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Chicago, IL – May 28, 2025 – Zacks Equity Research shares Herbalife HLF as the Bull of the Day and Abercrombie and Fitch ANF as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Rigetti Computing RGTI and IBM Corp. IBM.
Here is a synopsis of all four stocks.
Herbalife is a Zacks Rank #1 (Strong Buy) that has an A for Value and a D for Growth. A few years this stock saw wall to wall coverage as Bill Ackman held a sizeable short position in company and made a public spectacle when he and another billionaire debated on live TV. It has been a long time since HLF demanded that much attention, but it looks like they are back on the right path. Let’s explore more about why this stock is the Bull of the Day.
Herbalife Ltd. is a holding company, which engages in the provision of health and wellness products. It operates through the following geographical segments: North America, Latin America, EMEA, Asia Pacific, and China. The company was founded by Mark Reynolds Hughes in February 1980 and is headquartered in Los Angeles, CA.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Herbalife has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 133% over the last year.
The most recent earnings print saw the company post $0.59 when the consensus was at $0.40. That 19 cent beat translates into a positive earnings surprise of 47.5%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Herbalife.
The full year 2025 has seen a big move, going from $1.74 to $1.91 over the last 30 days.
2026 saw a move higher as well, going from $2.26 to $2.30 over the same period.
The forward PE of 3.5x is which is very low, but reasonable given the growth contraction the company posted in the most recent quarter. Price to sales at 0.14x could prove to be rather low if the company continues to post solid revenue growth.
Margins have been improving over the last three quarters going from 3.8% to 4% to 4.23% in the most recent quarter.
Abercrombie and Fitch is a Zacks Rank #5 (Strong Sell) despite the fact that the company beat last quarter, the company is reporting before the bell today. This article was published before the company posted the latest results. The retail sector has been plagued by the tariff tantrum that the market is facing. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Abercrombie and Fitch I see the company has beat the Zacks Consensus Estimate in each of the last four quarters. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For Abercrombie and Fitch I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $11.06 to $10.64 over the last 60 days.
The next year has moved from $11.68 to $11.08 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
As quantum computing inches closer to practical, real-world applications, investors are turning their attention to the companies leading the charge in this transformative technology. Rigetti Computing and IBM Corp. are two prominent players in the quantum space, each with distinct approaches and advantages. Rigetti, a nimble startup, focuses on building cutting-edge quantum processors and scalable systems, while IBM leverages its decades-long expertise and vast resources to develop a comprehensive quantum ecosystem that integrates hardware, software, and cloud services.
Both companies are rapidly expanding their quantum capabilities and securing partnerships with governments, research institutions, and enterprises eager to use quantum power. As the quantum computing market shifts from experimental research to commercial use, this faceoff compares Rigetti and IBM on technology, business models, and growth strategies, helping investors identify which stock offers better long-term upside in the emerging quantum era.
Shares of Rigetti have plunged 8.2%, while IBM stock has gained 17.6% in the year-to-date period.
From a valuation standpoint, IBM looks more attractive than RGTI. According to the price/book ratio, IBM’s shares currently trade at 8.92, lower than 19.43 for Rigetti.
Rigetti uses a modular quantum architecture that scales by linking smaller chips. Its latest Ankaa-3 system features 84 superconducting qubits with approximately 99.5% two-qubit gate fidelity, enabled by its proprietary ABAA process. Rigetti emphasizes AI-assisted calibration and error reduction to boost performance. It plans to launch a 36-qubit system in mid-2025 and exceed 100 qubits by year-end. Though innovative, its systems remain smaller in scale compared to industry leaders.
IBM deploys a highly integrated quantum stack, led by its 133-qubit Heron processor, which improves error rates and reduces crosstalk over its Eagle predecessor. Its modular architecture supports interconnecting processors like the 1,121-qubit Condor, forming the backbone of Quantum System Two for scalable hybrid computing. With strong cloud integration, global infrastructure, and developer support via Qiskit, IBM remains a leader in practical, scalable quantum technology.
Rigetti adopts a focused, hardware-first business model tailored to quantum computing, centered around its proprietary modular chip architecture and cloud-based Quantum Cloud Services. It monetizes through direct system access, strategic partnerships, and integration with platforms like Amazon Braket and Azure Quantum. Rigetti targets niche enterprise and research segments, offering flexible deployment and AI-assisted system calibration.
In contrast, IBM leverages its vast resources to deliver a full-stack quantum computing model, combining hardware, software (Qiskit), and services under the IBM Quantum Platform. It commercializes through cloud access, consulting, and its 280+ member IBM Quantum Network, which includes Fortune 500 firms and academic institutions. With over $1 billion in cumulative quantum revenue and multi-billion-dollar R&D investments, IBM’s business model emphasizes ecosystem dominance, global infrastructure, and long-term enterprise integration.
Rigetti's growth strategy centers on scaling modular quantum systems, advancing hardware via ABAA fabrication and AI calibration, and targeting a 108-qubit system by the end of 2025 with halved error rates. It is expanding manufacturing through a $250M Quanta partnership and boosting cloud integration to widen access. While innovation-driven and agile, the strategy is limited by financial constraints and a smaller customer base.
IBM's growth strategy focuses on quantum-centric supercomputing via a long-term roadmap, interconnecting modular chips like the 1,121-qubit Condor to achieve fault tolerance. It targets quantum advantage by 2026 through efforts like the “100×100 challenge” and Quantum System Two. Leveraging global infrastructure, enterprise partnerships, and strong R&D funding, IBM prioritizes scalability, reliability, and commercial adoption worldwide.
The Zacks Consensus Estimate for RGTI’s 2025 sales implies a year-over-year decline of 18.63%. For 2025, loss per share is projected to be 5 cents compared with 36 cents a year ago. The earnings estimates have been trending upward over the past 60 days.
The Zacks Consensus Estimate for IBM’s 2025 sales and earnings implies year-over-year growth of 5.5% and 6%, respectively. The earnings estimates have been trending upward over the past 60 days.
Both Rigetti and IBM are advancing in the quantum computing space, but they differ significantly in scale, strategy, and market positioning. IBM holds a Zacks Rank #3 (Hold) with a strong Growth Score of ‘A’, reflecting solid potential driven by its expansive infrastructure, global partnerships, and ambitious quantum roadmap. Rigetti, on the other hand, carries a Zacks Rank #4 (Sell), indicating a challenging short-term prospect. However, its Growth score of ‘B’ reflects upside potential once the challenges subside.
While Rigetti remains a compelling small-cap innovator with modular architecture and technical focus, IBM’s full-stack capabilities and enterprise reach give it an edge for investors seeking more stability and long-term commercial traction in the quantum sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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