Nomad Foods and Dell Technologies have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – May 7, 2025 – Zacks Equity Research shares Nomad Foods NOMD as the Bull of the Day and Dell Technologies DELL asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Semtech Corp. SMTC, Magnachip Semiconductor Corp. MX and ASML Holding N.V. ASML.

Here is a synopsis of all five stocks:

Bull of the Day:

It's no secret that staples are back in favor. With the Fed likely approaching the end of its rate hiking cycle and markets adjusting to a slower-growth reality, investors are once again flocking to the stability of steady earnings and strong cash flow. And right now, few names in the frozen food aisle look as appealing as Nomad Foods.

Nomad Foods is the European frozen food powerhouse behind brands like Birds Eye, Iglo, Findus, and Aunt Bessie's. It may not have the sizzle of tech or the yield of energy, but in uncertain times, frozen peas and fish fingers can be a surprisingly lucrative proposition. The company's focus on branded frozen foods across Western Europe gives it durable pricing power and loyal customers. More importantly for investors—it's printing profits.

The reason for Nomad Foods appearance today isn't just its boring-but-beautiful business model. It's the series of recent earnings estimate revisions that have analysts—and Zacks—paying attention. Over the last 30 days, two analysts have increased their estimates for both the current and next year. That's the kind of across-the-board bullishness we like to see.

Those revisions have pushed the Zacks Consensus Estimate for 2024 EPS from $1.95 to $2.15, and for 2025 from $2.11 to $2.31. That's a healthy bump, signaling confidence in both near-term execution and longer-term profitability. In fact, NOMD is expected to grow earnings over 11.4% this year and follow that up with another 7% next year, not bad for a consumer staples stock.

Despite the upward estimate revisions, NOMD trades at a forward P/E of just 9.3x, well below the broader market and even below most of its consumer staples peers. For a company with strong brands, resilient margins, and a growing presence in private-label and health-conscious frozen offerings, that valuation is a compelling entry point.

Let's not forget the strong free cash flow. NOMD has consistently converted a healthy portion of earnings into cash, giving it the ability to reinvest in growth, pay down debt, and return value to shareholders.

In a market that's rewarding consistency and punishing volatility, Nomad Foods offers a refreshing mix of stability and upside. With a Zacks Rank #1 (Strong Buy), improving earnings outlook, and defensive positioning, this frozen food leader is heating up in all the right ways.

Bear of the Day:

The AI buzz may be booming, but not every tech company is enjoying the ride. Case in point: Dell Technologies. While NVIDIA and others in the space are making headlines for triple-digit returns, Dell is feeling the weight of a more traditional IT business struggling to keep up with rapidly shifting market dynamics.

There's no denying Dell's legacy or its role in building the modern computing landscape. But right now, the numbers, and the analysts, aren't on its side. The company is facing margin pressure, uneven demand, and increasingly fierce competition in both consumer and enterprise markets.

The core of our Zacks Rank system is earnings estimate revisions, and unfortunately for Dell, they're going in the wrong direction. Over the past 30 days, five analysts have cut their earnings estimates for the current quarter, next quarter, and full year. That's a serious red flag, and exactly why Dell has landed in the dreaded Zacks Rank #5 (Strong Sell) category.

Current year EPS estimates have fallen from $9.36 to $8.90, a steep drop that reflects caution from the analyst community. And while revenue growth in infrastructure solutions (especially servers) has helped cushion the blow somewhat, weak PC demand and tighter corporate IT budgets are weighing on results.

Dell has long operated on thin margins, especially in its PC business. Now that component prices are stabilizing and demand is no longer surging, Dell is losing the pricing power it briefly enjoyed post-COVID. Meanwhile, the AI infrastructure race is capital intensive, and Dell's approach, centered more on reselling NVIDIA's hardware than building its own proprietary stack, hasn't given it the same premium investors are awarding others in the AI space.

The company's commercial business is also vulnerable to macroeconomic tightening. Enterprise spending is slowing as companies reassess budgets, and Dell's heavy exposure to corporate IT makes it especially sensitive to that trend.

Dell Technologies is a titan in tech, but in today's market, legacy hardware isn't where the growth is. With analysts cutting estimates, earnings expected to decline, and fundamental challenges ahead, it's tough to make a bullish case right now.

Dell is in the Computer – Micro Computers industry which ranks in the Bottom 14% of our Zacks Industry Rank. Within its industry, there are no stocks which are in the good graces of our Zacks Rank.

Additional content:

3 Semiconductor Stocks to Buy Now as Q1 Revenues Skyrocket

Semiconductor sales skyrocketed in the first quarter of 2025 despite price challenges and threats from the emergence of DeepSeek, a low-cost AI model from China. Also, sales grew month over month in March after declining in the first two months of the year.

Optimism surrounding artificial intelligence (AI), particularly generative AI, fueled semiconductor sales last year, and this year too has been no different.

Given this scenario, it would be ideal to invest in semiconductor stocks such as Semtech Corp., Magnachip Semiconductor Corp. and ASML Holding N.V.. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Semiconductor Revenues Grow Sharply

The Semiconductor Industry Association (SIA) said on Monday that global semiconductor revenues totaled $167.7 billion in the first quarter of 2025, up 18.8% from year-ago levels. Although revenues were down by a marginal 2.8% from the fourth quarter of 2024, month-over-month sales jumped 1.8% in March, totaling $54.9 billion.

John Neuffer, SIA president and CEO, said, "Global semiconductor demand remains high, with first-quarter sales substantially outpacing the first quarter of last year. Year-to-year sales increased by more than 17% for the 11th consecutive month, driven by a year-to-year sales increase of roughly 45% in the Americas."

The first-quarter figures come after semiconductor revenues jumped a staggering $627.6 billion in 2024, an increase of 19.1% from the previous year's total of $526.8 billion. A major factor behind the steady rise in sales has been the growing demand for semiconductors at data centers. The memory chip market has been contributing significantly in boosting revenues. An increasing number of tech companies are investing heavily in AI, and those who have integrated AI into their products have witnessed substantial growth.

Industry experts remain confident about AI's future potential, predicting continued demand as more chipmakers move into the AI arena. The Semiconductor Industry Association previously projected double-digit growth in 2025, further boosting optimism about the sector's ongoing expansion.

3 Semiconductor Stocks with Upside

Semtech

Semtech Corporation designs, manufactures and markets a wide range of analog and mixed-signal semiconductors for commercial applications. SMTC's product line comprises Signal Integrity Products, Protection Products, Power and High-Reliability Products, Wireless and Sensing Products, and Systems Innovation Group.

Semtech's expected earnings growth rate for the current year is 93.2%. The Zacks Consensus Estimate for current-year earnings improved 2.4% over the past 60 days. SMTC presently carries a Zacks Rank #2.

Magnachip Semiconductor

Magnachip Semiconductor Corporation operates as a designer and manufacturer of analog and mixed-signal semiconductor products for high-volume consumer applications. MX operates through three key segments: Display Solutions, Power Solutions and Semiconductor Manufacturing Services.

Magnachip Semiconductor Corporation's expected earnings growth rate for the current year is 14.3%. The Zacks Consensus Estimate for current-year earnings has improved 34% over the past 60 days. MX currently carries a Zacks Rank #2.

ASML Holding

ASML Holding N.V. is a world leader in the manufacture of advanced technology systems for the semiconductor industry. ASML offers an integrated portfolio for manufacturing complex integrated circuits. ASML Holdingdesigns, develops, integrates, markets and services advanced systems used by customers, which are the major global semiconductor manufacturers, to create chips that power a wide array of electronic, communications and information technology products.

ASML Holding's expected earnings growth rate for the current year is 30.8%. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past 60 days. ASML currently carries a Zacks Rank #2.

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/performancefor 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