For Immediate Release
Chicago, IL – July 7, 2026 – Zacks Equity Research shares Amtech Systems ASYS as the Bull of the Day and Caesars Entertainment CZR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIKE, Inc. NKE, lululemon athletica inc. LULU and adidas AG ADDYY.
Here is a synopsis of all five stocks.
Bull of the Day:
Sometimes the best AI investments aren’t the companies designing the chips. Lately, it’s been the ones building the equipment that makes those chips possible. That’s where Amtech Systems comes in.
Amtech is a small-cap semiconductor equipment company supplying the specialized tools, consumables, and services used in wafer fabrication and, more importantly today, advanced semiconductor packaging. Through brands like BTU International, Entrepix, PR Hoffman, and Intersurface Dynamics, the company has carved out a niche in thermal processing, CMP consumables, and polishing solutions. But the real story is its exposure to AI.
The crown jewel is Amtech’s TrueFlat reflow oven, a critical piece of equipment used to package ultra-thin substrates found in next-generation AI GPUs and accelerators. As AI demand explodes, advanced packaging has become one of the biggest bottlenecks in semiconductor manufacturing.
The numbers are starting to tell the story. In fiscal second-quarter 2026, revenue jumped 31% year over year to $20.5 million, fueled primarily by AI-related products. Gross margins expanded to nearly 47%, up roughly 300 basis points sequentially, as the company shifted toward higher-value AI packaging equipment. The quarter also produced GAAP earnings of $0.08 per share, adjusted EBITDA of $2.5 million, and a healthy backlog of $22.3 million, showing demand remains solid heading into the second half of the year.
Amtech Systems, Inc. price-consensus-chart | Amtech Systems, Inc. Quote
That’s prompted analysts all over Wall Street to increase their earnings estimates. Over the last sixty days, analysts have upped the ante for both the current year and next year. That’s pushed up our Zacks Consensus Estimate from 25 cents to 32 cents for the current year while next year’s number is up from 75 cents to 80 cents. That is the reason why this stock is checking in as a Zacks Rank #1 (Strong Buy).
From a valuation standpoint, the market is still assigning Amtech a relatively modest multiple considering its improving margins and AI exposure. If management continues to execute, expands margins into the high 40% range, and successfully deploys its new capital, earnings power could increase significantly over the next several years. While Wall Street price targets remain relatively conservative today, the opportunity for multiple expansion exists if investors begin viewing Amtech as a true AI infrastructure supplier rather than simply another small-cap equipment company.
Bear of the Day:
Sometimes a stock looks cheap for a reason. Most of the time, the reason is macro trends affecting the industry the stock is in. No matter how nice it looks on paper, no matter how much value you perceive…it could get worse. Beware of those value traps. One way to avoid them is by leaning on the Zack Rank. Stocks in the bad graces of our Zacks Rank often have earnings estimates moving in the wrong direction.
Today’s Bear of the Day is one of those names. It’s Zacks Rank #5 (Strong Sell) Caesars Entertainment. Caesars remains one of the biggest names in gaming, operating iconic Las Vegas resorts alongside a massive portfolio of regional casinos and a growing digital sportsbook business. But despite its recognizable brands, the investment story continues to be weighed down by one overwhelming issue, debt.
The company carries approximately $11.9 billion in debt, and that’s before factoring in billions more in long-term lease obligations tied to its casino real estate. Those financial commitments translate into roughly $2.3 billion in annual interest expense, making it difficult for Caesars to consistently generate meaningful profits even when business conditions are favorable.
The result has been a string of disappointing bottom-line results. Caesars posted another loss in the first quarter of 2026, missing Wall Street earnings expectations as higher interest costs continued to eat away at operating performance. While revenue has remained relatively stable, growth has been sluggish, and adjusted EBITDA has largely stalled despite continued consumer spending.
That’s a problem because gaming is an inherently cyclical business. Las Vegas visitation fluctuates with the economy, regional casinos depend heavily on discretionary consumer spending, and digital sports betting remains an intensely competitive market with high customer acquisition costs and evolving regulatory hurdles. If the economy slows, consumers typically cut back on vacations, casino visits, and entertainment spending long before reducing essential purchases.
The stock has missed earnings expectations for six consecutive quarters, helping to prompt analysts all over Wall Street to cut their estimates. The Leisure and Recreational Services industry ranks in the Bottom 16% of our Zacks Industry Rank.
Additional content:
NIKE’s Wholesale Strength: A Signal of Turnaround Ahead?
NIKE, Inc. has been making efforts to drive growth at its wholesale segment. The company is rebuilding its wholesale partnerships by expanding its reach across retail channels and enhancing its presence in the marketplace. It is also making significant investments in its physical retail network, refreshing more than 15,000 wholesale locations worldwide to improve product presentation and the overall consumer shopping experience.
NIKE is streamlining inventory, reducing promotional activity and investing in its wholesale network to create a healthier and more profitable distribution channel. While challenges persist in categories such as Sportswear and Jordan, as well as in markets like Greater China, the improving wholesale performance suggests that NIKE is making meaningful progress toward restoring growth. NIKE continues to remain under pressure in Greater China as it restructures its inventory and marketplace.
Hence, the company’s wholesale business is currently showing encouraging signs, with the segment’s revenues increasing 4% on a reported basis and 1% on a currency-neutral basis to $6.6 billion in fourth-quarter fiscal 2026. Wholesale trends improved, helping offset weakness in NIKE Direct. Growth was mainly driven by North America, partly offset by lower revenues in Greater China. For the fiscal year, wholesale revenues grew 4%, led by double-digit growth in North America.
Healthy demand for its performance-focused products and improving marketplace conditions have been driving results. Key partners are showing better performance. Management highlighted that sales and retail sell-through at Foot Locker turned positive for the first time in four years, suggesting stronger consumer demand and healthier inventory at retail partners.
The company continues to execute its “Win Now” turnaround strategy, which focuses on strengthening culture, accelerating product innovation, reinforcing brand strength and enhancing consumer engagement. NIKE is actively reducing excess inventory, scaling back promotional activity and optimizing shipments to better match product supply with consumer demand, helping create a healthier marketplace while supporting long-term profitability.
NKE’s Competition
lululemon athletica inc. continues to benefit from the progress with its Power of Three X2 growth strategy. LULU remains focused on its long-term growth strategy, which centers on continuous product innovation, enhancing the guest experience and expanding its international presence to drive sustainable growth. lululemon is experiencing robust international momentum, with China and other global markets driving faster growth.
adidas AG is focused on strengthening its brand appeal through continuous product innovation, operational excellence and strategic growth initiatives. ADDYY remains committed to enhancing profitability and long-term competitiveness by maintaining inventory discipline, improving operational efficiency and advancing its sustainability efforts. In addition, adidas is expanding its global footprint through localized market strategies, increased digital investments and an ongoing expansion of its retail store network.
NKE’S Price Performance, Valuation and Estimates
Shares of NIKE have lost 33.5% in the past six months compared with the industry’s decline of 25.4%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 23.72X compared with the industry’s average of 20.73X.
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings per share implies year-over-year growth of 13.9% and 32.5%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past seven days.
NIKE stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Why Haven’t You Looked at Zacks’ Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P’s +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
