A month has gone by since the last earnings report for Popular (BPOP) . Shares have added about 7.4% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Popular due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Popular Q4 Earnings Beat E ...

Core Viewpoint - The American retail landscape is facing significant challenges, with three major retailers—Dollar Tree, Kohl's, and Macy's—showing signs that they could potentially go out of business by the end of the year due to weak financial fundamentals and consumer sentiment [1]. Group 1: Dollar Tree - Dollar Tree reported Q3 revenue of $4.75 billion, reflecting a 9.4% year-over-year growth, and beat EPS estimates with $1.21 [1]. - The company generated $958.5 million in operating cash flow but had capital expenditures of $870.3 million, resulting in a free cash flow of only $88.2 million [1]. - Dollar Tree's total liabilities stand at $10.19 billion against equity of $3.46 billion, raising concerns about its financial stability [1]. Group 2: Kohl's - Kohl's achieved Q3 revenue of $3.58 billion and adjusted EPS of $0.10, marking its third consecutive quarter of beating expectations [1]. - However, revenue declined by 2.8% year-over-year, and net income fell by 63.64% to just $8 million, with cash reserves dropping 17.24% to $144 million [1]. - The stock has increased by 65% over the past year, but shareholders have lost 63.5% over the last five years, indicating a lack of long-term confidence [1]. Group 3: Macy's - Macy's reported Q3 revenue of $4.713 billion, beating EPS estimates with $0.09, and comparable sales grew by 2.5% [1]. - Despite this, revenue declined by 3.88% year-over-year, and net income dropped by 60.71% to just $11 million [1]. - The company returned $99 million to shareholders through dividends and buybacks, which is unsustainable given its current financial performance [1]. Group 4: Common Challenges - All three retailers exhibit a lack of financial cushion, with Kohl's net income at $8 million, Dollar Tree's free cash flow at $88 million, and Macy's net income at $11 million [1]. - They face significant financial pressure if consumer spending remains weak, especially as they need to invest in digital transformation to compete effectively [1].

Core Viewpoint - TJX Companies Inc is experiencing a slight decline of 0.7% in its stock price to $156.19 as investors await the upcoming quarterly earnings report scheduled for February 25 [1] Group 1: Earnings Expectations - The fourth-quarter earnings report is anticipated to be released before the market opens on February 25 [1] - Historically, TJX has seen its stock price increase the day after earnings reports seven times in the last two years [1] - The average stock price movement following earnings in this period has been 2.2% [1] Group 2: Market Sentiment - Options trading indicates a larger-than-usual expected price swing of 5.1% for this earnings report, regardless of the direction [1]

Core Insights - Retirees are benefiting from strong performance in dividend stocks in 2026, with notable gains in companies like Verizon, Honeywell, and Chevron, as investors seek stability amid tech stock volatility [1] Group 1: Company Performance - Verizon Communications (VZ) has achieved a year-to-date gain of 20.6% and offers a high yield of 5.9%, with a quarterly dividend increase to $0.7075 per share [1] - Honeywell International (HON) has seen a 23.1% increase year-to-date, although it faces restructuring challenges as it splits into automation and aerospace units [1] - Chevron Corporation (CVX) has delivered a 19.1% return year-to-date, with strong cash flow generation and a quarterly dividend increase to $1.78 per share [1] Group 2: Financial Metrics - Verizon's free cash flow surged 285% year-over-year to $20.13 billion, driven by the Frontier acquisition, with projections for free cash flow exceeding $21.5 billion in 2026 [1] - Honeywell reported a free cash flow increase of 33% year-over-year to $2.51 billion, despite missing revenue expectations [1] - Chevron's free cash flow climbed 26% year-over-year to $5.5 billion, with a 12% increase in worldwide production [1] Group 3: Dividend Reliability - Honeywell has raised its dividend for 23 consecutive years, with a 2025 payout of $4.58 per share, reflecting a 4.8% increase from 2024 [1] - Chevron has a history of uninterrupted dividend increases, marking decades of consistent payouts [1] - Verizon has also increased its dividend for 19 consecutive years, showcasing its commitment to returning value to shareholders [1]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the next 30 days [2] - Stocks receive an alphabetic rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even if they have high Style Scores, may still face downward price trends [10] Company Spotlight: Popular, Inc. - Popular, Inc. (BPOP) is a financial services provider with a Zacks Rank of 2 (Buy) and a VGM Score of B, making it attractive for momentum investors [11] - BPOP's shares have increased by 10.2% over the past four weeks, and its earnings estimate for fiscal 2026 has risen by $0.56 to $14.31 per share [12] - The company has an average earnings surprise of +11.8%, indicating strong performance potential [12]

Core Viewpoint - Vanguard Growth ETF (VUG) has a significant concentration in three stocks: NVIDIA, Apple, and Microsoft, which together account for 35.24% of the fund's portfolio, highlighting the risks associated with sector concentration in technology [1] Group 1: Fund Performance and Structure - VUG has $349.9 billion in assets and a low expense ratio of 0.04%, providing cost-effective exposure to major technology companies [1] - Over the past ten years, VUG has returned 443%, outperforming the S&P 500's 272% return, driven by its focus on transformative technology companies [1] - The fund's concentrated technology exposure has made it vulnerable to market shifts, particularly as rising interest rates have led to a rotation towards value stocks [1] Group 2: Investment Strategy and Risks - VUG is not a diversified growth fund; it heavily invests in technology, which represents 51.9% of its holdings, indicating a high sector-specific risk [1] - The ETF is suitable for long-term investors who believe in continued technology growth, accepting higher volatility for potential outperformance [1] - The fund's construction emphasizes growth over stability, lacking defensive sector exposure, which could provide a cushion during market downturns [1]

Core Viewpoint - American Eagle Outfitters Inc (NYSE:AEO) has experienced a pullback from four-year highs but is currently above significant technical support levels, indicating potential stability in the stock price [1] Group 1: Stock Performance - AEO's stock is positioned just above the put-heavy 23 strike, which is close to its December low following a post-earnings bull gap [1] - The stock has achieved a 40% year-over-year gain, reflecting strong performance despite recent fluctuations [2] Group 2: Analyst Ratings and Market Sentiment - Out of 13 analysts covering AEO, 11 rate it as a "hold" or worse, indicating a generally cautious outlook [2] - Short interest in AEO represents 10.8% of the stock's available float, suggesting a significant level of bearish sentiment among investors [2] Group 3: Options Market Insights - Historical data since 2021 indicates that AEO has seen strong call option returns on Fridays when the stock was below its ascending 50-day moving average, highlighting potential trading opportunities [2]

Core Viewpoint - Chip stocks Qualcomm Inc and Arm Holdings PLC are experiencing divergent market reactions, with Qualcomm facing a significant decline due to a disappointing outlook despite beating earnings, while Arm is recovering from earlier losses after reporting better-than-expected earnings and revenue, despite missing licensing sales estimates. Both companies are affected by rising memory-chip prices [1]. Qualcomm (QCOM) - Qualcomm's stock is down 9.4%, trading at $134.77, following downgrades to "neutral" from Susquehanna and BofA Global Research [2]. - The stock has experienced at least 10 price-target cuts and is on track for its worst trading day since April, breaking below the $150 support level, with a year-over-year deficit of 21.9% [2]. - Options volume for Qualcomm is running at four times the intraday average, with the most active contract being the February 160 call [4]. Arm Holdings (ARM) - Arm's stock is up 1.1%, trading at $106.07, despite facing at least 11 price-target cuts, including a reduction from HSBC to $90 from $105 [3]. - The stock rebounded from the $100 level after reaching its lowest point since April, but has lost over 38% in the past 12 months [3]. - Options volume for Arm is three times the typical amount, with the most active contract being the weekly 2/6 110-strike call [4].

Core Viewpoint - Popular (BPOP) has shown strong stock performance, with a 9.6% increase over the past month and a 13.6% gain since the beginning of the year, outperforming the Zacks Finance sector and the Zacks Banks - Southeast industry [1] Company Performance - Popular has consistently exceeded earnings expectations, reporting an EPS of $3.38 against a consensus estimate of $3.02 in its last earnings report [2] - The stock has reached a new 52-week high of $145.34, raising questions about its future performance and valuation metrics [1][3] Valuation Metrics - Popular's current trading metrics include a P/E ratio of 9.9X for the current fiscal year EPS estimates, below the peer industry average of 11.2X, and a trailing cash flow basis P/E of 22.3X compared to the peer average of 12.6X [6] - The stock has a PEG ratio of 0.88, positioning it favorably among value investors [6] Zacks Rank and Style Scores - Popular holds a Zacks Rank of 2 (Buy) due to a positive earnings estimate revision trend, indicating potential for further stock price appreciation [7] - The stock has a Value Score of A, a Growth Score of D, and a Momentum Score of A, resulting in a combined VGM Score of B [5][7] Industry Comparison - The Banks - Southeast industry is performing well, ranking in the top 16% of all industries, providing a favorable environment for both Popular and its peers [10] - Hilltop Holdings Inc. (HTH), a competitor, has a Zacks Rank of 1 (Strong Buy) and has also shown strong earnings performance, beating consensus estimates by 50% [8][9]

Core Viewpoint - Popular (BPOP) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Popular, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to upward pressure on its stock price [5][8]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Popular to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, Popular is expected to earn $14.31 per share, unchanged from the previous year, but analysts have raised their estimates by 4.9% over the past three months [8].