CME Group and GMS have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – April 11, 2025 – Zacks Equity Research shares CME Group CME as the Bull of the Day and GMS GMS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Expand Energy EXE, Flotek Industries FTK and Solaris Energy Infrastructure SEI.Here is a synopsis of all five stocks.Bull of the Day:CME Group, a Zacks Rank #1 (Strong Buy), is the world’s leading and most diverse derivatives marketplace. CME Group operates contract markets for the trading of futures and options worldwide. The company offers derivatives products based on interest rates, equities, foreign exchange, commodities, and fixed income through its electronic trading platforms.The stock is displaying relative strength and has been making a series of 52-week highs this year. Shares have held up extremely well through the recent market volatility. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.This year’s market action has witnessed a notable rotation in industry strength. It’s our job to identify that rotation and position our portfolios to benefit from it.CME Group is part of the Zacks Securities and Exchanges industry group, which currently ranks in the top 15% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year.Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.Company DescriptionIn addition to its operation of contract markets for the trading of derivatives, the Chicago, Illinois-based company provides clearing house services including clearing, settling, and guaranteeing of futures, options, and cleared swaps products through its exchanges. CME Group also provides trade processing and risk mitigation services.The exchange offers a range of market data services including real-time and historical data. CME Group serves professional traders, financial institutions, corporations, governments and central banks. The company witnessed record activity in its cryptocurrency derivatives markets during the first quarter of the year, driven by micro-sized contracts.CME Group boasts a strong market position driven by its diverse product line and numerous strategic alliances. Fundamental growth remains a key driver for the company’s operating leverage, as CME leads with about 90% market share of global futures trading and clearing services. While higher electronic trading volume adds scalability, product innovation and a growing proportion of volume from customers outside the United States have been driving results.Earnings Trends and Future EstimatesCME Group boasts a long history of surpassing earnings estimates. The company most recently delivered fourth-quarter earnings back in February of $2.52 per share, which represented a 3.28% surprise over the Zacks Consensus Estimate.CME has delivered a trailing four-quarter average surprise of 2.2%. Consistently beating earnings estimates is a recipe for success.Analysts covering CME have upped their current-quarter EPS estimates by 5.84% in the past 60 days. The Zacks Consensus Estimate now stands at $2.72 per share, translating to growth of 8.8% relative to the year-ago period.What the Zacks Model RevealsThe Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently witnessed positive earnings estimate revision activity. This more recent information can be a better predictor for future earnings and can give investors a leg up during earnings season.The technique has proven to be quite useful for finding positive earnings surprises. In fact, when combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive surprise 70% of the time according to our 10-year back test.CME Group is a Zacks Rank #1 (Strong Buy) and boasts a +3.87% Earnings ESP. Another beat may be in the cards when the company reports Q1 results on April 23rd.Let’s Get TechnicalThis market leader has seen its stock advance more than 11% already this year, all while the general market remains in a correction. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, CME stock is poised to continue its outperformance.Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, CME Group has recently witnessed positive revisions. As long as this trend remains intact (and CME continues to deliver earnings beats), the stock will likely continue its bullish run.Bottom LineBacked by a leading industry group and history of earnings beats, it’s not difficult to see why CME stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.CME is ranked favorably by our Zacks Momentum Style Score with a top ‘A’ rating. This indicates that shares are likely to move higher based on momentum in earnings and sales trends along with price performance.Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put CME on your shortlist.Bear of the Day:GMS distributes wallboard, ceilings, insulation, and complementary construction products in the United States and Canada. The company offers ceiling solutions used in offices, hotels, hospitals, schools, and other commercial and institutional buildings.Based in Tucker, Georgia, GMS also provides steel framing products such as steel tracks and studs used to frame interior walls. Serving homebuilders and professional contractors, the company offers ancillary products comprising tools, fasteners, lumber, and safety gadgets. GMS operates through tool sales, rental, and service centers, as well as a network of distribution centers.The building materials distributor faces several headwinds. Revenue trends remain negative as the company struggles to adjust to shrinking demand. As we’ll see, analysts have been slashing earnings estimates as the growth outlook dwindles.The Zacks RundownA Zacks Rank #5 (Strong Sell) stock, GMS is a component of the Zacks Building Products - Retail industry group, which currently ranks in the bottom 6% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past year.Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.Along with many other building product stocks, GMS shares have been hit hard this year. The stock is hitting a series of lower lows and represents a compelling short opportunity as we head further into 2025.Recent Earnings Misses & Deteriorating OutlookGMS has fallen short of earnings estimates in each of the past five quarters. Just last month, the company reported fourth-quarter earnings of 92 cents per share, missing the Zacks Consensus Estimate by -33.8%.The construction products supplier has posted an average earnings miss of -14.6% over the last four quarters. Consistently falling short of earnings estimates is a recipe for underperformance, and GMS is no exception.The company has been on the receiving end of negative earnings estimate revisions as of late. Looking at the current quarter, analysts have slashed estimates by a whopping -38.5% in the past 60 days. The Zacks Consensus EPS Estimate is now $1.15 per share, reflecting negative growth of -40.5% relative to the year-ago period. Sales are projected to fall -8.2% year-over-year to $1.3 billion.Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.Technical OutlookGMS stock is in a sustained downtrend. The stock has made a series of lower lows. Also note that shares are trading below moving averages – another good sign for the bears.GMS stock has experienced what is known as a “death cross,” whereby the stock’s 50-day moving average crosses below its 200-day moving average. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen more than 15% this year alone.Final ThoughtsA deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that GMS is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.GMS is likely to suffer from uncertainties surrounding the U.S. construction market, which are expected to continue given affordability concerns and lingering inflationary pressures.Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of GMS until the situation shows major signs of improvement.Additional content:3 Energy Stocks with Strong Broker Support to Defy Energy VolatilityCrude oil has stumbled into 2025, with prices tumbling more than 10% year to date. Earlier this week, benchmarks dipped below $60 a barrel — a level not seen since 2021 — amid mounting concerns over a potential global recession. Weighing further on sentiment, OPEC+ caught markets off guard by accelerating the rollback of production cuts. Meanwhile, Saudi Arabia deepened the sell-off by slashing its official selling prices, intensifying pressure on an already fragile market.Yet, in a sharp reversal, oil prices jumped nearly $3 a barrel on Wednesday. The rebound was fueled by a broader market rally sparked by President Trump’s move to delay "reciprocal" tariff increases and introduce a temporary 10% tariff rate for most countries over a 90-day period.This volatility highlights the deep uncertainty surrounding oil’s supply-demand dynamics. Energy companies remain heavily exposed to commodity swings, and shifting political winds or headline-driven shocks can quickly reshape the outlook. In this environment, careful stock selection becomes increasingly important.For newer investors, the sector’s volatility can be daunting — but not without opportunity. Stocks like Expand Energy, Flotek Industries and Solaris Energy Infrastructure may offer stability amid the chaos. With each currently holding a Zacks Rank #1 (Strong Buy) or #2 (Buy), brokers' positive outlooks suggest strong underlying fundamentals that could reward patient investors.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Why It May Pay Off to Follow Expert OpinionNavigating the ups and downs of oil prices can be daunting for individual investors. With so many unpredictable forces influencing the commodity’s direction, relying on expert analysis may offer a more grounded approach. Analysts bring in-depth industry knowledge and a close understanding of company fundamentals — giving them a sharper view of which stocks are poised to perform.Market reactions often follow brokerage rating changes. Upgrades tend to spark investor interest and can drive prices higher, while downgrades may signal potential trouble ahead. In fact, research consistently shows that stocks receiving broker upgrades often outperform their peers — and certainly do better than those on the downgrade list. Following expert sentiment isn’t just about playing it safe; it can be a strategic way to stay ahead.Brokers Love These 3 Energy StocksWith the help of the Zacks Stock Screener, we have selected three stocks that have been given a Strong Buy or Buy rating by 75% or more brokers.Expand Energy: Expand Energy has solidified itself as the largest natural gas producer in the United States following the Chesapeake-Southwestern merger. With key assets in the Haynesville and Marcellus basins, #1 Ranked EXE is well-positioned to capitalize on the increasing demand for natural gas, driven by LNG exports, AI/data centers, EV expansion, and broader electrification trends.Investors should know that 20 of the 27 brokers providing data to Zacks on Expand Energy’s stock have Strong Buy recommendations. The other seven ratings are two Buys and five Holds, giving the company an attractive average brokerage recommendation (“ABR”) of 1.43 on a scale of 1 to 5 (Strong Buy to Strong Sell).Annual earnings for Expand Energy are forecast to surge 479.4% this year and rise another 37.1% in 2026 to $11.20 per share. Moreover, sales are projected to climb 214.5% in 2025 and rise another 11.1% in 2026 to $10.4 billion.Flotek Industries: Headquartered in Houston, TX, Flotek Industries specializes in advanced chemical technologies and data analytics tailored to Oil/Energy. The company, carrying a Zacks Rank of 2, offers two core segments: chemistry technologies, featuring solutions like Complex nano-Fluid for enhanced oil recovery, and data analytics, with its JP3 gas measurement systems driving operational efficiency and compliance. This diversified portfolio underscores Flotek’s commitment to innovation and sustainability in the energy industry.The Zacks Consensus Estimate for the company’s 2025 earnings suggests an impressive 38.2% increase. Notably, over the past 60 days, the Zacks Consensus Estimate for Flotek Industries’ 2025 earnings has gone up 9.3%.Flotek Industries’ stock has no Strong Sell or Sell broker ratings, with three of them strongly recommending the company’s shares. After including one buy rating, Flotek Industries’ 1.13 ABR is intriguing.Solaris Energy Infrastructure: Solaris Energy Infrastructure is an energy equipment and technology provider. The Zacks #2 Ranked company continues to invest in cutting-edge technology to enhance operational efficiency and maintain its competitive edge. AI-driven automation and cloud-based solutions have improved project execution and client engagement. These advancements position SEI well, as digital transformation accelerates across the energy sector, further supporting stock price appreciation.An under-the-radar energy stock, Solaris Energy Infrastructure has a very favorable ABR of 1.00. Currently, all six brokers have a Strong Buy rating on Solaris Energy Infrastructure stock.Total sales are projected to jump 64.9% in 2025 and another 38% in 2026 to $712.7 million. Earnings are anticipated to rise 14% this year and jump 110.5% in 2026 to $1.20 a share.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 >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CME Group Inc. (CME): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis Report GMS Inc. (GMS): Free Stock Analysis Report Solaris Energy Infrastructure, Inc. (SEI): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks