Stocks to Watch After Blowout Earnings: Micron, FedEx & More

Strong quarterly results from Micron Technology MU and FedEx FDX stood out as rare bright spots in an otherwise turbulent week, as broader equity indexes retreated sharply amid surging oil prices and heightened economic uncertainty stemming from the conflict in Iran.

Neither were immune to the volatility in Friday’s trading session, but Micron and FedEx stock may serve as appealing buy-the-dip targets as they posted blowout quarterly earnings on Wednesday and Thursday, respectively.

Optimistically, there were a few other standouts that could potentially combat weaker market sentiment after impressively beating EPS expectations.

Micron’s Record-Breaking Growth Continues

Explosive demand for AI-related memory products has led to tight industry supply, allowing Micron to command higher prices and deliver stronger margins, with its stock currently boasting a Zacks Rank #1 (Strong Buy).

Reporting results for its fiscal second quarter, Micron’s Q2 sales nearly tripled year over year to a record $23.86 billion from $8.05 billion in the comparative quarter. The surge was fueled by high demand for Micron’s high-bandwidth memory (HBM) products, which are used in Nvidia’s NVDA GPUs. More importantly, Micron continued to show strong execution, with Q2 EPS at $12.20, topping expectations of $8.80 by 38.64% and skyrocketing from $1.56 per share a year ago.

Micron also produced record quarterly free cash flow of $6.9 billion and has efficiently scaled its next-generation memory production. With analysts seeing the current memory cycle as the strongest in years, Micron guided its Q3 sales at $33.5 billion, well ahead of expectations of $22.79 billion or 101% growth. Benefitting from a blazing trend of positive earnings estimate revisions, Micron is currently expected to post FY26 EPS of $36.18. More intriguing, analysts project Micron will pass $100 billion in annual sales next year, and FY27 EPS projections are at a whopping $54.78.    

FedEx Fires on all Cylinders

FedEx’s results for its fiscal third quarter were exceptionally strong, beating expectations on revenue and earnings, while expanding margins in key segments, and raising its full-year outlook. This was driven by disciplined operations, strong package demand, and efficiency gains from the accelerating impact of its advanced digital solutions to help control costs and improve service quality.

FedEx stock lands a Zacks Rank #3 (Hold), but a buy rating could be on the way as earnings estimate revisions are likely to move significantly higher. To that point, FedEx’s Q3 EPS of $5.25 crushed expectations of $4.14 by 26.81% and climbed from $4.51 per share in the prior year quarter. 

Making a stronger earnings revision trend a sure thing for FY26 is that FedEx boosted its full-year EPS outlook to between $19.30-$20.10. This was up from a previous FY26 EPS guidance range of $17.80-$19.00 and was ahead of Wall Street’s forecast of $18.58. Notably, the consensus among Wall Street calls for FedEx’s FY27 EPS to jump another 15% to $21.45, with it being noteworthy that the delivery services leader is also moving closer to the $100 billion in annual sales milestone. 

Strong Q4 Results from China’s Leading Hotel Operator

H World Group Limited HTHT stood out in a week that also included quarterly results from Chinese e-commerce giant Alibaba BABA. Taking the spotlight on Wednesday, H World Group Limited is one of the largest hotel operators in China, operating over 12,000 hotels with an extensive reach that spans across Europe as well.

With China seeing a broad recovery in travel demand, H World Group Limited’s stock sports a Zacks Rank #1 (Strong Buy). Rapid hotel network expansion and improved performance in both its domestic and international segments were on full display, with the company excelling due to its asset-light business model, strong hotel turnover growth, and improving profitability.

Correlating with such, Q4 EPS of $0.58 impressively exceeded estimates of $0.41 by 41.46% and spiked from $0.14 per share in the prior year quarter.

In regard to its asset-light model, H World Group Limited manages and franchises hotels rather than owning the physical buildings. This approach dramatically improves profitability, speeds expansion, and reduces financial risk, serving as a major growth driver.

Honorable Mention

Sporting a Zacks Rank #1 (Strong Buy), Five Below FIVE is also worth mentioning. Although its earnings beat wasn’t as spectacular, Five Below posted Q4 EPS of $4.31 on Wednesday, topping expectations of $3.99 by 8.02%. The provider of low-priced, high-margin merchandise saw its bottom line expand from Q4 EPS of $3.48 a year ago.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

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

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Waste Management (WM) Stock Moves -1.11%: What You Should Know

Waste Management (WM) closed at $231.24 in the latest trading session, marking a -1.11% move from the prior day. This change was narrower than the S&P 500's 1.51% loss on the day. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.01%.

Coming into today, shares of the garbage and recycling hauler had gained 0.18% in the past month. In that same time, the Business Services sector lost 4.08%, while the S&P 500 lost 3.63%.

The upcoming earnings release of Waste Management will be of great interest to investors. The company is forecasted to report an EPS of $1.76, showcasing a 5.39% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $6.3 billion, indicating a 4.62% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.16 per share and revenue of $26.5 billion, which would represent changes of +8.8% and +5.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Waste Management. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Right now, Waste Management possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Waste Management currently has a Forward P/E ratio of 28.66. This denotes a premium relative to the industry average Forward P/E of 26.58.

Also, we should mention that WM has a PEG ratio of 2.47. 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. Waste Removal Services stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.

The Waste Removal Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 40% of all industries, numbering over 250.

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.

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

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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Why Rithm (RITM) Dipped More Than Broader Market Today

In the latest trading session, Rithm (RITM) closed at $8.77, marking a -2.88% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.51%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.01%.

The real estate investment trust's shares have seen a decrease of 14.65% over the last month, not keeping up with the Finance sector's loss of 6.38% and the S&P 500's loss of 3.63%.

The investment community will be closely monitoring the performance of Rithm in its forthcoming earnings report. The company is predicted to post an EPS of $0.52, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.26 billion, showing a 64.51% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.3 per share and a revenue of $5.32 billion, signifying shifts of -2.13% and +21.38%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Rithm. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 moved 1.47% higher. As of now, Rithm holds a Zacks Rank of #3 (Hold).

In terms of valuation, Rithm is currently trading at a Forward P/E ratio of 3.92. For comparison, its industry has an average Forward P/E of 9.98, which means Rithm is trading at a discount to the group.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 38% 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.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

Superior Group (SGC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Superior Group (SGC) closed at $9.97 in the latest trading session, marking a -2.54% move from the prior day. This move lagged the S&P 500's daily loss of 1.51%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.01%.

The uniform maker's shares have seen an increase of 0.29% over the last month, surpassing the Consumer Discretionary sector's loss of 3.7% and the S&P 500's loss of 3.63%.

Analysts and investors alike will be keeping a close eye on the performance of Superior Group in its upcoming earnings disclosure. On that day, Superior Group is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 140%. Meanwhile, our latest consensus estimate is calling for revenue of $137.9 million, up 0.58% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.58 per share and a revenue of $576.45 million, signifying shifts of +26.09% and +1.81%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Superior Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 23.01% downward. Superior Group is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Superior Group has a Forward P/E ratio of 17.64 right now. This expresses a premium compared to the average Forward P/E of 16.9 of its industry.

Meanwhile, SGC's PEG ratio is currently 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SGC's industry had an average PEG ratio of 1.98 as of yesterday's close.

The Textile - Apparel industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% 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.

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

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

Phillips 66 (PSX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest trading session, Phillips 66 (PSX) closed at $175.47, marking a -1.61% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.51% for the day. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.01%.

Heading into today, shares of the oil refiner had gained 14.76% over the past month, outpacing the Oils-Energy sector's gain of 9.4% and the S&P 500's loss of 3.63%.

The investment community will be closely monitoring the performance of Phillips 66 in its forthcoming earnings report. The company is forecasted to report an EPS of $2.07, showcasing a 330% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.73 billion, down 9.44% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.56 per share and a revenue of $123.45 billion, demonstrating changes of +79.5% and -9.6%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Phillips 66. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.41% upward. At present, Phillips 66 boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Phillips 66 has a Forward P/E ratio of 15.43 right now. This expresses a discount compared to the average Forward P/E of 15.65 of its industry.

We can additionally observe that PSX currently boasts a PEG ratio of 0.62. 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 Oil and Gas - Refining and Marketing was holding an average PEG ratio of 1.41 at yesterday's closing price.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 38% of over 250 industries.

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

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

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

PagSeguro Digital Ltd. (PAGS) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, PagSeguro Digital Ltd. (PAGS) was down 2.39% at $9.39. The stock's change was less than the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.

The company's shares have seen a decrease of 12.94% over the last month, not keeping up with the Business Services sector's loss of 4.08% and the S&P 500's loss of 3.63%.

The investment community will be paying close attention to the earnings performance of PagSeguro Digital Ltd. in its upcoming release. The company's upcoming EPS is projected at $0.4, signifying a 29.03% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $984.75 million, up 19.06% from the year-ago period.

PAGS's full-year Zacks Consensus Estimates are calling for earnings of $1.65 per share and revenue of $3.98 billion. These results would represent year-over-year changes of +16.2% and +8.87%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for PagSeguro Digital Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 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. PagSeguro Digital Ltd. is currently a Zacks Rank #3 (Hold).

Investors should also note PagSeguro Digital Ltd.'s current valuation metrics, including its Forward P/E ratio of 5.82. This valuation marks a discount compared to its industry average Forward P/E of 11.

It is also worth noting that PAGS currently has a PEG ratio of 0.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 0.78 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 34% of all 250+ industries.

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.

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

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research

Pacific Biosciences of California (PACB) Dips More Than Broader Market: What You Should Know

Pacific Biosciences of California (PACB) closed at $1.33 in the latest trading session, marking a -5% move from the prior day. This move lagged the S&P 500's daily loss of 1.51%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.01%.

The stock of maker of genetic analysis technology has fallen by 16.67% in the past month, lagging the Medical sector's loss of 7.54% and the S&P 500's loss of 3.63%.

The investment community will be closely monitoring the performance of Pacific Biosciences of California in its forthcoming earnings report. On that day, Pacific Biosciences of California is projected to report earnings of -$0.17 per share, which would represent a year-over-year decline of 13.33%. At the same time, our most recent consensus estimate is projecting a revenue of $41 million, reflecting a 10.36% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.54 per share and a revenue of $175.4 million, demonstrating changes of -1.89% and +9.62%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Pacific Biosciences of California. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Pacific Biosciences of California is currently sporting a Zacks Rank of #2 (Buy).

The Medical - Instruments 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 gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research