Invesco and DSV's have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – August 4, 2026 – Zacks Equity Research shares Invesco IVZ as the Bull of the Day and DSV’s DSDVY as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Costco Wholesale Corp. COST, Walmart Inc. WMT and BJ’s Wholesale Club Holdings, Inc. BJ.

Here is a synopsis of all five stocks:

Bull of the Day:

Asset management stocks have quietly emerged as one of the stronger areas of the financial sector this year, benefiting from rising equity markets, resilient investor demand for exchange-traded funds (ETFs), and improving assets under management (AUM).

One company capitalizing on these favorable trends is Invesco, which recently delivered an impressive second-quarter report, reinforcing the strength of its business.

Following its better-than-expected quarterly results, analysts have continued raising earnings estimates, helping Invesco stock earn a Zacks Rank #1 (Strong Buy).

With Invesco’s stock trading near a 52-week high of $31 a share, IVZ still offers an appealing combination of momentum and value after rising more than 15% year to date and now surging +100% in the last two years.

Invesco’s Q2 Results Showcase Improving Fundamentals

Invesco’s second quarter highlighted accelerating business momentum across several key metrics.

The asset manager generated record net long-term inflows of $45.1 billion, fueled primarily by continued strength in index products, private markets, and ETFs, including its flagship QQQ franchise. More impressive, total assets under management climbed to a record $2.5 trillion, up roughly 14% from the prior year.

Invesco reported Q2 adjusted EPS of $0.71, comfortably exceeding the Consensus Estimates of $0.67 and soaring 97% from $0.36 per share a year ago. This came as Q2 revenue increased 20% year over year to roughly $1.33 billion, which also edged expectations.

Furthermore, Invesco’s adjusted operating margin expanded to an impressive 37.5% as higher AUM translated into meaningful operating leverage.

Other highlights included a strengthened balance sheet with management reducing net debt by more than $450 million during the quarter while resuming share repurchases, highlighting confidence in the company’s cash generation capabilities.

CEO Andrew Schlossberg noted that Invesco is building meaningful momentum across its strategic priorities as clients increasingly utilize the firm’s broad investment platform and global distribution network.

EPS Revisions Are Moving Higher Across the Board

One of the most encouraging developments for investors has been the steady stream of upward earnings revisions following Invesco’s strong Q2 report.

As illustrated in the accompanying estimate revision chart below, analysts have become increasingly optimistic across both quarterly and annual forecasts over the last 60 days.

Q3 EPS estimates are still up 8.82%, from $0.68 to $0.74.

Q4 EPS estimates have now increased 12.86%, rising to $0.79 from $0.70.

Full-year fiscal 2026 EPS projections have improved nearly 9% to $2.81 (+38% growth from FY25).

FY27 EPS estimates have advanced more than 10% to $3.24, which would represent more than 15% growth from FY26.

Rather than being driven by a single quarter, analysts appear to be gaining confidence that Invesco’s improving fundamentals can continue over the coming year.

Reassuring for Invesco’s double-digit EPS growth trajectory is that annual revenue is now expected to increase 15% this year and is projected to rise another 9% in FY27 to $5.88 billion.

Invesco’s Enticing Value

Despite rallying to new 52-week highs, Invesco’s valuation remains surprisingly modest.

IVZ shares currently trade at 10X forward earnings, representing a meaningful discount to many diversified financial firms and the broader market, with the S&P 500 at 21X.

Invesco’s forward P/E multiple appears especially reasonable considering the company’s improving earnings trajectory, expanding margins, and strong net inflows.

For long-term investors, this combination of accelerating earnings expectations and a relatively inexpensive valuation creates an attractive risk-reward profile.

If earnings continue trending higher, IVZ’s multiple leaves room for potential expansion while still offering downside support from its reasonable valuation.

The icing on the cake is Invesco’s generous 2.91% annual dividend yield, which exceeds those offered by popular asset managers such as BlackRock and Goldman Sachs.

Plus, Invesco’s modest 34% payout ratio still suggests there is ample room for future dividend increases after the company has raised its dividend six times over the last five years, translating to a respectable annualized growth rate of 4.69%.

QQQ Continues to Benefit From the AI Investment Boom

As mentioned, another reason for optimism is Invesco’s ownership of the Invesco QQQ Trust, one of the largest and most recognizable ETFs in the world.

Tracking the Nasdaq-100 Index, QQQ provides investors with concentrated exposure to many of the market’s biggest technology and artificial intelligence leaders, including the Mag 7, Broadcom and AMD.

As investors have increasingly gravitated toward AI-driven growth stories, QQQ and other Invesco-owned ETFs such as QQQM have become the primary vehicles for gaining exposure to the sector.

That popularity has translated into significant investor inflows. During periods of strong market performance, QQQ has consistently ranked among the largest asset gatherers across the ETF industry. For example, ETF.com reported that the fund attracted $6.5 billion of net inflows in a single week during April 2026, while several other trading sessions over the past year generated more than $1 billion to $3 billion of new investor capital.

Growing assets under management are particularly valuable for an asset manager like Invesco because higher AUM generally translates into higher management fees with relatively little incremental cost.

As long as investor demand for AI, cloud computing, and other secular technology themes remains healthy, QQQ should keep serving as one of Invesco’s most important growth engines.

It’s noteworthy that the QQQ and QQQM are also sporting a Zacks Rank #1 (Strong Buy).

Summary & Conclusion

Invesco’s Q2 report demonstrated that the company is benefiting from both favorable market conditions and disciplined execution. Record inflows, expanding margins, stronger profitability, and continued balance sheet improvement have prompted analysts to steadily raise earnings expectations.

With IVZ trading near 52-week highs while still carrying a modest 10X forward earnings multiple, Invesco offers investors an appealing combination of earnings momentum, value, and improving fundamentals that could support additional gains in the months ahead.

Notably, in addition to its strong buy rating, IVZ has an overall “A” Zacks Style Scores grade for the combination of Value, Growth, and Momentum (VGM).

Bear of the Day:

The transportation and logistics market has experienced a volatile operating environment this year as geopolitical tensions, elevated energy prices, and uneven global trade activity have complicated execution across supply chains.

While many investors expected DSV’s acquisition of DB Schenker to accelerate earnings growth at a sharper pace, the shipping leader’s latest quarterly results suggest the integration is proving more challenging than anticipated.

More concerning, Wall Street has steadily lowered earnings expectations following its recent Q2 report, landing DSV’s stock a Zacks Rank #5 (Strong Sell). With analysts continuing to slash profit estimates and operational issues weighing on investor sentiment, the near-term outlook appears increasingly unfavorable.

DSV’s Q2 Earnings Miss Disappoints Investors

DSV’s Q2 report contained several encouraging headlines, including revenue growth and higher operating profit driven by the Schenker acquisition. However, investors focused on weaker-than-expected profitability and ongoing operational challenges that overshadowed those positives.

To that point, DSV’s Q2 sales spiked more than 100% year over year to $11.92 billion and comfortably surpassed estimates of $10.8 billion, spurred by another quarter of Schenker contributions and improving performance in its Air & Sea division.

That said, Q2 adjusted earnings of $1.13 per share noticeably missed expectations of $1.20 despite rising from EPS of $0.86 a year ago.

Adding concern to the mixed results was that management acknowledged that its Road division, which includes global land freight operations, performed below expectations due to operational issues in several key European markets.

Furthermore, although DSV narrowed its full-year EBIT guidance, the company stated that geopolitical uncertainty, elevated fuel costs, and continued integration risks remain meaningful headwinds through the remainder of the year.

DSV’s EPS Revisions Keep Moving Lower

Perhaps the biggest concern for investors is the unmistakably negative trend in earnings estimate revisions.

Over the past three months, analysts have consistently lowered their profit forecasts across every major reporting period.

As shown in the accompanying revision chart below:

Current-quarter EPS estimates have now fallen from $1.48 to $1.31 over the last 90 days (-11.48%).

Next-quarter estimates have declined from $1.78 to $1.59 (-10.67%).

Full-year fiscal 2026 EPS expectations have dropped from $5.23 to $4.75 (-9.17%).

FY27 EPS estimates have been reduced from $7.27 to $6.59 (-9.35%).

The breadth of these downward revisions suggests analysts are becoming increasingly cautious about DSV’s earnings power as integration challenges, softer freight markets, and execution risks continue to pressure profitability.

The Schenker Integration Still Carries Execution Risk

Last year’s acquisition of global logistics and supply chain solutions provider DB Schenker undoubtedly strengthens DSV’s long-term competitive position, but it also introduces meaningful execution risk in the near term.

Management expects billions in annual synergies by 2027, and integration remains on schedule across more than 60 countries. However, realizing those reductions in operating costs requires successfully integrating thousands of employees, harmonizing IT systems, optimizing transportation networks, and maintaining customer service throughout the process.

Keeping that in mind, the disappointing performance in DSV’s Road segment illustrates how difficult large-scale logistics integrations can become, particularly during periods of macroeconomic uncertainty.

DSV is Facing a Challenging Macro Environment

Aforementioned, DSV also faces several external headwinds that could keep weighing on results.

Global freight demand remains uneven, while higher bunker fuel and jet fuel prices have increased operating costs.

At the same time, geopolitical tensions, including the War in Iran, are disrupting global supply chains and creating uncertainty for multinational customers. Management specifically cited these factors as reasons for maintaining a cautious outlook despite narrowing its full-year EBIT guidance.

Bottom Line

DSV remains one of the world’s premier logistics companies with an attractive long-term strategic position following its transformational acquisition of DB Schenker. However, the near-term investment case has weakened considerably.

A recent earnings miss, operational challenges within the Road division, integration execution risk, and a pronounced trend of declining earnings estimate revisions all point to more downside risk for DSV’s stock.

For now, investors may want to remain on the sidelines until earnings estimate revisions start moving in the right direction and management demonstrates more consistent operational execution.

Additional content: Costco’s Renewal Trends Point to Lasting Customer Loyalty

Costco Wholesale Corp. continues to demonstrate exceptional member retention across its global network, showcasing sustained brand engagement and customer trust. At the close of the third quarter of fiscal 2026, the company reported a robust U.S. and Canada membership renewal rate of 92.2%, representing a 10-basis-point increase from the preceding quarter. Meanwhile, the worldwide renewal rate held steady at an impressive 89.7%.

These strong retention metrics highlight Costco’s effective management of changing member demographics. Management acknowledged that online sign-ups have historically renewed at slightly lower rates than warehouse enrollments, creating pressure on overall renewal metrics as digital adoption expands. However, the company said targeted digital communications and retention initiatives more than offset that headwind during the quarter, allowing renewal rates to stabilize despite the evolving member mix.

Membership engagement remains deep, reflected in the steady growth of premium tiers. Paid memberships increased 4.1% year over year to 82.9 million, executive memberships climbed 9.6% to 41.2 million, and membership income rose 10.7%, or 9.9% excluding foreign exchange. Executive members also accounted for 75% of total sales, underscoring the importance of Costco’s highest-value customers. The company also highlighted strong early adoption of executive memberships following the program’s launch in China.

Management also noted that executive membership growth reflected both upgrades by existing Gold Star members and a higher proportion of new members selecting the executive tier. These members typically shop more frequently and spend more than standard members. Together, stable renewal rates, improved retention among digitally acquired members and rising executive participation indicate that Costco’s membership base remains highly engaged.

How Walmart & BJ’s Wholesale Compare with Costco

Walmart Inc. is also seeing strong momentum in membership, reinforcing customer engagement across its ecosystem. In first-quarter fiscal 2027, Walmart reported a 17.4% increase in global membership fee revenues, while Walmart+ posted a record first-quarter high in net member additions. Management noted that Walmart+ members spend about four times more than non-members and make seven times more e-commerce visits, highlighting the program’s growing contribution to recurring revenues and customer loyalty.

BJ’s Wholesale Club Holdings, Inc. also continued to strengthen its membership business during first-quarter fiscal 2026. BJ’s Wholesale reported a 9.9% year-over-year increase in membership fee income to $132.4 million, supported by solid membership acquisition, retention and higher-tier membership penetration across both new and existing clubs. Management said BJ’s Wholesale remains focused on expanding its membership base while investing in growth, digital capabilities and club expansion to deepen long-term member engagement.

What the Latest Metrics Say About Costco

Costco has seen its shares tumble 6.1% over the past three months against the industry’s 0.6% rise.

From a valuation standpoint, Costco’s forward 12-month price-to-earnings ratio stands at 42.61, higher than the industry’s ratio of 31.43. However, it is trading below its 12-month median level of 45.94, indicating some moderation in valuation despite sustained investor confidence in the stock.

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.

Costco 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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Invesco and DSV’s have been highlighted as Zacks Bull and Bear of the Day

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