Amphenol and LGI Homes have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – January 27, 2026 – Zacks Equity Research shares Amphenol APH as the Bull of the Day and LGI Homes LGIH as the Bear of the Day. In addition, Zacks Equity Research provides analysis on — Kinder Morgan, Inc. KMI, Enterprise Products Partners L.P. EPD and Enbridge Inc. ENB.Here is a synopsis of all three stocks:Bull of the Day:There is ongoing debate about how transformative artificial intelligence will ultimately prove to be. Questions around monetization, productivity gains, and long-term economic impact remain open. What is not debatable, however, is the scale of capital already being deployed to support AI workloads. Hyperscalers and enterprise customers alike are committing unprecedented sums to data center infrastructure, and that investment is flowing directly into the physical components required to build, power, and connect those facilities.The sheer scale of today’s data center buildout is difficult to overstate. Facilities that once consumed tens of megawatts are now being deployed at 300 to 500 megawatts per site, with multiple hyperscalers actively expanding campuses toward one to two gigawatts of total capacity, power levels comparable to those of large cities.Just as striking as the size is the pace. Projects are scaling so quickly that sites commissioned only months ago are already being leapfrogged by new builds, as operators race to bring capacity online. Each incremental megawatt added requires exponentially more high-speed connectivity, cabling, and interconnect hardware. With an estimated ~33% share in key AI-driven datacom connectivity segments, Amphenol sits directly at the center of this infrastructure arms race.But beyond AI infrastructure, Amphenol is also exposed to a second, powerful macro tailwind: sustained growth in global defense spending. Across aerospace, military, and harsh-environment applications, the company has built a dominant position supplying mission-critical interconnect systems where reliability and performance are non-negotiable. This diversification provides an additional layer of earnings durability and reduces reliance on any single end market.Not surprisingly, Amphenol carries a top Zacks rating and continues to exhibit strong price momentum. Importantly, even after significant share price appreciation, the stock still trades at a valuation that remains reasonable relative to its growth outlook. With multiple secular drivers reinforcing one another, Amphenol appears well positioned to deliver continued earnings expansion going forward.Amphenol Shares Gain on Earnings UpgradesGrowth, upward earnings revisions, and a still-reasonable valuation underpin Amphenol’s current, and increasingly durable investment appeal. The stock currently enjoys a Zacks Rank #1 (Strong Buy) rating, reflecting a steady stream of earnings upgrades that has persisted for nearly two years, a signal of improving fundamentals and analysts underestimation of future growth.Revenue growth is projected to accelerate sharply in the near term, with the top line expected to rise 49.4% this year before moderating to 12.4% next year. Even those estimates may prove conservative, because of those underestimations and duration of Amphenol’s growth in recent cycles. Earnings growth is even more compelling, with EPS forecast to climb 75.1% this year and 27.4% next year, driven by operating leverage and sustained demand across datacom and defense end markets.At roughly 35.9x forward earnings, Amphenol does not especially cheap. However, valuation looks far more attractive when viewed through a growth adjusted lens. With EPS expected to compound at approximately 39.1% annually over the next three to five years, the stock trades at a PEG ratio below 1, suggesting a discount to growth based on the metric.Amphenol Stock on the Verge of Another BreakoutAmphenol shares have trended steadily higher over the past two years, punctuated by periods of consolidation followed by decisive breakouts. After clearing another consolidation range at the start of this year, the stock is now forming a tidy bullish continuation pattern, suggesting the broader uptrend remains intact.A sustained move above the $156 level would likely attract renewed buying interest and could set the stage for another leg higher. Conversely, a failure to hold above $150 may indicate the need for additional consolidation before the next advance. In that scenario, even with strong underlying fundamentals, more patient investors may find a better risk-reward entry point following a pullback or base building phase.Should Investors Buy Shares in APH?Amphenol offers a rare combination of powerful secular tailwinds, accelerating earnings growth, and favorable technical momentum. The company is directly leveraged to massive AI infrastructure spending while also benefiting from sustained strength in defense and aerospace markets. With earnings estimates still moving higher, valuation remaining reasonable and the stock approaching another potential technical breakout, Amphenol appears well positioned for continued upside despite its strong run over the last couple of years.Bear of the Day:Despite the broader stock market’s strength and a persistently resilient US economy, the housing sector has been a notable laggard over the past year. Elevated interest rates and an ongoing correction from the excesses of the post-COVID housing boom have materially cooled demand across many regional markets, weighing on both volumes and affordability.LGI Homes has fared particularly poorly in this environment, underperforming even the already weak homebuilding group. The company’s exposure to first time buyers leaves it especially vulnerable to affordability pressures, as higher mortgage rates and home prices disproportionately impact entry level demand. As a result, both the share price and earnings outlook have deteriorated, with sales growth trending lower over the past several years, pointing to a materially negative outlook.Until affordability pressures ease meaningfully or demand from first time buyers shows clear signs of recovery, LGI Homes remains exposed to an unfavorable environment. With sales trends deteriorating, earnings under pressure, and the housing sector still facing headwinds, investors may be better served seeking opportunities elsewhere in areas of the market.LGI Homes Shares Decline Amid Continued DowngradesFalling earnings estimates, declining sales, and sustained share price weakness have weighed heavily on LGI Homes shareholders. The stock currently carries a Zacks Rank #5 (Strong Sell) rating, reflecting ongoing downward earnings revisions that have now endured for nearly two years.Sales have been in a clear downtrend for the past four years, and analysts expect conditions to worsen further in the year ahead. Revenue is projected to decline another 21%, extending a contraction that has already been severe. After peaking near $3 billion, annual revenue is now expected to fall to approximately $1.74 billion, underscoring the depth and persistence of the slowdown facing the business.Tactical Outlook for LGIH StockLGI Homes shares have been in a pronounced downtrend over the past two years. While the stock appeared to be forming a potential bottom in the fall of last year, that rally proved short-lived, with prices selling off sharply into the start of this year. A subsequent rebound in early January again stalled at the same resistance level seen in December, reinforcing the significance of that ceiling.This repeated failure at resistance is a negative technical signal and leaves the stock vulnerable to a retest of lower support. Shares may attract buyers near the $43 level, but even that support remains uncertain as rising interest rates continue to pressure housing related equities and dampen investor appetite for the group.Should Investors Avoid LGIH Stock?With earnings estimates still moving lower, sales trends deteriorating, and the stock locked in a persistent downtrend, LGI Homes offers limited near-term appeal. Until affordability improves and demand from first time buyers shows clear signs of recovery, the risk-reward profile remains unfavorable, suggesting investors are better served looking elsewhere for more attractive opportunities.Additional content:3 Midstream Stocks Positioned to Withstand Energy Price SwingsThe overall energy sector is highly vulnerable to crude price volatility as prices of crude oil and refined products are driven by factors largely outside their control, including global supply-demand balances, OPEC+ production decisions, geopolitical tensions, weather events and macroeconomic conditions. Sharp movements in prices can materially affect earnings and profit margins, particularly for upstream players whose earnings are directly proportional to crude prices.In contrast, the downstream sector's earnings are inversely proportional to crude prices, while integrated companies are naturally hedged against volatility due to their presence across the entire value chain, from production to refining. However, unlike most energy companies, Kinder Morgan, Inc., Enterprise Products Partners L.P. and Enbridge Inc. are not highly vulnerable to commodity prices.Midstream Operations: Insulated From Commodity Price SwingsDue to the very nature of business, the midstream players’ revenues have limited exposure to crude price volatility. Midstream players generate stable and predictable cash flow amid commodity price volatility since the shipper’s book spaces in the pipeline network and storage assets on a long-term contract. Moreover, for some midstream players, shippers pay for spaces booked even though not utilized, thereby generating predictable cash flow.3 Midstream Stocks to Gain: KMI, EPD, ENBKinder Morgan is the largest transporter of petroleum products in North America and owns approximately 79,000 miles of pipeline network, more than 700 Bcf of working natural gas storage capacity and 139 terminals. KMI generates stable fee-based revenues from take-or-pay contracts.Enterprise Products, like KMI, also generates stable fee-based revenues from take-or-pay contracts, thus insulating its business model from crude price volatility. With over 50,000 miles of pipeline network, more than 300 million barrels of liquids storage facilities and other infrastructure, EPD can serve products and services to multiple markets.Enbridge transports around 30% of oil and liquids that are produced in North America through its crude oil pipeline networks. ENB owns and operates natural gas pipelines, storage and processing facilities. ENB, like EPD and KMI, generates stable fee-based revenues by contracting spaces in its assets to shippers.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enterprise Products Partners L.P. (EPD): Free Stock Analysis Report Amphenol Corporation (APH): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report LGI Homes, Inc. (LGIH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks