Core Insights - Zacks Equity Research highlights key stocks including Johnson & Johnson, Netflix, Arista Networks, Omega Flex, and AXIL Brands, providing insights into their performance and market conditions [1][2] Johnson & Johnson - Johnson & Johnson's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months, with a gain of 38.7% compared to the industry's 22.5% [4] - The company exceeded Q4 earnings and sales estimates, driven by growth in its Innovative Medicine unit, despite facing challenges from the Stelara patent expiration [4][5] - The MedTech segment has shown operational growth, and the company anticipates higher sales growth in both segments for 2026 [5] Netflix - Netflix's shares have underperformed the Zacks Broadcast Radio and Television industry over the past six months, declining by 27.4% compared to the industry's 13.1% [6] - The company reported solid Q4 2025 results, with earnings surpassing estimates and revenue increasing by 18% to $12.05 billion, alongside a significant rise in advertising revenue [7][8] - Despite projecting revenue growth of 12-14% for 2026, Netflix faces challenges from regulatory hurdles related to the proposed Warner Bros. Discovery acquisition and increasing competition from Disney and Amazon [6][8] Arista Networks - Arista Networks' shares have outperformed the Zacks Internet - Software industry over the past six months, with a gain of 26.1% compared to the industry's decline of 9.7% [9] - The company benefits from strong demand trends and a scalable product portfolio, including advanced cloud-native software and high-performance switching products [9][10] - However, Arista faces competition in cloud networking solutions and margin pressures due to rising costs and high customer concentration [11] Omega Flex - Omega Flex's shares have gained 3% over the past six months, while the Zacks Steel - Pipe and Tube industry has increased by 20.7% [12] - The company maintains a debt-free balance sheet with $49.4 million in cash and has a disciplined capital return policy reflected in its dividend payouts [12][13] - Despite its competitive edge in gas piping products, Omega Flex has experienced a 2.2% revenue decline and an 18% drop in operating profit year-to-date due to pressures from residential construction and rising costs [14] AXIL Brands - AXIL Brands' shares have outperformed the Zacks Consumer Products - Staples industry over the past year, with a gain of 26.5% compared to the industry's decline of 7.4% [15] - The company is expanding its retail footprint and shifting towards a diversified omni-channel strategy, enhancing its scale and customer reach [16] - AXIL Brands has a strong balance sheet and is positioned for long-term growth, particularly in the hair and skin care segment [17]

Core Insights - Mueller Water Products (MWA) reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.22 per share a year ago [1][2] - The company achieved revenues of $380.8 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.18% and increasing from $348.2 million year-over-year [3] - The stock has gained approximately 15.8% since the beginning of the year, slightly outperforming the S&P 500's gain of 15.6% [4] Earnings Performance - The earnings surprise for the recent quarter was +11.76%, while the previous quarter saw a surprise of -2.86% [2] - Over the last four quarters, Mueller Water Products has exceeded consensus EPS estimates three times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $317.3 million, and for the current fiscal year, it is $1.42 on revenues of $1.47 billion [8] - The estimate revisions trend for the company was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - Mueller Water Products operates within the Zacks Steel - Pipe and Tube industry, which is currently ranked in the bottom 17% of over 250 Zacks industries [9] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [9]

Core Insights - MRC Global reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.22 per share a year ago, representing an earnings surprise of -53.57% [1] - The company posted revenues of $678 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 18.8%, and down from $797 million year-over-year [2] - MRC shares have increased by approximately 8.3% since the beginning of the year, compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $738.4 million, and for the current fiscal year, it is $0.71 on revenues of $3.08 billion [7] - The estimate revisions trend for MRC was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Steel - Pipe and Tube industry, to which MRC belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Mueller Water Products, is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of +54.6%, with revenues projected at $362.05 million, up 4% from the previous year [9][10]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - Valmont Industries (VMI) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for Valmont Industries is 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - VMI shares have increased by 3.82% over the past week, outperforming the Zacks Steel - Pipe and Tube industry, which rose by 1.3% [5] - Over the past month, VMI's price change is 8.92%, significantly higher than the industry's 2.14% [5] - In the last quarter, VMI shares rose by 10.15%, and over the past year, they gained 23.21%, while the S&P 500 increased by 6.56% and 15.83%, respectively [6] Trading Volume - The average 20-day trading volume for VMI is 157,152 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, three earnings estimates for VMI have been revised upwards, while none have been lowered, raising the consensus estimate from $18.63 to $19.02 [9] - For the next fiscal year, one estimate has increased, while one has decreased during the same period [9] Conclusion - Considering the strong price performance, positive earnings revisions, and high Momentum Style Score, VMI is identified as a solid momentum pick and is recommended for investors looking for potential near-term gains [11]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Valmont Industries (VMI) currently holding a Momentum Style Score of B [2][3] Group 2: Valmont Industries Performance - Valmont Industries has shown a 2.7% increase in shares over the past week, while the Zacks Steel - Pipe and Tube industry increased by 2.92% [5] - Over the past quarter, VMI shares increased by 21.49%, and over the last year, they gained 34.94%, outperforming the S&P 500's increases of 10.18% and 20.38% respectively [6] - The average 20-day trading volume for VMI is 177,740 shares, indicating a bullish sign if the stock is rising with above-average volume [7] Group 3: Earnings Outlook - In the past two months, four earnings estimates for VMI have moved higher, with no downward revisions, raising the consensus estimate from $18.12 to $18.63 [9] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [9] Group 4: Conclusion - Valmont Industries is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Viewpoint - MRC Global reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, but down from $0.31 per share a year ago, indicating an earnings surprise of +8.70% [1] Financial Performance - The company posted revenues of $798 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.35%, although this is a decrease from year-ago revenues of $832 million [2] - Over the last four quarters, MRC has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - MRC shares have increased approximately 12.4% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.32 for the coming quarter and $0.87 for the current fiscal year, alongside revenues of $832.9 million and $3.04 billion respectively [7] - The estimate revisions trend for MRC was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Steel - Pipe and Tube industry, to which MRC belongs, is currently in the top 23% of over 250 Zacks industries, suggesting a positive outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Viewpoint - Mueller Water Products reported quarterly earnings of $0.34 per share, slightly missing the consensus estimate of $0.35 per share, but showing an increase from $0.32 per share a year ago [1][2] Financial Performance - The company posted revenues of $380.3 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.84% and up from $356.7 million year-over-year [3] - Over the last four quarters, Mueller Water Products has surpassed consensus revenue estimates four times [3] Stock Performance - Since the beginning of the year, Mueller Water Products shares have increased by approximately 7.7%, outperforming the S&P 500's gain of 6.1% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $358.8 million, and for the current fiscal year, it is $1.23 on revenues of $1.39 billion [8] - The Steel - Pipe and Tube industry, to which Mueller Water Products belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable industry outlook [9]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - Valmont Industries (VMI) currently holds a Momentum Style Score of A, indicating strong potential for momentum-based investment [2][11] Company Performance - VMI shares have increased by 0.16% over the past week, outperforming the Zacks Steel - Pipe and Tube industry, which rose by 0.14% [5] - Over the last quarter, VMI shares have risen by 22.24%, and over the past year, they have increased by 32.31%, compared to the S&P 500's gains of 18.84% and 15.9% respectively [6] - The average 20-day trading volume for VMI is 200,999 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for VMI have been revised upwards, leading to an increase in the consensus estimate from $18.14 to $18.49 [9] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [9] Investment Recommendation - Given the strong performance metrics and positive earnings outlook, VMI is rated as a 2 (Buy) stock with a Momentum Score of A, making it a compelling option for near-term investment [11]

Company Performance - Valmont Industries reported quarterly earnings of $4.88 per share, exceeding the Zacks Consensus Estimate of $4.72 per share, and showing an increase from $4.76 per share a year ago, representing an earnings surprise of +3.39% [1] - The company posted revenues of $1.05 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.13%, and compared to year-ago revenues of $1.04 billion [2] - Over the last four quarters, Valmont has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Valmont shares have increased by approximately 8.2% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the coming quarter is $4.50 on revenues of $1.03 billion, and for the current fiscal year, it is $18.12 on revenues of $4.08 billion [7] - The estimate revisions trend for Valmont was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Steel - Pipe and Tube industry, to which Valmont belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [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]

Company Performance - Esab (ESAB) has returned approximately 8.1% year-to-date, outperforming the average gain of 7.7% in the Industrial Products group [4] - The Zacks Consensus Estimate for ESAB's full-year earnings has increased by 0.1% over the past 90 days, indicating an improving earnings outlook [3] - Esab is currently ranked 2 (Buy) in the Zacks Rank system, reflecting strong analyst sentiment [3] Industry Comparison - Esab is part of the Metal Products - Procurement and Fabrication industry, which has gained an average of 11.2% this year, indicating that ESAB is slightly underperforming its industry [5] - Valmont Industries (VMI), another stock in the Industrial Products sector, has returned 9.6% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5] - The Steel - Pipe and Tube industry, to which Valmont Industries belongs, has seen a year-to-date increase of 1.9% [6]