Is Kodak having a "Kodak moment?" 2 watchlist stocks.

Is Eastman Kodak Company (KODK) now at an operational inflection point? It has been a long road back from digital photography disintermediation, but Eastman Kodak Company (KODK) is showing green shoots.

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Major balance sheet repair, stabilization in the print business, and new end markets like EV batteries and molecular reagents for pharma which look very intriguing definitely warrant a look. Is the market underestimating a company with nearly 80,000 patents? 

In the latest quarter total revenues grew 18% YOY to $311 m. Importantly, print revenue grew 10% YOY to $195 m while the AMC (Advanced Materials and Chemicals) segment grew revenue 40% YOY to $105 m.

Print is experiencing a bit of a renaissance due to Gen Z interest in instant printed photos.

Gross Margin, a metric we monitor closely, grew 700 bps YOY to 26% thus helping to enable healthy Operational EBITDA (non-GAAP) growth to $36 m vs. $9 m in the prior year. 

Assuming this kind of growth is sustainable, this yields a pro-forma Operational EBITDA annual run-rate of $144 m. With an Enterprise Value of about $731 m, one could argue the stock may be undervalued based on this assumption.

We have elected to stay on the sidelines at a Neutral for the moment, looking for consistent operational improvement as well as better FCF execution. FCF was slightly negative at about $1 m for the quarter.

The other stock worth surveilling is NeurAxis, Inc. (NRXS). Their neuromodulation products for difficult to treat GI health conditions appear to be gaining some traction and the company is investing aggressively to accelerate growth.

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With a Gross Margin of 85.9%, NeurAxis, Inc. (NRXS) screens very high on our Marx ratio (Gross Profit/Total Assets) ranking system. Selling price increased 28% YOY in the latest quarter so pricing power is evident and health insurance coverage for its products has momentum.

Revenue more than doubled in the latest quarter to $1.9 m vs. $.9 m in the prior year quarter, but operating loss widened to $2.1 million from $1.7 million. The market has seemed to reward the sales growth in the past, but the stock has been pulling in of late, looking for a stable resting place.

The stock currently trades at about 12x TTM EV/Sales so not for the feint of heart. We remain on the sidelines at a Neutral based primarily on valuation, lack of operating leverage, and share dilution from its ATM.
 
But nonetheless, the sales trajectory will be key to watch as well as the level of sales multiple.

 

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Dow Inc. (DOW) Stock Sinks As Market Gains: Here's Why

Dow Inc. (DOW) closed the most recent trading day at $29.03, moving -2.06% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.86%. Elsewhere, the Dow saw an upswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.96%.

Shares of the materials science witnessed a loss of 2.37% over the previous month, trailing the performance of the Basic Materials sector with its loss of 0.74%, and the S&P 500's loss of 1.96%.

Market participants will be closely following the financial results of Dow Inc. in its upcoming release. The company is predicted to post an EPS of $0.78, indicating a 510.53% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.22 billion, indicating a 12.52% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.42 per share and a revenue of $43.31 billion, demonstrating changes of +357.45% and +8.37%, respectively, from the preceding year.

Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.59% lower within the past month. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 12.26. This denotes a discount relative to the industry average Forward P/E of 17.

It's also important to note that DOW currently trades at a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 1.19 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Why Teladoc (TDOC) Outpaced the Stock Market Today

Teladoc (TDOC) ended the recent trading session at $6.16, demonstrating a +1.15% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.

Prior to today's trading, shares of the telehealth services provider had lost 12.5% lagged the Medical sector's loss of 2.34% and the S&P 500's loss of 1.96%.

The investment community will be paying close attention to the earnings performance of Teladoc in its upcoming release. The company's upcoming EPS is projected at -$0.22, signifying a 4.76% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $585.55 million, down 6.53% from the prior-year quarter.

TDOC's full-year Zacks Consensus Estimates are calling for earnings of -$0.9 per share and revenue of $2.4 billion. These results would represent year-over-year changes of +21.05% and -5.03%, respectively.

It is also important to note the recent changes to analyst estimates for Teladoc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.83% fall in the Zacks Consensus EPS estimate. Teladoc is currently sporting a Zacks Rank of #3 (Hold).

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

SolarEdge Technologies (SEDG) Stock Sinks As Market Gains: What You Should Know

SolarEdge Technologies (SEDG) closed the most recent trading day at $34.68, moving -5.63% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.86% for the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.

Heading into today, shares of the photovoltaic products maker had gained 14.2% over the past month, outpacing the Oils-Energy sector's gain of 5.4% and the S&P 500's loss of 1.96%.

Investors will be eagerly watching for the performance of SolarEdge Technologies in its upcoming earnings disclosure. On that day, SolarEdge Technologies is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 109.68%. Meanwhile, our latest consensus estimate is calling for revenue of $328.24 million, down 3.51% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$0.22 per share and a revenue of $1.33 billion, demonstrating changes of +90.76% and +12.53%, respectively, from the preceding year.

Any recent changes to analyst estimates for SolarEdge Technologies should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.14% higher. Currently, SolarEdge Technologies is carrying a Zacks Rank of #3 (Hold).

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Lyft (LYFT) Outpaces Stock Market Gains: What You Should Know

Lyft (LYFT) closed the most recent trading day at $15.32, moving +2% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.86%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.96%.

The ride-hailing company's shares have seen a decrease of 12.32% over the last month, not keeping up with the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.

Analysts and investors alike will be keeping a close eye on the performance of Lyft in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 69.23% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.93 billion, showing a 14.67% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.58 per share and a revenue of $7.32 billion, indicating changes of +229.17% and +15.94%, respectively, from the former year.

Any recent changes to analyst estimates for Lyft should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Lyft possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Lyft is currently trading at a Forward P/E ratio of 9.51. This signifies a discount in comparison to the average Forward P/E of 15.96 for its industry.

Meanwhile, LYFT's PEG ratio is currently 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 200, positioning it in the bottom 19% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Innovative Industrial Properties (IIPR) Laps the Stock Market: Here's Why

Innovative Industrial Properties (IIPR) closed the most recent trading day at $56.25, moving +1.17% from the previous trading session. This change outpaced the S&P 500's 0.86% gain on the day. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.96%.

Heading into today, shares of the company had lost 3.35% over the past month, lagging the Finance sector's loss of 1.79% and the S&P 500's loss of 1.96%.

Investors will be eagerly watching for the performance of Innovative Industrial Properties in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.84, reflecting a 7.6% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $66.07 million, up 2.15% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $7.42 per share and a revenue of $264.72 million, demonstrating changes of +2.49% and -0.47%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Innovative Industrial Properties. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.47% lower. Currently, Innovative Industrial Properties is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Innovative Industrial Properties has a Forward P/E ratio of 7.5 right now. This expresses a discount compared to the average Forward P/E of 12.57 of its industry.

The REIT and Equity Trust - Other industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Why Astera Labs, Inc. (ALAB) Outpaced the Stock Market Today

In the latest close session, Astera Labs, Inc. (ALAB) was up +2.35% at $291.22. The stock exceeded the S&P 500, which registered a gain of 0.86% for the day. On the other hand, the Dow registered a gain of 0.98%, and the technology-centric Nasdaq increased by 0.96%.

The company's shares have seen a decrease of 11.85% over the last month, not keeping up with the Computer and Technology sector's loss of 0.56% and the S&P 500's loss of 1.96%.

The upcoming earnings release of Astera Labs, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $1.19, showcasing a 142.86% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $550.39 million, indicating a 138.71% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.97 per share and revenue of $1.89 billion, indicating changes of +115.76% and +122.02%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Astera Labs, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Astera Labs, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Astera Labs, Inc. is holding a Forward P/E ratio of 71.6. This represents a premium compared to its industry average Forward P/E of 19.87.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research