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Viavi Solutions and Dave & Buster have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 19, 2026 – Zacks Equity Research shares Viavi Solutions (VIAV - Free Report) as the Bull of the Day and Dave & Buster's (PLAY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) and Micron Technology (MU - Free Report) .
Viavi Solutions is a global leader in test and measurement and optical technologies. Their test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications.
In addition, they develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Here's what I wrote when I made my first buy of VIAV shares in the TAZR Trader portfolio on April 7 at $38...
This $8 billion global leader in test, measurement, and optical assurance is in a strong uptrend (since their Dec quarter earnings reported in late Jan) because their technology secures and validates the infrastructure of the datacenter ecosystem and more.
It was a Zacks #1 Rank in Feb-Mar as estimates jumped, but has fallen out of the top tiers as that 60-day window has passed. I didn't look at the company then because there was so much more on my radar.
Because moving to higher speeds and CPO (co-packaged optics) introduces severe signal integrity issues like jitter and noise, testing isn't just a one-time hurdle. It is a massive, overlapping super-cycle that must scale directly with optical complexity to prevent big bottlenecks in data transfer.
This is why peer Aehr Test Systems (AEHR) launched 40% in two days recently. I did look at AEHR last month, but it has both negative sales and earnings growth, so I passed.
VIAV sales estimates are projected to grow 35% this fiscal year (ends June) to $1.46 billion. And EPS of $0.80 are growing 70%.
(end of TAZR Buy Alert notes 4/7)
Last week, I chose VIAV for the Zacks Top Stock Picks Video which has a lot of good info in it, including snapshots of Wall Street analyst price targets before-and-after earnings. Spoiler: they were way behind on this growth story and so investors who saw the Zacks #1 Rank in Q1 were early and have been well-rewarded.
Speaking of earnings, here are some Zacks Research System notes on their recent report card April 29 which popped the stock up to new highs around $60...
Viavi delivered strong Q3 fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimates.
The company posted a solid 42.8% year-over-year increase in revenues, supported by strong demand from data centers, continued 5G and fiber network upgrades, steady aerospace and defense demand, and contributions from the Spirent product line buyout.
Net income on a GAAP basis was $6.4 million or 3 cents per share compared with $19.5 million or 9 cents per share in the prior-year quarter. Despite top-line growth, higher operating expenses and taxes impacted the bottom line.
Non-GAAP net income in the reported quarter was $67.6 million or 27 cents per share compared with $33.9 million or 15 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 3 cents.
Revenue Landscape
Net sales increased to $406.8 million from $284.8 million in the year-ago quarter, primarily driven by strong performance in its Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments. The top line beat the consensus estimate of $393.5 million.
In the third quarter of fiscal 2026, the NSE segment generated $321.5 million in revenues, up 54.4% year over year. The segment accounted for 79% of total revenues. Acquisition of Spirent product lines and strong demand across lab, production and field products, mainly from the data center ecosystem and aerospace & defense sectors, drove solid sales growth in this segment.
The OSP segment revenues were $85.3 million, up 11.4% year over year, driven by strong demand for 3D Sensing and anti-counterfeiting.
Net sales from the Americas totaled $182.8 million, up from $108.1 million in the year-ago quarter. Revenues from Asia-Pacific were $128.2 million, up 27.3% year over year. Revenues from Europe, Middle East, and Africa increased to $95.8 million from the prior-year quarter's tally of $76 million.
Institutional Buyers Pour In
As the final tallies filtered into the SEC 13F Q1 filings on Monday, we saw an impressive demand for VIAV shares.
Active Positions Holders Shares Increased Positions 280 82,807,103 Decreased Positions 198 46,691,368 Held Positions 54 132,246,097
Bottom line: I am a buyer of VIAV now near $50 and on a potential gap fill to $45-46.
Dave & Buster's has been consistently in the cellar of the Zacks Rank for years now.
I recall writing about it in 2024 when the stock was in the $60s and $50s. And I gave an update on April 17 when shares had just rallied back to $15 after another weak quarterly earnings report.
Many Quarters Later, the Decline Persists
On March 31, PLAY delivered their Q4 FY'26 report with these highlights...
>>PLAY reported a Q4 loss of 35 cents per share, missing estimates and down from 66 cents EPS a year ago. >>Revenues fell 0.9% to $529.6M as entertainment sales dropped 6.6% on weaker gaming demand. >>Comparable sales declined 3.3%, while higher costs and weather disruptions pressured margins.
Subsequent to these data points and management commentary, analysts slashed their full year FY'27 estimates (began February), driving the Zacks EPS Consensus from a PROFIT of 47-cents to a LOSS of 80-cents -- representing an annual decline of 167%.
Next year's forecasts were also flipped from profit to loss in early April.
But in the past month, it gets worse. This year dropped another 6-cents to -$0.86 -- for an annual loss of 187% -- and next year is dumped 13% to -$0.96.
My thesis is this: the earnings decline continues as new QSR, health-focused, and entertainment options multiply in a vibrant economy.
Bottom line: PLAY might be a fun place to take the family or watch a ball game with friends, but there's no joy for your money here. The Zacks Rank will let you know when it's time to play the stock again.
Additional content:
Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner
NVIDIA Corp.'s shares have climbed over 60% in the past year as demand for its cutting-edge graphics processing units (GPUs) soared well beyond supply, thanks to mega-cap tech companies significantly increasing spending in artificial intelligence (AI) data centers.
The incessant demand for NVIDIA's data center chips drove robust revenue and earnings growth, supporting a positive outlook. NVIDIA's dominance across both software and hardware ecosystems has given the company a competitive edge and reinforced confidence in the business model under CEO Jensen Huang.
However, Micron Technology has recently emerged as a strong contender in the AI space, rivaling NVIDIA as its shares soared more than 600% over the past year. Let us thus take a closer look at how Micron fared, and why it still has the potential to climb further and stand out as a top performer this year.
Micron's AI Memory Boom Far from Over
Micron's shares hit an all-time high last week as demand for its AI-focused memory solutions remained strong. Micron's high-bandwidth memory (HBM) chips saw an increase in demand as hyperscalers scaled up their investments in AI infrastructures. The HBM chips are in high demand due to their ability to process intense workloads more efficiently while consuming less power.
The HBM chips are currently in short supply, and this demand-supply imbalance could support Micron's pricing power and drive long-term growth. Micron confirmed that it can only fulfill half of the near-term HBM market demand, allowing it to maintain prices at elevated levels for some time, boost revenues and provide support to future stock gains.
According to Micron, HBM's total addressable market is expected to witness a CAGR of 40% from around $35 billion in 2025 to almost $100 billion by 2028. At the same time, a tight supply situation is expected to support elevated pricing for Micron's NAND flash chips through mid-next year, which supports margin expansion.
Micron thus expects fiscal third-quarter 2026 gross margin to be solid at 81%, indicating strong financial momentum, according to investors.micron.com. Thanks to the high demand for HBM chips, in particular, Micron expects revenues to increase to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026.
Micron's Best Days May Still Be Ahead
Beyond reaching record highs, Micron's shares have further room to run, banking on strong demand for its AI memory products amid ongoing supply constraints, with the company expecting an improved quarterly performance.
From a technical standpoint, Micron's shares continue to trade well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, reinforcing a bullish trend.
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/performancefor information about the performance numbers displayed in this press release.
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Viavi Solutions and Dave & Buster have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 19, 2026 – Zacks Equity Research shares Viavi Solutions (VIAV - Free Report) as the Bull of the Day and Dave & Buster's (PLAY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. (NVDA - Free Report) and Micron Technology (MU - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
Viavi Solutions is a global leader in test and measurement and optical technologies. Their test, monitoring, assurance, and resilient position, navigation and timing solutions enable and secure critical infrastructure ranging from data center ecosystems and communication networks to military, aerospace, railway and first responder communications.
In addition, they develop and advance technologies used in high-volume optical applications across anti-counterfeiting, consumer electronics, aerospace, industrial and automotive end markets.
Here's what I wrote when I made my first buy of VIAV shares in the TAZR Trader portfolio on April 7 at $38...
This $8 billion global leader in test, measurement, and optical assurance is in a strong uptrend (since their Dec quarter earnings reported in late Jan) because their technology secures and validates the infrastructure of the datacenter ecosystem and more.
It was a Zacks #1 Rank in Feb-Mar as estimates jumped, but has fallen out of the top tiers as that 60-day window has passed. I didn't look at the company then because there was so much more on my radar.
Because moving to higher speeds and CPO (co-packaged optics) introduces severe signal integrity issues like jitter and noise, testing isn't just a one-time hurdle. It is a massive, overlapping super-cycle that must scale directly with optical complexity to prevent big bottlenecks in data transfer.
This is why peer Aehr Test Systems (AEHR) launched 40% in two days recently. I did look at AEHR last month, but it has both negative sales and earnings growth, so I passed.
VIAV sales estimates are projected to grow 35% this fiscal year (ends June) to $1.46 billion. And EPS of $0.80 are growing 70%.
(end of TAZR Buy Alert notes 4/7)
Last week, I chose VIAV for the Zacks Top Stock Picks Video which has a lot of good info in it, including snapshots of Wall Street analyst price targets before-and-after earnings. Spoiler: they were way behind on this growth story and so investors who saw the Zacks #1 Rank in Q1 were early and have been well-rewarded.
Speaking of earnings, here are some Zacks Research System notes on their recent report card April 29 which popped the stock up to new highs around $60...
Viavi delivered strong Q3 fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimates.
The company posted a solid 42.8% year-over-year increase in revenues, supported by strong demand from data centers, continued 5G and fiber network upgrades, steady aerospace and defense demand, and contributions from the Spirent product line buyout.
Net income on a GAAP basis was $6.4 million or 3 cents per share compared with $19.5 million or 9 cents per share in the prior-year quarter. Despite top-line growth, higher operating expenses and taxes impacted the bottom line.
Non-GAAP net income in the reported quarter was $67.6 million or 27 cents per share compared with $33.9 million or 15 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 3 cents.
Revenue Landscape
Net sales increased to $406.8 million from $284.8 million in the year-ago quarter, primarily driven by strong performance in its Network and Service Enablement (NSE) and Optical Security and Performance Products (OSP) segments. The top line beat the consensus estimate of $393.5 million.
In the third quarter of fiscal 2026, the NSE segment generated $321.5 million in revenues, up 54.4% year over year. The segment accounted for 79% of total revenues. Acquisition of Spirent product lines and strong demand across lab, production and field products, mainly from the data center ecosystem and aerospace & defense sectors, drove solid sales growth in this segment.
The OSP segment revenues were $85.3 million, up 11.4% year over year, driven by strong demand for 3D Sensing and anti-counterfeiting.
Net sales from the Americas totaled $182.8 million, up from $108.1 million in the year-ago quarter. Revenues from Asia-Pacific were $128.2 million, up 27.3% year over year. Revenues from Europe, Middle East, and Africa increased to $95.8 million from the prior-year quarter's tally of $76 million.
Institutional Buyers Pour In
As the final tallies filtered into the SEC 13F Q1 filings on Monday, we saw an impressive demand for VIAV shares.
Active Positions Holders Shares
Increased Positions 280 82,807,103
Decreased Positions 198 46,691,368
Held Positions 54 132,246,097
Bottom line: I am a buyer of VIAV now near $50 and on a potential gap fill to $45-46.
Bear of the Day:
Dave & Buster's has been consistently in the cellar of the Zacks Rank for years now.
I recall writing about it in 2024 when the stock was in the $60s and $50s. And I gave an update on April 17 when shares had just rallied back to $15 after another weak quarterly earnings report.
Many Quarters Later, the Decline Persists
On March 31, PLAY delivered their Q4 FY'26 report with these highlights...
>>PLAY reported a Q4 loss of 35 cents per share, missing estimates and down from 66 cents EPS a year ago.
>>Revenues fell 0.9% to $529.6M as entertainment sales dropped 6.6% on weaker gaming demand.
>>Comparable sales declined 3.3%, while higher costs and weather disruptions pressured margins.
You can read more in this report: Dave & Buster's Q4 Earnings & Revenues Miss Estimates, Down Y/Y
Subsequent to these data points and management commentary, analysts slashed their full year FY'27 estimates (began February), driving the Zacks EPS Consensus from a PROFIT of 47-cents to a LOSS of 80-cents -- representing an annual decline of 167%.
Next year's forecasts were also flipped from profit to loss in early April.
But in the past month, it gets worse. This year dropped another 6-cents to -$0.86 -- for an annual loss of 187% -- and next year is dumped 13% to -$0.96.
My thesis is this: the earnings decline continues as new QSR, health-focused, and entertainment options multiply in a vibrant economy.
Bottom line: PLAY might be a fun place to take the family or watch a ball game with friends, but there's no joy for your money here. The Zacks Rank will let you know when it's time to play the stock again.
Additional content:
Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner
NVIDIA Corp.'s shares have climbed over 60% in the past year as demand for its cutting-edge graphics processing units (GPUs) soared well beyond supply, thanks to mega-cap tech companies significantly increasing spending in artificial intelligence (AI) data centers.
The incessant demand for NVIDIA's data center chips drove robust revenue and earnings growth, supporting a positive outlook. NVIDIA's dominance across both software and hardware ecosystems has given the company a competitive edge and reinforced confidence in the business model under CEO Jensen Huang.
However, Micron Technology has recently emerged as a strong contender in the AI space, rivaling NVIDIA as its shares soared more than 600% over the past year. Let us thus take a closer look at how Micron fared, and why it still has the potential to climb further and stand out as a top performer this year.
Micron's AI Memory Boom Far from Over
Micron's shares hit an all-time high last week as demand for its AI-focused memory solutions remained strong. Micron's high-bandwidth memory (HBM) chips saw an increase in demand as hyperscalers scaled up their investments in AI infrastructures. The HBM chips are in high demand due to their ability to process intense workloads more efficiently while consuming less power.
The HBM chips are currently in short supply, and this demand-supply imbalance could support Micron's pricing power and drive long-term growth. Micron confirmed that it can only fulfill half of the near-term HBM market demand, allowing it to maintain prices at elevated levels for some time, boost revenues and provide support to future stock gains.
According to Micron, HBM's total addressable market is expected to witness a CAGR of 40% from around $35 billion in 2025 to almost $100 billion by 2028. At the same time, a tight supply situation is expected to support elevated pricing for Micron's NAND flash chips through mid-next year, which supports margin expansion.
Micron thus expects fiscal third-quarter 2026 gross margin to be solid at 81%, indicating strong financial momentum, according to investors.micron.com. Thanks to the high demand for HBM chips, in particular, Micron expects revenues to increase to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026.
Micron's Best Days May Still Be Ahead
Beyond reaching record highs, Micron's shares have further room to run, banking on strong demand for its AI memory products amid ongoing supply constraints, with the company expecting an improved quarterly performance.
From a technical standpoint, Micron's shares continue to trade well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, reinforcing a bullish trend.
Micron currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
Media Contact
Zacks Investment Research
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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/performancefor information about the performance numbers displayed in this press release.