Zeta Global, Spirit Airlines And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the First Trust Small Cap Core AlphaDEX ETF (FYX), a passively managed exchange traded fund launched on 05/08/2007.

The fund is sponsored by First Trust Advisors. It has amassed assets over $1.01 billion, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.

Why Small Cap Blend

Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.60%, making it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 1.30%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 22.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.

Looking at individual holdings, Adma Biologics, Inc. (ADMA) accounts for about 0.52% of total assets, followed by Zeta Global Holdings Corp. (class A) (ZETA) and Powell Industries, Inc. (POWL).

The top 10 holdings account for about 4.38% of total assets under management.

Performance and Risk

FYX seeks to match the performance of the Nasdaq AlphaDEX Small Cap Core Index before fees and expenses. The NASDAQ AlphaDEX Small Cap Core Index is an enhanced index which employs the AlphaDEX stock selection methodology to select stocks from the NASDAQ US 700 Small Cap Index.

The ETF has gained about 20.25% so far this year and it's up approximately 41.72% in the last one year (as of 11/12/2024). In the past 52-week period, it has traded between $77.90 and $109.09.

The ETF has a beta of 1.23 and standard deviation of 22.68% for the trailing three-year period, making it a medium risk choice in the space. With about 527 holdings, it effectively diversifies company-specific risk.

Alternatives

First Trust Small Cap Core AlphaDEX ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FYX is a reasonable option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $79.55 billion in assets, iShares Core S&P Small-Cap ETF has $93.84 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Zacks Investment Research

Shares of Grab Holdings Limited rose sharply in today's pre-market trading after the company posted better-than-expected results for its third quarter and raised its 2024 outlook.

The company reported quarterly earnings of 1 cent per share, compared to consensus estimates of a loss of 1 cent per share.

Grab shares surged 12.3% to $4.92 in the pre-market trading session.

Here are some other stocks moving in pre-market trading.

Gainers

• XBP Europe Holdings, Inc. gained 79.3% to $1.63 in pre-market trading after Reaktr announced the availability of SecAi on Oracle Cloud Infrastructure and in the Oracle Cloud Marketplace.
• BTC Digital Ltd. rose 48% to $3.73 in pre-market trading after gaining around 36% on Monday.
• MSP Recovery, Inc. gained 45.6% to $0.1845 in pre-market trading. LifeWallet announced $5.9 million in comprehensive settlements, beta tests new clearinghouse solution to tackle medicare waste.
• LogicMark, Inc. shares rose 31.7% to $0.1752 in pre-market trading after gaining 8% on Monday.
• Bridger Aerospace Group Holdings, Inc. gained 28.6% to $4.50 in pre-market trading after the company reported better-than-expected third-quarter revenue results and raised its FY24 revenue guidance.
• MultiMetaVerse Holdings Limited climbed 24.4% to $0.5200 in pre-market trading. MultiMetaVerse recently provided updates on its joint venture with Zhenghe.
• Taoping Inc. gained 13.7% to $0.4561 in pre-market trading.
• Luminar Technologies, Inc. rose 13.7% to $1.16 in pre-market trading after the company provided a business update for the third quarter after the bell on Monday. Luminar said it continues to meet all key deliverables for the Volvo EX90 production ramp. The lidar company said it shipped more product in the third quarter than it did in the past three quarters combined.
• Taysha Gene Therapies, Inc. gained 11.6% to $1.82 in pre-market trading. Taysha Gene Therapies will report its financial results for the third quarter ended Sept. 30, on Wednesday, Nov. 13.

Losers

• Neurogene Inc. shares tumbled 32.9% to $47.99 in pre-market trading after the company reported interim efficacy data from first four low-dose pediatric participants in NGN-401 gene therapy clinical trial for Rett syndrome
• 1847 Holdings LLC shares fell 30.7% to $1.38 in pre-market trading after jumping 727% on Monday.
• Destiny Tech100 Inc. declined 21.3% to $33.40 in pre-market trading after gaining 17% on Monday.
• Signing Day Sports, Inc. shares fell 19.8% to $0.2000 in pre-market trading after gaining 35% on Monday.
• Agora, Inc. fell 13.8% to $4.32 in pre-market trading. Agora will release its financial results for the third quarter ended Sept. 30 after the closing bell on Nov. 25.
• CERo Therapeutics Holdings, Inc. dipped 13.3% to $0.17 in pre-market trading. CERo Therapeutics shares jumped 180% on Monday after the company announced the presentation of preclinical data demonstrating the capability of CER-1236 to kill ovarian cancer cells in preclinical models
• Matinas BioPharma Holdings, Inc. fell 12.7% to $0.7850 in pre-market trading after surging over 29% on Monday.
• Oragenics, Inc. fell 10.7% to $0.3320 in today's pre-market trading.
• Bionomics Limited shares dipped 10.5% to $0.32 in pre-market trading after falling 9% on Monday.
• Zeta Global Holdings Corp. fell 9.8% to $33.15 in pre-market trading following third-quarter results.

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• Jim Cramer: This Tech Stock Can ‘Go To 160,’ Recommends Buying Domino’s Pizza

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Zeta Global Holdings (ZETA) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this cloud-based marketing technology company would post earnings of $0.10 per share when it actually produced earnings of $0.13, delivering a surprise of 30%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Zeta, which belongs to the Zacks Technology Services industry, posted revenues of $268.3 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.16%. This compares to year-ago revenues of $188.98 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Zeta shares have added about 303.4% since the beginning of the year versus the S&P 500's gain of 25.7%.

What's Next for Zeta?

While Zeta has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Zeta: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $266.8 million in revenues for the coming quarter and $0.57 on $946.91 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, First Advantage (FA), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 12.

This provider of background screening services is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of -10.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

First Advantage's revenues are expected to be $203.19 million, up 1.4% from the year-ago quarter.

Zacks Investment Research

Beyond Air, Inc. (XAIR) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.51 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 6.67%. A quarter ago, it was expected that this company would post a loss of $0.29 per share when it actually produced a loss of $0.27, delivering a surprise of 6.90%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Beyond Air, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $0.8 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 32.66%. This compares to year-ago revenues of $0.24 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Beyond Air shares have lost about 75.8% since the beginning of the year versus the S&P 500's gain of 25.7%.

What's Next for Beyond Air?

While Beyond Air has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Beyond Air: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.28 on $2.55 million in revenues for the coming quarter and -$1.03 on $8.57 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Sangamo Therapeutics (SGMO), is yet to report results for the quarter ended September 2024. The results are expected to be released on November 12.

This drug developer is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +79.4%. The consensus EPS estimate for the quarter has been revised 16.7% lower over the last 30 days to the current level.

Sangamo Therapeutics' revenues are expected to be $26.55 million, up 182.5% from the year-ago quarter.

Zacks Investment Research