Market Overview - U.S. stock markets faced a setback in 2025 following a significant bull run driven by artificial intelligence in 2023 and 2024, with the Nasdaq Composite rising 43.4% in 2023 and 28.6% in 2024, but only up 0.9% year to date in 2025 [1] Non-Tech Stock Performance - Despite the overall poor performance of the Nasdaq index, several large-cap non-tech stocks have seen substantial gains, with some achieving over 20% returns year to date, indicating potential investment opportunities [2][9] Recommended Stocks - Five non-tech stocks are recommended for investment: Sprouts Farmers Market Inc. (SFM), Royal Gold Inc. (RGLD), Thomson Reuters Corp. (TRI), Woodward Inc. (WWD), and Exelixis Inc. (EXEL), all carrying favorable Zacks Ranks [3][9] Sprouts Farmers Market Inc. (SFM) - SFM, with a Zacks Rank 1, focuses on product innovation, e-commerce, and private label offerings, leading to better-than-expected fourth-quarter 2024 results with year-over-year growth in both revenue and earnings [6] - For 2025, SFM expects net sales to rise between 10.5% and 12.5%, with comparable store sales anticipated to increase by 4.5% to 6.5% [7] - SFM has an expected revenue growth rate of 13.7% and earnings growth rate of 35.5% for the current year, with a 9% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [8] Royal Gold Inc. (RGLD) - RGLD, also with a Zacks Rank 1, benefits from solid streaming agreements and maintains a strong balance sheet, focusing on dividends, debt reduction, and new business opportunities [10] - Current gold prices around $3,400 per ounce, driven by U.S. tariff policies and geopolitical conflicts, are expected to enhance RGLD's results in upcoming quarters [11] - RGLD has an expected revenue growth rate of 24.1% and earnings growth rate of 35.9% for the current year, with a 0.6% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [12] Thomson Reuters Corp. (TRI) - TRI, with a Zacks Rank 2, operates as a content and technology company across various regions and segments, providing value-added information and technology [13][14] - The company has an expected revenue growth rate of 3.2% and earnings growth rate of 4.2% for the current year, with a 1.3% improvement in the Zacks Consensus Estimate for earnings over the last 60 days [14] Woodward Inc. (WWD) - WWD, also with a Zacks Rank 2, benefits from strong demand in its Aerospace and Core Industrial units, with a positive outlook driven by increased defense spending and solid demand for power generation [15][16] - WWD has an expected revenue growth rate of 3.7% and earnings growth rate of 2.1% for the current year, with a 0.3% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [17] Exelixis Inc. (EXEL) - EXEL, with a Zacks Rank 2, reported better-than-expected first-quarter 2025 results, driven by strong demand for its lead drug, Cabometyx, and recent label expansions [18][19] - The company has an expected revenue growth rate of 7.4% and earnings growth rate of 30.5% for the current year, with a 1.6% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [20]

Core Insights - Exelixis has made significant advancements in its pipeline due to two recent key developments [2] Group 1: Company Developments - Exelixis' partner Ipsen received a positive opinion from the European Medicines Agency, which is a crucial step for the company's product pipeline [2]

Core Insights - Exelixis (EXEL) is currently viewed as a more attractive investment compared to argenex SE (ARGX) for value investors due to its stronger earnings outlook and better valuation metrics [3][7]. Valuation Metrics - EXEL has a forward P/E ratio of 17.95, significantly lower than ARGX's forward P/E of 41.38, indicating that EXEL is potentially undervalued [5]. - The PEG ratio for EXEL is 0.85, while ARGX has a PEG ratio of 0.96, suggesting that EXEL offers better value relative to its expected earnings growth [5]. - EXEL's P/B ratio stands at 5.38, compared to ARGX's P/B of 6.39, further supporting the notion that EXEL is more attractively priced [6]. Investment Ratings - EXEL holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ARGX has a Zacks Rank of 3 (Hold) [3]. - The Value grade for EXEL is B, whereas ARGX has a Value grade of C, reflecting EXEL's superior valuation metrics [6].

Core Insights - The article discusses the importance of a hybrid investing strategy, particularly the GARP (Growth at a Reasonable Price) approach, in navigating market uncertainties and achieving better investment outcomes [1][2]. GARP Strategy - GARP combines principles of both growth and value investing, focusing on stocks that are undervalued yet have sustainable growth potential [4]. - The PEG (Price/Earnings Growth) ratio is a key metric in GARP investing, helping to identify stocks with solid future potential by relating P/E ratios to future earnings growth rates [5][6]. Stock Analysis - Four stocks are highlighted as successful examples of the GARP strategy: Flex Ltd. (FLEX), CVS Health (CVS), Urban Outfitters (URBN), and Exelixis (EXEL) [3][11]. - FLEX has a historical growth rate of 35.1% and a Zacks Rank of 2, indicating strong potential [12]. - CVS Health has a long-term expected growth rate of 11.4% and also holds a Zacks Rank of 2 [14]. - Urban Outfitters has a 20% earnings growth rate over the last five years and a Zacks Rank of 1, making it a strong GARP candidate [15]. - Exelixis boasts a long-term expected earnings growth rate of 21.2% and a Zacks Rank of 2 [17]. Screening Criteria - The stocks selected for GARP investment must have a PEG ratio below the industry median, a solid earnings outlook, and a Zacks Rank of 1 or 2 [8][9]. - Additional criteria include a market capitalization greater than $1 billion and an average 20-day trading volume exceeding 50,000 [9][10].

Company Overview - Exelixis shares have decreased by approximately 7.2% over the past month, underperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the key drivers affecting the stock [1] Earnings Estimates - Estimates for Exelixis have trended upward in the past month, with the consensus estimate shifting by 15.91% [2] VGM Scores - Exelixis has a strong Growth Score of A and a momentum score of A, with a value score of B, placing it in the top 40% for this investment strategy [3] - The aggregate VGM Score for Exelixis is A, indicating strong overall performance across multiple investment strategies [3] Outlook - The upward trend in estimates suggests a promising outlook for Exelixis, which holds a Zacks Rank 2 (Buy) [4] - An above-average return is expected from the stock in the upcoming months [4] Industry Performance - Exelixis is part of the Zacks Medical - Biomedical and Genetics industry, where Puma Biotech has gained 22.1% over the past month [5] - Puma Biotech reported revenues of $46 million for the last quarter, reflecting a year-over-year increase of 5% [5] - Puma Biotech's expected earnings for the current quarter are $0.11 per share, indicating a significant change of 320% from the previous year [6] - Puma Biotech also holds a Zacks Rank 2 (Buy) and has a VGM Score of A [6]

Group 1: Olo - Olo is a software-as-a-service (SaaS) provider that assists restaurants with digital ordering, delivery, and customer engagement, transitioning from unprofitable growth to a turnaround story with positive earnings [4][5] - Currently holds a Zacks Rank 2 (Buy), with revenue expected to grow by 19.1% this year and 17.6% next year, while earnings are forecasted to rise by 41% this year and 18.3% next year [5] - The stock is showing technical momentum, with a potential breakout above the $8.95 resistance level, indicating strong investor interest [6] Group 2: Palomar Holdings - Palomar Holdings is a specialty insurer focused on property and casualty risks, particularly in underserved markets like earthquake and hurricane insurance [8] - Currently holds a Zacks Rank 1 (Strong Buy), with EPS expected to grow by 39.9% this year and 17% in 2025, and revenue forecasted to rise by 42.3% this year and 26.4% next year [10] - Despite a 180% gain over the last 18 months, the stock is experiencing a healthy pullback, presenting a potential buying opportunity for investors [11] Group 3: Exelixis - Exelixis is a biotechnology company focused on developing cancer treatments, with a strong oncology pipeline and a commitment to profitability [14] - Currently holds a Zacks Rank 2 (Buy), with FY25 EPS estimates raised by 13% and FY26 estimates up by 7.1%, indicating growing confidence in the company's growth outlook [15] - The stock is showing signs of technical momentum, with a potential breakout above the $43.70 level, supported by a favorable fundamental backdrop [16] Group 4: Investment Considerations - Exelixis, Olo, and Palomar Holdings present a compelling mix of strong fundamentals, favorable earnings revisions, and attractive valuations, making them worthy of investor attention [18]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Exelixis (EXEL) has shown strong performance in 2023, with shares increasing by 28.1% year-to-date, outperforming the industry and the S&P 500 Index, which declined by 3.5% [1][2]. Group 1: Company Performance - The positive performance of Exelixis is attributed to strong quarterly results, raised guidance, label expansion of its lead drug Cabometyx, and efforts to enhance shareholder returns [4]. - The FDA expanded Cabometyx's label for patients with previously treated advanced neuroendocrine tumors (NET), which is expected to further drive sales [6][7]. Group 2: Product Strengths - Cabometyx remains the leading tyrosine kinase inhibitor (TKI) for renal cell carcinoma (RCC) and is also approved for use in combination with Bristol Myers' Opdivo, contributing to strong sales [5][6]. - The recent label expansion for Cabometyx makes it the first and only systemic treatment FDA-approved for previously treated NET, regardless of tumor site or grade [7]. Group 3: Pipeline Development - Exelixis is advancing its oncology pipeline, focusing on zanzalintinib, a next-generation oral TKI, with promising results from studies in metastatic colorectal cancer [8][9]. - Collaboration with Merck to evaluate zanzalintinib in combination with Keytruda for head and neck squamous cell carcinoma is also underway [10]. Group 4: Shareholder Value Initiatives - The company has authorized stock repurchase programs totaling $1 billion to enhance shareholder value, with significant repurchases already completed [12]. - These efforts are expected to boost returns for shareholders [17]. Group 5: Valuation and Estimates - Exelixis shares are currently trading at a price/sales ratio of 4.75x forward sales, which is higher than the biotech industry's average of 1.69x [13]. - Earnings estimates for 2025 and 2026 have increased, indicating positive growth expectations [15][16].

Summary of Exelixis Conference Call Company Overview - **Company**: Exelixis - **Industry**: Biotechnology, specifically oncology Key Points and Arguments 1. **Recent Developments**: Exelixis has recently presented promising data for its lead pipeline program, zanzalutinib, at the ASCO conference, marking a significant period for the company [2][3] 2. **Pipeline Progress**: The company is currently running six pivotal studies for zanzalutinib, with two expected to read out later this year, indicating strong momentum in their clinical development [3][4] 3. **Market Opportunity**: The colorectal cancer (CRC) market opportunity is estimated at around $1 billion, split evenly between patients with liver metastases and those without [12] 4. **Clinical Strategy**: Exelixis is focused on maximizing the probability of success in their trials by adjusting study designs based on emerging clinical data, particularly regarding the differences in patient populations [10][12] 5. **Partnership with Merck**: The collaboration with Merck is strategic, allowing Exelixis to leverage Merck's expertise while sharing costs and risks in clinical studies [18][48] 6. **Differentiation of Zanzalutinib**: Zanzalutinib is designed to have a shorter half-life than cabozantinib (Cabo), which may allow for better patient adherence and management of adverse events [24][26] 7. **Market Share and Growth**: Exelixis has seen an increase in market share in the first-line RCC (renal cell carcinoma) treatment, contrary to previous expectations of plateauing [51][53] 8. **Future Studies**: The company plans to explore additional studies in head and neck cancers and other tumor types, indicating a broad ambition for zanzalutinib as a backbone therapy [46][47] Important but Overlooked Content 1. **Patient Management**: The focus on how adverse events are managed with zanzalutinib compared to Cabo highlights the importance of patient experience in treatment adherence [25][26] 2. **Conservative Market Projections**: Exelixis aims to set realistic market expectations, suggesting a cautious approach to growth projections in the head and neck cancer market [39][41] 3. **Familiarity with Cabo**: The familiarity of physicians with Cabo is seen as a positive indicator for the adoption of Cabo in neuroendocrine tumors (NETs), despite the late-line treatment setting [56] This summary encapsulates the key insights from the Exelixis conference call, focusing on the company's strategic direction, clinical developments, and market positioning within the oncology sector.

Exelixis (EXEL) FY Conference Summary Company Overview - Exelixis is a commercial oncology company primarily known for its leading drug CABOMETYX, which is a standard of care in kidney cancer, generating approximately $2 billion annually with aspirations to grow to $3 billion by 2030 [6][10][14] - The company is also focusing on its pipeline drug, zanzalutinib, with potential revenue projections of $5 billion by 2033 [6][10] Key Points and Arguments Industry Position and Market Dynamics - Exelixis has established itself among major pharmaceutical players, as evidenced by its presence at the ASCO conference [5][4] - The company has successfully navigated challenges such as ANDA litigation, allowing it to redefine its market position [6][10] Financial Strategy and Capital Allocation - Exelixis allocates capital in three main areas: internal pipeline investment (approximately $1 billion annually), external innovation opportunities, and stock buybacks [11][14] - The company emphasizes a disciplined approach to R&D spending, aiming to prioritize successful projects and discontinue those that do not meet standards [12][14] Product Performance and Market Share - CABOMETYX has been gaining market share in the TKI space, particularly among new patients, with a strong commercial organization driving this momentum [15][16] - The company reported a favorable response to its Q1 performance, indicating a "beat and raise" quarter [15] New Indications and Launch Strategies - Exelixis is optimistic about the launch of CABOMETYX for neuroendocrine tumors (NET), leveraging existing familiarity among prescribers who already use CABOMETYX for other indications [20][21] - The company has detailed 70% of the prescriber base for NET within the first few weeks of launch, indicating strong initial uptake [20] Drug Development and Clinical Trials - Zanzalutinib is positioned as a next-generation drug with a significantly shorter half-life (approximately 23 hours) compared to CABOMETYX (around 100 hours), potentially improving patient management and tolerability [31][32] - The company is preparing for pivotal readouts later in the year for Zanzalutinib, which will provide more clarity on its efficacy and tolerability [34] Regulatory and Market Research Insights - The broad label for CABOMETYX in NET reflects its effectiveness across various subtypes, which is supported by consistent market research findings [25][26] - The company is focused on generating robust data to establish new standards of care, particularly in non-clear cell RCC, where it aims to provide pivotal data that has been lacking in the market [44][46] Additional Important Insights - Exelixis operates with a "big small company" mentality, allowing it to scale operations effectively while maintaining agility in decision-making [13][14] - The company is committed to maximizing value creation through strategic investments and maintaining a strong focus on patient treatment outcomes [7][8]