Arista Networks and Elevance Health have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – September 17, 2025 – Zacks Equity Research shares Arista Networks ANET as the Bull of the Day and Elevance Health ELV as the Bear of the Day. In addition, Zacks Equity Research provides analysis on M&T Bank MTB, Bank OZK OZK and Texas Capital Bancshares TCBI.

Here is a synopsis of all five stocks.

Bull of the Day:

Arista Networks is an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus, and routing environments. The stock has been a big beneficiary of the AI frenzy, with analysts raising their EPS expectations bullishly across the board.

The stock is currently a Zacks Rank #1 (Strong Buy) thanks to the positive revisions.

In addition to positive revisions, the stock is also a part of the Zacks Internet – Software industry, which is currently ranked in the top 32% of all Zacks industries.

Let’s take a closer look at how the company currently stacks up.

ANET Shares Soar

ANET shares have delivered market-beating returns in 2025 so far, up nearly 30% compared to the S&P 500’s 14% gain. Robust quarterly results have helped drive the surge, with ANET regularly reporting significant growth stemming from red-hot demand.

Concerning headline figures in its latest release, sales of $2.2 billion beat our consensus sales estimate by 4%, whereas adjusted EPS of $0.73 crushed consensus expectations by more than 12%.

Sale of $2.2 billion soared 30% year-over-year, whereas adjusted EPS climbed a similarly strong 42%. Impressively, the company has exceeded both consensus EPS and sales expectations in each of its last ten periods, owing to its reliability.

In addition, the company’s efficiency can’t be overlooked, regularly seeing meaningful margin expansion over recent periods. ANET’s GAAP gross margin reached 65.2% in its latest period, up marginally from the 64.9% mark in the same period last year.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Arista Networks would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).

Bear of the Day:

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey.

Analysts have taken a bearish stance on the company’s outlook, landing the stock into a Zacks Rank #5 (Strong Sell).

Let’s take a closer look at how the company stacks up.

ELV Cuts Guidance

ELV’s latest set of quarterly results came in weak, causing shares to plunge post-earnings. The company trimmed its current year outlook, with ELV also falling short of the Zacks Consensus EPS estimate by more than 3%.

The stock has underperformed in a big way overall in 2025, losing roughly 15% compared to the S&P 500’s 14.6% gain.

Concerning the above-mentioned release, adjusted EPS fell 13% year-over-year, whereas sales of $49.4 billion grew 14% from the same period last year. Due to the ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid, ELV now expects 2025 adjusted EPS well lower than the announced (and reaffirmed) guidance range of $34.15 - $34.85 given near the beginning of June.

The steep guidance cut after a reaffirmation just near the beginning of June is certainly notable.

Bottom Line

Negative earnings estimate revisions, stemming from trimmed guidance, paint a challenging picture for the company’s shares in the near term.

Elevance Health is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.

Additional content:

Fed Set to Cut Rates: 3 Bank Stocks Stand to Benefit

The Federal Open Market Committee (FOMC) begins its two-day September meeting today amid mounting anticipation that the Federal Reserve will announce its first interest rate cut of the year as the meeting wraps up tomorrow.

After keeping rates unchanged for five straight meetings over the past nine months, market participants are widely expecting policymakers to lower the benchmark rates by 25 basis points, bringing the policy rate to 4.00-4.25%. Such a move would mark a potential pivot toward monetary easing as the Fed balances slowing economic growth and weakening labor market against lingering inflationary pressures.

This shift can be a tailwind for banks. Hence, today we bring M&T Bank, Bank OZK and Texas Capital Bancshares, which stand to benefit from a lower-rate environment. These bank stocks have gained more than 15% over the past year and carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Factors Driving Expected Rate Cut & How it May Impact Banks

The Fed is expected to cut rates as recent data indicate a weakening U.S. economy, with slower hiring and a rising unemployment rate signaling a softening labor market. Broader indicators show sluggish consumer demand and cooling business activity, pointing to slower economic growth.

Although inflation remains above the Federal Reserve’s 2% target, the uptick in unemployment is increasing pressure on policymakers to shift focus from fighting inflation toward supporting growth and financial stability.

The Fed’s rate reductions, already totaling 100 basis points in 2024, have begun to stabilize banks’ funding costs. Any further rate cut will support net interest income (NII) expansion, a critical earnings driver for banks. While lower benchmark rates can compress yields on loans and securities, the easing of funding pressures helps preserve margins.

Also, a rate cut makes refinancing more affordable, reducing the risks of defaults. This, in turn, can help banks improve credit quality and limit the need for higher loan-loss provisions. Further, relatively lower rates are expected to encourage consumers and businesses to borrow. Such increased lending activity can result in larger profitability for banks as they earn more interest on these loans.

3 Bank Stocks to Bet On

M&T Bank: The bank’s NII witnessed a compounded annual growth rate (CAGR) of 15.4% over the past four years ended 2024. Though the trend reversed in the first half of 2025, a rise in lending demand and the Fed rate cuts will support NII expansion in the upcoming period. Management projects NII (tax equivalent basis) to be $7.05-$7.15 billion, suggesting a rise from the $6.85 billion reported in 2024. The company expects the net interest margin (NIM) to be in the mid to high 3.60%.

M&T Bank’s initiatives to strengthen non-interest income will further bolster top-line growth. Non-interest income is expected between $2.5 billion and $2.6 billion, indicating a rise from the $2.4 billion reported in 2024.

Additionally, MTB’s management expects 2025 average loans and leases between $135 billion and $137 billion, while average total deposits are projected to be $162-$164 billion in 2025. Last year, total loans and leases amounted to $135.5 billion, while total deposits reached $161 billion. These favorable projections will likely support the company’s top line.

The Zacks Consensus Estimate for 2025 and 2026 earnings implies year-over-year increases of 10.9% and 13.7%, respectively. The Zacks Consensus Estimate for 2025 and 2026 sales implies year-over-year growth of 3.5% and 3.8%, respectively.

Bank OZK: Given relatively low rates, the company's NII rose in the first half of 2025 and management projects the metric to continue improving in the remaining quarters of 2025. Also, management expects NIM to stabilize over time as the cost of interest-bearing deposits (COIBD) decreases.

OZK has grown rapidly through new branches and acquisitions, seeing a 10.8% revenue CAGR from 2019 to 2024, fueled by 11.1% loan growth and higher fee income. Revenue growth is expected to continue in the quarters ahead, with plans to add 40 branches by 2026, expand mortgage banking and diversify the loan portfolio.

The Zacks Consensus Estimate for Bank OZK’s 2025 and 2026 earnings implies a year-over-year rise of 3.6% and 5.9%, respectively. The Zacks Consensus Estimate for 2025 and 2026 sales implies a year-over-year growth of 4.2% and 5.8%, respectively.

Texas Capital: The company’s NII witnessed a CAGR of 4.1% over the past three years ending 2024, with the uptrend continuing in the first half of 2025. Going forward, the expected rate cuts and improving loan demand will support its NII expansion.

Texas Capital is advancing its 2021 strategic plan to improve efficiency and diversify revenues. In 2024, the bank agreed to acquire a $400-million healthcare loan portfolio to expand its corporate banking and healthcare presence, while steadily growing its investment banking business to build consistent, recurring revenues.

The company is also rolling out technology-driven process upgrades to enhance customer experience and cut costs, and has launched Texas Capital Securities Energy Equity Research and Texas Capital Direct Lending. These initiatives are expected to lift NII and reduce non-interest expenses in 2025.

TCBI expects total adjusted revenues to witness year-over-year growth in the low-double-digit percentage in 2025.

The Zacks Consensus Estimate for 2025 and 2026 earnings implies year-over-year rallies of 39.1% and 11.4%, respectively. The Zacks Consensus Estimate for 2025 and 2026 sales suggests year-over-year improvements of 12.4% and 9.4%, respectively.

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