For Immediate Release

Chicago, IL – November 12, 2026 – Zacks Equity Research shares International Seaways (INSW Quick QuoteINSW - Free Report) as the Bull of the Day and Installed Building Products (IBP Quick QuoteIBP - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corporation (NVDA Quick QuoteNVDA - Free Report) .

Here is a synopsis of all three stocks.

Bull of the Day:

Sporting a Zacks Rank #1 (Strong Buy), International Seaways appears to have more upside potential even after its stock has soared more than 100% year-to-date.

One of the world's largest publicly traded tanker operators, International Seaways transports crude oil and refined petroleum products across global markets.

Notably, its Zacks Transportation-Shipping Industry currently ranks in the top 12% of more than 240 Zacks industries, reflecting a favorable business environment for shipping companies.

INSW’s Strong Fundamentals & Surging EPS Estimates

International Seaways is benefiting from surging tanker charter rates, supply disruptions, and shifting global oil trade routes, which have significantly strengthened its operating performance.

In the third quarter, shipping revenue surged 146% year over year to $483 million, while adjusted earnings skyrocketed 408% to $5.84 per share. Adjusted EBITDA more than tripled to $345 million, with Q3 free cash flow jumping 269% YoY to $234 million, as illustrated by the orange line in the quarterly chart below.

The momentum is reflected in sharply higher earnings expectations. Over the last 60 days, the Zacks Consensus EPS estimate for fiscal 2026 has jumped 69% from $16.09 to $27.24 per share, while the FY27 EPS estimate has skyrocketed 130% from $11.26 to $25.91 per share.

These substantial upward revisions suggest analysts expect the shipping boom to support robust profitability beyond the current year.

Astonishingly, FY26 and FY27 EPS are projected to be more than 375% above last year's earnings of $5.42 per share.

INSW’s Attractive Valuation & Lofty Dividend

Despite its extraordinary rally, International Seaways may still be attracting value and income investors.

Trading near $100 a share, INSW still trades at just 6X forward earnings, a compelling valuation considering its exceptional EPS growth.

INSW still offers a slight discount to its decade-long median of 8X forward earnings and the Zacks Transportation-Shipping Industry's current average of 7X, which includes other noteworthy companies such as ZIM Integrated Shipping, Euroseas and Scorpio Tankers.

Adding to its appeal is the company's generous dividend policy. International Seaways recently declared another quarterly dividend of $5.05 per share, payable December 23, with an upcoming ex-dividend date of December 9.

Annualizing that payout would imply a dividend yield exceeding 20% at current levels, although investors should recognize that INSW's substantial variable distributions depend on shipping profitability and are not guaranteed in the future.

Still, International Seaways has paid approximately $624 million in dividends over the last 12 months, with its recently declared $5.05 quarterly payout set to bring total distributions to more than $830 million across the latest four dividend declarations.

Bottom Line

With its rapidly improving earnings outlook, discounted valuation, and substantial shareholder distributions, International Seaways remains an intriguing opportunity for those seeking exposure to the shipping boom.

While investors may eventually want to consider taking profits following INSW's spectacular rally, especially as unusually elevated tanker rates may normalize, the dramatic increase in earnings estimate revisions suggests the stock could still have more room to run.   

Bear of the Day:

With its stock landing a Zacks Rank #5 (Strong Sell), Installed Building Products is facing mounting headwinds from the sluggish U.S. housing market and declining earnings expectations.

One of the nation's largest residential insulation installers, IBP also provides garage doors, gutters, waterproofing, and other building products for residential and commercial construction projects.

Unfortunately, its Zacks Building Products-Miscellaneous Industry currently ranks in the bottom 13% of more than 240 Zacks industries, reflecting an unfavorable business outlook.

Keeping this in mind, IBP stock could face further downside after falling nearly 20% year to date and surrendering much of its gains from recent years.

Housing Slowdown Pressures IBP's Earnings

Elevated mortgage rates, persistent affordability challenges, and subdued single-family construction activity are weighing on Installed Building Products' operating performance.

Last week, IBP reported Q3 adjusted EPS of $2.76, which fell 13% year over year and missed the Zacks Consensus Estimate of $2.84 per share by nearly 3%. Although Q3 revenue rose 4% to $808.4 million, supported by acquisitions and commercial demand, residential same-branch sales declined 2.6%.

More concerning, gross margin contracted to 31.8% from 34% a year ago, reflecting a less favorable business mix and rising material and fuel costs. Adjusted EBITDA also fell 8% to $128.3 million, highlighting the pressure on profitability.

Management acknowledged that housing affordability and weak consumer confidence remain obstacles for single-family construction, although commercial sales growth has helped offset some of the weakness. That said, IBP has now missed earnings expectations in two of its last four quarterly reports.

Declining EPS Revisions & Valuation Concerns

Reflecting the deteriorating earnings outlook, the Zacks Consensus EPS estimate for FY26 has continued to decline in the last week and is now down 3% over the last 60 days, from $10.47 to $10.14 per share.

Furthermore, the FY27 EPS estimate has now fallen nearly 12% in the last two months, from $11.85 to $10.45 per share.

Still trading above $200 a share, IBP is at a 20X forward earnings multiple, which, while reasonable, is noticeably above its Zacks industry average of 16X, with a few noteworthy peers in the space being Owens Corning, Masco and CRH.

Although IBP’s valuation is not excessively stretched by historical market standards, declining earnings estimates make this premium increasingly difficult to justify, especially as housing market conditions remain challenging.

Bottom Line

With weakening residential demand, contracting margins, and downward earnings estimate revisions, Installed Building Products faces an increasingly difficult operating environment.

While the company's commercial expansion and acquisition strategy offer some support, its valuation premium and deteriorating outlook suggest investors may be better off avoiding IBP until housing conditions improve and earnings estimates begin to stabilize.  

Additional content:

NVIDIA Stock: Is This Jensen Huang Crisis a Hidden Buying Opportunity?

NVIDIA Corporation’s latest pullback amid the CEO Jensen Huang controversy has sparked fresh concerns among investors. But does the stock decline offer a buying opportunity, given the company’s strong financial performance and growth outlook? Let’s take a closer look –

NVIDIA Faces Fresh Investor Concerns Amid Huang Controversy

Co-founded by Jensen Huang in 1993, NVIDIA has grown into a tech behemoth, banking on the artificial intelligence (AI) boom. Beyond running a successful business, Huang has emerged as an influential voice in Washington. However, his reputation, along with NVIDIA’s shares, came under pressure recently after he admitted to having an affair with an alleged Chinese spy. 

Since the controversy surfaced, NVIDIA stock has plummeted nearly 10% and erased almost $430 billion in market capitalization over the past two trading sessions. Investors were already concerned about the potential impact of geopolitical tensions, regulatory scrutiny and uncertainty over AI spending on NVIDIA’s growth trajectory, and the latest controversy has now raised new concerns about the company’s reputation.

NVIDIA’s AI Dominance and Strong Financials Fuel Long-Term Growth

Despite the controversy, NVIDIA’s long-term growth prospects remain strong, driven by sustained demand for cutting-edge AI chips, data-center infrastructure, and advanced computing. NVIDIA’s powerful graphics processing units ecosystem and proprietary CUDA software have given it a competitive edge in powering the next phase of AI innovation.

Management remains quite confident that its revenue growth momentum will remain strong. NVIDIA expects fiscal third-quarter 2027 revenues to be $108 billion, plus or minus 2%, up from $96 billion reported in the fiscal second quarter of 2027, which marked 106% year-over-year and 18% quarter-over-quarter growth, according to the company’s Aug. 26 press release. 

The Data Center business remains the primary growth driver, with revenues jumping 117% to $89 billion in the fiscal second quarter. As NVIDIA’s Vera Rubin platform has entered full production, the company is well-poised to tap the strong demand for AI infrastructure and sustain revenue growth. 

Alongside revenues, NVIDIA’s profitability also improved. Its gross margins have risen to 75% in the fiscal second quarter from 72.4% a year earlier, alongside improvements in operating income, highlighting NVIDIA’s strong financial performance.

Here’s How to Play the NVIDIA Stock Now

Investors should look beyond short-term reputational risks and concentrate more on NVIDIA’s strong AI-driven growth trajectory and robust financials. The company continues to report strong quarterly results, driven by accelerating data center growth, and has provided upbeat guidance.  

Moreover, Huang’s leadership and long-term vision no doubt matter significantly, but NVIDIA’s strong market position and talent pool ensure that its fate is not entirely dependent on one individual. Nonetheless, the controversy-led sell-off offers investors an opportunity to buy NVIDIA’s shares at a lower valuation. It has a forward price-to-earnings (P/E) ratio of 18.16 compared to the Semiconductor - General industry’s 21.52.

NVIDIA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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