Track market-moving stories before they get noisy

Key Takeaways PPL is advancing clean energy through partnerships in carbon-free generation and energy storage. LG&E and KU partnered with X-energy to evaluate Xe-100 small modular reactors in Kentucky. PPL's shares rose 3.3% in the past month, topping the electric power industry's 2.2% gain. PPL Corporation (PPL - Free Report) is advancing its clean energy strategy through partnerships focused on carbon-free generation and energy storage. Collaborations involving advanced nuclear technology and pumped-storage hydropower support rising electricity demand, strengthen grid reliability and create long-term growth opportunities, while advancing decarbonization objectives.

Recently, PPL's regulated utilities, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities (KU) Company, partnered with X-energy Inc. (XE) to evaluate the deployment of Xe-100 small modular reactors (SMR) in Kentucky to support rising electricity demand with reliable, long-term clean energy. Nuclear power could help PPL meet this demand while maintaining reliability and supporting decarbonization goals.

LG&E and KU are also collaborating with Rye Development to explore the 266 megawatt Lewis Ridge Pumped Storage Project. The project is still under evaluation and would not begin operating until around 2031. If approved, the project could enhance grid reliability, support renewable energy integration and create a future investment opportunity that expands PPL's regulated asset base.

For PPL, this collaboration represents a strategic step toward diversifying its generation portfolio with advanced nuclear technology, enhancing long-term energy reliability. If feasibility studies prove successful, SMRs could provide a reliable, carbon-free baseload power source, positioning the utility to capitalize on growing electricity demand, driven by industrial expansion and data-center development.

Diversified Generation Sources Strengthen Growth ProspectsA diversified generation portfolio strengthens long-term growth prospects by enhancing grid reliability and reducing dependence on any single source. It also supports rising electricity demand and provides greater operational flexibility amid evolving energy market dynamics.

Duke Energy Corporation (DUK - Free Report) benefits from a diversified electricity generation portfolio, with natural gas and fuel oil contributing 33.5% of output, followed by nuclear at 27.5%, coal at 14.5%, and hydroelectric and solar at 2%.

NextEra Energy, Inc. (NEE - Free Report) derives nearly 54% of its electricity generation from renewable energy sources. The company maintains a diversified generation portfolio, with natural gas accounting for 34% of output, nuclear energy 8% and other sources 1%.

PPL’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates a year-over-year increase of 7.73% and 8.13%, respectively.

Image Source: Zacks Investment Research

Debt to CapitalPPL's debt-to-capital ratio currently stands at 57.40%, lower than the electric power industry’s 60.97%.

Image Source: Zacks Investment Research

PPL’s Stock Price PerformanceIn the past month, the company’s shares have risen 3.3% compared with the industry’s 2.2% growth.

Image Source: Zacks Investment Research

PPL’s Zacks Rank

Key Takeaways Neogen climbed on strong Food Safety performance and raised fiscal 2026 revenue guidance.NEOG expanded its portfolio with new testing products and advanced integration of 3M's Food Safety business. Neogen faces inflation, higher freight costs and ended Q3 fiscal 2026 with $793 million in debt. Neogen Corporation (NEOG - Free Report) has witnessed strong momentum over the past year. Shares of the company have risen 101.1%, outperforming the industry’s 30.4% decline. The S&P 500 composite has increased 22.5% during the same time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.

Neogen develops and markets food and animal safety products. The company’s Food Safety Division markets culture media and diagnostic test kits to detect foodborne bacteria, natural toxins, food allergens, drug residues, plant diseases and sanitation concerns. 

The Animal Safety division provides veterinary instruments, pharmaceuticals, vaccines, topicals, diagnostic products, rodenticides, cleaners, disinfectants, insecticides and genomics testing services for the worldwide animal safety market. 

Factors Favoring NEOG’s Share Price GrowthNeogen’s share price is trending upward, prompted by its strong Food Safety segment’s quarterly performance. In the third quarter of fiscal 2026, revenues totaled $157.6 million, with core revenue growth of 4% being relatively in line with existing market growth rates. Performance was driven by continued strength in indicator testing and culture media products, along with solid growth in pathogen test kits within the bacteria and general sanitation category.

Investors are also focused on the company’s research and development efforts. In late 2025, the company introduced Neogen MPNTray, a new extension of its Colitag Water Testing System, designed for water testing laboratories and municipalities. Other key launches include the Listeria Right Now molecular detection assay, Igenity BCHF and MDA2 Quantitative Salmonella (MDA2QSAL96).

Additionally, Neogen’s 2022 merger with 3M’s Food Safety business is expected to generate significant long-term value for shareholders of the combined company. Neogen has made significant progress in integrating the former 3M Food Safety business, navigating through a complex process amid execution and macroeconomic challenges. The transaction also added 3M’s flagship indicator testing brand, Petrifilm, which is now part of Neogen Culture Media.

Given these positive developments, the company raised its fiscal 2026 revenue guidance to $857-$860 million from $845-$855 million.

Factors That May Offset NEOG’s GainsNeogen’s operating results have been pressured by input cost inflation, including higher raw material expenses. These are further compounded by supplier shifts linked to global tariff changes. 

Amid geopolitical tensions involving Iran, Neogen is seeing more tangible pressure in global logistics and freight, with disruptions around key global transit routes, such as the Suez Canal, and the impact of higher energy prices on transportation rates. It is experiencing freight and transportation cost increases in the high single-digit to low double-digit range, equating to approximately $1.5 million per quarter in incremental costs at current rates.

Image Source: Zacks Investment Research

From a solvency standpoint, Neogen exited the third quarter of fiscal 2026 with cash and cash equivalents of $159.9 million and a relatively high total outstanding debt of $793 million.

A Look at NEOG’s EstimatesThe Zacks Consensus Estimate for fiscal 2026 EPS has remained unchanged at 29 cents in the past 30 days.

The company has an estimated long-term EPS growth rate of 10% compared with the industry’s 12.5%. 

Stocks to ConsiderSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Integra LifeSciences (IART - Free Report) and Phibro Animal Health (PAHC - Free Report) . 

Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.

GMED carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.

Key Takeaways AEO posted 10% revenue growth as Aerie delivered 34% sales and 25% comparable sales growth.AEO's Aerie surpassed $2 billion in trailing 12-month revenue with broad-based category strength.AEO expects Aerie's comparable sales growth in the high-teens to low 20% range for the fiscal second quarter. American Eagle Outfitters, Inc. (AEO - Free Report) delivered a strong first-quarter fiscal 2026 performance, with Aerie remaining the primary growth driver, delivering exceptional results across both sales channels and profitability. The company’s revenues increased 10% year over year to $1.2 billion, and operating income reached $28 million, exceeding management’s guidance. Total Aerie sales increased 34%, while comparable sales rose 25%, reflecting broad-based growth across channels and reinforcing the brand’s continued momentum within the company’s portfolio.

Aerie surpassed the $2 billion milestone in trailing 12-month revenue, reflecting years of disciplined execution, sustained brand building and deep customer engagement. In the first quarter of fiscal 2026, both the Aerie and OFFLINE brands generated strong customer response, supported by compelling products, impactful marketing and well-aligned sales channels.

Aerie delivered broad-based strength across key categories, led by a 45% comparable sales increase in apparel. Management also credited its head-to-toe merchandising strategy across intimates, sleepwear and apparel for simplifying customers’ outfit choices while increasing basket size and average order value, reinforcing the brand’s repeatable growth model.
The company continued to strengthen its commercial and brand strategy by replacing brand-wide promotions with a more disciplined, higher-margin approach centered on targeted promotions, always-on pricing and marketing investments to attract and retain high-value customers.

At the same time, American Eagle enhanced Aerie’s brand visibility through its 100% Aerie Real campaign featuring Pamela Anderson, reinforcing the brand’s commitment to inclusivity, authenticity and transparency while deepening customer engagement. Looking ahead, Aerie is projected to maintain momentum with comparable sales growth in the high-teens to low 20% range in the fiscal second quarter of 2026.

Aerie’s sustained performance underscores its evolution into a powerful long-term value creator for American Eagle. With a scalable business model and strong brand resonance, the company appears well-positioned to deliver consistent earnings growth and strengthen its competitive position over time.

The Zacks Rundown for AEOAEO’s shares have surged 87.6% in the past year compared with the industry’s growth of 10.7%. AEO carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

From a valuation standpoint, AEO trades at a forward price-to-earnings ratio of 9.91X, lower than the industry’s average 15.14X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AEO’s current and next fiscal year earnings implies a year-over-year growth of 18% and 7.5%, respectively.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.

Urban Outfitters, Inc. (URBN - Free Report) offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2 (Buy).

 The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.6% and 10.5%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.

Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets, and distributes consumer fashion accessories in the United States, Europe, Asia, and internationally. At present, FOSL carries a Zacks Rank of 2.

The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings indicates growth of 87.6% from the year-ago figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.

Key Takeaways EG's net investment income delivered a 27% CAGR from 2020 to 2025, reflecting sustained portfolio growth. NII rose 15.5% year over year in first-quarter 2026, driven by fixed income and alternative investments. Growing insurance float, higher reinvestment yields, and disciplined portfolio management support earnings. Everest Group, Ltd. (EG - Free Report) has become one of the major beneficiaries of the higher interest rate environment, with net investment income (NII) serving as an increasingly important contributor to earnings alongside its insurance and reinsurance underwriting operations.

NII has become an increasingly valuable component of Everest Group's earnings profile. The combination of a growing insurance float, disciplined investment management, and a higher-yield investment environment strengthens the company's ability to generate consistent profits, complementing its underwriting performance and supporting long-term shareholder value creation.

A significant portion of the investment portfolio consists of fixed income securities, and smaller portions consist of equity securities and other investments, such as limited partnerships and other alternative investments. The metric should continue to gain from an increase in limited partnership income, higher income from fixed maturity investments, an increase in income from other alternative investments, higher income from short-term investments, and cash.

The insurer’s investment income has shown continuous improvement. The metric has delivered a five-year (2020-2025) CAGR of 27%. 
NII increased 15.5% year over year for the three months ended March 31, 2026, largely driven by strong alternative asset returns, fixed income portfolio growth, and strong limited partnership returns.

EG's net investment income is primarily driven by the growth of its investment portfolio, higher reinvestment yields in a higher-rate environment, expanding insurance float, and disciplined portfolio management.

NII significantly boosts top-line growth and overall profitability for EG, complementing the company's underwriting operations. While insurance premiums are the primary source of revenue, NII provides a recurring stream of earnings generated from investing the company's insurance float and shareholders' capital.

What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.

The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities. Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure.

EG’s Price PerformanceShares of EG have gained 1.8% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

EG’s UndervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 0.89, lower than the industry average of 2.78. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for EGThe Zacks Consensus Estimate for EG’s second-quarter 2026 and third-quarter 2026 EPS has moved down 0.1% and 0.2%, respectively, in the past 30 days. The same for full-year 2026 EPS has moved up 0.9% in the past 30 days.

Image Source: Zacks Investment Research

Key Takeaways GlobalFoundries is expanding silicon photonics and SiGe capacity amid strong AI and data center demand.UMC is seeing stronger specialty technology demand while advancing 12-nanometer work with Intel.Both companies expect higher 2026 sales and earnings as foundry demand continues to improve. The global semiconductor foundry industry continues to benefit from rising demand for chips used in artificial intelligence, automotive electronics, industrial automation and connected devices. As chipmakers increasingly outsource manufacturing, foundries with advanced technologies, diverse customer bases and expanding production capacity are well positioned to capture long-term growth.

Against this backdrop, GLOBALFOUNDRIES Inc. (GFS - Free Report) and United Microelectronics Corporation (UMC - Free Report) stand out as two prominent players. While GlobalFoundries focuses on specialized process technologies and strategic manufacturing partnerships, UMC leverages its mature-node expertise and cost-efficient operations to serve a broad range of customers. Which semiconductor foundry stock offers the better investment opportunity today? Let's compare the two.

The Case for GFSGlobalFoundries is strengthening its long-term growth profile by capitalizing on rising demand from artificial intelligence and data center applications. The company reported robust double-digit growth in its Communications Infrastructure & Data Center and Automotive businesses during the first quarter, while highlighting strong momentum in silicon photonics and silicon-germanium (SiGe) technologies. Management noted that demand for its SiGe solutions has exceeded available capacity well into 2027, prompting capacity expansion. The company also expects its silicon photonics revenues to roughly double in 2026 and target a run rate exceeding $1 billion by the end of 2028, supported by increasing customer wins and new optical networking products.

Another positive is GlobalFoundries' improving profitability and expanding customer relationships. The company posted a record first-quarter gross margin of about 29%, up more than five percentage points year over year, reflecting a richer product mix, cost improvements and contributions from higher-margin technology services. Design wins climbed 50% from the prior-year period, while strategic partnerships with companies such as Renesas and Apple reinforce its position in automotive, industrial and U.S.-based semiconductor manufacturing. Management also emphasized that its diversified manufacturing footprint across the United States, Germany and Singapore is attracting customers seeking resilient supply chains amid ongoing geopolitical uncertainty.

Despite these strengths, GlobalFoundries continues to face headwinds in its Smart Mobile Devices business, which remains the largest revenue contributor. Management expects the segment to decline at a high-single-digit rate in 2026 as the broader smartphone market weakens, although it believes the business will outperform overall industry trends. The company also warned that geopolitical disruptions could raise supply-chain costs, with additional spending on critical materials expected to weigh on margins through the remainder of the year. These challenges suggest that sustained growth in AI, automotive and communications markets will be essential to offset weakness in mobile demand.

The Case for UMCUnited Microelectronics is benefiting from improving demand across its mature-node foundry business, supported by rising utilization and strong momentum in specialty technologies. During the first quarter, wafer shipments increased sequentially, lifting utilization to 79%, while 22-nanometer revenues reached another record and accounted for 14% of total sales. Management expects more than 50 customers to complete tape-outs on its 22-nanometer platform by the end of 2026, spanning applications such as display driver ICs, networking chips and microcontrollers. Looking ahead, UMC guided for high-single-digit shipment growth and low-single-digit ASP improvement in the second quarter, reflecting healthy demand across communications, consumer, industrial and AI-related markets.

UMC is also investing to expand its long-term growth opportunities beyond traditional mature-node manufacturing. The company continues to advance its 12-nanometer collaboration with Intel, which is expected to provide customers with U.S.-based manufacturing and pave the way for commercial production in 2027. At the same time, management highlighted growing traction in emerging businesses such as silicon photonics and advanced packaging, with more than 10 customer engagements and over 35 expected tape-outs in 2026. These initiatives, combined with disciplined pricing actions planned for the second half of the year and a strategy focused on higher-value specialty technologies, should strengthen UMC's competitive position over time.

On the downside, UMC's profitability continues to face cost pressures despite improving demand. Management cautioned that higher depreciation from the Singapore fab expansion, along with rising raw material, energy and logistics costs, is expected to offset much of the benefit from stronger utilization in 2026. While the company plans to implement wafer price increases in the second half, executives acknowledged that margin expansion is likely to remain constrained until depreciation expenses begin to ease, making sustained earnings growth dependent on continued demand recovery and successful execution of its higher-value technology roadmap.

How Does the Zacks Consensus Estimate Compare for GFS & UMC?The Zacks Consensus Estimate for GFS’ 2026 sales and earnings per share implies a 7.3% and 9.9%, respectively, year-over-year increase. Moreover, in the past 60 days, earnings estimates have witnessed upward revisions.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for UMC’s 2026 sales and EPS implies year-over-year growth of 10.9% and 32.1%, respectively. Earnings estimates for 2026 have increased in the past 60 days.

Image Source: Zacks Investment Research

Price Performance & ValuationGFS stock has gained 140.2% in the past six months compared with its sector’s growth of 49.5%. Conversely, UMC’s shares have surged 247.9% in the same time frame.

Price Performance
Image Source: Zacks Investment Research

GFS is trading at a forward 12-month price-to-earnings ratio of 48.92X, above its median of 32.37X over the last year. UMC’s forward earnings multiple sits at 36.23X, above its median of 18.79X over the same time frame.

P/E (F12M)
Image Source: Zacks Investment Research

Which Stock to Buy Now?Both companies are well positioned to benefit from long-term semiconductor demand, but UMC appears to have the stronger investment case at this stage. The company is seeing broad-based improvement across core businesses, healthy momentum in the specialty technology portfolio and encouraging progress in emerging areas such as silicon photonics, advanced packaging and its collaboration with Intel.

In addition, analysts have become increasingly optimistic about UMC's earnings outlook, while it is expected to deliver faster growth than GlobalFoundries. Although both stocks trade at premium valuations after strong rallies, UMC's stronger earnings trajectory, improving demand environment and expanding technology roadmap give it an edge. This makes it the more compelling semiconductor foundry stock to buy now.

UMC currently has a Zacks Rank #2 (Buy), whereas GFS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PWR is expanding beyond construction to support utilities across engineering, manufacturing and supply chains.PWR plans to invest $500-$700 million to expand transformer capacity and manufacturing footprint.Quanta ended Q1 with a record $48.5 billion backlog, strengthening multiyear revenue visibility. Quanta Services, Inc. (PWR - Free Report) is increasingly aligning its business with one of the largest infrastructure opportunities in North America as utilities modernize aging power grids to meet rising electricity demand. The expansion of artificial intelligence, data centers, advanced manufacturing and electrification is placing greater pressure on transmission networks, making grid upgrades a long-term investment priority. This creates a favorable backdrop for companies with the expertise and scale to deliver complex infrastructure projects.

Grid modernization is becoming a key growth driver for Quanta because it has expanded well beyond traditional construction services. PWR now supports customers across engineering, procurement, construction, manufacturing and supply-chain solutions, allowing utilities to execute larger and more complex capital programs with greater certainty. The company is also working alongside customers much earlier in the planning process, strengthening its role in multiyear infrastructure investments.

Quanta is reinforcing this position through targeted manufacturing investments. The company plans to invest $500-$700 million over the next several years to double the power transformer manufacturing capacity while nearly doubling its off-site manufacturing, fabrication and logistics footprint to approximately 6.7 million square feet. These investments are designed to reduce equipment constraints, improve project execution and accelerate grid expansion as transmission demand grows.

The strategy is already translating into greater project visibility. Quanta ended the first quarter with a record backlog of $48.5 billion, up from $35.3 billion a year ago, including a 12-month backlog of $28.2 billion, up 45.4%, reinforcing strong multiyear revenue visibility. With utilities expected to invest heavily in transmission infrastructure for years to come, grid modernization has the potential to become one of Quanta's most durable long-term growth drivers.

How Does Quanta Compare With Infrastructure Peers?Quanta has established a leading position in North America's power infrastructure market, benefiting from growing investments in grid modernization, transmission expansion and electrification. As investors assess whether the company can sustain the long-term growth, comparisons with EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) highlight its differentiated exposure to the evolving utility infrastructure landscape.

EMCOR is also benefiting from robust demand across electrical and mechanical construction, supported by data centers, manufacturing, health care and institutional projects. The company ended the first quarter with remaining performance obligations of $15.62 billion, reflecting strong project visibility. However, its growth remains more closely tied to building construction and facility-related services than utility transmission infrastructure.

MasTec is a closer peer, with exposure to power delivery, telecom, clean energy, pipeline and data center infrastructure. The company reported a record backlog of $20.3 billion and continues to benefit from investments in grid reliability, transmission expansion and AI-driven electricity demand. However, Quanta's integrated solutions platform, manufacturing investments and larger $48.5 billion backlog position it to capture a broader share of North America's multiyear grid modernization opportunity.

PWR’s Price Performance, Valuation & EstimatesPWR stock has surged 70.2% in the year-to-date (“YTD”) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.

PWR YTD Share Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 47.53X, well above the industry’s 32.03X, as shown below.

PWR Valuation
Image Source: Zacks Investment Research

Quanta’s earnings estimates for 2026 and 2027 have decreased in the past 30 days. However, the revised estimates for 2026 and 2027 imply year-over-year growth of 30.5% and 17.3%, respectively.

Image Source: Zacks Investment Research

PWR’s Zacks RankQuanta currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways The Standard Commercial Lines segment generated 71% of total revenues and 79% of net premiums written in 2025.Expansion into new states, including Kansas in 2025, supports premium growth and broader market presence.Higher new business, pricing, renewal exposure and retention continue to drive growth in the segment. Selective Insurance Group, Inc. (SIGI - Free Report) has a strong presence in the standard commercial lines market, focusing primarily on small and middle-market businesses. SIGI sells the Standard Commercial Lines property and casualty insurance products and services to commercial enterprises, typically businesses, non-profit organizations, and local government agencies, primarily in 36 states and the District of Columbia.

Selective Insurance continues to expand its Standard Commercial Lines footprint with the goal of a near national presence, while maintaining an agent-driven distribution model. Since 2017, SIGI has added 14 states to the Standard Commercial Lines footprint, including Kansas in 2025. In the first quarter of 2026, these expansion states produced $125 million in premiums, representing approximately 9% of total direct premiums written and 1% marginal total premium growth. SIGI expects to write new business in Montana and Wyoming by the end of 2026, pending regulatory approvals.

Standard Commercial Lines is the core revenue driver for Selective Insurance Group, making it the company's primary earnings engine. It generates the majority of the company's premium revenue, supplies the investment float that supports investment income, and serves as the foundation of the long-term growth strategy. This segment accounted for 71% of total revenues and 79% of total net premiums written in 2025. Higher new business, renewal pure price increases, exposure growth on renewal policies, and higher retention should continue to drive premiums in the segment.

Selective Insurance's standard commercial lines strategy centers on profitable underwriting rather than market-share expansion. By concentrating on well-understood industries, maintaining strong independent agency partnerships and exercising disciplined pricing, SIGI has consistently generated underwriting results that compare favorably with many peers across the commercial property and casualty insurance industry.

What About Its Peers?Axis Capital Holdings Limited (AXS - Free Report) , a global specialty underwriter, has a strategic focus on specialty products, including professional liability, cyber insurance, marine and aviation. AXS has been witnessing an increase in its top line over a considerable period of time on the back of higher net premiums. Its well-performing Insurance segment largely contributes to improving premiums. It continues to boost shareholder value through stock buybacks and dividend hikes.

Palomar Holdings, Inc. (PLMR - Free Report) has been displaying a good track record of net written premiums due to increased volume of policies written across the lines of business, driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of its products’ geographic and distribution footprint, and new partnerships. Backed by a sustained operational performance, the company has maintained a solid capital position.

SIGI’s Price PerformanceShares of SIGI have gained 9.9% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

SIGI’s Expensive ValuationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book ratio of 1.67, above the industry average of 1.42. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for SIGIThe Zacks Consensus Estimate for SIGI’s second-quarter 2026 EPS has moved up 2.4% in the past 60 days. The same for full-year 2026 and 2027 EPS has moved up 1.9% and 0.4%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

A popular saying in professional sports is that Father Time is undefeated. The clock stops for no professional athlete. The same can be true of the current data center buildout.

A recent JPMorgan Chase report states that more than 60% of the planned data center capacity for 2027 has not yet been started. An additional 7% of projects under construction are being delayed by supply chain bottlenecks, permitting hurdles, and power shortages.

Investors who focus on FUD (fear, uncertainty, and doubt) argue that the shift out of technology stocks, particularly hyperscaler stocks, is evidence that the data center story is falling apart.

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But the recent earnings season refuted that point of view. Demand is real. The money is committed. In the last quarter, the four major hyperscalers raised their combined AI-related capital expenditures to $750 billion for this calendar year. That demand is expected to reach $1 trillion in 2027.

But the one factor that investors can’t control is the time it takes to actually build the data centers. The story has gotten ahead of the shovels.

Data Center Backlog Stocks Could Be the Bigger AI TradeA more likely reason for the selloff is rotation into the stocks of companies that are essential to filling this backlog. The companies supplying the equipment needed to build new facilities stand to be the largest beneficiaries.

One option for investors is to look at exchange-traded funds (ETFs) tied to physical data center infrastructure. One example is the Global X U.S. Infrastructure Development ETF BATS: PAVE, which is up 22% in 2026 as of this writing.

However, investors may do better by investing in individual stocks within these funds. That can provide the opportunity for market-beating gains and, in some cases, dividends that can beat the performance of a single fund.

Eaton Is Turning AI Data Center Spend Into Backlog GrowthEaton Today

$403.94 -15.93 (-3.79%)

As of 11:43 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$311.92▼

$436.74Dividend Yield1.09%

P/E Ratio39.35

Price Target$420.95

Eaton NYSE: ETN sells the electrical guts inside an AI data center. Think of switchgear, UPS systems, busways, and power distribution units that connect the grid to the server racks. The Q1 2026 numbers tell the story. In Eaton’s Electrical Americas segment, data center orders surged roughly 240% year over year, while data center revenue in the segment grew about 50%.

That growth is likely to accelerate. Eaton closed the Boyd Thermal acquisition to expand into liquid cooling. The company is also collaborating with NVIDIA NASDAQ: NVDA on the Beam Rubin DSX platform for AI factories. Plus, a planned Reverse Morris Trust deal will spin off Eaton's Mobility Group. That leaves a more focused Electrical and Aerospace business aligned squarely with AI buildout demand.

ETN is up 28% year-to-date, which lands it within 5% of its consensus price target. However, since the company’s Q1 2026 earnings report, analysts have been aggressively raising their price targets.

Why Quanta Services Offers the Clearest Backlog VisibilityQuanta Services Today

PWR

Quanta Services

$701.12 -17.47 (-2.43%)

As of 11:43 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$363.01▼

$788.75Dividend Yield0.06%

P/E Ratio95.86

Price Target$733.87

Quanta Services NYSE: PWR does the physical work that turns a data center site plan into delivered power. The company builds high-voltage transmission lines, substations, and load centers. At its 2026 Investor Day, management outlined a $2.4 trillion addressable market through 2030.

The backlog supports that forecast. Quanta exited Q4 with a $44 billion backlog, up 27.5% year-over-year. Management now guides for 15% to 20% annual EPS (earnings per share) growth through 2030. Internal training programs have built a skilled-labor moat that smaller rivals struggle to match. That gives PWR pricing power as electricians and linemen become scarce.

PWR is up over 65% year-to-date, and like ETN, it’s within about 5% of its consensus price target. But analyst sentiment is bullish, and the chart is constructive, with support at the 50-day simple moving average (SMA) and a MACD on the cusp of reversing.

Vertiv Turns AI Heat and Power Demand Into Backlog GrowthVertiv Today

$306.74 -18.83 (-5.78%)

As of 11:43 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$110.06▼

$379.93Dividend Yield0.08%

P/E Ratio76.48

Price Target$326.39

Vertiv NYSE: VRT sells the power and thermal infrastructure inside the building. Once Quanta finishes the grid work, Vertiv's UPS systems, switchgear, racks, and liquid cooling take over. Roughly 75% of revenue now comes from data center customers. Q1 2026 revenue grew 30% to $2.65 billion. Project backlog more than doubled to over $15 billion.

Management raised its full-year guidance to $13.5 to $14 billion in net sales. Recent acquisitions of Strategic Thermal Labs and ThermoKey extend Vertiv from chip-level cold plates to facility-scale heat rejection. Vertiv was also named a Tier 1 partner on Hut 8's NASDAQ: HUT gigawatt-scale Beacon Point AI campus. Each hyperscaler win reinforces the picks-and-shovels thesis.

VRT is up over 95% in 2026 and is also trading within 5% of its consensus price target. The company also has the most mixed analyst picture of the three stocks on this list. But investors willing to play the long game should consider VRT's potential for strong dividend growth in the coming years.

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NEW YORK--(BUSINESS WIRE)--Edwards Lifesciences (NYSE: EW) today announced new data presented at New York Valves 2026, the annual conference organized by the Cardiovascular Research Foundation, which reinforce the company's leadership in advancing high-quality scientific evidence and innovating for patients. These new data – spanning aortic, mitral and tricuspid therapies – provide further understanding of the complexity of structural heart disease and the need for innovative treatment options.

Ahead of the planned full clinical presentation at TCT later this year, the baseline characteristics of the PROGRESS trial presented today provide new insights into the heterogeneous nature of moderate aortic stenosis (AS) patients. Research has shown that approximately half of moderate AS patients present with at least one at-risk feature, which includes symptoms, progressive cardiac damage, declining health and elevated risk of hospitalization. The PROGRESS trial is designed to evaluate whether patients with moderate AS and at least one risk factor may benefit from transcatheter aortic valve replacement (TAVR) earlier than current guidelines, which recommend clinical surveillance with echocardiographic follow-up every 1-2 years. Details of the PROGRESS trial design were recently published in the American Heart Journal and baseline characteristics of the PROGRESS trial are listed below:

More than 95% were symptomatic More than 70% had 2 or more at-risk features More than 90% had a normal left ventricular function Mean age was 78 ± 6 years Mean KCCQ score was 64 ± 24 Broad surgical risk distribution (46% low risk) Additional late-breaking clinical science presentations strengthen the evidence base for the SAPIEN 3 platform, including seven-year benchmark durability data from the PARTNER 3 trial, simultaneously published in JAMA Cardiology. Also presented were new findings from the EARLY TAVR trial, reinforcing the shift toward proactive disease management and providing continued long-term reassurance for physicians and patients. These data on Edwards’ SAPIEN platform underscore the benchmark valve performance and differentiated long-term durability of the therapy.

“Edwards remains focused on addressing the significant unmet needs of the many structural heart patients who remain untreated today,” said Bernard Zovighian, Edwards’ CEO. “Our expanding evidence base reflects Edwards’ clear and sustained commitment to advancing care through partnership with the physician community. From building a deeper understanding of the moderate AS population and advancing evidence about asymptomatic patients to demonstrating distinguished SAPIEN platform durability and strategies for lifetime disease management, we are strengthening confidence in long-term outcomes and increasing access for patients worldwide.”

Also at the meeting, new data highlighted clinical trial and real-world outcomes across Edwards’ mitral and tricuspid portfolio. Data from more than 4,500 patients treated with the PASCAL system in the STS/ACC Transcatheter Valve Therapy Registry helps highlight the sustained safety and effectiveness of the technology for patients with mitral regurgitation (MR). One-year data from the ENCIRCLE trial Mitral Annular Calcification (MAC) Registry support the safety, effectiveness and quality of life improvements with SAPIEN M3, the first and only transcatheter transseptal mitral valve replacement system, in patients with symptomatic valve dysfunction associated with MAC who are deemed unsuitable for surgery or TEER therapy by a heart team.

Zovighian added, “Together, our differentiated technology and world-class evidence reflect Edwards’ leadership in elevating the standard of care for structural heart patients and improving outcomes across the care continuum.”

About Edwards Lifesciences

Edwards Lifesciences is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence and partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Discover more at www.edwards.com and follow us on LinkedIn, Facebook, Instagram and YouTube.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements made by Mr. Zovighian and statements regarding the benchmark performance and differentiated long-term durability of Edwards’ SAPIEN platform, elevating the standard of care, our leadership in advancing our growing body of high-quality scientific and clinical evidence, long-term reassurance for physicians and patients, our commitment to advance care through partnerships with the physician community, strengthen confidence in long-term outcomes and expanding access for patients, innovating for patients with structural heart disease, the safety and effectiveness and quality of life improvements of our products, and improving outcomes across the care continuum, and other statements that are not historical facts. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain and difficult to predict. Our forward-looking statements speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. Investors are cautioned not to unduly rely on such forward-looking statements.

Forward-looking statements involve risks and uncertainties that could cause results to differ materially from those expressed or implied by the forward-looking statements based on a number of factors as detailed in the company's filings with the Securities and Exchange Commission. These filings, along with important safety information about our products, may be found at Edwards.com.

Edwards, Edwards Lifesciences, the stylized E logo, EARLY TAVR, ENCIRCLE, PARTNER, PARTNER 3, PASCAL, PROGRESS, SAPIEN, SAPIEN 3 and SAPIEN M3 are trademarks of Edwards Lifesciences Corporation or its affiliates. All other trademarks are the property of their respective owners.

Key Takeaways Alto Ingredients returned to profitability in Q1 2026 as adjusted EBITDA improved to $4.7 million.Alto Ingredients expects about $15 million in annual net proceeds from qualifying 45Z production volumes.Green Plains produced 174 million gallons of ethanol in Q1 2026 while operating at 97% of capacity. Alto Ingredients, Inc. (ALTO - Free Report) and Green Plains Inc. (GPRE - Free Report) are two prominent players in the U.S. biofuels industry, with business models centered on producing ethanol and other value-added agricultural products. While Alto Ingredients has increasingly diversified into specialty alcohols and essential ingredients for industrial and consumer applications, Green Plains has focused on transforming itself into a higher-margin producer of sustainable ingredients, renewable corn oil and low-carbon products.

The comparison between ALTO and GPRE is especially relevant as investors reassess the outlook for ethanol producers amid volatile corn prices, evolving renewable fuel policies and growing demand for low-carbon energy solutions. Both companies are navigating the same macroeconomic and regulatory environment but pursuing different strategic paths, making them an intriguing pair for evaluating growth potential, profitability and long-term positioning in the energy transition.

Let's discuss in detail.

The Case for Alto Ingredients StockAlto Ingredients operates as a diversified producer of renewable fuels, specialty alcohols and essential ingredients, supplying customers across health, beauty, food, beverage, industrial and agricultural markets. The company's diversified portfolio and focus on higher-value products are contributing to a meaningful improvement in operating performance. In the first quarter of 2026, Alto Ingredients returned to profitability with earnings of 5 cents per share, against a loss of 16 cents a year earlier, while adjusted EBITDA improved to $4.7 million from negative $4.4 million, reflecting the benefits of its strategic realignment, stronger export demand and improved crush margins.

Another major catalyst has been stronger industry fundamentals and a more favorable product mix. Robust export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices supported margins. The company's crush margins increased to 17 cents per gallon from just 2 cents a year ago, while essential ingredients returns improved to 53.4% from 48.2%. Management also remains optimistic about demand growth from export markets and year-round E15 adoption.

Operational improvements and expansion projects are further supporting the company’s long-term outlook. Alto Ingredients is investing in projects to improve reliability, increase utilization and expand capacity. A debottlenecking project at the Pekin dry mill is expected to raise annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments are expected to enhance operational flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives that could provide additional earnings opportunities over time.

Alto Ingredients is benefiting from growing opportunities tied to Section 45Z tax credits and improving financial flexibility. The company recognized $3.9 million in tax-credit earnings in the first quarter and expects roughly $15 million in annual net proceeds from qualifying production volumes. Positive operating cash flow, lower debt and more than $94 million in borrowing capacity have further strengthened the company's balance sheet and financial flexibility.

The Case for Green Plains StockGreen Plains has established itself as a prominent player in the U.S. biofuels industry, operating a network of eight ethanol plants and maintaining a significant presence in domestic biofuel production. The company produced 174 million gallons of ethanol in the first quarter of 2026 while operating at 97% of capacity, underscoring the scale, utilization rates and efficiency of its production platform.

The business has evolved beyond conventional ethanol manufacturing into a diversified portfolio of value-added products and services. Alongside ethanol, Green Plains generates revenues from renewable corn oil, ultra-high protein ingredients, grain handling, commodity marketing and carbon-related activities. This broader product mix expands the company's exposure across agricultural, feed, energy and low-carbon markets.

Green Plains continues to focus on improving plant reliability, increasing processing yields and lowering carbon intensity across its facilities. The company is directing capital toward grain storage expansion, low-energy distillation upgrades and yield-enhancement technologies designed to improve efficiency and strengthen operating performance. Benchmarking initiatives and data-driven analytics are also helping identify productivity gains across the production network.

Green Plains is also benefiting from the growing contribution of its carbon platform and Section 45Z production tax credits. Net production tax credits contributed $55.2 million to adjusted EBITDA in the first quarter, supported by the first full quarter of carbon sequestration operations at its three Nebraska facilities. The company expects its carbon strategy to contribute between $200 million and $225 million of EBITDA in 2026, while strong liquidity provides additional financial flexibility.

Valuation & Price Performance of ALTO & GPREAlto Ingredients currently trades at a forward price-to-sales ratio of 0.38, representing a modest discount to Green Plains, which trades at 0.52.

P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Over the last three months, Alto Ingredients has emerged as the stronger performer, rising 10.4% while Green Plains lost 11.8%.

Three Months Price Performance
Image Source: Zacks Investment Research

Bottom Line: ALTO Appears Better Positioned for GrowthBoth Alto Ingredients and Green Plains are evolving beyond traditional ethanol production, but the former currently offers a more compelling turnaround and valuation story. Its improving profitability, stronger crush margins, growing specialty alcohol and ingredients business, and exposure to Section 45Z incentives provide multiple avenues for earnings growth. While Green Plains continues to advance its low-carbon and carbon capture initiatives and benefits from greater scale, ALTO's improving operational execution, strengthening balance sheet and leverage to improve industry fundamentals could position the stock to deliver stronger upside potential over the near to medium term.

Both ALTO and GPRE sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Figma's stock price has imploded since its initial public offering (IPO) last year as the exuberance that fueled its private-market valuation collided with the realities of life as a publicly traded company. FIG dropped to $16 on Thursday, down sharply from the all-time high of $142.

Figma is one of the best-known software companies in the corporate world. Over the years it has become a beloved name among designers because of the collaborative aspect. 

This popularity surged before it became a publicly traded company. At its peak, it reached a $20 billion valuation when Adobe placed a bid. Adobe terminated the agreement after it faced opposition in the UK and the EU, forcing it to pay a $1 billion breakup fee. 

Figma’s popularity helped its valuation to surge to over $60 billion following its IPO. Today, the figure has tumbled to $8.9 billion, and the situation is getting worse by the day.

The rise and fall of Figma is emblematic of what has been going on in the market today. It is common for highly valued companies to suffer a rude awakening when they go public. A good example of this is Klarna, whose valuation peaked at $17 billion following its IPO. Today, the company is valued at $7.2 billion.

Another example of this phenomenon is Circle Internet Group whose valuation peaked at $60 billion before plummeting to $17 billion today.

The main reason why the Figma stock price is imploding is known as SaaSpocalypse, a situation where investors are dumping software stocks in fear that their businesses will be disrupted by AI tools.

These fears explain why other companies in the software industry like Salesforce, Adobe, Intuit, and ServiceNow are in a freefall this year.

However, in reality, some popular individuals, including Jensen Huang, argues that the fear that AI will disrupt software companies is not backed by reality. 

Instead, AI will improve these companies by helping them reduce their operational costs and improve their service offerings.

Indeed, the most recent results showed that Figma’s business is still firing on all cylinders this year. Its revenue surged by 46% in the first quarter to $334 million, with the management boosting its forward guidance citing demand and seat expansion. 

The management now expects that its second-quarter revenue will jump by 40% to between $348 million and $350 million. For the year, the company is expected to make between $1.42 billion and $1.428 billion.

Therefore, there are signs that Figma is being punished unfairly, as the management is also predicting that profitability will happen soon. It is also showing that more companies are subscribing to its services. 

FIG stock price chart | Source: TradingView

The daily chart shows that the FIG stock price has imploded and is now sitting at a crucial support level of $16.85. A closer look shows that this price coincides with the lowest swing in April this year. That is a sign that it has formed a double-bottom pattern whose neckline is at $27.80.

The double-bottom pattern suggests that a rebound is possible. However, the most likely scenario is where the stock continues falling for a while before bouncing back eventually. This view will be confirmed if it drops below the double-bottom level of $16.85. 

SpaceX Corp (NASDAQ:SPCX) is considering launching a Starlink-branded mobile phone service in the United States, according to a Financial Times report published on Friday, potentially expanding the company's role in the telecommunications market.

The report cited comments from SpaceX President Gwynne Shotwell during a recent investor roadshow, where she reportedly discussed plans for a direct-to-consumer wireless offering and the possibility of building a terrestrial mobile network in the US.

SpaceX currently works with T-Mobile to provide direct-to-cell satellite connectivity aimed at extending coverage to remote areas. A standalone mobile service would place the Elon Musk-led company in more direct competition with established wireless carriers including Verizon, AT&T and T-Mobile.

According to the Financial Times, SpaceX has told investors that a retail Starlink mobile product could allow the company to capture a larger share of customer revenue by combining satellite capabilities with terrestrial wireless infrastructure.

The company strengthened its wireless spectrum holdings through acquisitions of EchoStar licenses totaling about $19.6 billion, including a roughly $17 billion purchase in September 2025 and an additional $2.6 billion transaction in November.

Starlink has more than 10 million subscribers worldwide and has become a key contributor to SpaceX's record valuation.

Shares of SpaceX traded hands at $153 on Friday, after debuting at $135 per share on June 12.  

CANADA - 2026/06/19: In this photo illustration, the AWS (Amazon Web Services) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)

SOPA Images/LightRocket via Getty Images

This article was written by Doug Nathman, with research by his team at Trefis.

Worries in the market regarding Amazon's significant investment in AI might underestimate the impressive proprietary technology being developed to support it.

Despite a history of fast surges, Amazon has felt rather constrained as of late, trading sideways for nearly six months. A key question among investors is: will the company’s significant investment in artificial intelligence yield a substantial return, or will this expenditure not produce adequate returns?

However, concentrating on the spending overlooks the more critical narrative. Amazon’s approach in the fiercely competitive AI arena encompasses more than just simple purchases; the firm is constructing the vital infrastructure. In doing so, it is stealthily establishing itself as one of the most significant semiconductor manufacturers globally.

Is Amazon Among The Top Three Global Chip Firms?Buried within the most recent earnings call was a striking claim from management: if its custom silicon division operated independently, its yearly revenue run rate would be $50 billion. To provide context, the company asserts its “custom silicon segment is now one of the top three data center chip enterprises worldwide.” This isn’t merely a secondary endeavor. This is a strategic cornerstone slowly materializing in plain view, centered on two primary products: Graviton for general computing and Trainium for AI applications.

While the public perceives AWS primarily as a cloud service provider, it is swiftly transforming into a vertically integrated powerhouse. It has progressed from simply leasing server space to designing and implementing its own high-performance, cost-effective silicon to operate that space. And customers are eagerly awaiting their turn.

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Demand Has Already Surpassed SupplyThis isn’t a theoretical edge; the demand is tangible and urgent. The company’s Trainium2 AI chip is already “primarily sold out.” Its successor, Trainium3, which has just commenced shipping, is “almost fully subscribed.” Most notably, Amazon reports that “a large portion of Trainium4, which is still approximately 18 months from widespread availability, has already been booked.”

When clients are reserving hardware that is set to be available in a year and a half, it indicates a strong demand for the unique price-performance ratio that Amazon is presenting. The customer base extends far beyond AI startups. Tech titan Meta recently “committed to utilizing tens of millions of Graviton cores” to advance its own AI initiatives, opting for Amazon’s custom CPU that delivers up to “40% superior price performance” compared to alternatives.

How Is This Addressing The Spending Concern?This is the vital connection. The bearish argument against Amazon is predicated on the massive cost of its AI expansion. However, creating its own chips fundamentally alters the cost dynamics of that investment. Management has been clear about the benefits, indicating that at scale, it anticipates Trainium will “save us tens of billions of dollars in capital expenditures every year.”

In addition to the cost savings, it establishes a robust competitive advantage. The company forecasts that its in-house silicon will “yield several hundred basis points of operating margin advantage compared to relying on external chips.” In a business as substantial as AWS, which currently operates at a $150 billion annualized revenue run rate, such margin enhancement is a powerful catalyst for profit.

While investors have been closely examining every dollar of capital spending, Amazon has been developing the very technology that could significantly enhance that capital's efficiency. It answers the market's most pressing question, suggesting that the company is evolving beyond mere participation in the AI revolution to construct a foundational, high-margin engine to sustain it for years ahead.

Where Will An Opportunity Like This First Manifest?An opportunity of this nature only counts once it begins to reflect in the financial figures, and the first concrete indication is in management’s outlook. The instant a company can actually anticipate new revenue, it adjusts its forecast, and an upward adjustment that the market is already rewarding serves as some of the clearest evidence that a narrative like this is becoming a reality.

A growth narrative this credible warrants action, but investing through a single stock means accepting all the fluctuations that one company experiences. A more intelligent strategy is to maintain a collection of stocks where the long-term perspective is equally robust, ensuring that the sustainable upside remains intact and no unexpected event can compromise it. This is how patient capital flourishes.

Differentiating the genuinely sustainable narratives from the merely appealing ones is the foundation of the Trefis methodology. The Trefis High Quality (HQ) Portfolio assesses the complete picture of quality across thousands of stocks, not just a single factor, retains the 30 strongest selections, and re-balances them with careful discipline. It possesses a track record of outperforming a benchmark that merges the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000.

Key Takeaways Citigroup cleared the Fed's 2026 stress test, reinforcing capital strength and shareholder return plans.C plans a 12% dividend increase to 67 cents and launched a $30B multi-year buyback program.C expects higher repurchases in 2026 than in 2025, backed by strong capital and liquidity positions. Citigroup Inc.'s (C - Free Report) successful completion of the Federal Reserve's 2026 stress test underscores the bank's financial resilience and strengthens its ability to reward shareholders. While passing the annual stress test is a regulatory milestone, the bigger takeaway for investors is the capital flexibility it creates. A strong capital position allows banks to return more cash through dividend payments and share repurchases while continuing to invest in growth initiatives.

Along with Citigroup, 31 banks like Wells Fargo (WFC - Free Report) and JPMorgan (JPM - Free Report) also cleared the Fed’s 2026 stress test.

C's Lower Capital Requirement Creates More Financial FlexibilityCitigroup’s Stress Capital Buffer remains unchanged at 3.6% after the Federal Reserve’s 2026 supervisory stress test. However, C stated that its latest stress-test results would have supported a lower SCB of 3.3% had the Fed not extended the existing requirements through Oct. 1, 2027. The Fed is maintaining current SCB levels while it finalizes updates to its stress-testing framework, enabling citigroup to continue operating under its existing capital buffer until the revised rules are implemented.

Even with the current requirement, Citigroup remains comfortably above regulatory minimums. As of March 31, 2026, its Standardized Common Equity Tier 1 capital ratio was 12.7%, 110 basis points above the required level of 11.6%. This excess capital provides a meaningful cushion against economic stress and highlights the progress the company has made in simplifying its operations, strengthening risk controls and improving earnings quality.

C’s liquidity position also remains solid. As of March 31, 2026, cash and due from banks, along with total investments, aggregated $467.8 billion, exceeding total debt, including short-term and long-term borrowings, of $379.6 billion.
This strength is translating directly into enhanced shareholder returns. Citigroup plans to raise its quarterly common stock dividend 12% to 67 cents per share from 60 cents, beginning in the third quarter of 2026, subject to board approval. The company has also initiated a $30-billion multi-year common stock repurchase program.

The broader banking sector is also moving to reward shareholders following the stress test results. JPMorgan plans to lift its quarterly dividend to $1.65 per share from $1.50 and authorized a $50-billion share repurchase program. Wells Fargo, meanwhile, plans to increase its quarterly dividend 11% to 50 cents per share, subject to board approval in July.

Coming back to Citigroup, its Investor Day financial overview reinforces this capital-return narrative. C has noted that it has returned roughly $45 billion of capital to shareholders since the beginning of 2022 and expects repurchases to be higher in 2026 than in 2025. This reflects disciplined capital deployment, improving profitability and continued progress in reshaping Citigroup into a simpler and more resilient company.

Final Words on Citigroup Capital StrengthIn conclusion, C’s stress test performance reinforces the strength of its franchise and the continued momentum in executing its transformation strategy. The results show that efforts to reshape the bank into a simpler and more resilient firm are translating into tangible progress, including stronger earnings capacity, enhanced capital resilience and a consistent reduction in its stress capital buffer. 

Overall, Citigroup appears well-positioned to deliver steady long-term shareholder returns across varying economic conditions.

C’s Price Performance & Zacks RankCitigroup shares have surged 71.8% in the past year compared with the industry’s growth of 26.2%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) and Cerebras Systems (NASDAQ: CBRS) just delivered earnings that frame the same question from opposite ends. Nvidia posted another blowout quarter built on its CUDA software stack. Cerebras, fresh off its May IPO, showed jaw-dropping inference speed yet guided full-year operating margins negative. The moat is developer gravity.

One Sells Platforms. The Other Sells Speed. Nvidia’s Q1 FY27 hit $81.61 billion in revenue, up 85.2% YoY, with Data Center alone reaching $75.25 billion on 92% growth. Networking soared 199% as InfiniBand, NVLink and Spectrum-X locked customers deeper into the stack. Jensen Huang told investors NVIDIA is “the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced”, and the numbers back the claim.

Cerebras’ first report as a public company landed differently. Q1 GAAP revenue reached $193.4 million, up 94% YoY, with cloud services growing 178%. A multi-year, $20 billion-plus OpenAI inference deal covering 750 megawatts anchors near-term growth. Yet management guided full-year operating margins to negative 28% to negative 32%. Speed sells. Scaling it economically is harder.

Software Gravity Beats Wafer-Scale Throughput Independent benchmarks show Cerebras’ wafer-scale design delivering a 21x speed advantage over Nvidia hardware for latency-sensitive, low-batch inference. The catch is that every major LLM framework and enterprise developer stack is natively optimized for Nvidia architecture out of the box, while Cerebras requires specialized compilation and custom engineering support for anything off the well-trodden path.

Lens NVIDIA Cerebras Core Bet CUDA full-stack platform Wafer-scale inference speed Q1 Gross Margin 75.0% non-GAAP 44.6% GAAP Anchor Customers Meta, OpenAI, Anthropic, Google OpenAI, AWS, G42 Biggest Vulnerability OpenAI’s Jalapeño custom chip Negative operating margins Nvidia’s $119 billion in supply commitments and $80 billion added to its buyback authorization signal management is doubling down on the platform. Cerebras raised $5.6 billion at IPO and is funneling it into data center capacity for OpenAI’s decode workloads while AWS Trainium 3 handles prefill. That is a focused inference bet riding on one customer’s roadmap.

The Next Test Is Whether Developers Defect Two catalysts matter into the back half of 2026. For Nvidia, the OpenAI Jalapeño chip, built with Broadcom, is the most credible threat to CUDA stickiness. NVDA shares are already down 8.79% over the past month, even with the stock up 27.01% YoY. For Cerebras, the bar is executing the OpenAI ramp without further margin slippage. Q2 core gross margin guidance of 36% to 38% telegraphs how steep the infrastructure build will be.

Why The Setup Still Favors Nvidia For AI infrastructure exposure with a self-funding moat, Nvidia remains the cleaner expression of the thesis. The 75% gross margin, $48.55 billion in quarterly free cash flow, and the developer install base are tough to dislodge in a single product cycle. Cerebras has the faster chip and a marquee anchor customer. A forward P/E of 23 on NVDA already prices in some software erosion. If CUDA defections spread beyond OpenAI, my view changes.

Key Takeaways Chevron confirmed employees are safe and Venezuelan operations continue without earthquake disruptions. CVX said key crude projects, refining and export facilities continue operating normally. Chevron is supporting communities while monitoring safety and recovery across Venezuela. Chevron Corporation (CVX - Free Report) has confirmed that its operations in Venezuela remain unaffected despite two powerful earthquakes that caused widespread destruction and significant loss of life, underscoring the company's commitment to employee safety, operational resilience and support for local communities during challenging times.

Employee Safety Remains the Top Priority for CVXChevron reported that all of its employees in Venezuela are safe and accounted for following the twin earthquakes, which measured 7.2 and 7.5 in magnitude. The company expressed solidarity with the Venezuelan people and reaffirmed its commitment to supporting employees, neighboring communities and maintaining safe operations.

With a long-standing presence in the country, Chevron emphasized that protecting its workforce remains its highest priority while continuing to monitor the evolving situation closely.

CVX's Operations Continue Without DisruptionDespite the severe impact of the earthquakes, Chevron, currently carrying a Zacks Rank #3 (Hold), confirmed that its Venezuelan assets continue to operate normally. The company's three onshore heavy crude projects in western and eastern Venezuela have not experienced operational disruptions.

Key oil infrastructure also remained functional following the seismic events. Venezuela's Paraguaná refining complex, located near the affected region, continued normal refining activities, while the José export terminal maintained regular crude export operations.

These developments demonstrate the resilience of critical energy infrastructure even under difficult circumstances.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Industry Maintains StabilityChevron was not the only energy company to report uninterrupted operations. Other international operators, including Eni S.p.A. (E - Free Report) and Repsol, S.A. (REPYY - Free Report) , also confirmed that their Venezuelan assets remain operational.

Eni continues supplying natural gas that supports approximately half of Venezuela's gas-fired power generation, while Repsol's projects, including its partnership with Eni in the Perla gas field, continue contributing to the country's energy supply.

Although operations have remained stable, authorities and industry operators like CVX, E and REPYY continue assessing petrochemical facilities located closer to the earthquake's epicenter to ensure long-term safety.

Recovery Efforts Continue Across VenezuelaEmergency response teams remain engaged in rescue and recovery efforts following one of the strongest earthquakes recorded in Venezuela in more than a century. Authorities continue evaluating damage to industrial facilities, public infrastructure and residential areas.

Meanwhile, the Morón Petrochemical Complex has begun restoring operations after temporarily suspending activities to complete safety inspections. The precautionary shutdown reflects the industry's emphasis on protecting personnel and ensuring facility integrity before resuming operations.

Chevron's Long-Term Commitment to VenezuelaChevron has maintained a presence in Venezuela through years of political and economic uncertainty. It is making major developments in Venezuela, where production from its joint ventures has been steadily rising, reinforcing its position as a critical partner to PDVSA. The company currently contributes roughly a quarter of the country’s total crude output, underscoring both its operational importance and long-term strategic interest in the region. Chevron's ability to continue operating safely following this natural disaster reflects its focus on operational excellence, risk management and responsible energy production.

By prioritizing employee safety while maintaining reliable operations, Chevron continues to support Venezuela's energy sector during a period of significant national hardship.

Chevron's Ongoing Commitment to Safety and RecoveryAs Venezuela continues recovery efforts, Chevron remains focused on safeguarding its workforce, supporting affected communities and ensuring the safe operation of its assets. The company's swift response and operational resilience demonstrate the importance of strong safety practices and infrastructure preparedness in the face of unexpected natural disasters.

With ongoing assessments across the country's energy sector, Chevron continues working alongside stakeholders to provide reliable energy while contributing to recovery efforts wherever possible.

Key Takeaways SSR Mining closed the sale of its 80% stake in the Copler Mine to Cengiz.SSRM received $1.49B in cash and plans to reinvest, return capital and pursue growth.SSR Mining expects its 2026 gold equivalent output of 450,000-535,000 ounces from four mines. SSR Mining Inc. (SSRM - Free Report) announced that it closed its previously announced sale of 80% stake in the Çöpler Mine to Cengiz Holding A.S. Along with the prior announced sale of the 20% stake in the Hod Maden development project, the sale of the Çöpler Mine is consistent with SSR Mining's refocusing toward an Americas platform.

Details of SSR Mining’s Deal to Sell Çöpler Mine StakesOn March 4, 2026, SSR Mining inked a binding memorandum of understanding to sell its majority stake in the Çöpler Mine and related properties in Türkiye. Çöpler was a key contributor to SSRM’s output, which stopped operations on Feb. 13, 2024, following a significant slip on the heap leach pad.

SSR Mining worked toward the restart of the Çöpler Mine while securing the necessary regulatory approvals from Turkish authorities over the past two years. During this time, the company determined a strategic review to be the optimal path for the mine to maximize shareholder value.

SSR Mining received $1.49 billion in cash from the transaction, which it plans to use for continued business reinvestment, capital returns and accretive growth initiatives. SSRM expects the sale to yield immediate value for shareholders by exceeding current market expectations for the mine's net asset value and cash flow. 

SSRM’s recent strategic actions, including the acquisition of the Cripple Creek & Victor Mine, position it as a leading producer in the United States focused on free cash flow and capital return. The company currently operates four active mines across the United States, Canada and Argentina. SSR Mining expects gold-equivalent ounces to be 450,000-535,000 for 2026.

SSRM Stock Price PerformanceThe SSRM stock has appreciated a whopping 125.2% in a year compared with the industry’s return of 40.8%.

Image Source: Zacks Investment Research

SSR Mining’s Zacks Rank & Stocks to ConsiderThe Zacks Consensus Estimate for Dow's current-year earnings is pegged at $2.61 per share, indicating a 377% year-over-year surge. Dow’s shares have gained 13.6% in a year.

Albemarle has an average trailing four-quarter earnings surprise of 74.5%. The Zacks Consensus Estimate for the company’s 2026 earnings is pegged at $12.45 per share, indicating year-over-year growth from a loss of 79 cents. ALB shares have skyrocketed 124% so far this year. 

Avino Silver has an average trailing four-quarter earnings surprise of 125%. The Zacks Consensus Estimate for Avino Silver’s 2026 earnings is pegged at 39 cents per share, indicating 34.5% year-over-year growth. Its shares have surged 62.7% in a year.

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Intel (NASDAQ:INTC | INTC Price Prediction) and Taiwan Semiconductor Manufacturing (NYSE:TSM) both posted Q1 2026 results that frame the same question from opposite sides: who builds the world’s most advanced chips, and where. TSMC remains the engine of AI silicon. Intel is the Western alternative hyperscalers are quietly funding. Geography matters more than the numbers.

Foundry Bets Lift Intel. AI Wafers Carry TSMC. Intel’s Q1 came in at $0.29 in non-GAAP EPS on $13.58B revenue, with Data Center and AI up 22% YoY and Foundry up 16% YoY. CEO Lip-Bu Tan stated: “The next wave of AI will bring intelligence closer to the end user… This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.” A $4.07B Mobileye-related restructuring charge dragged GAAP results into a loss.

TSMC’s quarter was cleaner. Q1 revenue hit NT$1,134.10B, up 21.4% YoY, and net income jumped 43.82% to NT$572.48B. Gross margin reached 66.2%, a profitability profile Intel cannot match today. April monthly revenue rose 17.5% YoY, confirming AI wafer demand is accelerating.

Western Subsidies vs. Taiwanese Scale Intel’s foundry roadmap anchors a politically insulated U.S. manufacturing base: $8.9B in CHIPS Act funding, a $5.0B NVIDIA equity investment, $2.0B from SoftBank, and Intel 18A ramping at Fab 52 in Arizona. Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems. Intel joined the Terafab project alongside SpaceX, xAI, and Tesla. Hyperscalers are realizing that relying on a single island for over 90% of advanced chip fabrication is an unsustainable operational risk.

TSMC is diversifying with fabs in Arizona, Japan, and Germany, with its Arizona tax credit rate raised from 25% to 35%. Customer concentration is striking: the top 10 customers represent 84% of accounts receivable. Most leading-edge research stays in Hsinchu.

Lens Intel TSMC Core Bet U.S. foundry as secure second source Taiwan-anchored leading-edge dominance Key Vulnerability Execution on 18A yields and customer wins Geopolitical concentration risk Profit Engine Xeon, advanced packaging, foundry ramp 3nm and 2nm AI wafers The Next Test Is Intel 18A Customer Wins Watch whether Intel converts its Google ASIC partnership and NVIDIA wafer relationship into named 18A foundry customers before management decides on the Intel 14A go-ahead. For TSMC, monitor whether the 2D transistor and CoPoS packaging roadmap stays on schedule while Arizona expansion absorbs more capex. Intel guided Q2 to $13.8B-$14.8B in revenue with non-GAAP EPS of $0.20, so the margin path matters more than the headline.

Why Intel Offers Asymmetric Upside Intel fits investors seeking exposure to the structural reshoring trade, even with restructuring noise and a CFO who trimmed shares at $109.82. The stock is up 256.78% YTD, so the easy money is gone, but the foundry thesis has years to play out. TSMC remains the better business by every operating metric, with 46.5% profit margin proving it. TSMC may appeal to investors prioritizing quality compounding. If China-Taiwan tensions cool meaningfully, the relative case for TSMC strengthens. Until then, Intel’s political insulation is the edge the market is still underpricing.

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Wealth Management announced that it has expanded access to the Morgan Stanley Private Markets and Alternatives Fund ("PMAX") by registering it as PMAX - Balanced. This change removes the accredited investor requirement, lowers minimum investment amounts, and introduces daily subscriptions, making private market strategies accessible to a broader range of clients through a simplified, professionally managed investment vehicle.

Morgan Stanley Wealth Management is also adding to its PMAX product suite with the launch of PMAX - Growth, a fund with a growth-focused allocation, and plans to introduce additional strategies with targeted investment objectives.

Historically, access to private markets was primarily limited to institutions and ultra-high-net-worth investors, but the PMAX fund platform now broadens access to institutional-quality private market investment managers for more clients.

This expansion comes as private markets continue to gain momentum. Global Alternatives AUM is expected to exceed $30 trillion in 2030, up from less than $10 trillion a decade ago, driven by companies staying private longer and increasing investor demand for opportunities beyond public markets.1 Over the same period, the number of public companies has declined significantly, while 84% of companies generating $100 million or more in revenue remain private.2

Morgan Stanley Wealth Management continues to see substantial growth in alternative investments, with over $300 billion in client assets under management.3 This achievement positions the Firm as a leading provider of alternative investment solutions in the wealth management sector and underscores its 45-year history of excellence in this space, extensive resources, and a dedicated team of nearly 350 alternatives professionals.

“Our PMAX platform reflects our commitment to broadening access to private markets through innovative products designed to meet a wider range of client needs,” said Alison Nest, Head of Investment Solutions Products. “By expanding the platform and making it easier to invest, we are giving clients and advisors more ways to build diversified portfolios aligned with their investment objectives.”

PMAX platform overview

PMAX - Balanced, with currently over $1B in AUM4, is a multi-manager portfolio offering diversified exposure across private equity, private credit, real estate and infrastructure through a simplified, single-ticket evergreen vehicle. With a diversified allocation across these strategies, it seeks to offer the potential for risk-adjusted higher returns, income and lower correlation relative to traditional investments.

PMAX - Growth is a growth-oriented private markets approach for clients seeking increased exposure to long-term capital appreciation opportunities. The fund provides diversified exposure to private equity through a curated, multi-manager portfolio across sectors, geographies and vintages, combining growth‑oriented and buyout strategies that seek to pursue long‑term capital appreciation while providing diversification.

The funds require a $10,000 initial investment and $5,000 for subsequent contributions. The funds permit daily purchases and allow clients to benefit from consolidated tax reporting and fully funded exposure without capital calls. Additionally, the streamlined investor experience removes the need for subscription documents, making the process simpler and more efficient for clients.

The funds are closed-end investment companies and do not offer daily redemptions. Liquidity is anticipated only through limited quarterly repurchase offers that occur at the discretion of each fund's Board of Trustees.

“The PMAX platform brings together Morgan Stanley Wealth Management’s scale, alternatives expertise and manager access in a way that is designed to make private markets investing more accessible and more flexible for clients,” said Brian Holzer, Head of Alternative Investments Distribution. “With these offerings, we are continuing to build a differentiated platform that helps advisors deliver institutional-quality private market strategies.”

Investment approach

The funds utilize the intellectual capital of Morgan Stanley Wealth Management’s Global Investment Committee for asset allocation and Global Investment Manager Analysis team for manager selection and due diligence.

PMAX - Balanced targets allocations to private equity, private credit and real assets. This calibrated mix is designed to pursue higher risk-adjusted returns, income and diversification across private market strategies that may have lower correlation to public markets. The strategy also seeks diversification across sub-strategy, geography, sectors and managers, while retaining flexibility to incorporate additional strategies as opportunities arise.

PMAX - Growth targets allocation ranges that emphasize buyout strategies, as a core component, complemented by growth equity and venture capital and other opportunistic strategies. Overall, the approach focuses on diversification within private equity through manager selection, asset allocation, and periodic rebalancing, with the goal of seeking attractive risk‑adjusted returns over time.

About Morgan Stanley Wealth Management

Morgan Stanley Wealth Management, a global leader, provides access to a wide range of products and services to individuals, businesses and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products, annuities and insurance, retirement and trust services.

About Morgan Stanley

Morgan Stanley (NYSE MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 41 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information, visit www.morganstanley.com.

Important Information

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy any securities, nor does it constitute investment advice or a recommendation of any kind.

The PMAX funds are closed-end investment companies with limited to no liquidity. Shares are not listed on any securities exchange and no secondary market is expected to develop. Shareholders do not have the right to require the funds to redeem their shares. The funds may offer to repurchase shares on a quarterly basis in an amount not to exceed 3% of each fund's net asset value, subject to the discretion of each fund's Board of Trustees. No assurances can be given that a fund will conduct a repurchase in any given quarter and investors should not expect to be able to sell their shares regardless of how a fund performs.

The funds invest primarily in private market strategies for which valuations are generally provided on a quarterly basis by the underlying portfolio fund managers, while the funds calculate their net asset value and offer shares on a daily basis. Accordingly, the daily net asset value of a fund's shares may not fully reflect the current fair value of the fund's underlying investments and may be subject to adjustment as updated valuations become available.

Investing in the funds involves a high degree of risk, including the possible loss of the entire investment. The funds invest in non-traditional, alternative strategies, including private equity, private credit and real assets, that are subject to risks not typically associated with traditional investments, including but not limited to illiquidity, limited transparency, leverage, valuation uncertainty and potential for significant price volatility. Past performance is not indicative of future results, and there can be no assurance that the funds will achieve their investment objectives.

Investors should carefully read the applicable prospectus before investing for a more complete description of the risks involved. Copies of the prospectus may be obtained by contacting your Morgan Stanley Financial Advisor.

The sole purpose of this material is to inform, and it is in no way intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Products mentioned herein may not be appropriate for all investors and may be purchased only after an eligible investor has carefully reviewed the Fund’s offering materials and executed any applicable subscription documents. MSWM has not considered the actual or desired investment objectives, goals, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering materials, and make a determination, based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance.

Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market.

Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will vary from fund to fund. Clients should consult their own tax and legal advisors as MSWM does not provide tax or legal advice.

Interests in alternative investment products are only made available pursuant to the terms of the applicable offering materials, are distributed by MSWM and certain of its affiliates, and (1) are not FDIC-insured, (2) are not deposits or other obligations of MSWM or any of its affiliates, (3) are not guaranteed by MSWM or any of its affiliates, and (4) involve investment risks, including possible loss of principal. MSWM is a registered broker-dealer, not a bank.

© 2026 Morgan Stanley Smith Barney LLC. Member SIPC. Alternative investment securities discussed herein are not covered by the protections provided by the Securities Investor Protection Corporation, unless such securities are registered under the Securities Act of 1933, as amended, and are held in an MSWM Individual Retirement Account.

Key Takeaways Biogen's newer drugs are growing but remain insufficient to offset declining MS franchise sales.Leqembi's subcutaneous autoinjector and blood-based diagnostics may support growth from 2027 onward.Biogen's growth products generated $851 million in Q1 sales, up 12% year over year. Biogen (BIIB - Free Report) is in the midst of a major portfolio transition. The company is seeing declining sales of its key multiple sclerosis (“MS”) drugs like Tecfidera and Tysabri and spinal muscular atrophy (SMA) treatment, Spinraza, due to generic erosion, increasing competition from newer therapies and pricing headwinds.

To combat the pressure on key drugs, Biogen has been aggressively building a new growth engine around recently launched products, Eisai-partnered Leqembi for Alzheimer’s disease, Skyclarys for Friedreich’s ataxia, Qalsody for amyotrophic lateral sclerosis (ALS) and Supernus Pharmaceuticals (SUPN - Free Report) -partnered Zurzuvae for depression.

The key question for investors is whether these products can eventually compensate for the erosion of blockbuster drugs like Tecfidera, Tysabri and Spinraza. Let us discuss.

Key Multiple Sclerosis Drugs, Spinraza Face Increased CompetitionBiogen’s MS sales are declining due to generic competition for Tecfidera globally, biosimilar competition for Tysabri in Europe and rising competitive pressure in the MS market.

In 2026, Biogen expects revenues for MS products, excluding Vumerity, to decline by a mid-teen percentage versus 2025 due to increased competitive pressure on the ex-U.S. MS business, particularly accelerating generic competition for Tecfidera in Europe.

Spinraza’s sales are also declining due to lower demand amid increasing competitive pressure from newer SMA treatments, including gene therapies and oral medicines that offer greater convenience. Spinraza faces competition from Novartis’ (NVS - Free Report) gene therapy, Zolgensma, and Roche and PTC Therapeutics’ (PTCT - Free Report) Evrysdi (risdiplam), which comes as either a liquid solution or an oral tablet.

BIIB’s New Drug Contributing to Top-Line GrowthAmid declining demand for MS drugs and Spinraza, Biogen believes its new products, Leqembi, Skyclarys and Zurzuvae have the potential to return the company to revenue growth.

The largest opportunity in Biogen's new portfolio is arguably Leqembi. Leqembi/lecanemab gained approval for early Alzheimer’s disease in the United States in 2023. Though the Leqembi launch was slow, it picked up in 2024 and 2025. Leqembi has also been launched in Japan, China, the EU and some other countries. Leqembi commands over 60% of the anti-amyloid therapy market share in the United States.

A less frequent maintenance intravenous dosing version of Leqembi was approved by the FDA in January 2025. A subcutaneous autoinjector for maintenance dosing called Leqembi Iqlik was launched in October 2025, while a supplemental filing seeking approval of the Leqembi Iqlik subcutaneous autoinjector for initiation dosing has been granted priority review by the FDA, with a decision expected in August. Biogen and Eisai believe that the introduction of blood-based diagnostics (which can help earlier detection of Alzheimer’s) and the subcutaneous autoinjector for maintenance and initiation should drive Leqembi’s growth from 2027 onward.

Other new products, Qalsody, Biogen/Supernus’ Zurzuvae and Skyclarys (added from the 2023 acquisition of Reata Pharmaceuticals) are also seeing strong demand trends in the United States.

Skyclarys is seeing strong demand trends in the United States as well as the EU. Biogen expects Skyclarys’ future growth to come from ex U.S. markets as the launches advance. Zurzuvae’s launch also exceeded the company’s internal expectations, with sales more than doubling in 2025. Skyclarys and Zurzuvae’s sales are expected to continue to rise in 2026.

Biogen’s growth products (Skyclarys, Qalsody, Zurzuvae, Vumerity and Spinraza plus Alzheimer’s revenues from the Leqembi collaboration) generated sales of $851 million in the first quarter, rising 12% year over year.

In April, Biogen closed its acquisition of Apellis Pharmaceuticals, adding the commercialized medicines Empaveli and Syfovre for immune-mediated retinal disease and nephrology to its commercial portfolio. These drugs should also contribute to Biogen’s growth in future quarters.

Can BIIB’s New Drugs Offset Key Drugs’ Erosion?After declining for several years, Biogen’s revenues have somewhat stabilized since 2024 due to contributions from newer products and pipeline progress. However, its newer drugs, Leqembi, Skyclarys, Qalsody and Zurzuvae, are currently insufficient to offset the near-term top-line decline of the MS franchise. Though all these new drugs are showing signs of growth, replacing lost revenues from Tecfidera, Tysabri and Spinraza will likely take time.

BIIB’s Price Performance, Valuation and EstimatesBiogen’s stock has risen 14.8% so far this year compared with an increase of 5.4% for the industry. 

Image Source: Zacks Investment Research

From a valuation standpoint, Biogen is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 13.44 forward earnings, which is lower than 17.72 for the industry. The stock is trading above its five-year mean of 13.17.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for earnings has declined from $15.04 per share to $13.99 per share for 2026 over the past 60 days. For 2027, the consensus mark for earnings has declined from $16.61 to $16.22 per share over the same time frame.

Image Source: Zacks Investment Research

Biogen has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Paramount Skydance Corporation (NASDAQ: PSKY) ("Paramount") today announced the extension of the Expiration Dates in connection with the previously announced (i) offers to purchase (the "Tender Offers" and each, a "Tender Offer") for cash, upon the terms and subject to the conditions set forth in the related offer to purchase (the "Offer to Purchase"), any and all of the identified notes in each series of the Existing Tender Offer Notes (defined by reference to the table set forth below) issued by Discovery Global Holdings, Inc. (formerly WarnerMedia Holdings, Inc.) (the "DGH Issuer") and Discovery Communications, LLC (the "DCL Issuer" and together with the DGH Issuer, each a "WBD Issuer" and collectively the "WBD Issuers"), as applicable, and (ii) offers to exchange (the "Exchange Offers" and each, an "Exchange Offer" and, together with the Tender Offers, the "Offers" and each, an "Offer"), upon the terms and subject to the conditions set forth in the related exchange offer memorandum (the "Offering Memorandum"), any and all of the identified notes in each series of the Existing Exchange Offer Notes (defined by reference to the table set forth below) (together with the Existing Tender Offer Notes, the "Offer Notes") issued by the applicable WBD Issuer for notes to be newly issued by Paramount.

The Expiration Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) have been extended to 5:00 p.m., New York City time, on July 15, 2026, unless further extended. The Settlement Dates for the Tender Offers and Exchange Offers (as defined in each of the Offer to Purchase and Offering Memorandum, respectively) will occur promptly after the Expiration Date and are currently anticipated to occur in the third quarter of 2026. Paramount anticipates extending the Expiration Date for such Tender Offers and Exchange Offers until such time that would result in the Settlement Dates occurring on the closing date of the proposed acquisition (the "Acquisition") by Paramount of Warner Bros. Discovery, Inc. ("WBD") or within one business day thereof. Tenders of the Offer Notes in the Offers may be withdrawn at any time prior to the Expiration Date. The aforementioned extensions further extend the Expiration Dates previously extended by Paramount on June 12, 2026.

As of 5:00 p.m., New York City time, on June 25, 2026, approximately 24.38% and 44.27% of the aggregate principal amount of the Existing Tender Offer Notes and Existing Exchange Offer Notes, respectively, have been validly tendered in the applicable Offers. As Paramount previously announced that it anticipates extending the Offers to align with the closing date of the Acquisition, Paramount does not view these figures to be representative of the final results of the applicable Offers.

Information about each series of Offer Notes eligible to participate in the Offers is summarized below.

Type of Offer

Offer Notes to be Tendered
or Exchanged, as

Applicable

Issuer of Offer Notes

CUSIP No. / Common Code
/ ISIN Eligible to
Participate in the Offers (1)

Aggregate Principal
Amount of Offer Notes
Eligible to Participate in the
Offers (2)

Tender Offer

3.950% Senior Notes due 2028

DCL Issuer

25470D CP2

US25470DCP24

$1,234,458,000

Exchange Offer

4.125% Senior Notes due 2029

DCL Issuer

25470D CQ0

US25470DCQ07

$655,825,000

Exchange Offer

3.625% Senior Notes due 2030

DCL Issuer

25470D CR8

US25470DCR89

$914,183,000

Exchange Offer

5.000% Senior Notes due 2037

DCL Issuer

25470D CS6

US25470DCS62

$453,281,000

Exchange Offer

6.350% Senior Notes due 2040

DCL Issuer

25470D CT4

US25470DCT46

$438,102,000

Exchange Offer

4.950% Senior Notes due 2042

DCL Issuer

25470D CU1

US25470DCU19

$130,366,000

Exchange Offer

4.875% Senior Notes due 2043

DCL Issuer

25470D V91
CV9US25470DC

$141,584,000

Exchange Offer

5.200% Senior Notes due 2047

DCL Issuer

25470D W74
CW7US25470DC

$3,161,000

Exchange Offer

5.300% Senior Notes due 2049

DCL Issuer

25470D X57

CX5US25470DC

$247,860,000

Tender Offer

3.755% Senior Notes due 2027

DGH Issuer

254948 AH5

US254948AH58

254948 AN2

US254948AN27

U25483 AA3

USU25483AA38

$1,189,336,000

Exchange Offer

4.054% Senior Notes due 2029

DGH Issuer

254948 AJ1

US254948AJ15

254948 AP7

US254948AP74

U25483 AB1

USU25483AB11

$1,353,828,000

Exchange Offer

4.279% Senior Notes due 2032

DGH Issuer

254948 AK8

US254948AK87

254948 AQ5

US254948AQ57

$2,691,764,000

Exchange Offer

5.050% Senior Notes due 2042

DGH Issuer

254948 AL6

US254948AL60

254948 AR3

US254948AR31

U25483 AD7

USU25483AD76

$4,104,687,000

Exchange Offer

5.141% Senior Notes due 2052

DGH Issuer

254948 AM4

US254948AM44

254948 AS1

US254948AS14

$949,883,000

Exchange Offer

4.302% Senior Notes due 2030

DGH Issuer

XS3393993285

339399328

€234,382,000

Exchange Offer

4.693% Senior Notes due 2033

DGH Issuer

XS3393994507

339399450

€316,641,000

__________

(1) No representation is made as to the correctness or accuracy of the identifiers listed in this press release or printed on the Offer Notes. Such identifiers are provided solely for the convenience of the holders.

(2) Represents the aggregate principal amount of Offer Notes outstanding that are eligible to participate in the Offers.

The Exchange Offers are being made pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and the rules and regulations of the Securities and Exchange Commission (the "SEC") promulgated thereunder, and are also not being registered under any state or foreign securities laws. Any securities offered pursuant to the Exchange Offers may not be offered or sold in the United States or to any U.S. persons (as defined below) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers will only be made, and the securities offered pursuant to the Exchange Offers are only being offered and issued, to holders of applicable Existing Exchange Offer Notes who are (a) reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act or (b) not "U.S. persons," as defined in Rule 902 of Regulation S under the Securities Act (such holders, "Eligible Holders"), and only Eligible Holders who have completed and returned the eligibility certification are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offers. The eligibility certification is available electronically at: https://gbsc-usa.com/eligibility/paramount.

General

Each Offer is a separate offer, and each may be individually consummated, amended, extended, terminated, or withdrawn, subject to certain conditions and applicable law, at any time in Paramount's sole discretion, and without also consummating, amending, extending, terminating, or withdrawing any other Offer with respect to any other series of Offer Notes. Paramount may terminate an Offer if any of the conditions of such Offer described in the Offer to Purchase or Offering Memorandum, as applicable, are not satisfied or waived by the applicable Expiration Date, subject to applicable law. In addition, Paramount may waive the conditions to an Offer without extending such Offer in accordance with applicable law.

The Offers are being made solely by Paramount and are not being made by WBD or the WBD Issuers. None of Paramount, WBD, the WBD Issuers, the Dealer Managers, the Exchange Agent (as defined below), the Information Agent (as defined below), the trustees under each of the indentures governing the Offer Notes, the trustee or collateral agent under the indenture that will govern the notes to be issued in the Exchange Offers, or any affiliate of any of them makes any recommendation as to whether any holder of Offer Notes should tender or refrain from tendering all or any portion of the principal amount of such holder's Offer Notes for cash or notes to be issued in the Exchange Offers. No one has been authorized by any of them to make such a recommendation. Holders must make their own decision whether to tender Offer Notes in any Offer and, if so, the amount of Offer Notes to tender.

Only Eligible Holders may receive a copy of the Offering Memorandum and participate in the Exchange Offers. Paramount has engaged Global Bondholder Services Corporation to act as the exchange agent (in such capacity, the "Exchange Agent") and information agent (in such capacity, the "Information Agent") for the Offers. Questions concerning the Offers, or requests for additional copies of the Offer to Purchase or Offering Memorandum or other related documents, may be directed to Corporate Actions by telephone at (855) 654-2014 (U.S. toll-free) or (212) 430-3774 (banks and brokers) or by email at [email protected]. Holders should also consult their broker, dealer, commercial bank, trust company or other institution for assistance concerning the Offers. The Exchange Offer documents and the Tender Offer documents can be accessed at the following link: https://gbsc-usa.com/paramount.

Paramount has engaged BofA Securities and Citigroup as dealer managers (in such capacity, the "Dealer Managers") for the Offers. Holders with questions regarding the Offers should contact BofA Securities, Inc. at +1 (888) 292-0070 (toll-free) or +1 (980) 388-3646 (collect) or [email protected] or Citigroup Global Markets Inc. at +1 (800) 558-3745 (toll-free) or +1 (212) 723-6106 or [email protected]. Latham & Watkins LLP is serving as legal counsel to Paramount and Cahill Gordon & Reindel LLP is serving as legal counsel to the Dealer Managers.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security, and does not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Paramount, a Skydance Corporation

Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. PSKY's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.

PSKY-IR

Cautionary Note Concerning Forward-Looking Statements

This communication contains "forward-looking statements" regarding the Acquisition and the other transactions referred to herein. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the Acquisition will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained or will be obtained subject to conditions that are not anticipated; the possibility that the transactions described herein will not be completed in the expected timeframe or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Acquisition; potential adverse effects to the businesses of Paramount or WBD during the pendency of the Acquisition, such as employee departures or distraction of management from business operations; negative effects of the announcement or the consummation of the Acquisition on the market price of WBD or Paramount stock; the risk of stockholder litigation relating to the Acquisition, including resulting expense or delay; the potential that the expected benefits and opportunities of the Acquisition, if completed, may not be realized or may take longer to realize than expected; risks related to the streaming business of the post-Acquisition combined business (the "Combined Company"); the adverse impact on the Combined Company's advertising revenues as a result of changes in consumer behavior, advertising market conditions, and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to the Combined Company's decision to invest in new businesses, products, services, and technologies, and the evolution of the Combined Company's business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of the Combined Company's content; damage to the Combined Company's reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining the Combined Company's intellectual property rights; domestic and global political, economic and regulatory factors affecting the Combined Company's business generally or the Acquisition; the inability to hire or retain key employees or secure creative talent; disruptions to the Combined Company's operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount's ability to integrate, the businesses of Paramount Global, Skydance Media, LLC, and WBD successfully and to achieve anticipated synergies, including in the amounts or on the timelines anticipated to realize such synergies; litigation related to the Acquisition and other matters or transactions; risks associated with the Combined Company's holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; risks related to our indebtedness, including our substantial outstanding debt obligations, our ability to incur substantially more debt and our ability to meet the financial and other covenants contained in the agreements governing the indebtedness of Paramount, WBD, or the Combined Company. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," Paramount's most recently filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 4, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and Paramount's subsequent filings with the SEC, and in WBD's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, including in the section captioned "Item 1A. Risk Factors," WBD's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026, and WBD's subsequent filings with the SEC. Neither Paramount nor WBD undertakes to update any forward-looking statement as a result of new information or future events or developments, except as required by law.

SOURCE Paramount Skydance Corporation

DOMA Perpetual Capital Management LLC (PRNewsfoto/DOMA Perpetual) DOMA ASSERTS THAT THE $16.20 PER SHARE OFFER MATERIALLY UNDERVALUES INMODE AND ITS LONG-TERM POTENTIAL

DOMA BELIEVES THE BID EXPLOITS THE DEPRESSED VALUATIONS CREATED BY YEARS OF CEO-LED UNDERPERFORMANCE

DOMA EXPLICITLY REJECTS THE CURRENT TERMS AND URGES THE BOARD TO UPLHOLD ITS FIDUCIARY DUTIES

, /PRNewswire/ -- DOMA Perpetual Capital Management LLC, a significant stockholder of InMode Ltd. (NYSE: INMD) ("InMode"), today sent a letter to the Board of Directors of InMode (the "Board").

The letter can be downloaded here

The full text of the letter follows:

June 26, 2026

To the Board Member of InMode:

As of the date of this letter, DOMA Perpetual Capital Management LLC ("DOMA") and its affiliates beneficially own approximately 4.63% of the outstanding ordinary shares of InMode Ltd. ("InMode" or the "Company").

We are writing as a concerned shareholder regarding the recently proposed acquisition of the Company led by the Chief Executive Officer in partnership with a group of investors. The circumstances surrounding this proposal raise serious concerns about conflicts of interest, governance, the Board's fiduciary responsibilities, and the fairness of the proposed transaction.

We believe the proposal materially undervalues the Company, particularly in light of its long-term potential and intrinsic assets. It is difficult to ignore that this proposal also follows a long period of operational underperformance under the current CEO's leadership. We have previously asked the Board, in a public communication dated May 9, 2025, to replace the CEO precisely because of his sustained underperformance, and that same CEO now appears positioned to benefit from the proposed transaction.1 In our view, these circumstances warrant close scrutiny, and DOMA reserves all of its rights in connection with the proposed transaction.

We strongly believe the proposal would allow management to capitalize on a depressed valuation that developed during its own stewardship and that, in our view, management's performance helped create. Such dynamics are deeply troubling from a governance perspective.

The Board has fiduciary obligations to act in the best interests of all shareholders, not management or any specific investor group. In this context, we urge the Board to take the following actions:

Establish a fully independent special committee with no ties to management to evaluate the proposal. Retain international independent financial and legal advisors to conduct a rigorous valuation and fairness assessment. Conduct a broad and transparent market check inviting public offers to determine whether superior offers exist. Ensure that shareholders are provided with full and fair disclosure regarding the process, assumptions, and any potential conflicts of interest. Any transaction that allows insiders to acquire the Company at a price influenced by their own stewardship must be subject to the highest level of scrutiny. Failure to do so could expose the Company and the Board to significant shareholder value destruction, as well as reputational and legal risk.

Shareholders rely on the Board to uphold strong governance standards and to protect against precisely this type of conflicted transaction. I trust that you will take these responsibilities seriously and act accordingly.

At the current offer of $16.20/share DOMA does not support the proposal and intends to vote against the transaction.

Sincerely,

Pedro Escudero
CEO & CIO
DOMA Perpetual Capital Management LLC

This letter has been prepared by DOMA. The views expressed herein reflect DOMA's opinions and are based on publicly available information regarding the Company. DOMA recognizes that the Company or others may have information not available to DOMA that could lead them to disagree with DOMA's views or conclusions. DOMA reserves the right to change or modify its views, opinions, intentions, or positions at any time and for any reason, and disclaims any obligation to update or revise the information contained herein, except as may be required by applicable law.

This letter was not prepared by, and has not been endorsed by, InMode Ltd. This letter is provided for informational purposes only and is not intended to be, and should not be construed as, an offer to sell or a solicitation of an offer to buy any security, or as a recommendation to purchase or sell any security. DOMA is not currently soliciting proxies, consents, authorizations, or voting commitments with respect to any securities of the Company. One or more funds managed by DOMA currently beneficially own shares of the Company.

Certain statements in this letter may constitute forward-looking statements. These statements reflect DOMA's current views and expectations, speak only as of the date hereof, and are subject to risks, uncertainties, and assumptions that could cause actual results or developments to differ materially from those expressed or implied.

PR Newswire, May 9, 2025, DOMA Perpetual Sends Letter Urging Board of Directors of InMode Ltd. to Resume Share Repurchase Program (urging the Board, among other actions, to replace the Chief Executive Officer), https://www.prnewswire.com/news-releases/doma-perpetual-sends-letter-urging-board-of-directors-of-inmode-ltd-to-resume-share-repurchase-program-302451097.html SOURCE DOMA Perpetual

First Graphene Ltd (ASX:FGR, OTCQB:FGPHF, FRA:M11) earlier this week confirmed it had completed the acquisition of USA-based MITO® Material Solutions, with managing director and CEO Michael Bell telling Proactive the transaction had moved quickly and gave the company a stronger commercial platform in the United States.

Bell said First Graphene completed the deal within “sort of five or six days” of signing the agreement, describing the rapid turnaround as a reflection of the motivation shown by both teams. He said it was “a testament to both our team and the MITO® team being pretty motivated to get the deal across the line”.

The acquisition also brings MITO® Material Solutions chief executive officer Haley Marie Keith into First Graphene Ltd (ASX:FGR, OTCQB:FGPHF) as vice president of business development. Bell said Keith would lead US business operations, business development, commercial activity and promotion from Indiana.

For investors, the appointment appears to be an important catalyst in the company’s US expansion strategy. Bell said Keith brought “a huge amount of experience” in the US market, composites and the MITO® Material Solutions portfolio. He described her appointment as “a fairly clear line in the sand” that showed First Graphene Ltd was committed to growing its US business.

Bell said the scale of the US market required a focused approach. Drawing on previous experience, he said companies could not assume one person could represent a business across the entire country, noting that the market was vast and often required a state-by-state focus.

The company is initially looking at opportunities across aerospace, transportation and defence, although Bell said those sectors were likely to move more slowly. In the near term, First Graphene Ltd also intends to build on MITO® Material Solutions’ validation work in commercial sporting goods, where the acquired business already has clients.

Revenue growth and pipeline development were also highlighted. Bell said First Graphene Ltd had recently expanded from five new clients to six, with another footwear company coming across the line in recent days. He added that the time taken to move customers from inquiry to execution or production was speeding up.

Bell said the company had a pipeline approaching 700 opportunities, ranging from early-stage discussions to projects that had been in development for up to three years. He also pointed to a nearer-term group of around 30 to 40 potential clients in areas such as marketing releases and regulatory approvals, which he said could become contributors to revenue over the next six months.

Interview highlights First Graphene Ltd has completed the acquisition of USA-based MITO® Material Solutions within about five or six days of signing the agreement. Michael Bell said the fast completion reflected strong motivation from both the First Graphene Ltd and MITO® Material Solutions teams. MITO® Material Solutions chief executive officer Haley Marie Keith has joined First Graphene Ltd as vice president of business development. Keith will support US business operations, business development, commercial activity and promotion from Indiana. Bell said Keith brings significant experience in the US market, composites and the MITO® Material Solutions portfolio. First Graphene Ltd sees the appointment as a “line in the sand” showing its commitment to expanding in the United States. The company is targeting opportunities across aerospace, transportation, defence and commercial sporting goods. Bell said MITO® Material Solutions has already validated products in commercial sporting goods, giving First Graphene Ltd a base to grow from. First Graphene Ltd has added a sixth client in recent months, including another footwear company. The company has a pipeline approaching 700 opportunities, with 30 to 40 potential clients in later-stage areas such as marketing releases and regulatory approvals.

Proactive: Welcome back to Proactive Investors. I’m your host, Kerry Stevenson. I’ve asked Michael Bell to come back. He is the managing director and CEO of First Graphene Ltd, ASX code FGR. The reason I’ve asked Michael back is that the last time I had him on, which was only a couple of weeks ago, we were talking about the acquisition of MITO® Material Solutions. That has now closed. The deal is done, but First Graphene Ltd has also made its first hire in the United States. This looks like rapid global expansion. Michael, congratulations on closing the deal. We talked about the deal last time. Talk to us about closing the deal. It was a pretty quick turnaround.

Michael Bell: Yes, we managed to get it closed within sort of five or six days from signing the agreement. It was really a testament to both our team and the MITO® team being pretty motivated to get the deal across the line and get into it. We got it wrapped up the other week, and we also made our first hire as part of that deal.

Haley Marie Keith, who is the CEO of MITO® Material Solutions, has come across to First Graphene Ltd. She will head up our business operations, business development, commercial and promotion within the United States. She is based out of Indiana and brings a huge amount of experience in both the US market and composites, but also the MITO® portfolio. She will really help us drive that forward.

It is also a fairly clear line in the sand of our intent to grow the US business. There is huge opportunity there. As we immerse ourselves more, both in the MITO® materials as well as the First Graphene PureGRAPH line, we start to understand the true potential of the United States. It is a line in the sand saying we are committed to growing that side of the business.

Proactive: Is the US market a tough one to break into, Michael? I know it is a big market. It is huge, isn’t it?

Michael Bell: It is big. I have had previous experience of trying to grow businesses in the United States out of a company that I was a partner in, in New Zealand. That taught us some very hard lessons in terms of the size of the market. Where you think one person can represent you across the United States, you need to focus on a state basis because the market is so vast.

How I apply that to Haley Marie Keith is that she has a big role and a very broad opportunity. It will take some really critical focus on certain applications, certain client bases and so on.

Proactive: Talking about focus, are you going to focus more on government or are you going to focus more on private?

Michael Bell: It is a good question. The products that we have acquired from MITO® Material Solutions, and the ones that we see proving the most successful and having the fastest timeline, would be aerospace, transportation and defence. Those are probably slower-moving industries.

What MITO® Material Solutions has done is take its products and validate them in the commercial sporting goods segment. It has clients in those spaces and we have a pipeline to expand that. We will probably continue focusing on that, pushing that and growing the sporting goods side, while at the same time advancing the pipeline that MITO® Material Solutions has established in bigger industries like aerospace, transportation and defence.

Proactive: Before we finish up, it is important for our audience and investors to know that First Graphene Ltd has a very full pipeline, which means growth is happening. The company also already has revenue generation. What is that looking like?

Michael Bell: It is strong. It is growing. We mentioned previously, I think in our last call, that we had added five clients in the last couple of months. That has now expanded into a sixth client. We got another footwear company across the line just in the last few days.

That tax rate, or that time to get people from inquiry to executing or getting it into production, is speeding up. We have a big pipeline, somewhere up towards 700 different opportunities, somewhere between a week and three years deep in development. We have also got that really good next wave of clients, sort of 30 or 40 of them, that are in marketing releases, regulatory approvals and that sort of phase. Those are coming on and are our next contributors to revenue over the next six months.

Proactive: The US market is a major focus. MITO® Material Solutions has now been acquired, and the deal is done. More importantly, MITO® Material Solutions CEO Haley Marie Keith is joining First Graphene Ltd as vice president of business development as the company strikes out into a big US market. First Graphene Ltd’s ASX code is FGR. Michael is taking strides to expand and First Graphene Ltd is generating revenue. Michael, good to chat. Talk to you next time.

Michael Bell: Thanks so much.

Joel Greenblatt’s Magic Formula ranks stocks on two factors: earnings yield (EBIT divided by enterprise value) and return on capital. It surfaces good companies trading at cheap prices.

For retirees, “cheap and high-quality” is only the starting point. Income reliability, drawdown control, and earnings predictability matter as much as a low multiple. Here is a look at how three Magic Formula candidates stack up, ranked from least to most appropriate for a retirement portfolio.

3. Peabody Energy Peabody Energy (NYSE: BTU | BTU Price Prediction) screens as the deep-value, optionality-rich name Greenblatt enthusiasts love. Shares closed most recently at $23.69, with a price-to-book ratio of 0.85 and a forward P/E near 22x. The one-year return of 83.8% reflects renewed enthusiasm for coal tied to AI data-center power demand.

The retirement case breaks down on consistency. Q1 FY26 produced an EPS of −$0.26 versus a $0.22 estimate, a −218% earnings surprise, after Centurion mine commissioning issues caused roughly $80 million of damage to the Seaborne Met segment. CEO Jim Grech cited “temporary equipment and roof control challenges.” The $0.075 quarterly dividend has held since Q3 2023. However, the historical record shows cuts from $0.145 to $0.115 during the 2018 downturn and losses from 2015 through 2020. Cyclical coal is a trade, rarely a retirement holding.

2. Molina Healthcare Molina Healthcare (NYSE: MOH) is the classic Magic Formula recovery setup. The managed-care operator trades at a forward P/E of 38x against trailing revenue of $43.1 billion. Shares rebounded 24.5% year to date to $216.04, though that still is 26.6% below year-ago levels.

Q4 2025 delivered an ugly adjusted EPS of −$2.75 against a $0.50 estimate, but Q1 2026 turned with reported EPS of $2.35 versus $1.91 expected, a 23.04% beat. CEO Joseph Zubretsky stated: “We believe that the imbalance between rates and trend marks 2026 as a trough year for Medicaid industry margins.” Management guides to at least $5.00 in adjusted EPS for 2026, burdened by Florida contract costs and MAPD underperformance, with embedded earnings above $11.00 by 2027 to 2029.

For retirees, the problem is income. Molina pays no dividend, regulatory risk on Medicaid rates is real, and operating cash flow turned negative $535 million in FY2025. It is a value bet on a regulated turnaround that offers no income while investors wait..

1. H&R Block H&R Block (NYSE: HRB) is the cleanest fit for the Magic Formula and retirement portfolios. The tax-prep franchise trades at a trailing P/E of 6x and forward P/E of 6x, with a return on equity of 67.9% and an operating margin of 43.2%. That combination of a low multiple and high capital returns is precisely what Greenblatt targets.

Q3 FY26 results were strong: adjusted diluted EPS of $6.02 beat the $5.77 estimate, revenue of $2.40 billion grew 5.31% year over year, and net income rose 17.51%. Management raised FY2026 guidance to adjusted EPS of $5.10 to $5.20 on roughly $3.91 billion to $3.92 billion in revenue. CEO Curtis Campbell called the quarter “an important inflection point” as the assisted channel gained share for a third consecutive year.

Capital return crystallizes the retirement thesis. The quarterly dividend stepped up to $0.42 from $0.375, extending a 60-year streak of consecutive quarterly dividends. The board added an additional $100 million buyback authorization on top of the roughly $700 million remaining under the existing $1.5 billion program. Year-to-date capital returns reached $560.9 million. The dividend held flat through both the 2008 crisis and the 2020 pandemic. With a beta of 0.37 and a 4.7% yield, the volatility profile matches what an income-focused investor needs, though seasonal revenue concentration and AI-native tax competition remain genuine risks.

Bringing the Formula Back to Retirement Greenblatt’s framework surfaces all three names as cheap businesses generating real returns on capital. The retirement filter separates them. Peabody is a commodity play masquerading as a value stock. Molina is a regulated turnaround with no income to collect during the wait. H&R Block pairs a high-margin, cash-generative franchise with the longest dividend history in this group and a management team that is actively shrinking the share count. For a retiree using the Magic Formula as a starting point, H&R Block stock survives the second screen.

SpaceX logo as an employe looks at his phone while making his way to work at the company’s facility on the day of the SpaceX IPO, in Hawthorne, California, U.S. June 12, 2026. REUTERS/Mike... Purchase Licensing Rights, opens new tab Read more

June 26 (Reuters) - Even by SpaceX (SPCX.O), opens new tab standards, Friday is shaping up as an eventful trading session as investment funds tracking Russell indexes prepare to add billions of dollars' worth of Elon Musk's internet and rocket company to their ​holdings.

After a blockbuster initial public offering this month, SpaceX's stock has been on a wild ride, ‌soaring 67% to its June 16 intraday high of $225.64 before tumbling to Thursday's $153 close.

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The stock remains well above the $135 IPO price as investors assess how to value a company that lost $4.9 billion last year, but that backers expect to dominate the satellite internet, AI and ​commercial space launch markets that they believe will define the next decade of global infrastructure.

FTSE Russell will add ​SpaceX to its Russell U.S. indexes after Friday's close of trading as part of its semi-annual ⁠index reconstitution. That means passively managed exchange-traded funds that track Russell indexes, such as the iShares Russell 1000 ETF (IWB.P), opens new tab, ​will have to add SpaceX shares to their portfolios. The event will likely take place in a narrow window toward ​market close on Friday as fund managers attempt to minimize the "tracking error" between their funds' performance and the index that can result if their buy-in price differs from the closing price.

While SpaceX's $2 trillion market capitalization makes it almost as valuable as Amazon (AMZN.O), opens new tab, only about $100 billion ​of shares have been listed for trading on the stock market, with the rest owned by Musk, other insiders ​and employees. Passively managed funds will need to buy almost $3 billion worth of SpaceX shares to match the Russell indexes they track, ‌Jefferies estimated ⁠in a report this month. That could mean a squeeze as Friday's closing auction approaches, though options positioning appeared muted.

SpaceX options contracts set to expire on Friday are priced for a share price swing of 3.6% in either direction by the end of the week, Trade Alert data showed.

SpaceX is also set to be added to the tech-heavy Nasdaq ​100 (.NDX), opens new tab in July, an event ​that will force large index ⁠funds such as the Invesco QQQ ETF, which tracks that index, to buy its shares.

Following its losses in recent sessions, SpaceX is trading at 107 times its 2025 sales, ​an astronomical valuation. By comparison, AI heavyweight chipmaker Nvidia (NVDA.O), opens new tab recently traded at 21 times sales.

​S&P Global blocked ⁠SpaceX from joining the S&P 500 index (.SPX), opens new tab after it said this month it would not change its inclusion criteria to accommodate megacap IPOs. To be included in the S&P 500, a company must be profitable in its most recent quarter as well ⁠as for ​the sum of its most recent four quarters, according to one ​of the rules S&P left unchanged.

The S&P 500 addition in 2020 of another Musk company, Tesla (TSLA.O), opens new tab, resulted in a closing squeeze that sent shares up ​6%.

Reporting by Noel Randewich in San Francisco and Saqib Iqbal Ahmed in New York; editing by Colin Barr, Rod Nickel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

San Francisco correspondent covering the stock market with a focus on Big Tech, semiconductors and other Silicon Valley companies