Strategy (MSTR) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this business software company have returned -8.2%, compared to the Zacks S&P 500 composite's +4.2% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Strategy falls in, has gained 7.4%. The key question now is: What could be the stock's future dir ...

Core Viewpoint - Strategy (MSTR) has experienced a significant decline in stock price and is underperforming compared to major indices, with upcoming financial results expected to show substantial year-over-year earnings growth despite a slight revenue decline [1][2][3]. Company Performance - In the latest trading session, Strategy closed at $176.50, down 3.71% from the previous day, underperforming the S&P 500, which lost 1.07% [1]. - Over the last month, Strategy's shares have decreased by 12.1%, contrasting with the Finance sector's gain of 2.46% and the S&P 500's gain of 0.94% [1]. Upcoming Financial Results - Analysts expect Strategy to report earnings of $46.02 per share, indicating a year-over-year growth of 1538.13%, while revenue is projected at $119.6 million, down 0.91% from the prior-year quarter [2]. - Full-year estimates suggest earnings of $78.04 per share and revenue of $473.1 million, representing year-over-year changes of +1261.31% and +2.08%, respectively [3]. Analyst Estimates and Confidence - Recent changes in analyst estimates for Strategy indicate a positive outlook, reflecting analysts' confidence in the company's performance and profit potential [3]. - The Zacks Rank system, which assesses estimate changes, shows that stocks rated 1 (Strong Buy) have historically delivered an average annual return of +25% since 1988 [5]. Valuation Metrics - Strategy is currently trading at a Forward P/E ratio of 2.35, significantly lower than the industry average of 12.42, suggesting it is undervalued [6]. - The Financial - Miscellaneous Services industry, to which Strategy belongs, ranks in the top 35% of all industries, indicating a strong position within the sector [6].

Market Overview - US stocks experienced slight gains, with the Dow Jones Industrial Average and S&P 500 both increasing by approximately 0.2%, while the Nasdaq Composite also rose nearly 0.2% [1] - There is a growing belief on Wall Street that the Federal Reserve will move towards easing monetary policy, with an 89% probability of a rate cut being priced in by traders following disappointing economic data [2] Federal Reserve Expectations - Speculation surrounds Kevin Hassett potentially replacing Jerome Powell as Fed chair, which could lead to a more dovish monetary policy, supported by President Trump's push for rapid rate cuts [3] - Jobless claims showed an unexpected decline, but corporate layoffs in November reached their highest level in three years, indicating mixed signals in the labor market [4] Earnings Reports - Salesforce shares surged after the company raised its outlook, exceeding analyst expectations, while Snowflake's stock fell due to revenue guidance that did not meet expectations despite a strengthened partnership with Anthropic [5] - Upcoming earnings reports from Dollar General and Kroger are anticipated to provide insights into consumer resilience, alongside Hewlett-Packard Enterprise's earnings [6]

Core Viewpoint - Progress Software's stock has dropped 36% in 2025 despite consistently beating expectations and raising guidance, raising questions about whether the stock is undervalued [2] Company Overview - Progress Software, based in Burlington, Massachusetts, has a growth strategy focused on acquisitions, primarily targeting small database and business software companies [3] - The company employs 3,000 people and serves 86,000 customers, generating approximately $250 million in revenue in the third quarter, with an average revenue per customer of $3,000 [4] Legal Challenges - A significant uncertainty for Progress's future is a lawsuit stemming from a breach in its MOVEit file transfer app, potentially exposing the personal data of 95.8 million individuals across 2,773 organizations [5] - The financial liability from the legal proceedings could range from $30 million to over $500 million, depending on the outcome [6] Bull Case - The bullish perspective on Progress Software is supported by its high margins, low valuation (8x earnings), and strong recurring revenue growth (47%) [7] - Successful integration of the ShareFile acquisition and plans to reduce debt by $160 million this year could improve operations [8] - The company's AI capabilities are expected to enhance pricing power and customer acquisition, potentially leading to faster growth [8] Customer Value Proposition - Progress Software provides AI-driven solutions to help small businesses improve productivity and customer satisfaction, boasting a satisfaction rate of 93% to 94% [10] - The company enables clients to utilize generative AI for marketing and operational efficiencies, allowing faster response times and improved service delivery [12] Bear Case - Approximately 12% of Progress shares are sold short, indicating bearish sentiment among investors [15] - High debt levels, totaling over $1.9 billion, and risks associated with acquisitions could negatively impact earnings [16] - Weak organic growth and competitive challenges in various product categories raise concerns about the company's ability to sustain revenue growth [16] - Questions regarding the quality of earnings have emerged, particularly with a decline in GAAP operating margins from 25% in Q3 2024 to 18% in Q3 2025 [16]

Core Insights - The report identifies a "growth tax" on companies due to complexity induced by enterprise software, costing millions and resulting in significant productivity losses [1][2][5] Financial Impact - Software complexity drains an average of 7% of annual revenue, equating to the size of a typical R&D budget [3] - Companies waste $1 out of every $5 on software due to failed implementations and underused tools, leading to an overall economic impact of nearly $1 trillion annually in the U.S. [4][6] Productivity Loss - Employees lose nearly seven hours each week to complicated processes, equating to almost a full workday [7] - Key frustrations for customer experience (CX) teams include uncustomizable workflows (42%) and excessive tool toggling (36%) [7][8] Employee Morale - Over 60% of surveyed employees are likely to leave their organizations within the next year, with organizational complexity and complicated processes being primary drivers [17] - The productivity crisis negatively impacts morale, leading to increased turnover and burnout [10][11] Strategic Recommendations - Organizations must prioritize simplicity in their technology stacks to unlock growth, optimize budgets, and improve employee morale [12]

Core Insights - EverCommerce (EVCM) reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, and showing improvement from a loss of $0.05 per share a year ago [1] - The company posted revenues of $147.47 million for the quarter ended September 2025, which was 0.39% below the Zacks Consensus Estimate and down from $176.26 million year-over-year [2] - EverCommerce shares have increased approximately 4.9% year-to-date, underperforming the S&P 500's gain of 15.6% [3] Earnings Performance - The company exceeded earnings expectations by delivering a surprise of +400% compared to the prior quarter's forecast of a loss of $0.01 per share [1] - Over the last four quarters, EverCommerce has surpassed consensus EPS estimates only once [1] Future Outlook - The company's earnings outlook will be crucial for determining future stock performance, with current consensus EPS estimates at $0.05 for the upcoming quarter and $0.10 for the current fiscal year [7] - The Zacks Rank for EverCommerce is currently 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which EverCommerce belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable environment for stock performance [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 Viewpoint - Strategy (MSTR) has experienced a significant decline of -26.4% over the past month, contrasting with the S&P 500's increase of +2.1% and the Zacks Financial - Miscellaneous Services industry's loss of -3.8% [1] Earnings Estimate Revisions - The consensus estimate for Strategy's current quarter is a loss of $0.08 per share, reflecting a year-over-year change of +97.5% [4] - For the current fiscal year, the consensus earnings estimate is -$15.73, indicating a change of -134.1% from the previous year [4] - The next fiscal year's consensus earnings estimate is $0.4, showing a change of +97.5% from the prior year [5] - The Zacks Rank for Strategy is 3 (Hold), based on the recent changes in earnings estimates and other related factors [6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $123.3 million, representing a year-over-year change of +2.2% [10] - The sales estimates for the current and next fiscal years are $466.75 million and $485.05 million, indicating changes of +0.7% and +3.9%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Strategy achieved revenues of $128.69 million, a year-over-year increase of +10.9% [11] - The EPS for the same period was $8.42, compared to -$1.56 a year ago, with a revenue surprise of +9.9% and an EPS surprise of +7754.55% [11] - Over the last four quarters, Strategy has surpassed consensus EPS estimates twice and revenue estimates twice [12] Valuation - Strategy is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16]

Core Insights - The business-software company is expanding its artificial intelligence capabilities by establishing a new center [1] Group 1 - The new center will create 200 jobs focused on artificial intelligence [1]

Core Viewpoint - Manhattan Associates (MANH) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $1.18 per share, reflecting a year-over-year decrease of 12.6%, while revenues are projected to be $271.32 million, representing a 1.7% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.12% higher, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Manhattan Associates is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.43%, suggesting a bearish outlook on earnings prospects [12]. Historical Performance - In the last reported quarter, Manhattan Associates exceeded the expected earnings of $1.12 per share by delivering $1.31, achieving a surprise of +16.96%. The company has beaten consensus EPS estimates in the last four quarters [13][14]. Investment Considerations - Despite the potential for an earnings beat, the combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict a positive outcome for the upcoming earnings report [12][17].

Company Performance - Strategy (MSTR) stock increased by 2.29% to $359.69, outperforming the S&P 500's gain of 0.37% on the same day [1] - Over the past month, the stock has risen by 4.69%, surpassing the Finance sector's gain of 2.07% and the S&P 500's gain of 4.26% [1] Upcoming Earnings - The upcoming earnings disclosure is expected to report an EPS of -$0.11, representing a 92.95% increase compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $118.2 million, up 1.84% from the previous year [2] Full Year Estimates - For the full year, analysts expect earnings of -$15.73 per share and revenue of $466.75 million, indicating changes of -134.08% and +0.71% respectively from last year [3] Analyst Estimates - Recent changes to analyst estimates indicate a favorable outlook on the business health and profitability of Strategy [4] - The Zacks Rank system, which integrates estimate changes, provides a functional rating system for stocks [5] Zacks Rank - Strategy currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] Industry Context - The Financial - Miscellaneous Services industry, part of the Finance sector, has a Zacks Industry Rank of 79, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]