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Chicago, IL – September 2, 2025 – Zacks Equity Research shares Arlo Technologies ARLO as the Bull of the Day and Krispy Kreme DNUT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Greenbrier Companies, Inc. GBX, Ryder Corp. R and Air Lease Corp. AL.
Here is a synopsis of all five stocks.
Sometimes Wall Street gets so wrapped up in chasing the biggest names in tech that it forgets about the companies quietly carving out their own corner of growth. Everybody spends so much time focused on the likes of NVDA and other AI names they forget about the slow and steady growth names out there. One of those names is today’s Bull of the Day, Arlo Technologies.
Arlo Technologies is the smart home security company that has gone from a niche player to a serious contender in connected devices. With a Zacks Rank #1 (Strong Buy) and bullish earnings estimate revisions flowing in, Arlo is showing investors why it deserves a closer look.
Arlo’s bread and butter is its lineup of connected security cameras, video doorbells, floodlights, and subscription services that turn hardware sales into recurring, high-margin revenue streams. The company’s latest earnings report highlighted revenue growth north of expectations, driven by strong adoption of its subscription platform. Analysts have taken notice. Over the last 30 days, upward revisions have pushed the Zacks Consensus Estimate for next year from 73 cents to 78 cents. That means that this year’s 57.5% earnings growth is forecast to swell another 24.87% next year.
The secular tailwinds are also undeniable. Consumers are spending more on home security and smart devices as part of the broader “connected lifestyle” trend. That means Arlo isn’t just selling a camera, it’s tapping into an ecosystem that blends AI-powered detection, cloud services, and ease of use. With gross margins expanding as the subscription side of the business scales, Arlo’s financial profile is becoming more attractive with each quarter.
Arlo Technologies, Inc. price-consensus-chart | Arlo Technologies, Inc. Quote
Sure, the mega-cap tech darlings grab the headlines, but sometimes the most compelling opportunities are hiding in plain sight. Arlo may not be a trillion-dollar behemoth, but it’s got the growth trajectory, industry positioning, and analyst backing that make it today’s Bull of the Day.
Nothing hurts quite like biting into a hot glazed donut only to find out the sugar rush doesn’t last. That’s exactly how investors in Krispy Kreme are feeling these days. The iconic donut maker may have brand recognition that rivals Coke or McDonald’s, but Wall Street cares about earnings trends, and right now, the frosting is starting to melt. Looking at the numbers, this one deserves a highlight as today’s Bear of the Day.
For the uninitiated, Krispy Kreme offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and digital channels. It also operates Krispy Kreme company-owned shops and franchise shops.
Over the last couple of months, analysts have been dialing back expectations for Krispy Kreme’s bottom line. In fact, the Zacks Consensus Estimate for the current year has slipped notably, coming from an expected loss of 16 cents to 27 cents. That helped push the stock down to a Zacks Rank #5 (Strong Sell). That’s never a good sign. The culprit? Rising costs and margin pressure. While revenue has shown decent growth thanks to store expansion and “hubs with spokes” distribution, labor inflation, higher commodity prices, and international weakness have eaten into profitability. Last quarter’s EPS missed the mark, highlighting just how thin margins have become.
Krispy Kreme, Inc. price-consensus-chart | Krispy Kreme, Inc. Quote
On the surface, donuts are a simple business with inputs of flour, sugar, oil, and glaze. But in this inflationary environment, those inputs aren’t so sweet. Pair that with a debt load from re-IPO expansion plans and you’ve got a company working hard just to tread water. Even though management has leaned on price increases and co-branded deals with big-box retailers, it hasn’t been enough to keep earnings estimates from drifting lower.
Things are looking up for next year, with estimates now calling for the loss to narrow to 7 cents. The Consumer Products – Staples industry is in the Bottom 27% of our Zacks Industry Rank.
The Zacks Transportation - Equipment and Leasing industry is currently navigating a challenging macroeconomic environment. The industry grapples with challenges due to persistent inflation, tariff-related tensions and lingering supply-chain disruptions. Geopolitical woes represent further challenges.
Partly due to these headwinds, the industry has underperformed the Zacks S&P 500 Composite and the broader Zacks Transportation sector over the past three months. Over this period, the industry has gained 1.8% compared with the S&P 500 Index’s northward movement of 10.1%. The broader sector has increased 3.3%.
Despite the challenging macroeconomic conditions, industry players such as The Greenbrier Companies, Inc., Ryder Corp. and Air Lease Corp. stand out for their solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility, as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
Investing in dividend stocks is a prudent strategy that offers a dual advantage — steady income and a cushion against market volatility. It's no wonder investors actively seek companies with a consistent and growing dividend history. These stocks provide a reliable income stream, acting as a buffer during market downturns and contributing to overall portfolio stability.
To guide investors interested in the railroad industry, we came up with certain parameters using the Zacks Stocks Screener. We shortlisted transportation stocks based on the following:
a) A dividend payout ratio of less than 60% (the dividend payout ratio — dividends paid/net income — gives the proportion of earnings paid out as dividends to shareholders. A payout ratio below 60 looks quite sustainable).
b) A dividend yield of greater than 1% (dividend yield denotes the percentage of a company’s share price that it shells out as dividends annually).
The selected stocks have exhibited dividend growth in the past five years, apart from currently carrying a Zacks Rank #3 (Hold) or better.
Greenbrier: Headquartered in Lake Oswego, OR, Greenbrier designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. Currently, GBX has a market capitalization of $1.50 billion.
Greenbrier pays out a quarterly dividend of 32 cents ($1.28 annualized) per share, which gives it a 2.72% yield at the current stock price. This company’s payout ratio is 18%, with a five-year dividend growth rate of 3.47%. (Check Greenbrier’s dividend history here).
Greenbrier Companies, Inc. (The) dividend-yield-ttm | Greenbrier Companies, Inc. (The) Quote
Greenbrier presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Greenbrier’s consistent efforts to reward its shareholders through dividends and share repurchases look encouraging. In 2022, Greenbrier paid dividends of $35.8 million (but did not repurchase any shares). In 2023, Greenbrier paid dividends of $36.1 million and repurchased shares worth $56.9 million. In 2024, Greenbrier paid dividends of $38.4 million and repurchased shares worth $1.3 million. During the first nine months of 2025, Greenbrier rewarded its shareholders through dividends of $29.7 million and repurchased shares worth $21.8 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Ryder: Headquartered in Coral Gables, FL, Ryder operates as a logistics and transportation company worldwide. Currently, R has a market capitalization of $7.64 billion.
Ryder pays out a quarterly dividend of 91 cents ($3.64 annualized) per share, which gives it a 1.94% yield at the current stock price. This company’s payout ratio is 26%, with a five-year dividend growth rate of 9.47%. (Check Ryder’s dividend history here). Ryder presently carries a Zacks Rank #3 (Hold).
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
We are impressed with Ryder’s consistent efforts to reward its shareholders through dividends and share repurchases. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. In 2024, Ryder returned $456 million in cash to shareholders through share repurchases and dividends. During the first half of 2025, Ryder paid dividends of $71 million and repurchased shares worth $261 million. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
Air Lease: Headquartered in Los Angeles, CA, Air Lease operates as an aircraft leasing company engaged in purchasing and leasing commercial jet aircraft to airlines worldwide. With a globally diversified customer base of 116 airlines in 58 different countries, more than 95% of AL’s business revenues originate from airlines located outside of the United States. Steady growth in the fleet, profits earned from aircraft sales and higher end-of-lease revenues contribute to AL's top-line growth. Currently, AL has a market capitalization of $6.76 billion.
AL pays out a quarterly dividend of 22 cents (88 cents annualized) per share, which gives it a 1.45% yield at the current stock price. This company’s payout ratio is 17%, with a five-year dividend growth rate of 8.34%. (Check Air Lease’s dividend history here). Air Lease presently carries a Zacks Rank #3.
Air Lease Corporation dividend-yield-ttm | Air Lease Corporation Quote
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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.
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This article originally published on Zacks Investment Research (zacks.com).
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