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Chicago, IL – August 26, 2025 – Zacks Equity Research shares High Tide HITI as the Bull of the Day and LaZBoy LZB asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA.
Here is a synopsis of all three stocks:
High Tide is a Zacks Rank #2 (Buy) that has an A for Value and an A for Growth. The company is in the marijuana space and there is a lot of talk about marijuana being rescheduled in order to ease restrictions for research. The company is slated to report again on September 15 and the stock is breaking out to new 52 week highs. Let's learn more about why this stock is the Bull of the Day.
High Tide, Inc. is a retail-focused cannabis company, which engages in the manufacture and distribution of consumption accessories. It operates through the following segments: Retail, Wholesale, and Corporate. Its brands are Canna Cabana, Fastendr, Grasscity, Smoke Cartel, Daily High Club, DankStop, NuLeaf Naturals, FAB CBD, Blessed CBD, Valiant Distribution, and Famous Brandz. The company was founded by Harkirat Grover in 2009 and is headquartered in Calgary, Canada.
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.
High Tide has posted tthree consecutive misses of the Zacks Consensus Estimate as well as one beat. The takeaway from the earnings history is that the company has posted two misses of one cent, and a beat and miss of 3 cents.
The most recent earnings print saw the company post -$0.03 when the consensus was at -$0.02. That one cent miss translates into a positive earnings surprise of 50%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for High Tide.
The full year 2025 has increased from a loss of $0.05 to a loss of $0.04 over the last 60 days.
2026 has increased from a gain of $0.06 to a gain of $0.11 over the same time period.
There is good growth projected for High Tide. This fiscal year analysts are expecting $421M in revenue which would be good for 10.7% topline growth.
Next fiscal year, the consensus is calling for $548M and that would be good for 29.9% sales growth.
There is no forward PE for High Tide but if we extend the time horizon out to the end of next fiscal year when we do have earnings the multiple works out to be 31x. The price to book is low at 2.9x and that certainly has room to grow based on its peer group average. Price to sales comes in at 0.74x.
LaZBoy 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.
La-Z-Boy, Inc. engages in the production, manufacturing, and distribution of residential furniture. It operates through the following business segments: Wholesale, Retail, and Corporate and Other. The Wholesale segment manufactures and imports upholstered furniture, such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas, and imports case goods furniture, such as occasional pieces, bedroom sets, dining room sets, and entertainment centers.
The Retail segment sells upholstered furniture, in addition to some case goods and other accessories to the end consumer through its company-owned La-Z-Boy Furniture Galleries stores. The Corporate and Other segment includes the shared costs for corporate functions, including human resources, information technology, finance, and legal. The company was founded by Edwards M. Knabusch and Edwin J. Shoemaker in 1927 and is headquartered in Monroe, MI.
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 LaZBoy I see the company has beat the Zacks Consensus Estimate in two of the last four quarters 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 $0.47 when the consensus was calling for $0.53. That 6 cent miss translates into a negative earnings surprise of 11.3%.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For LaZBoy I see annual estimates for next year moving lower of late.
The current fiscal year consensus number has slid from $3.20 to $2.86 over the last 60 days.
The next fiscal year has moved from $3.44 to $2.75 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).
The 2025 Q2 earnings cycle is slowly winding down, which has been resilient. A higher-than-average number of companies have exceeded both EPS and sales expectations, with growth also remaining solid.
And looming large this week is beloved NVIDIA, whose release is likely the most anticipated of the cycle. The tech titan's release will be scrutinized heavily given its critical role in the AI ecosystem, with the results set to ripple across the entire market.
Importantly, the release will conclude the reporting period for the Mag 7 group, whose broader results have again shown significant growth. But what can investors expect from NVIDIA? Let's take a closer look at expectations and a few key metrics.
Data Center sales of $39.1 billion throughout NVIDIA's latest period reflected a 73% increase from the $22.5 billion mark in the same period last year, continuing its recent streak of outsized growth.
The Zacks Consensus estimate for Data Center sales stands firm at $40.9 billion, reflecting 55% growth from the year-ago figure of $26.3 billion.
The company's Gaming results, although now a much smaller part of its business, are also worth investors' attention due to its dominant position in the gaming industry. Its cutting-edge Gaming GPUs are also getting a boost thanks to its advancements in AI capabilities, a key aspect to keep in mind as we increasingly wade into the AI era.
Our consensus estimate for Gaming sales stands at $3.8 billion, 35% higher than the year-ago figure of $2.9 billion. While the smallest, NVIDIA's Automotive business has become its fastest-growing segment, posting 72% year-over-year sales growth throughout its latest period. Our consensus estimate for Automotive revenue stands at $573 million, good enough for a 65% climb from the year-ago period.
Despite not currently being a significant contributor, the long-term outlook for the Automotive segment remains notably bright, reflecting another potential future growth engine for NVIDIA.
Both EPS and sales revisions have been stable over recent months, with the current $0.94 Zacks Consensus EPS estimate up just a few pennies since the beginning of June but suggesting 47% YoY growth. Expected sales of $46.0 billion reflect 55% YoY growth, with the estimated figure also up marginally across the same timeframe.
The stability of the revision trends is a positive takeaway, especially following the release of results from other AI-related companies throughout the Q2 cycle.
NVIDIA's long-awaited Q2 release is nearly here, undoubtedly reflecting one of the most important of the cycle. EPS and sales expectations have largely remained stable, with the company again expected to post strong growth across key segments.
While Data Center results will be the big focus, its Gaming and Automotive results also deserve some attention as well, with the Automotive outlook notably bright. Its dominant stance among gamers also bodes favorably for the long-term outlook for its Gaming segment, with its dominance likely to be unrivaled for years.
Guidance will be critical regarding the post-earnings reaction, especially following recent talks of a 'bubble' within the AI trade. The stock's 35% YTD gain heavily outpaces the S&P 500's 10% charge higher.
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This article originally published on Zacks Investment Research (zacks.com).
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