For Immediate Release

Chicago, IL – May 21, 2026 – Zacks Equity Research shares Credo Technology Group Holding Ltd. (CRDO Quick QuoteCRDO - Free Report) as the Bull of the Day and Birkenstock Holding plc (BIRK Quick QuoteBIRK - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Diamondback Energy, Inc. (FANG Quick QuoteFANG - Free Report) , Exxon Mobil Corp. (XOM Quick QuoteXOM - Free Report) and Chevron Corp. (CVX Quick QuoteCVX - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

Credo Technology Group Holding Ltd. is riding high on the AI data center build-out. This Zacks Rank #1 (Strong Buy) is expected to grow revenue by 204.1% in fiscal 2026.

Credo's mission is to transform connectivity at scale. It makes high-speed copper and optical interconnect products to meet the ever-expanding data infrastructure demands of AI.

It's product portfolio includes ZeroFlap (ZF) Active Electrical Cables (AECs) and ZF optical transceivers, OmniConnect memory solutions, and a suite of retimers and DSPs for optical and copper Ethernet and PCIe. All leverage the PILOT diagnostic and analytics software platform.

Credo's Fiscal 2027 Earnings Estimate Move Higher

Credo Technology has an excellent earnings surprise track record. It has not missed on earnings since 2022.

It is expected to report fiscal fourth quarter 2026 results on June 1, 2026. The Zacks Consensus is calling for $3.30 for fiscal 2026, up from $3.16 in the last 90 days.

This is earnings growth of 371.4% as the company made just $0.70 in fiscal 2025.

However, analysts are getting even more bullish about fiscal 2027.

One estimate has been raised in the last week for fiscal 2027, pushing the Zacks Consensus up to $4.92 from $4.69. That's further earnings growth of 49.1%.

Revenue is also soaring. In March, Credo reported record third quarter fiscal 2026 revenue of $407 million, up 51.9% from the prior quarter and 201% year-over-year. Revenue for the full fiscal year is expected to jump 204.1% to $1.33 billion.

Analysts are bullish about revenue in Fiscal 2027 as well, as the company continues to add new AI business. The Zacks Consensus on revenue is expected to jump 50.4% to $2 billion.

Here is what the price and earnings consensus looks like over the last 5 years.

Credo and Rebellion to Team Up

On May 20, 2026, Credo announced that it was teaming up with South Korean firm Rebellion, a global leader in AI inference infrastructure, to bring turnkey, scalable AI factories to enterprises around the world.

The collaboration will integrate Credo's ZeroFlap active electrical cables (AECs) into the production-ready, high-performance Rebellions RebelPOD.

It will help enterprises accelerate time to first token and unlock AI cluster productivity.

Shares of Credo Break Out in 2026

It's been a volatile ride in Credo in 2026 but the shares have rebounded from a sell-off over the last 3 months and are easily outperforming the Invesco QQQ Trust ETF.

Credo has an attractive forward price-to-earnings (P/E) ratio of 34.4. While this is not a value level at 15 or less, for a company expected to grow earnings in the triple digits this year, it is not stretched.

The company also ended the third quarter with cash and short-term investments of $1.3 billion.

For investors looking for a company making infrastructure products for the AI Revolution that might be a bit off the radar, but which also has strong growth, then Credo Technology should be on your short list.

Bear of the Day:

Birkenstock Holding plc is facing stiff challenges, including tariffs, inflation and impacts from the Middle East War. This Zacks Rank #5 (Strong Sell) has recently hit all-time lows.

BIRKENSTOCK is a global brand which is committed to a clear purpose of encouraging proper foot health.

Backed by a family tradition of shoemaking that can be traced back to 1774, BIRKENSTOCK products range from entry-level to luxury price points. It is the investor of the footbed and has shaped the principle of walking as intended by nature.

BIRKENSTOCK assembles over 95% of all products in Germany and producing the remainder elsewhere in the EU. The company prioritizes the European origin of its raw materials.

BIRKENSTOCK Missed on the Fiscal Second Quarter 2026 Earnings

On May 13, 2026, BIRKENSTOCK reported fiscal second quarter 2026 earnings and missed on the Zacks Consensus Estimate by $0.11. Earnings were $0.59 versus the consensus of $0.70.

Revenue was up 14% in constant currency to EUR 618 million. It saw double-digit revenue growth in constant currency across all segments with the Americas up 14%, EMEA up 11% and APAC up 30%.

B2B revenue growth was up 15% in constant currency and DTC revenue growth jumped 12% in constant currency.

However, gross profit margin was down 380 basis points to 53.9% from 57.7% in the year ago period primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points), partly offset by sales price adjustments (net of inflation) and improved capacity absorption.

The company is facing several headwinds including inflationary pressures, tariffs, and the Iran War which impacted Middle East deliveries as well as consumer confidence in Europe.

"Our business proved very resilient in the fiscal second quarter," said Oliver Reichert, CEO of BIRKENSTOCK.

"Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%. This performance was well within our near-term and long-term target of 13-15%," he added.

Analysts Are Bearish on Birkenstock for Fiscal 2026 and 2027

Despite the earnings miss, BIRKENSTOCK still confirmed its full year guidance of 13-15% revenue growth and adjusted gross profit margin of 57% to 57.5%.

But the analysts were bearish and cut earnings estimates for this year and next.

Nine estimates were cut for fiscal 2026, and one raised, in the last week. That brought down the Zacks Consensus Estimate to $2.27 from $2.36. It's still earnings growth of 11.3% as BIRKENSTOCK made just $2.04 last year.

Nine estimates were also cut for fiscal 2027, and one raised, in the prior 7 days. The Zacks Consensus fell to $2.72 from $2.78. That's further earnings growth of 19.4%.

This is what it looks like on the price and consensus chart.

Shares of BIRKENSTOCK Plunge to New Lows

BIRKENSTOCK went public in 2023 on the strength of its strong brand. But investors have soured on BIRKENSTOCK over the last year as the shares have sunk to a new all-time low.

Here is the one-year chart compared to the S&P 500 ETF.

The stock has gotten cheaper. It now trades with a forward price-to-earnings (P/E) of 14.3. A P/E ratio under 15 usually indicates a company has value.

BIRKENSTOCK ended the quarter with cash and cash equivalents of EUR 201 million.

While BIRKENSTOCK is still expected to grow earnings this year and next, it is facing several headwinds. Investors might want to stay on the sidelines until some of the uncertainties clear.

Additional content:

Oil Remains Above $100: Are Permisan Stocks a Smart Bet Now?

Oil prices have been making newspaper headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Although the tensions have made the stock market highly uncertain, energy stocks have retained their appeal. Is it time to bet on stocks such as Diamondback Energy, Inc., Exxon Mobil Corp. and Chevron Corp.?

High Oil Price to Aid Permian Producers?

West Texas Intermediate ("WTI") crude is trading at more than the $100-per-barrel mark. The high prices are being driven by ongoing tensions in the Middle East. The U.S. Energy Information Administration ("EIA") in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting exploration and production activities.

In this regard, the upstream players that are operating in the Permian, the most prolific basin in the United States, are likely to continue to gain from the ongoing strength in oil prices. In the outlook, EIA estimated that total crude oil production in the Permian would be 6.63 million barrels per day this year, higher than 6.58 million barrels per day last year.

Thus, with high prices of the commodity, production will likely increase in the most prolific basin, aiding the bottom lines of explorers and producers operating in the basin.

3 Permian Players in the Spotlight

Diamondback Energy is a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. The upstream energy major mentioned that those wells are economical even if the price of oil fell to $50 per barrel. Thus, with premium drilling inventories and an investment-grade balance sheet, Diamondback Energy, sporting a Zacks Rank #1 (Strong Buy), is likely to capitalize on the ongoing strength of oil prices.

ExxonMobil has a strong footprint in the Permian and is among the advantageous assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries by up to as much as 20%. With the acquisition of Pioneer Natural Resources in 2024, XOM enhanced its footprint in the basin, further strengthening its production outlook while realizing significant cost synergies. Thus, XOM, with a Zacks Rank of 1, is also well poised to gain like FANG. You can see the complete list of today's Zacks #1 Rank stocks here.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in Permian, Zacks #1 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Chevron added that to increase its oil and gas volumes, it is now employing significantly fewer rigs. Thus, like XOM and FANG, CVX is also strongly placed now.

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