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Itron (ITRI) is a Top-Ranked Growth Stock: Should You Buy?
ZACKS· 2025-12-15 15:45
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style S ...
OKLO's Tennessee Bet Lifts Hype - But Should Investors Buy?
ZACKS· 2025-09-15 12:31
Core Insights - Oklo Inc. has gained significant attention in the nuclear energy sector, with shares rising nearly 19% following the announcement of a $1.68 billion private nuclear fuel recycling facility in Oak Ridge, TN, expected to create 800 jobs and meet the increasing demand for secure fuel supply driven by AI [1][8] - The company's stock has surged over 1200% in the past year, reflecting investor enthusiasm [1] Company Overview - Oklo is positioned at the intersection of clean energy and AI, with its small modular nuclear reactors (SMRs) seen as a solution to the high energy demands of AI data centers [3] - The company has a projected 14 GW pipeline that could generate nearly $5 billion in annual revenues by 2028, focusing on owning and operating reactors rather than just selling them [5][8] - Partnerships with established companies like Liberty Energy and Korea Hydro & Nuclear Power enhance Oklo's credibility in the market [5] Financial and Operational Challenges - Oklo remains a pre-revenue company, with its first commercial reactor not expected to be operational until 2027 or 2028, and the Tennessee facility projected to begin operations in the early 2030s [6][8] - The company faces an annual cash burn estimated between $65 million and $80 million, necessitating ongoing capital raises [6] - Regulatory hurdles are significant, with the Nuclear Regulatory Commission having previously rejected Oklo's application, and resubmission could lead to further delays in revenue generation [6] Market Valuation and Comparisons - Oklo's financing structure has led to dilution of existing shareholders, with a price-to-book multiple of 16.6, which is significantly higher than peers like Constellation Energy, which offers more stability and profitability [7][9] - Despite the excitement surrounding Oklo, its market premium appears stretched given the lack of revenue and the speculative nature of its business model [9][14] Earnings Outlook - Consensus estimates indicate a 32% improvement in EPS for 2025, but a subsequent drop of 11% in 2026, highlighting the absence of sustainable profits [11] - In contrast, competitors like Constellation Energy are expanding earnings through long-term contracts, while Oklo's lack of revenue visibility makes it reliant on investor sentiment [11][14]
Why Itron (ITRI) is a Top Growth Stock for the Long-Term
ZACKS· 2025-08-14 14:45
Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Group 1: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Group 2: Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, focusing on finding undervalued stocks [3] Group 3: Growth Score - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Group 4: Momentum Score - The Momentum Score assesses trends in stock prices and earnings estimates, helping investors identify favorable times to invest in high-momentum stocks [5] Group 5: VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [6] Group 6: Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [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 returns [9] Group 7: Stock Highlight - Itron Inc (ITRI) - Itron Inc, a technology and services company, is rated 2 (Buy) on the Zacks Rank and has a VGM Score of A [11] - The company is projected to have a year-over-year earnings growth of 4.8% for the current fiscal year, with recent earnings estimates revised upward [12] - Itron has an average earnings surprise of +32.5%, making it a strong candidate for growth investors [12]