For Immediate Release
Chicago, IL – June 10, 2026 – Zacks Equity Research shares Centene Corporation CNC as the Bull of the Day and UFP Industries UFPI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla TSLA, NVIDIA NVDA and Rocket Lab RKLB.
Here is a synopsis of all five stocks:
Bull of the Day:
Centene Corporation, a Zacks Rank #1 (Strong Buy), has staged one of the more impressive turnarounds in the healthcare space over the past year.
After a difficult 2025 that saw the stock fall out of favor amid elevated medical costs, the managed care giant has come roaring back, supported by recovering margins, surging cash flow, and a powerful wave of upward earnings estimate revisions. The company is a leading provider of government-sponsored healthcare, with a dominant position in Medicaid and a rapidly expanding Medicare footprint.
The stock has rebounded sharply off its 2025 lows and now trades near its 52-week high on increasing volume. Shares continue to display relative strength as buying pressure accumulates in this resurgent market leader.
Centene is part of the Zacks Medical – HMOs industry group, which currently ranks in the top 10% out of approximately 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months, just as it has begun to in recent months:
Take note of the favorable characteristics for this group below. The industry's improving positioning has been driven by a positive earnings outlook for its constituent companies in aggregate, along with relative undervaluation — a powerful combination that should lead to higher prices in the future.
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 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
Centene operates as a diversified, multi-national healthcare enterprise that primarily serves under-insured and uninsured individuals through government-sponsored programs. The company operates through four segments — Medicaid, Medicare, Commercial, and Other — and ranks among the largest healthcare companies in the country, with approximately $191 billion in total projected revenues and a spot at No. 19 on the Fortune 500. It is also engaged in providing education and outreach programs that help members access quality, appropriate care.
After navigating a challenging 2025 marked by rising medical costs and a withdrawal of guidance that battered the stock, Centene has executed a methodical recovery. Management's relentless focus on Medicaid margin restoration, disciplined cost management, and rate adequacy is clearly bearing fruit, while the Medicare Advantage and prescription drug plan businesses have outperformed internal expectations.
The Texas Medicaid expansion has added a meaningful new growth vector, and the company has used its robust cash generation — $4.4 billion of operating cash flow in the most recent quarter — to fortify the balance sheet, reducing total debt by $1 billion in the first quarter alone. The consolidated health benefits ratio has been steadily improving, a key signal that the worst of the medical-cost pressure may be in the rearview mirror.
Earnings Trends and Future Estimates
What stands out is Centene's renewed ability to deliver eye-catching earnings surprises. The company most recently reported first-quarter 2026 results that blew past expectations, posting adjusted EPS of $3.37 — a figure that surpassed the Zacks Consensus Estimate by a remarkable 80.2% and climbed 16.2% from the year-ago period.
Revenues of $49.9 billion rose 7.1% year over year and topped the consensus mark by 5.2%. The company has now topped consensus revenue estimates in each of the past four quarters and exceeded EPS expectations in three of the last four. This track record aligns perfectly with the power of the Zacks Rank system, which prioritizes stocks showing upward earnings revisions.
On the heels of that beat, management raised its full-year 2026 adjusted EPS guidance to greater than $3.40, up from a prior floor of greater than $3.00, and lifted its total revenue outlook to a band of $187.5–$191.5 billion.
Analysts have responded enthusiastically: the Zacks Consensus Estimate for the current year has surged 15.28% over the past 60 days. That consensus now stands at $3.47 per share, reflecting an enormous 66.8% increase relative to the prior-year figure. Notably, the stock screens as deeply undervalued even after its rally, carrying a PEG ratio of just 0.51 versus the industry's 1.12 and a top Zacks Growth Style Score of A.
Let's Get Technical
Centene has transitioned from a falling knife in 2025 into one of the better recovery stories in the market today. After bottoming last year near $25, shares have more than doubled and now trade near their 52-week high. This is exactly the kind of stock we want to include in our portfolio — one that is trending well and receiving positive earnings estimate revisions.
Notice how shares now reside above upward-sloping 50-day (blue line) and 200-day (red line) moving averages, a hallmark of a healthy uptrend. The momentum has clearly built throughout 2026. With both improving fundamentals and a constructive technical picture, Centene appears 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, Centene has recently witnessed sharp upward revisions. As long as this trend remains intact (and CNC continues to deliver earnings beats), the stock will likely continue its bullish run.
Bottom Line
Backed by a leading industry group and a renewed history of earnings beats, it's not difficult to see why this turnaround story is a compelling investment. Currently, CNC carries a Zacks Rank #1 (Strong Buy), driven by powerful estimate momentum.
The combination of Medicaid margin recovery, Medicare outperformance, improving cash flow, and a discounted valuation should continue to provide a tailwind for the stock price. With the next earnings report expected in late July, robust fundamentals combined with a strengthening technical trend certainly justify adding shares to the mix. If you haven't already done so, be sure to put CNC on your watchlist.
Bear of the Day:
UFP Industries is engaged in the design, manufacture, and supply of wood and wood-alternative composite products in the United States and internationally. Headquartered in Grand Rapids, Michigan, the company operates through three primary segments — Retail Solutions, Packaging, and Construction — and is North America's largest converter of softwood lumber into value-added products.
The company markets a broad range of proprietary and branded products, including its Deckorators composite decking and ProWood treated lumber lines, serving retail home-improvement, industrial packaging, and residential and commercial construction end markets.
While UFP Industries built an enviable track record during the post-pandemic construction boom, the current environment has exposed meaningful vulnerabilities. Recent results reveal a business grappling with broad-based demand weakness, falling volumes across every segment, and accelerating margin compression — a difficult combination for a company so closely tied to the housing and construction cycle.
Elevated mortgage rates and macroeconomic uncertainty continue to weigh heavily on housing affordability and construction activity. Soft demand, deflationary pressure on lumber pricing, and intensifying competition have combined to squeeze both the top and bottom lines.
The pain has been remarkably broad-based: in the latest quarter, unit volumes fell in every segment, with the Retail Solutions business — the company's largest — absorbing the steepest declines, while profitability eroded across Packaging and Construction alike. With the construction backdrop unlikely to improve materially in the near term, future quarters may well show continued earnings pressure or the need for deeper price concessions, further compressing margins.
The Zacks Rundown
UFP Industries has been a notable laggard, with shares mired in a well-defined downtrend. A Zacks Rank #5 (Strong Sell), the stock has fallen sharply from its highs and is now hovering near 52-week lows, representing a compelling short opportunity.
Shares are part of the Zacks Building Products – Wood industry group, which currently ranks in the bottom 8% out of approximately 250 industries. Because this industry is ranked in the bottom half of all Zacks Ranked Industries, we expect it to underperform the market over the next 3 to 6 months, just as it has over the past year:
While individual stocks have the ability to outperform even when included in weak industries, their industry association serves as a headwind for any potential rallies. Stocks in this industry are also expected to post below-average earnings growth. With much better alternatives in the current market environment, this stock should be avoided.
Weak Foundation: Earnings Misses and Deteriorating Forecasts
Earnings misses have become a recurring theme for UFP Industries. The company most recently reported first-quarter 2026 adjusted earnings of $0.89 per share, which missed the Zacks Consensus Estimate of $1.15 by a wide 22.83% and fell sharply from $1.30 in the year-ago period.
The disappointment followed an even larger miss the prior quarter, when the company posted $0.70 against expectations of $1.03 — a negative surprise of 32.04%.
Strikingly, UFP Industries has failed to surpass consensus EPS estimates in each of the past four quarters, and it has likewise missed on the revenue line in all four. First-quarter revenues of $1.46 billion fell from $1.6 billion a year earlier and came in 4.79% below the consensus mark, with net income down roughly 35% and operating profit down more than 30% as unit volumes declined across Retail Solutions, Packaging, and Construction. Consistently missing expectations by such wide margins is a recipe for stock price underperformance.
The forward outlook reflects this deterioration. Analysts have been steadily marking down their forecasts, and Wall Street price targets have followed — with several firms cutting their targets in the wake of the latest report. The current Zacks Consensus Estimate for 2026 stands at $4.60 per share on roughly $6.2 billion in revenues for the fiscal year, figures that have drifted lower amid soft end-market demand. These are precisely the types of negative trends that the bears like to see.
Technical Outlook
UFPI stock has been steadily declining and has now established a well-defined downtrend. Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping down, with shares trading well below both. The stock now sits near its 52-week low and roughly 40% below its 52-week high.
The persistent, year-long descent has produced a classic "death cross," wherein the 50-day moving average crosses below the 200-day moving average — a bearish technical signal that often precedes further weakness. Shares would have to mount a serious move to the upside and show improving earnings estimate revisions to warrant taking any long positions in the stock.
Final Thoughts
As a company heavily levered to cyclical retail, packaging, and construction markets, UFP Industries is feeling the full brunt of weak demand and adverse pricing.
While management continues to pursue bolt-on acquisitions and a strategic shift toward higher-margin, value-added products such as its Surestone composite decking, these initiatives have not been enough to offset the broad cyclical downturn, and they lack the immediacy to reverse the negative earnings trajectory. In a tougher market, scale and balance-sheet strength help, but they do not insulate a commodity-linked converter from a demand air pocket across all of its end markets.
A deteriorating fundamental and technical backdrop show that this stock doesn't deserve a spot in the household portfolio right now. The fact that UFPI is included in one of the weaker industry groups adds yet another headwind to a long list of concerns. Falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock's downtrend.
With unfavorable Zacks Style Scores corroborating the bearish setup, potential investors may want to give this stock the cold shoulder, or perhaps consider including it as part of a short or hedge strategy.
Additional content:
SpaceX IPO: A Tesla-Like Opportunity or a $1.75 Trillion Trap?
SpaceX is preparing to go public at a valuation of roughly $1.75 trillion — making it one of the most anticipated IPOs in recent history. For investors, the question is familiar but the stakes are new. Are they buying into a business, or into a vision?
When Tesla went public in 2010, it was a loss-making electric vehicle (EV) maker with big ambitions but little proof it could achieve them. Few people could have imagined that the company would eventually become one of the world's most valuable businesses. Just last week, Musk noted that Tesla's market capitalization at its IPO was only a tiny fraction of what it is today. Currently, Tesla's market cap is more than $1.5 trillion. That's around a 1000-fold increase since its debut.
Tesla turned many early believers into millionaires and became one of the greatest wealth-creation stories in market history. As SpaceX prepares to enter the public markets, investors are asking if it's another Tesla moment, or if expectations are running too far ahead of reality.
SpaceX Is Not Tesla But Investors See Familiar Themes
In one important aspect, SpaceX's upcoming IPO looks nothing like Tesla's 2010 debut. When Tesla went public, EVs were still largely viewed as an experiment, and the company was a relatively small, loss-making automaker trying to prove its business model.
SpaceX, by contrast, is already a global leader in space launch services and one of the world's most valuable private companies.SpaceX had revenues of $18.7 billion in 2025, up 33% from the previous year. It is not just a rocket launch provider. Through Starlink, it is building a global communications network. Through Starship, it hopes to dramatically lower the cost of accessing space. Investors are also factoring in opportunities tied to artificial intelligence infrastructure following the merger with xAI. That puts SpaceX in conversations that extend beyond aerospace and communications, drawing comparisons with AI beneficiaries such as NVIDIA.
Yet comparisons to Tesla continue. Much like Tesla, SpaceX is built around Musk's ability to pursue ambitious goals that many once considered unrealistic. Tesla sought to transform transportation through electric vehicles, while SpaceX is aiming to reshape space access, global communications and potentially AI infrastructure.
More importantly, investors in both companies are being asked to look beyond what the businesses are today and focus on what they could become. Tesla's valuation has long reflected expectations tied to future technologies and markets. The same argument is now being made for SpaceX, as investors attempt to estimate the value of opportunities that may take years, or even decades, to fully materialize.
Investors are not debating whether SpaceX has a real business. The debate centers on how much larger that business can become. That is a far different starting point from where Tesla stood in 2010.
Can SpaceX Deliver Tesla-Like Returns?
SpaceX is targeting an IPO price of $135 per share, implying a valuation of roughly $1.75 trillion. At that level, the company would instantly rank among the world's most valuable publicly traded businesses.
This is where the comparison with Tesla becomes more complicated. Tesla generated extraordinary returns not only because the company executed well, but also because investors were able to buy in when expectations were far lower. Much of Tesla's future success was not reflected in its valuation at the time.
SpaceX is entering public markets under very different circumstances. Its proposed valuation already appears to reflect leadership in commercial launch services, the long-term growth potential of Starlink, expanding government and defense relationships, AI-related opportunities and the possibility of a much larger space economy in the future.
Supporters argue that such a premium is justified. SpaceX is no longer just a launch provider. Some analysts view it as a combination of a telecom company, a defense contractor, a communications infrastructure provider and an AI platform. This unique mix makes it difficult to value using traditional financial models. This also helps explain why SpaceX is difficult to compare with publicly traded peers such as Rocket Lab.
Meanwhile, skeptics argue that investors may already be paying for years, if not decades, of future success. Ambitious projects such as Starship, AI infrastructure expansion and broader space-based services still require significant investment and execution.
Final Thoughts
Like Tesla, SpaceX is led by Elon Musk, operates in enormous markets, and asks investors to think in decades rather than quarters. But the biggest risk is SpaceX's valuation. Few would question SpaceX's long-term potential. The real question is whether a company approaching a $2 trillion valuation can still deliver the kind of outsized returns that made Tesla one of the greatest wealth-creation stories in market history.
For investors hoping to find the next Tesla, the irony is that SpaceX may be arriving too late. At $1.75 trillion, SpaceX is already priced as though it has won. It could become one of the world's most important companies and still fail to deliver the kind of returns that made Tesla a once-in-a-generation investment.
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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UFP Industries, Inc. (UFPI): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
Rocket Lab Corporation (RKLB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).