FormFactor and Copart have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – March 25, 2026 – Zacks Equity Research shares FormFactor FORM as the Bull of the Day and Copart CPRT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Coca-Cola Company KO, PepsiCo Inc. PEP and Monster Beverage Corp. MNST.

Here is a synopsis of all five stocks.

Bull of the Day:

FormFactor, a Zacks Rank #1 (Strong Buy), is a leading provider of semiconductor gear. The company offers electrical and optical test and measurement technologies spanning the full semiconductor product lifecycle. FormFactor is benefiting from robust growth in high-bandwidth memory (HBM) driven by the rapid adoption of generative AI and high-performance computing.

The stock is displaying relative outperformance and has been making a series of 52-week highs. The price movement is a sign of strength as we head further into the new year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.

FormFactor is part of the Zacks Electronics – Semiconductors industry group, which currently ranks in the top 35% 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 throughout the past year.

Stocks in this group are also expected to experience above average earnings growth, signifying a powerful foundation that should lead to higher prices. 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 Description

Livermore, CA-based FormFactor designs, manufactures, and sells probe cards, analytical probes, probe stations, thermal systems, and cryogenic systems. The company offers these and related services in the U.S. and internationally.

Probe cards help FormFactor to serve customers’ design layout and electrical test requirements by testing semiconductor device types such as systems on a chip (SoC), microprocessors, network and digital signal processing integrated circuits (ICs), dynamic random-access memory (DRAM), and NAND flash memory.

FormFactor offers more than 50 different analytical probe models for engineering and production testing. As silicon photonics matures and moves to high-volume production, FormFactor expects its leadership position in combined electrical and optical testing to illuminate a new growth path in the future.

Earlier this month, the company announced a major product launch — the Flatiron Dilution Refrigerator — a cryogenic system designed for quantum research and quantum hardware testing. Featuring a horizontal benchtop design, the innovation allows for faster experimental setup and fewer disassembly requirements. The system is suitable for quantum processors, superconducting qubits and advanced materials research.

The company boasts a significant customer base including the likes of Intel, Samsung, Micron Technology, SK Hynix and Taiwan Semiconductor. Its clientele also includes universities and research institutions.

Earnings Trends and Future Estimates

FormFactor has established an impressive reporting history, surpassing earnings estimates in three of the past four quarters. The company most recently delivered fourth-quarter earnings back in February of 46 cents per share, which marked a 31.4% surprise over the $0.35/share consensus estimate.

The integrated circuits diagnostic company delivered a trailing four-quarter average surprise of 18.6%. Consistently beating earnings estimates is a recipe for success.

Analysts covering FORM are in agreement and have raised full-year EPS estimates by 17.65% in the past 60 days. The Zacks Consensus Estimate now stands at $1.80/share, reflecting potential growth of nearly 40% relative to last year.

Let’s Get Technical

This market leader has seen its stock advance nearly 90% already this year, all while the general market struggles to gain traction. 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.

Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs in 2026. With both strong fundamental and technical indicators, FORM 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, FormFactor has recently witnessed positive revisions. As long as this trend remains intact (and FORM continues to deliver earnings beats), the stock will likely continue its bullish run.

Bottom Line

Backed by a leading industry group and history of earnings beats, it’s not difficult to see why FORM stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.

FormFactor continues to benefit from increased usage of semiconductors with expanding infrastructure and enterprise spending. Increasing deployment of 5G applications in mobility and automotive end-markets represent major prospects.

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 FORM on your shortlist.

Bear of the Day:

Copart is a provider of online auctions and vehicle remarketing services. The company enables the processing and selling of vehicles over the internet through its virtual bidding, auction-style sales technology to vehicle sellers, insurance companies, banks, dealers, and vehicle rental companies.

Copart offers a variety of services such as online seller access, salvage estimation, end-of-life vehicle processing, vehicle inspection, title processing and procurement. The company permits the selling of vehicles through CashForCars.com. In addition, its Copart Recycling service allows the public to purchase parts from salvaged vehicles, while its Copart 360 online technology platform is used for posting vehicle images.

Key challenges remain for Copart in 2026. The company faces sustained pressure from rising operating costs, as higher expenses and ongoing investments in employees, technology, and infrastructure weigh on near-term margins.

Continued spending to support growth initiatives may further constrain profitability. Over time, improvements in vehicle safety systems and autonomous driving technology could reduce accident frequency, limiting salvage supply and slowing inventory growth.

The Zacks Rundown

A Zacks Rank #5 (Strong Sell) stock, Copart is a component of the Zacks Auction and Valuation Services industry group, which currently ranks in the bottom 16% 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 so far this 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.

CPRT shares have widely underperformed the market over the past year. Despite the absence of participation in the latest bull market, shares remain relatively overvalued. The lack of a sustainable growth path signals further caution ahead.

Recent Earnings Miss & Deteriorating Outlook

Copart broke a streak of positive earnings surprises when it missed fiscal second-quarter estimates back in February. The company posted earnings of 36 cents per share during the quarter, missing the Zacks Consensus EPS estimate by 10%.

Copart also missed on the top line as sales fell nearly 4% year-over-year. This triggered cuts to forward guidance, contributing to fading earnings momentum and a lower Zacks Rank. Consistently falling short of projections is a recipe for underperformance, and CPRT is no exception.

The Dallas-based company has been on the receiving end of negative earnings estimate revisions as of late. Looking into the current fiscal year, analysts cut estimates by 4.82% in the past 60 days. The Zacks Consensus Estimate is now $1.58 per share, translating to a 0.63% decline relative to the prior year.

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 Outlook

As illustrated below, CPRT stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below downward-sloping 50-day (blue line) and 200-day (red line) moving averages – another good sign for the bears.

CPRT 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. The lack of buying pressure is a sign that this stock should be avoided. 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 40% in the past year alone.

Final Thoughts

A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that CPRT stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.

Revenue concentration among a relatively small group of large sellers adds risk, as the loss of key agreements or less favorable terms could materially impact results. Intense competition for vehicle supply, contracts, and storage capacity may also restrict growth and pressure returns.

A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend. Bulls will want to steer clear of CPRT until the situation shows major signs of improvement.

Additional content:

Coca Cola Faces Margin Pressure: Can Pricing Power Hold?

The Coca-Cola Company shows resilience in its pricing strategy, but rising cost pressures and softer consumer conditions could test margins in 2026. Management highlighted that fourth-quarter 2025 price/mix growth appeared muted at 1%, yet underlying pricing actions were closer to 4%, with an unfavorable mix masking the benefit. In 2025, pricing remained a key contributor to roughly 5% revenue growth, reinforcing Coca-Cola’s ability to pass through costs when needed.

However, the company expects a more balanced growth profile ahead, with pricing and volume contributing roughly equally. Management noted that as inflation moderates and consumer demand stabilizes, the reliance on pricing alone will ease, implying less margin cushion from price increases. At the same time, volume recovery in key markets, such as India and China, along with navigating tax-related headwinds in Mexico, will be critical to sustaining profitability.

Cost dynamics also remain in focus. While management expects commodity volatility and global trade shifts, it believes the overall impact on the cost basket will be “manageable.” Coca-Cola plans to continue investing ahead of the curve in brands, capabilities and market execution, which could weigh on near-term margins despite steady top-line growth guidance of 4-5%.

Coca-Cola still sees pricing power, supported by its brand strength, revenue growth management tools and flexible price-pack architecture. These levers help offset taxes, inflation and shifting consumer demand while protecting value share. With macro pressures lingering and pricing expected to normalize, sustaining margin expansion will increasingly depend on volume recovery and operational efficiency rather than price alone.

KO’s Peers: Pricing Dynamics of PEP & MNST

As PepsiCo Inc. and Monster Beverage Corp. navigate moderating inflation and shifting consumer demand, their ability to balance pricing actions with volume growth will play a key role in shaping margin trends alongside Coca-Cola.

PepsiCo emphasizes that pricing remains a key driver of organic revenue growth, though the pace is moderating as inflation eases and consumers grow more value-conscious. Management highlighted continued productivity initiatives and revenue growth management to offset higher input and logistics costs. While investments in brands and capabilities may pressure near-term margins, PepsiCo expects disciplined pricing, mix improvement and cost savings to support steady margin performance over time.

Monster Beverage highlighted that pricing and promotional discipline, alongside favorable geographic and product mix, supported gross margin improvement despite cost inflation. Management noted easing freight and input costs, which helped profitability, while strategic pricing actions across international markets contributed to revenue growth. The company continues investing in innovation and distribution expansion, which may create near-term expense pressure, but expects the margin performance to benefit from scale efficiencies and stabilizing commodity costs.

Zacks Rundown for Coca-Cola

KO shares have risen 7.1% in the past three months compared with the industry’s growth of 2.4%.

From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 22.86X, higher than the industry’s 18.04X.

The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 8% and 7.3%, respectively. Earnings estimates for both years have moved up by a penny in the past 30 days.

Coca-Cola 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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CocaCola Company (The) (KO): Free Stock Analysis Report

PepsiCo, Inc. (PEP): Free Stock Analysis Report

FormFactor, Inc. (FORM): Free Stock Analysis Report

Copart, Inc. (CPRT): Free Stock Analysis Report

Monster Beverage Corporation (MNST): Free Stock Analysis Report

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