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Chicago, IL – August 15, 2025 – Zacks Equity Research shares nLight LASR as the Bull of the Day and Stepan SCL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Chipotle Mexican Grill CMG, El Pollo Loco Holdings, Inc. LOCO and Shake Shack Inc. SHAK.
Here is a synopsis of all five stocks:
nLight is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. The company not only has a very memorable ticker symbol, it aso provider high power semiconductor and fiber laser. The company recently posted a strong quarter and this could lead to a major breakout. Let's learn more about why this stock is the Bull of the Day.
nLIGHT, Inc. engages in the provision of semiconductor and fiber lasers for aerospace and defense, industrial, and microfabrication applications. It operates through the Laser Products and Advanced Development segments. The Laser Products segment designs, manufactures, and sells a range of semiconductor lasers and fiber lasers that are typically integrated into laser systems or manufacturing tools built by customers.
The Advanced Development segment focuses on research, design, and prototyping of next-generation laser technologies, leveraging expertise in laser technology, development, beam control, and advanced optics. The company was founded by Scott H. Keeney, Mark DeVito, and Jason Farmer in June 2000 and is headquartered in Camas, WA.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
NLighthas posted two consecutive beats of the Zacks Consensus Estimate as well as one miss and one meet. The takeaway from the earnings history is that the company has an average positive earnings surprise of 50% over the last year.
The most recent earnings print saw the company post $0.06 when the consensus was at -$0.09. That 15 cent beat translates into a positive earnings surprise of 166%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for NLight.
The full year 2025 has increased from a loss of $0.28 to a loss of $0.16 over the last 60 days.
2026 has increased from a loss of $0.21 to a loss of $0.10 over the same time period.
There is good growth projected for NLight. This fiscal year analysts are expecting $234M in revenue which would be good for 18% topline growth.
Next fiscal year, the consensus is calling for $245M and that would be good for 4.6%.
There is no forward PE for NLight is still losing money despite the surprise profitability the company posted in the most recent quarter. The price to book is low at 6.3x and that certainly has room to grow based on its peer group average. Price to sales comes in at 6.3x.
Margins have increased from -28.1% to -24.4% and most recently at -14.7% and investors are patiently awaiting those numbers to become positive. The problem is, when the operating margins do turn positive this stock is likely to be much in price.
Stepan is a Zacks Rank #5 (Strong Sell) after the company recently posted a miss and the stock has sold off as a result. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading producer of surfactants, which are the key ingredients in consumer and industrial cleaning compounds. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market and C.A.S.E. (Coatings, Adhesives, Sealants, and Elastomers) industries..
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case Stepan I see the company has beat the Zacks Consensus Estimate in two of the last four quarters that Zacks has data for and missed on two as well. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The most recent quarter saw the company report EPS of $0.52 when the consensus was calling for $0.92. That 40 cent miss translates into a negative earnings surprise of 43.5%.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For Stepan I see annual estimates for next year moving lower of late.
The current fiscal year consensus number has held still at $3.33 over the last 60 days.
The next year has moved from $4.43 to $4.01 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Chipotle Mexican Grill is betting big on menu innovation to reignite comparable sales growth after a sluggish start to 2025. In the second quarter of 2025, the company's comps fell 4% despite a 3% revenue increase, as softer consumer sentiment and heightened value-seeking behavior weighed on traffic. Management, however, sees recent product launches and marketing efforts as catalysts to regain momentum.
The standout performer has been Chipotle Honey Chicken, which appeared in one out of every four orders during its run and generated strong customer feedback. Another key addition is Adobo Ranch, the brand's first new dip in five years, which has shown early success in boosting add-on sales. These limited-time offers (LTOs) are complemented by a broader strategy to expand sides and dips, a category management views as incremental to transactions and profitability.
Chipotle's "Summer of Extras" rewards program also played a role, engaging 5 million participants and lifting frequency among lower-visit customers. The company plans to carry forward these learnings into the fall with another targeted rewards campaign, alongside additional LTOs.
Management remains confident that a higher cadence of innovation, combined with operational enhancements like new high-efficiency kitchen equipment, will help return comps to mid-single-digit growth in the near term. While macroeconomic headwinds remain, Chipotle's approach of pairing craveable new flavors with a clear value proposition could strengthen brand relevance and encourage repeat visits.
If these initiatives sustain recent transaction gains into the second half, CMG's sales trajectory could see a meaningful rebound, validating its strategy to keep the menu fresh while staying true to the core.
Chipotle's menu innovation drive unfolds in a competitive landscape where other publicly traded fast-casual players are stepping up their game. El Pollo Loco Holdings, Inc., while specializing in fire-grilled chicken, has been leaning on flavor-forward limited-time offerings and value meals to appeal to cost-conscious diners. Its focus on fresh ingredients and customizable bowls directly targets a similar health-minded demographic.
Another notable rival is Shake Shack Inc.. Though burger-focused, its frequent seasonal launches, such as limited-edition shakes and globally inspired sandwiches, mirror Chipotle's strategy of using novelty to boost traffic. The chain's loyalty initiatives and digital ordering enhancements also compete for the same convenience-seeking consumer base.
With competitors deploying aggressive promotional calendars, CMG's challenge is to ensure that its new menu items not only generate buzz but also translate into sustainable comp sales growth.
Chipotle's shares have lost 23.8% in the past six months compared with the industry's decline of 9.8%.
From a valuation standpoint, CMG trades at a forward price-to-sales ratio of 4.46X, up from the industry's average.
The Zacks Consensus Estimate for CMG's 2025 and 2026 earnings implies a year-over-year uptick of 8% and 17.5%, respectively.
Chipotle currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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