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Coherent and Boston Scientific have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – November 13, 2026 – Zacks Equity Research shares Coherent (COHR - Free Report) as the Bull of the Day and Installed Boston Scientific (BSX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on CoreWeave, Inc. (CRWV - Free Report) .
Coherent delivered a strong September quarter and growth outlook on November 4 and shares bounced hard out of the semiconductor meltdown the next day when the SOX index lost 12%. I bought shares under $170 for my TAZR Trader portfolio.
The optical components maker grew revenue 50% to $2.37 billion, landed earnings above the top of its own guide with 80% growth, and raised its long-term gross margin target. Management says next year's orders are essentially booked.
The catch: building for that demand is costing cash now. Operating cash flow was negative and capex hit $776M. CEO Jim Anderson said customers help pay up front, but he didn't say how much.
Quarter Details
Coherent’s EPS of $2.09 beat the Zacks Consensus Estimate of $2 in the quarter, while revenues of $2.37 billion bested the consensus mark of $2.32 billion. Datacenter and communications revenue climbed to $1.95 billion from $1.09 billion, for a year-over-year advance of 79%.
Non-GAAP Operating Income came in at $550M vs estimates of $527 million. Non-GAAP Gross Margin was solid at 40.6% for a y-o-y advance of 184 basis points.
Management announced a new LTA deal with their PhotonLink platform for $20 billion over 5 years with "a leading AI data center customer," (not named) with revenue beginning early 2028. This is likely NVIDIA as their partnership in silicon photonics progresses since Jensen Huang's $2 billion investment in Coherent in March.
CEO Anderson said calendar 2027 is "basically booked out" and customers are now booking calendar 2028. Orders and multiple new long-term agreements (LTAs) were signed in Q1.
Strong Q2 Outlook, Plus InP Deal
Coherent forecast Q2 revenue of $2.55–$2.75 billion and EPS of $2.28–$2.48.
Analysts had already been raising EPS estimates before the company report, with the Zacks annual consensus moving from $9.44 to $9.73 for FY 2027, which began in July. After the conference call, they boosted the consensus another 5% to $10.25.
And FY 2028 estimates jumped over 10% in the past few weeks from $13.88 to $15.38, giving the stock a forward P/E of just 15X.
Speaking of valuation, on a price-to-sales basis, COHR trades at just 4X this year's consensus of $11 billion -- growing 56% -- and just 3X FY'28 projections of over $15 billion, which represents a 37% annual advance.
Sherri Luther, CFO, said, “Our Q1 results delivered substantial operating leverage and durable gross margin expansion, driven by pricing optimization and cost improvements. This margin strength gives us the confidence to raise our longer-term target. We expect to achieve our first quarter with non-GAAP gross margin above 45% before the end of calendar 2028.”
Optics Technology Holding Co. said its unit signed a letter of intent with Coherent to supply indium phosphide (InP) substrates, an essential ingredient for optical components. Internal laser-chip capacity doubled YoY in Q1, a quarter early, with a plan to double again by end of calendar 2027. The agreement is expected to be worth at least $601 million.
Anderson emphasized InP manufacturing expansion as essential to supporting optical transceivers and integrated optics products, so the additional capex seems well-placed.
Optics Technology will supply 6-inch indium phosphide (InP) semiconductor substrates, with shipments scheduled to run from 2027 through 2029. The substrates will supply Coherent's production facilities in Switzerland and Sweden.
Conference Call Highlights
Responding to a JPMorgan analyst, Anderson outlined expectations for PhotonLink quarterly revenues to exceed $100 million in the March quarter and $250 million before the end of calendar 2027. He emphasized that demand will expand as optical connectivity penetrates scale-up networks.
Addressing a Morgan Stanley analyst, Anderson said the company has secured necessary substrates through multiple suppliers. Management also highlighted increasing internal component sourcing as a key opportunity for reducing production costs and improving profitability.
Regarding their pipeline, management talked about more than 10 CPO (co-packaged optics), more than 10 NPO (near-packaged optics), and more than 5 chip-to-chip engagements beyond the two anchor customers.
Regarding their addressable markets, the company estimates about $30 billion for CPO, NPO and chip-to-chip optics by 2030, with OCS (optical circuit switching) crossing $4 billion.
Analysts estimate Coherent's addressable market could reach $9.4 billion in 2027 and $36 billion in 2028.
Analyst Views and Price Target Changes
Coherent got mixed target changes: Citi raised its Buy target to $440 from $420, while Rosenblatt cut its Buy target to $400 from $500 and Needham lowered its Buy target to $340 from $380.
JPMorgan cut Coherent’s price target to $385 from $465, keeping an Overweight rating, citing that their industry checks point to strong optical demand through late 2026 and into 2027.
Needham analyst Ryan Koontz wrote in a note "COHR also raised GM expectations, now forecasting its first quarter above 45% NG GM before the end of 2028," Koontz added. "A steeper GM trajectory amidst strong AI demand meaningfully improves our view on the stock, particularly in light of the LITE acquisition."
"Meanwhile, the company recorded its first revenues associated with PhotonLink in the quarter, seemingly associated with the NVIDIA scale-out CPO platform," said Susquehanna analyst Christopher Rolland in a Thursday note. "Revenues here should grow to ~$100M in the March quarter and ramp to ~$250M by the end of 2027. Beyond transceivers, Coherent is also ramping OCS shipments (primarily 320x320) into scale across, scale out and scale up applications."
"Outside of DC, Communications results were better than expected, driven primarily by rapid growth in scale across revenue," he added. "Indeed, the company's scale across business is now yielding $1B of annualized revenue and is expected to reach ~$2B of annualized revenue by the end of 2027. Furthermore, multi-rail is also expected to begin contributing revenue in the upcoming March quarter."
Bernstein on COHR: Optical value keeps rising as GPU architecture improves
In a November 10 report, Bernstein semi analysts estimate about $5.4 million of optical content in a 576-GPU pod (8 racks) versus roughly $1 million for the earlier Vera Rubin setup, as bandwidth rises 7.7X.
About $1 million of that would come from CPO, while pluggable modules would still make up the larger share.
Rubin Ultra could increase the optical content in each GPU cluster by more than 5X. Bernstein kept its Outperform rating and a $350 price target.
Jensen's 5-Layer Cake is Delicious for COHR
This quarter proves there is an expanding and durable pie (er... cake) that Coherent is primed to capture more of. And if they can maintain GMs of 40-42%, the stock should do very well.
As icing on that cake, CEO James Anderson purchased 5,000 shares of COHR at $199.48 per share recently for a total of $997,400. He directly owned 190,287 shares after the transaction.
Disclosure: Kevin Cook owns COHR and NVDA shares for the Zacks TAZR Trader portfolio.
I last wrote about Boston Scientific as the Bear of the Day in early August after their Q2 report and management's lowered guidance propelled analysts to notch down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.
Here's how I described the situation then...
Boston Scientific manufactures medical devices and products used in various interventional medical specialties worldwide, including cardiovascular and surgical categories.
On July 29, BSX reported revenue of $5.44 billion for their June quarter, up 7.5% over the same period last year. EPS came in at $0.86, compared to $0.75 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.38 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.
In response to the conference call and management's lowered guidance, analysts notched down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.
Since its 2025 highs near $110, BSX has been in a steady bear market, making new 52-week lows above $42 last month -- despite nearly doubling revenues in the last 5 years to cross $21 billion.
The stock may soon sort out a bottom after this report given other strong metrics under the hood of the business which continues to grow the top and bottom lines at mid-single digits.
That link will take you to a review of their quarterly results delivered on October 28, which put them back in the cellar of the Zacks Rank as analysts once again lowered their growth forecasts.
In the past two months, the Zacks consensus EPS estimate for this year has dropped from $3.29 to $3.17, representing just 3.6% annual growth. And next year has fallen to flatline from $3.39 to $3.09.
Shares look somewhat reasonable on a P/E basis at 15X. But with growth continuing to flatline, it looks more expensive trading over 3x sales that are also projected to go negative.
For a more optimistic long term look at the BSX business, check out this detailed report by my colleague Mayur Thaker who is a deep value investor with his sights on Boston Scientific...
CoreWeave Stock: Is Record Q3 Revenue & $132.5B Backlog a Buy Signal?
CoreWeave, Inc.’s shares skyrocketed 24.7% on Nov. 11 after record third-quarter performance, while a massive customer backlog bolstered its growth outlook. But mounting interest expense and rising debt continue to pose significant risks. So, what should investors do? Ride the post-earnings rally or wait till these financial concerns are addressed. Let’s see.
CRWV’s Strong Q3 Boosts AI Growth and Profitability Outlook
CoreWeave reported record third-quarter revenues of $3.66 billion, up 168% year over year, according to the company’s Nov. 10 press release, after market close. Revenues increased by more than $1 billion sequentially, signaling accelerating momentum. The company posted a backlog of around $132.5 billion, providing significant revenue visibility in the coming years. The backlog underscores strong demand for CoreWeave’s artificial intelligence (AI) cloud infrastructure.
Additionally, CoreWeave has raised its full-year 2026 revenue guidance to $13 billion–$13.3 billion, as management expects sustained business expansion. CoreWeave’s international expansion and extended partnerships further reinforce its position in the expanding AI infrastructure market. To top it off, CoreWeave expects $9 billion in customer prepayments and deposits over the next three months, which should provide the company with additional funds to support infrastructure expansion.
CoreWeave’s operating income nearly quadrupled, while its adjusted EBITDA reached $2.26 billion, up from $838 million a year ago. These results indicate CoreWeave’s improving operating performance and its ability to scale its AI infrastructure business while generating higher adjusted earnings.
CoreWeave Stock: Buy, Hold or Sell After Q3 Earnings?
The latest quarterly results highlighted robust demand for CoreWeave’s AI infrastructure, growing customer commitments and improving operating performance, reinforcing its long-term growth potential. This should encourage stakeholders to stay invested.
A word of caution for new investors: CoreWeave’s higher interest expense could weigh on its future profitability. The company reported a net interest expense of $846 million in the third quarter, and expects it to increase to $1.05 billion–$1.15 billion in the fourth quarter. Let’s not forget that the company has already reported a GAAP net loss of $709 million in the third quarter.
Moreover, CoreWeave’s debt-to-equity ratio of 552.7% exceeds the Internet - Software industry’s 33.7%, indicating greater dependency on debt financing, potentially increasing its financial risk during economic downturns.???
Therefore, new investors should carefully weigh these drawbacks before investing, or consider waiting until CoreWeave converts its enormous backlog into sustainable long-term profitability. CoreWeave currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.???????????????
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
View the Zacks #1 Rank List
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Coherent and Boston Scientific have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 13, 2026 – Zacks Equity Research shares Coherent (COHR - Free Report) as the Bull of the Day and Installed Boston Scientific (BSX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on CoreWeave, Inc. (CRWV - Free Report) .
Here is a synopsis of all three stocks.
Bull of the Day:
Coherent delivered a strong September quarter and growth outlook on November 4 and shares bounced hard out of the semiconductor meltdown the next day when the SOX index lost 12%. I bought shares under $170 for my TAZR Trader portfolio.
The optical components maker grew revenue 50% to $2.37 billion, landed earnings above the top of its own guide with 80% growth, and raised its long-term gross margin target. Management says next year's orders are essentially booked.
The catch: building for that demand is costing cash now. Operating cash flow was negative and capex hit $776M. CEO Jim Anderson said customers help pay up front, but he didn't say how much.
Quarter Details
Coherent’s EPS of $2.09 beat the Zacks Consensus Estimate of $2 in the quarter, while revenues of $2.37 billion bested the consensus mark of $2.32 billion. Datacenter and communications revenue climbed to $1.95 billion from $1.09 billion, for a year-over-year advance of 79%.
Non-GAAP Operating Income came in at $550M vs estimates of $527 million. Non-GAAP Gross Margin was solid at 40.6% for a y-o-y advance of 184 basis points.
Management announced a new LTA deal with their PhotonLink platform for $20 billion over 5 years with "a leading AI data center customer," (not named) with revenue beginning early 2028. This is likely NVIDIA as their partnership in silicon photonics progresses since Jensen Huang's $2 billion investment in Coherent in March.
CEO Anderson said calendar 2027 is "basically booked out" and customers are now booking calendar 2028. Orders and multiple new long-term agreements (LTAs) were signed in Q1.
Strong Q2 Outlook, Plus InP Deal
Coherent forecast Q2 revenue of $2.55–$2.75 billion and EPS of $2.28–$2.48.
Analysts had already been raising EPS estimates before the company report, with the Zacks annual consensus moving from $9.44 to $9.73 for FY 2027, which began in July. After the conference call, they boosted the consensus another 5% to $10.25.
And FY 2028 estimates jumped over 10% in the past few weeks from $13.88 to $15.38, giving the stock a forward P/E of just 15X.
Speaking of valuation, on a price-to-sales basis, COHR trades at just 4X this year's consensus of $11 billion -- growing 56% -- and just 3X FY'28 projections of over $15 billion, which represents a 37% annual advance.
Sherri Luther, CFO, said, “Our Q1 results delivered substantial operating leverage and durable gross margin expansion, driven by pricing optimization and cost improvements. This margin strength gives us the confidence to raise our longer-term target. We expect to achieve our first quarter with non-GAAP gross margin above 45% before the end of calendar 2028.”
Optics Technology Holding Co. said its unit signed a letter of intent with Coherent to supply indium phosphide (InP) substrates, an essential ingredient for optical components. Internal laser-chip capacity doubled YoY in Q1, a quarter early, with a plan to double again by end of calendar 2027. The agreement is expected to be worth at least $601 million.
Anderson emphasized InP manufacturing expansion as essential to supporting optical transceivers and integrated optics products, so the additional capex seems well-placed.
Optics Technology will supply 6-inch indium phosphide (InP) semiconductor substrates, with shipments scheduled to run from 2027 through 2029. The substrates will supply Coherent's production facilities in Switzerland and Sweden.
Conference Call Highlights
Responding to a JPMorgan analyst, Anderson outlined expectations for PhotonLink quarterly revenues to exceed $100 million in the March quarter and $250 million before the end of calendar 2027. He emphasized that demand will expand as optical connectivity penetrates scale-up networks.
Addressing a Morgan Stanley analyst, Anderson said the company has secured necessary substrates through multiple suppliers. Management also highlighted increasing internal component sourcing as a key opportunity for reducing production costs and improving profitability.
Regarding their pipeline, management talked about more than 10 CPO (co-packaged optics), more than 10 NPO (near-packaged optics), and more than 5 chip-to-chip engagements beyond the two anchor customers.
Regarding their addressable markets, the company estimates about $30 billion for CPO, NPO and chip-to-chip optics by 2030, with OCS (optical circuit switching) crossing $4 billion.
Analysts estimate Coherent's addressable market could reach $9.4 billion in 2027 and $36 billion in 2028.
Analyst Views and Price Target Changes
Coherent got mixed target changes: Citi raised its Buy target to $440 from $420, while Rosenblatt cut its Buy target to $400 from $500 and Needham lowered its Buy target to $340 from $380.
JPMorgan cut Coherent’s price target to $385 from $465, keeping an Overweight rating, citing that their industry checks point to strong optical demand through late 2026 and into 2027.
Needham analyst Ryan Koontz wrote in a note "COHR also raised GM expectations, now forecasting its first quarter above 45% NG GM before the end of 2028," Koontz added. "A steeper GM trajectory amidst strong AI demand meaningfully improves our view on the stock, particularly in light of the LITE acquisition."
"Meanwhile, the company recorded its first revenues associated with PhotonLink in the quarter, seemingly associated with the NVIDIA scale-out CPO platform," said Susquehanna analyst Christopher Rolland in a Thursday note. "Revenues here should grow to ~$100M in the March quarter and ramp to ~$250M by the end of 2027. Beyond transceivers, Coherent is also ramping OCS shipments (primarily 320x320) into scale across, scale out and scale up applications."
"Outside of DC, Communications results were better than expected, driven primarily by rapid growth in scale across revenue," he added. "Indeed, the company's scale across business is now yielding $1B of annualized revenue and is expected to reach ~$2B of annualized revenue by the end of 2027. Furthermore, multi-rail is also expected to begin contributing revenue in the upcoming March quarter."
Bernstein on COHR: Optical value keeps rising as GPU architecture improves
In a November 10 report, Bernstein semi analysts estimate about $5.4 million of optical content in a 576-GPU pod (8 racks) versus roughly $1 million for the earlier Vera Rubin setup, as bandwidth rises 7.7X.
About $1 million of that would come from CPO, while pluggable modules would still make up the larger share.
Rubin Ultra could increase the optical content in each GPU cluster by more than 5X. Bernstein kept its Outperform rating and a $350 price target.
Jensen's 5-Layer Cake is Delicious for COHR
This quarter proves there is an expanding and durable pie (er... cake) that Coherent is primed to capture more of. And if they can maintain GMs of 40-42%, the stock should do very well.
As icing on that cake, CEO James Anderson purchased 5,000 shares of COHR at $199.48 per share recently for a total of $997,400. He directly owned 190,287 shares after the transaction.
Disclosure: Kevin Cook owns COHR and NVDA shares for the Zacks TAZR Trader portfolio.
Bear of the Day:
I last wrote about Boston Scientific as the Bear of the Day in early August after their Q2 report and management's lowered guidance propelled analysts to notch down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.
Here's how I described the situation then...
Boston Scientific manufactures medical devices and products used in various interventional medical specialties worldwide, including cardiovascular and surgical categories.
On July 29, BSX reported revenue of $5.44 billion for their June quarter, up 7.5% over the same period last year. EPS came in at $0.86, compared to $0.75 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $5.38 billion, representing a surprise of +1.07%. The company delivered an EPS surprise of +3.61%, with the consensus EPS estimate being $0.83.
In response to the conference call and management's lowered guidance, analysts notched down their EPS estimates for this year and next, causing BSX shares to fall into the cellar of the Zacks Rank.
Since its 2025 highs near $110, BSX has been in a steady bear market, making new 52-week lows above $42 last month -- despite nearly doubling revenues in the last 5 years to cross $21 billion.
The stock may soon sort out a bottom after this report given other strong metrics under the hood of the business which continues to grow the top and bottom lines at mid-single digits.
(end of August 3 article excerpt)
BSX Q3 Results Reset Growth Expectations as 2027 Outlook Stays Weak
That link will take you to a review of their quarterly results delivered on October 28, which put them back in the cellar of the Zacks Rank as analysts once again lowered their growth forecasts.
In the past two months, the Zacks consensus EPS estimate for this year has dropped from $3.29 to $3.17, representing just 3.6% annual growth. And next year has fallen to flatline from $3.39 to $3.09.
Shares look somewhat reasonable on a P/E basis at 15X. But with growth continuing to flatline, it looks more expensive trading over 3x sales that are also projected to go negative.
For a more optimistic long term look at the BSX business, check out this detailed report by my colleague Mayur Thaker who is a deep value investor with his sights on Boston Scientific...
Dem Sweep Brings Uncertainty to AI Projects
Additional content:
CoreWeave Stock: Is Record Q3 Revenue & $132.5B Backlog a Buy Signal?
CoreWeave, Inc.’s shares skyrocketed 24.7% on Nov. 11 after record third-quarter performance, while a massive customer backlog bolstered its growth outlook. But mounting interest expense and rising debt continue to pose significant risks. So, what should investors do? Ride the post-earnings rally or wait till these financial concerns are addressed. Let’s see.
CRWV’s Strong Q3 Boosts AI Growth and Profitability Outlook
CoreWeave reported record third-quarter revenues of $3.66 billion, up 168% year over year, according to the company’s Nov. 10 press release, after market close. Revenues increased by more than $1 billion sequentially, signaling accelerating momentum. The company posted a backlog of around $132.5 billion, providing significant revenue visibility in the coming years. The backlog underscores strong demand for CoreWeave’s artificial intelligence (AI) cloud infrastructure.
Additionally, CoreWeave has raised its full-year 2026 revenue guidance to $13 billion–$13.3 billion, as management expects sustained business expansion. CoreWeave’s international expansion and extended partnerships further reinforce its position in the expanding AI infrastructure market. To top it off, CoreWeave expects $9 billion in customer prepayments and deposits over the next three months, which should provide the company with additional funds to support infrastructure expansion.
CoreWeave’s operating income nearly quadrupled, while its adjusted EBITDA reached $2.26 billion, up from $838 million a year ago. These results indicate CoreWeave’s improving operating performance and its ability to scale its AI infrastructure business while generating higher adjusted earnings.
CoreWeave Stock: Buy, Hold or Sell After Q3 Earnings?
The latest quarterly results highlighted robust demand for CoreWeave’s AI infrastructure, growing customer commitments and improving operating performance, reinforcing its long-term growth potential. This should encourage stakeholders to stay invested.
A word of caution for new investors: CoreWeave’s higher interest expense could weigh on its future profitability. The company reported a net interest expense of $846 million in the third quarter, and expects it to increase to $1.05 billion–$1.15 billion in the fourth quarter. Let’s not forget that the company has already reported a GAAP net loss of $709 million in the third quarter.
Moreover, CoreWeave’s debt-to-equity ratio of 552.7% exceeds the Internet - Software industry’s 33.7%, indicating greater dependency on debt financing, potentially increasing its financial risk during economic downturns.???
Therefore, new investors should carefully weigh these drawbacks before investing, or consider waiting until CoreWeave converts its enormous backlog into sustainable long-term profitability. CoreWeave currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.???????????????
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>