Key Takeaways NVIDIA's 56% revenue surge fueled record market highs, affirming investor confidence in AI growth.Stocks like Arista, TE Connectivity, Corning, Banco Bilbao, and AppLovin qualified on high ROE.Screening used cash flow over $1B, ROE above industry, strong EPS growth, and favorable valuations. Over the past couple of days, the broader equity markets hit the right chords by scaling all-time highs on the trot, led by the solid quarterly performance of AI behemoth NVIDIA and a healthy economy. With ...

Over the past couple of days, the broader equity markets have hit record highs on the trot, buoyed by a tamer inflation report that greatly increased the probability of an interest rate cut by the Federal Reserve as early as the policy meeting scheduled next month. While the July report revealed that the consumer price index rose 2.7% on an annualized basis compared with broad-based expectations of a 2.8% rise, the core CPI (which strips out volatile food and energy prices) increased 3.1% year on year — sli ...

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Group 1 - TE Connectivity plc announced a quarterly cash dividend of $0.71 per ordinary share, payable on September 12, 2025, to shareholders of record on August 22, 2025 [1] - The company is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future [2] - TE Connectivity offers a wide range of connectivity and sensor solutions that support various sectors including transportation, energy networks, automated factories, data centers, and medical technology [2] Group 2 - The company employs over 85,000 individuals, including 9,000 engineers, and operates in approximately 130 countries [2] - TE Connectivity emphasizes the importance of connectivity in its operations, encapsulated in the motto "EVERY CONNECTION COUNTS" [2]

Group 1: Zacks Premium and Style Scores - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2: Style Score Categories - The Value Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] - The Growth Score assesses a company's financial strength and future outlook by examining projected and historical earnings, sales, and cash flow [4] - The Momentum Score evaluates trends in stock price and earnings outlook, using factors like one-week price change and monthly earnings estimate changes to identify high-momentum stocks [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] Group 3: Zacks Rank and Performance - The Zacks Rank is a proprietary stock-rating model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also have Style Scores of A or B to maximize returns [9] Group 4: TE Connectivity Overview - TE Connectivity is a global technology company specializing in connectivity and sensor solutions across various industries, including automotive, aerospace, defense, energy, and medical, with operations in over 130 countries [11] - TE Connectivity holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating potential for growth [11] - The company is projected to achieve year-over-year earnings growth of 9.1% for the current fiscal year, with upward revisions in earnings estimates from six analysts in the last 60 days [12]

Group 1 - TE Connectivity's CEO, Terrence Curtin, will present at Bernstein's 41st annual Strategic Decisions Conference on May 29, 2025 [1] - The event will be streamed live and available for replay on TE's investor website [1] - TE Connectivity is a global leader in connectors and sensors, focusing on creating a safer, sustainable, productive, and connected future [2] Group 2 - TE Connectivity offers a wide range of connectivity and sensor solutions for various industries, including transportation, energy networks, automated factories, data centers, and medical technology [2] - The company employs over 85,000 individuals, including 9,000 engineers, and operates in approximately 130 countries [2] - TE Connectivity emphasizes the importance of connectivity with the slogan "EVERY CONNECTION COUNTS" [2]

Core Viewpoint - TE Connectivity plc has announced the pricing of a $450 million offering of senior notes, which will be used for general corporate purposes, including debt repayment related to the acquisition of the Richards Manufacturing business [1][3]. Group 1: Offering Details - The offering includes $450 million senior notes due 2031 with a stated interest rate of 4.500% per year, issued at a price of 99.516% [2]. - Additionally, $450 million senior notes due 2035 will have a stated interest rate of 5.000% per year, issued at a price of 98.947% [2]. - The offering is expected to close on May 9, 2025, with several major financial institutions acting as joint book-running managers [4]. Group 2: Use of Proceeds - The net proceeds from this offering, along with any net proceeds from a concurrent Euro notes offering, will be utilized for general corporate purposes, specifically for repaying debt incurred from the acquisition of Richards Manufacturing [3]. Group 3: Company Overview - TE Connectivity plc is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future, with a workforce of over 85,000 employees, including 9,000 engineers [7].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3][4][5][6] Zacks Style Scores - Each stock is rated from A to F based on its value, growth, and momentum, with A being the highest score indicating better chances of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [4] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [5] - The VGM Score combines all three Style Scores to highlight stocks with the best value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, 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 returns [9] Stock Highlight: TE Connectivity (TEL) - TE Connectivity is a global technology company specializing in connectivity and sensor solutions across various industries [11] - TEL currently holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating moderate potential [11] - The stock has a Momentum Style Score of A, with a 1.6% increase in shares over the past four weeks and a positive earnings estimate revision trend [12]