Sony Group Corporation

Wednesday, August 13, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom Inc. (AVGO), Philip Morris International Inc. (PM) and Novo Nordisk A/S (NVO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Up on Rate-Cut Excitement
Today's Featured Research Reports
Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+35.7% vs. +23.7%). The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy.
Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that supports large-scale AI deployments with improved performance and efficiency. Broadcom expects third-quarter fiscal 2025 AI revenues to jump 60% year over year to $5.1 billion. The acquisition of VMware has benefited Infrastructure software solutions.
As of the fiscal second quarter, roughly 87% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. However, gross margin in the fiscal third quarter is expected to contract sequentially due to unfavorable revenues and product mix. High debt level is a headwind.
(You can read the full research report on Broadcom here >>>)
Shares of Philip Morris have gained +42.3% over the year-to-date period against the Zacks Tobacco industry’s gain of +45.8%. The company has been benefiting from strong pricing power and an expanding smoke-free portfolio. In the second quarter of 2025, Philip Morris' net revenues increased 7.1% year over year, driven by higher combustible tobacco pricing and increased smoke-free product volumes.
Philip Morris has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. Philip Morris has implemented significant cost-saving measures and strategic initiatives to achieve its long-term financial goals.
For 2025, adjusted earnings per share (EPS) are likely to be $7.43-$7.56, indicating a 13-15% year-over-year increase. However, Philip Morris faces premium valuation, currency volatility pressures and stringent global tobacco regulations impacting traditional product demand.
(You can read the full research report on Philip Morris here >>>)
Novo Nordisk’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-62.5% vs. -22%). The company’s recent guidance cut for sales and operating profit growth, primarily due to lower Wegovy sales in the presence of knockoff GLP-1 versions, is a massive setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a worry.
Nevertheless, Novo Nordisk’s Q2 earnings beat estimates, while sales missed. Ozempic and Rybelsus for diabetes and Wegovy for obesity are the main top-line contributors. It has been tackling the supply constraints of Wegovy by making serious investments to ramp up production.
An oral formulation of Wegovy is currently under review by the FDA for obesity, and a higher dose of the injection is under review in the EU. Novo Nordisk is also pursuing other indications, like liver fibrosis and MASH for semaglutide.
(You can read the full research report on Nordisk here >>>)
Other noteworthy reports we are featuring today include Sony Group Corp. (SONY), HCA Healthcare, Inc. (HCA) and Cummins Inc. (CMI).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Strength in Music & G&NS Segments Aids SONY Amid Forex Woes
Per the Zacks analyst, solid demand in the Game & Network Services and Music units is driving Sony's performance. FX volatility and the potential imposition of additional U.S. tariffs pose headwinds.
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remains a driving factor.
Cummins (CMI) Benefits from Strength in Power Systems Unit
Cummins' Power Systems segment growth, driven by rising demand from data centers and mission-critical applications, is offsetting North America truck market softness, per the Zacks analyst.
Dividends & Buybacks Aid Expeditors (EXPD), Tariff woes Ail
The Zacks analyst likes the company's efforts to reward its shareholders. The ongoing trade crisis with China represents a major headwind, as EXPD has substantial Chinese exposure.
Cologuard Momentum Aids Exact Sciences (EXAS) Amid Cost Woes
The Zacks analyst is impressed with Exact Sciences' solid Cologuard growth, driven by accelerated rescreens, care gap programs, and stronger commercial execution. Yet, rising costs are a concern.
Stable Investment and Customer Addition Aid UGI (UGI)
Per the Zacks analyst UGI's systematic investment to strengthen its existing infrastructure will allow it to serve demand from expanding customer base and boost its earnings.
Strong Compression Fleet Utilization to Aid Archrock (AROC)
Archrock's high fleet utilization indicates strong demand for its natural gas compression services, driving revenue growth. However, heavy reliance on the Permian Basin concerns the Zacks analyst.
New Upgrades
Astera Labs (ALAB) Rides on Strong Aries and Scorpio Demand
Per the Zacks analyst, Astera Labs is benefiting from strong demand for Aries and Scorpio product families.
F5 (FFIV) Rides on Firm Growth in its Software Business
Per the Zacks analyst, F5 is benefiting from strong growth in software, driven by security offerings, such as web application firewall, bot defense and mitigation products.
Ralph Lauren's (RL) Digital Business Investments Bolster Sales
Per the Zacks analyst, Ralph Lauren's digital strength is a key driver of its growth strategy, enabling the brand to deepen engagement and expand its reach globally. Global DTC comps rose 13% in Q1.
New Downgrades
Tariff Challenges Hurt Advanced Energy (AEIS) Prospects
Per the Zacks Analyst, Advanced Energy suffers from slowing demand in China and tariff challenges
Solid AUM to Support Invesco (IVZ), Volatile Net Inflows
Per the Zacks analyst, expansion plans, global presence, diverse offerings and robust AUM will likely aid Invesco's financials. However, fluctuating net flows amid and huge intangible assets are woes.
Clinical Role Demand Aids American Public (APEI), Costs Hurt
Per the Zacks analyst, American Public's growth is gaining from growing demand for healthcare professionals and diversified program offerings. However, high costs and macro risks are concerning.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Broadcom, Philip Morris & Novo Nordisk

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
SONY GROUP CORP (ADR) (SONY) is a large-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of SONY GROUP CORP (ADR)
LEVI STRAUSS & CO (LEVI) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Levi Strauss & Co. is an apparel company. The Company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Levi Strauss Signature, Denizen, Dockers and Beyond Yoga brands. The Company operates through three geographical segments: Americas, Europe, and Asia. It designs, markets and sells directly or through third parties and licensee's products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The Companys products are sold in more than 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,400 retail stores and shop-in-shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops are its primary distribution channels.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LEVI STRAUSS & CO
TRAVEL + LEISURE CO (TNL) is a mid-cap value stock in the Hotels & Motels industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Travel + Leisure Co. is a vacation ownership and membership travel company. The Companys segments include Vacation Ownership and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment includes its Vacation Ownership business line. It provides day-to-day property management services, including oversight of housekeeping services, maintenance, and certain accounting and administrative services for property owners associations and clubs. These services may also include reservation and resort renovation activities. Travel and Membership segment operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of its Exchange and Travel Club business lines.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TRAVEL + LEISURE CO
ARHAUS INC (ARHS) is a small-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. The Company through its proprietary model, designs and sources products from manufacturers and artisans around the world. It has approximately 100 showrooms and design center locations across the United States. It offers merchandise in various categories, including furniture, outdoor, lighting, textiles, and decor. Its furniture product offerings consist of bedroom, dining room, living room and home office furnishings and include sofas, dining tables, and chairs, among others. Its outdoor product offerings include outdoor dining tables, chairs, chaises and other furniture, lighting, and others. Its lighting product offerings consist of a variety of distinct and artistic lighting fixtures. Its textile product offerings include handcrafted indoor and outdoor rugs, bed linens, and pillows and throws. Decor ranges from wall art to mirrors, vases to candles, and many other decorative accessories.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ARHAUS INC
JD.COM INC (ADR) (JD) is a large-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: JD.Com Inc is a company principally engaged in the e-commerce business, including online retail and online marketplace mainly through its retail mobile apps and www.jd.com website (collectively, JD Platform). The Company operates its businesses through four segments. JD Retail segment, including JD Health, JD Industrials, and other components, mainly engage in online retail, online marketplace and marketing services in China. JD Logistics segment includes both internal and external logistics businesses. Dada segment is a local on-demand delivery and retail platform in China. New Businesses segment mainly include JD Property, Jingxi and overseas businesses. The Company mainly conducts its businesses in the domestic market and overseas markets.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of JD.COM INC (ADR)
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 8/12/2025

GameStop Corp. GME has experienced a significant decline over the past three months, with its shares plummeting 10.4%, underperforming the Zacks industry's rally of 28.9%. The company also trailed the sector’s growth of 16.8% and the S&P 500's rise of 15.1% during the same period.
GME’s Past 3 Months’ Performance
Image Source: Zacks Investment Research
The recent decline in the GME stock’s price is led by sharp revenue declines in hardware and software sales in the first quarter of fiscal 2025 amid weakening demand and the shift to digital gaming.
Regional sales contraction, including a significant drop in Europe and exit from Canada, underscores core market weakness and strategic retrenchment. Asset impairments and restructuring costs have weighed on profitability, raising concerns about sustained earnings pressure in a competitive and evolving retail landscape.
GameStop has also underperformed its peers, including Best Buy Co., Inc. BBY, Microsoft Corporation MSFT and Sony Group Corporation SONY.
In the past three months, Best Buy and Microsoft have rallied 3.3% and 30.5%, while Sony has declined 4.1%.
GME’s Performance vs. Peer Performance
Image Source: Zacks Investment Research
Closing at $24.26 in yesterday’s trading session, the GME stock stands 32.3% below its 52-week high of $35.81 reached on May 28. GameStop is trading below its 50 and 200-day simple moving averages of $26.27 and $26.02, respectively, signaling bearish sentiment in maintaining the recent performance levels.
GME Trades Below 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
The recent slide in the stock has contributed to GameStop’s discounted status. This leading video game retailer is currently trading at a compelling discount relative to its industry. The GME stock trades at a forward 12-month price-to-sales (P/S) ratio of 3.31, lower than the industry’s average of 3.75.
GME P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
GME trades at a premium to Best Buy (with a forward 12-month P/E ratio of 0.35) and Sony (1.80) but at a discount to Microsoft (11.87).
What’s Behind GME’s Dismal Stock Run?
GameStop’s stock has been under pressure following its disappointing first-quarter fiscal 2025 results, with total net sales plunging 16.9% year over year to $732.4 million. The decline was led by sharp drops in hardware and accessories sales, which tumbled 31.7% year over year to $345.3 million, signaling weakening demand for gaming consoles and accessories. Similarly, software sales sank 26.7% to $175.6 million, as customers increasingly opt for downloads and streaming over traditional physical games.
Regional performance further exposed GameStop’s weaknesses, with contraction in virtually all key markets. U.S. revenues, which account for the majority of the company's total revenues, declined 12.9% to $537.5 million, led by changing consumer behavior and a tough retail environment. In Canada, sales slid 10.3% to $38.2 million, and the company subsequently exited the market entirely. European operations fared even worse, plunging 47.4% to $74.8 million, as restructuring initiatives there took their toll.
Despite aggressive cost-cutting, GameStop’s operations remain unprofitable at the core level, with an operating loss of $10.8 million for the fiscal first quarter. Store-related costs continue to weigh heavily on the business, and the company’s fixed-cost structure leaves little room to adjust to the sharp declines in revenue and changing consumer trends.
Overall, steep category declines, regional market exits, and persistent operating losses paint a troubling picture of the company. As GameStop pulls back from key geographies and faces structural headwinds in physical gaming retail, questions about its ability to sustain relevance and profitability in an increasingly digital industry remain unresolved.
GME’s Strategy to Navigate Market Shifts
GameStop is in the midst of a strategic transformation, evolving from a traditional video game retailer into a technology-driven company that connects customers to games, entertainment, and a diverse assortment of lifestyle products. The company has been steadily strengthening its infrastructure and technology capabilities, aligning its operations with shifting consumer preferences and the growing digitization of both gaming and retail.
One of the standout achievements in the fiscal first quarter of 2025 was the remarkable growth of GameStop’s collectibles business. Collectibles revenues jumped 54.6% year over year to $211.5 million in fiscal first quarter, now representing 28.9% of total sales compared with 15.5% a year ago. This expansion reflects the company’s effective merchandising strategy and ability to tap into pop culture and lifestyle trends, attracting a broader, more engaged customer base beyond its core gaming audience.
Cost efficiency has also been a major focus for the company. In the fiscal first quarter, GameStop reduced its adjusted selling, general and administrative (SG&A) expenses by nearly 25%, bringing them down to $225.3 million from $299.5 million a year earlier. As a percentage of net sales, adjusted SG&A declined by 320 basis points to 30.8%, underscoring the company’s disciplined approach to streamlining operations.
The above-mentioned improvements contributed to a 3.4% increase in gross profit, which rose to $252.8 million, and a substantial 680-basis-point expansion in the gross margin, which reached 34.5%. Together, these gains demonstrate GameStop’s ability to optimize its cost structure while maintaining operational effectiveness.
The impacts of these efforts were clearly visible in the company’s bottom-line performance. Adjusted net income rose to $83.1 million from an adjusted loss of $36.7 million, while adjusted EBITDA improved to $38.6 million and adjusted operating income reached $27.5 million. These results reflect the success of GameStop’s restructuring initiatives and its progress toward sustainable profitability.
In addition to operational improvements, the company has significantly strengthened its financial position. At the end of the quarter, GameStop held more than $6.4 billion in cash, cash equivalents, and marketable securities, up from $1 billion a year earlier, supported by a strong free cash flow of $189.6 million and more efficient inventory management.
The company also made a bold move into digital assets with the acquisition of 4,710 Bitcoin shortly after the quarter-end, signaling its willingness to embrace emerging technologies and appeal to a digitally native customer base. With its solid liquidity, disciplined operations and strategic investments in new growth areas, GameStop is laying the groundwork to thrive in an evolving market and deliver long-term value to shareholders.
GME’s Earnings Estimates
Over the past 60 days, the Zacks Consensus Estimate for the current fiscal year has been raised by 28 cents to 75 cents a share. For the next fiscal year, the consensus estimate has moved down by 11 cents to 36 cents.
Image Source: Zacks Investment Research
How to Play GME Stock: Buy, Hold or Sell?
GameStop’s ongoing transformation efforts and cost discipline offer some encouraging signs, but they remain overshadowed by deep structural challenges and declining core revenues. The company’s retreat from key international markets, coupled with softness in its traditional business, points to a narrowing growth path.
While the surge in collectibles and a strong cash position provide near-term support, they may not be enough to offset long-term industry pressures. Given the uncertain trajectory and heightened volatility, investors who already hold GME should consider maintaining a neutral stance, while potential buyers may be better off waiting for stronger evidence of a sustainable recovery.
GME currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

GameStop Stock Falls 10% in 3 Months: Time to Buy, Hold or Sell?

Key Points
SoundHound shares have dropped more than 50% from their highs.
The company is working to combine its AI voice technology with AI agents.
If the company can become a leader in the agentic AI space, it could have huge upside.
SoundHound AI (NASDAQ: SOUN) exploded onto investors' radars when Nvidia disclosed a stake last year. The stock took off as enthusiasm soared, but has cooled off since. Shares are now down more than 50% from their highs.
The question is whether that drop is a red flag or a buying opportunity.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Looking to combine voice and agentic AI
SoundHound started out as an artificial intelligence (AI) voice company whose platform goes beyond traditional speech recognition. Its "speech-to-meaning" and "deep meaning understanding" technology are designed to not just convert words into text, but to interpret what someone actually wants in real time before they are even finished speaking.
SoundHound has established a strong foothold in the automobile and restaurant industries. Major automakers, such as Hyundai and Stellantis, use its platform to power voice assistants in their vehicles, while fast-food chains are embedding its technology into drive-thrus, phone orders, and kiosks. The company is seeing strong traction in these industries, but that's part of the story.
The other part is what came with the company's $80 million acquisition of Amelia in 2024. Amelia specialized in virtual agents for industries like healthcare, insurance, and financial services. These are consumer-facing industries where compliance, transactional complexity, and industry-specific jargon make voice integration more difficult.
SoundHound bought Amelia not only to gain customers in these verticals, but to also gain access to its technology. In essence, it allowed the company to combine its advanced speech recognition technology with Amelia's conversational intelligence.
Amelia also gave SoundHound an important missing piece to go beyond voice and enter the world of agentic AI. SoundHound isn't looking to be just an AI voice company anymore, it's positioning itself as an autonomous voice agent technology company.
Its launch of its Amelia 7.0 platform is a big step forward in this vision. The platform is designed to act like a digital employee that can understand intent, reason, interact with humans naturally, and then autonomously complete tasks. While chatbots may struggle with interruptions or someone rephrasing something, Amelia 7.0's voice first technology helps it excels in these areas.
Amelia can also be integrated with enterprise systems, such as enterprise resource planning (ERP) platforms, customer relationship management (CRM) platforms, help desks, banking systems, and medical and insurance platforms. It can also carry out very industry specific tasks.
For example, within healthcare, it can help a patient who calls a medical practice find the right specialist, schedule an appointment, get prior authorization, and take their insurance information. Meanwhile, for financial services, it would be able to handle tasks such as balance transfers, transaction disputes, or even make complex stock and options trades.
That type of voice AI platform can be real cost saver for companies, so it has a huge opportunity in front of it. However, it also has real work to do.
All about execution
While SoundHound just posted 151% revenue growth in Q1, it's still not profitable and its gross margin has come under pressure. The Amelia deal brought over some lower-margin legacy contracts, and amortization costs from the acquisition are also weighing on reported results. Last quarter, generally accepted accounting principles (GAAP) gross margin dropped to 36.5%, although adjusted gross margin was higher at 50.8%.
SoundHound is aiming to get gross margin back above 70% over time. It last hit that level in the fourth quarter of 2023, before the Amelia deal closed. Management has been clear that improving its margin profile is a key focus, and as low-margin contracts expire and get renegotiated, those numbers should improve.
The path from here is all about execution. SoundHound has an intriguing technology and a differentiated product. However, it faces competition from bigger companies that have more resources and large installed user bases.
The pullback in the stock has more to do with sentiment and valuation than it does with its growth outlook. The stock has never been cheap, and it likely won't be anytime soon. But that's the case with most companies with huge future opportunities.
If SoundHound succeeds in becoming a premier agentic AI company, the drop in share price will look like a gift. However, if it stumbles on execution or gets outflanked by a bigger player, it won't matter how strong its tech is.
The simple fact also is that the best technology doesn't always win. Sony is a company that knows this very well. Its superior Betamax technology lost to VHS in the early days of VCRs. However, the company learned its lesson when DVDs came around, with its Blu-ray technology being the winner over HD DVD, despite arguably being the lesser technology. Time will tell who comes out on top with AI agents.
Is SoundHound stock a buy?
SoundHound is at the intersection of voice AI and AI agents, which has the potential to be an absolutely huge market. Meanwhile, with a market cap of less than $5 billion, the stock has a lot of runway if it can become one of the major players in this market.
Overall, an investment in SoundHound stock is a high-upside bet on a potentially big trend. For long-term investors who can handle volatility, buying this dip could be a great opportunity. Just remember, though, this is still a high risk-reward stock.
Should you invest $1,000 in SoundHound AI right now?
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Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Magnificent Artificial Intelligence (AI) Stock Is Down 50%. Buy the Dip, or Run for the Hills?

The NASDAQ 100 Pre-Market Indicator is up 12.42 to 22,897.01. The total Pre-Market volume is currently 338,578,021 shares traded.
The following are the most active stocks for the pre-market session:
Direxion Daily TSLA Bull 2X Shares (TSLL) is +0.16 at $11.23, with 8,618,421 shares traded. This represents a 78.54% increase from its 52 Week Low.
NVIDIA Corporation (NVDA) is +0.2 at $170.90, with 4,091,369 shares traded., following a 52-week high recorded in prior regular session.
Solid Power, Inc. (SLDP) is +0.06 at $3.24, with 3,878,974 shares traded., following a 52-week high recorded in prior regular session.
Above Food Ingredients Inc. (ABVE) is +0.27 at $2.15, with 3,303,273 shares traded.
ProShares UltraPro Short QQQ (SQQQ) is +0.08 at $19.21, with 3,162,956 shares traded. This represents a 2.67% increase from its 52 Week Low.
Sony Group Corporation (SONY) is -0.18 at $23.90, with 1,924,710 shares traded. As reported by Zacks, the current mean recommendation for SONY is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -0.3 at $84.53, with 1,859,963 shares traded. This represents a 141.51% increase from its 52 Week Low.
Bank of America Corporation (BAC) is +0.51 at $46.66, with 1,627,989 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $0.94. Smarter Analyst Reports: Citi Halts Share Buyback Amid New Regulation
BigBear.ai, Inc. (BBAI) is -0.08 at $7.02, with 1,562,549 shares traded. BBAI's current last sale is 140.4% of the target price of $5.
Haymaker Acquisition Corp. 4 (HYAC) is +0.025 at $11.09, with 1,510,100 shares traded.
MP Materials Corp. (MP) is +2.65 at $60.87, with 1,504,649 shares traded., following a 52-week high recorded in prior regular session.
Joby Aviation, Inc. (JOBY) is +0.47 at $14.42, with 1,172,474 shares traded., following a 52-week high recorded in prior regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Most Active for Jul 16, 2025 : TSLL, NVDA, SLDP, ABVE, SQQQ, SONY, TQQQ, BAC, BBAI, HYAC, MP, JOBY

Take-Two Interactive Software TTWO has experienced a remarkable 32% surge year to date, but investors should view this rally with extreme caution. Despite the recent momentum driven by anticipation around upcoming releases, fundamental weaknesses and concerning financial metrics suggest the stock is significantly overvalued and poised for a correction.
Unsustainable Valuation Amid Massive Financial Losses
The most glaring red flag for Take-Two investors is the disconnect between the stock's premium valuation and the company's deteriorating financial performance. The gaming giant reported a staggering GAAP net loss of $4.48 billion for fiscal 2025, representing a significant deterioration from the previous year's $3.74 billion loss. This massive deficit was primarily due to goodwill impairment charges of $3.55 billion, signaling that previous acquisitions have failed to deliver expected value.
Even more concerning is the company's operational cash flow, which turned negative at $45.2 million for fiscal 2025. For a company trading at current elevated levels following the 32% surge, these metrics paint a picture of fundamental weakness that cannot be ignored. The market appears to be pricing in perfection based on future potential rather than current reality, creating an unsustainable valuation bubble.
The company's management reporting shows adjusted EBITDA of only $199.1 million for the full year, a figure that pales in comparison to the market capitalization gains. This disconnect between financial performance and stock price appreciation suggests investors are paying an increasingly premium price for deteriorating fundamentals.
The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $5.99 billion, indicating 6.1% year-over-year growth, with earnings expected to increase 42.93% to $2.93 per share.
Take-Two Interactive Software, Inc. Price and Consensus
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Over-Dependence on Delayed Blockbuster Releases
Take-Two's business model has become dangerously dependent on a handful of blockbuster releases, creating significant execution risk that the current valuation fails to account for. The much-anticipated Grand Theft Auto VI, originally expected to drive fiscal 2026 performance, has been pushed to May 26, 2026, falling into fiscal 2027.
This delay represents a critical blow to near-term revenue expectations and highlights the company's inability to maintain consistent release schedules. The company's fiscal 2026 guidance of $5.9-$6 billion in net bookings represents merely 5% growth, hardly justifying the stock's recent surge.
Furthermore, the concentration risk is evident in the company's revenue breakdown, where a small number of franchises generate the majority of income. NBA 2K, Grand Theft Auto and mobile titles carry the entire operation, leaving little room for diversification when these properties underperform or face delays.
Declining Growth Trajectory and Margin Pressures
Take-Two's decelerating growth trajectory, combined with increasing cost pressures, has created long-term concerns for investors. The company's guidance indicates that recurrent consumer spending will remain flat in fiscal 2026, a concerning development for a business model that relies heavily on ongoing player engagement and monetization.
Mobile revenues, a key growth driver for the industry, are expected to decline, along with Grand Theft Auto Online performance. This dual headwind creates a challenging environment where the company must rely increasingly on new releases to drive growth, rather than building sustainable, recurring revenue streams.
Operating expenses have also surged, with management reporting a 3% year-over-year increase in fiscal 2026 expectations, primarily driven by higher marketing costs. This expense growth, combined with modest revenue expansion, suggests margin compression that will pressure profitability metrics further.
The company's development costs continue escalating, with capital expenditures of approximately $140 million planned for fiscal 2026. These investments may not yield immediate returns, creating additional pressure on near-term financial performance.
Premium Valuation Amid Intense Competition
Despite its operational challenges, Take-Two trades at a premium valuation that appears disconnected from its fundamental performance. TTWO’s P/E ratio hovers around 55.11, well above the industry’s 34.38, suggesting that it is not a great pick for a value investor. The Value Score of F further reinforces a stretched valuation for Take-Two at this moment.
TTWO’s P/E Ratio Depicts Premium Valuation
Image Source: Zacks Investment Research
The stock's 32% year-to-date gain, outperforming the Zacks Consumer Discretionary sector and its rivals, has created an expensive entry point for new investors, particularly given the company's negative earnings and cash flow generation.
TTWO Beats Sector, Rivals, YTD
Image Source: Zacks Investment Research
The gaming industry landscape has become increasingly competitive, with major technology companies like Microsoft MSFT, Sony SONY and emerging mobile-first developers capturing market share. Traditional publishers like Take-Two face pressure from subscription gaming services, free-to-play models, and changing consumer preferences toward live-service games.
Companies like Electronic Arts EA and Activision Blizzard (now part of Microsoft) have demonstrated superior execution in live-service gaming and consistent cash generation. Take-Two's inability to match these operational metrics while trading at comparable or higher valuations suggests significant downside risk.
Conclusion
Despite the 32% year-to-date surge, Take-Two Interactive presents a selling opportunity for risk-conscious investors. The combination of unsustainable valuation metrics, dangerous dependence on delayed blockbuster releases, and a declining growth trajectory creates a perfect storm for disappointment. Smart investors should consider taking profits from the recent rally and seeking opportunities in companies with more sustainable business models and reasonable valuations. Take-Two currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons Take-Two Stock is a Sell Despite a 32% YTD Surge

Scorecard
The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
TAPESTRY INC (TPR) is a large-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Tapestry, Inc. is a house of iconic accessories and lifestyle brands. The Company's global house of brands include Coach, kate spade new york and Stuart Weitzman. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which includes mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, brand e-commerce sites as well as concession shop-in-shops.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
PASS
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of TAPESTRY INC
TPR Guru Analysis
TPR Fundamental Analysis
ULTA BEAUTY INC (ULTA) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ulta Beauty, Inc. is a specialty beauty retailer in the United States. The Company offers cosmetics, fragrance, skin care products, hair care products and salon services. The Company operates approximately 1,445 retail stores across 50 states and also distributes its products through its Website, which includes a collection of tips, tutorials, and social content. It offers guests a differentiated assortment of approximately 29,000 products from approximately 600 beauty brands across a variety of categories and price points. It offers a wide selection of beauty and wellness categories, across cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools. It also offers beauty services in nearly every store, including a full-service hair salon and a Benefit Brow Bar. Its loyalty program, Ulta Beauty Rewards, enables members to earn points for every dollar spent on products and beauty services at Ulta Beauty.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
PASS
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of ULTA BEAUTY INC
ULTA Guru Analysis
ULTA Fundamental Analysis
CHOICE HOTELS INTERNATIONAL INC (CHH) is a mid-cap growth stock in the Misc. Financial Services industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Choice Hotels International, Inc. is a lodging franchisor with over 7,500 hotels, representing over 650,000 rooms, in 46 countries and territories. The CompanyGs segments include Hotel Franchising & Management and Corporate & Other. The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations, which consist of its approximately 22 brands and brand extensions and the hotel management operations of 13 hotels (inclusive of four-owned hotels). Its brand names include Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Ascend Hotel Collection, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, and Cambria Hotels (collectively, the legacy Choice brands). It also includes Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
FAIL
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of CHOICE HOTELS INTERNATIONAL INC
CHH Guru Analysis
CHH Fundamental Analysis
CARRIAGE SERVICES INC (CSV) is a small-cap value stock in the Personal Services industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Carriage Services, Inc. is a provider of funeral and cemetery services and merchandise in the United States. Its Funeral home and cemetery businesses provide products and services to families in three areas: ceremony and tribute, generally in the form of a funeral or memorial service; disposition of remains, either through burial or cremation; and memorialization, generally through monuments, markers or inscriptions. Its funeral homes offer a complete range of services to meet a family's funeral needs, consultation, the removal and preparation of remains, the sale of caskets and related funeral merchandise, the use of funeral home facilities for visitation and memorial services and transportation services. Its Cemeteries provide interment rights (primarily grave sites, lawn crypts, mausoleum spaces and niches), related cemetery merchandise (such as memorial markers, outer burial containers and monuments) and services (interments, inurnments and installation of cemetery merchandise).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
PASS
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of CARRIAGE SERVICES INC
CSV Guru Analysis
CSV Fundamental Analysis
SONY GROUP CORP (ADR) (SONY) is a large-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
PASS
SALES GROWTH RATE:
FAIL
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
FAIL
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of SONY GROUP CORP (ADR)
SONY Guru Analysis
Martin Zweig Portfolio
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
© 2025, Nasdaq, Inc. All Rights Reserved.
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Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 6/19/2025

Nintendo's Big Release

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
LyondellBasell Industries N.V. LYB is a chemical company. The Zacks Consensus Estimate for its current year earnings has been revised 16.7% downward over the last 60 days.
IRADIMED CORPORATION IRMD is a magnetic resonance imaging compatible medical devices company. The Zacks Consensus Estimate for its current year earnings has been revised 1.7% downward over the last 60 days.
Sony Group Corporation SONY is an electronic equipment, instruments, and devices company. The Zacks Consensus Estimate for its current year earnings has been revised 18.9% downward over the last 60 days.
View the entire Zacks Rank #5 List.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report
iRadimed Corporation (IRMD) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

New Strong Sell Stocks for June 12th

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
ADTALEM GLOBAL EDUCATION INC (ATGE) is a mid-cap growth stock in the Schools industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Adtalem Global Education Inc. is a provider of healthcare education in the United States, preparing a diverse workforce with academic programs. Its healthcare programs include nursing, medicine, veterinary medicine, social and behavioral sciences and more. Its segments include Chamberlain, Walden, and Medical and Veterinary. Chamberlain segment offers degree and certificate programs in the nursing and health professions postsecondary education industry. Walden segment offers degree and certificate programs, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. Medical and Veterinary segment offers degree and certificate programs in the medical and veterinary postsecondary education industry. This segment includes American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
FAIL
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of ADTALEM GLOBAL EDUCATION INC
ATGE Guru Analysis
ATGE Fundamental Analysis
HAYWARD HOLDINGS INC (HAYW) is a mid-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hayward Holdings, Inc. is a global designer, manufacturer, and marketer of a broad portfolio of pool and outdoor living technology. The Company offers a full line of energy-efficient and sustainable residential and commercial pool equipment including pumps, filters, heaters, cleaners, sanitizers, light emitting diode (LED) lighting, and water features, all digitally connected through its Internet of Things (IoT)-enabled SmartPad. Its products are connected through OmniLogic, its mobile application. It operates through two segments: North America (NAM) and Europe & Rest of World (E&RW). The NAM segment manufactures and sells a complete line of residential and commercial swimming pool equipment and supplies in the United States and Canada and manufactures and sells flow control products. The E&RW segment manufactures and sells residential and commercial swimming pool equipment and supplies in Europe, Central and South America, the Middle East, Australia, and other Asia Pacific countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
FAIL
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of HAYWARD HOLDINGS INC
HAYW Guru Analysis
HAYW Fundamental Analysis
URBAN OUTFITTERS INC (URBN) is a mid-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Urban Outfitters, Inc. is a lifestyle products and services company. The Company operates through three segments: Retail, Wholesale and Nuuly. The Retail segment includes its store and digital channels and primarily includes its Anthropologie, Free People, FP Movement and Urban Outfitters brands. In addition to retail stores, it offers products and services directly to its customers through its Websites, mobile applications, social media and third-party digital platforms, catalogs and customer contact centers. The Subscription segment includes the Nuuly brand, which primarily offers customers a more sustainable way to explore fashion through a monthly womenGs apparel subscription rental service. The Wholesale segment primarily designs, develops and markets young women's contemporary casual apparel, intimates, FP Movement activewear and shoes under the Free People and FP Movement brands and the BDG and iets frans apparel collections under the Urban Outfitters brand.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
PASS
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
FAIL
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
PASS
TOTAL DEBT/EQUITY RATIO:
PASS
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of URBAN OUTFITTERS INC
URBN Guru Analysis
URBN Fundamental Analysis
HASBRO INC (HAS) is a mid-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Hasbro, Inc. is a game, intellectual property (IP) and toy company. The Company delivers play experiences to kids, families, and fans around the world, through physical and digital games, video games, and toys, among others. Its Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. Its Wizards of the Coast and Digital Gaming segment engages in the promotion of the Company's brands through the development of trading cards, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. Its Entertainment segment engages in the development and production of Hasbro-branded entertainment content, including film, television, childrenGs programming, digital content and live entertainment focused on Hasbro-owned properties. Its portfolio of brands includes MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
FAIL
SALES GROWTH RATE:
PASS
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
FAIL
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of HASBRO INC
HAS Guru Analysis
SONY GROUP CORP (ADR) (SONY) is a large-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO:
PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:
PASS
SALES GROWTH RATE:
FAIL
CURRENT QUARTER EARNINGS:
PASS
QUARTERLY EARNINGS ONE YEAR AGO:
PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:
PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:
FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
EARNINGS PERSISTENCE:
FAIL
LONG-TERM EPS GROWTH:
FAIL
TOTAL DEBT/EQUITY RATIO:
FAIL
INSIDER TRANSACTIONS:
PASS
Detailed Analysis of SONY GROUP CORP (ADR)
SONY Guru Analysis
Martin Zweig Portfolio
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.