Chicago, IL – April 10, 2025 – Zacks Equity Research shares Astronics ATRO as the Bull of the Day and The Boston Beer Company SAM as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Universal Health Services UHS, BioMarin Pharmaceutical BMRN and Abbott Laboratories ABT.
Here is a synopsis of all five stocks.
Astronics is a Zacks Rank #1 (Strong Buy) that has a C for Value and a A for Growth. After a massive beat, shares launched higher on expectations of higher earnings. The recent tariff tantrum has brought the price back down, but this stock has resisted the urge to purge investors as the story is compelling. Let’s explore more about why this stock is the Bull of the Day.
Astronics Corp. engages in the provision of electrical power generation and distribution systems. It includes motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification, and automated test systems. It operates through the Aerospace and Test Systems segments.
The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, develops, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications.
The firm's products and solutions include Aircraft Data Systems, Aircraft Electrical Power Systems, Airfield Lighting, Custom Design & Manufacturing, Emergency Systems, Enhanced Vision Systems, IFC Antennas and Radome Systems, Inflight Entertainment System Hardware, Interiors & Structures, Lighting Systems, Seat Actuation Systems, Simulation & Training, Systems Certification, Test & Measurement and VIP IFEC & CMS Systems. The company was founded on December 5th, 1968 and is headquartered in East Aurora, NY.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Astronics has posted two consecutive beats of the Zacks Consensus Estimate after posting two consecutive misses. The takeaway from the earnings history is that the company gone from losing $0.09 per share four quarters ago to making $0.48 in the most recent quarter.
The most recent earnings print saw the company post $0.48 when the consensus was at $0.21. That 27 cent beats translates into a positive earnings surprise of 128%
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Astronics.
This quarter has moved to $0.27, up from $0.21 over the last 60 days.
Next quarter has seen a smaller increase, moving from $0.28 to $0.31 over the same time period.
The full year 2025 has seen a big move, going from $1.10 to $1.29 over the last 60 days.
2026 saw a big move higher as well, going from $1.34 to $1.81 over the same period.
I see revenue in 2025 will come in around $830M which will end up being growth of about 4.3%.
Next year analysts are calling for sales of just over $900M which would be good for growth of 8.9%.
Accelerating revenue growth is a critical aspect to focus on, and ATRO has it.
The forward PE of 16.6x is below the market multiple of 18x and well below the industry average of 25x. Price to book comes in at 2.95x which is below the 3x level that will keep the value conscious interested in this stock. Price to sales comes in just under 1x at 0.95x and implies that the market is not fully rewarding the company for every incremental dollar in sales that is generated. Operating Margins have increased over the last couple of quarters moving from 2.24% to 3.44%.
The Boston Beer Company is a Zacks Rank #5 (Strong Sell) after the company missed the Zacks Consensus Estimate when the company last reported. While this company is broadly know for its line of beers like Samuel Adams, they also make the popular hard seltzer Truly. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Boston Beer Co., Inc. engages in the production and sale of alcoholic beverages. Its brands include Truly Hard Seltzer, Twisted Tea, Samuel Adams, Angry Orchard, Hard Cider, and Dogfish Head Craft Brewery. The company was founded by C. James Koch in 1984 and is headquartered in Boston, MA.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of The Boston Beer Co. I a pattern of beating, then missing, then beating and missing Zacks Consensus Estimate over the last year. The most recent quarter was a miss with the company posting a loss of $1.68 when the consensus was calling for a loss of $1.18. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For SAM I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $11.94 to $10.87 over the last 60 days.
The next year has moved from $13.88 to $12.52 over the last 30 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
The American trade structure is witnessing a transformative shift, thanks to the Trump administration’s sweeping new tariff policy. Within the healthcare industry, the impact seems to be complex and widespread.
Apparently, pharmaceuticals are exempt from the steep reciprocal tariffs. However, the broader healthcare ecosystem—from hospitals to MedTech companies—is left exposed to the hefty tariffs, which may lead to significant retaliation from global trade partners and major supply chain disruption.
In this uncertain environment, investors looking to maintain exposure to healthcare may find greater stability in fundamentally strong large-cap U.S.-based stocks. Companies such as Universal Health Services, BioMarin Pharmaceutical and Abbott Laboratories stand out as resilient options in the face of escalating trade tensions.
Pharmaceuticals have explicitly escaped from the heightened reciprocal tariffs, a notable win for drugmakers who lobbied intensely for the exemption. This move spares over $200 billion in annual U.S. pharmaceutical imports from immediate cost increases. However, the industry remains wary, considering Trump’s prior comments floating a “25% or higher” tariff on foreign-made drugs. That proposal, if reintroduced, could trigger pricing pressure and result in renewed challenges. A recent JAMA (The Journal of the American Medical Association) study showed that just a 25% tariff on Canadian drug imports alone could generate a $750 million increase in U.S. costs.
At the same time, medical devices and healthcare supplies appear to be bearing the brunt of the tariff fallout. According to a MedTech Dive report, AdvaMed — one of the medical device industry’s largest trade associations—reaffirmed its strong opposition to broad-based tariffs following the Trump administration’s announcement of new duties targeting most U.S. trading partners.
The group warned that such measures would delay innovation, lead to job losses and drive up healthcare costs. Meanwhile, providers have been preparing for the financial strain, as the American Hospital Association and the Healthcare Distribution Alliance were unsuccessful in securing exemptions for essential medical supplies despite months of lobbying.
Beyond direct costs, the new tariffs introduce macroeconomic volatility. Goldman Sachs increased the odds of a U.S. recession from 20% to 35% last week and now again to 45%, citing trade-related uncertainty. Meanwhile, retaliation from affected trade partners, particularly the EU and China, could further squeeze access to vital materials and technologies.
In such a volatile environment, investors are advised to focus on large-cap (more than $10 billion of market capitalization) and fundamentally strong growth stocks within the healthcare sector. These companies are typically better positioned to absorb market shocks, maintain profitability and navigate through geopolitical and trade-related uncertainties.
Our first pick is Universal Health Services. The company’s Acute Care and Behavioral Health units have been pivotal in driving top-line growth, fueled by expansions in licensed bed capacity. We expect net revenues to grow 7.6% year over year in 2025. Universal Health Services anticipates positive impacts on its Acute Care unit from Medicaid supplemental programs. Strategic buyouts have played a significant role in augmenting its growth trajectory by broadening its portfolio of facilities.
UHS sports a Zacks Rank #1 (Strong Buy) at present and has a Growth Score of A. Moreover, the Zacks Consensus Estimate for 2025 earnings and revenues indicates 14% and 8% growth, respectively. Universal Health Services, with a market cap of $11.26 billion, has a long-term expected growth rate of 16.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Health Services, Inc. price-consensus-chart | Universal Health Services, Inc. Quote
The second on the list is BioMarin Pharmaceutical. This company is gaining from strong demand in key drugs, especially dwarfism drug, Voxzogo. The recent label expansion of Voxzogo in the United States and Europe for use in infants with achondroplasia will likely boost sales further.
BioMarin Pharmaceutical is one of the few companies that has shown encouraging progress in the gene therapy space and commercially markets a gene therapy treatment. Roctavian is the first and only one-shot gene therapy approved for treating adults with severe hemophilia A in the United States and Europe.
This $10.66 billion market cap company too is a stable bet with a Zacks Rank #2 (Buy) and a Growth Score of B. Moreover, the Zacks Consensus Estimate for 2025 earnings and revenues suggests 22.2% and 9.8% growth, respectively. BioMarin Pharmaceutical has a long-term expected growth rate of 16.9%.
BioMarin Pharmaceutical Inc. price-consensus-chart | BioMarin Pharmaceutical Inc. Quote
Last but not the least is Abbott. The company’s pipeline is unlocking new growth opportunities, supporting its strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales in 2025.
This $214.9 billion-market cap company carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for 2025 earnings and revenues implies 10.3% and 5.9% growth, respectively. Abbott has a long-term expected growth rate of 10.4%.
Abbott Laboratories price-consensus-chart | Abbott Laboratories Quote
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report
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