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Chicago, IL – July 15, 2025 – Zacks Equity Research shares Canada Goose GOOS as the Bull of the Day and Avis Budget Group CAR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sterling Infrastructure STRL, AECOM ACM and Fluor Corp. FLR.
Here is a synopsis of all five stocks:
Canada Goose is a Zacks Rank #1 (Strong Buy) that is a global leader in outerwear and performance luxury apparel. Best known for its cold-weather jackets as well as its premium outerwear, footwear, and accessories for men, women, and children.
The stock has doubled since its April lows and investors are now asking if it is time for profits or if the stock is just beginning its bull run.
Canada Goose offers a wide range of high-quality products across multiple categories, including outerwear like down jackets, wind wear, fleece, vests, and performance parkas. The company has expanded into apparel with knitwear, sweats, t-shirts, and leisurewear, and sells footwear and accessories such as sneakers, boots, hats, scarves, gloves, socks, bags, hood trims, and eyewear.
Canada Goose markets its offerings under three brands: its flagship Canada Goose label, the Snow Goose line, and Baffin, which focuses on footwear and cold-weather accessories.
Canada Goose sells its products in 36 countries through direct-to-consumer, wholesale, and other channels. Its DTC segment, which includes e-commerce and branded stores, is a key driver of growth and margins. The company has a strong global presence across North America, Greater China, Asia Pacific, and EMEA.
GOOS is valued at $1.3 billion and has a Forward PE of 16. The stock has Zacks Style Scores of "A" in Growth and Value, but "F" in Momentum.
On May 21st the company posted a 44% EPS, making it the fifth straight quarter surprising to the upside. The company reported earnings per share of C$0.33, well ahead of the C$0.22 consensus estimate. Revenue came in at C$384.6 million, beating forecasts of C$366.9 million, driven largely by strength in its direct-to-consumer (DTC) channel.
Adjusted EBIT reached C$59.7 million, up from C$40.1 million a year ago, while gross margin expanded to 71.3% from 66.7%. CEO Dani Reiss credited the performance to compelling storytelling, strong execution in retail, and growing traction from its Snow Goose capsule line.
Despite the strong quarter, Canada Goose chose not to issue financial guidance for fiscal 2026, citing macroeconomic uncertainty and evolving global trade dynamics.
Still, management outlined several key growth priorities, including increased marketing investment to build brand awareness, product innovation to drive year-round relevance, and store expansion to enhance customer engagement. The company also emphasized operational agility, with a focus on improving production planning and supply chain responsiveness.
Looking at earnings estimates, we have short term weakness followed by strength.
For both current and next quarters, analysts have taken their numbers down slightly. But looking at the current year, estimates have gone from $0.86 to $0.88, or 2%.
For next year, estimates have seen a big move higher over the last 60 days. Analysts now see $1.04 vs the $0.89, a jump of 17%.
Last week, Barclays upgraded GOOS to Equal Weight from Underweight, raising its price target to $14 from $11, citing a more balanced risk-reward profile. The firm acknowledged the company's improved margin structure, operational discipline, and early signs of brand momentum as reasons to take a more neutral stance.
The stock has doubled off the April lows, so many investors do not want to chase. However, this was a $40-50 stock in 2021, so there could be some more upside if the earnings momentum continues.
After this big run, any pullback should be considered, but let us look at some technical levels that could be solid entry points.
21-day moving average: $12
50-day MA: $10.90
200-day MA: $10.10
Looking at Fibonacci support levels the halfway back mark is $10.55 and the 61.8% Fibonacci retracement is $9.70. The sweet spot on any market sell off would be between that $9.70 level and $11.
In conclusion, Canada Goose is showing clear signs of a turnaround, with strong earnings, improving margins, and renewed investor confidence helping to fuel a sharp rebound in the stock.
While shares have already doubled off the April lows, the long-term setup remains compelling, especially with management leaning into brand investment, product expansion, and operational execution. Near-term volatility or pullbacks could offer more attractive entry points, particularly around key technical support zones.
Avis Budget Group is a Zacks Rank #5 (Strong Sell) that is a global leader in vehicle rentals and mobility solutions, operating a fleet of nearly 700,000 vehicles.
The stock has had a monster move since March, but investors might want to take some profits before the upcoming earnings report.
Founded in 1946 and headquartered in Parsippany, the company provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers.
The company manages several well-known brands, including Avis, which focuses on premium rentals; Budget, which serves more value-conscious customers; and Zipcar, a self-service car-sharing platform.
Avis Budget generates most of its revenue from renting cars and trucks, charging customers for time and mileage, and offering additional products like loss damage waivers and insurance
The stock holds Zacks Style Scores of "B" in Value. The company has a market cap of $7B and pays no dividend.
Since the March low, the stock is trading over 200% higher, moving from the $60 level to $190. Some reasons for the bullishness include a tight used car market, solid travel demand and share buybacks. However, the reasoning for the latest surge was news that Pentwater Capital now owns 19% of the company.
This news helped fuel a short squeeze that is still ongoing.
While the move higher in shares is welcomed, the question investors should ask is if it's justified.
Avis Budget reported earnings in early May, posting a 150% EPS mis. This was the fourth miss over the last five quarters, one that came with revenues at $2.43 billion v the $2.52 billion expected. EBITDA swung to a loss of $93 million compared to a $311 million gain a year ago.
In the Americas, revenue declined 4% year over year to $1.91 billion, with rental revenue per day down 3% and per-unit fleet costs up 16%. International trends were similar on pricing, but fleet costs improved 3%. Total rental days reached 39.45 million for the quarter.
Management highlighted progress on fleet rotation, noting a record number of vehicles sold, which is expected to improve vehicle costs sooner than anticipated. They added that advanced reservations are trending positively and that the company remains flexible in managing its fleet in response to shifting demand.
Looking at earnings estimates, analysts have dropped their numbers across all time frames.
Analysts have dropped numbers for the current quarter from $2.64 to $2.02 over the last 90 days. That is a fall of 31%, which is outdone by the current year drop of 69%. Over the last 90 days, those numbers have been lowered to $2.69 from $8.61.
The stock has taken off despite missing earnings and estimates falling. For now, the fundamentals don't matter, but that could change quickly.
Looking at the charts we see big resistance in the $200-240 area, so the risk reward for those on the long-side might favor exiting the stock.
The $240 level was the selling point from 2022 into 2024 and now the stock is approaching the Q4 2023 highs. A pullback is likely soon and investors interested might want to hold off until the 21-day MA (currently $160) comes into play.
Avis Budget Group's recent rally has been impressive, but this has been driven largely by a short squeeze, strong buyback activity, and a tight used car market.
The fundamentals paint a more cautious picture and if the company continues to miss on EPS and see analysts dropping estimates, the stock will hit a bump in the road.
As one of the top performers in the industrial products sector, Sterling Infrastructure stock has continued to hit new all-time highs over the past few trading sessions.
While several positive catalysts are lifting Sterling Infrastructure stock, it's certainly a worthy topic of whether it's time to buy, hold, or take profits in STRL at over $240 a share.
To that point, STRL has spiked nearly +100% over the last year, up more than +40% year to date, and is now sitting on gains of nearly +2,400% in the last five years.
Focusing its concentration outside of traditional physical infrastructure projects, Sterling Infrastructure announced in June that it will be acquiring CEC Facilities Group, expanding its reach into mission-critical electrical contracting for semiconductors and data centers.
Pending regulatory approval, the $505 million acquisition of CEC will close during Q3 and is expected to add nearly $400 million to Sterling Infrastructure's top line this year alone and over $50 million in EBITDA. Benefitting from the AI boom and making the CEC acquisition extremely lucrative, Sterling Infrastructure has secured several AI-related projects, including one with a reward of $100 million for a massive data center development in the Southeastern United States.
Further amplifying the surge in Sterling Infrastructure stock has been the company's focus on high-margin projects such as its AI endeavors and the Hyundai Engineering America facility in Georgia, which is aimed at boosting EV and hybrid car production. Avoiding low-margin work, Sterling Infrastructure is known for its on-time deliveries, prioritizing complex projects where speed and execution are critical to its clients' needs.
Interestingly enough, Sterling Infrastructure was chosen as my Bull of the Day in early April after securing interstate roadway projects with the Utah and Colorado Departments of Transportation. Since then, STRL has soared over +100% and has added a major highway project in Houston as well. Sterling Infrastructure's total backlog currently stands at around $2 billion, adding a solid cushion for future revenue.
Following a record year, Sterling Infrastructure's total sales are expected to dip 1% in fiscal 2025 to $2.09 billion. However, FY26 sales are projected to rebound and rise 8% to a new peak of $2.26 billion.
More intriguing, Sterling Infrastructure's bottom line is slated to expand 41% in FY25 to new peaks of $8.61 per share from record EPS of $6.10 last year. Plus, FY26 EPS is projected to spike another 10% to $9.48.
At current levels, Sterling Infrastructure stock trades at 28.1X forward earnings. This is a slight premium to the benchmark S&P 500's 24.2X forward earnings multiple and its Zacks Engineering-R and D Services Industry Average of 22.7X, with some noteworthy peers being AECOM and Fluor Corp..
After such an extensive rally, Sterling Infrastructure stock lands a Zacks Rank #3 (Hold). Undoubtedly, Sterling Infrastructure has remained a staple in advancing America's Infrastructure and is still worth holding in the portfolio, although it's tempting to take profits with STRL at all-time highs.
However, it's noteworthy that analysts have become bullish following the announcement of the CEC acquisition, and Sterling Infrastructure stock may eventually serve as a prime buy-the-dip target, which previously led to STRL being my selection for the Bull of the Day.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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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/performancefor information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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