Core Insights - Skillsoft Corp. (SKIL) shares have declined 52.6% in the past six months, underperforming its industry which grew by 22.9% and the Zacks S&P 500 Composite which rose by 19.4% [1] - Over the past year, SKIL has also underperformed compared to competitors Parsons and Peraso, with a decline of 30.2% against Parsons' 13.8% drop and Peraso's 26.4% rise [4] AI-Driven Strategy - SKIL's future growth is heavily reliant on AI-led innovation, focusing on intelligent learning design and skills intelligence, with over 20,000 certifications earned by its global workforce in relevant fields [5][6] - The demand for scalable learning solutions is increasing as companies adapt to workforce changes and AI technology, which SKIL aims to meet through its product strategy [6] Financial Performance - In the second quarter of fiscal 2026, SKIL reported a 5.9% year-over-year decline in content and software development expenses, attributed to productivity gains from AI [9] - The company achieved $45 million in expense reductions since implementing transformation actions, resulting in an adjusted EBITDA margin increase to 22% from 21.4% year-over-year [10][11] - SKIL's year-to-date free cash flow (FCF) stands at $3.5 million, with management projecting adjusted EBITDA of $112-$118 million and FCF of $13-$18 million for the year [13] Capital Management and Valuation - By the end of the second quarter of fiscal 2026, SKIL's return on equity (ROE) was 16.03%, surpassing the industry's 15.89%, indicating effective capital management [14] - SKIL is currently priced at 2.12 times forward 12-month price-to-earnings, significantly below the industry average of 25.19 times, and its trailing 12-month EV-to-EBITDA ratio is 3.05, well below the industry average of 15.87 [15] Investment Recommendation - The company's focus on AI-led innovation and cost-cutting initiatives is expected to improve margins and free cash flow, making it an attractive investment opportunity [19] - SKIL is currently undervalued and offers strong capital returns, making it a recommended addition for long-term investors [20]

Group 1: Skillsoft Corp. (SKIL) - Skillsoft is an instructor-led training services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 519.3% over the last 60 days [1] - Skillsoft has a PEG ratio of 0.33 compared to the industry average of 1.13, indicating strong growth potential [1] - The company possesses a Growth Score of B [1] Group 2: Micron Technology, Inc. (MU) - Micron is a memory and storage products company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 24.4% over the last 60 days [2] - Micron has a PEG ratio of 0.52 compared to the industry average of 1.51, suggesting favorable growth characteristics [2] - The company possesses a Growth Score of A [2] Group 3: Futu Holdings Limited (FUTU) - Futu is an online brokerage and wealth management platform with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu has a PEG ratio of 0.67 compared to the industry average of 1.13, indicating potential for growth [3] - The company possesses a Growth Score of B [3]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Universal Health Services, Micron Technology, and Skillsoft [1][2][3] Company Summaries - **Universal Health Services (UHS)**: - Operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers - Holds a Zacks Rank 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings increased by 0.7% over the last 60 days - PEG ratio of 0.86 compared to the industry average of 1.02 - Growth Score of A [1][2] - **Micron Technology (MU)**: - A leading provider of semiconductor memory solutions - Holds a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 24.3% over the last 60 days - PEG ratio of 0.48 compared to the industry average of 1.32 - Growth Score of A [2] - **Skillsoft (SKIL)**: - Provides digital learning, training, and talent solutions - Holds a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 240.9% over the last 60 days - PEG ratio of 0.49 compared to the industry average of 0.88 - Growth Score of B [3]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Skillsoft Corp. (SKIL) Analysis - Skillsoft Corp. (SKIL) has shown a significant price increase of 27.9% over the past four weeks, indicating growing investor interest [4] - The stock has gained 13.2% over the past 12 weeks, with a beta of 1.6, suggesting it moves 60% more than the market in either direction [5] - SKIL has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SKIL is trading at a low Price-to-Sales ratio of 0.28, meaning investors pay only 28 cents for each dollar of sales, suggesting it is undervalued [7] Group 3: Additional Investment Opportunities - Besides SKIL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

Core Insights - Skillsoft Corp. (SKIL) is currently rated as a Strong Buy with a Zacks Rank of 1, while MeridianLink (MLNK) holds a Zacks Rank of 3, indicating a Hold status [3] - The analysis suggests that SKIL has a more favorable earnings estimate revision trend compared to MLNK, making it a more attractive option for value investors [3][7] Valuation Metrics - SKIL has a forward P/E ratio of 4.27, significantly lower than MLNK's forward P/E of 54.76, indicating that SKIL may be undervalued [5] - The PEG ratio for SKIL is 0.43, while MLNK's PEG ratio is 1.85, further suggesting that SKIL offers better value based on expected earnings growth [5] - SKIL's P/B ratio is 3, compared to MLNK's P/B of 3.95, reinforcing the notion that SKIL is a more attractive investment based on traditional valuation metrics [6] Overall Assessment - Based on the combination of strong earnings outlook and favorable valuation metrics, SKIL is positioned as the superior value option compared to MLNK [7]

Core Insights - Skillsoft Corp. (SKIL) shares increased by 7% to close at $14.87, supported by strong trading volume and a 5.1% gain over the past four weeks, driven by rising earnings estimates and renewed investor confidence in the company's turnaround strategy [1] Earnings Expectations - The company is projected to report quarterly earnings of $1.26 per share, reflecting a year-over-year increase of 169.2%, while revenues are expected to be $131.56 million, a decrease of 4.1% from the previous year [2] - The consensus EPS estimate for Skillsoft has been revised 131.4% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] Industry Comparison - Skillsoft is part of the Zacks Technology Services industry, where another company, Amplitude, Inc. (AMPL), saw its stock close 5% lower at $9.6, with a return of -11.8% over the past month [3] - Amplitude's consensus EPS estimate has remained unchanged at $0.01, representing a year-over-year decline of 66.7%, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Ultrapar Participacoes, Skillsoft, and Western Digital [1][2][3] Group 1: Ultrapar Participacoes (UGP) - Ultrapar Participacoes is a major Brazilian industrial group, one of the largest distributors of liquefied petroleum gas in Brazil, and a leading producer of petrochemicals [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 33.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Ultrapar has a PEG ratio of 1.98, which is lower than the industry average of 2.56, and possesses a Growth Score of A [2] Group 2: Skillsoft (SKIL) - Skillsoft provides digital learning, training, and talent solutions and also carries a Zacks Rank of 1 [2] - The company has experienced a significant increase of 240.9% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Skillsoft has a PEG ratio of 0.43, compared to the industry average of 0.99, and holds a Growth Score of B [2] Group 3: Western Digital (WDC) - Western Digital is a leading developer and manufacturer of data storage devices and solutions based on NAND flash and hard disk drive technologies [3] - The company has a Zacks Rank of 1 and has seen a 1.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Western Digital has a PEG ratio of 0.98, significantly lower than the industry average of 2.31, and possesses a Growth Score of B [3]

Industry Overview - The Technology Services industry ranks within the top 24% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months, having rallied 32.9% year to date [1] - The industry is mature with strong demand for services, and this momentum is likely to continue into the fourth quarter of 2025 [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), blockchain, and data science to gain competitive advantages [3] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights AppLovin Corp. (APP) - AppLovin is a leading technology platform for mobile app developers, enhancing marketing and monetization efforts [7][8] - The Axon 2.0 AI engine has significantly boosted ad performance, leading to a $10 billion annual run rate in ad spend [9] - AppLovin targets a 20-30% year-over-year growth rate, primarily driven by its gaming segment and AI-driven ad monetization [11] - Expected revenue and earnings growth rates for the current quarter are 15.2% and 63.6%, respectively [12] Skillsoft Corp. (SKIL) - Skillsoft provides digital learning and talent solutions, focusing on a learner-centric approach [13] - Expected revenue and earnings growth rates for the next quarter are -2% and -53.1%, respectively, but earnings estimates have improved over 100% in the last 30 days [14] Acuity Inc. (AYI) - Acuity manufactures lighting fixtures and related components, with a focus on energy efficiency and smart building solutions [15][17] - Expected revenue and earnings growth rates for the current quarter are 19.5% and 12.3%, respectively [17] Byrna Technologies Inc. (BYRN) - Byrna develops non-lethal technology products for personal and professional security [18] - Expected revenue and earnings growth rates for the current quarter are 21.3% and -23.5%, respectively [19] MediaAlpha Inc. (MAX) - MediaAlpha specializes in programmatic technology platforms for vertical search and metasearch [20] - Expected revenue and earnings growth rates for the current quarter are -8.1% and over 100%, respectively [20]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: Ultrapar Participacoes, Skillsoft, and Seagate Technology [1][2][3] Group 1: Ultrapar Participacoes (UGP) - Ultrapar Participacoes is a major Brazilian industrial group, one of the largest distributors of liquefied petroleum gas in Brazil, and a leading producer of petrochemicals [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 33.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Ultrapar has a PEG ratio of 11.13, which is lower than the industry average of 18.70, and possesses a Growth Score of A [2] Group 2: Skillsoft (SKIL) - Skillsoft provides digital learning, training, and talent solutions and also carries a Zacks Rank of 1 [2] - The company has experienced a significant increase of 240.9% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Skillsoft has a PEG ratio of 0.40, compared to the industry average of 0.78, and holds a Growth Score of B [2] Group 3: Seagate Technology (STX) - Seagate Technology specializes in data storage technology and infrastructure solutions, holding a Zacks Rank of 1 [3] - The company has seen a 4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Seagate has a PEG ratio of 0.87, which is lower than the industry average of 1.35, and possesses a Growth Score of B [3]

Core Insights - Skillsoft Corp. (SKIL) shows potential as a strong investment due to significant upward revisions in earnings estimates [1][3] - Analysts' optimism regarding Skillsoft's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2][3] - The Zacks Rank system indicates a strong buy rating for Skillsoft, reflecting a consensus among analysts for improved earnings estimates [3][9] Current-Quarter Estimate Revisions - The current quarter's earnings estimate for Skillsoft is projected at $1.26 per share, marking a year-over-year increase of +169.2% [7] - Over the past 30 days, the Zacks Consensus Estimate has risen by 148.41%, with one estimate moving higher and no negative revisions [7] Current-Year Estimate Revisions - For the full year, Skillsoft's earnings are expected to be $3.48 per share, representing a decrease of -19.6% compared to the previous year [8] - The trend for current-year estimates is positive, with one estimate increasing and no negative revisions noted [8] Zacks Rank and Performance - Skillsoft currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the upward revisions of earnings estimates [9] - Stocks with a Zacks Rank 1 and 2 have historically outperformed the S&P 500, suggesting a favorable investment outlook for Skillsoft [9] Bottom Line - Skillsoft's stock has increased by 11.5% over the past four weeks due to strong estimate revisions, indicating potential for further gains [10] - Investors may consider adding Skillsoft to their portfolios based on the positive earnings outlook [10]