Pegasystems and Macy's have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – July 2, 2025 – Zacks Equity Research shares Pegasystems PEGA as the Bull of the Day and Macy's M as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global's COIN, Robinhood Markets' HOOD and Block Inc.'s XYZ.

Here is a synopsis of all five stocks:

Bull of the Day:

Pegasystems is recognized for its low-code platform which enables businesses to build and automate workflows, manage customer relationships, and make data-driven decisions using AI.

The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with EPS expectations melting higher across the board over recent months.

The company also resides in the Zacks Computer – Software industry, which is currently ranked in the top 15% of all Zacks industries. Let's take a closer look at what's been driving the positivity behind the stock.

PEGA Benefits from AI

PEGA shares got swept up in broader market volatility back in February but have since recovered in a big way, up 12% overall in 2025 and outperforming relative to the S&P 500. Quarterly results have been notably positive concerning headline expectations, with PEGA exceeding the Zacks Consensus EPS estimate by an average of 94% across its last four releases.

Concerning the above-mentioned release, PEGA posted sales of $475 million, up a strong 44% from the year-ago period. Adjusted EPS totaled $0.76, more than tripling the $0.24 per share mark in the same period last year.

The outsized growth was fueled by strong demand, with the company also seeing 13% year-over-year annual contract value (ACV) growth alongside a 21% move higher in its backlog. Further adding to the positive environment, free cash flow of $202 million reflected a quarterly record.

PEGA's cash-generating abilities have seen a nice boost over recent periods. The amplified abilities provide many opportunities for the company, including paying down debt and reinvesting in the business, just for a couple simple examples.

Investors will have to fork up a premium for shares given the company's high-growth nature, with the current 28.2X forward 12-month earnings multiple reflecting a 25% premium relative to the S&P 500. Earnings are forecasted to grow 25% in its current fiscal year and an additional 5% in FY26, also sporting a Style Score of 'A' for Growth.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Pegasystems is currently a Zack Rank #1 (Strong Buy).

Bear of the Day:

Macy's, a current Zacks Rank #5 (Strong Sell), is a trusted retail source for quality brands through iconic nameplates including Macy's, Bloomingdale's, and Bluemercury. Headquartered in New York City, its digital and nationwide footprint helps to deliver a seamless shopping experience for customers.

Analysts have taken their EPS expectations lower over recent months, a negative signal concerning near-term share performance.

Let's take a closer look at what's been impacting the company.

Macy's Underperforms

Macy's shares have struggled year-to-date, down 25% and widely underperforming relative to the S&P 500. Quarterly releases throughout the year so far haven't been met with much positivity despite the company exceeding our consensus EPS estimates in back-to-back releases.

Sales of $4.8 billion fell 4.1% YoY throughout its latest period, with comparable store sales down 2.0% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis. While the decrease in comparable store sales is certainly notable, it's critical to note that the figures did exceed prior guidance, reflecting a level of positivity.

The gross margin for the period came in flat relative to the year-ago period as well, another added positive moving forward given its recent stretch of crunched profits.

Bottom Line

Negative earnings estimate revisions paint a challenging picture for the company's shares in the near term.

Macy's is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.

Additional content:

Here's Why Sales & Marketing Spending Is Pivotal for Coinbase

Coinbase Global's sales and marketing (S&M) spend is driving brand credibility, user acquisition and deeper customer engagement. In 2024, Coinbase nearly doubled its S&M spend to $654 million, an increase of 97% year over year, primarily due to higher digital advertising and expanded USDC rewards aimed at retaining assets on the platform. These efforts yielded strong results as monthly transacting users (MTUs) rose 14% to 8.4 million, assets on the platform more than doubled to $404 billion, and trading volume surged 148% to $1.16 trillion.

The close alignment between S&M spending and user activity demonstrates a strong return on investment. Notably, stablecoin-based rewards helped lift subscription and services revenues by boosting average on-platform balances. In the first quarter of 2025, S&M expenses reached $247 million, more than double year over year, driving a 17% increase in transaction revenues. Sales and marketing spend accounted for 10% of total revenues in 2024 and rose to 12% in the first quarter of 2025. Management estimates sales and marketing spend between $215 million and $315 million in the second quarter of 2025.

Coinbase's strategic use of marketing supports scalable growth, asset locking and monetization opportunities across its ecosystem. While increased S&M outlays may put pressure on margins in the near term, historical data suggests that every incremental marketing dollar has driven meaningful growth in volume and recurring income. As such, disciplined S&M investment remains a value-accretive driver of Coinbase's long-term shareholder returns.

What About COIN's Competitors?

Marketing expenses are critical to Robinhood Markets' performance, helping the platform attract and retain a broad base of retail investors in a competitive fintech landscape and supporting growth in assets under custody and transaction-based revenues. Robinhood's marketing expenses increased 57% year over year in the first quarter of 2025 and constituted 26.4% of total revenues.

Sales and marketing spending is also essential to Block Inc.'s growth, fueling expansion across its broad suite of financial services and strengthening relationships in a competitive fintech landscape. For Block, S&M increased 13.6% year over year in the first quarter of 2025 and constituted 8.7% of total revenues.

COIN's Price Performance

Shares of COIN have gained 37.3% year to date, outperforming the industry.

COIN's Expensive Valuation

COIN trades at a price-to-earnings value ratio of 60.33, above the industry average of 19.74. But it carries a Value Score of F.

Estimates for COIN Witness Northward Movement

The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved up 10.3% and 7.1%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 22.8% and 2.7%, respectively.

The consensus estimate for COIN's 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase.

COIN 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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