For Immediate Release
Chicago, IL – July 1, 2026 – Zacks Equity Research shares Quanta Services PWR as the Bull of the Day and Peabody Energy BTU as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIKE, Inc.'s NKE, lululemon athletica inc. LULU and adidas AG's ADDYY.
Here is a synopsis of all five stocks:
Bull of the Day:
Zacks Rank #1 (Strong Buy) company Quanta Services is an infrastructure services provider specializing in the electric power, pipeline, industrial and communication industries. Founded in 1997, the Houston, Texas-based company has grown organically and through more than 200 acquisitions. Quanta operated three primary business segments, including:
· Electric Power Infrastructure: The electricity business comprises the bulk of Quanta's revenue. The company designs, builds, and repairs high-voltage transmission lines, substations, and local distribution grids.
· Renewable Energy: Quanta builds the critical infrastructure for various clean energy projects such as wind farms, battery storage systems, and solar fields.
· Utility & Communications: The company installs natural gas pipelines, fiber-optic networks, and the physical power infrastructure required for data centers.
Quanta: Powering the AI Data Center Buildout
Although the California Gold Rush occurred during the 1800s, the business lessons and analogies from that time are invaluable for investors. While most people think of the Gold Rush as adventurous gold miners striking riches, the real lesson was in the good fortune of those merchants selling the "picks and shovels." In other words, merchants like Levi Strauss build reliable and durable fortunes by selling the necessary tools needed to mine gold, rather than attempting to mine on their own.
Quanta Power is a modern-day example of a company selling the picks and shovels. However, instead of cashing in on the gold rush, Quanta is profiting handsomely from the AI revolution. AI-centric companies like Microsoft, Meta Platforms, Alphabet,OpenAI and Anthropic require massive data centers to "train" their AI models with NVIDIAchips. The more NVIDIA chips these hyperscalers can deploy, the more powerful their AI models become. However, the data centers that house these high-powered chips require immense power.
In fact, a single AI data center can use as much electricity as 100,000 households! Meanwhile, McKinsey predicts that U.S, electricity demand will soar by ~50% by 2050.
With an aging, overworked U.S. electrical grid and AI data center demand soaring, Quanta Power stands to benefit as grid updates become a necessity.
PWR: Exceptional Growth & Backlog
Last quarter, PWR smashed Zacks Consensus Analyst Estimates by a juicy 31.37%, driven by AI demand.
Meanwhile, PWR has been one of the most steady and robust growers on Wall Street. Annual revenues and earnings are expected to finish the year more than double what they were in 2022.
However, according to President and CEO Duke Austin, that growth is just beginning:
"Quanta delivered an exceptional first quarter, reflected by strong double-digit growth in revenue, adjusted EBITDA and adjusted earnings per share, along with record backlog of $48.5 billion. In particular, revenue growth and margin performance exceeded our expectations across both segments, demonstrating the power of our differentiated, solutions-based operating model and the execution certainty our craft-skilled workforce delivers for our customers every day. Based on this strong start to the year and improved visibility, we are increasing our full-year 2026 financial expectations and remain on track to deliver another year of double-digit earnings per share growth."
PWR Technicals
PWR shares are finally retreating after a powerful move to form a bull flag pattern on the weekly chart.
Bottom Line
As the AI race intensifies among hyperscalers, the constraints of an aging, overworked U.S. electrical grid have become the ultimate bottleneck. Quanta Services is perfectly positioned to benefit from historic energy demand and the critical infrastructure modernization required to supply it.
Bear of the Day:
Zacks Rank #5 (Strong Sell) company Peabody Energy is one of the world's largest coal companies. The St. Louis, Missouri-based company provides coal used to produce electricity to industrial customers in more than 25 countries. BTU has majority ownership in a mix of 17 surface and underground coal mining operations in the United States and Australia. Peabody operates its business among two primary segments, including:
· Thermal Coal: Peabody provides high-quality thermal coal to domestic and international buyers. Thermal coal is used for electricity generation and is mainly sold to utility companies through long-term contracts.
· Seaborne Metallurgical Coal: Met coal is an essential ingredient needed to produce steel. Peabody mainly exports its met coal to Asian buyers who use it for infrastructure projects.
Over the past few years, BTU has been working to diversify its business into a more balanced mix by selling more met coal. Currently, met revenue accounts for roughly a third of total revenue.
Solar Overtakes Coal Energy Production for the 1st Time
Few, if any, on Earth know more about energy and clean energy than Tesla (TSLA) and SpaceX (SPCX) CEO Elon Musk. For years, Musk has touted solar energy, saying things like:
"Solar is everything. Other energy sources are a waste of time, like a caveman throwing some twigs into the fire."
"Once you understand the Kardashev Scale, it becomes utterly obvious that essentially all energy will be solar."
Although solar energy production requires higher start-up capital than coal, it is zero-emission and long-term generation costs are far lower. The latest energy production data tells the story. Solar energy accounted for 12.8% of U.S. electricity in May, surpassing coal (12.2%) for the first time in history. While low-cost natural gas remains the dominant electricity source (~37%), solar is catching up. In fact, solar and battery storage accounted for a staggering 91% of U.S. power capacity installed in Q1 2026.
BTU Unprofitable Despite Sky-High Electricity Prices
U.S. electricity prices have been soaring due to the rapid buildout of AI data centers. However, investors wouldn't know from BTU's fundamentals. BTU EPS has downtrended since early 2023 and flipped negative in early 2026.
Meanwhile, BTU has missed Zacks Consensus Analyst Estimates in five of the past 6 quarters.
The Centurion Mine Debacle
In addition to bearish macro trends, BTU is suffering from executional errors. For instance, the Australia-based Centurion mine was touted by management as the company's flagship location. Management expected 700,000 tons from the mine in Q1. However, Q1 production from the mine was a meager 250,000 due to mechanical and electrical issues.
BTU Underperformance is Concerning
BTU shares are exhibiting troubling relative price action. While the S&P 500 Index is up more than 7% year-to-date, BTU is down more than 20%.
Bottom Line
Although electricity prices are soaring thanks to AI data center demand, Peabody Energy is struggling. Peabody earnings have downtrended and flipped negative as solar electricity production flips coal production for the first time in history.
Additional content:
Does NIKE's International Momentum Outrun North American Weakness?
NIKE, Inc.'s international business has become its primary growth engine, benefiting from stronger consumer demand, product innovation and improving wholesale trends in several regions. NKE's international markets continue to demonstrate resilience, supported by localized product assortments, stronger brand engagement and sports-focused marketing.
NIKE's international momentum reflects its improving performance in overseas markets, buoyed by strong demand in performance categories such as running, football and training. While regions such as EMEA are benefiting from these efforts, Greater China remains under pressure as NIKE deliberately reduces inventory and restructures its marketplace.
Hence, International momentum is providing an important cushion in the near term. However, North America still remains the company's key market and contributes a significant share of revenues and profits; therefore, sustained improvement in North America is essential for a broad-based earnings recovery. The company's North America region is showing signs of recovery with growth in running, global football and basketball categories, and gains from "Win Now" actions.
In a nutshell, North America remains NIKE's core geography; strong international performance can lessen the impact of weakness there, but a meaningful recovery in North America is still important for the company's overall financial performance. On a broader level, the company is focusing on localized product development, strengthening partnerships, improving digital strategy and emphasizing performance-focused categories. NIKE's scale, innovation capabilities and marketing strength position it well for growth.
NKE's Competition
lululemon athletica inc. continues to benefit from the progress with its Power of Three X2 growth strategy. LULU is experiencing robust international momentum, with China and other global markets driving faster growth. lululemon's international business remains one of its strongest growth levers, supported by robust demand in China and other global markets. Management cited continued momentum in store productivity and digital engagement, with international regions outpacing North America.
adidas AG's strategy focuses on strengthening brand appeal, driving product innovation, improving operational efficiency and accelerating growth. ADDYY prioritizes operational efficiency, inventory discipline and sustainability to improve profitability and long-term competitiveness. adidas continues to expand its presence across the international markets through aggressive localization, digital investments and store expansion strategies.
NKE'S Price Performance, Valuation and Estimates
Shares of NIKE have lost 34.8% in the past six months compared with the industry's decline of 29.4%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 21.8X compared with the industry's average of 19.18X.
The Zacks Consensus Estimate for NKE's fiscal 2026 earnings implies a year-over-year plunge of 31.1% while that of fiscal 2027 shows growth of 23.3%. The company's EPS estimate for fiscal 2026 has moved south in the past 30 days while that of fiscal 2027 has been stable.
NIKE stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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NIKE, Inc. (NKE): Free Stock Analysis Report
Quanta Services, Inc. (PWR): Free Stock Analysis Report
Peabody Energy Corporation (BTU): Free Stock Analysis Report
lululemon athletica inc. (LULU): Free Stock Analysis Report
Adidas AG (ADDYY): Free Stock Analysis Report
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