks Consensus Estimate increasing by $0.02 to $2.16 per share for fiscal 2025, and the company has an average earnings surprise of +155.6% [13]
Here's Why Tapestry (TPR) is a Strong Momentum Stock
ZACKS· 2025-10-24 14:50
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding investors in selecting securities with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming the market [3] - 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] Value Score - The Value Score targets value investors by identifying stocks trading below their intrinsic value using various financial ratios [3] Growth Score - The Growth Score focuses on a company's financial health and future growth potential, analyzing historical and projected earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assists momentum traders in capitalizing on price trends, utilizing recent price changes and earnings estimate adjustments [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, is a proprietary model that has historically delivered a +23.81% average annual return since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Company Spotlight: Tapestry, Inc. - Tapestry, Inc., formerly known as Coach, Inc., is a designer and marketer of lifestyle products, operating under three segments: Coach (79.9% of fiscal 2025 sales), Kate Spade (17.1%), and Stuart Weitzman (3.1%) [11] - Tapestry holds a Zacks Rank of 3 (Hold) with a VGM Score of B, and a Momentum Style Score of B, reflecting a 6.6% increase in shares over the past four weeks [12] - The company has seen a positive revision in earnings estimates, with the Zacks Consensus Estimate for fiscal 2026 increasing to $5.46 per share, alongside an average earnings surprise of +10.3% [12][13]
Here's Why Zumiez (ZUMZ) is a Strong Momentum Stock
ZACKS· 2025-08-28 14:50
Company Overview - Zumiez Inc. is a leading global lifestyle retailer specializing in apparel, footwear, and accessories, with a focus on integrating digital and physical shopping channels to enhance customer experience [12] - The company also offers a range of hardgoods for youth, including snowboards and skateboards [12] Investment Insights - Zumiez has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [13] - The stock has shown strong momentum, with a Momentum Style Score of A and a price increase of 29.7% over the past four weeks [13] - Recent earnings estimates for fiscal 2026 have been revised higher, with the Zacks Consensus Estimate increasing to $0.21 per share [13] - Zumiez has an average earnings surprise of +46%, suggesting strong performance relative to expectations [13] Conclusion - With a favorable Zacks Rank and high Style Scores, Zumiez is positioned as a potential investment opportunity for momentum investors [14]
Here's Why eBay (EBAY) is a Strong Momentum Stock
ZACKS· 2025-07-29 14:51
Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score identifies stocks benefiting from price trends, utilizing metrics like weekly price changes and monthly earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with attractive value, strong growth forecasts, and positive momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [10] Company Spotlight: eBay - eBay is currently rated 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, having seen a 6.1% increase in shares over the past four weeks [11] - For fiscal 2025, eBay's earnings estimate has been revised upwards by four analysts, with the Zacks Consensus Estimate now at $5.36 per share, reflecting an average earnings surprise of +3.1% [12]
Carvana (CVNA) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKS· 2025-07-09 14:50
Company Overview - Carvana Co. is a leading e-commerce platform for buying and selling used cars, headquartered in Phoenix, AZ [11] - The company has experienced significant growth, with revenues increasing approximately 16-fold from 2017 to 2024 [11] Investment Ratings - Carvana is currently rated 2 (Buy) on the Zacks Rank, indicating a positive outlook [12] - The company has a VGM Score of B, suggesting a favorable combination of value, growth, and momentum characteristics [12] Momentum and Earnings Estimates - Carvana has a Momentum Style Score of B, with shares rising 2.2% over the past four weeks [12] - In the last 60 days, four analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.51 to $4.99 per share [12] - The company boasts an average earnings surprise of +137.6%, indicating strong performance relative to expectations [12] Conclusion - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Carvana is positioned as a strong candidate for investors [13]
Here's Why Lowe's (LOW) is a Strong Momentum Stock
ZACKS· 2025-07-04 14:56
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, access to Zacks Rank and Industry Rank, and premium stock screens [1][2] Company Overview - Lowe's is a leading home improvement retailer, serving homeowners, renters, and commercial customers, with a focus on enhancing the experience for professional customers through upgraded brands and services [11] - The company operates primarily in the U.S. and offers services to both DIY and DIFM customers, as well as commercial business clients in construction and property management [11] Investment Ratings - Lowe's currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating a solid position in the market [12] - The stock has a Momentum Style Score of B, with a recent price increase of 0.3% over the past four weeks [12] Earnings Estimates - Four analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.02 to $12.29 per share [12] - Lowe's has an average earnings surprise of 3.2%, suggesting potential for positive performance [12] Conclusion - With a strong Zacks Rank and favorable Momentum and VGM Style Scores, Lowe's is positioned as a noteworthy option for investors [13]
GMS (GMS) Q4 Earnings and Revenues Beat Estimates
ZACKS· 2025-06-18 12:11
Core Insights - GMS reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, but down from $1.93 per share a year ago, indicating a 33.2% year-over-year decline [1] - The company achieved revenues of $1.33 billion for the quarter, surpassing the Zacks Consensus Estimate by 2.81%, but down from $1.41 billion in the same quarter last year [2] - GMS shares have underperformed, losing approximately 13.7% year-to-date compared to a 1.7% gain in the S&P 500 [3] Earnings Performance - GMS has surpassed consensus EPS estimates only once in the last four quarters [2] - The recent earnings surprise was 12.17%, following a previous quarter where actual earnings were significantly below expectations, resulting in a -33.81% surprise [1][2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65, with expected revenues of $1.42 billion, and for the current fiscal year, the EPS estimate is $6.11 on revenues of $5.53 billion [7] - The estimate revisions trend for GMS is mixed, leading to a Zacks Rank of 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Building Products - Retail industry, to which GMS belongs, is currently in the top 40% of over 250 Zacks industries, indicating a favorable industry outlook [8]
Why eBay (EBAY) is a Top Momentum Stock for the Long-Term
ZACKS· 2025-06-12 14:56
Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, helping investors identify securities likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - 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] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, targeting undervalued stocks [3] Growth Score - The Growth Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Score focuses on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth potential, and positive momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] eBay Stock Analysis - eBay is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Momentum Style Score of B, having increased by 12.6% over the past four weeks [11] - Recent analyst revisions have positively impacted eBay's earnings estimate for fiscal 2025, with the Zacks Consensus Estimate rising by $0.06 to $5.35 per share and an average earnings surprise of 3.1% [12]