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New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves
Chicago, IL – October 1, 2025 – Zacks Equity Research shares PDD Holdings PDD as the Bull of the Day and Cracker Barrel Old Country Store CBRL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Williams Companies WMB, Expand Energy Corp. EXE and Coterra Energy CTRA.
Here is a synopsis of all five stocks.
PDD Holdings is a multinational commerce group that owns and operates a portfolio of businesses. The company aims to bring more people into the digital economy so that local communities and small businesses can benefit from increased productivity and new opportunities.
This e-commerce stock is displaying relative strength, widely outperforming the general market off the April lows. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
A Zacks Rank #1 (Strong Buy), PDD Holdings is part of the Zacks Internet - Commerce industry group, which currently ranks in the top 16% out of approximately 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
PDD operates Pinduoduo, an e-commerce platform which offers products in various categories such as agricultural produce, apparel, food and beverage, furniture and household goods, cosmetics, fitness items, and auto accessories.
PDD also conducts business under cross-border platform Temu, its international e-commerce arm that enables merchants to streamline their manufacturing and commercial operations. Temu is seen as a possible contender to Amazon in the United States.
PDD Holdings (PDD) has established a healthy track record of beating earnings estimates. The company exceeded the EPS mark in two of the past three quarters. Back in August, PDD reported second-quarter earnings of $3.08 per share, which marked a 61.3% surprise over the $1.91/share consensus estimate.
The leading e-commerce player delivered a 6.4% average earnings surprise over the last four quarters. Consistently beating earnings estimates is a recipe for success.
Analysts covering PDD are mainly in agreement and have been raising earnings estimates lately. Looking ahead to next year, EPS estimates have been increased by +7.01% in the past 60 days. The fiscal 2026 Zacks Consensus Estimate now stands at $12.06/share, reflecting potential growth of over 25% relative to this year. Revenues for the full year are projected to climb nearly 16% to $69.15 billion.
This market leader has seen its stock advance about 50% off the April lows. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
The stock has been making a series of higher highs and recently hit a year-to-date high. With both strong fundamental and technical indicators, PDD stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, PDD Holdings has recently witnessed positive revisions. As long as this trend remains intact (and PDD continues to deliver earnings beats), the stock will likely continue its bullish run.
We are beginning to see signs of emerging market equities turning the page on the last (nearly) two decades of underperformance. Emerging market valuations are simply much more attractive relative to domestic; for example, PDD trades at just 13.6 times forward earnings.
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why PDD stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put PDD on your watchlist.
Cracker Barrel Old Country Store operates the Cracker Barrel brand in the United States. Its restaurants serve breakfast, lunch, and dinner, and also offer pick-up and delivery services. In addition, Cracker Barrel stores consist of gift shops that offer various decorative and functional items, apparel, seasonal gifts, and cookware.
Founded in 1969 and headquartered in Tennessee, Cracker Barrel has made a series of missteps, sending the stock sharply lower in recent months.
In a modern age where many companies are attempting to increase awareness and garner new customers, it’s understandable that a new logo can help play a part in a strategic transformation.
Unfortunately for the southern-country-themed restaurant, the move flopped in spectacular fashion.
The logo switch faced viral backlash after the company removed the overalls-wearing “Old Timer,” who resembled Herschel McCartney – the real-life uncle of the company’s founder, Dan Evins.
Cracker Barrel CEO Julie Masino acknowledged the tactical mistake as traffic dropped substantially in the weeks that followed. The company then warned that if the recent trends persisted, it could result in a 7%-8% traffic decline for the rest of the quarter.
Furthermore, management stated that it would adjust its financial outlook for fiscal 2026 due to the incident, as well as pull guidance for 2027. Cracker Barrel now expects total revenues in the current fiscal year to be between $3.35 billion and $3.45 billion. Analysts had previously expected $3.52 billion.
Apart from the logo fiasco, Cracker Barrel is also dealing with pressure from commodity inflation as well as the closure of chain locations. The company, which acquired Maple Street Biscuit Company back in 2019, closed 14 of the breakfast chain’s locations because they weren’t meeting “financial expectations.”
A Zacks Rank #5 (Strong Sell) stock, Cracker Barrel is a component of the Zacks Retail – Restaurants industry group, which currently ranks in the bottom 18% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past several months.
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
CBRL shares have been underperforming the market this year by a wide margin. After a brief upward move off the April lows, the stock represents a compelling short opportunity as we head further into the final stretch of 2025.
Cracker Barrel has fallen short of earnings estimates in two of the past five quarters. Consistently falling short of earnings estimates is a recipe for underperformance, and CBRL is no exception.
Just last month, the company reported fiscal fourth-quarter earnings of 74 cents per share, missing the Zacks Consensus Estimate by -5.1%.
The restaurant chain has been on the receiving end of negative earnings estimate revisions as of late. Looking at the current fiscal year, analysts have slashed estimates by a whopping -48.86% in the past 60 days. The fiscal 2026 Zacks Consensus EPS Estimate is now $1.79 per share, reflecting negative growth of nearly -43.4% relative to the prior year.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
CBRL stock is in a sustained downtrend. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 15% this year alone.
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that CBRL is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
Recent missteps with its logo along with weak store traffic will likely translate into an uphill battle for Cracker Barrel. A history of earnings misses and falling future earnings estimates should serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of CBRL until the situation shows major signs of improvement.
The U.S. Energy Department’s latest natural gas storage report showed an injection tallying market expectations and close to the five-year average. While production eased slightly, stronger power demand helped lift overall consumption. In this setting, natural gas futures moved upward, supported by stronger LNG activity and signs of tightening supply. Analysts note that with winter approaching, balances are set to improve, keeping the longer-term outlook constructive for investors.
At this time, we advise investors to focus on stocks such as The Williams Companies, Expand Energy Corp. and Coterra Energy.
Stockpiles held in underground storage in the lower 48 states rose by 75 billion cubic feet (Bcf) for the week ended Sept. 19, matching analysts’ guidance. The increase compared with the five-year (2020-2024) average net addition of 76 Bcf and last year’s growth of 49 Bcf for the reported week.
The latest build put total natural gas stocks at 3,508 Bcf, 22 Bcf (0.6%) above the 2024 level and 203 Bcf (6.1%) higher than the five-year average.
The total supply of natural gas averaged 111.7 Bcf per day, down a marginal 0.1 Bcf per day on a weekly basis, due to a dip in dry production partly offset by higher shipments from Canada.
Meanwhile, daily natural gas consumption rose to 101.3 Bcf from 98.6 Bcf the week before, as power demand strengthened on the back of warmer weather in the Mid-Continent and Northeast regions.
Natural gas futures ended the week with sharp swings, reflecting a mix of storage data and shifting demand. November futures closed at $3.206 on the New York Mercantile Exchange on Friday, gaining roughly 10% for the week, supported by firmer LNG flows and a temporary pullback in domestic production. Still, mild early-October weather kept heating demand subdued, tempering near-term momentum. For investors, the strong weekly advance signals resilience, but market direction remains closely tied to storage builds and winter demand forecasts.
Natural gas futures showed resilience this past week, with November contracts climbing handsomely despite tepid temperatures and ample storage levels, signaling that the market remains strong even as inventories remain comfortably above the five-year average. This balance of steady supply and improving demand trends suggests that the sector is entering the final stretch of injection season on firmer footing.
Looking ahead, the outlook leans constructive. Analysts point to robust industrial demand, expanding LNG export capacity, and the potential for a colder winter as catalysts that could lift prices into year-end and beyond. While near-term fundamentals remain weather-dependent, the structural drivers — resilient production, strong exports, and global demand growth — continue to anchor natural gas as a key investment theme. For investors, the sector offers a blend of stability and upside potential as the market moves closer to the peak winter months.
For the time being, a measured yet steady approach appears reasonable. Attention may be better directed toward companies with solid fundamentals and the resilience to handle near-term market fluctuations.
The Williams Companies: With U.S. natural gas demand projected to grow significantly in the long term, The Williams Companies seems to be well-positioned to capitalize on the same owing to its impressive portfolio of large-scale value-creating projects. With its extensive network handling a third of the U.S. natural gas and significant expansion projects in the pipeline, Williams is set to benefit from favorable industry dynamics and growth prospects.
Expand Energy: Expand Energy has solidified itself as the largest natural gas producer in the United States, following the Chesapeake-Southwestern merger. With key assets in the Haynesville and Marcellus basins, EXE is well-positioned to capitalize on the increasing demand for natural gas, driven by LNG exports, AI/data centers, EV expansion, and broader electrification trends.
Coterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 186,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. The company’s share of natural gas in its overall production is around 65%.
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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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