Core Viewpoint - Popular (BPOP) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. Business Improvement Indicators - The upgrade in ratings and rising earnings estimates suggest an improvement in Popular's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research supports the correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. Specifics on Popular's Earnings Estimates - For the fiscal year ending December 2025, Popular is expected to earn $10.54 per share, which remains unchanged from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Popular has increased by 4.8%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [8]. - Popular's upgrade to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

Market Overview - The stock market is experiencing a new wave of uncertainty due to geopolitical tensions and weaker-than-expected economic data, particularly in U.S. retail sales for May [1][2] - The Israel-Iran conflict has escalated, contributing to investor unease [1] - The upcoming Federal Reserve meeting is a focal point, with expectations that weak economic data may lead to a more dovish stance from policymakers [2] Investment Strategy - In the current volatile market environment, a value investing approach focusing on fundamentally strong companies with reasonable prices is recommended [3] - Companies with high earnings yields are highlighted as potential investment opportunities [3] Earnings Yield Insights - Earnings yield is a key metric for assessing potential returns, calculated by dividing earnings per share by stock price [4] - A higher earnings yield may indicate undervaluation, while a lower yield could suggest overvaluation [5] - Comparing earnings yield to the yield on 10-year Treasury bonds can help determine investment worthiness [5] Screening Criteria - The primary screening criterion is an earnings yield greater than 10% [6] - Additional parameters include estimated EPS growth exceeding the S&P 500 and an average daily trading volume of at least 100,000 shares [7][6] - Stocks must also have a current price of $5 or more [8] Selected Stocks - Five stocks with earnings yields above 10% and strong growth potential have been identified: - **Aris Mining Corporation (ARMN)**: Expected earnings growth of 226% and 81% for 2025 and 2026, respectively, with a Zacks Rank 1 [10] - **Quanex Building Products Corporation (NX)**: Projected earnings growth of 19.6% and 14% for 2025 and 2026, respectively, also with a Zacks Rank 1 [11] - **Heritage Insurance Holdings, Inc. (HRTG)**: Anticipated earnings growth of 62% and 13% for 2025 and 2026, respectively, with a Zacks Rank 1 [12] - **Popular, Inc. (BPOP)**: Expected earnings growth of 17% and 20% for 2025 and 2026, respectively, holding a Zacks Rank 1 [13] - **Priority Technology Holdings Inc. (PRTH)**: Projected earnings growth of 108% and 34% for 2025 and 2026, respectively, with a Zacks Rank 1 [14]

Group 1 - The article highlights the importance of financial management expertise in shaping corporate financial strategies and executing large-scale financings [1] - It discusses the efforts made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - The development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing is also emphasized [1] Group 2 - The analyst has over a decade of experience in financial management, indicating a strong background in the industry [1] - The analyst holds a CFA Charter and an ESG investing certificate, showcasing a commitment to professional development and sustainable investing [1] - Active involvement in thought-leadership activities to support the development of pan-Baltic capital markets is noted, reflecting a proactive approach to industry advancement [1]

Group 1: Palantir Technologies - Palantir's share price has increased 2,000% since January 2023, but analysts suggest a sell rating due to a median target price of $60, implying a 55% downside from the current price of $136 [1][7]. - The company reported a 39% increase in revenue to $884 million and a 62% increase in non-GAAP net income to $0.13 per diluted share, with a projected revenue growth of 36% in 2025 [6]. - Palantir is recognized as a technology leader in AI and machine learning, with its software being applicable across various industries, enhancing operational decision-making [4][5]. Group 2: Nvidia - Nvidia's share price has increased 875% since January 2023, with a median target price of $175, suggesting a 22% upside, although one analyst has a sell rating with a target price of $100, indicating a 30% downside [1][2][7]. - The company reported a 69% increase in revenue to $44 billion and a 33% increase in non-GAAP net income to $0.81 per diluted share, driven by strong demand for AI infrastructure [11]. - Nvidia faces challenges due to export restrictions and capacity constraints with its Blackwell product line, which may limit upside potential, but the overall demand for data center GPUs and AI spending is expected to grow significantly [12][13][14].

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

Market Overview - The stock market has started June positively, with Wall Street aiming to push the S&P 500 and Nasdaq to new all-time highs, supported by cooling trade war tensions, lower inflation, and strong earnings results driven by tech growth and AI spending [1] - However, achieving these highs may be challenging until the second quarter earnings season begins in mid-July, unless there are significant updates on trade wars or declining long-term yields [2] Stock Screening Strategy - The stock screening process utilizes the Research Wizard to identify Zacks Rank 1 (Strong Buy) stocks, focusing on those with upward price momentum and trading within 20% of their 52-week highs [3][4] - The screening criteria include a PEG ratio and Price to Sales ratio to ensure value, ultimately narrowing down to seven stock picks [4] Featured Stock: Popular (BPOP) - Popular (BPOP) is highlighted as a leading financial services company in Puerto Rico, the U.S., and the Virgin Islands, being the largest bank in Puerto Rico by assets and deposits [5][7] - The company has shown strong performance, with a recent quarter that exceeded expectations, leading to a 5% increase in FY25 consensus earnings estimates and a 9.4% increase for 2026 [9] - BPOP's adjusted EPS is projected to grow by 17% this year and 20% next year, supported by a 7% increase in sales for both periods [9] Performance Metrics - Over the past decade, BPOP's stock has increased by 210%, significantly outperforming the Zacks Finance sector, including a 14% rise in 2025 [10] - The stock recently reached 52-week highs and is currently trading 8% below its average Zacks price target, indicating potential for further growth [10] - BPOP trades at a 45% discount to the Finance sector with a forward earnings multiple of 9.2X, which is in line with its 10-year median [14] - The company offers a dividend yield of 2.65%, which is competitive within its industry, with a majority of brokerage recommendations being "Strong Buys" or "Buys" [14]

Core Insights - Popular, Inc. (BPOP) shares reached a 52-week high of $107.15, with a 10.6% increase over the past six months, outperforming its industry and peers [1][6] Financial Performance - The company achieved a four-year compound annual growth rate (CAGR) of 5.6% in revenues, 6.8% in net loans, and 3.4% in total deposits from 2020 to 2024, indicating strong organic growth [4] - Net interest income (NII) grew at a CAGR of 5.3% during the same period, supported by increased loan balances and improved asset yields [7] - The net interest margin (NIM) expanded from 2.88% in 2021 to 3.40% in Q1 2025, with expectations for further improvement due to loan repricing and declining deposit costs [7] Sales and Earnings Estimates - Zacks Consensus Estimates project sales of $3.13 billion for 2025, reflecting a year-over-year growth of 6.54% [5] - Earnings estimates for 2025 and 2026 have been revised upward by 1.2% and 4.6%, respectively, indicating expected growth of 17.1% for 2025 and 20% for 2026 [14] Strategic Initiatives - The company has invested $300 million in technology infrastructure and made strategic acquisitions to enhance efficiency and client experience since launching its transformation program in 2022 [8] - A $500 million share repurchase program was initiated in August 2024, with $160 million remaining as of March 31, 2025 [10] Liquidity and Capital Management - Popular maintains a robust liquidity position of $6.6 billion and total debt of $1.4 billion, indicating low refinancing risk [9] - The company raised its quarterly dividend by 12.9% to $0.70 per share in late 2024, with an annualized dividend growth of 12.86% over the past five years [9] Profitability Metrics - BPOP's trailing 12-month return on equity (ROE) is 12.22%, significantly higher than the industry average of 9.74% and its peers, F.N.B. (7.97%) and Pinnacle Financial Partners (9.29%) [10][11] Challenges - Operating costs have increased at a CAGR of 6.7% from 2020 to 2024, primarily due to technology investments and personnel expenses [12] - The credit profile faces challenges, with nearly 50% of the loan portfolio in commercial loans, which are more vulnerable in a weakening economic environment [13] Valuation - BPOP trades at a P/E (F1) multiple of 10.04X, which is lower than the industry average of 11.1X, indicating a potentially attractive investment opportunity [16][20]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at various firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

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Group 1: Company Overview - Popular (BPOP) is a stock within the Finance sector, which consists of 857 companies and ranks 5 in the Zacks Sector Rank [2] - Popular has a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - BPOP has returned 10.6% year-to-date, outperforming the Finance sector's average return of 5.4% [4] - The Zacks Consensus Estimate for BPOP's full-year earnings has increased by 4.8% over the past quarter, reflecting improved analyst sentiment [4] Group 3: Industry Comparison - Popular is part of the Banks - Southeast industry, which has 53 companies and currently ranks 62 in the Zacks Industry Rank; this industry has an average loss of 6.9% year-to-date, indicating BPOP's relative strength [6] - In contrast, Progressive (PGR), another Finance sector stock, has a year-to-date return of 20.5% and a Zacks Rank of 2 (Buy) [5][7]