Stem, Inc.

In trading on Friday, rental, leasing, & royalty shares were relative leaders, up on the day by about 1.2%. Leading the group were shares of VirnetX Holding, up about 7.3% and shares of VOC Energy Trust up about 4.6% on the day.
Also showing relative strength are electronic equipment & products shares, up on the day by about 1.1% as a group, led by Stem, trading up by about 49.4% and Westwater Resources, trading up by about 27.4% on Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday Sector Leaders: Rental, Leasing, & Royalty, Electronic Equipment & Products

Stem, Inc. STEM shares ended the last trading session 8.8% higher at $6.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 33.7% loss over the past four weeks.
STEM is benefiting from its focus on high-margin software and services, particularly PowerTrack and managed services, along with cost reductions and improved operational efficiency.
This company is expected to post quarterly loss of $3.00 per share in its upcoming report, which represents a year-over-year change of +31.8%. Revenues are expected to be $33.1 million, down 2.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Stem, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STEM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Stem is part of the Zacks Computers - IT Services industry. Cognizant CTSH, another stock in the same industry, closed the last trading session 0.8% higher at $77.59. CTSH has returned -4.3% in the past month.
Cognizant's consensus EPS estimate for the upcoming report has changed +0.7% over the past month to $1.26. Compared to the company's year-ago EPS, this represents a change of +7.7%. Cognizant currently boasts a Zacks Rank of #2 (Buy).
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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.

Stem (STEM) Soars 8.8%: Is Further Upside Left in the Stock?

Teladoc (TDOC) shares rallied 14.4% in the last trading session to close at $7.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.3% gain over the past four weeks.
Teladoc witnessed a price rise after Citron Research highlighted strong growth prospects following the company’s Goldman Sachs presentation, where management revealed that embedding BetterHelp in employer health plans could drastically improve conversion rates. The recent acquisition of UpLift enables insurance billing. Citron also emphasized TDOC’s AI edge and scale as key drivers of future profitability.
Besides, Teladoc's competitive strengths lie in its unmatched integration of virtual care services, global reach and data-driven innovation. It offers a comprehensive suite of clinical services—from wellness and acute care to chronic and mental health management—through a highly scalable, secure and API-driven platform. Its proprietary engagement science, predictive analytics and personalized communications drive exceptional member utilization.
This telehealth services provider is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $621.69 million, down 3.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Teladoc, the consensus EPS estimate for the quarter has been revised 3.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TDOC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Teladoc is a member of the Zacks Medical Services industry. One other stock in the same industry, LifeMD, Inc. (LFMD), finished the last trading session 3.1% lower at $14.3. LFMD has returned 28% over the past month.
For LifeMD, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. This represents a change of +89.5% from what the company reported a year ago. LifeMD currently has a Zacks Rank of #3 (Hold).
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Teladoc (TDOC) Moves 14.4% Higher: Will This Strength Last?

Exelixis (EXEL) shares soared 7.4% in the last trading session to close at $43.37. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4.8% loss over the past four weeks.
Shares rallied following the company's announcement that the late-stage STELLAR-303 study met one of its two dual primary endpoints, demonstrating a statistically significant improvement in overall survival (OS) for the intent-to-treat (ITT) population when treated with zanzalintinib in combination with Tecentriq compared to the current standard-of-care drug, regorafenib.
The positive data from this study increases the likelihood of a potential approval of zanzalintinib.
This drug developer is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $571.08 million, down 10.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Exelixis, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EXEL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exelixis is part of the Zacks Medical - Biomedical and Genetics industry. Cartesian Therapeutics, Inc. (RNAC), another stock in the same industry, closed the last trading session 0.7% higher at $9.83. RNAC has returned 6.6% in the past month.
Cartesian Therapeutics, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.77. Compared to the company's year-ago EPS, this represents a change of -242.6%. Cartesian Therapeutics, Inc. currently boasts a Zacks Rank of #3 (Hold).
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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.

Exelixis (EXEL) Surges 7.4%: Is This an Indication of Further Gains?

Nektar Therapeutics (NKTR) shares soared 12.1% in the last trading session to close at $9.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.2% loss over the past four weeks.
The stock rallied as investor optimism grew over the company's review of top-line data from the phase IIb REZOLVE-AD study evaluating its pipeline candidate, rezpegaldesleukin, for treating moderate-to-severe atopic dermatitis.
This biopharmaceutical company is expected to post quarterly loss of $2.53 per share in its upcoming report, which represents a year-over-year change of +32.5%. Revenues are expected to be $10.78 million, down 54.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Nektar, the consensus EPS estimate for the quarter has been revised 10.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NKTR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nektar belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Indivior PLC (INDV), closed the last trading session 0.4% lower at $13.95. Over the past month, INDV has returned 24.4%.
For Indivior, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.25. This represents a change of -43.2% from what the company reported a year ago. Indivior currently has a Zacks Rank of #3 (Hold).
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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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.

Strength Seen in Nektar (NKTR): Can Its 12.1% Jump Turn into More Strength?

RGC Resources Inc. (RGCO) shares rallied 9.1% in the last trading session to close at $22.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.5% loss over the past four weeks.
RGCO’s share price surged on Monday, driven by a sharp increase in natural gas demand and prices amid an ongoing heatwave across the eastern U.S. The extreme temperatures significantly boosted power generation needs, prompting utilities to consume more natural gas to meet the spike in electricity usage. Although gas output in the Lower 48 states edged slightly higher in June, it remained below March’s record levels, keeping supply relatively tight. At the same time, seasonal maintenance at major LNG export facilities reduced outbound flows, easing pressure on domestic supply. Adding to the bullish sentiment, ongoing geopolitical instability in the Middle East has heightened concerns over potential disruptions to global LNG trade, particularly through the Strait of Hormuz—a key chokepoint for roughly one-fifth of the world's LNG shipments. This confluence of strong domestic demand, limited supply growth, and broader market uncertainty lifted investor confidence in regional gas utilities like RGC Resources, fueling the notable rise in its share price.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $15 million, up 3.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For RGC Resources, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RGCO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
RGC Resources belongs to the Zacks Oil and Gas - Refining and Marketing industry. Another stock from the same industry, TotalEnergies SE Sponsored ADR (TTE), closed the last trading session 2.1% lower at $61.28. Over the past month, TTE has returned 8.1%.
For TotalEnergies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.64. This represents a change of -17.2% from what the company reported a year ago. TotalEnergies currently has a Zacks Rank of #3 (Hold).
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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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.

RGC Resources (RGCO) Surges 9.1%: Is This an Indication of Further Gains?

Mobileye Global (MBLY) shares rallied 11.6% in the last trading session to close at $16.42. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.7% loss over the past four weeks.
Mobileye shares rallied amid broader macroeconomic and geopolitical shifts. The stock jumped after Iran’s missile strikes on U.S. bases hinted at possible de-escalation in Middle East tensions. The firm’s headquarters are located in Israel, which makes it highly exposed to regional instability. Following President Donald Trump’s call to end the conflict between Israel and Iran, indications emerged that military tensions may be easing. Adding to the positive mood, a Federal Reserve official’s comments increased hopes that interest rates might be cut next month.
This maker of driver-assistance systems and autonomous driving technologies is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $462.79 million, up 5.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Mobileye, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MBLY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Mobileye belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Modine (MOD), closed the last trading session 0.5% higher at $97.17. Over the past month, MOD has returned 7.7%.
Modine's consensus EPS estimate for the upcoming report has changed -12.3% over the past month to $0.98. Compared to the company's year-ago EPS, this represents a change of -5.8%. Modine currently boasts a Zacks Rank of #3 (Hold).
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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.

Strength Seen in Mobileye (MBLY): Can Its 11.6% Jump Turn into More Strength?

An updated edition of the May 6, 2025 article.
The global shift toward sustainability is transforming the energy landscape, with industries rapidly adopting renewable sources like solar and wind. However, their intermittent nature has highlighted the critical need for reliable energy storage. This has fueled growing interest in battery storage technologies, which store excess power generated during peak periods and release it when production dips, ensuring grid stability and consistent supply.
As a result, demand for scalable storage solutions has surged, in tandem with increased adoption of renewable energy, over the past decade, positioning both of them as key pillars of the global energy transition.
According to the International Energy Agency’s (“IEA”) Global Energy Review report, published in March 2025, global electricity generation grew over 1,200 terawatt-hours (TWh) in 2024, with clean energy accounting for 80% of this growth. This trend, reflecting the clean energy’s prowess in driving the majority of global electricity expansion, thus implies strong growth opportunities in renewable energy and battery storage space. Notably, utility providers like Ameren Corp. AEE and American Electric Power Corp. AEP are capitalizing on these growth opportunities through the rapid expansion of their renewable generation portfolio. On the other hand, technology-driven core clean energy stocks, like Vestas Wind Systems VWDRY, a wind turbine manufacturer, and Stem Inc. STEM, known for its AI-driven clean energy optimization solutions, have already found their place in a clean energy investor’s watchlist.
Looking ahead, the IEA projects that new renewable energy capacity added globally between 2024 and 2030 will amount to more than 5,500 gigawatts (GW) — almost three times the increase seen between 2017 and 2023. To support this massive renewable energy capacity expansion, energy storage is projected to increase six times. Such solid projections naturally boost growth opportunities for those who have invested in or intend to invest in the renewable energy and battery storage space.
A key catalyst driving growth in this space is the essential nature of electricity, which continues to fuel strong demand even during economic downturns. This offers relative stability to stakeholders in the renewable energy and battery storage space, as more and more industries are inclining toward clean energy.
Other factors like expanding industrial output, rapid growth in electric vehicle (EV) adoption, data center proliferation, and heightened use of cooling systems amid worsening climate conditions are contributing to a rapid surge in electricity demand and thereby attracting more investments in renewables and batteries.
Furthermore, robust policy support, fiscal incentives, international commitments to net-zero emissions, along with declining costs of installation, particularly for solar and wind, are enhancing the competitiveness of clean energy companies, enabling them to deliver sustainable long-term value in an evolving global energy market.
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4 Renewable Energy & Battery Storage Stocks to Watch
Ameren, which generates and distributes electricity, has been steadily investing in offering electricity through cleaner sources of energy generation, such as solar, wind, natural gas, hydro and nuclear power. To this end, it is imperative to mention that the company has 1,200 MW of approved generation currently under construction.
Looking ahead, AEE targets to expand its renewable portfolio by adding 3,200 MWs of renewable generation by 2030 and an additional 1,500 MWs by 2035. It also aims to add 1,000 MWs of battery storage by the end of 2030 and an additional 800 MWs by 2042.
To facilitate this renewable expansion, in February 2025, the company’s Ameren Missouri segment filed an update to its Smart Energy Plan, which includes a five-year investment worth $16.2 billion during the 2025-2029 period to upgrade the company’s grid, harden its poles and conductors, as well as accommodate more renewable energy. Such an elaborate investment plan reflects this Zacks Rank #3 (Hold) stock’s long-term vision of delivering reliable, affordable and cleaner energy to all its customers. The Zacks Consensus Estimate for AEE’s 2025 and 2026 sales implies year-over-year growth of 10.4% and 5.3%, respectively. The long-term (three-to-five years) earnings growth rate is estimated to be 7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Electric Corp., one of the largest integrated utilities in the United States, has been investing steadily to enhance its renewable generation portfolio. In 2024, the company received regulatory approvals from various state regulatory commissions to acquire approximately 2,303 MWs of owned renewable generation facilities through investments worth $5.5 billion. In addition, AEP received regulatory approvals for 637 MWs of renewable power purchase agreements (PPAs).
Looking ahead, the company aims to spend $9.9 billion during 2025-2029 in regulated renewable expansion and enhance its renewable generation portfolio to 50% by 2030.
In November 2024, AEP placed an order to secure up to 1GW of Bloom Energy’s solid oxide fuel cells, marking the largest commercial procurement of fuel cells in the world to date. In April 2025, AEP’s Indiana Michigan Power company submitted a filing requesting approval of a certificate of public convenience and necessity to acquire the Oregon Clean Energy Center, an existing 870 MW natural gas plant located in Oregon, OH. Such initiatives should further strengthen this Zacks Rank #3 stock’s position in the rapidly evolving renewable energy space. The Zacks Consensus Estimate for AEP’s 2025 and 2026 sales implies year-over-year growth of 6.8% and 4.9%, respectively. Its long-term earnings growth rate is estimated to be 6.4%.
Vestas Wind Systems, the world’s largest wind turbine manufacturer, has been consistently engaged in the development and deployment of sustainable energy solutions. The company had around 56,700 wind turbines, equivalent to 157 GW under service, as of March 2025.
At the end of the first quarter of 2025, turbines produced and shipped by VWDRY (in the last 12 months) are expected to avoid 490 million tons of CO2, over the course of their lifetime, reflecting a 25% improvement year over year.
On June 17, 2025, Vestas received a 124 MW order from EDF power solutions North America (EDFps) to supply 20 EnVentus V162-6.2 MW wind turbines for the Haute-Chaudière wind project in Québec, including a 10-year Active Output Management (“AOM”) 5000 service agreement. In May 2025, Vestas announced that it will acquire LM Wind Power’s blade factory in Poland to expand its European manufacturing capacity and support growing regional energy demand. These announcements imply VWDRY’s rapidly expanding footprint in the renewable energy industry. Per the Zacks Consensus Estimate, this Zacks Rank #2 (Buy) company is projected to witness an 8.8% and 11.5% rise in 2025 and 2026 sales, respectively. Its long-term earnings growth rate is 33.4%.
Over the past 15 years, Stem Inc. has emerged as a leading clean energy software provider, with achievements including partnerships with Fortune 500 companies and operating California’s largest virtual power plant.
As of March 31, 2025, over 16,000 customers worldwide used its AI-driven solutions to optimize clean energy portfolios. The company manages nearly 30 GW of solar assets and over 5 GWh of contracted energy storage globally, operating one of the largest distributed clean energy networks.
In the first quarter of 2025, Stem had 1.6 GWh of energy storage and 32.4 GWh of solar systems in operation, which rose 100% and 20.4%, respectively, year over year, highlighting strong growth in renewables and storage. These trends underscore Stem’s expanding footprint in the clean energy space. Per the Zacks Consensus Estimate, this Zacks Rank #2 company is likely to witness a rise of 0.4% and 8.3% in 2025 and 2026 sales, respectively.
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Ameren Corporation (AEE) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
Stem, Inc. (STEM) : Free Stock Analysis Report
Vestas Wind Systems AS (VWDRY) : Free Stock Analysis Report
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.

Watch These Renewable Energy & Battery Energy Stocks for Valuable Gains

Wix.com Ltd. WIX has announced the acquisition of Hour One, a pioneer in generative artificial intelligence (AI) media creation. This move further strengthens Wix’s position at the forefront of AI-driven digital experiences, enhancing its capabilities in advanced web and visual design.
Hour One specializes in technology that enables scalable production of studio-quality content. Its platform allows users to create personalized videos and interactive media, combining storytelling with real-time engagement. Its proprietary cloud infrastructure integrates generative AI inference with advanced 3D rendering, making it a valuable asset that positions Wix at the forefront of scalable, high-impact content creation.
Wix.com Ltd. Price and Consensus
Wix.com Ltd. price-consensus-chart | Wix.com Ltd. Quote
Wix highlighted that this acquisition significantly expands its AI expertise and aligns with its vision of making web creation faster, smarter and more immersive. Bringing this technology in-house allows the company to maintain greater control over front-end innovations, reduce third-party dependencies and manage costs more effectively.
Wix Fuels Growth Through AI Innovation
WIX is focusing on generative AI, which represents a significant business growth driver. It is also embedding AI assistants across its platform and continues to add new products to capitalize on the AI boom. New AI business assistants are improving operational efficiency and customer conversion rates. The recent launch of Wixel is a primary step in this direction. Wixel introduced in May 2025 is a new standalone AI-driven visual design platform designed to make professional-grade design accessible to everyone. Combining advanced AI with a user-friendly interface and robust features, Wixel empowers users to easily transform ideas into high-quality visual content with minimal effort.
Before that, Wix launched the Model Context Protocol (MCP) Server, allowing developers and business owners to create production-ready Wix solutions through AI coding assistants and large language models. The MCP Server enables seamless code generation and business management using natural language via tools like Claude, Cursor and Windsurf. It provides access to key Wix functionalities such as inventory management, staff scheduling, secure checkouts, ticketing, a flexible CMS and CRM features for lead capture and back-office operations.
In April, 2025, Wix introduced an AI-powered adaptive content application. This innovative tool is designed to dynamically personalize website content, tailoring it to individual visitor characteristics and user-defined instructions, thereby boosting engagement and enhancing the user experience.
Wix unveiled Astro, an AI-powered business assistant designed to enhance user productivity and streamline business operations in April 2025. This innovative tool allows users to interact through a chat-based interface to perform a wide range of business and back-office tasks effortlessly. Astro represents the first in a series of AI-driven agents Wix plans to introduce, setting the foundation for increased efficiency, better monetization and business growth for users.
Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. Recently, WIX reported first-quarter 2025 results, wherein non-GAAP earnings per share (EPS) came to $1.55 compared with $1.29 in the year-ago quarter. Quarterly revenues increased 13% year over year to $473.7 million. The top line exceeded management’s guidance ($469-$473 million), driven by strong performance of the new user cohort and continued healthy engagement from existing users. Wix is focusing on AI to reduce user friction, enhance design quality and speed up time-to-market for customers. Wix continues to expect revenues to grow 12-14% in the range of $1.97-$2 billion for 2025. Management reiterated non-GAAP total gross margin at 70% and non-GAAP operating expenses to be 47-48% of 2025 net sales.
Wix’s Zacks Rank & Stock Price Performance
WIX currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 11% in the past year against the Computers - IT Services industry's growth of 5.2%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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Stocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are Unisys Corporation UIS, Stem, Inc. STEM and Cognizant Technology Solutions Corporation CTSH. UIS sports a Zacks Rank #1, while STEM and CTSH carry a Zacks Rank #2 (Buy).
Unisys’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 46.85%. In the last reported quarter, UIS delivered an earnings surprise of 79.17%. The company’s long-term earnings growth rate is 15%. Its shares have increased 6.8% in the past year.
Stem’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, with the average surprise being 12.34%. In the last reported quarter, STEM delivered an earnings surprise of 25%. Its shares have surged 8.3% in the past six months.
Cognizant’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.38%. In the last reported quarter, CTSH delivered an earnings surprise of 3.36%. Its shares have increased 15.8% in the past year.
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Unisys Corporation (UIS) : Free Stock Analysis Report
Stem, Inc. (STEM) : Free Stock Analysis Report
Wix.com Ltd. (WIX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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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.

Wix Acquires Hour One to Boost Generative AI and Drive Innovation

Stem’s STEM shares have jumped 32.1% over the past month, outperforming the broader Zacks Computer and Technology sector’s appreciation of 19.5% and the Zacks Computers - IT Services industry’s rise of 17.8%.
STEM's strong stock price performance can be largely attributed to its robust first-quarter 2025 results, as the company reached several key profitability milestones.
Stem delivered a strong top-line performance in the first quarter of 2025, with total revenues rising 27% year over year, driven by heightened focus on its software portfolio, particularly the PowerTrack platform. The top line beat the Zacks Consensus Estimates by 26%, highlighting the success of STEM’s strategy to shift toward a more software-centric business model. Stem incurred a loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 20 cents.
The company reported a 46% enhancement in the gross margins, driven by strong growth across its high-margin software, services and edge device offerings. STEM also generated positive quarterly cash flow of $8.5 million from operations for the first time in its history — a key indicator of the company’s operational discipline and progress. These achievements underscore the effectiveness of STEM’s refined business model and its strategic execution.
Stem, Inc. Price and Consensus
Stem, Inc. price-consensus-chart | Stem, Inc. Quote
STEM shares have outperformed its industry peers, including Cerence CRNC, Accenture ACN and Roper Technologies ROP. Shares of Cerence, Accenture and Roper Technologies have gained 39.2%, 13.8%, and 4.9%, respectively, over the same time frame.
Stem’s Impressive Financial Performance
A key highlight of the first-quarter 2025 results was the continued expansion in STEM’s recurring revenue streams. Annual recurring revenue (ARR) reached $57 million, up 8% year over year, whereas contracted annual recurring revenue (CARR) grew 7% sequentially to $69 million. These metrics underscore the strength and scalability of STEM’s software and services portfolio, which is increasingly contributing to long-term revenue visibility and improved profitability.
Operational metrics showed meaningful improvement. Solar operating AUM reached 32.4 GW, representing a 20% year-over-year increase and an 8% sequential gain. Storage Operating AUM doubled to 1.6 GWh from the same period last year.
However, bookings in the reported quarter came in at $34.5 million, slightly below the $37.6 million reported in the year-ago quarter. STEM’s contracted backlog rose 21% sequentially to $25.3 million, reflecting solid underlying demand and a healthy project pipeline moving forward.
Organizational Transformation Drives Success for STEM
In alignment with its strategic evolution, Stem has executed a significant organizational transformation aimed at enhancing operational efficiency and driving sustained profitability. A key initiative has been the establishment of four distinct business units — Software Products, Professional Services, Managed Services and OEM Hardware — each with full profit and loss accountability. By giving each unit ownership over its financial outcomes, including EBITDA and cash flow, STEM is positioning itself to make faster, more informed decisions that are aligned with customer needs and market dynamics.
As part of this shift, STEM implemented a targeted 27% workforce reduction announced on April 9, 2025. The reduction is expected to result in approximately $30 million in annual cash cost savings, including an anticipated $24 million benefit in 2025. These changes underscore STEM’s commitment to operational discipline and long-term value creation, reinforcing its trajectory toward sustainable profitability.
Stem Reaffirms 2025 Outlook, Signals Profitability Path
STEM reiterated its 2025 guidance.
Revenues are projected between $125 million and $175 million. The Zacks Consensus Estimate for revenues is pegged at $145.20 million, indicating year-over-year growth of 0.43%.
The consensus mark for the 2025 bottom line is pegged at a loss of 51 cents per share. The estimate implies a significant improvement from a loss of $1.04 per share incurred in the prior year.
Conclusion: Buy STEM Stock Now
Stem’s solid first-quarter performance, growing Annual Recurring Revenue base and first-ever positive operating cash flow highlight its strategic momentum. Its shift to high-margin software, cost optimizations and a streamlined operating model positions the company for sustainable growth. A reaffirmed guidance reflects management’s confidence in long-term profitability and smooth execution.
STEM has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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