Halozyme Therapeutics and Synopsys have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – September 23, 2025 – Zacks Equity Research shares Halozyme Therapeutics HALO as the Bull of the Day and Synopsys SNPS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The TJX Companies, Inc. TJX, Ross Stores, Inc. ROST and Dollar Tree, Inc. DLTR.

Here is a synopsis of all five stocks:

Bull of the Day:

Halozyme Therapeutics is a $9 billion biotech focused on oncology and boasting sales and profit growth of 29% and 46%, respectively, while trading a sub-11x forward P/E.

HALO is focused on the development and commercialization of novel treatments for oncology indications by targeting tumor microenvironments. The company also licenses its novel drug delivery technology, ENHANZE, for subcutaneous (SC) administration of drugs.

The company's ENHANZE drug delivery technology helps in developing the SC formulation of drugs for several companies, including Roche, Takeda, J&J, AbbVie, Lilly, and Bristol-Myers.

These companies are using this technology for developing the SC formulation of their currently marketed drugs. Halozyme also recognizes revenues from the sale of drug products to its collaboration partners for the development of drugs using its ENHANZE platform.

Halozyme now has eight marketed partnered drugs based on this technology.

The HALO Opportunity

On May 28, Bristol Myers Squibb (BMY) and Halozyme announced that the European Commission approved a subcutaneous formulation of Opdivo for treating multiple adult solid tumors.

The decision makes Opdivo the first PD-1 inhibitor cleared for subcutaneous use in the EU, the companies said.

Bristol Myers said approval was based on phase 3 data showing noninferior pharmacokinetics and comparable efficacy and safety versus the intravenous formulation.

This news struck me as confirmation of the strong growth story in Halozyme and I bought shares for my Healthcare Innovators portfolio. I told my members, "Start a position here at $55 and look to add on dips under $50."

We never got another dip under $50, but we had about a month to buy down to $51 before the stock took off and made new all-time highs yesterday above $79.

We'll look at the rising estimates for HALO after we review the curious tale of an inefficient market that handed us this gift in May.

Why Did HALO Drop 25% on May 13? 

Morgan Stanley downgraded HALO's rating to "equal-weight" from "overweight" and cut their PT to $62 from $73. Here are the bullets from their May note, courtesy of Dow-Jones...

>The U.S. Centers for Medicare and Medicaid Services (CMS) draft may impact HALO's drug pricing, posing a headwind for hyaluronidase products, brokerage Morgan Stanley says

>CMS said on Monday it would announce a list of 15 drugs eligible for a third round of Medicare price negotiations by early February next year

>HALO utilizes hyaluronidase enzymes to develop injectable versions of various drugs

>MS says the draft guidance could sway industry incentives and pose a meaningful headwind for hyaluronidase combination products for HALO

Buying the Value as Risk Gets Discounted

Here's what I told my Healthcare Innovators members on May 28 when we dove in with the stock trading under 10 times earnings...

In the last two weeks since the Morgan Stanley bomb, estimates have only gone up, making HALO a Zacks #1 Rank again.

HALO presents a compelling investment case as a leading innovator in enzyme-based drug delivery solutions, notably through its proprietary recombinant human hyaluronidase (rHuPH20) technology. This platform enables subcutaneous administration of biologics, broadening patient access and driving multiple high-value partnerships with major pharmaceutical companies.

Halozyme's technology underpins several blockbuster products, including Darzalex SC, Phesgo, and VYVGART Hytrulo, with new launches like Ocrevus Zunovo and Tecentriq Hybreza expanding its reach.

Financially, Halozyme's performance is robust, reporting a 35% year-over-year revenue increase to $265 million in Q1 2025, with royalty revenues up 39% and net income margins exceeding 43%. The company's return on equity is exceptionally high, surpassing 150%, and it maintains strong free cash flow and liquidity, supporting a $250 million share repurchase program.

Analysts forecast continued growth, citing 11 new catalysts in approvals and indications, and the company recently raised its 2025 financial guidance.

While shares have faced volatility due to regulatory headwinds, Halozyme's diversified portfolio, strategic partnerships, and strong execution position it as a resilient technology platform for big pharma.

Where is HALO Now?

On August 5, Halozyme delivered a strong June quarter report with a 25% earnings beat and shares gapped above $60. On August 19, I told members "Halozyme continues to impress with a post-earnings ramp above $70 even with today's broad market selling. Morgan Stanley raised their PT this week to $80 from $75."

In the past two months, analysts have taken this year's EPS consensus up 12.8% from $5.48 to $6.18. And next year's profit projection, among five analysts, jumped 17.7% from $6.43 to $7.57.

This likely means the Morgan Stanley CMS fears have been fully allayed.

The average analyst price target for HALO, according to Zacks data from 9 analysts, is around $70, with a low of $51 and a high of $91.

This tells you a lot about analyst targets, when the regulatory narrative can shift and new company partnerships can surface at any time.

And the smart money bailed on the stock too in the June quarter with big sellers overpowering big buyers by a net 4.3 million shares. It would seem that many who left shares behind in the $50s back then were doing some backflips to get back in during the September quarter.

Bottom line: HALO might have more surprises in store, including another big earnings beat, by the time the company delivers their next report card in a month or so.

Bear of the Day:

Synopsys is one among two leading companies in the field of Electronic Design Automation (EDA).

Its partner in the "duopoly" is Cadence Design Systems. And both have traded at high valuations thanks to their essential work in helping semiconductor companies like NVIDIA design their chips.

But that lofty valuation came back to bite Synopsys two weeks ago when the company delivered a "miss-and-lower" quarter instead of the "beat-and-raise" music investors want to hear.

The company reported non-GAAP earnings of $3.39 per share for their Q3 of the 2025 fiscal year (ends October), missing the Zacks Consensus Estimate of $3.84 and the guided range of $3.82-$3.87. The bottom line missed consensus by nearly 12% and decreased 1.2% on a year-over-year basis.

Synopsys Q3 revenues were still able to rise 14% year over year to $1.74 billion, but they also missed the Zacks Consensus Estimate of $1.768 billion. The top line was primarily driven by an increase in revenues of Time-Based Product and Upfront Product businesses.

SNPS shares dropped nearly 36% on September 10, from $600 to $380. They have since bounced back above $500 as analysts re-work their models and try not to price-in disaster -- and since the duopoly for semi design is still in strong demand.

But the Guide...

For the current Q4 of FY'25, Synopsys expects earnings per share of $2.78 at the midpoint, a 40% haircut from the analyst consensus before the bad news.

This bite out of the FY25 EPS outlook, takes the full year down 15% from $15.09 to $12.83, representing an annual profit drop of 2.8%.

SNPS management mainly flagged China export restrictions and bumpy sales to Intel as their primary fault lines. Here was a good summary of the situation from MarketBeat...

However, there is reason to believe that the company's business in China can recover. Synopsys completed its acquisition of Ansys only after the Chinese government approved it. This shows that China wants to work with, rather than against, Synopsys, giving the firm a good chance to continue growing its revenue there.

The company's business with Intel is more concerning, considering the persistently weak performance of its foundry. However, Synopsys says it has now de-risked its Design IP forecasts, both for next quarter and fiscal 2026. This provides an opportunity for the segment to surprise to the upside.

Reflecting analyst caution about FY'26, we can also see on the Zacks Detailed Estimates page that the EPS consensus for next year was taken down 15.5% from $16.71 to $14.11.

This will all keep SNPS in the dungeon of the Zacks Rank for sometime until visibility (and morale) improves.

What's interesting to me is the buying enthusiasm that came back into SNPS shares since last Thursday after the big NVIDIA/Intel partnership news. Since then, shares have surged back nearly 20% from $425.

Bottom line: There will be a time to buy SNPS again on dips below $500 as the estimate picture turns back up. The Zacks Rank will let you know.

Additional content:

Will TJX's Marketing Campaigns Boost Holiday Shopping Strength?

The TJX Companies, Inc. reinforces its position as a key value retailer by delivering a strong proposition and offering a compelling mix of brand, fashion, quality and price in its global markets. The company's marketing campaigns are expected to play a pivotal role in driving higher shopper traffic and sales in the forthcoming holiday season.

On its recent earnings call, management highlighted that the company will undertake exciting marketing campaigns to further solidify its value leadership. The TJX Companies intends to leverage a wider variety of media channels to reach a broader customer base. Such campaigns will not only increase new shoppers' visits but will also encourage cross-shopping of TJX's retail banners. TJX's off-price model, which offers shoppers fresh, branded merchandise at unbeatable prices, is a strength that resonates strongly in inflationary times.

The TJX Companies' marketing approach is well-balanced across different age and income groups, aligning closely with the U.S. population. The company strongly emphasizes the acquisition of younger customers. TJX's marketing strategy emphasizes multi-channel engagement, spanning traditional advertising, social media and influencer partnerships, to have a wider consumer reach.

Solid marketing campaigns, along with The TJX Companies' focus on delivering an exceptional shopping experience and unmatched value to customers, have been working well. Flexibility across buying, store formats, systems and supply chain helps the company efficiently merchandise stores with a dynamic mix of curated products across diverse price points. The aforementioned endeavors are likely to help the retailer capture both loyal and new shoppers during the busy holiday season.

The TJX Companies' Competition

Ross Stores, Inc. and Dollar Tree, Inc. are the companies competing with TJX.

Ross Stores' marketing efforts emphasize its off-price model and consistent value through digital channels, traditional advertising and store expansion to reinforce its position as a leading off-price retailer. By combining traditional advertising with targeted promotions and a growing loyalty program, Ross Stores aims to attract and retain a diverse customer base seeking high-quality merchandise at affordable prices. ROST continues to draw value-conscious shoppers with competitive bargains and micro-merchandising that optimize product allocation and margins.

Dollar Tree's marketing campaigns focus on value, assortment and treasure hunt excitement to drive store traffic and aid overall growth. DLTR utilizes modern digital capabilities, social influencers, brand building and digital ads while creating a seamless web and app customer experience. Dollar Tree is encouraged by the robust sales trends on the value proposition and multi-price efforts.

TJX's Price Performance, Valuation and Estimates

Shares of The TJX Companies have gained 15.7% year to date compared with the industry's growth of 3.8%.

From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.7X compared with the industry's average of 30.14X.

The Zacks Consensus Estimate for TJX's fiscal 2026 and fiscal 2027 earnings implies a year-over-year growth of 7.5% and 10%, respectively. The company's EPS estimate for fiscal 2026 and fiscal 2027 has moved north in the past 30 days.

The TJX Companies stock currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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