Core Viewpoint - The article compares Fortrea Holdings Inc. (FTRE) and Prothena (PRTA) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - Fortrea Holdings Inc. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Prothena has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that FTRE is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - FTRE has a forward P/E ratio of 13.51, significantly lower than PRTA's forward P/E of 43.81 [5] - FTRE's PEG ratio is 0.30, indicating a more attractive valuation compared to PRTA's PEG ratio of 1.87 [5] - FTRE's P/B ratio is 1.61, while PRTA's P/B ratio is slightly higher at 1.62, contributing to FTRE's superior valuation metrics [6] Group 3: Value Grades - FTRE has a Value grade of A, whereas PRTA has a Value grade of F, highlighting FTRE's stronger position in terms of value investment criteria [6] - The combination of Zacks Rank and Style Scores indicates that FTRE is the more favorable option for value investors at this time [6]

Group 1 - Curreen Capital reported a return of 10.5% in Q4 2025 and 30.97% for the full year, focusing on "ugly ducklings" that are well-managed and attractively priced [1] - The firm's top five holdings contributed significantly to its performance, with Fortrea Holdings Inc. being a key position [1] - Fortrea Holdings Inc. (NASDAQ:FTRE) is a contract research organization with a market capitalization of $1.553 billion, closing at $16.81 per share on January 30, 2026 [2] Group 2 - Fortrea Holdings Inc. had a one-month return of 1.14% and a 52-week gain of 7.28% [2] - Curreen Capital's investment strategy includes identifying "Crazy Cheap" stocks, where Fortrea is classified due to its significant price drop relative to its downside valuation [3] - Fortrea Holdings Inc. was held by 37 hedge fund portfolios at the end of Q3, a slight decrease from 38 in the previous quarter [4]

Group 1 - Fortrea will release its fourth quarter and full year 2025 financial results on February 26, 2026, before the market opens [1] - A conference call will be held at 8:00 am ET on the same day to review the financial results and conduct a Q&A session [1] - Participants can register for the earnings call on the Fortrea Investor Relations website and should join at least 10 minutes early to avoid delays [2] Group 2 - Fortrea is a leading global provider of clinical development solutions to the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [3] - The company offers phase I-IV clinical trial management, clinical pharmacology, and consulting services, leveraging over 30 years of experience across more than 20 therapeutic areas [3] - Fortrea operates in about 100 countries, providing focused and agile solutions to its customers globally [3]

Core Viewpoint - Fortrea Holdings Inc. (FTRE) is currently viewed as a more attractive option for value investors compared to Acadia Pharmaceuticals (ACAD) based on earnings outlook and valuation metrics [3][7]. Valuation Metrics - FTRE has a forward P/E ratio of 22.52, while ACAD has a forward P/E of 35.71, indicating FTRE is potentially undervalued [5]. - The PEG ratio for FTRE is 0.50, suggesting a favorable growth outlook compared to ACAD's PEG ratio of 6.42, which indicates a less attractive growth valuation [5]. - FTRE's P/B ratio stands at 2.68, compared to ACAD's P/B of 4.83, further supporting FTRE's valuation advantage [6]. Earnings Outlook - FTRE has shown a stronger improvement in its earnings outlook compared to ACAD, contributing to its higher Zacks Rank of 2 (Buy) versus ACAD's 3 (Hold) [3][7].

Core Viewpoint - Kahn Swick & Foti, LLC has initiated an investigation into Fortrea Holdings, Inc. following disappointing financial results and ongoing legal issues related to securities class action lawsuits [1][2][3]. Company Overview - Fortrea Holdings, Inc. was spun off from Labcorp Holdings Inc. in June 2023, becoming a standalone publicly traded company [2]. - The company entered into transition services agreements with Labcorp, agreeing to pay for certain transitional services over a specified period [2]. Financial Performance - On March 3, 2025, Fortrea announced disappointing Q4 and full year 2024 financial results, missing previously announced guidance for revenue and adjusted EBITDA [2]. - The company indicated that pre-spin projects are generating less revenue and profitability than expected for 2025, and post-spin work is not progressing quickly enough to offset the pre-spin contract economics [2]. Legal Issues - Following the financial disclosures, Fortrea and certain executives were sued in a securities class action lawsuit for failing to disclose material information, which is still ongoing [2][3]. - KSF's investigation is focused on potential breaches of fiduciary duties by Fortrea's officers and/or directors, as well as possible violations of state or federal laws [3].

Group 1 - Fortrea Holdings Inc. (NASDAQ:FTRE) is considered one of the best young stocks to buy and hold for three years, with recent price target adjustments from Mizuho and Truist indicating positive market sentiment [1][2][3] - Mizuho raised its price target on Fortrea to $15 from $13 while maintaining a Neutral rating, citing a sequential slowdown in healthcare utilization despite easier comparisons from the previous year [1] - Truist upgraded Fortrea from Hold to Buy, setting a new price target of $22, based on enhanced operational performance, emerging commercial strength, and improved profit margins under new leadership [2] - Evercore ISI upgraded Fortrea from In Line to Outperform, significantly raising its price target to $25 from $14, highlighting an accelerating biopharma cycle and improved execution as key drivers [3] Group 2 - Fortrea Holdings Inc. operates as a contract research organization, providing biopharmaceutical product and medical device development solutions to pharmaceutical, biotech, and medical device customers globally [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, with tools like the Zacks Momentum Style Score aiding in identifying such stocks [3] Group 2: Fortrea Holdings Inc. (FTRE) Analysis - Fortrea Holdings Inc. (FTRE) has shown a four-week price change of 8.6%, indicating growing investor interest [4] - FTRE has gained 67.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.59, suggesting it moves 59% higher than the market in either direction, indicating fast-paced momentum [5] - FTRE has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - FTRE is trading at a Price-to-Sales ratio of 0.58, indicating it is reasonably valued at 58 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides FTRE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may also present investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Company Overview - Fortrea Holdings is a leading global contract research organization focused on advancing clinical development and providing innovative solutions to accelerate the transition from molecule to medicine [1] - The company was established in 2023 after spinning out from Labcorp, with its roots tracing back to Covance, which was acquired by Labcorp in 2015 [2] Leadership Presentation - The presentation at the 44th JPMorgan Healthcare Conference was led by CEO Anshul Thakral, with CFO Jill McConnell assisting during the Q&A session [1] - The conference serves as a platform for the company to engage with stakeholders and kickstart the year positively [2]

Summary of Fortrea Holdings Conference Call Company Overview - **Company Name**: Fortrea Holdings - **Industry**: Contract Research Organization (CRO) - **Background**: Fortrea was spun out from Labcorp in 2023, with roots tracing back to Covance, which Labcorp acquired in 2015. The company focuses on advancing clinical development and providing innovative solutions for drug development [2][3]. Core Points and Arguments - **Value Proposition**: Fortrea positions itself as a pure-play global CRO with decades of experience, capable of serving a diverse client base, from large pharmaceutical companies to small biotech firms [4][5]. - **Market Environment**: The overall market for pharmaceutical R&D investments is cautiously optimistic, with expected growth rates of approximately 3%-4% in the near term, driven by big pharma's renewed focus on R&D and improvements in biotech funding [6][24][26]. - **Service Offerings**: Fortrea provides a comprehensive suite of services across the clinical trial continuum, including clinical operations, data management, biostatistics, and consulting services, with expertise in over 20 therapeutic areas [8][12]. - **Technological Integration**: The company is modernizing study delivery by leveraging AI and machine learning to enhance productivity and quality in clinical trials [5][14]. - **Client Relationships**: Fortrea emphasizes building strong, long-term relationships with clients, which is reflected in its balanced client base of approximately 50% large pharma and 50% biotech [13][39]. Important but Overlooked Content - **Operational Focus**: The management team is concentrating on three pillars of excellence: commercial, operational, and financial, to drive sustained revenue growth and margin expansion [15][17]. - **Cost Management**: Fortrea aims to achieve approximately $150 million in gross cost savings, with a focus on right-sizing the organization while also driving revenue growth [32][33]. - **Market Trends**: There is a shift towards hybrid outsourcing models, particularly among mid-sized biotech companies, which Fortrea is well-positioned to accommodate [28]. - **Pricing Discipline**: The CRO market is competitive, and while pricing plays a significant role in FSP (Functional Service Provider) contracts, Fortrea maintains a focus on quality and team performance over price alone [34][35]. - **Capital Allocation**: Post-spin, Fortrea is focused on improving its debt position and making targeted organic investments to enhance productivity and relevance in the market [36][38]. Conclusion - **Key Message**: Fortrea has successfully transitioned out of its spin-off phase, is focused on execution and customer satisfaction, and is optimistic about returning to sustainable growth as market conditions improve [39].

Core Insights - Investors in the Medical - Biomedical and Genetics sector may consider Fortrea Holdings Inc. (FTRE) and Acadia Pharmaceuticals (ACAD) as potential undervalued stocks [1] Group 1: Company Rankings - Fortrea Holdings Inc. has a Zacks Rank of 2 (Buy), while Acadia Pharmaceuticals has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for FTRE [3] Group 2: Valuation Metrics - FTRE has a forward P/E ratio of 22.95, significantly lower than ACAD's forward P/E of 38.66, suggesting FTRE may be undervalued [5] - The PEG ratio for FTRE is 0.51, compared to ACAD's PEG ratio of 7.12, indicating FTRE's expected earnings growth is more favorable [5] - FTRE's P/B ratio is 2.72, while ACAD's P/B ratio is 4.94, further supporting the notion that FTRE is more attractively valued [6] - FTRE has earned a Value grade of B, whereas ACAD has a Value grade of C, reinforcing FTRE's position as the better option for value investors [6]