Chicago, IL – May 15, 2025 – Zacks Equity Research shares Comfort Systems USA FIX as the Bull of the Day and Target TGT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Super Micro Computer, Inc. SMCI, Dell Technologies Inc. DELL and NVIDIA Corporation NVDA.
Here is a synopsis of all five stocks.
Comfort Systems USA provides comprehensive heating, ventilation, and air conditioning installation, maintenance, repair, and replacement services. The company provides chillers, cooling towers, and other critical components found within data centers.
The stock boasts a Zacks Rank #1 (Strong Buy), with analysts positively revising their EPS expectations nearly across the board over recent months.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Building Products – Air Conditioner and Heating industry, which is currently ranked in the top 17% of all Zacks industries. Let’s take a closer look at how the stock presently stacks up.
FIX shares represent a nice opportunity to obtain exposure to the AI infrastructure buildout thanks to its products utilized in data centers, which reflect a massive tailwind for the near and long-term picture for the stock.
Some in the market have caught on to the company’s favorable stance, with shares up 38% over the last year and widely outperforming relative to the S&P 500.
The company’s quarterly results have regularly been robust over recent periods, with FIX enjoying supercharged growth. Sales of $1.8 billion and adjusted EPS of $4.75 in its latest release crushed our consensus estimates, reflecting growth rates of 20% and 75%, respectively.
FIX’s sales growth has been stellar, underpinned by a growing backlog. FIX’s backlog at the end of its latest period totaled a sizable $6.9 billion, well above the $5.9 billion print in the same period last year.
And for those with an appetite for income, FIX shares have you covered, currently yielding a respectable 0.3% annually. While the current yield may not be steep, the company’s 33% five-year annualized dividend growth rate helps bridge the gap nicely, underpinning its commitment to increasingly rewarding shareholders.
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Comfort Systems USA is currently a Zack Rank #1 (Strong Buy).
Target has evolved from just being a pure brick-and-mortar retailer to an omnichannel entity, modernizing its supply chain to compete with pure e-commerce players.
Analysts have taken a bearish stance on the company’s outlook, with the stock presently sporting an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at what’s been affecting the popular retailer.
Target
TGT shares have continued to struggle in 2025, down nearly 30% and widely underperforming not only the S&P 500 but many other peer retailers as well. Quarterly results have regularly brought post-earnings pressure over recent periods, with the company’s more ‘discretionary’ inventory being a major thorn in the side.
Target’s product mix is much less exposed to the grocery side relative to Walmart, for example, carrying a much less ‘staply’ nature. The company benefited massively during the pandemic era, when consumers were rapidly spending on discretionary items, but that theme has long subsided.
The weak inventory mix has been the driving force behind the stock’s plunge over recent years, down nearly 40% over the last two years. Nonetheless, the company is on deck to reveal its next set of quarterly results soon, which could turn the tide entirely.
Analysts have been bearish for the quarter to be reported, with the current $1.72 Zacks Consensus EPS estimate down more than 15% since the end of February.
Jim Lee, CFO, had this comment following the release of its Q1 results in early March –
“During February, we saw record performance around Valentines Day. However, our topline performance for the month was soft, as uncharacteristically cold weather across the U.S. affected apparel sales, and declining consumer confidence impacted our discretionary assortment overall,”
He continued –
‘Looking ahead, we expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target for upcoming seasonal moments such as the Easter holiday. We will continue to monitor these trends and will remain appropriately cautious with our expectations for the year ahead.’
Negative earnings estimate revisions, resulting from soft quarterly results and an unfavorable inventory mix, paint a challenging picture for the company’s shares in the near term.
Target is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Super Micro Computer, Inc.stock encountered controversies over the past year, including accounting violations and a non-compliance letter from Nasdaq. Although Supermicro avoided de-listing, its reputation declined, further aggravated by the issuance of weak guidance.
However, Raymond James analysts have recently shown optimism for Supermicro stock. Is this a good time to buy? Let’s find out.
Raymond James initiated Supermicro stock coverage, rating it “outperform.” Analysts at Raymond James raised Supermicro’s short-term price target to $41, up 5.4% from Tuesday’s closing price of $38.89. The Supermicro stock soared 16% in Tuesday’s trading, but despite such gains, it has lost half its value year over year.
Nonetheless, Raymond James analysts are optimistic about Supermicro becoming a leader in AI-optimized infrastructure, with nearly 70% of its revenues coming from AI servers. Supermicro’s 9% share in the $145 billion AI platform market is expected to improve. This is because Supermicro excels in creating custom designs at competitive prices, thanks to its versatile building block architecture and ecosystem. This advantage positions the company ahead of high-end enterprise server makers like HP Enterprise and Dell Technologies Inc.
Raymond James analysts expect Supermicro to take advantage of the broader AI market, banking on its strong competitive position compared to other business models. They also believe that due to a large U.S. footprint, Supermicro is less vulnerable to tariffs than other server manufacturers.
Despite Raymond James analysts’ current optimism, it would be naïve to forget that Supermicro has consistently lowered its guidance, causing its share price to decline.
Supermicro lowered its fiscal first-quarter revenue guidance to a range of $5.9 billion to $6 billion from its earlier forecast of $6 billion to $7 billion. The company also declared that its fiscal second-quarter revenues will fall short of estimates.
And now, in its latest fiscal third-quarter report, the company registered revenues of $4.6 billion, which fell short of its previous guidance of $5 billion to $6 billion. What’s more, its fiscal fourth-quarter revenue guidance of $5.6 billion to $6.4 billion is well short of Wall Street’s expectations of $6.82 billion.
Supermicro’s revenue growth has been lowered due to the current NVIDIA Corporation’s Hopper-to-Blackwell transition in AI graphics processing units (GPUs), compelling customers to take time to decide which platform to build on. The GPU transition also impacted Supermicro’s gross margins. Its gross margins fell 9.6% in the latest reported quarter, with marginal signs of recovery in the near term.
Disregarding Raymond James analysts’ optimism, Supermicro has encountered challenges stemming from accounting allegations. Its revenue expectations are down, and the company operates with a low margin.
Thus, it’s prudent to avoid betting on Supermicro stock for the time being. The stock, regrettably, has a Zacks Rank #5 (Strong Sell), and the Zacks Consensus Estimate of $2.08 for SMCI’s earnings per share (EPS) is down by 38.8% from a year ago. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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Target Corporation (TGT) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report
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