Kforce and Trex have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – January 2, 2026 – Zacks Equity Research shares Kforce Inc. KFRC as the Bull of the Day and Trex Company TREX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Trade Desk TTD, The Blackstone Group BX, and Salesforce CRM.Here is a synopsis of all five stocks.Bull of the Day:Kforce Inc. has seen declining earnings for 3 years as the job market slowed. But is the worst over for this Zacks Rank #1 (Strong Buy)?Kforce specializes in technology, finance and accounting and other professional staffing services. It curates teams of technical experts who deliver solutions custom-tailored to each client’s needs.Every year, about 18,000 experts work with Fortune 500 and other leading companies.Kforce Beat in the Third Quarter of 2025On Nov 3, 2025, Kforce reported third quarter results and beat the Zacks Consensus by $0.06. Earnings were $0.63 versus the consensus of $0.57.It was the first earnings surprise after two misses in a row.Revenue decreased 5.9% year-over-year to $332.6 million. It also decreased 0.5% quarter-over-quarter.However, while business has been tough the last several years, it saw better-than-expected results in both its Technology and Finance and Accounting businesses in the quarter.Additionally, it appears that Technology may have bottomed, as consultants on assignment hit a low early in the third quarter and improved throughout the rest of the quarter.The Finance and Accounting business also appears to have stabilized and grew 6.9% sequentially.Analysts are Bullish on Kforce Heading Into 2026Kforce said its momentum in the third quarter had carried over to the fourth quarter. Is the worst of the staffing slowdown over?Two estimates have been revised higher for both 2025 and 2026 in the last 60 days.The 2025 Zacks Consensus is now looking for $2.13 up from $2.06. That’s still a decline of 20.5% as the company made $2.68 last year.It will be the third year in a row of an earnings decline.However, 2026 finally turns the corner. The Zacks Consensus is looking for $2.28, which would be earnings growth of 7%.2027 also looks bullish on the price and consensus chart.Is Kforce a Steal?Shares of Kforce have tanked in 2025, hitting a new 5-year low.But is it now a deal?Kforce trades with a forward price-to-earnings (P/E) of just 14.7. A P/E ratio under 15 usually indicates a company is a value.It also has a price-to-sales (P/S) ratio of just 0.4. A P/S ratio under 1.0 can mean a stock is cheap. Investors are getting each $1 of sales for just $0.40.Kforce is also shareholder friendly. In October, the Board expanded the stock repurchase plan to $100 million.It also pays a dividend, currently paying $1.56 annually, which is yielding 5%.The staffing industry has seen tough times in the last few years. It’s currently in the bottom 5% of all Zacks Rank industries.But if you’re looking for a turnaround story in staffing, Kforce should be on your short list.Bear of the Day:Trex Company is not expecting a revenue turnaround in 2025 as remodeling demand remains tepid. Analysts are forecasting this Zacks Rank #5 (Strong Sell) to see earnings decline again in 2026.Trex makes wood-alternative decking and railing as well as high performance, low maintenance outdoor living products such as pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture. It sells through more than 6,700 retail outlets across six continents.Trex Missed on Earnings in the Third Quarter of 2025On Nov 4, 2025, Trex reported its third quarter 2025 earnings and missed on earnings. It reported $0.51 versus the Zacks Consensus of $0.56.It was the first earnings miss in three years. Trex has an excellent earnings surprise track record. It has only missed twice in the last five years.Sales rose 22.1% to $285 million on the back of strong railing sales, which are tracking to be up double digits on the year. However, decking continues to struggle.“While we saw signs of improvement in Repair and Remodel spending as the season began, the second half of the season reflected the weaker market conditions that the industry has experienced in the past two years,” said Bryan Fairbanks, President and CEO.“This resulted in lower-than-anticipated third quarter sales, and we expect this trend to continue in the seasonally slower fourth quarter,” he added.Analysts Slash Trex’s Full Year 2025 and 2026 Earnings EstimatesWith such a bearish outlook, it’s not a surprise that the analysts cut their estimates for both 2025 and 2026.Seven estimates were cut in the last 60 days for 2025, pushing the Zacks Consensus down to $1.83 from $2.21. That’s an earnings decline of 12.4%.Eight estimates were also cut in the prior 2 months for 2026. The Zacks Consensus fell to $1.66 from $2.51 in that time. That’s another 9% decline.These are steep, and sudden, earnings cuts. This is what it looks like on the price and consensus chart.You can see why it has the Zacks Rank of #5, which is a Strong Sell. No analyst has raised their estimate in the last 60 days.Trex Shares Sink in 2025Trex shares plunged after the company gave its lower guidance in Nov 2025.Is it a deal?Trex now trades with a forward price-to-earnings (P/E) ratio of 19.4. A P/E ratio under 15 usually indicates value. Trex is not that cheap at 19.4x.With strong free cash flows, Trex’s board has authorized a $50 million share repurchase program. It doesn’t pay dividends.Investors interested in the home remodeling industry might want to wait on the sidelines to start 2026 to see if there is any recovery. For now, market conditions remain challenging.   Additional content:3 Beaten-Down Stocks That Could Rebound in 2026As I look ahead to 2026 and search for compelling investment opportunities, one productive place to focus is on stocks that lagged during an otherwise strong year for U.S. equities. The broader market notched its third consecutive double-digit gain, yet beneath the surface, performance was far from uniform. Several high-quality companies were left behind despite maintaining solid business models.In many cases, the underperformance had less to do with deteriorating business conditions and more to do with valuation resets, sentiment shifts, or capital rotating toward more crowded themes. Those dynamics can create opportunities, particularly when durable franchises fall out of favor and trade down to more attractive risk-reward levels.The Trade Desk, The Blackstone Group, and Salesforce fit that profile. Each is a market leader in its respective industry, each faced headwinds that weighed on share prices this year, and each could be positioned for a meaningful rebound as conditions evolve in 2026.The Trade Desk Shares Near All-Time Low ValuationThe Trade Desk was once one of the market’s premier high-growth stocks, but shares endured a brutal year, falling nearly 70% from their highs. I’ve long found the business compelling, yet for years the valuation was untenable. That dynamic has now changed. As concerns around AI disruption swept through the software sector, many companies were indiscriminately repriced lower. In the process, TTD stock has finally traded down to a valuation that is compelling.The core business remains intact. The Trade Desk operates a leading independent demand-side platform (DSP) that allows advertisers to buy digital ad inventory across the open internet, connected TV, streaming, mobile, audio, and display, using data-driven targeting and real-time optimization. Its independence from the major “walled gardens” is a key differentiator, particularly as advertisers seek transparency, control, and cross-platform reach. Unified ID 2.0, TTD’s identity framework, further strengthens its position as privacy rules evolve and third-party cookies fade.While growth has moderated from the 30–50% annual revenue expansion seen in earlier years, the outlook remains attractive. Revenue is expected to grow at a high teens pace this year and next, while earnings are projected to compound at roughly 20.4% annually over the next three to five years, reflecting improving operating leverage.Against that backdrop, valuation now looks compelling. Shares trade at approximately 21.4x forward earnings, a stark contrast to the premium multiples investors once paid for the business. For a category leader with durable competitive advantages, a strong balance sheet, and solid long-term growth prospects, that multiple suggests much of the bad news is already priced in.The Blackstone Group Remains a Stalwart Financial StockBlackstone is another high-quality franchise whose share price was pressured this year by a narrative that appears to have overshot reality. Private credit has been one of Blackstone’s most important growth engines in recent years, but concerns around the space intensified after the collapse of First Brands Group, an event tied to alleged fraud and more than $10 billion in liabilities. That episode sparked fears of broader stress across private credit markets.While the failure was alarming and highlighted real risks within an emerging asset class, evidence so far suggests it was largely isolated. There has been no meaningful surge in private credit defaults, and underwriting standards among the largest, most sophisticated managers remain intact. Despite that, sentiment turned sharply negative, and leaders across the space, including Blackstone, were sold aggressively.Fundamentally, the business looks as strong as ever. Blackstone remains the dominant player in alternative investments, with unmatched scale across private equity, real estate, infrastructure, hedge funds, and private credit. Its diversified platform, long-duration capital base, and global reach provide resilience across cycles and position the firm to capture fee growth as institutional allocations to alternatives continue to rise.Valuation has also become more reasonable. At roughly 29x forward earnings, BX is not especially cheap, but it now trades below industry peers and is only modestly above its five-year median multiple of 25.6x. Meanwhile, fundamentals remain robust: revenue is projected to grow nearly 26% next year, with earnings expected to compound at 22.1% annually over the next three to five years. The stock also carries a Zacks Rank #2 (Buy), reflecting improving analyst confidence.Taken together, Blackstone’s recent underperformance appears driven more by narrative risk than by deterioration in the underlying business. For investors looking toward 2026, BX offers exposure to durable secular growth in alternatives at a valuation that is far more balanced than it had been at the start of the year.Salesforce Stock Lagged Tech, But Outlook is StrongSalesforce is another category-leading business that lagged this year as investor sentiment shifted, particularly around how companies would monetize AI. As capital flowed toward more direct AI infrastructure plays, Salesforce was temporarily viewed as a secondary beneficiary. That framing overlooks how deeply embedded Salesforce’s products are in day-to-day enterprise workflows, and how much optionality AI introduces across its platform.Salesforce sits on one of the richest datasets in enterprise software, spanning sales, marketing, service, and customer engagement. As AI becomes more tightly integrated into business processes, tools like Einstein, Data Cloud, and Agentforce have the potential to enhance productivity, automation, and decision-making across its customer base. Those benefits may be incremental rather than explosive, but they are durable and scalable, particularly at Salesforce’s size.As the stock has sold off, valuation has reset to far more attractive levels. Salesforce now trades at roughly 22.6x forward earnings, while consensus forecasts still call for about 15% annual earnings growth over the next three to five years. That combination represents a solid growth profile for a company with Salesforce’s market leadership, recurring revenue base, and improving margin structure.Furthermore, the broader digital transformation of business remains one of the most powerful secular trends in the global economy, and Salesforce remains at its center as the world’s leading CRM and SaaS platform. Wall Street expectations appear to have become overly cautious this year. The company has beaten earnings estimates in all four quarterly reports, most recently by 14%, signaling continued execution strength. Technically, the stock also appears to be forming a large, early-stage base, suggesting conditions may be aligning for a potential breakout as sentiment stabilizes.Should Investors Buy Shares in BX, CRM and TTD?All three stocks share a common setup heading into 2026: high-quality businesses, reset valuations, and intact long-term growth drivers. This year’s underperformance appears driven more by sentiment, rotation, and narrative shifts than by fundamental deterioration. While near-term volatility is always possible, the combination of durable franchises, improving earnings visibility, and more reasonable valuations creates a favorable risk-reward profile for investors willing to look past recent weakness and position for a rebound next year.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 >>Free: Instant Access to Zacks' Market-Crushing StrategiesSince 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 tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>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. 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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.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 Blackstone Inc. (BX): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report Kforce, Inc. (KFRC): Free Stock Analysis Report Trex Company, Inc. (TREX): Free Stock Analysis Report The Trade Desk (TTD): 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