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Paysafe and Champion Homes have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 8, 2025 – Zacks Equity Research shares Paysafe Ltd. (PSFE - Free Report) as the Bull of the Day and Champion Homes (SKY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Quest Diagnostics (DGX - Free Report) , Phibro Animal Health (PAHC - Free Report) and Cencora (COR - Free Report) .
Amid the fastest rebound in stock market history, gauging a company’s valuation has become essential, and Paysafe Ltd. stands out in terms of value while having respectable growth prospects as well.
As part of the Russel 2000, Paysafe shares still appear to have an abundance of upside at under $15, as small-cap stocks are starting to catch investors' attention and have joined in on the broader market rally.
Attributing to Paysafe’s upside potential are its somewhat essential and innovative offerings as a payment solutions provider. Considering such, Paysafe stock lands the Zacks Bull of the Day, with it noteworthy that its Zacks Financial Transaction Services Industry is in the top 18% of over 240 Zacks industries.
Paysafe Overview
Going public in 2021, Paysafe joined a wave of fintech companies that used SPACs to accelerate their public listings. While sustaining growth and investor confidence hasn’t been easy since Paysafe’s SPAC with Foley Trasimene Acquisition Corp., the company has significant assets in digital wallets and payment processing, enabling businesses and consumers to connect and transact seamlessly.
Furthermore, the risk-to-reward looks very favorable to invest in Paysafe’s specialized payments platform, as PSFE still has the undervalued prospects that investors are searching for with the broader market recouping more than 10% gains in the last three months. To that point, PSFE is still 50% from its 52-week high of $26 and once traded at an all-time high of $230 a share shortly after its SPAC merger.
Paysafe’s Intriguing Valuation
Optimistically, and reassuring to Paysafe’s rebound prospects, is that PSFE trades at just 5X forward earnings compared to an all-time high of 128X and its median of 9X. This is also a significant discount to its industry average of 25X forward earnings, with some prominent peers being PayPal and Fiserv. Plus, Paysafe stock trades at less than 1X forward sales versus the industry average of 6.9X.
Paysafe’s Favorable Outlook
Benefiting from a strong business environment and making Paysafe’s “cheap” valuation more attractive, the company’s total sales are expected to be up 1% this year and are projected to rise another 8% in fiscal 2026 to $1.85 billion.
Even better, Paysafe’s annual earnings are currently slated to increase 12% in FY25 and are forecasted to spike another 15% in FY26 to $2.77 per share.
Bottom Line
Considering the exuberant optimism in the stock market right now, Paysafe stock is certainly worthy of consideration as PSFE is starting to look like a bargain and may be poised to rip higher if the fintech firm can start to reaffirm its favorable outlook.
There tends to be an abundance of opportunity for construction sector stocks during the peak summer season, but Champion Homes may be one with more downside risk ahead.
As a designer of manufactured homes and recreational vehicles (RVs), Champion Homes has a proven niche in its space but is facing increased competition from other modular housing companies like Clayton Homes and Cavo Industries’ Fleetwood Homes.
This, coupled with higher interest rates, has led to lower margins that have started to deflate investor sentiment. Keeping this in mind, Champion Homes stock lands the Zacks Bear of the Day, with it noteworthy that its Zacks Building Products-Mobile Homes and RV Builders Industry is in the bottom 4% of over 240 Zacks industries.
Lackluster Q4 Results & Short Interest Surge
Echoing cause for concern, Champion Homes most recently missed top and bottom-line expectations for its fiscal fourth quarter in May, with a sales and EPS surprise of -1% and -13% respectively.
Although Champion Homes has still posted an average EPS surprise of 25.67% in its last four quarterly reports, news has recently surfaced that the company has experienced a short interest surge, with 3.59 million shares being shorted at the beginning of the month, which is more than 8% of its outstanding shares.
Correlating with the short interest surge, Champion Homes' stock has now dropped more than 30% since its Q4 report to vastly trail the broader market’s 10% rebound and its Zacks Industry’s decline of -6%.
Declining EPS Revisions
Fundamentally, to more downside risk outside of the short interest surge is that earnings estimate revisions for Champion Homes' current fiscal 2026 and FY27 have declined by over 10% in the last 60 days.
The declining EPS revisions have taken away from Champion Homes' reasonable but not necessarily cheap P/E valuation of 19X forward earnings, which is on par with Cavo Industries and their Zacks industry average.
Bottom Line
Considering the decline in EPS revisions, the plausibility of a short squeeze doesn’t look likely for Champion Homes.
Additional content:
What's Fueling the Climb in Quest Diagnostics' Stock?
Quest Diagnostics has shown impressive momentum in the past year, with its shares rallying 27.3%. The performance outpaces the industry’s 5.9% rise and the S&P 500 composite’s 12.3% gain.
Carrying a Zacks Rank #2 (Buy) at present, the renowned clinical laboratory is benefiting from its investments in Advanced Diagnostics, which help deliver and scale innovative services that enhance patient care and drive growth. Quest Diagnostics’ strategy includes generating growth through value-creating acquisitions, utilizing disciplined investment criteria with a high emphasis on accretive outreach purchases and other independent labs. A strong focus on operational excellence also adds to the stock’s appeal.
Headquartered in Secaucus, NJ, Quest Diagnostics delivers a wide range of diagnostic information services to patients, clinicians and healthcare organizations. It serves as a key provider of reference testing for approximately half of the hospitals in the United States, and also offers physician services reimbursed by Medicare’s physician fee schedule, subject to yearly adjustments. Through targeted acquisitions, the company aims to grow its top line by 1-2% annually.
Catalysts Behind DGX’s Growth
Quest Diagnostics’ rally is largely driven by its continued strength in Advanced Diagnostics, particularly in areas like advanced cardiometabolic, autoimmune, brain health, oncology and women's and reproductive health. Robust demand for Alzheimer's disease risk detection blood tests is driving growth in Brain Health.
The company aims to build on this momentum by introducing new biomarkers to help providers better assess Alzheimer's and other forms of dementia. It also expanded its women and reproductive health offerings with a new self-collection option for a specimen for HPV cervical cancer screening at a doctor's office. Quest Diagnostics anticipates generating revenues from its Haystack minimal-residual disease (MRD) test this year.
This year, the company is focused on maximizing productivity from the eight acquisitions completed in 2024. These transactions include LifeLabs in Canada, Allina Health, a leading non-profit health system serving Minnesota and western Wisconsin, and outreach lab assets from Ohio Health and University Hospitals. The acquisition of PathAI Diagnostics further advanced the company’s push into digital pathology and AI to improve the diagnosis of cancer and other diseases.
Quest Diagnostics is also gaining from strong customer relationships. New health plan partnerships with Elevance Health and Sentara Health Plans, which became effective on Jan. 1, 2025, are driving strong volume and revenue gains by expanding into new geographies. The company also became the first independent national lab to be selected for the Optum Health preferred lab network (PLN), gaining access to more than 85,000 Optum-employed, contracted and affiliated physicians. Further, hospitals are increasingly leveraging Quest Diagnostics’ strategic offerings — offered through its reference testing business, Collaborative Lab Solutions and outreach lab acquisitions — to access high-quality diagnostics without having to maintain a lab.
In terms of operational efficiency,Quest Diagnostics continues to target 3% annual cost savings and productivity improvements through its Invigorate cost-savings program, which includes structured plans to drive savings and improve productivity across the value chain.
What Ails DGX Stock?
With the new U.S. administration in place, any changes in U.S. healthcare regulation could have a material adverse effect on Quest Diagnostics’ business. An escalating debt level against cash reserves also adds to the risks.
A Glance at DGX’s Estimates
The Zacks Consensus Estimate for Quest Diagnostics’ 2025 and 2026 earnings per share (EPS) is expected to increase 8.6% and 8.2%, respectively, to $9.70 and $10.50. In the past 30 days, the Zacks Consensus Estimate for the company's 2025 EPS has remained unchanged.
Revenues for 2025 are projected to grow 9.2% to $10.78 billion, followed by a 3.7% increase to $11.19 billion in 2026.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Phibro Animal Health and Cencora.
Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 59.8% compared with the industry’s 14.5% growth in the past year.
Cardinal Health, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9% growth. Shares of the company have surged 70.2% compared with the industry’s modest 1.1% gain. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%.
Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.3% compared with the industry’s 3.7%. Shares of the company have rallied 32.4% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.
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.
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.
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Paysafe and Champion Homes have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 8, 2025 – Zacks Equity Research shares Paysafe Ltd. (PSFE - Free Report) as the Bull of the Day and Champion Homes (SKY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Quest Diagnostics (DGX - Free Report) , Phibro Animal Health (PAHC - Free Report) and Cencora (COR - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Amid the fastest rebound in stock market history, gauging a company’s valuation has become essential, and Paysafe Ltd. stands out in terms of value while having respectable growth prospects as well.
As part of the Russel 2000, Paysafe shares still appear to have an abundance of upside at under $15, as small-cap stocks are starting to catch investors' attention and have joined in on the broader market rally.
Attributing to Paysafe’s upside potential are its somewhat essential and innovative offerings as a payment solutions provider. Considering such, Paysafe stock lands the Zacks Bull of the Day, with it noteworthy that its Zacks Financial Transaction Services Industry is in the top 18% of over 240 Zacks industries.
Paysafe Overview
Going public in 2021, Paysafe joined a wave of fintech companies that used SPACs to accelerate their public listings. While sustaining growth and investor confidence hasn’t been easy since Paysafe’s SPAC with Foley Trasimene Acquisition Corp., the company has significant assets in digital wallets and payment processing, enabling businesses and consumers to connect and transact seamlessly.
Furthermore, the risk-to-reward looks very favorable to invest in Paysafe’s specialized payments platform, as PSFE still has the undervalued prospects that investors are searching for with the broader market recouping more than 10% gains in the last three months. To that point, PSFE is still 50% from its 52-week high of $26 and once traded at an all-time high of $230 a share shortly after its SPAC merger.
Paysafe’s Intriguing Valuation
Optimistically, and reassuring to Paysafe’s rebound prospects, is that PSFE trades at just 5X forward earnings compared to an all-time high of 128X and its median of 9X. This is also a significant discount to its industry average of 25X forward earnings, with some prominent peers being PayPal and Fiserv. Plus, Paysafe stock trades at less than 1X forward sales versus the industry average of 6.9X.
Paysafe’s Favorable Outlook
Benefiting from a strong business environment and making Paysafe’s “cheap” valuation more attractive, the company’s total sales are expected to be up 1% this year and are projected to rise another 8% in fiscal 2026 to $1.85 billion.
Even better, Paysafe’s annual earnings are currently slated to increase 12% in FY25 and are forecasted to spike another 15% in FY26 to $2.77 per share.
Bottom Line
Considering the exuberant optimism in the stock market right now, Paysafe stock is certainly worthy of consideration as PSFE is starting to look like a bargain and may be poised to rip higher if the fintech firm can start to reaffirm its favorable outlook.
Bear of the Day:
There tends to be an abundance of opportunity for construction sector stocks during the peak summer season, but Champion Homes may be one with more downside risk ahead.
As a designer of manufactured homes and recreational vehicles (RVs), Champion Homes has a proven niche in its space but is facing increased competition from other modular housing companies like Clayton Homes and Cavo Industries’ Fleetwood Homes.
This, coupled with higher interest rates, has led to lower margins that have started to deflate investor sentiment. Keeping this in mind, Champion Homes stock lands the Zacks Bear of the Day, with it noteworthy that its Zacks Building Products-Mobile Homes and RV Builders Industry is in the bottom 4% of over 240 Zacks industries.
Lackluster Q4 Results & Short Interest Surge
Echoing cause for concern, Champion Homes most recently missed top and bottom-line expectations for its fiscal fourth quarter in May, with a sales and EPS surprise of -1% and -13% respectively.
Although Champion Homes has still posted an average EPS surprise of 25.67% in its last four quarterly reports, news has recently surfaced that the company has experienced a short interest surge, with 3.59 million shares being shorted at the beginning of the month, which is more than 8% of its outstanding shares.
Correlating with the short interest surge, Champion Homes' stock has now dropped more than 30% since its Q4 report to vastly trail the broader market’s 10% rebound and its Zacks Industry’s decline of -6%.
Declining EPS Revisions
Fundamentally, to more downside risk outside of the short interest surge is that earnings estimate revisions for Champion Homes' current fiscal 2026 and FY27 have declined by over 10% in the last 60 days.
The declining EPS revisions have taken away from Champion Homes' reasonable but not necessarily cheap P/E valuation of 19X forward earnings, which is on par with Cavo Industries and their Zacks industry average.
Bottom Line
Considering the decline in EPS revisions, the plausibility of a short squeeze doesn’t look likely for Champion Homes.
Additional content:
What's Fueling the Climb in Quest Diagnostics' Stock?
Quest Diagnostics has shown impressive momentum in the past year, with its shares rallying 27.3%. The performance outpaces the industry’s 5.9% rise and the S&P 500 composite’s 12.3% gain.
Carrying a Zacks Rank #2 (Buy) at present, the renowned clinical laboratory is benefiting from its investments in Advanced Diagnostics, which help deliver and scale innovative services that enhance patient care and drive growth. Quest Diagnostics’ strategy includes generating growth through value-creating acquisitions, utilizing disciplined investment criteria with a high emphasis on accretive outreach purchases and other independent labs. A strong focus on operational excellence also adds to the stock’s appeal.
Headquartered in Secaucus, NJ, Quest Diagnostics delivers a wide range of diagnostic information services to patients, clinicians and healthcare organizations. It serves as a key provider of reference testing for approximately half of the hospitals in the United States, and also offers physician services reimbursed by Medicare’s physician fee schedule, subject to yearly adjustments. Through targeted acquisitions, the company aims to grow its top line by 1-2% annually.
Catalysts Behind DGX’s Growth
Quest Diagnostics’ rally is largely driven by its continued strength in Advanced Diagnostics, particularly in areas like advanced cardiometabolic, autoimmune, brain health, oncology and women's and reproductive health. Robust demand for Alzheimer's disease risk detection blood tests is driving growth in Brain Health.
The company aims to build on this momentum by introducing new biomarkers to help providers better assess Alzheimer's and other forms of dementia. It also expanded its women and reproductive health offerings with a new self-collection option for a specimen for HPV cervical cancer screening at a doctor's office. Quest Diagnostics anticipates generating revenues from its Haystack minimal-residual disease (MRD) test this year.
This year, the company is focused on maximizing productivity from the eight acquisitions completed in 2024. These transactions include LifeLabs in Canada, Allina Health, a leading non-profit health system serving Minnesota and western Wisconsin, and outreach lab assets from Ohio Health and University Hospitals. The acquisition of PathAI Diagnostics further advanced the company’s push into digital pathology and AI to improve the diagnosis of cancer and other diseases.
Quest Diagnostics is also gaining from strong customer relationships. New health plan partnerships with Elevance Health and Sentara Health Plans, which became effective on Jan. 1, 2025, are driving strong volume and revenue gains by expanding into new geographies. The company also became the first independent national lab to be selected for the Optum Health preferred lab network (PLN), gaining access to more than 85,000 Optum-employed, contracted and affiliated physicians. Further, hospitals are increasingly leveraging Quest Diagnostics’ strategic offerings — offered through its reference testing business, Collaborative Lab Solutions and outreach lab acquisitions — to access high-quality diagnostics without having to maintain a lab.
In terms of operational efficiency,Quest Diagnostics continues to target 3% annual cost savings and productivity improvements through its Invigorate cost-savings program, which includes structured plans to drive savings and improve productivity across the value chain.
What Ails DGX Stock?
With the new U.S. administration in place, any changes in U.S. healthcare regulation could have a material adverse effect on Quest Diagnostics’ business. An escalating debt level against cash reserves also adds to the risks.
A Glance at DGX’s Estimates
The Zacks Consensus Estimate for Quest Diagnostics’ 2025 and 2026 earnings per share (EPS) is expected to increase 8.6% and 8.2%, respectively, to $9.70 and $10.50. In the past 30 days, the Zacks Consensus Estimate for the company's 2025 EPS has remained unchanged.
Revenues for 2025 are projected to grow 9.2% to $10.78 billion, followed by a 3.7% increase to $11.19 billion in 2026.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Phibro Animal Health and Cencora.
Phibro Animal Health has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.7%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. Its shares have rallied 59.8% compared with the industry’s 14.5% growth in the past year.
PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9% growth. Shares of the company have surged 70.2% compared with the industry’s modest 1.1% gain. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.3%.
Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.3% compared with the industry’s 3.7%. Shares of the company have rallied 32.4% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6%.
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 >>
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Zacks Investment Research
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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.