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OppFi and UnitedHealth have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 16, 2025 – Zacks Equity Research shares OppFi (OPFI - Free Report) as the Bull of the Day and UnitedHealth Group (UNH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon (AMZN - Free Report) , Tesla (TSLA - Free Report) and Alphabet (GOOGL - Free Report) .
OppFi operates as a specialty finance platform for community banks to extend credit in the United States. The company delivers secure and compliant access to trusted banks across the country, leveraging data-driven marketing strategies.
This financial stock is displaying relative strength, widely outperforming the major U.S. indexes this year. The broader financial sector is also hitting a series of 52-week highs. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
A Zacks Rank #1 (Strong Buy), OppFi is part of the Zacks Financial Transaction Services industry group, which currently ranks in the top 19% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
OppFi is committed to bridging the credit access gap in the United States. About 60 million Americans are underserved by the banking industry, and this is where OppFi aims to address the financial challenges faced by their customers.
OppFi’s mission is to facilitate and make available affordable credit to those that may lack access to traditional options. The company offers installment loans through its technology platform and serves consumers who are mainly turned away by mainstream options. It was founded in 2012 and is headquartered in Chicago.
Earnings Trends and Future Estimates
OppFi has established a healthy track record of beating earnings estimates; the company hasn’t missed the EPS mark since early 2023. Back in August, OppFi reported second-quarter earnings of 45 cents per share, which marked a 50% surprise over the $0.30/share consensus estimate.
OppFi delivered a 54.4% average earnings surprise over the last four quarters. Consistently beating earnings estimates is a recipe for success.
Analysts covering OppFi are mainly in agreement and have been raising earnings estimates across the board. Estimates for the full year have been increased by +15.45% in the past 60 days. The 2025 Zacks Consensus Estimate now stands at $1.42/share, reflecting potential growth of 49.5% relative to last year. Revenues for the full year are projected to climb nearly 12% to $589 million.
Let’s Get Technical
This market leader has seen its stock advance more than 50% already this year. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is outperforming and receiving positive earnings estimate revisions.
Notice how the 200-day (blue line) moving average is sloping up. The stock appears to be finding support at this critical level, providing investors with a low-risk entry point. With both strong fundamental and technical indicators, OPFI stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, OppFi has recently witnessed positive revisions. As long as this trend remains intact (and OPFI continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why OPFI stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put OPFI on your watchlist.
UnitedHealth Group operates as a diversified healthcare company in the United States. The company offers consumer-oriented health benefit plans and services. It also provides care delivery and management, wellness, and health-related financial services to patients.
Founded in 1974 and headquartered in Minnesota, UnitedHealth Group delivers a full spectrum of health benefit programs for individuals, employers, military service members, retirees, as well as Medicare and Medicaid beneficiaries.
Why UNH Stock Should Be Avoided
The Buffett-led Berkshire Hathaway recently revealed a stake in the struggling company. Though it’s easy to understand why, as health insurers share many of the underlying characteristics that make insurance an attractive industry to Buffett. Recurring insurance premiums combined with a sizeable dividend fit the Berkshire model.
Yes, UnitedHealth Group boasts a large and diverse membership base within the managed-care market. And yes, the company has acquired a number of competing healthcare providers over the years and also built its prescription drug business through OptumRx.
However, these positives mask deeper structural, operational, and regulatory vulnerabilities. UNH stock has plummeted about 30% year-to-date, reflecting persistent risks that are likely to erode long-term value.
The U.S. Department of Justice is conducting a criminal investigation into potential Medicare fraud, including allegations of upcoding—making patients appear sicker to secure higher reimbursements. This probe, alongside whistleblower cases, threatens fines, operational restrictions, or even structural changes like divestitures.
UnitedHealth’s core business has been hammered by surging medical expenses, leading to repeated downward revisions in earnings guidance. The company's medical care ratio—a key metric measuring claims costs as a percentage of premiums—hit 89.4% in recent quarters, far above historical norms and compressing margins significantly. Management has acknowledged underestimating care activity and cost trends, resulting in "outsized growth" that overwhelmed pricing adjustments.
For fiscal 2025, UNH slashed its EPS outlook to $16 per share, effectively signaling no growth until 2026, with recovery dependent on premium hikes and cost controls. Medical cost inflation remains a persistent threat, with trends potentially exceeding 7.5%-10% annually due to factors like nonemergency procedures and broader healthcare utilization.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, UnitedHealth Group is a component of the Zacks Medical – HMOs industry group, which currently ranks in the bottom 5% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past year:
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
UNH shares have been underperforming the market over the past year by a wide margin. After a brief upward move following the announcement of the Berkshire stake, the stock represents a compelling short opportunity as we head further into the final stretch of 2025.
Recent Earnings Misses & Deteriorating Outlook
UnitedHealth Group has fallen short of earnings estimates in two of the past three quarters. Back in July, the company reported second-quarter earnings of $4.08 per share, missing the Zacks Consensus Estimate by -15.7%.
UNH has posted a trailing four-quarter average earnings miss of -3.3%. Consistently falling short of earnings estimates is a recipe for underperformance, and UNH is no exception.
The healthcare giant has been on the receiving end of negative earnings estimate revisions as of late. Looking at the current quarter, analysts have slashed estimates by a whopping -45.12% in the past 60 days. The Q3 Zacks Consensus EPS Estimate is now $2.87 per share, reflecting negative growth of nearly -60% relative to the year-ago period.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, UNH stock is in a sustained downtrend. Notice how the stock recently hit a 52-week low in August, widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
UNH stock has experienced what is known as a “death cross,” whereby the stock’s 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% this year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that UNH is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Berkshire's investment highlights UNH's scale and cash generation potential, but it does not mitigate the cascade of risks—from cost inflation and legal probes to operational failures and regulatory threats. The stock's 30% decline in 2025 is not an overreaction, but a rational response to a company facing challenges in a scrutinized industry.
Investors seeking stability should avoid UNH, as short-term catalysts like premium hikes may falter amid broader headwinds. It's a value trap best sidestepped until clarity emerges.
The race to transform transportation is heating up, with big tech and auto giants accelerating their push into autonomous vehicles (AVs) and robotaxis. Once seen as a distant dream, the robotaxi industry is now becoming a reality in the United States.
Amazon’s Zoox, Tesla and Alphabet’s Waymo are emerging as the biggest names to watch. Each company has a different strategy, but they all share the same ambition— to shape the future of urban mobility and bring driverless rides into the mainstream.
Amazon’s Zoox Enters the Spotlight
Amazon’s Zoox made headlines last week as it officially began offering rides in Las Vegas. For now, the rides are free, limited to a few locations. These are expected to be expanded soon across the city. Eventually, passengers will pay for the service once regulators give the green light. This marks a significant milestone for Amazon, which bought Zoox in 2020 for $1.3 billion and has been quietly building toward this moment for five years.
What sets Zoox apart is its quirky vehicle design. While most players retrofit existing cars, Zoox built its robotaxi from the ground up. The boxy shape has even earned it the nickname “toaster on wheels.” The vehicle has no steering wheel and features a cabin where passengers sit face-to-face. It can drive forward and backward without turning around.
Following the launch in Las Vegas, the company plans to bring its service to San Francisco later this year and has Austin and Miami on its roadmap. Testing is already underway in Los Angeles, Atlanta, and Seattle. With its fresh approach to design and strong backing from Amazon, Zoox is positioning itself as a challenger to companies like Waymo and Tesla.
Tesla’s Bold Push into Robotaxis
Tesla, long associated with autonomous driving ambitions, finally brought its robotaxi project to life this year. It launched its first robotaxi rides in Austin, TX, back in June. Initially, the service was small, restricted to a limited group of riders. But Tesla quickly expanded its fleet, routes, and rider base. The company has since added rides in the Bay Area and received approval in Nevada to start testing.
Having said that, Tesla’s robotaxi service is not fully driverless yet. Human supervisors, called “Safety Monitors,” still sit inside the cars. In Austin, they ride in the passenger seat for city drives and move to the driver’s seat for highway routes. This cautious approach reflects Tesla’s strategy to roll out its service step by step, while still showcasing progress to customers and regulators.
CEO Elon Musk has ambitious goals for the program. He has said Tesla’s robotaxi could reach half the U.S. population by the end of this year, though achieving that will require a rapid geographic expansion. The company has also tied Musk’s massive $1 trillion pay package to bold targets, including 10 million Full Self-Driving subscriptions and 1 million robotaxis in commercial use. Even so, Tesla’s brand and its massive fleet of vehicles are likely to give it an edge once the company can scale its autonomous platform.
Alphabet’s Waymo Is the Frontrunner
Alphabet’s Waymo is the most established name in the robotaxi business. Backed by billions of dollars and partnerships with automakers and ride-hailing platforms, Waymo has quietly built a wide lead. The company already runs fully driverless Level 4 services in cities such as Phoenix, Los Angeles, San Francisco, Austin and Atlanta. More recently, it expanded into Denver and Seattle. Waymo delivers around 250,000 paid rides every week, a scale far beyond its competitors.
In May, Waymo notified that it has completed over 10 million paid rides, a milestone that underscores its dominance. Expansion plans are also underway, with Miami and Washington, D.C., set to join its network next year. This wide coverage shows how much progress Waymo has made in turning its technology into a real, everyday service.
What sets Waymo apart is not just its technology but also its partnerships. Deals with Hyundai, Uber, and Zeekr give it more flexibility in how and where it can deploy. With Alphabet’s resources and long-term commitment, Waymo is pushing the boundaries in the autonomous ride-hailing game.
GOOGL stock currently carries a Zacks Rank #3 (Hold).
The competition among Amazon, Tesla and Alphabet highlights how fast the robotaxi industry is evolving. Amazon’s Zoox is the fresh entrant with a futuristic design and ambitious plans. Tesla is racing to prove it can scale its vision of driverless cars while managing regulatory hurdles. Waymo, meanwhile, is already operating at a commercial scale, setting the benchmark for the rest. The journey is still in its early stages. Regulatory challenges and safety concerns remain. But what’s certain is that the robotaxi revolution is picking up speed.
Free: Instant Access to Zacks' Market-Crushing Strategies
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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
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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OppFi and UnitedHealth have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 16, 2025 – Zacks Equity Research shares OppFi (OPFI - Free Report) as the Bull of the Day and UnitedHealth Group (UNH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon (AMZN - Free Report) , Tesla (TSLA - Free Report) and Alphabet (GOOGL - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
OppFi operates as a specialty finance platform for community banks to extend credit in the United States. The company delivers secure and compliant access to trusted banks across the country, leveraging data-driven marketing strategies.
This financial stock is displaying relative strength, widely outperforming the major U.S. indexes this year. The broader financial sector is also hitting a series of 52-week highs. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
A Zacks Rank #1 (Strong Buy), OppFi is part of the Zacks Financial Transaction Services industry group, which currently ranks in the top 19% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months.
Take note of the favorable characteristics for this group below. Stocks in this industry are relatively undervalued based on traditional valuation metrics. They are also projected to experience above-average earnings growth, which signifies a powerful combination that should lead to higher prices in the future.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Company Description
OppFi is committed to bridging the credit access gap in the United States. About 60 million Americans are underserved by the banking industry, and this is where OppFi aims to address the financial challenges faced by their customers.
OppFi’s mission is to facilitate and make available affordable credit to those that may lack access to traditional options. The company offers installment loans through its technology platform and serves consumers who are mainly turned away by mainstream options. It was founded in 2012 and is headquartered in Chicago.
Earnings Trends and Future Estimates
OppFi has established a healthy track record of beating earnings estimates; the company hasn’t missed the EPS mark since early 2023. Back in August, OppFi reported second-quarter earnings of 45 cents per share, which marked a 50% surprise over the $0.30/share consensus estimate.
OppFi delivered a 54.4% average earnings surprise over the last four quarters. Consistently beating earnings estimates is a recipe for success.
Analysts covering OppFi are mainly in agreement and have been raising earnings estimates across the board. Estimates for the full year have been increased by +15.45% in the past 60 days. The 2025 Zacks Consensus Estimate now stands at $1.42/share, reflecting potential growth of 49.5% relative to last year. Revenues for the full year are projected to climb nearly 12% to $589 million.
Let’s Get Technical
This market leader has seen its stock advance more than 50% already this year. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is outperforming and receiving positive earnings estimate revisions.
Notice how the 200-day (blue line) moving average is sloping up. The stock appears to be finding support at this critical level, providing investors with a low-risk entry point. With both strong fundamental and technical indicators, OPFI stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, OppFi has recently witnessed positive revisions. As long as this trend remains intact (and OPFI continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why OPFI stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put OPFI on your watchlist.
Bear of the Day:
UnitedHealth Group operates as a diversified healthcare company in the United States. The company offers consumer-oriented health benefit plans and services. It also provides care delivery and management, wellness, and health-related financial services to patients.
Founded in 1974 and headquartered in Minnesota, UnitedHealth Group delivers a full spectrum of health benefit programs for individuals, employers, military service members, retirees, as well as Medicare and Medicaid beneficiaries.
Why UNH Stock Should Be Avoided
The Buffett-led Berkshire Hathaway recently revealed a stake in the struggling company. Though it’s easy to understand why, as health insurers share many of the underlying characteristics that make insurance an attractive industry to Buffett. Recurring insurance premiums combined with a sizeable dividend fit the Berkshire model.
Yes, UnitedHealth Group boasts a large and diverse membership base within the managed-care market. And yes, the company has acquired a number of competing healthcare providers over the years and also built its prescription drug business through OptumRx.
However, these positives mask deeper structural, operational, and regulatory vulnerabilities. UNH stock has plummeted about 30% year-to-date, reflecting persistent risks that are likely to erode long-term value.
The U.S. Department of Justice is conducting a criminal investigation into potential Medicare fraud, including allegations of upcoding—making patients appear sicker to secure higher reimbursements. This probe, alongside whistleblower cases, threatens fines, operational restrictions, or even structural changes like divestitures.
UnitedHealth’s core business has been hammered by surging medical expenses, leading to repeated downward revisions in earnings guidance. The company's medical care ratio—a key metric measuring claims costs as a percentage of premiums—hit 89.4% in recent quarters, far above historical norms and compressing margins significantly. Management has acknowledged underestimating care activity and cost trends, resulting in "outsized growth" that overwhelmed pricing adjustments.
For fiscal 2025, UNH slashed its EPS outlook to $16 per share, effectively signaling no growth until 2026, with recovery dependent on premium hikes and cost controls. Medical cost inflation remains a persistent threat, with trends potentially exceeding 7.5%-10% annually due to factors like nonemergency procedures and broader healthcare utilization.
The Zacks Rundown
A Zacks Rank #5 (Strong Sell) stock, UnitedHealth Group is a component of the Zacks Medical – HMOs industry group, which currently ranks in the bottom 5% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past year:
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
UNH shares have been underperforming the market over the past year by a wide margin. After a brief upward move following the announcement of the Berkshire stake, the stock represents a compelling short opportunity as we head further into the final stretch of 2025.
Recent Earnings Misses & Deteriorating Outlook
UnitedHealth Group has fallen short of earnings estimates in two of the past three quarters. Back in July, the company reported second-quarter earnings of $4.08 per share, missing the Zacks Consensus Estimate by -15.7%.
UNH has posted a trailing four-quarter average earnings miss of -3.3%. Consistently falling short of earnings estimates is a recipe for underperformance, and UNH is no exception.
The healthcare giant has been on the receiving end of negative earnings estimate revisions as of late. Looking at the current quarter, analysts have slashed estimates by a whopping -45.12% in the past 60 days. The Q3 Zacks Consensus EPS Estimate is now $2.87 per share, reflecting negative growth of nearly -60% relative to the year-ago period.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, UNH stock is in a sustained downtrend. Notice how the stock recently hit a 52-week low in August, widely underperforming the major indices. Also note that shares are trading below a downward-sloping 200-day (red line) moving average – another good sign for the bears.
UNH stock has experienced what is known as a “death cross,” whereby the stock’s 50-day moving average (blue line) crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 30% this year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that UNH is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Berkshire's investment highlights UNH's scale and cash generation potential, but it does not mitigate the cascade of risks—from cost inflation and legal probes to operational failures and regulatory threats. The stock's 30% decline in 2025 is not an overreaction, but a rational response to a company facing challenges in a scrutinized industry.
Investors seeking stability should avoid UNH, as short-term catalysts like premium hikes may falter amid broader headwinds. It's a value trap best sidestepped until clarity emerges.
Additional content:
Robotaxi Showdown: GOOGL, TSLA, AMZN Accelerate Driverless Race
The race to transform transportation is heating up, with big tech and auto giants accelerating their push into autonomous vehicles (AVs) and robotaxis. Once seen as a distant dream, the robotaxi industry is now becoming a reality in the United States.
Amazon’s Zoox, Tesla and Alphabet’s Waymo are emerging as the biggest names to watch. Each company has a different strategy, but they all share the same ambition— to shape the future of urban mobility and bring driverless rides into the mainstream.
Amazon’s Zoox Enters the Spotlight
Amazon’s Zoox made headlines last week as it officially began offering rides in Las Vegas. For now, the rides are free, limited to a few locations. These are expected to be expanded soon across the city. Eventually, passengers will pay for the service once regulators give the green light. This marks a significant milestone for Amazon, which bought Zoox in 2020 for $1.3 billion and has been quietly building toward this moment for five years.
What sets Zoox apart is its quirky vehicle design. While most players retrofit existing cars, Zoox built its robotaxi from the ground up. The boxy shape has even earned it the nickname “toaster on wheels.” The vehicle has no steering wheel and features a cabin where passengers sit face-to-face. It can drive forward and backward without turning around.
Following the launch in Las Vegas, the company plans to bring its service to San Francisco later this year and has Austin and Miami on its roadmap. Testing is already underway in Los Angeles, Atlanta, and Seattle. With its fresh approach to design and strong backing from Amazon, Zoox is positioning itself as a challenger to companies like Waymo and Tesla.
Tesla’s Bold Push into Robotaxis
Tesla, long associated with autonomous driving ambitions, finally brought its robotaxi project to life this year. It launched its first robotaxi rides in Austin, TX, back in June. Initially, the service was small, restricted to a limited group of riders. But Tesla quickly expanded its fleet, routes, and rider base. The company has since added rides in the Bay Area and received approval in Nevada to start testing.
Having said that, Tesla’s robotaxi service is not fully driverless yet. Human supervisors, called “Safety Monitors,” still sit inside the cars. In Austin, they ride in the passenger seat for city drives and move to the driver’s seat for highway routes. This cautious approach reflects Tesla’s strategy to roll out its service step by step, while still showcasing progress to customers and regulators.
CEO Elon Musk has ambitious goals for the program. He has said Tesla’s robotaxi could reach half the U.S. population by the end of this year, though achieving that will require a rapid geographic expansion. The company has also tied Musk’s massive $1 trillion pay package to bold targets, including 10 million Full Self-Driving subscriptions and 1 million robotaxis in commercial use. Even so, Tesla’s brand and its massive fleet of vehicles are likely to give it an edge once the company can scale its autonomous platform.
Alphabet’s Waymo Is the Frontrunner
Alphabet’s Waymo is the most established name in the robotaxi business. Backed by billions of dollars and partnerships with automakers and ride-hailing platforms, Waymo has quietly built a wide lead. The company already runs fully driverless Level 4 services in cities such as Phoenix, Los Angeles, San Francisco, Austin and Atlanta. More recently, it expanded into Denver and Seattle. Waymo delivers around 250,000 paid rides every week, a scale far beyond its competitors.
In May, Waymo notified that it has completed over 10 million paid rides, a milestone that underscores its dominance. Expansion plans are also underway, with Miami and Washington, D.C., set to join its network next year. This wide coverage shows how much progress Waymo has made in turning its technology into a real, everyday service.
What sets Waymo apart is not just its technology but also its partnerships. Deals with Hyundai, Uber, and Zeekr give it more flexibility in how and where it can deploy. With Alphabet’s resources and long-term commitment, Waymo is pushing the boundaries in the autonomous ride-hailing game.
GOOGL stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Road Ahead
The competition among Amazon, Tesla and Alphabet highlights how fast the robotaxi industry is evolving. Amazon’s Zoox is the fresh entrant with a futuristic design and ambitious plans. Tesla is racing to prove it can scale its vision of driverless cars while managing regulatory hurdles. Waymo, meanwhile, is already operating at a commercial scale, setting the benchmark for the rest. The journey is still in its early stages. Regulatory challenges and safety concerns remain. But what’s certain is that the robotaxi revolution is picking up speed.
Free: Instant Access to Zacks' Market-Crushing Strategies
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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
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.