Collegium Pharma and Entegris have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – November 19, 2025 – Zacks Equity Research shares Collegium Pharmaceutical COLL as the Bull of the Day and Entegris ENTG as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company KO, PepsiCo, Inc. PEP and Monster Beverage Corp. MNST.

Here is a synopsis of all five stocks.

Bull of the Day:

Building the scenario for the Zacks Bull of the Day, broader valuation concerns have stemmed from the tech sector, with the market also on edge about delayed inflation data due to what was the longest government shutdown in U.S. history.

·        Some of the market’s ability and willingness to sift out and reward economic processes has been temporarily delayed with fears of an AI bubble adding to the willingness connotation.

·        So, how about buying a medical stock that is already seeing strong momentum but is still cheaply valued?

·        This could provide a defensive hedge against any further economic uncertainty, while and when inflation data gets sorted out, especially if it's unfavorable, along with addressing the “correction” the market appears to be asking for by pivoting to a value stock.

Collegium Pharmaceutical fits this strategic selection as an attractively valued Zacks Rank #1 (Strong Buy) stock with the essential operations that investors often seek during market volatility, and the potentially lucrative profitability that successful biopharmaceutical companies can earn, i.e., momentum.

About Collegium and its Recent Stock Performance

Developing prescription and over-the-counter pharmaceuticals, Collegium is focused on pain management drugs that have an abuse-deterrent formulation, with its treatments also spanning to respiratory and skin-related disorders.

Attributing to its improved margins and profitability, Collegium benefits from high-value branded drugs that are protected by patents or exclusivity periods. These include pain drug brands such as Belbuca and Nucynta, along with Xtampza ER (extended-release oxycodone), which has an exclusivity period through 2029.

Collegium stock has ascended to new multi-year highs upon exceeding earnings expectations in each of its last four quarterly reports. COLL is currently trading near multi-year highs of around $45 a share and is up nearly +60% year to date.

Collegium’s Impressive Net Income Margins

Magnifying Collegium’s earnings potential has been its impressive net income margins. As shown below, Collegium has maintained a net margin of around 8.56% in the last five years (Median), with an eye-catching high of 32.73%.

In comparison, Collegium’s Zacks Medical-Drugs Industry’s median net income average is at 4.53% during this period, and is only at 1.1% at the moment. To that point, most biopharmaceutical companies generate high-product-level profitability (gross margins) but spend heavily on operating costs, especially as it relates to R&D.

Why COLL Still Looks Cheap

Despite a sharp YTD rally, Collegium stock still trades at just 6X forward earnings, offering a sharp discount to the benchmark S&P 500 and its Zacks industry average of 18X.

Even better, EPS revisions are nicely up since Collegium exceeded Q3 expectations earlier in the month and raised its full-year revenue guidance.

In the last 30 days, FY25 EPS revisions have gone from $7.08 to $7.55. Furthermore, this would reflect 17% growth from EPS of $6.45 last year. And although FY27 EPS is projected to dip to $7.40, estimates are up from $6.88 per share a month ago.

Bottom Line

Collegium is taking advantage of what has been respectable and steady sales growth, which correlates with a constant demand for health products and services. Recent market jitters suggest the smart money could start to favor such medical stocks as a defensive hedge amid valuation concerns and data setbacks that have shifted the Fed’s easing cycle into a holding pattern.

Bear of the Day:

Semiconductor-related stocks have taken the brunt of the pullback in correlation with AI bubble fears, and Entegris has been one to avoid in particular.

Providing materials management solutions for microelectronic and semiconductor producers, the valuation for ENTG has become more reasonable, but the trend of declining earnings estimate revisions suggests more downside risk as Entegris deals with industry-related headwinds that are specific to its operations.

Correlating with such, Entegris stock has dropped 20% this month and currently lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day.

Entegris’ Cautious Outlook

The extended selloff in ENTG comes as Entegris issued somewhat weak revenue guidance for Q4 that came short of analyst expectations and suggests up to a 5% sequential decrease from the $807.1 million the company brought in last quarter.

Although Q4 revenue targets still call for double-digit growth from a year ago, Entegris has grappled with margin compression due to tariffs and weaker U.S. sales to China.

CoreWeave’s Data Center Delay

Adding to geopolitical trade tensions that are impacting Entegris’ outlook is that industry-wide pressures have mounted after AI cloud provider CoreWeave recently announced a data center delay that triggered concerns across the semiconductor supply chain.

As a materials provider, Entegris has been caught in the downturn along with other companies in the semiconductor ecosystem, such as Arm Holdings, Micron Technology and Lam Research.

Declining EPS Revisions

Unfortunately, the short-term volatility in Entegris stock is likely to persist as fiscal 2025 and FY26 EPS estimates have dropped 3% and 8% in the last 30 days, respectively.

On top of this, its top and bottom line growth prospects aren’t as spectacular in terms of the expansion potential for the broader AI trade.

Bottom Line

With its stock falling 35% from a 52-week high of $112 a share, the short-term headwinds that Entegris may continue to face are unfortunately a reason why some AI bubble fears are realistic, especially for companies that aren’t direct developers of the technology.

Additional content:

Can Coca-Cola's "All Weather" Strategy Keep Earnings Bubbling?

The Coca-Cola Company’s “all-weather” strategy is designed to keep its earnings growing steadily, irrespective of economic cycles, weather patterns or shifting consumer trends. This strategy focuses on reducing volatility in demand, strengthening pricing power and deepening global reach.

KO’s “all-weather” strategy is a multifaceted approach aimed at sustaining steady beverage consumption in a year, reducing its reliance on seasonal demand patterns. The strategy also covers how KO manages its supply chain, using several sources for key ingredients, and how it operates day-to-day, using tools like trade discounts to steady demand and keep distributors involved.

By balancing its portfolio across geographies and segments, the company positions itself to perform consistently and deliver growth even in the shifting market conditions. Its highly diversified portfolio, including low-sugar options, sparkling waters, premium beverages, and functional drinks, significantly expands its presence beyond the traditional soda category.

Coca-Cola has shifted to a lighter, more efficient operating setup by refranchising its bottling operations, driving efficiency gains and strengthening free cash flow. This provides greater capacity to invest in marketing, product innovation and sustainability initiatives without compromising shareholder returns. In fact, KO’s global franchise system remains a key competitive advantage.

Currently, the company is executing its “all-weather” strategy to navigate the complex operating backdrop. At its core, Coca-Cola’s “all-weather” strategy helps it offset the impact of unseasonal weather and rising inflation, volatile trade conditions and an evolving geopolitical backdrop. As a result, this positions the company to deliver sustained growth and stronger earnings ahead.

KO’s Competition: PEP & MNST in Focus

PepsiCo, Inc. and Monster Beverage Corp. are the beverage companies competing with Coca-Cola.

PepsiCo continues to emphasize value leadership by offering a sturdy balance of affordability, innovation and brand equity across its beverage and snacks portfolio. PEP leverages broad distribution strength across traditional retail, convenience, e-commerce and foodservice to deliver strong value visibility at multiple price points. PepsiCo’s focus on productivity and digital transformation remains a cornerstone of its long-term strategy to enhance efficiency, fund innovation and support margin expansion.

Monster Beverage leads the market by delivering strong consumer value and maintaining share in key price segments. Monster Beverage continues to uphold its value leadership in the global energy drinks category, supported by sustained brand equity, strategic innovation and disciplined pricing. The company’s balanced approach to product mix and promotional investments has helped it defend market share and deliver consistent growth, even amid competitive and inflationary pressures. MNST continues to review opportunities for higher prices, domestically and internationally.

KO’s Price Performance, Valuation and Estimates

Shares of Coca-Cola have gained 13.8% year to date compared with the industry’s growth of 6.5%.

From a valuation standpoint, KO trades at a forward price-to-earnings ratio of 22.15X compared with the industry’s average of 17.87X.

The Zacks Consensus Estimate for KO’s 2025 and 2026 earnings per share (EPS) implies year-over-year growth of 3.5% and 8%, respectively. The estimates for 2025 and 2026 have increased a penny in the past 30 days.

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

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