For Immediate Release
Chicago, IL – July 13, 2026 – Zacks Equity Research shares Cisco Systems CSCO as the Bull of the Day and Planet Fitness PLNT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Micron Technology, Inc.’s MU, Seagate Technology Holdings plc STX and Western Digital Corp. WDC.
Here is a synopsis of all five stocks:
Bull of the Day:
With an industry-leading networking portfolio, AI-native security solutions, and operating systems, Cisco Systems is well-positioned to provide the critical infrastructure for the AI era.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS revisions remaining robust across all timeframes.
Cisco Sees Record Demand
Cisco shares have been red-hot in 2026 on the back of favorable quarterly results, up nearly 60% and seeing a nice pop following its latest quarterly release. The company posted a double-beat relative to our consensus expectations, with both EPS and sales seeing rock-solid growth on the back of a favorable demand environment.
Sales of $15.8 billion reflected a record, also exceeding the high end of its prior guidance. Cisco noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the AI infrastructure buildout.
Sales revisions have followed a similarly bullish path, with the above-mentioned quarterly results in mid-May reflecting an inflection point for expectations.
Keep in mind that the company also pays a solid, growing dividend, currently sporting a 2.6% five-year annualized dividend growth rate. Shares currently yield 1.4% annually, with the stock overall reflecting a nice blend of tech growth and income-generating abilities.
Dividend payouts have remained on a steady uptrend over the past decade, as shown below. Please note that the final value is currently calculated on a trailing twelve-month basis, as its FY26 has not yet ended.
Bottom Line
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The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Cisco Systems would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Planet Fitness is a fitness club franchisor and operator focused on the low-cost, high-volume segment of the gym industry. The company targets first-time and occasional gym users with a simple offering, extended operating hours, and a “Judgment Free Zone” brand positioning.
The stock is a current Zacks Rank #5 (Strong Sell), reflective of bearish EPS revisions.
Planet Fitness Tumbles Post-Earnings
Planet Fitness shares have struggled mightily in 2026 so far, losing more than 50% in value and widely underperforming relative to many peers in the same Zacks Industry. Its recent set of quarterly results, despite beating our consensus expectations, really disappointed investors, with shares plummeting post-earnings.
Specifically, the company cut its same-club sales growth outlook and lowered its earnings guidance, helping to explain the downward revisions and weak price action that followed. Planet Fitness also paused its planned national Black Card price increase, which led to further frustration among investors given the previous expectation of stronger margins through the higher prices.
Bottom Line
Negative earnings estimate revisions stemming from a guidance cut paint a challenging picture for the company’s shares in the near term.
Planet Fitness is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Beyond Micron: 2 AI Infrastructure Stocks with Massive Upside Ahead
Micron Technology, Inc.’s shares have delivered phenomenal returns of more than 600% over the past year, and the company surpassed the $1 trillion market capitalization mark in late May 2026. The company has moved beyond its traditional classification as a cyclical memory chip maker and has become an essential supplier in the AI infrastructure ecosystem.
Unprecedented demand for Micron’s cutting-edge high-bandwidth memory chips used in artificial intelligence (AI) servers, along with a strategic partnership with Anthropic, including a multi-year storage supply agreement, has fueled investors’ optimism and driven its shares upward.
However, Micron’s shares recently experienced volatility as investors raised concerns that the memory cycle could be approaching a peak. The stock also pulled back after the company’s fiscal third-quarter 2026 earnings, as investors took profits following a substantial rally ahead of earnings.
While Micron’s pullback isn’t due to any meaningful deterioration in its AI business fundamentals, the stock’s latest volatility highlights the importance of diversification within the AI infrastructure framework. Investors looking to capture similar long-term growth trends should consider other beneficiaries of the AI buildout.
Two companies that deserve attention are Seagate Technology Holdings plc and Western Digital Corp., as they have delivered impressive gains of 504.7% and 774% over the past year. Let’s examine the key catalysts that could support further upside in these AI infrastructure stocks –
Seagate’s AI Storage Boom Drives Growth and Upside
Fueled by growing data-center storage demand, improving margins and robust cash flows, Seagate is well-poised for continued growth. These tailwinds could translate into additional gains in Seagate’s share price, positioning it as a potential long-term AI infrastructure winner similar to Micron’s rise.
Seagate expects revenues of around $3.45 billion, plus or minus $100 million, for the fiscal fourth quarter of 2026, up from $3.11 billion generated in the fiscal third quarter of 2026, according to investors.seagate.com. The sustained revenue growth momentum reflects strong customer demand for its high-capacity storage solutions.
Seagate’s strong 47% non-GAAP gross margin in the fiscal third quarter highlighted improved operational efficiency and expanding profitability. At the same time, its $953 million in free cash flow underscored the strength of its core business. As a result, the company’s expected earnings growth rate for the current year is 84.3%. The Zacks Consensus Estimate of $14.93 for STX’s earnings per share (EPS) is up 47.5% year over year.
Western Digital’s AI Storage Boom Could Drive More Upside
Western Digital is well-positioned to accelerate growth by increasing the sales of higher-value enterprise HDDs amid strong pricing conditions. For the fiscal third quarter of 2026, Western Digital’s revenues totaled $3.34 billion, up 45% from a year earlier, according to the company’s press release.
Moreover, the company expects revenues for the fiscal fourth quarter of 2026 to be even stronger, at $3.65 billion, plus or minus $100 million. The strong outlook reflects resilient demand for AI infrastructure, as cloud and enterprise customers expand high-capacity storage to support AI growth.
The company’s improving gross margin has further strengthened its financial position, enabling more investment in research and development, stronger earnings growth, and supporting long-term share price gain. For the fiscal third quarter, Western Digital’s non-GAAP gross margin increased to 50.5% from 40.1% a year ago. Additionally, the company expects non-GAAP gross margin to increase to 51-52% in the fiscal fourth quarter of 2026.
Consequently, the company’s expected earnings growth rate for the current year is 104.1%. The Zacks Consensus Estimate of $10.06 for WDC’s EPS is up 54.8% year over year.
Both Seagate and Western Digital have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
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