For Immediate Release
Chicago, IL – August 25, 2026 – Zacks Equity Research shares Palantir Technologies PLTR as the Bull of the Day and GoPro GPRO 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:
Palantir Technologies has suddenly emerged as a leader in the artificial intelligence boom, alongside extraordinary growth across both its commercial and government businesses.
More recently, the company has begun to carve out a more distinct role within the AI ecosystem. While much of the industry remains focused on building increasingly powerful foundation models, Palantir is positioning itself as the layer that allows corporations and governments to actually deploy those models against their own proprietary data, and do so with an eye toward privacy and protecting intellectual property.
That distinction appears to be gaining traction. Palantir’s latest earnings report showed another major acceleration in growth, while analysts have continued to raise earnings estimates across every major period.
At the same time, PLTR shares recently broke out from a year-long technical consolidation and are now pressing against another important resistance level near $180, with strong momentum at its back.
With fundamentals, earnings revisions and price momentum all moving in the same direction, Palantir earns today’s Bull of the Day designation.
Palantir Earnings Estimates Continue to Rise
Palantir’s latest quarter reinforced just how quickly the business is expanding. Revenue surged 93% year over year, while earnings climbed 225%.
More important for the Zacks Rank, analysts responded by raising their forecasts.
Over the last 60 days, there have been 11 upward revisions to the current year earnings estimate and zero downward revisions. Earnings estimates have risen 7-8% across timeframes over the last 60 days, giving Palantir a Zacks Rank #1 (Strong Buy).
Growth expectations remain exceptional as well. Earnings are projected to increase more than 100% this year, followed by another roughly 41% next year. Longer term, analysts expect EPS to compound at approximately 55% annually over the next three to five years.
The obvious objection is valuation. PLTR currently trades at roughly 113x forward earnings, giving it a PEG ratio just above 2. That is an extremely rich multiple and leaves little room for execution problems.
However, Palantir has consistently grown into what initially appeared to be extreme valuations. If earnings estimates continue moving higher at anything close to the recent pace, the denominator in that valuation equation can change quickly.
Palantir Finds Its Place in the AI Boom
The increasingly interesting part of the Palantir story is its positioning within the broader AI ecosystem.
CEO Alex Karp has emphasized the importance of allowing companies and governments to use artificial intelligence without surrendering control of sensitive data and intellectual property. Rather than competing directly with the largest AI labs to build foundation models, Palantir is increasingly positioning itself as the infrastructure through which organizations can safely deploy those models against proprietary data.
That could prove to be a valuable position as AI moves from experimentation toward widespread enterprise adoption.
There is already evidence that customers are expanding their use of Palantir’s platform. Net dollar retention recently reached 157%, indicating that existing customers are spending substantially more with the company.
That is one of the key metrics I would continue watching. If Palantir can maintain elevated expansion rates as AI adoption broadens, it would strengthen the case that the company is becoming a critical layer of enterprise AI rather than simply another beneficiary of the current investment cycle.
PLTR Stock Sets Up for Another Breakout
The technical picture is reinforcing the fundamental story.
Earlier this month, PLTR broke decisively above the upper boundary of a large descending consolidation that had contained the stock for much of the past year. Shares quickly rallied from the mid-$140s into the $170s following the breakout.
PLTR stock has now spent the last couple weeks consolidating near its highs. Shares are currently trading around $178, with a clearly defined resistance zone near $180 and support around $170-$171.
That creates a straightforward continuation setup. A decisive move through $180 would clear the recent highs and could signal the beginning of another leg higher. Conversely, a break back below the low-$170s would suggest that the stock needs additional time to digest its recent advance.
Should Investors Buy Shares in PLTR?
Palantir is not a cheap stock, and investors buying at more than 100x forward earnings need to recognize the expectations embedded in the valuation.
But expensive stocks can remain expensive when their earnings outlook continues improving.
Palantir currently combines several characteristics I look for in leading growth stocks: rapid revenue growth, accelerating earnings, broad-based upward estimate revisions and strong relative price momentum. The company is also establishing a potentially important role as enterprises and governments move from experimenting with AI toward integrating it into their operations.
Bear of the Day:
GoPro was once one of the most recognizable growth brands in consumer electronics, but the business has been in structural decline for years. Despite repeated attempts to diversify beyond its core action-camera franchise, revenue continues to contract, camera volumes are falling and profitability remains elusive.
The latest results offered little evidence that the trend is reversing. Second quarter revenue fell 31% year over year to $105 million, while camera sell-through (Sell-through measures the percentage of inventory a retailer sells compared to the total stock shipped to them by the manufacturer) declined 38% to approximately 291,000 units. GoPro posted a $51 million GAAP net loss, compared with a $16 million loss a year earlier, while adjusted EBITDA deteriorated to negative $29 million.
Those numbers follow a difficult 2025, when full-year revenue declined 19% and camera sell-through dropped 20%. Subscription revenue has provided some stability, but it has not been nearly large enough to offset deterioration in the core hardware business.
More concerning is how GoPro is financing itself while attempting another turnaround.
Earlier this year, the company entered into an agreement with Yorkville for as much as $50 million of convertible debt, explicitly creating the potential for dilution as those securities are converted into common stock.
Then in July, founder and CEO Nicholas Woodman provided another $20 million through senior secured notes accompanied by warrants to purchase roughly 25.7 million shares of Class B stock. GoPro also amended its revolving credit facility, including increased borrowing costs and lender waivers.
Woodman's willingness to provide capital certainly demonstrates confidence in the company he founded. But from an investor's perspective, the broader financing picture is difficult to ignore. When a shrinking business is funding continued losses with secured debt, convertible securities and warrants, existing shareholders face both balance-sheet risk and potential dilution.
GoPro's board has also initiated a review of strategic alternatives, another indication that the company recognizes the need for a more significant change in direction.
GoPro Earnings Estimates Collapse
The deteriorating fundamental picture is showing up clearly in analyst expectations. GoPro currently carries a Zacks Rank #5 (Strong Sell), reflecting a dramatic downward shift in earnings estimates.
Over the last 60 days, the analyst covering GPRO has meaningfully lowered forecasts. The current quarter estimate has fallen from a profit of $0.01 per share to a loss of $0.14. Next quarter estimates have moved from positive $0.05 to a $0.02 loss. The full year estimate has collapsed from positive $0.05 to a loss of $0.72 per share and next year estimates have moved from positive $0.05 to a $0.01 loss.
The consensus outlook has moved from modest profitability to substantial losses in a very short period.
The revisions also follow another disappointing earnings report. In Q2, GoPro generated $105 million in revenue, down from $153 million a year earlier, while adjusted EBITDA swung from a $6 million loss to a $29 million loss.
The company is finding some success in subscriptions, where revenue increased 11% and subscriber attach rates reached a record 69%. But that remains a relatively small bright spot within a much larger business experiencing severe volume declines.
For the stock to recover sustainably, GoPro needs more than cost cutting or incremental subscription growth. It ultimately needs to demonstrate that it can stabilize the top line and build a profitable business around its brand. So far, the numbers are moving in the opposite direction.
Should Investors Avoid GPRO Stock?
At less than $1 per share, GoPro may look tempting as a turnaround or acquisition speculation. The company still owns a globally recognized brand, continues to develop new products and is actively reviewing strategic alternatives.
However, those potential catalysts need to be weighed against a very difficult financial reality.
Revenue and unit sales continue to decline, losses are widening and earnings expectations are moving sharply lower. At the same time, the company has increasingly relied on secured debt, convertible financing and warrants to maintain liquidity, creating additional risk for existing shareholders.
A strategic transaction could change the story, and GoPro's brand may ultimately have value to another company. But betting on an acquisition is very different from investing in a healthy underlying business.
Until there is clear evidence that sales have stabilized and the company can generate sustainable positive cash flow without continued reliance on potentially dilutive financing, GoPro remains a difficult stock to own.
Additional content:
NIKE Running Gains Momentum: Can It Offset Lifestyle Weakness?
NIKE, Inc.’s Running business has emerged as a key spot as its product-led turnaround gains momentum. The company is strengthening its Running portfolio by refreshing key franchises such as Pegasus, Vomero and Structure, with products designed to address specific runner needs, including cushioning, stability and energy return. The company is also broadening its lineup across various price points while accelerating the introduction of performance-focused products.
NIKE’s greater emphasis on performance-led innovation has accelerated Running growth, signaling strong consumer acceptance of its new product offerings. NKE has posted five consecutive quarters of double-digit Running growth, adding approximately $1 billion to the business in fiscal 2026. It has also captured around five percentage points of market share in statement Running footwear across North America and Western Europe, highlighting the growing impact of its renewed focus on performance-driven innovation and its ability to win back consumers.
The momentum is not limited to North America and Western Europe. Running also grew mid-single digits in Greater China in the fourth quarter, despite the broader market remaining under significant pressure. In China, NIKE said the Pegasus 42 launch performed well across roughly 2,000 elevated doors, while Running and Global Football were among the stronger areas of the business. In EMEA and APLA, Running also delivered double-digit growth, demonstrating that the category is gaining traction across multiple regions. The improvement is being driven by a sharper product strategy.
In short, NIKE’s Running business has emerged as a key spot in its turnaround, demonstrating that its renewed emphasis on sport, innovation and athlete-focused products is beginning to gain traction. The category’s strong performance provides early evidence that the company’s Sport Offense strategy is working, particularly when it combines consumer insights, differentiated product innovation and a sharper focus on performance needs.
However, the company’s Lifestyle business remains under pressure, particularly across established franchises such as Air Force 1, Dunk and Air Jordan. Sportswear and Jordan Streetwear continue to face challenges from weak sell-through and cautious consumer spending. While Running alone cannot fully offset the weakness in Lifestyle, its strong performance demonstrates that NIKE can reignite consumer demand through product innovation and performance-led offerings rather than relying primarily on established lifestyle franchises.
NKE’s Peers
lululemon athletica inc. is putting greater emphasis on product newness, technical performance and innovation. LULU has been specifically increasing the frequency and breadth of new styles while maintaining its premium positioning. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories into areas such as running, training, tennis, golf, hiking and footwear.
adidas AG’s innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance. ADDYY is strengthening key performance categories such as Running, Football and Training through new technologies and athlete-focused products, while simultaneously refreshing its Lifestyle portfolio.
NKE’S Price Performance, Valuation and Estimates
Shares of NIKE have lost 34.5% in the past six months compared with the industry’s decline of 29.9%.
From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 21.69X compared with the industry’s average of 19X.
The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 10.1% and 34.5%, respectively. The company’s EPS estimate for fiscal 2027 has been stable while that of fiscal 2028 has moved south in the past 30 days.
NIKE stock currently carries a Zacks Rank #3 (Hold).
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
GoPro, Inc. (GPRO): Free Stock Analysis Report
lululemon athletica inc. (LULU): Free Stock Analysis Report
Adidas AG (ADDYY): Free Stock Analysis Report
Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).