Pegasystems bullish due to AI and positive results, Macy's struggling with lower expectations.
From Nasdaq
July 02, 2025 09:27 AM:
Zacks Equity Research highlights Pegasystems (PEGA) as the Bull of the Day and Macy’s (M) as the Bear of the Day. PEGA, with a Zacks Rank #1, benefits from AI and positive quarterly results. Macy’s struggles with a Zacks Rank #5 due to lower EPS expectations and underperforming shares. Both companies are analyzed within the Zacks framework.
Pegasystems’ strong performance is driven by AI, with sales up 44% and adjusted EPS tripling year-over-year. The stock’s premium valuation reflects high-growth potential, with earnings forecasted to grow 25% in fiscal year 2025. PEGA is a Zacks Rank #1 (Strong Buy) stock with a Style Score of ‘A’ for Growth.
Macy’s faces challenges with a 25% decline in shares year-to-date. Despite exceeding EPS estimates, sales decreased 4.1% YoY. The Zacks Rank #5 (Strong Sell) indicates bearish sentiment from analysts. Macy’s struggles with negative earnings estimate revisions and a tough retail environment.
Coinbase Global’s sales and marketing spend has driven significant user growth and revenue increases. S&M expenses doubled in 2024, leading to a 14% rise in monthly transacting users and a surge in trading volume. This strategic investment in marketing supports scalable growth and revenue diversification for Coinbase.
Robinhood Markets and Block Inc. also emphasize the importance of sales and marketing spending in their growth strategies. Robinhood’s marketing expenses increased 57% YoY, while Block Inc. saw a 13.6% rise in S&M spending. These investments are crucial for attracting and retaining customers in the competitive fintech industry.
Coinbase’s stock performance has been strong, gaining 37.3% year-to-date. Despite trading at a higher P/E ratio than the industry average, COIN is forecasted to see revenue and EPS growth in 2025 and 2026. The Zacks Rank #3 (Hold) suggests a neutral stance on the stock’s future performance.
Read more at Nasdaq: Pegasystems and Macy’s have been highlighted as Zacks Bull and Bear of the Day