0% found this document useful (0 votes)
50 views11 pages

Zacks Report

This report highlights seven stocks ranked #1 by Zacks, which have shown strong potential for market outperformance. Each company, including Affirm Holdings, Astronics, CME Group, Griffon Corporation, GameStop, Sprouts Farmers Market, and StoneCo, has demonstrated positive earnings surprises and growth in revenue and earnings estimates. The Zacks Rank system has historically provided an average annual gain of +23.9% since 1988, making these stocks promising investment opportunities.

Uploaded by

rohit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
50 views11 pages

Zacks Report

This report highlights seven stocks ranked #1 by Zacks, which have shown strong potential for market outperformance. Each company, including Affirm Holdings, Astronics, CME Group, Griffon Corporation, GameStop, Sprouts Farmers Market, and StoneCo, has demonstrated positive earnings surprises and growth in revenue and earnings estimates. The Zacks Rank system has historically provided an average annual gain of +23.9% since 1988, making these stocks promising investment opportunities.

Uploaded by

rohit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

Contents

Overview

Affirm Holdings (AFRM)

Astronics (ATRO)

CME Group (CME)

Griffon Corporation (GFF)

GameStop (GME)

Sprouts Farmers Market, Inc. (SFM)

StoneCo (STNE)

Note to Reader

What To Do Next

Overview

The predictive ability of the Zacks Rank cannot be denied. In fact, since 1988, if you
invested in Zacks Rank #1 stocks, you would have averaged a gain of +23.9% per
year.*

Now, in this report, you'll receive highlights on 7 stocks from the more than 200
companies that compose the coveted Zacks #1 Rank List. Remember only 5% of all
stocks covered by the proprietary Zacks Rank system have the promise and potential
to beat the market in the next 30 days like these Strong Buy stocks.

Inside this report, you'll discover the company financials, earnings data and analysis
of these 7 promising companies.

Affirm
Holdings
(AFRM)

Affirm Holdings (AFRM) is a


financial services company
that offers "buy now, pay
later" solutions, allowing
customers to make
purchases and pay over
time. Its services power
transactions for a diverse
range of merchants, from small businesses to large enterprises, across sectors
including travel, fashion, home goods, sporting equipment, electronics, and general
retail.

The company posted a positive EPS surprise of 215% in its second quarter, while also
beating on revenues and raising its guidance. Third-quarter revenues are now seen at
$755-785M, above the $773M expected. FY25 revenues were taken up to $3.13-3.19B
v the $3.11B expected.

For the current year, earnings estimates have jumped from $-0.55 to -$0.10 since that
earnings report. And for next year, estimates have gone from $0.50 to $0.61. This is a
move of 18% over the last 90 days.
And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

Astronics
(ATRO)

Astronics (ATRO) engages


in the provision of electrical
power generation and
distribution systems,
including motion systems,
lighting and safety systems,
avionics products, aircraft
structures, systems
certification, and
automated test systems.

The company has posted two consecutive beats of the Zacks Consensus Estimate.
The most recent earnings print saw the company post $0.48 when the consensus
was at $0.21. That 27-cent beat translates into a positive earnings surprise of 128%.
Earnings estimates for the full year 2025 have advanced from $1.10 to $1.29 over the
last 60 days.

Next year saw a big move higher as well, going from $1.34 to $1.81 over the same
period. Revenue for 2025 is expected at $830M, which will end up being growth of
about 4.3%. Next year analysts are calling for sales of just over $900M, which would
be good for growth of 8.9%.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »
CME Group
(CME)

CME Group (CME) is the


world's leading and most
diverse derivatives
marketplace, operating
contract markets for the
trading of futures and
options worldwide.

The company boasts a long


history of surpassing
earnings estimates. Most recently, it delivered fourth-quarter earnings back in
February of $2.52 per share, which represented a 3.28% surprise over the Zacks
Consensus Estimate.

Analysts covering CME have upped their current-quarter EPS estimates by 5.84% in
the past 60 days. The Zacks Consensus Estimate now stands at $2.72 per share,
translating to growth of 8.8% relative to the year-ago period.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

Griffon
Corporation
(GFF)

Griffon Corporation (GFF)


should be able to sustain
and even prosper with the
diversified holding
company having exposure
to several sectors as a
manufacturer of a wide
range of consumer products, from garage doors and shutters to materials for
disposable diapers and health care items.

The company's diversity has contributed to its resilience and strong profitability with
annual earnings expected to increase 11% in fiscal 2025 and projected to soar
another 21% in FY26 to $6.90 per share. Griffon's total sales are slated to dip 1% this
year but are forecasted to rebound and rise 3% in FY26 to $2.67 billion.

More intriguing is that FY25 and FY26 EPS estimates have continued to trend higher
over the last month and are now up 3% and 7% in the last 60 days respectively.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

GameStop
(GME)
GameStop (GME) is the
world's largest video game
retailer. Most investors are
familiar with this stock due
to the ‘meme stock' mania
a few years back, with the
company reflecting the
poster child of the bunch
overall.

Though shares are down nearly 20% year-to-date, CEO Ryan Cohen recently stepped in
and purchased 500k shares at a total transaction value of roughly $10.7 million,
perhaps a nice indication of his views on the long-term outlook.

Sales growth has been sluggish, but the company's margins picture continues to
improve nicely over recent periods. The bullish EPS outlook for the stock paints a
positive near-term picture, with its next set of quarterly results expected near the
beginning of June.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

Sprouts
Farmers
Market, Inc.
(SFM)

Sprouts Farmers Market,


Inc. (SFM) is a specialty
grocery company that
operates roughly 440 stores
across 24 states.

In 2024, the company grew sales by 13%, with comparable store sales up 7.6%, driving
a 50% increase in adjusted earnings. SFM is projected to boost same-store sales by
6% in 2025. Revenue is expected to grow by 12% in 2025 and 11% in 2026, reaching
$9.54 billion. The firm is set to follow its strong EPS growth with 24% year-over-year
expansion in 2025 and 14% in 2026.

The company has exceeded quarterly earnings estimates by an average of 15% over
the past four periods, and its earnings estimates have surged since its Q4 release.
SFM's FY25 consensus earnings estimate has risen 10% in recent months, with FY26
estimates up 13%.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

StoneCo
(STNE)

StoneCo (STNE) is a
leading fintech company
based in Brazil. It runs a
complete end-to-end cloud-
based platform that allows
retailers and businesses to
accept electronic payments
across storefronts and
mobile and online channels.

STNE outpaced Zacks Consensus Estimates in twelve of the past thirteen quarters.
Last quarter, despite a difficult and uncertain macroeconomic environment, the
company beat Wall Street's top-and-bottom-line expectations. A positive EPS surprise
of 21.88% last quarter suggests that STNE's business is gaining momentum.

Despite a more than 15% earnings surge, STNE shares are cheap and trade at a
forward P/E ratio of ~8x EPS. STNE's technical picture echoes its bullish
fundamentals. Following last quarter's earnings results, shares bolted above the 200-
day moving average and are breaking out of a multi-week base structure.

And now would you like to see all of today's Zacks Rank #1 Strong Buys? Click here »

Note to Reader

In addition to our 7 Best, you can see each day's full,


updated list of 220 Zacks Rank #1 Strong Buy stocks
free of charge.

This is the list that has more than doubled the S&P 500 from January 1, 1988 through
March 3, 2025 with an average gain of +23.9% per year. It's a great place to start your
stock search. Plus you can also access our full list of must-avoid Strong Sells and
other private research not available on Zacks.com. See the stocks free »

What To Do Next
In addition to the hand-selected picks included in this
special report, you can move yourself way ahead of the
crowd in any market environment with the following:

As part of this free report, you will now receive our free daily e-newsletter, Profit
from the Pros. Each morning, Executive Vice President Kevin Matras will
summarize the market, what it means for investors and what to do next. Plus you
get links to articles featuring some of our top stock, ETF and mutual fund
recommendations. Be sure to look for it in your email inbox before the markets
open every day.

Now you should bookmark our homepage to take advantage of one of the most
complete investment websites around.

Go there now: www.zacks.com

Disclaimer

Copyright 2025 Zacks Investment Research

This Special Report has not been authorized, sponsored, or otherwise approved or endorsed by the companies
represented herein. Each of the company names represented herein are trademarks of Sprouts Farmers Market,
Inc.; StoneCo Ltd.; Griffon Corporation; GameStop Corp.; International Monetary Market; Astronics Corporation;
Affirm Holdings, Inc.

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

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This
material is being provided for informational purposes only and nothing herein constitutes investment, legal,
accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is
being given as to whether any investment is suitable for a particular investor. It should not be assumed that any
investments in securities, companies, sectors or markets identified and described were or will be profitable. All
information is current as of the date of herein and is subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities
dealer, broker or U.S. investment adviser or investment bank.

The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through March 3, 2025. The
performance is the equal weighted performance of a hypothetical portfolio consisting of stocks with a Zacks Rank
of #1 that was rebalanced monthly from January 1988 through December 2013 and weekly from 12/31/13
through Monday's open on March 3, 2025. For each stock with a Zacks Rank #1 at the beginning of the month, the
total return during the month was calculated as the % change in the price of the stock from the closing price of the
prior month to the closing price of the current month plus any dividends received during the month. The monthly
individual stock returns were then averaged to determine the portfolio return for the month. For each stock with a
Zacks Rank #1 at the beginning of the week, the total return during the week was calculated as the % change in the
price of the stock from the opening price for the week to the opening price of the next week plus any dividends
received during the week. The weekly individual stock returns were then averaged to determine the portfolio return
for the week. If no month-end price or week end open price was available for a stock, it was not included in the
portfolio return for the month or the week. The monthly and weekly returns were compounded to arrive at the
annual returns. The annualized return is the annual return that, had it been achieved in each year or portion of a
year, would have compounded to create the total return over the full time period. These returns are based on the
list of Zacks Rank #1 Stocks that was available to clients of Zacks as of the beginning of the month, when returns
were calculated monthly, or as of the beginning of the week when returns were calculated weekly. These returns
are higher than the returns an investor could achieve investing real money in a portfolio of Zacks Rank #1 stocks
because the returns of the hypothetical Zacks Rank #1 portfolio exclude a number of costs, including
commissions incurred for trading, the average bid ask spread, the price impact of the trading and, prior to 2013, in
those months when the end of the month fell on Friday, Saturday or Sunday, the overnight return from the month
end close to the open on the next trading day. The S&P 500 is an unmanaged index. Visit
www.zacks.com/performance_disclosure for information about the performance numbers displayed above.

You might also like