Micron Technology and RH have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 16, 2025 – Zacks Equity Research shares Micron Technology MU as the Bull of the Day and RH RH as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Boeing BA, Airbus EADSY and Embraer ERJ.

Here is a synopsis of all five stocks.

Bull of the Day:

The more I dig into the scale of the AI and data center buildout, the clearer it becomes just how unfathomably massive this opportunity is, and how well-positioned Micron Technology stands to benefit. High Bandwidth Memory (HBM) is one of the most critical components of modern AI systems, yet it’s also in extremely short supply, and Micron has emerged as a leader.

It’s hard to overstate the magnitude of what’s coming: in just the next year, data center capex is forecast to reach $500 billion and every new cluster will require advanced HBM to keep pace with rising computational demand. Micron has pulled ahead of competitors by developing the most power-efficient HBM on the market, now serving as the preferred complement to Nvidia and AMD GPUs.

HBM is stacked directly beside the GPU using through-silicon vias (TSVs), enabling massive data throughput and lower power draw. It is essentially a fuel line feeding the AI engine, and demand is accelerating rapidly.

Micron also holds a top Zacks Rank, reflecting strong earnings momentum and rising analyst optimism. Combined with a reasonable valuation and a powerful technical setup, shares are currently forming a compelling bullish pattern, Micron may be the most attractive way to play the AI infrastructure boom.

Micron Technology Stock Surges on Upgrades

Micron’s fundamentals are rock solid, and Wall Street continues to take notice. Analysts have been steadily raising their estimates across the board, earning the stock a Zacks Rank #1 (Strong Buy) rating. Consensus earnings projections have surged, with current year EPS estimates up 27%, while next year’s are 19% higher than just a month ago.

Revenue trends tell a similar story. Sales are projected to climb 47% this year, followed by another 13% gain next year. Yet given the pace of data center investment and Micron’s rapidly expanding role in the AI supply chain, I think that even those forecasts could prove conservative.

Valuation only strengthens the bull case. Despite its sharp rally, Micron trades at just 11.3x forward earnings. And with earnings expected to grow 28.6% annually over the next three to five years, the stock’s PEG ratio of 0.4 underscores how attractively priced it remains relative to its growth potential.

MU Shares on the Verge of a Breakout

I’ve been tracking Micron closely over the past two months, and the stock continues to impress. Each time it consolidates, it forms another strong technical setup, and each time, it breaks higher. Over the last two weeks, MU has been carving out yet another bullish continuation pattern, signaling that momentum remains firmly on its side.

If shares can decisively break and close above the $196 level, the chart suggests room for another powerful leg higher. Momentum traders will be watching that area closely as confirmation of a fresh breakout.

That said, after such a strong run, sharp pullbacks are always possible. Watch for potential false breakouts or a loss of support near $180, which has served as the lower boundary of the recent base. A dip below that zone would likely indicate that the broader market is pausing, and for those trading primarily on technicals, it may be prudent to wait for a cleaner re-entry point before pressing new longs.

Should Investors Buy Shares in MU?

In my view, Micron Technology remains one of the most compelling ways to invest in the AI infrastructure boom. The company is at the center of a generational capital cycle in data centers — a sector where demand for high-performance memory is expected to outpace supply for years to come. With its breakthrough in energy-efficient HBM3E chips and rising analyst estimates, Micron combines fundamental strength, technical momentum, and long-term secular growth in a single name.

Short-term volatility is always possible after such a strong run, but for investors with a multi-quarter or multi-year horizon, the risk/reward still looks highly favorable.

Micron has gone from a cyclical memory manufacturer to a strategic enabler of the AI economy, and as AI adoption continues to accelerate across industries, this stock appears poised to keep breaking higher.

Bear of the Day:

RH, formerly known as Restoration Hardware, has long been recognized as one of the most aspirational brands in luxury home furnishings. Its showrooms, or “Galleries,” as the company calls them, and its upscale catalog have helped RH stand apart from traditional retailers. Yet even strong brands can struggle when the broader industry faces headwinds, and that’s exactly what’s happening here.

Over the past several years, sales growth has stalled and margins have compressed, as high interest rates, global trade tensions and a weaker housing market weigh on consumer appetite for big-ticket discretionary items. RH’s stock has reflected that reality as price action remains heavy, with shares sliding well below key moving averages. Adding to the pressure, analysts have been steadily cutting earnings estimates, signaling that near-term visibility remains poor.

To put this weakness into context, I recently had a surprising real-world experience. I ordered a large custom sectional from another high-end furniture brand and was told it would be delivered within a week, a turnaround time that would have been unthinkable a few years ago.

During the pandemic and post-COVID housing boom, custom furniture often took three to six months to arrive due to overwhelming demand. That this order can now be fulfilled almost immediately suggests that demand in the luxury furniture segment has softened dramatically and inventories are sitting idle.

RH Shares Slide Along with Earnings Estimates

RH has come under mounting pressure as analysts continue to trim their profit outlooks, earning the stock a Zacks Rank #5 (Strong Sell) rating. Over the past two months, current year earnings estimates have dropped 16%, while next year’s forecasts are down another 10.5%, reflecting persistent concern about the company’s margin outlook and weakening industry trends.

Revenue projections show modest improvement, with sales expected to rise roughly 10% this year and again next year. Even with those gains, RH’s annual earnings remain well below prior peaks, and profitability is still lagging pre-2022 levels when the company benefited from a post-pandemic home shopping boom.

The earnings track record has also been underwhelming. RH has missed Wall Street estimates in eight of the last eleven quarters, underscoring the difficulty of forecasting demand in a volatile, rate-sensitive housing and luxury furniture market. Persistent cost pressures, heavier promotional activity, and higher operating expenses have all weighed on consistency.

Until the company can deliver sustained earnings surprises or show a clear recovery in consumer spending, the path of least resistance for RH shares may remain lower. For now, the combination of falling estimates, weak momentum, and disappointing execution keeps the stock firmly in bearish territory.

Should Investors Avoid RH Stock?

While RH remains a respected brand with a loyal customer base and a differentiated luxury positioning, the near-term outlook remains difficult. The combination of softer demand, falling earnings estimates, and persistent margin pressure paints a challenging picture for the quarters ahead.

Even after its recent slide, RH shares trade at roughly 22.3x forward earnings, a valuation that’s not excessively high by market standards but still looks stretched given the current headwinds. With modest sales growth, that multiple may prove difficult to justify unless demand meaningfully rebounds or execution improves.

All that said, when demand does pick up for luxury furniture, such as that at RH, I am sure the stock will make a strong rebound. But until we see an earnings beat, or analysts begin to raise earnings estimates, investors would be better off seeking opportunities elsewhere in the market.

Additional content:

Is Boeing in the Crossfire amid Intensifying U.S.-China Trade War?

China has been exerting economic pressure on the United States, of late, in response to Trump’s decision earlier this year to impose higher tariffs on Chinese imports. A recent escalation in this trade war between the globe’s two largest economies has put Boeing in the crossfire.

Notably, in October 2025, China expanded export controls to cover five additional rare earth metals in addition to the initial seven restricted earlier this year. In a sharp response, U.S. President Donald Trump announced that America is considering imposing export controls on Boeing aircraft parts destined for China. This announcement has placed the American aerospace giant squarely in the middle of a geopolitical standoff.

While imposing export controls on Boeing aircraft parts may put China in jeopardy and hurt the smooth operations of the 1,855 Boeing airplanes currently in service in the nation (as per CNBC), the situation is precarious for Boeing as well.

Notably, Chinese airlines currently have firm orders for 222 Boeing aircraft that are still awaiting delivery. So, if China refuses to take deliveries from Boeing, as it did in April 2025, in light of the fresh trade tension, it will hurt Boeing’s revenue generation prospects for its commercial airplane business, apart from pushing up its inventory costs.

The jet giant is also reportedly in negotiations for a major deal involving up to 500 jets in China, which may go south, considering the current market situation.

Will Boeing’s Peers Benefit?

Trump's trade tactic of imposing export controls on Boeing aircraft parts to keep China under pressure, if implemented in reality, might potentially push Chinese airlines to look for other jet makers and thereby prove beneficial for Boeing’s arch rival Airbus.

Notably, Airbus already has an established footprint in China’s commercial aerospace market, which has become the largest single-country market for the European jet giant worldwide. To date, Airbus' in-service fleet in the Chinese mainland has reached over 2,200 aircraft with some 55% market share in mainland China.

Another jet maker that may benefit from the current market situation is Embraer. Although the scale of operations in commercial aerospace for this Brazilian aerospace company is not in line with Boeing or Airbus, it has been making significant efforts to increase its footprint in China, realizing the growth prospects of this nation’s commercial aerospace industry. With this aim in view, ERJ participated in last year’s Airshow China with a special focus on collaboration opportunities with the supply chain in China.

Notably, Embraer’s E190-E2 and E195-E2 jets are currently certified by the Chinese civil aviation for flight, with the company having established a comprehensive after-sales service system to support the E-Jets fleet in China, including authorized maintenance centers, spare parts warehouses and a complete pilot training network.

The Zacks Rundown for BA

Shares of Boeing have risen 35.1% in the past year compared with the industry’s growth of 11.2%.

From a valuation standpoint, BA is currently trading at a forward 12-month sales of 1.73X, a discount when stacked up with the industry average of 2.36X.

The Zacks Consensus Estimates for BA’s near-term earnings (except for 2026) have moved south over the past 60 days.

BA stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research