Broadcom and Badger Meter have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – February 10, 2026 – Zacks Equity Research shares Broadcom AVGO as the Bull of the Day and Badger Meter BMI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. XOM, Chevron Corp. CVX and EOG Resources Inc. EOG.

Here is a synopsis of all five stocks.

Bull of the Day:

Zacks Rank #1 (Strong Buy) stock Broadcom is a tech giant that is dominant in the semiconductor and software industries. Broadcom’s two main businesses provide the hardware (semiconductors) and the virtual software that allows modern data centers to run smoothly. Below is a breakdown of Broadcom’s two main business segments:

1. Semiconductors (~60% of revenues): AVGO’s “Tomahawk” and “Jericho” chips are the industry standard for directing traffic within massive data centers. The company’s custom AI accelerators (ASICs) are designed specifically for hyperscalers. Meta Platforms and Alphabet use AVGO technology to power their data centers. Additionally, AVGO chips power smartphones like Apple’s iPhone.

2. Infrastructure Software: Through Broadcom’s $69 billion VMware acquisition, AVGO is a leader in the private cloud business. Banks, government agencies, and other large entities rely on AVGO for software and cybersecurity.

The Data Center Buildout Super Trend

The race for AI supremacy among big tech companies has led to the largest industrial buildout in history. While the AI data center buildout has been unprecedented thus far, guidance from big tech companies suggests that CAPEX spending will only increase over the next few years. As an AI “pick and shovel” play, AVGO is perfectly positioned to capitalize on this spending.

Broadcom Provides an Alternative to Nvidia

Nvidia (NVDA) remains the undisputed leader in semiconductor chips. However, Nvidia’s chips are expensive and are often sold out. Although Nvidia is likely to continue to dominate, companies like Google are decoupling and de-risking their AI spending by leveraging Broadcom’s cheaper and more efficient ASIC technology.

Broadcom has High-Margin, Recurring Revenue

High-margin recurring revenue is the holy grail for growth stocks. Broadcom’s subscription-based software segment provides predictable cash flow and juicy margins.

Robust Growth Outlook

Zacks Consensus Analyst Estimates suggest that Broadcom will grow in the high double-digits for the foreseeable future.

Meanwhile, AVGO has beaten Zacks Consensus Estimates for 20 consecutive quarters.

Bullish Technicals

AVGO shares have trended strongly over the past year, up 45%. After a quick test of the 200-day moving average, buyers stepped in, suggesting that the trend remains very much intact.

Bottom Line

With its "Strong Buy" Zacks Rank and an impressive 20-quarter streak of exceeding earnings expectations, Broadcom stands as a uniquely diversified powerhouse in the technology sector. As we move deeper into 2026, the company is perfectly positioned to capture the next wave of infrastructure spending, from the "insatiable demand" for custom AI accelerators among hyperscalers like Alphabet and Meta to the high-margin stability of its VMware software ecosystem.

While the stock has already rewarded investors with significant gains, the combination of a record $73 billion backlog and industry-leading operating margins suggests that the bull case is far from over. For investors seeking a blend of aggressive AI growth and defensive software recurring revenue, AVGO remains a premier candidate for any long-term portfolio.

Bear of the Day:

Zacks Rank #5 (Strong Sell) stock Badger Meter is a leader in the water technology sector. The Milwaukee, WI-based company specializes in smart meters that measure flow and quality of water, oil, chemicals, and other fluids. Badger Meter’s products are best-known for their accuracy, long-lasting durability, and valuable and timely measurement data. BMI’s business falls into three major categories:

1. Utility Water: The utility water product line consists of mechanical or static water meters and related radio and software technologies used by water utilities to generate water and wastewater revenue. Roughly 70% of water meters installed in the United States have converted to some form of radio solution technology.

2. Flow Instrumentation: This product line primarily serves water applications. The product line consists of meters, valves, and other sensing devices for measuring and controlling the volume of liquids and gases flowing through pipes or pipelines, such as water, air, and steam.

3. Connectivity & IoT: BMI’s ORION product enables utilities to monitor data remotely, eliminating the need to send a technician out for every issue.

Badger Meter’s Costs are Rising

Because Badger Meter operates internationally, the company is experiencing negative impacts from global tariffs and trade conditions. Additionally, elevated copper and component prices are creating a potential gross margin headwind into 2026. Profit margins have shrunk from 17% to 15% over the past year, and this trend is likely to continue.

Badger Meter Faces Mounting Competitive Pressures

While BMI remains the dominant player in its industry, the company faces mounting competitive pressure from rivals such as Honeywell and Itron. Meanwhile, several Wall Street analysts tracked by Zacks Investment Research have lowered earnings estimates for 2026 and 2027 – a troubling trend.

BMI Technicals are Deteriorating

Over the past year, BMI shares have underperformed dramatically, falling ~30%. Additionally, shares are below the key moving averages and are forming a bear flag pattern.

Bottom Line

Despite its established leadership in water technology and a robust suite of smart-metering solutions, Badger Meter faces a challenging road ahead through 2026. The combination of intensifying competition and the persistent pressure of rising component costs has created a difficult environment for margin growth.   

Additional content:

Soft Crude Oil Prices Likely: What It Means for ExxonMobil

According to data from OilPrice.com, the price of West Texas Intermediate (WTI) crude is trading above $60 per barrel, down significantly from the year-ago level. The pricing environment was relatively more favorable a year ago, therefore hurting the upstream business of integrated energy players like Exxon Mobil Corp.

EIA projects the spot average West Texas Intermediate price for 2026 at $52.21 per barrel, lower than $65.40 for 2025. With XOM generating a king's size of its earnings from upstream operations, can it combat the prevailing softness in oil prices?

The advantageous assets where XOM is operating include the Permian, the most prolific basin in the United States and offshore Guyana resources. Although the assets have cost advantages, lower oil prices are likely to hurt profits. However, unlike many other companies, ExxonMobil can rely on its strong balance sheet.

XOM’s exposure to debt capital is significantly lower than that of the composite stocks belonging to the industry. The integrated energy giant can lean on its robust financials to navigate the low pricing environment, such as securing debt capital on favorable terms when the business scenario turns unfavorable.

CVX & EOG Can Also Brave Business Uncertainty

Chevron Corp. and EOG Resources Inc. are two leading energy companies with a strong presence in exploration and production activities. The softness in crude prices is also hurting the bottom line of both CVX and EOG.

Like XOM, CVX and EOG have strong balance sheets. Debt to capitalization of Chevron and EOG is relatively lower than the industry, suggesting a considerably lower exposure to debt capital. Hence, they can brave the uncertainty of the business environment.

XOM’s Price Performance, Valuation & Estimates

Shares of XOM have gained 34.3% over the past year compared with the 23.2% improvement of the composite stocks belonging to the industry.

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.62X. This is above the broader industry average of 5.80X.

The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past seven days.

ExxonMobil 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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