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Micron Technology and Wendy's have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 15, 2025 – Zacks Equity Research shares Micron Technology (MU - Free Report) as the Bull of the Day and Wendy’s (WEN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Renaissance IPO ETF (IPO - Free Report) and First Trust US Equity Opportunities ETF (FPX - Free Report) .
Micron Technology has emerged as one of the key beneficiaries of the ongoing AI data center buildout. While companies like Nvidia supply the GPUs that power artificial intelligence models, Micron provides another critical ingredient: memory and storage. As AI workloads grow exponentially, the demand for high-bandwidth memory (HBM), DRAM, and NAND flash has become just as important as processing power, making Micron an up-and-coming player in the AI infrastructure ecosystem.
Shares of Micron are now among the top ten performing stocks in the S&P 500 for 2025, yet the setup remains attractive. The stock endured heavy selling pressure in late 2024 and early 2025, but the rebound off those lows has left MU trading at a reasonable valuation relative to its growth prospects. In fact, analysts project robust earnings acceleration ahead, supported by rising AI-related demand and the recovery of broader memory markets. The stock currently holds a Zacks Rank #1 (Strong Buy) thanks to a steady stream of upward earnings estimate revisions.
Memory plays a vital role in AI data centers. GPUs can only perform at peak efficiency when paired with vast amounts of high-speed memory to handle the enormous datasets required for training and inference. Micron’s leadership in HBM3E and next-generation DRAM positions it to capture significant market share as hyperscalers and enterprises race to expand AI capacity.
With its improving fundamentals, strong technical momentum, and critical role in the AI boom, Micron Technology looks like a compelling investment option at current levels, with room for further upside as the cycle continues to strengthen.
Micron Technology Shares Rally on Upgrades
Micron Technology’s increasingly important role in powering AI infrastructure has caught the attention of Wall Street. Analysts have responded with a wave of optimism, unanimously raising earnings estimates across timeframes and giving the stock to a Zacks Rank #1 (Strong Buy). Over just the past two months, current quarter EPS projections have surged 13.6%, while FY26 estimates are up 6.4%.
The growth outlook is nothing short of explosive. Annual revenue is projected to jump 47% this year and another 34% next year, fueled by soaring demand for high-bandwidth memory (HBM) and advanced DRAM used in AI servers. On the bottom line, Micron is expected to swing sharply higher, with earnings forecast to grow 525% this year and 60.8% in FY26.
Equally compelling is the valuation backdrop. Despite its rally, MU shares now trade at just 10.7x forward earnings, a stark discount compared to many other AI-related semiconductor peers. For investors, this combination of surging growth, analyst upgrades, and discounted valuation makes Micron look like one of the most attractive opportunities in the sector.
Should Investors Buy Shares in Micron Technology?
Micron Technology has firmly established itself as a core enabler of the AI boom. The company’s products are essential for unlocking the full potential of GPUs, making it a critical piece of the data center buildout that is expected to drive trillions of dollars in investment over the next decade.
What makes the story even more compelling is the alignment of factors, including massive earnings growth, strong analyst revisions, and a valuation that still sits at a discount to peers. Few companies can boast earnings expected to rise more than 500% this year, yet still trade at barely 11x forward earnings. That disconnect highlights just how much runway Micron may still have, even after its sharp rebound off 2025 lows.
For investors looking for a way to participate in the AI boom beyond the headline GPU names, Micron offers a unique opportunity. With strong momentum at its back, a leadership position in high-bandwidth memory, and a supportive industry cycle, Micron Technology looks well-positioned to continue climbing higher.
Wendy’s has found itself on the wrong side of investor sentiment, with stagnant sales growth, a plummeting stock price, and a steady stream of downward-trending earnings revisions weighing heavily on the outlook. The challenges facing the company are not unique, fast food has become an intensely competitive space, but they are particularly acute for Wendy’s given its reliance on a narrower menu and more limited global footprint.
The industry itself is facing headwinds. Consumers are shifting preferences rapidly, with growing demand for healthier options, value-focused promotions, and convenience-driven formats like delivery and digital ordering. Wendy’s has a strong brand and loyal following, but it has struggled to keep pace with these changes. The result has been flat to negative comparable sales growth and limited visibility into how the company can reignite momentum.
Adding to the concerns is Wendy’s valuation. Despite weak fundamentals, the stock trades at an elevated multiple relative to its earnings growth outlook, making it difficult to justify from a risk-reward standpoint. Wall Street seems to agree, as analysts have been cutting estimates across timeframes, pushing the stock into Zacks Rank #5 (Strong Sell) territory.
Until Wendy’s can deliver material improvements in sales growth, operational efficiency, or margin expansion, investors may want to steer clear. While the brand remains well-known, the fundamentals suggest that better opportunities exist elsewhere.
Wendy’s Shares Decline Following Downgrades
Wall Street sentiment toward Wendy’s has soured notably, with analysts unanimously lowering earnings estimates across timeframes. Current quarter EPS projections have been cut by 16%, while next quarter estimates are down 17.4%, reflecting fading confidence in the company’s near-term performance.
The growth outlook is equally discouraging. Sales are expected to fall 3.4% this year before rebounding just 4.5% in 2026. Earnings are set to follow a similar path, dropping 12% this year with only a modest 7.9% recovery projected next year. While WEN trades at a forward earnings multiple of 11.1x, its lowest level in a decade, the weak growth profile makes even this seemingly cheap valuation look expensive.
Adding to the pressure, shares have failed to build momentum despite an earnings beat in the most recent quarter. Instead, the stock has continued to roll over, now trading dangerously close to new lows. A confirmed breakdown below support could invite another wave of selling, leaving Wendy’s vulnerable to further underperformance.
For now, the combination of falling estimates, sluggish fundamentals, and technical weakness makes Wendy’s a difficult name to own, even at depressed levels.
Should Investors Avoid Wendy’s Stock?
Given the current setup, it’s hard to make a bullish case for Wendy’s. Analyst downgrades, weak sales projections, and a stock price flirting with new lows all point to continued downside risk.
Even at its lowest forward multiple in a decade, Wendy’s valuation still looks stretched relative to its sluggish growth profile. Without a clear catalyst for improvement, the stock remains vulnerable.
Until Wendy’s can demonstrate a sustainable path back to growth, investors are likely better served by avoiding the name and focusing on stronger operators in the restaurant space. For now, WEN looks like a value trap, not a value opportunity.
Additional content:
U.S. IPO Market Rebounding Fast: ETFs Likely to Gain
The initial public offerings (IPOs) market started gaining momentum in 2024. There were 150 IPOs in the U.S. market in 2024, raising $29.6 billion, per a Renaissance Capital article. However, in spite of a more than 50% increase in proceeds compared to 2023, deal flow was still tepid by historical standards, the article indicated.
However, the year 2025 has shown signs of a rebound. The market is now set to recommence in the fall as the initial phase of the year was marred by tariff-led worries, per another Renaissance Capital article.
Best Deal Activities Since 2021?
Year to date, IPOs have raised $23 billion, in line with this point last year, per Renaissance Capital. As the market approaches fall, Renaissance expects the quickest clip of deal activity since 2021, as more companies speed up listing plans.
Goldman Sachs also echoed the same view. Goldman is likely to witness its busiest week for initial public offerings since July 2021, its CEO David Solomon said in a CNBC interview on Wednesday, reported Reuters, as quoted on Yahoo Finance.
Meanwhile, Renaissance Capital noted that while attention is on high-growth and most-talked-about areas like tech, fintech, AI and crypto, the IPO pipeline also includes biotechs, restaurants, banks and energy companies.
Renaissance Capital went on to forecast that 40 to 60 U.S. IPOs could raise roughly $10 billion between now and year-end. This would take the 2025 tally to 190 IPOs, raising about $35 billion.
Reasons for the Rebound
A charged-up equity market and the likelihood of Fed rate cuts are probably the factors behind the revival. A strong stock market normally indicates investors’ bullish view and increases the chances of a company intending to go public getting a higher valuation.
Cheaper capital (meaning if the Fed continues to cut rates) encourages investors to explore other high-growth avenues. Equity valuations are also likely to rise, as the cost of capital decreases in a low-rate environment, which in turn boosts IPO pricing.
Moreover, decent economic growth also favors an IPO or the corporate environment. Then there’s the AI boom. Any name associated with tech, crypto and AI is likely to see almost sure-shot success in their IPOs, thus enabling them to raise enough funds to finance their high-growth future tech initiatives.
Against this backdrop, below we highlight a couple of IPO-based exchange-traded funds (ETFs) in detail.
ETFs in Focus
Renaissance IPO ETF
The Renaissance IPO Index looks to offer exposure to 80% of the total market capitalization of newly listed companies that have gone public within the last three years and meet certain criteria.
The fund charges 60 bps in fees. Reddit (15.20%), Astera Labs (15.07%) and Arm Holdings (8.67%) are the top three holdings of the fund. The IPO ETF has gained 18% this year.
First Trust US Equity Opportunities ETF
The underlying IPOX-100 U.S. Index is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX Composite U.S. Index. The IPOX Composite U.S. Index measures the average performance of U.S. IPOs during their first 1,000 trading days.
The fund charges 61 bps in fees. GE Vernova (10.64%), Palantir (8.83%) and Applovin (6.84%) are the top three holdings of the fund. The FPX ETF has advanced about 30% so far this year.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
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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Micron Technology and Wendy's have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 15, 2025 – Zacks Equity Research shares Micron Technology (MU - Free Report) as the Bull of the Day and Wendy’s (WEN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Renaissance IPO ETF (IPO - Free Report) and First Trust US Equity Opportunities ETF (FPX - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
Micron Technology has emerged as one of the key beneficiaries of the ongoing AI data center buildout. While companies like Nvidia supply the GPUs that power artificial intelligence models, Micron provides another critical ingredient: memory and storage. As AI workloads grow exponentially, the demand for high-bandwidth memory (HBM), DRAM, and NAND flash has become just as important as processing power, making Micron an up-and-coming player in the AI infrastructure ecosystem.
Shares of Micron are now among the top ten performing stocks in the S&P 500 for 2025, yet the setup remains attractive. The stock endured heavy selling pressure in late 2024 and early 2025, but the rebound off those lows has left MU trading at a reasonable valuation relative to its growth prospects. In fact, analysts project robust earnings acceleration ahead, supported by rising AI-related demand and the recovery of broader memory markets. The stock currently holds a Zacks Rank #1 (Strong Buy) thanks to a steady stream of upward earnings estimate revisions.
Memory plays a vital role in AI data centers. GPUs can only perform at peak efficiency when paired with vast amounts of high-speed memory to handle the enormous datasets required for training and inference. Micron’s leadership in HBM3E and next-generation DRAM positions it to capture significant market share as hyperscalers and enterprises race to expand AI capacity.
With its improving fundamentals, strong technical momentum, and critical role in the AI boom, Micron Technology looks like a compelling investment option at current levels, with room for further upside as the cycle continues to strengthen.
Micron Technology Shares Rally on Upgrades
Micron Technology’s increasingly important role in powering AI infrastructure has caught the attention of Wall Street. Analysts have responded with a wave of optimism, unanimously raising earnings estimates across timeframes and giving the stock to a Zacks Rank #1 (Strong Buy). Over just the past two months, current quarter EPS projections have surged 13.6%, while FY26 estimates are up 6.4%.
The growth outlook is nothing short of explosive. Annual revenue is projected to jump 47% this year and another 34% next year, fueled by soaring demand for high-bandwidth memory (HBM) and advanced DRAM used in AI servers. On the bottom line, Micron is expected to swing sharply higher, with earnings forecast to grow 525% this year and 60.8% in FY26.
Equally compelling is the valuation backdrop. Despite its rally, MU shares now trade at just 10.7x forward earnings, a stark discount compared to many other AI-related semiconductor peers. For investors, this combination of surging growth, analyst upgrades, and discounted valuation makes Micron look like one of the most attractive opportunities in the sector.
Should Investors Buy Shares in Micron Technology?
Micron Technology has firmly established itself as a core enabler of the AI boom. The company’s products are essential for unlocking the full potential of GPUs, making it a critical piece of the data center buildout that is expected to drive trillions of dollars in investment over the next decade.
What makes the story even more compelling is the alignment of factors, including massive earnings growth, strong analyst revisions, and a valuation that still sits at a discount to peers. Few companies can boast earnings expected to rise more than 500% this year, yet still trade at barely 11x forward earnings. That disconnect highlights just how much runway Micron may still have, even after its sharp rebound off 2025 lows.
For investors looking for a way to participate in the AI boom beyond the headline GPU names, Micron offers a unique opportunity. With strong momentum at its back, a leadership position in high-bandwidth memory, and a supportive industry cycle, Micron Technology looks well-positioned to continue climbing higher.
Bear of the Day:
Wendy’s has found itself on the wrong side of investor sentiment, with stagnant sales growth, a plummeting stock price, and a steady stream of downward-trending earnings revisions weighing heavily on the outlook. The challenges facing the company are not unique, fast food has become an intensely competitive space, but they are particularly acute for Wendy’s given its reliance on a narrower menu and more limited global footprint.
The industry itself is facing headwinds. Consumers are shifting preferences rapidly, with growing demand for healthier options, value-focused promotions, and convenience-driven formats like delivery and digital ordering. Wendy’s has a strong brand and loyal following, but it has struggled to keep pace with these changes. The result has been flat to negative comparable sales growth and limited visibility into how the company can reignite momentum.
Adding to the concerns is Wendy’s valuation. Despite weak fundamentals, the stock trades at an elevated multiple relative to its earnings growth outlook, making it difficult to justify from a risk-reward standpoint. Wall Street seems to agree, as analysts have been cutting estimates across timeframes, pushing the stock into Zacks Rank #5 (Strong Sell) territory.
Until Wendy’s can deliver material improvements in sales growth, operational efficiency, or margin expansion, investors may want to steer clear. While the brand remains well-known, the fundamentals suggest that better opportunities exist elsewhere.
Wendy’s Shares Decline Following Downgrades
Wall Street sentiment toward Wendy’s has soured notably, with analysts unanimously lowering earnings estimates across timeframes. Current quarter EPS projections have been cut by 16%, while next quarter estimates are down 17.4%, reflecting fading confidence in the company’s near-term performance.
The growth outlook is equally discouraging. Sales are expected to fall 3.4% this year before rebounding just 4.5% in 2026. Earnings are set to follow a similar path, dropping 12% this year with only a modest 7.9% recovery projected next year. While WEN trades at a forward earnings multiple of 11.1x, its lowest level in a decade, the weak growth profile makes even this seemingly cheap valuation look expensive.
Adding to the pressure, shares have failed to build momentum despite an earnings beat in the most recent quarter. Instead, the stock has continued to roll over, now trading dangerously close to new lows. A confirmed breakdown below support could invite another wave of selling, leaving Wendy’s vulnerable to further underperformance.
For now, the combination of falling estimates, sluggish fundamentals, and technical weakness makes Wendy’s a difficult name to own, even at depressed levels.
Should Investors Avoid Wendy’s Stock?
Given the current setup, it’s hard to make a bullish case for Wendy’s. Analyst downgrades, weak sales projections, and a stock price flirting with new lows all point to continued downside risk.
Even at its lowest forward multiple in a decade, Wendy’s valuation still looks stretched relative to its sluggish growth profile. Without a clear catalyst for improvement, the stock remains vulnerable.
Until Wendy’s can demonstrate a sustainable path back to growth, investors are likely better served by avoiding the name and focusing on stronger operators in the restaurant space. For now, WEN looks like a value trap, not a value opportunity.
Additional content:
U.S. IPO Market Rebounding Fast: ETFs Likely to Gain
The initial public offerings (IPOs) market started gaining momentum in 2024. There were 150 IPOs in the U.S. market in 2024, raising $29.6 billion, per a Renaissance Capital article. However, in spite of a more than 50% increase in proceeds compared to 2023, deal flow was still tepid by historical standards, the article indicated.
However, the year 2025 has shown signs of a rebound. The market is now set to recommence in the fall as the initial phase of the year was marred by tariff-led worries, per another Renaissance Capital article.
Best Deal Activities Since 2021?
Year to date, IPOs have raised $23 billion, in line with this point last year, per Renaissance Capital. As the market approaches fall, Renaissance expects the quickest clip of deal activity since 2021, as more companies speed up listing plans.
Goldman Sachs also echoed the same view. Goldman is likely to witness its busiest week for initial public offerings since July 2021, its CEO David Solomon said in a CNBC interview on Wednesday, reported Reuters, as quoted on Yahoo Finance.
Meanwhile, Renaissance Capital noted that while attention is on high-growth and most-talked-about areas like tech, fintech, AI and crypto, the IPO pipeline also includes biotechs, restaurants, banks and energy companies.
Renaissance Capital went on to forecast that 40 to 60 U.S. IPOs could raise roughly $10 billion between now and year-end. This would take the 2025 tally to 190 IPOs, raising about $35 billion.
Reasons for the Rebound
A charged-up equity market and the likelihood of Fed rate cuts are probably the factors behind the revival. A strong stock market normally indicates investors’ bullish view and increases the chances of a company intending to go public getting a higher valuation.
Cheaper capital (meaning if the Fed continues to cut rates) encourages investors to explore other high-growth avenues. Equity valuations are also likely to rise, as the cost of capital decreases in a low-rate environment, which in turn boosts IPO pricing.
Moreover, decent economic growth also favors an IPO or the corporate environment. Then there’s the AI boom. Any name associated with tech, crypto and AI is likely to see almost sure-shot success in their IPOs, thus enabling them to raise enough funds to finance their high-growth future tech initiatives.
Against this backdrop, below we highlight a couple of IPO-based exchange-traded funds (ETFs) in detail.
ETFs in Focus
Renaissance IPO ETF
The Renaissance IPO Index looks to offer exposure to 80% of the total market capitalization of newly listed companies that have gone public within the last three years and meet certain criteria.
The fund charges 60 bps in fees. Reddit (15.20%), Astera Labs (15.07%) and Arm Holdings (8.67%) are the top three holdings of the fund. The IPO ETF has gained 18% this year.
First Trust US Equity Opportunities ETF
The underlying IPOX-100 U.S. Index is a modified value-weighted price index measuring the performance of the top 100 companies ranked quarterly by market capitalization in the IPOX Composite U.S. Index. The IPOX Composite U.S. Index measures the average performance of U.S. IPOs during their first 1,000 trading days.
The fund charges 61 bps in fees. GE Vernova (10.64%), Palantir (8.83%) and Applovin (6.84%) are the top three holdings of the fund. The FPX ETF has advanced about 30% so far this year.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
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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.