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9 hours ago
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Clearfield and AeroVironment have been highlighted as Zacks Bull and Bear of the Day
Chicago, IL – June 30, 2025 – Zacks Equity Research shares Clearfield CLFD as the Bull of the Day and AeroVironment AVAV as the Bear of the Day. In addition, Zacks Equity Research provides analysis on QuantumScape Corp. QS and NVIDIA Corp.'s NVDA. Here is a synopsis of all four stocks: Clearfield is a Zacks Rank #1 (Strong Buy) that has an F for Value and a B for Growth. A recent earnings beat has this stock in the spotlight. This small cap stock is seeing good growth and if that continues the stock will grow into a rather high valuation. Let's learn more about why this stock is the Bull of the Day. Clearfield, Inc. engages in the design, manufacture, and distribution of fiber protection. It operates through the Clearfield and Nestor Cable segment. The Clearfield segment involves the design, manufacture, and selling of fiber management, protection, and delivery solutions. The Nestor Cables segment includes designs, manufacture, and selling fiber management, protection, and delivery solutions. The company was founded in 1979 and is headquartered in Brooklyn Park, MN. When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see. Clearfield has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 56% over the last year. The most recent earnings print saw the company post -$0.04 when the consensus was at -$0.33. That 29 cent beat translates into a positive earnings surprise of 87.5%. AeroVironment is a Zacks Rank #5 (Strong Sell) after the company recently posted a beat and the stock has soared since that earnings report. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day. AeroVironment, Inc. designs, develops, produces, operates a portfolio of products and services for government agencies, businesses and consumers. It operates through two segments: Unmanned Aircraft Systems, which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems, which focuses primarily on the design, development, production, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense. The Company also supplies charging systems and services for electric vehicles, and power cycling and test systems to commercial, consumer and government customers. It serves the U.S. Department of Defense, including the U.S. Army, Marine Corps, Special Operations Command, Air Force, and Navy. When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see. In the case of AeroVironment I see the company has beat the Zacks Consensus Estimate in two of the last four quarters. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either. The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates. The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For AeroVironment, I see annual estimates moving lower of late. The current fiscal year consensus number moved lower from $4.42 to $3.14 over the last 60 days. The next year has moved from $5.28 to $4.43 over the last 60 days. Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell). It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell). QuantumScape Corp. recently hit a major milestone, boosting investor interest as 17.4 million shares were traded on Thursday, a 38% increase from the previous session. QuantumScape's shares jumped 34.9% in yesterday's trading and have increased 92.7% over the past month. The solid-state battery maker is now drawing attention from investors due to higher trading activity and positive news, drawing comparisons to NVIDIA Corp.'s success with artificial intelligence (AI) technology, and prompting thoughts about its potential as a buying opportunity. Let's explore – QuantumScape's shares surged following a breakthrough in its solid-state battery production process. QuantumScape introduced its Cobra separator technology, reigniting hopes among market analysts that the solid-state battery dream is becoming a reality. The innovative Cobra separator process is 25 times faster than the previous Raptor system, and a more compact and cost-effective method for producing solid-state battery separators. Cobra will require less floor space than its predecessor and is designed for gigawatt-scale battery production. All these factors make Cobra economically viable for mass production. QuantumScape's Cobra separator process reached baseline production ahead of schedule, marking a breakthrough in solid-state batteries for electric vehicles (EVs). This development overcomes the challenge of large-scale production that has previously hindered the EV industry's adoption of the technology. If QuantumScape fulfills its battery innovation potential, it could transform EV power and challenge NVIDIA's performance, but it's uncertain whether it can replicate NVIDIA's successes given its history of unmet promises. Meanwhile, the rising demand for Blackwell chips, AI graphics processing units (GPUs) and CUDA software will fuel NVIDIA's growth in the cloud and automotive sectors, making it too early to expect QuantumScape to match NVIDIA's accomplishments. Nonetheless, NVIDIA has been able to generate profits and control costs in a better way than QuantumScape, with a return on equity (ROE) of 109.9% compared to QS's negative 41.4%. QuantumScape struggles to use shareholder investments effectively (read more: Is Stock the Next NVIDIA and a Buy?). Despite the recent political challenges, the EV market is set to grow. Demand for advanced batteries remains strong, particularly for those that are safer, lighter and quicker to charge. QuantumScape's advancements in solid-state lithium battery production could lead to significant milestones and boost its stock value. Stakeholders are advised to retain their shares. For new entrants, the QuantumScape stock might be risky. Meeting long-term EV contract demands and maintaining quality standards remain challenges, and falling behind could cause QuantumScape's stock price to drop. The QuantumScape stock, anyhow, is presently more volatile than the markets it trades in. It has a beta of 4.27. For now, QuantumScape stock has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. 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 >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 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. Past performance is no guarantee of future results. Inherent in any investment is the potential for 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 information about the performance numbers displayed in this press release. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Clearfield, Inc. (CLFD) : Free Stock Analysis Report QuantumScape Corporation (QS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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9 hours ago
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Is First BanCorp. (FBP) Stock Outpacing Its Finance Peers This Year?
Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. First Bancorp (FBP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question. First Bancorp is one of 856 companies in the Finance group. The Finance group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. First Bancorp is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for FBP's full-year earnings has moved 5.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the latest available data, FBP has gained about 12.3% so far this year. At the same time, Finance stocks have gained an average of 7.8%. This means that First Bancorp is performing better than its sector in terms of year-to-date returns. Another Finance stock, which has outperformed the sector so far this year, is AIA (AAGIY). The stock has returned 26.9% year-to-date. For AIA, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, First Bancorp belongs to the Banks - Southeast industry, a group that includes 53 individual companies and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have lost 0.7% this year, meaning that FBP is performing better in terms of year-to-date returns. On the other hand, AIA belongs to the Insurance - Life Insurance industry. This 16-stock industry is currently ranked #88. The industry has moved +3.8% year to date. First Bancorp and AIA could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks. 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 First BanCorp. (FBP) : Free Stock Analysis Report AIA (AAGIY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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9 hours ago
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Is Primoris Services (PRIM) Stock Outpacing Its Construction Peers This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Primoris Services (PRIM) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question. Primoris Services is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Primoris Services is currently sporting a Zacks Rank of #2 (Buy). Over the past 90 days, the Zacks Consensus Estimate for PRIM's full-year earnings has moved 3.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend. According to our latest data, PRIM has moved about 4.8% on a year-to-date basis. In comparison, Construction companies have returned an average of -0.6%. This means that Primoris Services is outperforming the sector as a whole this year. Another stock in the Construction sector, Persimmon Plc (PSMMY), has outperformed the sector so far this year. The stock's year-to-date return is 25%. For Persimmon Plc, the consensus EPS estimate for the current year has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Looking more specifically, Primoris Services belongs to the Building Products - Heavy Construction industry, which includes 10 individual stocks and currently sits at #3 in the Zacks Industry Rank. On average, stocks in this group have gained 14.6% this year, meaning that PRIM is slightly underperforming its industry in terms of year-to-date returns. On the other hand, Persimmon Plc belongs to the Building Products - Home Builders industry. This 17-stock industry is currently ranked #231. The industry has moved -12.6% year to date. Investors interested in the Construction sector may want to keep a close eye on Primoris Services and Persimmon Plc as they attempt to continue their solid performance. 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 Primoris Services Corporation (PRIM) : Free Stock Analysis Report Persimmon Plc (PSMMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
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9 hours ago
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What Makes Fox (FOXA) a New Buy Stock
Fox (FOXA) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. As such, the Zacks rating upgrade for Fox is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock. For Fox, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher. As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> . This TV broadcasting company is expected to earn $4.52 per share for the fiscal year ending June 2025, which represents no year-over-year change. Analysts have been steadily raising their estimates for Fox. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.6%. Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of Fox to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. 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 Fox Corporation (FOXA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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9 hours ago
- Automotive
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How Well is Strattec's Business Model Insulated From Tariff Pressures?
One of the most favorable aspects of StrattecSecurity STRT is that more than 90% of its sales in the United States qualify for tariff-free or reduced-tariff rules. This shields Strattec, a focused automotive technology supplier, from additional expenses that other players might face if there is a rise in tariffs on imports, especially if the U.S. tightens trade rules again. Also, this gives the company a cost advantage and more stability. STRT confirmed on its latest earnings call that only 6% of its total sales are expected to be affected by the latest tariffs. This further justifies the solid business model of the company, which is less susceptible to major financial damage from tariffs. Notably, Strattec has already taken actions to deal with even that nominal proportion of its business that might get affected by tariffs. STRT is now changing the way products are shipped so that there is no need to cross borders more than necessary, thereby saving money. Also, to adjust pricing and find better sources for materials, the company is working with suppliers and customers. These actions have already helped Strattec reduce its additional costs by roughly 30%. Both American Axle & Manufacturing Holdings, Inc. AXL and BorgWarner BWA operate in business lines that overlap as automotive technology suppliers. However, they each focus on different areas of vehicle systems. It's worth noting that while AXL is in a decent position when it comes to tariffs, it isn't as well-prepared as Strattec. About 90% of the products AXL manufactures in the United States follow USMCA trade rules, which help avoid most tariffs. BorgWarner, on the other hand, has made it clear that tariffs will hurt its profits this year, and it has included those costs in its full-year financial forecast. However, instead of finding ways to avoid or reduce these extra costs — like changing suppliers or shipping routes — BWA mainly plans to deal with the impact by passing the costs on to its customers. Shares of STRT have jumped 145.1% over the past year against the 0.6% decline of the composite stocks belonging to the industry. Image Source: Zacks Investment Research From a valuation standpoint, STRT trades at a trailing 12-month price-to-earnings (P/E) of 11.18x. This is below the broader industry average of 27.09x. Image Source: Zacks Investment Research The Zacks Consensus Estimate for STRT's fiscal 2025 earnings hasn't witnessed any revisions over the past seven days. Image Source: Zacks Investment Research STRT stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. 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 BorgWarner Inc. (BWA) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
