Nvidia and Bath & Body Works have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – December 24, 2025 – Zacks Equity Research shares Nvidia NVDA as the Bull of the Day and Bath & Body Works, Inc. BBWI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Strategy Inc. MSTR, MARA Holdings MARA and Riot Platforms RIOT.

Here is a synopsis of all five stocks:

Bull of the Day:

I run screens and conduct research every day, looking for high-quality companies with strong growth profiles and reasonable valuations, and Nvidia consistently stands out. Few companies sit as squarely at the center of today's most important secular trend.

Demand for Nvidia's GPUs appears either secular or, if cyclical, still early enough that a downturn is not yet a concern. Roughly half a trillion dollars is expected to flow into AI-related capital spending next year, and Nvidia's chips are estimated to account for roughly 20% of that investment. That scale underscores both the company's dominance and the durability of its demand backdrop.

After several months of consolidation, Nvidia shares have begun to reaccelerate, recently breaking out from a well-defined technical pattern. At the same time, analysts have continued to raise earnings estimates, earning the stock a Zacks Rank #1 (Strong Buy). Improving clarity around US–China semiconductor trade policies has also removed a near-term overhang, reopening a source of demand that had previously been constrained.

Below, we outline the outlook for the world's largest publicly traded company and explain why Nvidia remains well positioned to continue leading the market going forward.

Nvidia Shares Bolstered by Strong Growth Forecasts

Growth expectations for Nvidia remain exceptional. Sales are projected to rise roughly 63% next year and another 43% in 2027, reflecting an incredible $100 billion jump from one year to the next. On the bottom line, earnings are expected to climb 55.5% next year and 53% the following year, underscoring the company's powerful operating leverage.

What also makes this growth profile compelling is valuation. Despite its dominance and momentum, Nvidia trades at about 39.5x forward earnings. With consensus estimates calling for 46.3% annual EPS growth over the next three to five years, the stock carries a PEG ratio of roughly 0.85, a level typically associated with undervalued growth stocks, not the world's most important AI supplier.

In other words, investors are not paying a premium commensurate with Nvidia's growth trajectory. If current forecasts hold, valuation support alone provides a cushion, while continued execution on revenue, margins, and ecosystem expansion offers meaningful upside.

Nvidia Stock Breaks Out

Nvidia shares staged a decisive breakout this week, resolving higher from a well-defined descending bullish wedge, a pattern that typically signals trend continuation. After several months of consolidation, the stock has clearly regained momentum, suggesting selling pressure has been absorbed and buyers are regaining control.

With the breakout now confirmed, the technical setup points to a renewed push higher, and a retest of record highs in the near term would not be surprising. Importantly, this move is occurring alongside rising earnings estimates and improving fundamental visibility, reinforcing the signal and increasing the likelihood that the breakout proves durable.

Can Investors Buy Shares in NVDA?

Given the combination of accelerating earnings growth, reasonable valuation relative to its growth profile, and a confirmed technical breakout, Nvidia remains an attractive buy for investors with a medium- to long-term horizon. The stock has spent several months consolidating prior gains, allowing fundamentals to catch up to price, and that process now appears complete.

While near-term volatility is always possible, particularly in a stock that has already delivered outsized returns, the underlying setup argues that pullbacks are more likely to be opportunities rather than warning signs. With earnings estimates still moving higher, demand visibility extending well into next year, and technical momentum turning decisively positive, Nvidia continues to justify its leadership position in the market and remains the core holding in the AI theme.

Bear of the Day:

Bath & Body Works, Inc. appears to be facing a structural decline as sales, earnings power, brand relevance, and analyst expectations continue to trend lower. What was once a productive specialty retail model is increasingly under pressure in a more competitive, digitally driven landscape.

Store traffic remains muted, and the company has struggled to resonate with younger consumers, leading to ongoing market share losses to competitors with stronger product innovation and more effective digital engagement. At the same time, margin visibility is deteriorating. Elevated promotional activity, persistent tariff exposure, and rising operating costs are compressing profitability, with few clear offsets in sight.

Management's revised outlook points to a longer and more challenging recovery. Softer top-line expectations, combined with continued SG&A deleverage, suggest earnings will remain constrained even if demand stabilizes. With promotional intensity likely to remain elevated, execution risk appears skewed to the downside over the next several quarters.

Reflecting these challenges, analysts have continued to downgrade the stock. Shares have been in a persistent downtrend for roughly four years, underscoring the market's lack of confidence in a near-term turnaround.

BBWI Stock Drops Along with Earnings Estimates

The earnings revision trend for Bath & Body Works has deteriorated meaningfully again over the past 60 days, pushing the stock to a Zacks Rank #5 (Strong Sell). Analyst confidence has weakened sharply, with next quarter earnings estimates cut by 42% and next year estimates reduced by 31.5%, reflecting rising concerns around demand, margins, and execution.

The top line outlook offers little support. Sales are expected to decline 2.3% next year and a further 3% in 2027, signaling ongoing pressure on traffic. On the bottom line, earnings are forecast to fall 11.6% this year and 11.5% next year, suggesting that cost pressures and promotional intensity are overwhelming management's ability to protect profitability.

This combination, falling revenue, shrinking margins, and accelerating estimate cuts is particularly concerning. Sustained negative revisions tend to weigh heavily on stock performance, and without a clear catalyst to stabilize earnings expectations, BBWI remains fundamentally challenged in the near to intermediate term.

Should Investors Avoid BBWI Stock?

Given the ongoing deterioration in fundamentals, BBWI remains a stock to avoid. Earnings estimates continue to move sharply lower, revenue trends are negative, and margin pressure shows little sign of abating. In retail, sustained negative revisions are rarely a short-term issue, and BBWI's estimate trajectory suggests deeper structural challenges rather than a temporary slowdown.

Until the company can demonstrate a clear inflection in traffic, brand relevance, and profitability, and until earnings revisions stabilize, the risk-reward profile remains unattractive. With shares entrenched in a multi-year downtrend and analyst sentiment firmly negative, BBWI lacks the catalysts needed to justify new capital at this stage.

Additional content:

Strategy's Bitcoin Accretion Continues: Is It Durable?

Strategy Inc. continues to deepen its identity as the world's largest corporate Bitcoin holder, with 2025 marking a decisive acceleration in Bitcoin accretion. In 2025, the company has meaningfully stepped up its accumulation pace, expanding holdings to roughly 671,000 BTC, including a recent 10,645 BTC purchase in mid-December. With its Bitcoin ownership exceeding 3% of the global supply, Strategy's accumulation has evolved into an ongoing process rather than opportunistic trades.

That momentum is clearly reflected in key operating metrics. BTC Yield reached 26% year to date, while BTC Gain climbed to 116,555 BTC, marking a sharp rise from earlier quarters. Importantly, Bitcoin per share continued to rise even as new equity was issued, indicating that capital raises remain adding value on a per-share basis. These metrics suggest that Bitcoin accumulation is being executed with discipline.

The durability of this momentum is further supported by recent structural tailwinds. Regulatory clarity following IRS guidance on fair-value taxation reduces uncertainty for long-term Bitcoin holders, while the company's new S&P B- credit rating expands access to global high-yield capital markets. At the same time, growing institutional adoption of Bitcoin via ETFs and derivatives has improved liquidity and reduced volatility, creating a more supportive macro backdrop for treasury adoption.

Looking ahead, management reaffirmed its target of a 30% BTC yield and $20 billion in BTC dollar profits for 2025, indicating confidence in maintaining this trajectory. While Bitcoin remains volatile, the company's expanded access to capital supports more sustainable compound growth.

MSTR Faces Growing Pressure from Crypto Rivals

MARA Holdings challenges MSTR with a fundamentally different crypto strategy. MARA Holdings blends Bitcoin production and accumulation, leveraging large-scale mining alongside strategic purchases. At the end of the third quarter of 2025, MARA Holdings held 52,850 BTC, supported by an energized hash rate of 60.4 EH/s, indicating scalable, long-term competitive pressure.

Riot Platforms presents a growing threat to MSTR by monetizing Bitcoin through large-scale mining operations. RIOT strengths include cost efficiency and strategic expansion, and digital infrastructure supporting the Bitcoin network directly. At the end of the third quarter of 2025, RIOT held 19,287 BTC, produced 1,406 BTC and deployed a 36.5 EH/s hash rate. With $180.2 million in revenues and $104.5 million in net income, RIOT highlights growing competitive pressure on MSTR.

MSTR's Price Performance, Valuation & Estimates

MSTR has significantly underperformed both its sector and key competitors. Shares of Strategy have plunged 54.1% over the past year against a 15.7% gain in the Zacks Finance sector. Riot Platforms rose 23.4% during the same period, while MARA Holdings declined 49.7%.

MSTR has a Value Score of F. It is currently trading at a Price/Book ratio of 0.9X compared to the sector's 4.28X.

The Zacks Consensus Estimate for MSTR's 2025 earnings is pegged at $78.04 per share, unchanged over the past 30 days. The estimate also indicates a strong year-over-year recovery from a loss of $6.72 per share.

MSTR 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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