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Bandwidth and Blue Bird have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 18, 2026 – Zacks Equity Research shares Bandwidth (BAND - Free Report) as the Bull of the Day and Blue Bird (BLBD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology (MU - Free Report) and Seagate Technology Holdings plc (STX - Free Report) .
It doesn’t take Elon Musk to figure out where the money has been heading. Even my most basic friends have been asking me for weeks, “Where’s the next AI play?” Artificial intelligence isn't just about chips and data centers anymore. The next phase of AI is all about communication, and that's where today’s Bull of the Day slots in perfection. Great Zack Rank, years long tailwinds, and a promise of more profits to come.
I’m talking about Zacks Rank #1 (Strong Buy) Bandwidth. Bandwidth is quietly becoming one of the most interesting growth stories in tech. Bandwidth operates a cloud communications platform that powers voice calls, messaging, and emergency services infrastructure for enterprises. Think of it as the plumbing behind modern communications applications. As businesses increasingly deploy AI-powered customer service agents, voice bots, and conversational AI platforms, Bandwidth sits directly in the middle of that traffic. The company recently highlighted accelerating adoption of AI-driven communications and landed a major partnership with Salesforce's Agentforce Contact Center, validating its role as mission-critical infrastructure for enterprise AI.
The numbers are finally starting to reflect that opportunity. First-quarter revenue surged nearly 20% year over year to a record $209 million while adjusted EBITDA climbed 17%. More importantly, management raised full-year guidance to $880-$900 million in revenue and $119-$125 million in adjusted EBITDA, both ahead of prior expectations. The company also generated positive GAAP net income and continues to strengthen its balance sheet through debt reduction and share repurchases.
The reason for the favorable Zacks Rank is the recent earnings estimates going to the upside. Over the course of the last thirty days, three analysts have upped the ante for both current year and next year estimates. It’s pushed our Zacks Consensus Estimate from $1.70 to $1.79 for the current year while next year is up from $1.86 to $1.99,
What makes BAND compelling is that investors are beginning to realize this isn't just nother CPaaS provider. It's becoming foundational infrastructure for the AI communications ecosystem. Every time an AI agent makes a phone call, sends a text, verifies a user, or routes a customer interaction, someone has to provide the underlying network capabilities. Bandwidth is increasingly proving it's one of the companies best positioned to monetize that explosion in AI-driven communications. If enterprise AI adoption keeps accelerating, BAND may still have plenty of room left to run despite its big move higher this year.
I get it. The new world order is supposed to have electric cars and busses eliminating our dependence on oil, solar and clean nuclear is supposed to dominate, and we are all going to have some sort of energy epiphany. The reality of the situation is that, we are not criminals for following the current protocol and the transition will inevitably take much longer than originally expected.
That brings us to today’s Bear of the Day, Zacks Rank #5 (Strong Sell) Blue Bird. Blue Bird has been one of the market's more surprising winners over the past few years. The school bus manufacturer has capitalized on pricing power, replacement demand, and enthusiasm surrounding electric school buses. The company continues to post solid profits and recently raised its fiscal 2026 guidance after another strong quarter.
The problem is that a lot of that good news may already be priced in. Unit sales actually declined during the latest quarter, with revenue growth increasingly driven by pricing rather than underlying volume expansion. The company's electric bus business remains dependent on government incentives and school district funding cycles, which can be unpredictable. Meanwhile, investors are assigning a premium multiple to a company operating in what is ultimately a cyclical and relatively mature end market.
There are also execution risks ahead. Blue Bird recently acquired full ownership of its Micro Bird joint venture, a deal that broadens its product portfolio but also introduces integration risk and additional operational complexity. At the same time, management has acknowledged navigating tariffs and supply chain pressures, both of which could weigh on margins if costs prove more persistent than expected.
Additional content:
Micron & Another AI Memory Stock to Buy Now for Big Upside
For quite some time, Micron Technology and Seagate Technology Holdings plc have been benefiting from the artificial intelligence (AI) boom, as rising data needs fuel demand for memory and storage solutions.
Both stocks have delivered exceptional returns of more than 600% over the past year. Let us thus see in detail why they still have further upside potential, and what makes them a compelling buy –
Micron Rides AI Wave With HBM Growth
Micron is currently enjoying strong pricing power as its state-of-the-art high-bandwidth memory (“HBM”) chips are in high demand amid tight supply conditions. Demand for HBM chips has skyrocketed as hyperscalers continue to increase investments in AI infrastructure. These HBM chips can handle complex workloads efficiently while reducing power usage.
Micron now expects revenues to improve to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026 due to the high demand for HBM chips, according to investors.micron.com. The company’s expectations of a solid gross margin of about 81% for the fiscal third quarter of 2026 also reflect strong financial momentum and long-term growth outlook.
Supply constraints for Micron’s highly sought-after NAND flash chips are expected to continue through mid-next year, which could further strengthen margins. As a result, the company’s expected earnings growth rate for the current year is 626.5%. The Zacks Consensus Estimate of $60.23 for MU’s earnings per share (EPS) is up 392.9% year over year (read more: Micron vs. NVIDIA: One AI Stock Is a Clear Buy Right Now).
Seagate’s Nearline Business Fuels Growth
Seagate reported revenues of $3.11 billion in the fiscal third quarter of 2026, up 44% year over year, according to investors.seagate.com. Such revenue growth is exceptional for a hardware company, indicating strong demand for Seagate’s high-capacity storage products. Seagate’s nearline storage business, known for providing high-capacity data center drives, is the company’s key growth engine.
But revenue growth is not a one-time event. It is expected to continue in the next quarter as well. For the fiscal fourth quarter of 2026, Seagate expects revenues of $3.45 billion, plus or minus $100 million.
Similarly, the company expects non-GAAP diluted EPS of $5, plus or minus $0.2, in the fiscal fourth quarter of 2026, up from $4.1 in the fiscal third quarter of 2026. The company’s solid non-GAAP gross margin of 47% in the fiscal third quarter of 2026 indicates that profitability is improving, the company is operationally efficient, and has pricing power.
Seagate’s free cash flow of $953 million in the fiscal third quarter of 2026 also indicates that the company now has sufficient funds to support future investments. As a result, the company’s expected earnings growth rate for the current year is 84.3%. The Zacks Consensus Estimate of $14.93 for STX’s EPS is up 51% year over year.
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.
View the Zacks #1 Rank List
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Bandwidth and Blue Bird have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 18, 2026 – Zacks Equity Research shares Bandwidth (BAND - Free Report) as the Bull of the Day and Blue Bird (BLBD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology (MU - Free Report) and Seagate Technology Holdings plc (STX - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
It doesn’t take Elon Musk to figure out where the money has been heading. Even my most basic friends have been asking me for weeks, “Where’s the next AI play?” Artificial intelligence isn't just about chips and data centers anymore. The next phase of AI is all about communication, and that's where today’s Bull of the Day slots in perfection. Great Zack Rank, years long tailwinds, and a promise of more profits to come.
I’m talking about Zacks Rank #1 (Strong Buy) Bandwidth. Bandwidth is quietly becoming one of the most interesting growth stories in tech. Bandwidth operates a cloud communications platform that powers voice calls, messaging, and emergency services infrastructure for enterprises. Think of it as the plumbing behind modern communications applications. As businesses increasingly deploy AI-powered customer service agents, voice bots, and conversational AI platforms, Bandwidth sits directly in the middle of that traffic. The company recently highlighted accelerating adoption of AI-driven communications and landed a major partnership with Salesforce's Agentforce Contact Center, validating its role as mission-critical infrastructure for enterprise AI.
The numbers are finally starting to reflect that opportunity. First-quarter revenue surged nearly 20% year over year to a record $209 million while adjusted EBITDA climbed 17%. More importantly, management raised full-year guidance to $880-$900 million in revenue and $119-$125 million in adjusted EBITDA, both ahead of prior expectations. The company also generated positive GAAP net income and continues to strengthen its balance sheet through debt reduction and share repurchases.
The reason for the favorable Zacks Rank is the recent earnings estimates going to the upside. Over the course of the last thirty days, three analysts have upped the ante for both current year and next year estimates. It’s pushed our Zacks Consensus Estimate from $1.70 to $1.79 for the current year while next year is up from $1.86 to $1.99,
What makes BAND compelling is that investors are beginning to realize this isn't just nother CPaaS provider. It's becoming foundational infrastructure for the AI communications ecosystem. Every time an AI agent makes a phone call, sends a text, verifies a user, or routes a customer interaction, someone has to provide the underlying network capabilities. Bandwidth is increasingly proving it's one of the companies best positioned to monetize that explosion in AI-driven communications. If enterprise AI adoption keeps accelerating, BAND may still have plenty of room left to run despite its big move higher this year.
Bear of the Day:
I get it. The new world order is supposed to have electric cars and busses eliminating our dependence on oil, solar and clean nuclear is supposed to dominate, and we are all going to have some sort of energy epiphany. The reality of the situation is that, we are not criminals for following the current protocol and the transition will inevitably take much longer than originally expected.
That brings us to today’s Bear of the Day, Zacks Rank #5 (Strong Sell) Blue Bird. Blue Bird has been one of the market's more surprising winners over the past few years. The school bus manufacturer has capitalized on pricing power, replacement demand, and enthusiasm surrounding electric school buses. The company continues to post solid profits and recently raised its fiscal 2026 guidance after another strong quarter.
The problem is that a lot of that good news may already be priced in. Unit sales actually declined during the latest quarter, with revenue growth increasingly driven by pricing rather than underlying volume expansion. The company's electric bus business remains dependent on government incentives and school district funding cycles, which can be unpredictable. Meanwhile, investors are assigning a premium multiple to a company operating in what is ultimately a cyclical and relatively mature end market.
There are also execution risks ahead. Blue Bird recently acquired full ownership of its Micro Bird joint venture, a deal that broadens its product portfolio but also introduces integration risk and additional operational complexity. At the same time, management has acknowledged navigating tariffs and supply chain pressures, both of which could weigh on margins if costs prove more persistent than expected.
Additional content:
Micron & Another AI Memory Stock to Buy Now for Big Upside
For quite some time, Micron Technology and Seagate Technology Holdings plc have been benefiting from the artificial intelligence (AI) boom, as rising data needs fuel demand for memory and storage solutions.
Both stocks have delivered exceptional returns of more than 600% over the past year. Let us thus see in detail why they still have further upside potential, and what makes them a compelling buy –
Micron Rides AI Wave With HBM Growth
Micron is currently enjoying strong pricing power as its state-of-the-art high-bandwidth memory (“HBM”) chips are in high demand amid tight supply conditions. Demand for HBM chips has skyrocketed as hyperscalers continue to increase investments in AI infrastructure. These HBM chips can handle complex workloads efficiently while reducing power usage.
Micron now expects revenues to improve to $33.5 billion in the fiscal third quarter of 2026 from $23.86 billion in the fiscal second quarter of 2026 due to the high demand for HBM chips, according to investors.micron.com. The company’s expectations of a solid gross margin of about 81% for the fiscal third quarter of 2026 also reflect strong financial momentum and long-term growth outlook.
Supply constraints for Micron’s highly sought-after NAND flash chips are expected to continue through mid-next year, which could further strengthen margins. As a result, the company’s expected earnings growth rate for the current year is 626.5%. The Zacks Consensus Estimate of $60.23 for MU’s earnings per share (EPS) is up 392.9% year over year (read more: Micron vs. NVIDIA: One AI Stock Is a Clear Buy Right Now).
Seagate’s Nearline Business Fuels Growth
Seagate reported revenues of $3.11 billion in the fiscal third quarter of 2026, up 44% year over year, according to investors.seagate.com. Such revenue growth is exceptional for a hardware company, indicating strong demand for Seagate’s high-capacity storage products. Seagate’s nearline storage business, known for providing high-capacity data center drives, is the company’s key growth engine.
But revenue growth is not a one-time event. It is expected to continue in the next quarter as well. For the fiscal fourth quarter of 2026, Seagate expects revenues of $3.45 billion, plus or minus $100 million.
Similarly, the company expects non-GAAP diluted EPS of $5, plus or minus $0.2, in the fiscal fourth quarter of 2026, up from $4.1 in the fiscal third quarter of 2026. The company’s solid non-GAAP gross margin of 47% in the fiscal third quarter of 2026 indicates that profitability is improving, the company is operationally efficient, and has pricing power.
Seagate’s free cash flow of $953 million in the fiscal third quarter of 2026 also indicates that the company now has sufficient funds to support future investments. As a result, the company’s expected earnings growth rate for the current year is 84.3%. The Zacks Consensus Estimate of $14.93 for STX’s EPS is up 51% year over year.
Both Micron and Seagate currently have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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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/performance for information about the performance numbers displayed in this press release.