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National Vision Gains 166.5% in a Year: What's Driving the Rally?
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Key Takeaways
National Vision shares have soared 166.5% in a year, far outpacing industry and S&P 500 performance.
EYE's transformation includes refreshed branding, leadership changes, and strategic partnerships.
Owned & Host segment growth is boosted by new store openings and over 1M remote exams conducted.
National Vision (EYE - Free Report) has witnessed strong momentum over the past year. Shares of the company have risen 166.5%, outperforming the industry’s 13.3% decline during the same time frame. The S&P 500 composite has increased 18.2%.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
National Vision is a major optical retailer in the United States. As of June 28, 2025, the company operated through a diverse portfolio of 1,240 retail stores across four brands, along with associated omnichannel consumer websites. National Vision operates through one reportable segment, Owned & Host, which includes two owned brands — America’s Best Contacts and Eyeglasses (America’s Best) and Eyeglass World.
Factors Favoring EYE’s Share Price Growth
National Vision’s share price is trending upward, prompted by its ongoing strategic transformation. According to management, the transformation initiatives are gaining traction and the strategic focus on key customer segments is driving improvement in its comparable sales.
The company recently rolled out its refreshed branding and is preparing to unveil a major identity overhaul for America’s Best. At Eyeglass World, National Vision recently made the strategic decision to modify the doctor model in Florida to enhance patient experience and provide greater access to care. Additionally, it has advanced its transformation efforts by bringing in new leadership to execute a multi-year strategic plan, most recently onboarding a new CFO. A solid second-quarter performance is also expected to contribute further.
Investors are currently focused on the growth of the company’s Owned & Host segment, which continues to benefit from positive comparable store sales and new store openings. Strengthening its market position, America’s Best became the exclusive U.S. retail partner for the Florence by Mills eyewear collection and launched an exclusive nationwide partnership with Pair Eyewear.
To further drive growth, the company is expanding exam capacity through remote capabilities, with about two-thirds of its stores now equipped with remote technology. In the second quarter, remote exam technology reached a major milestone, with over 1 million exams conducted.
Meanwhile, National Vision’s raised fiscal 2025 outlook looks encouraging. Fiscal 2025 revenues are now expected to be in the range of $1.93-$1.97 billion (up from $1.92-$1.95 billion). Adjusted EPS is now estimated to be in the band of 62-70 cents (up from 59-67 cents).
Image Source: Zacks Investment Research
Operationally, in the second quarter, gross margin expanded 2166 basis points (bps) despite a 3.5% rise in the cost of revenues. Also, the operating margin expanded 206 bps. These factors have positively impacted the stock, contributing to its rise.
Factors That May Offset EYE’s Gains
EYE’s business remains vulnerable to growing geopolitical complexities, supply-chain disruptions, shortages of healthcare staff and volatility in capital markets. Additionally, the ongoing changes in U.S. trade policy and retaliatory tariffs look discouraging. All these factors continue to weigh on its profitability. In the second quarter of 2025, SG&A expenditures rose 6.8% year over year.
From a solvency viewpoint, National Vision has a significant amount of indebtedness. It exited the second quarter of 2025 with cash and cash equivalents of $48 million, and short-term debt of $17 million. However, long-term debt was $256 million, much higher than cash levels. This leverage could have several consequences, including greater exposure to adverse economic, industry, or competitive developments.
A Look at EYE’s Estimates
The Zacks Consensus Estimate for 2025 EPS has remained unchanged at 68 cents in the past 30 days.
The company has an estimated long-term EPS growth rate of 22.7% compared with the industry’s 12.9%.
Masimo’s shares have jumped 18.9% in the past year. Estimates for the company’s 2025 EPS have increased 5.2% to $5.24 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.8%.
Estimates for Phibro Animal Health’s fiscal 2026 EPS have climbed 5 cents to $2.35 in the past 30 days. Shares of the company have surged 76.5% in the past year compared with the industry’s 3.4% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.9%.
Estimates for Envista’s 2025 earnings per share have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9%. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.
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National Vision Gains 166.5% in a Year: What's Driving the Rally?
Key Takeaways
National Vision (EYE - Free Report) has witnessed strong momentum over the past year. Shares of the company have risen 166.5%, outperforming the industry’s 13.3% decline during the same time frame. The S&P 500 composite has increased 18.2%.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
National Vision is a major optical retailer in the United States. As of June 28, 2025, the company operated through a diverse portfolio of 1,240 retail stores across four brands, along with associated omnichannel consumer websites. National Vision operates through one reportable segment, Owned & Host, which includes two owned brands — America’s Best Contacts and Eyeglasses (America’s Best) and Eyeglass World.
Factors Favoring EYE’s Share Price Growth
National Vision’s share price is trending upward, prompted by its ongoing strategic transformation. According to management, the transformation initiatives are gaining traction and the strategic focus on key customer segments is driving improvement in its comparable sales.
The company recently rolled out its refreshed branding and is preparing to unveil a major identity overhaul for America’s Best. At Eyeglass World, National Vision recently made the strategic decision to modify the doctor model in Florida to enhance patient experience and provide greater access to care. Additionally, it has advanced its transformation efforts by bringing in new leadership to execute a multi-year strategic plan, most recently onboarding a new CFO. A solid second-quarter performance is also expected to contribute further.
Investors are currently focused on the growth of the company’s Owned & Host segment, which continues to benefit from positive comparable store sales and new store openings. Strengthening its market position, America’s Best became the exclusive U.S. retail partner for the Florence by Mills eyewear collection and launched an exclusive nationwide partnership with Pair Eyewear.
To further drive growth, the company is expanding exam capacity through remote capabilities, with about two-thirds of its stores now equipped with remote technology. In the second quarter, remote exam technology reached a major milestone, with over 1 million exams conducted.
Meanwhile, National Vision’s raised fiscal 2025 outlook looks encouraging. Fiscal 2025 revenues are now expected to be in the range of $1.93-$1.97 billion (up from $1.92-$1.95 billion). Adjusted EPS is now estimated to be in the band of 62-70 cents (up from 59-67 cents).
Image Source: Zacks Investment Research
Operationally, in the second quarter, gross margin expanded 2166 basis points (bps) despite a 3.5% rise in the cost of revenues. Also, the operating margin expanded 206 bps. These factors have positively impacted the stock, contributing to its rise.
Factors That May Offset EYE’s Gains
EYE’s business remains vulnerable to growing geopolitical complexities, supply-chain disruptions, shortages of healthcare staff and volatility in capital markets. Additionally, the ongoing changes in U.S. trade policy and retaliatory tariffs look discouraging. All these factors continue to weigh on its profitability. In the second quarter of 2025, SG&A expenditures rose 6.8% year over year.
From a solvency viewpoint, National Vision has a significant amount of indebtedness. It exited the second quarter of 2025 with cash and cash equivalents of $48 million, and short-term debt of $17 million. However, long-term debt was $256 million, much higher than cash levels. This leverage could have several consequences, including greater exposure to adverse economic, industry, or competitive developments.
A Look at EYE’s Estimates
The Zacks Consensus Estimate for 2025 EPS has remained unchanged at 68 cents in the past 30 days.
The company has an estimated long-term EPS growth rate of 22.7% compared with the industry’s 12.9%.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Phibro Animal Health (PAHC - Free Report) and Envista (NVST - Free Report) . While Masimo sports a Zacks Rank #1 (Buy), Phibro and Envista carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s shares have jumped 18.9% in the past year. Estimates for the company’s 2025 EPS have increased 5.2% to $5.24 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.8%.
Estimates for Phibro Animal Health’s fiscal 2026 EPS have climbed 5 cents to $2.35 in the past 30 days. Shares of the company have surged 76.5% in the past year compared with the industry’s 3.4% growth. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.9%.
Estimates for Envista’s 2025 earnings per share have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9%. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.