Zacks.com featured highlights include Sanmina, Chord Energy, Marathon Petroleum and Cenovus Energy

For Immediate Release

Chicago, IL – May 5, 2026 – Stocks in this week’s article are Sanmina SANM, Chord Energy Corp. CHRD, Marathon Petroleum MPC and Cenovus Energy CVE.

4 Stocks Trading Near 52-Week Highs with More Upside Potential

Investors generally consider a stock's 52-week high a good criterion for an entry or exit point. Stocks touching new 52-week highs are often predisposed to profit-taking, resulting in pullbacks and trend reversals.

Moreover, given the high price, investors often wonder if the stock is overpriced. While the speculation is not completely baseless, not all stocks hitting a 52-week high are necessarily overpriced.

Investors might lose out on top gainers in an attempt to avoid the steep prices.

Stocks such as Sanmina, Chord Energy Corp., Marathon Petroleum and Cenovus Energy are expected to maintain their momentum and keep scaling new highs. More information on a stock is necessary to determine whether there is scope for further upside.

Here, we discuss a strategy to find the right stocks. The technique borrows from the basics of momentum investing and bets on “buy high, sell higher.”

52-Week High: A Good Indicator

Many times, stocks that hit a 52-week high fail to scale higher despite having potential. This is because investors fear that the stocks are overvalued and expect the price to crash.

Overvaluation is natural for most of these stocks as investors’ focus (or willingness to pay the premium) has helped them reach this level. But that does not always indicate an impending decline. Factors such as robust sales, surging profit levels, earnings growth prospects and strategic acquisitions, which encouraged investors to bet on these stocks, could keep them motivated if there are no tangible negatives. In other words, the momentum might continue.

Also, when a string of positive developments dominates the market, investors find their underreaction unwarranted, even if there are no company-specific driving forces. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are our four picks out of the five stocks that made it through the screen:

Sanmina is well-positioned to deliver sustained earnings growth through fiscal 2026, supported by structural strengths and recent operational milestones. The company's second quarter, which ended March 28, 2026, reflected strong revenue of $4.01 billion, with core Sanmina growing 7.3% year over year, demonstrating broad-based demand health beyond its ZT Systems acquisition.

Non-GAAP operating margin expanded to 6.4%, while free cash flow reached $342 million for the quarter, signaling disciplined capital deployment. The balance sheet remained robust, with $1.58 billion in cash. On April 27, 2026, the board authorized a $600 million share repurchase program, reinforcing the capital return commitment. The Cloud and AI Infrastructure end-market continues to drive accelerated compute demand, underpinning management's confidence in full-year fiscal 2026 revenue guidance of $13.7-$14.3 billion.

This stock has returned 22.5% in the past six months. It has a trailing four-quarter earnings surprise of 13.85%, on average.

Chord Energy Corporation targets oil production of 157–161 MBopd, approximately $2.3 billion in adjusted EBITDA and $700 million in adjusted free cash flow in 2026. The XTO Williston Basin acquisition, completed in the fourth quarter of 2025, added 38 MMBoe to proved reserves totaling 917.5 MMBoe, with WTI breakevens in the low $40s.

Approximately 80% of 2026 wells will be long laterals. Fiscal 2025 lease operating expenses were $9.73/Boe, below guidance, aided by AI-driven optimization across approximately 99% of rod-lift wells. A $1.30 per share base dividend was paid on March 27, 2026. With leverage near 0.6x, CHRD is positioned for sustained value creation.

This stock has returned 71.3% in the past six-month period. It delivered a trailing four-quarter earnings surprise of 5.44%, on average.

Marathon Petroleum's investment case in 2026 is grounded in operational strength and structural cash flow advantage. Its refining system achieved 94% utilization and 105% margin capture in full-year 2025, generating $8.3 billion in operating cash flow. Midstream subsidiary MPLX's rising distributions are structurally positioned to more than fund MPC's 2026 dividend and $1.5 billion standalone capital budget, creating a self-funding return engine.

Multiple high-return infrastructure projects, including the Blackcomb and Bay Runner pipelines and Harmon Creek III processing plant, are scheduled for 2026 commissioning, expanding midstream throughput and fee-based earnings visibility. On April 29, 2026, MPC declared a $1.00 per share quarterly dividend, underscoring its commitment to shareholder returns. With $4.4 billion remaining under buyback authorizations, capital return remains intact.

This stock has surged 33.4% in the past six-month period. It has a trailing four-quarter earnings surprise of 32.69%, on average.

Cenovus Energy’s fourth-quarter 2025 upstream production reached a record 917,900 BOE/d, rising 5% year over year excluding the MEG acquisition, while downstream utilization was 98%. Adjusted funds flow for the full year rose to $8.9 billion and net earnings grew to $3.9 billion. The MEG acquisition, closed in November 2025, is set to generate $150 million in annual synergies through 2027, growing to over $400 million by 2028. In March 2026, Cenovus redeemed $300 million of preferred shares from existing cash. West White Rose, targeting first oil in the second quarter of 2026, will add 45,000 bbls/d net at peak.

This stock has gained 76.5% in the past six months. It has a trailing four-quarter earnings surprise of 51.16%, on average.

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

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

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

See Stocks Free >>

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2914167/4-stocks-trading-near-52-week-high-with-more-upside-potential

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

About Screen of the Week

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

Strong Stocks that Should Be in the News

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

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

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

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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

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

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

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

3 Top Mid-Cap Blend Mutual Funds for Strong Returns

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

Zacks.com featured highlights include V.F. Corp, Masco and Photronics

For Immediate Release

Chicago, IL – May 5, 2026 – Stocks in this week’s article are V.F. Corp. VFC, Masco Corp. MAS and Photronics, Inc. PLAB.

Buy These 3 Stocks Backed by Broker Upgrades in a Near-Record Market

U.S. equities have advanced solidly so far in 2026, with the S&P 500 up about 6% through May 1 and hovering near record highs. Gains have been led by resilient mega-cap technology and AI-related shares, improving earnings revisions and upbeat economic data. Sentiment also benefited from expectations of policy normalization and retreating bearish positioning. Nonetheless, elevated oil prices, Middle East risks, tariff uncertainty and still-high valuation multiples remain major near-term headwinds.

Against such a backdrop, it is not easy for retail investors to select stocks for generating solid returns over time. One way to cut short this task is to follow brokers’ recommendations. In this regard, stocks such as V.F. Corp., Masco Corp. and Photronics, Inc. are worth investing in.

Brokers develop their views through direct access to management, detailed analysis of public filings, and active participation in earnings calls. Their cross-sector coverage also helps place a company’s fundamentals within a broader macroeconomic and competitive framework, giving investors a clearer view of how a stock may trade and perform.

A broker upgrade is typically triggered by new information, such as revised guidance, channel checks, improving demand trends, margin recovery, or updated operating assumptions, that leads to a reassessment of earnings potential and valuation. Since these developments may not yet be fully reflected in market expectations, an upgrade can sometimes signal an emerging inflection point before it appears in consensus estimates.

That said, a broker upgrade should be viewed as one input rather than a standalone investment thesis. Long-term returns depend on a broader assessment of business quality, valuation, industry structure, catalysts and risks, along with the investor’s risk tolerance, time horizon and portfolio objectives. You can find thethe complete list of today’s Zacks #1 Rank stocks here.

3 Stocks with Upgraded Broker Ratings to Bet On

Greensboro, NC-based V.F. Corp designs, manufactures and markets branded apparel and related products. VFC markets its products through specialty stores, department stores, national chains and mass merchants, along with licensees and distributors.

V.F. Corp’s fiscal 2027 earnings are expected to rise 37.2% year over year. VFC, which currently sports a Zacks Rank #1, has witnessed an 8.7% upward revision in broker ratings over the past four weeks.

Masco, based in Taylor, MI, manufactures, sells and installs home improvement and building products. Masco operates through the following two business segments: Plumbing Products and Decorative Architectural Products.

MAS’ 2026 earnings are projected to increase 7.3% on a year-over-year basis. Masco, carrying a Zacks Rank #2 at present, has witnessed a 4.4% upward revision in broker ratings over the past four weeks.

Based in Brookfield, CT, Photronics is engaged in the manufacture and sale of photomask products and services globally. PLAB sells its products to semiconductor and FPD designers, manufacturers and foundries

Photronics’ 2026 earnings are expected to grow 16.9% year over year. PLAB, which currently carries a Zacks Rank #2, has witnessed a 25% upward revision in broker ratings over the past four weeks.

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

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

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

See Stocks Free >>

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2913527/buy-these-3-stocks-backed-by-broker-upgrades-in-a-near-record-market

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

About Screen of the Week

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

Strong Stocks that Should Be in the News

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

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

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

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

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

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

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

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

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

Zacks Investment Ideas feature highlights: Newmont, Quanta Services and Ametek

For Immediate Release

Chicago, IL – May 5, 2026 – Today, Zacks Investment Ideas feature highlights Newmont NEM, Quanta Services PWR and Ametek AME.

These 3 Companies Reported Record-Breaking Results

The 2026 Q1 earnings season is in full swing, with many notable companies still on the reporting docket in the weeks to come.

So far, several companies have posted notably strong results, including Newmont, Quanta Servicesand Ametek, which each set quarterly records in one way or another.

Quanta Services Keeps Climbing

Quanta Services yet again delivered another set of robust quarterly results, with both EPS and sales results beating Zacks Consensus Estimates. Adjusted EPS of $2.68 grew by a sizable 50% YoY and reflected a 31.4% surprise, whereas sales of $7.9 billion saw a double-digit 26.3% YoY climb. Importantly, the backlog reached a record $48.5 billion, helping underpin its broader business momentum for a long time to come.

Quanta Services raised guidance across many metrics, driven by a favorable demand environment, further adding to the positivity. The broad guidance hike is very bullish from a share momentum standpoint, a big driver behind the stock’s surge after it reported.

EPS revisions for its current and next fiscal year remain bullish.

AMETEK Reports Record Backlog

AMETEK also reported a strong set of results, with sales of $1.9 billion growing 11% YoY and adjusted EPS of $1.97 growing by 13% from the year-ago period. Both items exceeded our consensus expectations, reflecting surprises of 3.7% and 0.6% across earnings and sales, respectively.

AMETEK reported record EBITDA, with record orders growing 23% year-over-year and leading to a record backlog as well. The company also raised its current-year EPS outlook thanks to the strong demand environment, with shares seeing a nice pop on the back of the results and hovering near all-time highs.

EPS revisions for its current and next fiscal year remain bullish like PWR above.

Newmont Keeps Generating Cash

Newmont has benefited significantly from the rise in gold prices. The average gold price per oz reached $4,900 during the reported period, well above the $2,944 level in the same period last year. Free cash flow of $3.1 billion throughout the period reflected an all-time record.

Newmont’s cash-generating abilities have been a notable boost over recent periods thanks to the favorable backdrop. The amplified cash-generating abilities bring about many positives, such as buybacks, with NEM increasing its current share repurchase program following the favorable results.

The EPS outlook for its current and next fiscal year is the most bullish out of the bunch, with expectations soaring for its current and next fiscal year.

Bottom Line

The 2026 Q1 earnings cycle continues to roll along, with several companies, namely Newmont, Quanta Services and Ametek, all posting quarterly records in one way or another.

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

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

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

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

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

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

Zacks Investment Ideas feature highlights: Meta Platforms, Amazon, Alphabet, Microsoft and Nebius

For Immediate Release

Chicago, IL – May 5, 2026 – Today, Zacks Investment Ideas feature highlights Meta Platforms META, Amazon AMZN, Alphabet GOOGL, Microsoft MSFT and Nebius Group NBIS.

May Outlook: AI Fundamentals Overpower Geopolitics

Price Action vs. Geopolitical Fears

For weeks, Wall Street was obsessed with each and every headline out of the conflict in the Middle East between the United States and Iran. All it took was just one negative headline or escalation to send the Nasdaq lower by more than 1% and oil surging by more than 5%.

Currently, the strategically important Strait of Hormuz (which is vital to the energy trade) remains in a standstill due to a U.S. naval blockade, ensuring that crude oil prices remain elevated (crude oil is currently trading above $100). Until April, U.S. stocks fell whenever crude oil prices rose.

However, over the past few weeks, an important change has occurred. U.S. stocks are decoupling from oil spikes and are no longer as reactive. To savvy market watchers, this change is critical and suggests that investors are refocusing on the economy’s fundamentals (which I will discuss later) and not geopolitics. The current price action mirrors historical geopolitical events. According to the data, geopolitical shocks tend to have a short-term impact on equity markets.

AI CAPEX Spending is Snowballing

Last week marked the busiest week of earnings season and included reports from “Mag 7” tech giants such as Meta Platforms, Amazon and Alphabet. Although the initial reaction to earnings from Mag 7 stocks was mixed, capital expenditure (CAPEX) spending plans from big tech hyperscalers are far from slowing and was the true story. In fact, CAPEX spending is expected to soar from under $500 billion in 2025 to $646 billion in 2026 and a staggering $1 trillion or more in 2027!

Hyperscaler capex in 2026 will represent a staggering 2% of GDP in 2026 and is roughly the same size as the market cap of the stock markets in Belgium, Denmark, and Indonesia. In Q1, AI was already 75% of GDP growth. That trend is likely to continue. Meanwhile, hyperscaler spending is driving unfathomable demand for AI infrastructure. For instance, Microsoft recently paid ‘neocloud’ provider Nebius Group 40% of a multi-year contract upfront.

Don’t ‘Sell in May & Go Away’

Although the old Wall Street adage that warns investors to “Sell in May and go away” is catchy, historical data disproves it. According to Bluekurtic Market Insights (@Bluekurtic): “Since 1950, the S&P 500 has peaked for the year in May less than 3% of the time. Only 2 of the last 76 years saw SPX make its high in May: 1969 and 2015. Even better, the index has never peaked for the year in June either. Never.”

Bottom Line

While the headlines may remain focused on naval blockades and energy costs, the underlying market fundamentals and price action tell a far more optimistic story. The sheer scale of AI infrastructure demand- highlighted by massive upfront contracts and historic CAPEX plans- is providing a fundamental floor that geopolitics simply can’t crack.

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

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

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

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

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

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

Celestica and Ethan Allen have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – May 5, 2026 – Zacks Equity Research shares Celestica Inc. CLS as the Bull of the Day and Ethan Allen Interiors Inc. ETD as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet GOOGL, NVIDIA NVDA and Broadcom AVGO.

Here is a synopsis of all five stocks.

Bull of the Day:

Celestica Inc. is an AI data center infrastructure stock that’s projected to more than double its earnings and revenue between 2025 and 2027—after doubling both its top and bottom lines between 2021 and 2025.

The electronics manufacturing services powerhouse’s earnings outlook surged again following its Q1 2026 earnings release on April 27, extending its run of upward EPS revisions and landing Celestica its Zacks Rank #1 (Strong Buy). CLS raised its 2026 guidance as the AI spending boom heats up.

Celestica is working directly with multiple AI hyperscalers, making it a pure-play investment in the ongoing AI buildout, which will soon be measured in trillions of dollars in annual capex.

Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers, with customers flocking to its existing, market-leading 800G solutions and its next-generation 1.6T offerings, which mark double the switch capacity.

Despite soaring to new all-time highs in 2026 and crushing Nvidia and countless other AI giants over the last several years, Celestica’s earnings growth outlook makes the stock look somewhat cheap on the valuation front.

CLS stock also quickly found support at a key technical range after some post-earnings profit-taking.

Best Tech Stocks to Buy Now and Hold: Celestica

Celestica is an electronics manufacturing services standout. CLS specializes in designing, engineering, and manufacturing products for companies across AI infrastructure, cloud computing, semiconductor capital equipment, and much more.

CLS operates two reportable units: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Celestica’s services across these segments include Design and Engineering, Manufacturing Services, Logistics and Fulfillment, Precision Machining, Product Licensing Services, and beyond.

The company’s product offerings span storage, compute, networking, and software. Celestica’s AI data center-focused business is booming as demand soars across its servers and storage unit.

Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers.

Celestica expects its business to keep growing faster through the rest of 2026. The firm is ramping up production of 800G networking equipment for AI data center customers.

On top of that, CLS said it will begin building even more advanced 1.6T equipment for two AI Hyperscalers.

The firm, back in October, announced its “new family of 1.6TbE data center switches to power AI/ML clusters.”

Celestica’s newest tech represents the “doubling of switch capacity compared to Celestica’s existing, market-leading 800G solutions…” The new cutting-edge offerings provide a “comprehensive set of AI routing features and interconnect options, designed to meet the demands of AI clusters.”

The AI Tech Stock’s Soaring Earnings and Revenue Growth

Celestica, which went public in the late 1990s, supercharged its growth over the last several years as it thrives in the AI data center boom.

It averaged 22% revenue growth between FY22-FY25, more than doubling its revenue from $5.64 billion in 2021 to $12.39 billion in 2025.

The AI data center infrastructure company posted even more staggering GAAP earnings growth, skyrocketing from $0.83 a share in 2021 to $7.16 a share in 2025.

The company posted another beat and raise quarter on April 27. Celestica’s consensus FY26 earnings estimate surged 12% since then, with its FY27 estimate 14% higher, helping CLS earn its Zacks Rank #1 (Strong Buy).

Celestica’s new, higher-speed solutions are projected to drive strong growth in 2027 as it wins more business. The AI tech infrastructure firm said that its enterprise AI/ML (artificial intelligence and machine learning) compute segment is projected to “ramp through 2026,” with CLS expecting “strong momentum continuing into 2027, supported by next-generation programs.”

On the AI hyperscaler front, its strength is fueled by a strong demand outlook into 2027.

AI remains the driver of another record year of capex spending in 2026. Hyperscalers are projected to spend $600 billion to $800 billion, up from roughly $400 billion in 2025. Peaking ahead, new reports predict that AI hyperscaler capex will hit $1.1 trillion in 2027.

Celestica is projected to grow its revenue by 54% in 2026 to reach $19 billion and then post 41% sales expansion next year to hit $26.90 billion—easily doubling 2025’s $12.39 billion.

The company has also reached a profitability pivot point after a decade-plus of stagnation. Its adjusted earnings are set to soar 63% in 2026 and another 45% next year, more than doubling from $6.05 in 2025 to $14.33 in 2027.

Plus, its most accurate estimates came in above the already improved consensus to match Celestica’s own adjusted EPS (non-GAAP) guidance of $10.15 a share in 2026.

The chart above highlights Celestica’s longer-term AI-boosted earnings outlook.

Buy Soaring CLS Stock for Value and Upside

Celestica stock soared ~5,100% in the past five years, crushing the Zacks Tech sector’s 108%, its highly-ranked Electronics - Manufacturing Services industry’s 745%, and Nvidia’s (NVDA) 1,300%.

CLS has ripped 355% higher in the last 12 months, blowing away Nvidia’s 75% and Tech’s 52%.

The AI data center stock’s run snapped an extended period of underperformance that helped it skyrocket beyond its previous 2000 peaks into a new trading range.

CLS stock is trading right near its new all-time highs after it quickly found buyers at its 2025 highs following a short-lived post-earnings selloff.

Celestica’s huge earnings growth outlook helps make it look like a value play right now compared to where it’s been in recent years. This is all the more impressive since it’s trading right near its all-time highs in terms of price.

It’s trading at a 31% discount to its recent highs at 39.2X forward 12-month earnings and nearly in-line with its median.

Better still, Celestica trades at a 28% discount to the Tech sector with a price/earnings-to-growth (PEG) ratio of 0.87.

Bear of the Day:

Ethan Allen Interiors Inc. stock tanked after it reported its third-quarter fiscal 2026 financial results on April 29.

The home furnishings retailer provided disappointing earnings guidance once again, which helps it land a Zacks Rank #5 (Strong Sell). Ethan Allen Interiors stock is being hit by multiple headwinds, including broader macroeconomic uncertainty.

Why Ethan Allen Interiors Stock is a Zacks Rank #5 (Strong Sell)

Ethan Allen is a furniture powerhouse and a leading interior design company.

In its own words, ETD is a “leading interior design destination combining state-of-the-art technology with personal service.”

The company boasts that it manufactures about 75% of its custom-crafted furniture in its own North American manufacturing facilities.

ETD’s revenue and earnings have faded after a Covid-based boom. Its earnings outlook has dropped over the last several years as it deals with a challenging environment highlighted by inflation, tariffs, and Covid-era pull forward in furniture shopping, and more.

Ethan Allen provided another disappointing outlook when it reported its Q3 fiscal 2026 results on April 29. Its Q4 earnings estimate tanked 17% since then, with its FY26 consensus 5% lower and its 2027 outlook down 9%. These recent negative revisions earn the stock a Zacks Rank #5 (Strong Sell).

ETD’s most accurate estimate also came in below consensus as it struggles to navigate a tough operating environment. The firm’s Q3 results were negatively impacted by a “reduction in business with the U.S. State Department, lower international sales and sluggish demand from a challenging environment for home furnishings, which included weather disruptions and macroeconomic uncertainty.”

Ethan Allen is part of the Zacks Retail - Home Furnishings industry that ranks in the bottom 12% of over 240 Zacks industries.

It is also hard to predict when things might start to turn around significantly for Ethan Allen and the wider home furniture business. This backdrop might make investors want to stay away from ETD and the broader industry.   

Additional content:

3 Semi Stocks Poised to Gain on Google's $190B AI Buildout

The semiconductor sector has emerged as the primary engine of equity market strength in the first five months of 2026, fueled by an unrelenting surge in artificial intelligence (AI) investment from major cloud platforms. Year-to-date gains have been exceptional, with the iShares Semiconductor ETF (SOXX) rising 54.7%, underscoring the market’s conviction that semiconductors are the backbone of the global AI infrastructure build-out.

The Philadelphia Semiconductor Index reached its highest quote ever on April 24, 2026. This powerful momentum reflects sustained demand for advanced computing capabilities, validated by strong earnings across the industry.

Alphabet — the parent of Google — reported its first-quarter 2026 results and used the announcement to dramatically reaffirm its long-term commitment to AI infrastructure. The company updated its 2026 capital expenditure guidance range to $180 billion to $190 billion, up from its previous estimate of $175 billion to $185 billion. This places Google's 2026 spending plan among the largest single-year capital programs in corporate history, dedicated almost exclusively to AI-related infrastructure, including servers, data centers and networking equipment.

The company expects 2027 capex to "significantly increase" compared to 2026, signaling that Google views AI compute capacity as a structural priority extending well beyond the current cycle. The aggressive plan is supported by an extraordinary backlog. Cloud revenues soared 63% with a backlog of $460 billion, nearly double where it was last quarter, because of demand for AI infrastructure. Capital expenditure for the quarter alone hit $35.67 billion.

Google's spending is concentrated in three areas: custom Tensor Processing Units (TPUs) co-designed with U.S. semiconductor partners, third-party AI accelerators sourced from established chip vendors, and the supporting infrastructure of memory, networking silicon, advanced packaging, and rack-level hardware required to bring AI factories online at scale. This three-pronged approach creates direct revenue pathways for several U.S.-listed semiconductor companies, including NVIDIA and Broadcom that supply the silicon, manufacture the wafers, or co-design the custom accelerators powering Google's AI ambitions.

Semiconductors Lead Market Rally as AI Spending Surges

The need for high-performance AI chips has accelerated sharply, driven by hyperscalers expanding data center capacity and deploying next-generation systems at scale. However, supply constraints — particularly in advanced packaging technologies such as CoWoS offered by Taiwan Semiconductor — have introduced a critical bottleneck. Reportedly, Google scaled back its Tensor Processing Unit production targets due to these limitations, highlighting how foundry capacity has become a strategic advantage for leading players.

Collaboration across the semiconductor ecosystem has also intensified, strengthening the AI supply chain. NVIDIA continues to push innovation with its Vera Rubin platform, while Google Cloud has moved quickly to adopt next-generation systems. Meanwhile, Broadcom has emerged as a key partner in custom AI silicon, reporting strong growth in its AI chip segment and projecting substantial revenue expansion in the coming years. Its deepening partnership with Google, including long-term involvement in Tensor Processing Unit development, highlights the strategic alignment between chip designers and hyperscalers.

Further reinforcing this trend, Alphabet, Microsoft, Amazon and Meta Platforms have collectively increased capital expenditure expectations, with total projected spending approaching $725 billion. Unlike previous technology cycles, this wave of investment is increasingly supported by contracted cloud revenues, reducing uncertainty around demand.

Against this backdrop, companies closely tied to AI infrastructure remain strategically positioned to benefit from sustained AI-driven growth.

Broadcom: Powering Google’s Custom AI Silicon Expansion

Broadcom holds perhaps the most direct exposure to Google's custom-silicon strategy. This Zacks Rank #1 (Strong Buy) company is the lead design partner for Google's seventh-generation Ironwood TPU and has secured an extended partnership through 2031 covering future generations, including TPU v8t (training) and v8i (inference). Broadcom contributes its proprietary 9.6 Tbps SerDes interconnects, ASIC implementation expertise, and high-speed networking fabric.

For first-quarter fiscal 2026 ended Feb. 1, 2026, Broadcom reported revenues of $19,311 million, up 29% from the prior-year period. First-quarter AI revenues of $8.4 billion grew 106% year over year, driven by robust demand for custom AI accelerators and AI networking. Adjusted EBITDA increased 30% year over year to a record $13.1 billion, representing 68% of revenues. Second-quarter fiscal 2026 revenue guidance of approximately $22 billion implies an increase of 47% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AVGO’s fiscal 2026 earnings is pegged at $11.45 per share, up 0.8% over the past 30 days, suggesting 67.9% growth from the figure reported in fiscal 2025.

Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote

NVIDIA: Driving Google Cloud’s Next-Gen AI Infrastructure

NVIDIA remains a direct beneficiary of Google's massive AI buildout through its Blackwell and Rubin platforms now deployed across Google Cloud's global data centers. Google Cloud rolled out A4 VMs, built on NVIDIA's HGX B200 GPUs, offering developers significantly faster model training and smoother deployment, with A4X VMs based on the GB200 NVL72 and announced plans to be among the first cloud providers to deploy NVIDIA Vera Rubin NVL72 rack-scale systems in the second half of 2026.

For the fourth quarter ended Jan. 25, 2026, NVIDIA reported revenues of $68.1 billion, up 20% from the previous quarter and 73% from a year ago. For fiscal 2026, revenues were $215.9 billion, up 65% from a year ago. Fourth-quarter data center revenues reached a record $62.3 billion, up 75% year over year. This Zacks Rank #2 (Buy) company guided first-quarter fiscal 2027 revenues at $78 billion, plus or minus 2%.

The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 69.18% and 34.32%, respectively.

NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote

TSM: The Foundry Backbone of Google’s AI Chip Ecosystem

Taiwan Semiconductor, the world's largest contract chipmaker, manufactures the vast majority of advanced AI accelerators powering Google's expanding global data centers. TSM fabricates Google's TPUs as well as NVIDIA's Blackwell and forthcoming Rubin GPUs on its leading-edge nodes, making it the single most indispensable foundry layer of Google's $190 billion 2026 capex program.

For first-quarter 2026, TSM reported revenues of $35.90 billion, which increased 40.6% year over year and 6.4% from the previous quarter in U.S. dollars. Gross margin for the quarter was 66.2%, and operating margin was 58.1%. High-performance computing accounted for 61% of revenues. The company guided second-quarter 2026 revenues to be between $39 billion and $40.2 billion, implying roughly 32% year-over-year growth at the midpoint, and raised its full-year 2026 U.S.-dollar revenue growth guidance to above 30%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenues.

The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s 2026 and 2027 earnings implies a year-over-year increase of 43.1% and 24.49%, respectively.

Taiwan Semiconductor Manufacturing Company Ltd. price-consensus-chart | Taiwan Semiconductor Manufacturing Company Ltd. Quote

Conclusion

Google's $180-$190 billion 2026 capex commitment cements AI infrastructure as a multi-year structural growth engine. NVIDIA, TSM and Broadcom each occupy distinct, indispensable positions within Google's AI hardware supply chain. With contracted cloud revenues underpinning visibility, all three names appear well-positioned to capture a meaningful share of this transformational opportunity ahead.

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

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research

Bull of the Day: Celestica Inc. (CLS)

Celestica Inc. CLS is an AI data center infrastructure stock that’s projected to more than double its earnings and revenue between 2025 and 2027—after doubling both its top and bottom lines between 2021 and 2025.

The electronics manufacturing services powerhouse’s earnings outlook surged again following its Q1 2026 earnings release on April 27, extending its run of upward EPS revisions and landing Celestica its Zacks Rank #1 (Strong Buy). CLS raised its 2026 guidance as the AI spending boom heats up.

Celestica is working directly with multiple AI hyperscalers, making it a pure-play investment in the ongoing AI buildout, which will soon be measured in trillions of dollars in annual capex. 

Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers, with customers flocking to its existing, market-leading 800G solutions and its next-generation 1.6T offerings, which mark double the switch capacity.

Despite soaring to new all-time highs in 2026 and crushing Nvidia and countless other AI giants over the last several years, Celestica’s earnings growth outlook makes the stock look somewhat cheap on the valuation front. 

CLS stock also quickly found support at a key technical range after some post-earnings profit-taking.

Best Tech Stocks to Buy Now and Hold: Celestica

Celestica is an electronics manufacturing services standout. CLS specializes in designing, engineering, and manufacturing products for companies across AI infrastructure, cloud computing, semiconductor capital equipment, and much more.

CLS operates two reportable units: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Celestica’s services across these segments include Design and Engineering, Manufacturing Services, Logistics and Fulfillment, Precision Machining, Product Licensing Services, and beyond.

Image Source: Zacks Investment Research

The company’s product offerings span storage, compute, networking, and software. Celestica’s AI data center-focused business is booming as demand soars across its servers and storage unit.

Celestica is in the middle of a massive multi-year upgrade cycle for AI data centers.

Celestica expects its business to keep growing faster through the rest of 2026. The firm is ramping up production of 800G networking equipment for AI data center customers.

On top of that, CLS said it will begin building even more advanced 1.6T equipment for two AI Hyperscalers.

Image Source: Zacks Investment Research

The firm, back in October, announced its “new family of 1.6TbE data center switches to power AI/ML clusters.”

Celestica’s newest tech represents the “doubling of switch capacity compared to Celestica’s existing, market-leading 800G solutions…” The new cutting-edge offerings provide a “comprehensive set of AI routing features and interconnect options, designed to meet the demands of AI clusters.”

The AI Tech Stock’s Soaring Earnings and Revenue Growth

Celestica, which went public in the late 1990s, supercharged its growth over the last several years as it thrives in the AI data center boom.

It averaged 22% revenue growth between FY22-FY25, more than doubling its revenue from $5.64 billion in 2021 to $12.39 billion in 2025.

The AI data center infrastructure company posted even more staggering GAAP earnings growth, skyrocketing from $0.83 a share in 2021 to $7.16 a share in 2025.

Image Source: Zacks Investment Research

The company posted another beat and raise quarter on April 27. Celestica’s consensus FY26 earnings estimate surged 12% since then, with its FY27 estimate 14% higher, helping CLS earn its Zacks Rank #1 (Strong Buy).

Celestica’s new, higher-speed solutions are projected to drive strong growth in 2027 as it wins more business. The AI tech infrastructure firm said that its enterprise AI/ML (artificial intelligence and machine learning) compute segment is projected to “ramp through 2026,” with CLS expecting “strong momentum continuing into 2027, supported by next-generation programs.”

On the AI hyperscaler front, its strength is fueled by a strong demand outlook into 2027. 

AI remains the driver of another record year of capex spending in 2026. Hyperscalers are projected to spend $600 billion to $800 billion, up from roughly $400 billion in 2025. Peaking ahead, new reports predict that AI hyperscaler capex will hit $1.1 trillion in 2027.

Image Source: Zacks Investment Research

Celestica is projected to grow its revenue by 54% in 2026 to reach $19 billion and then post 41% sales expansion next year to hit $26.90 billion—easily doubling 2025’s $12.39 billion.

The company has also reached a profitability pivot point after a decade-plus of stagnation. Its adjusted earnings are set to soar 63% in 2026 and another 45% next year, more than doubling from $6.05 in 2025 to $14.33 in 2027.

Image Source: Zacks Investment Research

Plus, its most accurate estimates came in above the already improved consensus to match Celestica’s own adjusted EPS (non-GAAP) guidance of $10.15 a share in 2026.

The chart above highlights Celestica’s longer-term AI-boosted earnings outlook.

Buy Soaring CLS Stock for Value and Upside

Celestica stock soared ~5,100% in the past five years, crushing the Zacks Tech sector’s 108%, its highly-ranked Electronics - Manufacturing Services industry’s 745%, and Nvidia’s (NVDA) 1,300%.

CLS has ripped 355% higher in the last 12 months, blowing away Nvidia’s 75% and Tech’s 52%.

Image Source: Zacks Investment Research

The AI data center stock’s run snapped an extended period of underperformance that helped it skyrocket beyond its previous 2000 peaks into a new trading range.

CLS stock is trading right near its new all-time highs after it quickly found buyers at its 2025 highs following a short-lived post-earnings selloff.

Image Source: Zacks Investment Research

Celestica’s huge earnings growth outlook helps make it look like a value play right now compared to where it’s been in recent years. This is all the more impressive since it’s trading right near its all-time highs in terms of price.

It’s trading at a 31% discount to its recent highs at 39.2X forward 12-month earnings and nearly in-line with its median. 

Better still, Celestica trades at a 28% discount to the Tech sector with a price/earnings-to-growth (PEG) ratio of 0.87.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

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

Zacks Investment Research