Zacks Industry Outlook Highlights Broadcom, Lam Research and Amkor

For Immediate Release

Chicago, IL – February 10, 2026 – Today, Zacks Equity Research discusses Broadcom AVGO, Lam Research LRCX and Amkor Technology AMKR.

Industry: Semiconductors

Link: https://www.zacks.com/commentary/2842165/3-stocks-to-buy-from-the-prospering-semiconductor-industry

The Zacks Electronics - Semiconductors industry players are benefiting from the growing proliferation of AI, Generative AI (Gen AI), IoT, Machine Learning (ML) and industrial revolution 4.0 (which focuses on interconnectivity and automation). These have turned out to be boons for industry players like Broadcom, Lam Research and Amkor Technology. Increasing demand for AI-supportive chips from hyperscalers is a major growth driver.

Accelerating AI-related spending by hyperscalers bodes well for these stocks. The growing demand for high-volume consumer electronic devices, including digital media players, smartphones, tablets, efficient packaging, machine vision solutions and robotics, should continue to drive the industry’s growth. However, the industry is suffering from macroeconomic challenges and growing geopolitical tensions. Tariffs on trade partners, including China, are expected to hurt the industry’s prospects.

Industry Description

The Zacks Electronics – Semiconductors industry comprises companies that provide a wide range of semiconductor technologies. Their offerings include packaging and test services, wafer cleaning, factory automation, face detection and image-recognition capabilities to develop smart and connected products. The industry participants primarily cater to end markets that include consumer electronics, communications, computing, industrial and automotive.

The companies are increasing their spending on research and development to stay afloat in an era of technological advancements and changing industry standards. The industry is experiencing solid demand for advanced electronic equipment, which is helping its participants increase their investments in cost-effective process technologies.

What's Shaping the Future of the Electronics - Semiconductors Industry?

AI Demand Driving Prospects: Industry participants are benefiting from growing demand for advanced manufacturing processes and energy-efficient computing power, both of which are needed to develop AI-supportive chips. AI is gaining popularity thanks to multimodal learning and growing context awareness. The emergence of Gen AI and Agentic AI has further enhanced AI’s capabilities, making it a key driver of efficiency, automation and innovation.

Significant improvements in computing hardware (GPUs and TPUs) are allowing the development of more complex AI models. The growing number of high-speed data centers worldwide, which require ultra-fast Internet that 5G promises to deliver, is a tailwind. Increased connectivity and use of technology in consumer electronics through IoT, AI, robotics, AR/VR and others further set the momentum for 5G.

Smart Devices Aiding Computing Demand: Smart devices need computing and learning capabilities to perform functions like face detection, image recognition and video analytics capabilities. These require high levels of processing power, speed and memory and low power consumption, as well as better graphics processors and solutions, which bode well for the industry. Graphic solutions help increase the speed of rendering images and improve image resolution and color definition.

Prospects Around Advanced Packaging Robust: The increasing demand for miniaturization, greater functionality, lower power consumption, and improved thermal and electrical performance are driving the demand for semiconductor packaging and test technologies. The growing requirement for advanced packaging is gaining traction in the semiconductor industry, which is a key catalyst for industry participants.

Complex Process Drives Demand: The requirement for faster, more powerful and energy-efficient semiconductors is expected to increase rapidly with the robust adoption of cloud computing, IoT and AI. Semiconductor manufacturers are primarily looking to maximize manufacturing yields at lower costs, making semiconductor manufacturing processes more complex and driving the demand for solutions offered by industry participants. The rapid adoption of IoT-supported factory automation solutions is another contributing factor.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Electronics - Semiconductors industry is housed within the broader Zacks Computer and Technology sector. It currently carries a Zacks Industry Rank #59, which places it in the top 24% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Aug. 31, 2025, the industry’s earnings estimates for the current year have moved up 13.8%.

Given the bullish prospects, there are a number of stocks that investors can consider for their portfolio. However, before we present the stocks, let us look at the industry’s recent stock-market performance and valuation picture.

Industry Outperforms S&P 500 & Sector

The Zacks Electronics - Semiconductors industry has outperformed the Zacks S&P 500 composite and the broader Zacks Computer and Technology sector in the past year.

The industry has appreciated 34.7% over this period compared with the Zacks Computer and Technology sector’s return of 21.9% and the S&P 500’s rise of 16.7%.

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing electronics semiconductor stocks, the industry is currently trading at 32.05X versus the S&P 500 and the sector’s 22.98X and 25.93X, respectively.

Over the past five years, the industry has traded as high as 39.81X and as low as 11.13X, with the median being 21X.

3 Electronics Semiconductor Stocks to Buy

Broadcom: This Zacks Rank #1 (Strong Buy) stock is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. You can see the complete list of today’s Zacks #1 Rank stocks here.

Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy. AVGO’s AI segment benefits from custom accelerators and advanced networking technology that supports large-scale AI deployments with improved performance and efficiency.

Broadcom expects first-quarter fiscal 2026 AI revenues to double to $8.2 billion. The company has appreciated 41.6% in a year. The Zacks Consensus Estimate for AVGO’s fiscal 2026 earnings has increased 1.3% to $10.22 per share over the past 30 days.

Lam Research: This Zacks Rank #1 company is benefiting from its strength across 3D DRAM and advanced packaging technologies. Growing etch and deposition intensity owing to increasing technology inflections in 3D architectures is a key catalyst. A rebound in the System business due to improving memory spending is an upside.

Strategic investments in research and development activities position Lam Research well to capitalize on the growing wafer fab equipment (WFE) spending. Foundry/logic, DRAM and NAND investments are expected to be higher year over year. Solid demand related to high-bandwidth memory is an upside.

Lam Research stock has appreciated 175.9% in the trailing 12-month period. The Zacks Consensus Estimate for LRCX’s fiscal 2026 earnings has increased 8.5% over the past 30 days to $5.22 per share.

Amkor Technology: Another Zacks Rank #1 stock, the company is benefiting from strong demand for advanced packaging. Expansion of AI into edge devices is expected to drive further demand for advanced packaging which bodes well for Amkor Technology.

Amkor has appreciated 102.6% in the trailing 12-month period. The Zacks Consensus Estimate for Amkor’s 2026 earnings has increased 7 cents to $1.59 per share over the past 30 days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Just Released: Zacks Top 10 Stocks for 2026

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From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

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

Zacks Investment Research

Zacks.com featured highlights include DNOW, FirstSun Capital, Safehold, Amkor and CEMEX

For Immediate Release

Chicago, IL – February 10, 2026 – Stocks in this week’s article are DNOW Inc. DNOW, FirstSun Capital Bancorp FSUN, Safehold Inc. SAFE, Amkor Technology, Inc. AMKR and CEMEX, S.A.B. de C.V. CX.

5 Value Stocks with Alluring EV-to-EBITDA Ratios to Scoop Up

The price-to-earnings (P/E) ratio is widely regarded as a yardstick for assessing a stock’s fair value. It is commonly used by investors to identify attractively priced stocks. However, despite its popularity, this valuation metric has notable shortcomings.

While P/E remains the most widely used equity valuation ratio, a more comprehensive metric called EV-to-EBITDA often provides a more accurate assessment of a company’s value. Frequently considered a better alternative to P/E, this ratio delivers a clearer view of a firm’s valuation and earnings-generating potential.

DNOW Inc., FirstSun Capital Bancorp, Safehold Inc., Amkor Technology, Inc. and CEMEX, S.A.B. de C.V. are some stocks with attractive EV-to-EBITDA ratios.

EV-to-EBITDA a Better Approach: Here’s Why

EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.

Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.

Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can be used to compare companies with different levels of debt.

But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.

A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.

Here are our five picks out of the 15 stocks that passed the screen:

DNOW is a leading energy and industrial solutions provider with a global network of distribution and engineering locations. This Zacks Rank #1 stock has a Value Score of A.

DNOW has an expected earnings growth rate of 20.5% for 2026. The Zacks Consensus Estimate for DNOW’s 2026 earnings has been revised 8.7% upward over the past 60 days.

FirstSun Capital Bancorp is the financial holding company for Sunflower Bank, N.A., which operates as Sunflower Bank. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

FirstSun Capital has an expected year-over-year earnings growth rate of 13.8% for 2026. The Zacks Consensus Estimate for FSUN's 2026 earnings has been revised 9.8% upward over the past 60 days.

Safehold is a real estate investment trust, which helps owners of high-quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. This Zacks Rank #1 stock has a Value Score of B.

Safehold has an expected year-over-year earnings growth rate of 7.1% for 2026. The consensus estimate for SAFE’s 2026 earnings has moved up 4.7% over over the past 60 days.

Amkor Technology is a leading provider of semiconductor packaging and test services. This Zacks Rank #1 stock has a Value Score of B.

Amkor Technology has an expected year-over-year earnings growth rate of 27.2% for 2026. The consensus estimate for AMKR’s 2026 earnings has moved up 4.6% over over the past 60 days.

CEMEX is a global construction materials company. This Zacks Rank #2 stock has a Value Score of B.

CEMEX has an expected year-over-year earnings growth rate of 218.5% for 2026. The Zacks Consensus Estimate for CX's 2026 earnings has been revised 6.2% upward over the last 60 days.

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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2840982/5-value-stocks-with-alluring-ev-to-ebitda-ratios-to-scoop-up

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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

Zacks.com featured highlights include Amphenol, GE Aerospace, ResMed and Ameriprise Financial

For Immediate Release

Chicago, IL – February 10, 2026 – Stocks in this week’s article are Amphenol APH, GE Aerospace GE, ResMed RMD and Ameriprise Financial AMP.

Add These GARP Stocks to Your Portfolio for Handsome Returns

If you are looking for a profitable portfolio of stocks offering the best of value and growth investing, try the growth at a reasonable price or GARP strategy.

The strategy helps investors gain exposure to undervalued stocks with impressive prospects. Unlike a blend strategy, a portfolio that uses GARP investing is expected to include stocks that offer the best of value and growth investing. Amphenol, GE Aerospace, ResMed and Ameriprise Financial are some GARP stocks that hold promise.

GARP Metrics: Mix of Growth & Value Metrics

The GARP strategy seeks to offer an ideal investment by utilizing the best features of value and growth investing. Investors adopting the GARP approach prefer buying stocks priced below the market or any reasonable target determined by fundamental analysis. These stocks also have solid prospects in terms of cash flow, revenues, earnings per share (EPS) and so on.

Growth Metrics

A strong earnings growth history and impressive earnings prospects are the main concepts that GARP investors borrow from the growth investing strategy. However, instead of super-normal growth rates, pursuing stocks with a more stable and reasonable growth rate is a tactic of GARP investors. Hence, growth rates between 10% and 20% are considered ideal under the GARP strategy.

Another metric that growth and GARP investors consider is return on equity (ROE). GARP investors look for a strong and higher ROE than the industry average to identify superior stocks. Stocks with positive cash flows find precedence under the GARP plan.

Value Metrics

GARP investing prioritizes popular value metrics — the price-to-earnings (P/E) and price-to-book (P/B) ratios. Though this investing style picks stocks with higher P/E ratios than value investors, it avoids companies with extremely high P/E ratios.

Using the GARP principle, we ran a screen to identify stocks that should offer solid returns in the near term.

Here are four stocks from the 25 that made it through the screening process.

Amphenol is positioned for accelerated growth in 2026 following the acquisition of CommScope Connectivity and Cable Solutions, which expands capabilities in fiber optics and defense while adding $4.1 billion in annual sales capacity. This Zacks Rank #1 company demonstrated remarkable operational momentum with record fourth-quarter bookings of $8.4 billion and a robust 1.31:1 book-to-bill ratio, reflecting sustained customer demand across diversified end markets. Operating margin expansion to 27.5%, alongside exceptional free cash flow generation, underscores improving profitability and operational excellence.

Management highlighted AI infrastructure buildout as a significant demand catalyst, while the company's diversified market exposure and successful completion of five acquisitions during 2025 strengthened its competitive positioning. The February dividend approval further demonstrates financial strength and shareholder commitment entering the year.

The Zacks Consensus Estimate for APH’s 2026 earnings has moved north by 7.2% to $4.32 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.48%.

GE Aerospace has entered 2026 with compelling operational momentum following record 2025 performance that delivered 21% revenue growth and 26% services expansion. The January leadership restructuring, integrating Commercial Engines & Services with Technology & Operations, positions the company for enhanced execution efficiency. The successful demonstration of hybrid electric narrowbody engine technology, exceeding NASA benchmarks under the RISE program, advances the path toward 20%+ fuel efficiency improvements for next-generation aircraft.

The recent $300 million Singapore MRO investment through 2029 establishes AI-enabled inspection capabilities and automation infrastructure, expanding aftermarket capacity in Asia-Pacific where services demand continues accelerating. Defense deliveries surged 30% in 2025, with additional January contract wins reinforcing growth visibility. The expanded module repair capabilities and predictive maintenance technologies strengthen competitive positioning across commercial and defense segments.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s 2026 earnings has moved north by 6.1% to $7.45 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 14.27%.

ResMed's 2026 outlook strengthens on multiple fundamental catalysts. The January FDA clearance for Smart Comfort, its first AI-enabled digital medical device personalizing CPAP therapy, launches early 2026, addressing adherence challenges through machine learning. In the second quarter of fiscal 2026, it delivered 11% revenue growth and 310 basis points of gross margin expansion, demonstrating operational momentum. Published research in SLEEP demonstrates that each additional hour of PAP use reduces healthcare utilization by 4-6%, validating the economic value proposition.

The expanding digital health ecosystem now spans 140+ countries, while strong device and mask demand drives sustainable growth. Manufacturing efficiencies and component cost improvements enhance profitability. These fundamental drivers—innovation leadership, proven clinical outcomes, global scale, and operational excellence—position ResMed for continued market share gains and margin expansion throughout 2026.

The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 earnings has moved north by 1.4% to $10.97 per share in the past 60 days. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.74%.

Ameriprise Financial has been witnessing strong fundamental momentum following record fourth-quarter earnings of $10.83 per share, reflecting 16% year-over-year growth. The wealth management franchise delivered record pretax operating earnings of $926 million with a robust 29.3% margin, driven by exceptional advisor productivity that reached $1.1 million per advisor annually. Bank assets expanded 7% to $25.3 billion, providing sustainable net investment income amid evolving interest rates.

This Zacks Rank #2 company recruited 91 experienced advisors during the fourth quarter, demonstrating continued success in attracting top talent. Asset management earnings surged 17% to $293 million with improved margins. Recent recognition as the highest-ranked diversified financial services firm on TIME's Most Iconic Companies list underscores the brand strength, supporting client and advisor growth trajectories throughout 2026.

The Zacks Consensus Estimate for AMP’s 2026 earnings has moved south by 0.4% to $41.49 per share in the past 60 days. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.49%.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2841851/add-these-4-garp-stocks-to-your-portfolio-to-receive-handsome-returns

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.

Follow us on Twitter:  https://www.twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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

Bull of the Day: Broadcom (AVGO)

Broadcom Company Overview

Zacks Rank #1 (Strong Buy) stock Broadcom (AVGO) is a tech giant that is dominant in the semiconductor and software industries. Broadcom’s two main businesses provide the hardware (semiconductors) and the virtual software that allows modern data centers to run smoothly. Below is a breakdown of Broadcom’s two main business segments:

1.      Semiconductors (~60% of revenues): AVGO’s “Tomahawk” and “Jericho” chips are the industry standard for directing traffic within massive data centers. The company’s custom AI accelerators (ASICs) are designed specifically for hyperscalers. Meta Platforms (META) and Alphabet (GOOGL) use AVGO technology to power their data centers. Additionally, AVGO chips power smartphones like Apple’s (AAPL) iPhone.

2.      Infrastructure Software: Through Broadcom’s $69 billion VMware acquisition, AVGO is a leader in the private cloud business. Banks, government agencies, and other large entities rely on AVGO for software and cybersecurity.

The Data Center Buildout Super Trend

The race for AI supremacy among big tech companies has led to the largest industrial buildout in history. While the AI data center buildout has been unprecedented thus far, guidance from big tech companies suggests that CAPEX spending will only increase over the next few years. As an AI “pick and shovel” play, AVGO is perfectly positioned to capitalize on this spending.

Image Source: APP Economy Insights

Broadcom Provides an Alternative to Nvidia

Nvidia (NVDA) remains the undisputed leader in semiconductor chips. However, Nvidia’s chips are expensive and are often sold out. Although Nvidia is likely to continue to dominate, companies like Google are decoupling and de-risking their AI spending by leveraging Broadcom’s cheaper and more efficient ASIC technology.

Broadcom has High-Margin, Recurring Revenue

High-margin recurring revenue is the holy grail for growth stocks. Broadcom’s subscription-based software segment provides predictable cash flow and juicy margins.

Image Source: Zacks Investment Research

Robust Growth Outlook

Zacks Consensus Analyst Estimates suggest that Broadcom will grow in the high double-digits for the foreseeable future.

Image Source: Zacks Investment Research

Meanwhile, AVGO has beaten Zacks Consensus Estimates for 20 consecutive quarters.

Image Source: Zacks Investment Research

Bullish Technicals

AVGO shares have trended strongly over the past year, up 45%. After a quick test of the 200-day moving average, buyers stepped in, suggesting that the trend remains very much intact.

Image Source: TradingView

Bottom Line

With its "Strong Buy" Zacks Rank and an impressive 20-quarter streak of exceeding earnings expectations, Broadcom stands as a uniquely diversified powerhouse in the technology sector. As we move deeper into 2026, the company is perfectly positioned to capture the next wave of infrastructure spending, from the "insatiable demand" for custom AI accelerators among hyperscalers like Alphabet and Meta to the high-margin stability of its VMware software ecosystem. While the stock has already rewarded investors with significant gains, the combination of a record $73 billion backlog and industry-leading operating margins suggests that the bull case is far from over. For investors seeking a blend of aggressive AI growth and defensive software recurring revenue, AVGO remains a premier candidate for any long-term portfolio.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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

Bear of the Day: Badger Meter (BMI)

Badger Meter Company Overview

Zacks Rank #5 (Strong Sell) stock Badger Meter (BMI) is a leader in the water technology sector. The Milwaukee, WI-based company specializes in smart meters that measure flow and quality of water, oil, chemicals, and other fluids. Badger Meter’s products are best-known for their accuracy, long-lasting durability, and valuable and timely measurement data. BMI’s business falls into three major categories:

1.      Utility Water: The utility water product line consists of mechanical or static water meters and related radio and software technologies used by water utilities to generate water and wastewater revenue. Roughly 70% of water meters installed in the United States have converted to some form of radio solution technology.

2.      Flow Instrumentation: This product line primarily serves water applications. The product line consists of meters, valves, and other sensing devices for measuring and controlling the volume of liquids and gases flowing through pipes or pipelines, such as water, air, and steam.

3.      Connectivity & IoT: BMI’s ORION product enables utilities to monitor data remotely, eliminating the need to send a technician out for every issue.

Badger Meter’s Costs are Rising

Because Badger Meter operates internationally, the company is experiencing negative impacts from global tariffs and trade conditions. Additionally, elevated copper and component prices are creating a potential gross margin headwind into 2026. Profit margins have shrunk from 17% to 15% over the past year, and this trend is likely to continue.

Image Source: Zacks Investment Research

Badger Meter Faces Mounting Competitive Pressures

While BMI remains the dominant player in its industry, the company faces mounting competitive pressure from rivals such as Honeywell (HON) and Itron (ITRI). Meanwhile, several Wall Street analysts tracked by Zacks Investment Research have lowered earnings estimates for 2026 and 2027 – a troubling trend.

Image Source: Zacks Investment Research

BMI Technicals are Deteriorating

Over the past year, BMI shares have underperformed dramatically, falling ~30%. Additionally, shares are below the key moving averages and are forming a bear flag pattern.

Image Source: TradingView

Bottom Line

Despite its established leadership in water technology and a robust suite of smart-metering solutions, Badger Meter faces a challenging road ahead through 2026. The combination of intensifying competition and the persistent pressure of rising component costs has created a difficult environment for margin growth.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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

Nebius to Report Q4 Earnings: How to Approach the Stock Now?

Nebius Group N.V. NBIS will report fourth-quarter 2025 results on Feb. 12, before market open.

The Zacks Consensus Estimate for the bottom line for the to-be-reported quarter is pegged at a loss of 44 cents. Analysts have significantly revised their earnings estimates upward for NBIS’ bottom line over the past 30 days. The consensus estimate for total revenues is pinned at $232.2 million.

Based in Amsterdam, Nebius is positioning itself as a specialized artificial intelligence (AI) infrastructure company. Its core operation is Nebius, which is an AI-powered cloud platform designed for intensive AI and machine learning (ML) workloads in both owned and colocation data center capacity. Nebius remains focused on building and scaling its core AI cloud business. The company is deepening its enterprise offerings with the launch of the Aether 3.0 cloud platform and the Nebius Token Factory, an inference solution built to run open-source models at scale. In December 2025, Nebius announced the launch of Nebius AI Cloud 3.1, the latest version of its full-stack AI cloud platform designed to address these needs.

Image Source: Zacks Investment Research

Recently, the company announced the deployment of the NVIDIA NVDA Rubin platform across Nebius AI Cloud and Token Factory starting in the second half of 2026. This move positions it at the forefront of next-generation reasoning and the agentic AI transition. As an NVIDIA Cloud Partner and Exemplar Cloud Partner, NBIS will be among the first AI cloud providers globally to offer NVIDIA Vera Rubin NVL72, unlocking advanced AI capabilities for customers in the United States and Europe.

What Our Model Predicts for NBIS

Our proven model predicts an earnings beat for NBIS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

NBIS has an Earnings ESP of +63.64% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors to Focus on Ahead of NBIS’ Q4 Earnings

Nebius is investing aggressively in expanding its global data center footprint, with a strong focus on securing power capacity well ahead of deployment. In the last reported quarter, Nebius launched its Israel data center with B200 GPUs and its U.K. facility with B300s, with much of this capacity presold ahead of opening. On the last earnings call, management stated that it is launching new phases in Finland in the fourth quarter, which have already been pre-sold. For 2026, Nebius plans to expand its existing data-center footprint in the U.K., Israel and New Jersey, while commissioning new facilities across the United States and Europe in the first half of the year.

The company operates in a supply-constrained AI infrastructure market, where demand for GPU capacity significantly outstrips available power and data-center readiness. To capitalize on this imbalance, the company is aggressively expanding its infrastructure footprint, raising its contracted power target to 2.5 gigawatts by 2026 from an earlier projection of 1 gigawatt. By the end of 2026, Nebius expects 800 megawatts to 1 gigawatt of fully connected capacity to be operational. This might have positively impacted the company’s fourth-quarter performance.

Nebius Group N.V. Price and Consensus

Nebius Group N.V. price-consensus-chart | Nebius Group N.V. Quote

Apart from this, Nebius continues to build strong momentum with AI-native startups, such as Cursor and Black Forest Labs, positioning these relationships as a core pillar of its long-term growth strategy. This traction is reinforced by multi-billion-dollar agreements with Microsoft, carrying contract values between $17.4 billion and $19.4 billion, and with Meta of up to $3 billion. On the last earnings call, management highlighted that contributions from the Microsoft and Meta contracts are expected to commence in the fourth quarter of 2025, with revenue ramping meaningfully through 2026. Nebius remains on track to exit 2025 with $900 million to $1.1 billion in annual recurring revenue.

However, the company continues to navigate macroeconomic uncertainty alongside rising operating expenses and heavy capital spending. Nebius raised its capital expenditure outlook from roughly $2 billion to about $5 billion for 2025. This might have negatively impacted the company’s profitability in the fourth quarter. Moreover, supply constraints and data center delays are limiting capacity and are expected to pressure fourth-quarter results. While contracts remain intact, management cut its 2025 revenue outlook to $5.05–$5.15 billion from $5.15–$5.35 billion.

On the last earnings call, Nebius tightened its 2025 group revenue outlook to a range of $500 million to $550 million from the previous guidance of $450 million to $630 million. Although the company continues to expect adjusted EBITDA to turn slightly positive at the group level by the end of 2025, it will remain negative for the year. Moreover, stiff competition from other companies such as Amazon.com, Inc. AMZN and CoreWeave, Inc. CRWV remains a concern.

NBIS Stock Performance

Nebius shares have risen 118.9% over the past year, outperforming the  Zacks Computer & Technology sector and the Zacks Internet Software Services industry’s growth of 22.7% and 1.8%, respectively. The S&P 500 Composite has returned 18.3% over the same time frame.

Image Source: Zacks Investment Research

Shares of the company’s peers like NVIDIA surged 38.8%, whereas Amazon was down 9.8%, and CoreWeave, another hypergrowth pure play AI infrastructure company, has registered a rally of 124.9% in the same period.

NBIS' Stretched Valuation

NBIS stock is not so cheap, as its Value Style Score of F suggests a stretched valuation at this moment.

In terms of Price/Book, NBIS shares are trading at 4.51X, higher than the Internet Software Services industry’s 3.41X, indicating more risk than opportunity.

Image Source: Zacks Investment Research

In comparison, NVDA, AMZN and CRWV trade at multiples of 37.89X, 5.47X and 8.96X, respectively.

What to Do With NBIS Stock Before Q4?

Nebius robust demand for AI cloud services and data center expansion bodes well, but stretched valuation and high capex pressure are concerning. Given the uncertainties, new investors could wait for a better entry point, while existing investors can hold the stock for long-term gains.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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

Zacks Investment Ideas feature highlights: iShares Expanded Tech-Software Sector ETF, AppLovin, Palantir, Salesforce, ServiceNow and Robinhood Markets

For Immediate Release

Chicago, IL – February 10, 2026 – Today, Zacks Investment Ideas feature highlights iShares Expanded Tech-Software Sector ETF IGV, AppLovin APP, Palantir Technologies PLTR, Salesforce CRM, ServiceNow NOW and Robinhood Markets HOOD.

5 Top Software Stocks Investors Can Buy Now

Software stocks, long viewed as some of the market’s most attractive business models, have been hit hard in recent months as investor concerns around artificial intelligence and large language models intensified. The selloff has been significant, with the iShares Expanded Tech-Software Sector ETF, a widely followed proxy for the software space, falling more than 20% over that stretch. The fear is that AI will materially disrupt traditional software economics. While that risk is real, expectations appear to have moved too far, too fast. AI is likely to reshape parts of the software landscape, but it is unlikely to render entire categories obsolete.

As a result, the market appears to be pricing in a level of disruption that does not align with the durability of the strongest platforms. Over time, sentiment tends to mean revert, and that dynamic is now creating compelling opportunities among premium software names.

For much of the past decade, Wall Street assigned substantial valuation premiums to software companies, attracted by asset light models, high margins, recurring revenue, and near-zero marginal costs. In my view, many of those premiums became excessive, bordering on structural overvaluation, which kept me cautious on the sector despite the quality of the businesses. That backdrop has changed meaningfully.

Today, several of the industry’s strongest franchises are trading near cyclical lows, even as their competitive positions remain intact. AppLovin, Palantir Technologies, Salesforce, ServiceNow and Robinhood Markets stand out as leading platforms where valuations have reset and risk-reward profiles are becoming increasingly difficult to ignore.

AppLovin: Stock Rebound May Signal the Start of the Next Leg Higher

AppLovin shares are surging today after recent money laundering allegations against the company were withdrawn, removing a key overhang that had pressured the stock. Prior to the rebound, APP had fallen roughly 50% from its record highs, a drawdown that appeared disconnected from the company’s underlying momentum. While the recovery has been sharp, it may represent the early stages of a broader move higher rather than a short-lived bounce.

AppLovin has quietly developed into one of the market’s more compelling growth stories. The company has delivered substantial appreciation in recent years as its industry-leading digital advertising platform expands at a rapid pace. Just as important, management has been aggressive in embedding AI across its ecosystem to improve targeting, optimize ad performance, and drive operating leverage, initiatives that are increasingly flowing through to the bottom line.

The company currently carries a Zacks Rank #2 (Buy), supported by modest upward revisions to earnings estimates. Sales are projected to climb 18.2% this year and accelerate another 38.3% next year, while earnings are expected to surge 106% followed by an additional 62.5% gain. Despite that growth profile, the stock trades at roughly 25x forward earnings—a multiple that appears reasonable given the company’s expansion rate and improving profitability trajectory.

Salesforce: Shares Trade at Historical Discount

Salesforce, one of the original SaaS pioneers and a dominant force in enterprise software, has also been pulled lower by the prevailing “AI-disrupts-software” narrative. That selloff has occurred despite the company’s scale, entrenched customer base, and ongoing innovation. Today, Salesforce carries a Zacks Rank #2 (Buy), supported by solid growth expectations and a valuation that stands out relative to its own history.

Shares are currently trading at roughly 14.7x forward earnings, the lowest multiple Salesforce has commanded since becoming a public company. Revenue is expected to grow 9.5% this year and 10.9% next year, while earnings are projected to rise 15.3% this year and another 10.5% next year—respectable growth for a company of its size.

With expanding AI and large language model initiatives, deep integration across enterprise workflows, and consistently strong fundamentals, Salesforce appears mispriced at current levels and is not a stock investors should overlook.

Palantir Technologies: A Market Leading Stock on Sale

Palantir Technologies has quickly established itself as one of the world’s leading software companies, with its share price reflecting that ascent over the past several years. Supported by deep, long-duration government contracts and a suite of highly differentiated data and analytics platforms, Palantir has emerged as one of the market’s premier software franchises.

Shares have corrected nearly 40% over the past few months as investor sentiment toward AI and software shifted. That pullback has helped moderate valuation, though Palantir still trades at a premium relative to most peers. The stock currently changes hands at roughly 100x forward earnings, a lofty multiple, but one backed by exceptional growth expectations and a competitive moat that remains largely uncontested.

Revenue is projected to climb 61.4% this year and 40.8% next year, while earnings are expected to surge 78.7% this year followed by a 42.2% increase next year. Palantir also carries a Zacks Rank #2 (Buy), reflecting continued confidence in the company’s earnings trajectory despite the recent volatility. Earnings estimates have jumped more than 30% across timeframes in the last week alone.

ServiceNow: SaaS Stock at a Rare Discount

ServiceNow has long been viewed as one of the highest-quality franchises in enterprise software, frequently commanding a premium multiple reflective of its durable growth and mission critical offerings. That dynamic has shifted. Following the broader software selloff, shares are now trading at one of the most attractive valuations in the company’s history.

Best known for its market leading, cloud-based workflow platform, ServiceNow is deeply embedded across large enterprises, serving roughly 85% of the Fortune 500 and about 60% of the Global 2000. That level of penetration underscores both the stickiness of its products and the strategic importance of its software within modern corporate infrastructure.

Today, the stock trades at approximately 24.5x forward earnings, an all-time low multiple for the company, while earnings are projected to expand around 24% annually over the next three to five years. In the nearer term, revenue is expected to grow 20.1% this year and another 18.2% next year. With shares sitting nearly 60% below prior highs, ServiceNow’s combination of scale, visibility, and sustained growth makes the current setup particularly compelling for long-term investors.

Robinhood Markets: Stock Momentum Building

Robinhood Markets is often viewed less as a traditional software company and more as a fintech platform, but it has quietly evolved into one of the market’s more compelling digital financial businesses. Shares are rebounding as investors rotate back into former growth leaders, yet the stock still appears attractively positioned relative to its longer-term fundamentals.

Robinhood has transformed from an entry-level brokerage into a multi-product financial “super app.” Its platform now spans multi-asset trading, wealth management, banking services, credit cards, and additional financial tools, significantly expanding both its addressable market and monetization potential.

The stock currently trades at approximately 33.6x forward earnings, well below its historical median multiple of roughly 50.4x. Over the long term, earnings are projected to grow around 26% annually. Near-term growth remains robust, with revenue expected to climb 53% this year and 21.8% next year, while earnings are forecast to surge 86% this year followed by a 21.2% increase next year.

Should Investors Buy Shares in PLTR, CRM, APP, HOOD and NOW?

Periods of broad pessimism often create the most attractive entry points for high-quality growth stocks, and the recent software correction appears to be one of those moments. While AI introduces legitimate uncertainty, the market may be overstating the speed and severity of disruption, particularly for industry leaders with entrenched platforms, strong balance sheets, and durable demand.

Valuations across several premier franchises have reset to levels rarely seen over the past decade, improving the risk-reward profile for long-term investors. Although volatility could persist as the software landscape evolves, selectively accumulating fundamentally strong names during periods of dislocation has historically proven to be a winning strategy. For investors with a multi-year horizon, these five stocks stand out as compelling candidates for deeper consideration.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

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