Track market-moving stories before they get noisy

“When we lead with sport, we win,” Nike CEO Elliott Hill said. SANTA MONICA, CALIFORNIA - JUNE 10: A pedestrian walks by a display of international soccer player photos outside of a Nike store on June 10, 2026 in Santa Monica, California. Retailers and restaurants are getting ready for the World Cup, which begins on June 11 and runs through July 19. (Photo by Justin Sullivan/Getty Images)

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Nike just delivered a sobering fiscal 2026 earnings report, underscoring how difficult it is for a market leader to play catch-up in a category it once defined. While the company still expects headwinds through the first two quarters of fiscal 2027, it sees momentum building—led by outstanding performance around the World Cup, including over 1.5 billion views of the “Rip the Script” video during the first week of play. World Cup tailwinds haven’t yet shown up in the latest quarter, which ended May 31.

Now with a challenging fourth quarter and full year behind it, Nike is going on offense. “We’re not building this business for the next quarter or the next year. We’re building it for the decade to come,” CEO Elliott Hill said in the earnings call.

Nike will realize that goal through the Sport Offense strategy: a new corporate structure built around cross-functional teams organized by sport. Essentially, Sport Offense puts sports culture—the distinct identity, passion and performance expectations of each sport—back to the center of everything “Nike,” reversing its product-centric approach of recent years. Sport Offense marks a return to the sport-led model that originally made Nike great. “When we lead with sport, we win,” Hill said.

Early Innings Of Nike’s TurnaroundWhile the full year revenues beat Wall Street expectations—coming in flat at $46.4 billion (down 2% constant currency)—the fourth quarter was down 1% reported (-4% currency neutral) to $11 billion. A 3% uptick in North America to $4.8 billion couldn’t overcome a staggering 17% constant-currency decline in China to $1.3 billion and a 6% drop to $3 billion in EMEA.

A similar mixed picture runs throughout the latest earnings report. Quarterly net income jumped from $211 million last year to $1.1 billion this year, thanks to a one-time $986 million tariff refund. For the full year, net income fell 3% to $3.1 billion, and earnings per share were down 3%.

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Year-end Nike Brand revenues increased 1% to $45.2 billion (-1% constant-currency), Converse brand continued to be a drag, down 31% to $1.2 billion. Hill said the Converse brand strategy was being “sharpened” around the Chuck Taylor and Jack Purcell lines. Basketball star Shai Gilgeous-Alexander, previously with Converse, has now moved over to the Nike Basketball lineup.

Distribution was uneven too. Wholesale, accounting for nearly 60% of revenues in 2025, rose 6% for the year (+4% constant currency), while Nike Direct revenues dropped 6% (-8% constant currency) with digital sales down 12% and Nike-owned stores off 4%.

A return to growth at Foot Locker was the quarter’s wholesale highlight. For the first time in four years, Foot Locker posted positive revenue growth and retail sales comps.

On the plus side, Nike is mending fences with independent retail partners, key influencers in the sporting goods sector. But the shortfall in Nike Direct indicates some brand weakness. It is taking steps to correct that by elevating the customer experience in-store with a focus on “celebrating sports moments.”

Some 150 stores have gotten the “sports-led experience” makeover to date and Nike plans to elevate 50% of its owned store fleet by the end of fiscal 2027. Last year, the company operated 85 in-line Nike stores in the U.S. and 61 internationally. Factory stores make up the bulk of Nike brand’s retail footprint, over 200 in the U.S. and nearly 550 internationally.

Coming up short this quarter was Nike Sportswear, down double-digits, and Jordan Streetwear. Acknowledging the critical need to get both back on track—together they represent about half of company revenues—Hill said, “Our point of differentiation—what creates authenticity for Nike—is our sport business. That creates the halo over both of those brands and what differentiates us from fashion brands.”

During his remarks, Hill pointed to Serena Williams wearing the Radical Air sneaker on the Wimbledon court. The innovation in that sneaker will start to show up in Sportswear soon.

That’s the halo the Sport Offense is designed to create: sport-born authenticity that lifts every brand across the portfolio and every customer touchpoint.

On OffenseAgainst a backdrop where its more lifestyle-oriented sportswear and streetwear ranges flagged, sports performance offerings got a lift. “Our renewed obsession with sport and the success of our athletes is fueling energy for our brands and building momentum in our performance business, which grew mid-single digits this fiscal year,” Hill reported.

Running was the first sport to get the Sport Offense makeover and the results are showing: Nike running delivered five consecutive quarters of double-digit growth and added about $1 billion to its running business. Hill also added that across Europe and North America, Nike footwear gained 5 points of running market share— more than any other top-five brand. He didn’t name names, but Adidas, Asics, New Balance and Puma are chief competitors in the category.

Training, basketball, all-conditions gear are also being realigned around the Sport Offense strategy, but key at the moment is global football, where Adidas is giving it a run for its money. Brand Adidas sales were up 13% constant currency in fiscal 2025 and advanced 14% through first quarter ending March 31. Adidas is also the only sportswear global partner with FIFA, and is dressing 14 teams in the World Cup, compared to Nike’s 12.

World Cup Forward MomentumHill pointed to global football as the best example of how the Sport Offense is playing out. “We’re not treating the tournament as a single moment. We’re using it to reshape our business, telling a connected story over time, engaging different communities in relevant ways and building momentum that carries well beyond the tournament.”

Pivotal to its World Cup moment—and long-term global football strategy—is the storytelling embedded in the six-minute “Rip the Script” long-form video and its numerous short-segment spin-offs.

In a Business of Fashion podcast, Helena Thornton, vice president of Nike brand management, shared, “We live in an attention-deficit culture, don’t we? You’ve got three seconds to catch somebody’s attention, and we said, as a team, if the story is good enough, people will want to watch it.”

With over 1.5 billion views, “Rip the Script” has massively broken through, with Thornton noting that many people are staying around for the whole thing—not to mention those who come back to catch the Easter eggs liberally stashed along the way. “It’s so easy in today’s world to get lost in all of the data and all of the analytics, but if your story is good enough, people are captivated,” she continued.

Nike is counting on World Cup fever to carry on, even if the company hasn’t factored it into its muted guidance for the first half of fiscal 2027. To date, it’s racked up a number of wins:

Nike has sold 2.5 times as many national team kits as in the same period before the 2022 World Cup. The Aero-Fit sports apparel line, designed to help athletes compete in extreme conditions, has accelerated demand. The Mercurial boot became Nike’s fastest-selling cleated footwear launch in the history of Nike Direct.More than 5,000 football retail doors globally have been elevated around the World Cup. The World Cup “halo” is expected to drive high-single-digit demand growth in the first quarter, a company spokesperson shared with me.Significantly, Nike is replacing Adidas as Germany’s national team kit partner next year—a real blow for Adidas on its home turf.

Sport Offense Puts The Swoosh Back In NikeJefferies analyst Randal Konik believes that Nike bottomed out in the fourth quarter and is stabilizing. Yet he asserted, “Nike’s fiscal fourth quarter results confrm that the right strategies are in place under CEO Hill and are proving themselves out,” pointing to improved margins, disciplined cost management in place, stable inventories and performance growing mid-single-digits.

“The real signal for us is North America—that geography grew 3% and wholesale was up 10%,” he continued. “Getting wholesale back was a central piece of our upgrade thesis, and now it’s actually happening.”

While Konik offers a largely positive read of the latest results, GlobalData’s Neil Saunders is more measured. “There is no doubt that Nike has been trying to aim higher and run faster. Despite these efforts, it has still ended its fiscal year with a whimper rather than going out with a bang,” and he added, “Full recovery remains elusive and a long way off.”

CEO Hill shares Saunder’s frustration. “Overall, the results aren’t there yet. We know we are not living up to our full potential.” However, he feels the renewed energy among his team and momentum growing underneath the latest numbers—and those still to come.

“I see the progress. I see the structural change. I see the foundation getting stronger. I see the Sport Offense taking hold. I see a team that’s been tested and is ready for what’s in front of us,” he concluded. “The goal isn’t one championship. It’s to build a team that can do it again and again.”

See Also:

ForbesAdidas Leans Into Soccer While Nike Chases Culture In World Cup Marketing ShowdownBy Pamela N. Danziger

The upcoming report from PepsiCo (PEP - Free Report) is expected to reveal quarterly earnings of $2.19 per share, indicating an increase of 3.3% compared to the year-ago period. Analysts forecast revenues of $23.85 billion, representing an increase of 4.9% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific PepsiCo metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus among analysts is that 'Reported Net Revenue, GAAP measure- IB Franchise (International Beverages Franchise)' will reach $1.46 billion. The estimate indicates a year-over-year change of +6.6%.

It is projected by analysts that the 'Reported Net Revenue, GAAP measure- EMEA (Europe, Middle East and Africa)' will reach $4.85 billion. The estimate points to a change of +7% from the year-ago quarter.

Based on the collective assessment of analysts, 'Reported Net Revenue, GAAP measure- PBNA (PepsiCo Beverages North America)' should arrive at $7.16 billion. The estimate suggests a change of +5.3% year over year.

The consensus estimate for 'Reported Net Revenue, GAAP measure- PFNA (PepsiCo Foods North America)' stands at $6.54 billion. The estimate indicates a year-over-year change of +1%.

Analysts expect 'Reported Net Revenue, GAAP measure- LatAm Foods' to come in at $2.83 billion. The estimate indicates a change of +11.1% from the prior-year quarter.

The combined assessment of analysts suggests that 'Reported Net Revenue, GAAP measure- Asia Pacific Foods' will likely reach $1.07 billion. The estimate points to a change of +7.2% from the year-ago quarter.

Analysts' assessment points toward 'Core Operating Profit, non-GAAP measure- PFNA (PepsiCo Foods North America)' reaching $1.57 billion. Compared to the present estimate, the company reported $1.49 billion in the same quarter last year.

According to the collective judgment of analysts, 'Core Operating Profit, non-GAAP measure- PBNA (PepsiCo Beverages North America)' should come in at $1.07 billion. The estimate compares to the year-ago value of $994.00 million.

Analysts forecast 'Core Operating Profit, non-GAAP measure- IB Franchise (International Beverages Franchise)' to reach $587.22 million. Compared to the current estimate, the company reported $538.00 million in the same quarter of the previous year.

The average prediction of analysts places 'Core Operating Profit, non-GAAP measure- LatAm Foods' at $512.03 million. Compared to the present estimate, the company reported $545.00 million in the same quarter last year.

Analysts predict that the 'Core Operating Profit, non-GAAP measure- Asia Pacific Foods' will reach $110.28 million. The estimate is in contrast to the year-ago figure of $93.00 million.

The collective assessment of analysts points to an estimated 'Core Operating Profit, non-GAAP measure- EMEA (Europe, Middle East and Africa)' of $722.01 million. The estimate compares to the year-ago value of $657.00 million.

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Shares of PepsiCo have experienced a change of +1.5% in the past month compared to the -1.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), PEP is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Moderna outlined a strategy to expand its mRNA platform beyond vaccines into multiple therapies.Shares of the company rallied as Science Day spotlighted oncology, autoimmune and cell therapy programs.MRNA expects early-stage programs, including in vivo CAR-T and CAR-M therapies, to enter the clinic by 2027. Shares of Moderna (MRNA - Free Report) have surged 33.5% over the past week, adding nearly $8 billion to the company's market value.

The rally was sparked by Moderna's Science Day, where management outlined its vision to evolve beyond vaccines into a diversified biotechnology company. The event showcased how the company plans to leverage its messenger RNA (mRNA) platform across multiple therapeutic areas, including oncology, autoimmune diseases and cell therapy, while unveiling a new research and early development framework to accelerate pipeline innovation.

Moderna Leverages Its mRNA Platform Beyond VaccinesAs part of its long-term strategy, the company has grouped its business into three development horizons. Moderna emphasized that its commercial products, late-stage pipeline assets — including respiratory vaccine programs and its Merck (MRK - Free Report) -partnered personalized cancer therapy — as well as investigational rare disease therapies, represent Horizon 1, the foundation of its current business.

Beyond these established programs, Moderna introduced Horizon 2 and Horizon 3, underscoring its ambition to expand the application of its mRNA platform well beyond vaccines. Horizon 2 comprises emerging therapeutic modalities already in clinical development, including cancer antigen therapies, T-cell engagers, cell therapy enhancers and an investigational therapy for multiple sclerosis.

Horizon 3 comprises earlier-stage research programs that have not yet entered the clinic but are expected to advance into first-in-human studies before the end of 2027. These include in vivo CAR-T and CAR-M cell therapies, which could become the company's next-generation growth platforms.

Moderna is not alone in broadening the application of mRNA technology. The company’s rival BioNTech (BNTX - Free Report) is also leveraging its mRNA platform beyond vaccines and building an extensive pipeline across oncology and other disease areas to diversify its long-term growth prospects.

Why Investors Are Paying Attention to MRNA StockInvestors appear to have welcomed Moderna's efforts to expand the use of its mRNA platform beyond vaccines. Among the highlights was mRNA-6007, the company's first investigational in vivo CAR-T candidate for autoimmune diseases such as systemic lupus erythematosus (SLE), representing Moderna's entry into cell therapies. The program is part of the company's Horizon 3 pipeline, which management expects to advance into clinical studies by the end of 2027.

More broadly, the event underscored Moderna's strategy to use its mRNA platform to develop multiple classes of medicines spanning oncology, rare diseases, autoimmune disorders and cell therapies. By broadening the application of its mRNA platform across diverse therapeutic areas, the company aims to diversify future revenue streams beyond respiratory vaccines. The strategy appears to have resonated with investors, helping lift the stock to a 52-week high of $81.40.

MRNA’s Price Performance, Valuation & EstimatesShares of Moderna have skyrocketed more than 170% year today, significantly outperforming the industry’s 5.5% growth.

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From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 13.16 times forward 12-month sales, higher than the industry average of 1.91 times.

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Estimates for Moderna’s 2026 and 2027 bottom line have declined over the past 60 days.

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

Key Takeaways KMB could face higher input costs if oil averages about $100 per barrel in the second half of fiscal 2026.KMB targets 6% gross productivity again, backed by efficiency initiatives and supply chain investments.KMB said about 80% of its cost basket is covered through contracts, hedging and cost management. Kimberly-Clark Corporation (KMB - Free Report) faces near-term challenges related to increased input costs. At its first-quarter fiscal 2026 earnings call, the company indicated that if oil prices average around $100 per barrel in the second half of fiscal 2026, the company could face incremental gross input costs of approximately $150-$170 million. However, this potential impact has not been incorporated into its outlook due to ongoing uncertainty and multiple evolving factors.

KMB is focused on managing rising input costs through strengthened cost management capabilities, pricing discipline and continued industry-leading productivity. The company has also enhanced its Revenue Growth Management discipline, reinforcing its ability to manage pricing effectively. It remains committed to a disciplined approach centered on maintaining pricing net of commodity input cost neutrality over time, while leveraging all available tools to uphold this pricing and cost management framework.

Kimberly-Clark continues to execute a strong pipeline of productivity initiatives, consistently delivering 6% gross productivity for two consecutive years. It has already achieved 6% gross productivity in the first quarter of fiscal 2026, and remains on track to deliver the same level for the full year. 
Management highlighted a robust pipeline of efficiency initiatives while continuing to make significant investments in its North America supply chain. The previously announced $2 billion supply chain investment is progressing as planned, supporting its long-term operational priorities.

Additionally, the company noted that approximately 80% of its overall cost basket is covered through contractual arrangements, programmatic hedging and other cost management measures, providing greater visibility into input costs while supporting a disciplined approach to managing cost exposure. Overall, Kimberly-Clark believes its disciplined execution, productivity initiatives and integrated margin management framework support its ability to recover input cost inflation over time while remaining aligned with its long-term margin expansion plans.

The Zacks Rundown for KMBShares of this Zacks Rank #3 (Hold) company have gained 17% in the past six months compared with the industry’s growth of 4.8%.

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From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 15.29, lower than the industry’s average of 17.96.

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The Zacks Consensus Estimate for KMB’s current fiscal year earnings implies a year-over-year decline of 0.7%, while the consensus mark for next fiscal year earnings implies year-over-year growth of 0.5%.

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

ARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Church & Dwight Co., Inc. (CHD - Free Report) develops, manufactures and markets household, personal care and specialty products. At present, CHD carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for CHD’s current fiscal-year sales implies a decline of nearly 1%, and the same for current fiscal-year earnings implies growth of 6.2% from the year-ago reported figures. CHD reported a trailing four-quarter average earnings surprise of 6.5%.

Ollie’s Bargain Outlet Holdings Inc. (OLLI - Free Report) is a retailer of closeout merchandise and excess inventory in the United States. It holds a Zacks Rank #2.

The Zacks Consensus Estimate for Ollie Bargain’s current financial-year sales and earnings indicates 12.7% and 17.1% growth from the last year, respectively. OLLI reported a trailing four-quarter average earnings surprise of 4.9%.

Last week, the artificial intelligence (AI) community held its breath ahead of Micron Technology's (MU 5.68%) fiscal third-quarter earnings call. Both revenue and earnings per share (EPS) absolutely blew Wall Street's expectations out of the water. But interestingly enough, sales and profits weren't the most important takeaway from the report.

What most investors are overlooking is how Micron is reshaping its customer relationships. The company has implemented strategic customer agreements (SCAs) at a time when AI is driving unprecedented demand for memory and storage. These multiyear contracts provide committed volumes of DRAM and NAND while bringing higher revenue visibility and margin stability than traditional arrangements during prior boom cycles.

By shifting from transactional sales to long-term partnerships, Micron is quietly addressing the core bottleneck of matching the explosive demand for AI-driven infrastructure with reliable supply -- positioning the company for more durable financial performance in the years ahead.

Image source: Micron Technology.

Breaking down the scope of Micron's SCAs According to management, Micron has 16 SCAs across the data center, consumer, and automotive segments. To me, this is the most important figure from Micron's entire earnings report.

These agreements include four "very large customers" and three medium-sized businesses. The balance consists of smaller automotive companies. Management expects that once all the SCAs are completed, approximately half or more of the company's total revenue will stem from these agreements.

The breadth across end markets -- from AI accelerators to smartphones, PCs, and vehicles -- demonstrates that the business model applies broadly rather than being limited to a few hyperscalers.

How are Micron's SCAs structured? Micron's SCAs are structured as take-or-pay contracts with binding commitments to purchase specific volumes over multiyear terms. Most agreements last for five years, spanning calendar 2026 through the end of 2030. The smaller automotive agreements generally cover three years, however.

Management pointed out that the pricing framework includes a floor price that ensures robust gross margins well above Micron's historical peak levels, paired with a ceiling at or near current market prices for existing products. A smaller portion of the SCAs feature fixed pricing, while the rest remain subject to market conditions. Among the SCAs, 14 carry a cumulative minimum revenue commitment of approximately $100 billion over the remaining term.

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Why do Micron's SCAs matter for long-term value? Micron's SCAs fundamentally transform the company's business model by replacing cyclical spot pricing with contracted supply assurance and technology collaboration. In an environment where DRAM and NAND demand is expected to remain tight well beyond calendar year 2027, customers gain visibility into future memory availability while Micron secures predictable volumes and a floor on profit margins.

The result is significantly improved visibility into revenue, gross margins, and free cash flow -- all of which mitigate earnings volatility. The goal of the SCAs is to lock in a baseline of revenue and high-margin business through 2030, ultimately supporting higher, more predictable earnings per share, as floor pricing insulates profitability even if spot prices moderate.

This newfound predictability reduces the historical cyclical discount applied to memory stocks, supporting a more premium valuation profile for Micron over the multiyear horizon of these agreements. The combination of volume commitments and margin floors creates a more resilient earnings stream that aligns with accelerating AI infrastructure build-outs.

While smart investors understand that Micron's execution on new fab capacity and next-generation architectures remains essential, the SCAs meaningfully de-risk the company's financial outlook and reinforce its position as a transformational supplier in the AI chip value chain. In my eyes, this makes investing in Micron stock more compelling as a core position rather than a purely cyclical play to trade.

Taiwan Semiconductor Manufacturing (TSM 2.15%) is one of the most important semiconductor companies in the world, as it manufactures chips for almost all the leading companies that design chips for data centers, gaming consoles, smartphones, personal computers (PCs), cars, and factories, among other things.

It controls nearly three-fourths of the global foundry market, according to Counterpoint Research. Its nearest competitor has a market share of just 7%. Not surprisingly, TSMC exercises phenomenal pricing power in the foundry market, and that's the reason why this semiconductor stock is poised to skyrocket following the latest move it may make.

Image source: TSMC.

TSMC is reportedly raising the price of all its advanced manufacturing nodes As reported by Tom's Hardware, TSMC is likely to increase the prices of its advanced chipmaking nodes by 5% to 10%. Several customers use these advanced nodes to produce chips deployed in artificial intelligence (AI) data centers, smartphones, PCs, and other applications. TSMC gets 74% of its total revenue from selling chips made using advanced process nodes, which are classified as 7-nanometer (nm) or smaller.

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As advanced nodes account for a significant share of TSMC's revenue, the purported price hikes will eventually lead to stronger profitability. The Taiwan-based company's net profit margin increased by 7.4 percentage points year over year in Q1 to 50.5%. Given that the reported price increases are already being rolled out, TSMC's margins could get fatter as the year progresses.

What's worth noting is that analysts are projecting a 48% increase in the company's earnings per share in 2026 to $15.80. However, TSMC reported a 65% increase in earnings per share in Q1 to $3.49. So, the higher pricing reportedly set to take effect is likely to help TSMC deliver stronger earnings growth than the market expects.

A stronger-than-expected earnings jump could help the stock deliver more gains this year TSMC stock has gained 39% in 2026, as of this writing. Given that the company seems well-placed to beat analysts' earnings expectations this year due to its strong pricing power and the rapid growth of the AI chip market, further upside in the stock price cannot be ruled out.

Let's assume TSMC's earnings per share jump by 60% this year (almost in line with its Q1 year-over-year earnings growth) to $17.04, from $10.65 per share in 2025, and it trades at 30 times earnings (a discount to the tech-laden Nasdaq Composite index's average earnings multiple of 39), its stock price could reach $511. That implies a potential jump of 15% in this AI stock in the second half of 2026.

However, TSMC's ability to deliver above-average earnings growth could be rewarded with a premium valuation, suggesting it could deliver much stronger gains than anticipated.

Key Takeaways SLB became KOC's first technology partner under the Ahmadi Innovation Valley initiative.SLB will deploy AI, IIoT, reservoir and production technologies under the seven-year agreement.SLB plans to open an innovation center in Kuwait, with operations targeted to begin in 2028. SLB N.V. (SLB - Free Report) has secured a seven-year contract from Kuwait Oil Company (KOC) under the Ahmadi Innovation Valley (AIV) initiative, strengthening its long-term growth prospects in the Middle East. The agreement makes SLB the first contracted technology partner under KOC's flagship innovation program, reinforcing the company's leadership in digital energy technologies and advanced oilfield services.

Under the contract, SLB will collaborate with KOC to develop, evaluate and deploy technologies across artificial intelligence (AI), Industrial Internet of Things (IIoT), reservoir technologies, production optimization, water management and energy transition initiatives.

The award expands a relationship spanning more than 85 years and provides SLB with a long-duration revenue opportunity while strengthening its presence in one of the world's largest oil-producing regions. Beyond technology deployment, SLB plans to establish a dedicated Ahmadi Innovation Valley facility in Kuwait, with construction beginning in 2026 and operations expected to commence in 2028. The new center will support applied research, pilot projects, technology management and knowledge transfer, creating opportunities for future service contracts and strengthening customer relationships.

The contract reflects SLB's focus on growing advanced digital and technology solutions, which generate higher profit margins than standard oilfield services. The agreement also positions the company to benefit from the growing demand for AI-enabled field optimization and automation as energy companies modernize their operations. By becoming KOC's inaugural innovation partner, SLB enhances its Middle East footprint while generating additional cash flow, strengthening its business model and increasing investor appeal.

SLB currently carries a Zacks Rank #3 (Hold).

The business models of players providing equipment and services to energy companies including SLB are dependent on capital spending by the upstream players. Therefore, Weatherford International plc (WFRD - Free Report) , which provides equipment and services to energy companies is benefiting from energy players such as Vista Energy, S.A.B. de C.V. (VIST - Free Report) and Aker BP ASA (AKRBY - Free Report) . Both these companies have upstream operations and are enjoying a favorable pricing environment, with Brent crude oil prices trading above the $70-per-barrel mark, according to oilprice.com.

WFRD, VIST and AKRBY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Weatherford leverages its equipment and digital solutions to support oil and gas wells across 75 countries throughout their lifecycles. In the first quarter of 2026, WFRD achieved a major milestone in the U.K. sector by completing the initial deployment of its AlphaV casing system in Liverpool Bay. This historic whipstock installation in the Irish Sea lowered operational costs and delivered significant time savings for the project.

Vista operates 257,000 net acres in Argentina’s prolific Vaca Muerta basin, achieving a 67% year-over-year production growth to 134,741 barrels of oil equivalent per day (Boe/d) in the first quarter of 2026. Supported by this strong performance, VIST increased its full-year production guidance to 143,000 Boe/d.

Aker BP operates key Norwegian Continental Shelf (NCS) hubs like Alvheim, Edvard Grieg/Ivar Aasen, Valhall, Skarv and Ula, and holds a stake in Johan Sverdrup. AKRBY has strengthened its NCS portfolio by securing a 19% interest in high-potential exploration licenses, including Grosbeak, Swisher, Toppand and Rover.

Key Takeaways Elevance sued CMS over a Medicare Advantage Star Ratings change it says favored a competitor.ELV says the disputed ratings decision cost about $115 million in Medicare Advantage bonus payments.A ruling could reshape CMS' ratings process and affect insurer payments and competitive positioning. Elevance Health, Inc. (ELV - Free Report) recently filed a lawsuit against the Centers for Medicare & Medicaid Services (CMS), arguing that the agency unfairly changed the Medicare Advantage Star Ratings of one of its competitors after the ratings had already been finalized. Per reports, Elevance claims CMS gave the rival special treatment by recalculating its scores under a different standard while denying similar relief to other insurers.

The company indicates the move created an uneven competitive landscape. Through the lawsuit, Elevance is asking the court to overturn CMS' decision and restore a consistent ratings process for all Medicare Advantage insurers, according to reports.

The dispute centers on Medicare Advantage Star Ratings, which measure plan quality and directly affect bonus payments, marketing strength and member enrollment. According to the lawsuit, CMS revised a competitor's (Clover Health) ratings after identifying an error in its calculations but refused to apply the same approach across the broader industry. ELV estimates the disputed decision cost it about $115 million in Medicare Advantage quality bonus payments.

Elevance argues that once ratings are released, all insurers should be treated under the same rules instead of making company-specific adjustments. The outcome could have meaningful financial consequences for Elevance and other Medicare Advantage insurers.

Higher Star Ratings unlock quality bonus payments from CMS, improve rebate funding and make health plans more attractive during enrollment. Federal spending on Medicare Advantage quality bonuses is expected to top $13 billion this year, rising from 2025 even as the percentage of members in high-performing plans declines, per KFF.

If the court sides with Elevance, CMS could be forced to revisit its ratings process, potentially affecting payments and competitive positioning across the industry. If CMS prevails, the disputed ratings would remain in place, leaving Elevance at a competitive disadvantage against the benefited rival. The case also adds regulatory uncertainty for insurers that rely heavily on Medicare Advantage for future earnings growth.

ELV’s Price PerformanceElevance Health shares have gained 19.2% in the past year compared with the 1.4% rise of the industry.

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Zacks Rank & Other Key PicksElevance Health currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Medical space are CVS Health Corporation (CVS - Free Report) , Pediatrix Medical Group, Inc. (MD - Free Report) and Biodesix, Inc. (BDSX - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CVS Health’s 2026 bottom line suggests 10.2% year-over-year growth. CVS has witnessed 12 upward estimate revisions over the past 60 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 16.8%.

The Zacks Consensus Estimate for Pediatrix Medical’s full-year 2026 earnings indicates a 9.3% year-over-year increase. MD beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 21.3%. The consensus mark for revenues suggests 1.3% growth from the year-ago period.

The Zacks Consensus Estimate for Biodesix’s 2026 full-year earnings implies a 37.7% improvement from the year-ago reported figure. BDSX beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 25.6%. The consensus mark for its current-year revenues is pegged at $110.95 million, which indicates a 25.4% year-over-year increase.

Key Takeaways Carvana raised advertising expenses by $92 per retail unit sold in first-quarter 2026.Carvana sees advertising as a key growth pillar alongside referrals, repeat business and customer experience.CVNA says online used-car retail is still early, supporting continued broad-based marketing investment. Carvana Co. , a leading e-commerce platform for buying and selling used cars, isn't just selling more used cars—it's spending aggressively to ensure more consumers know, trust and choose its online car-buying platform.

Carvana increased its advertising expense by $92 per retail unit sold in the first quarter of 2026 as it continued investing in building customer awareness, understanding and trust in its online car-buying platform. The company currently holds nearly 2% of the U.S. used-vehicle retail market, while e-commerce adoption across other retail categories is around 20%, suggesting that online used-car retail remains in the early stages of adoption.

As Carvana scales, it expects to achieve meaningful SG&A leverage through continued operational efficiencies and greater absorption of fixed costs. Increasing awareness, understanding and trust is one of the company's three key growth pillars.

Carvana believes it is still in the early stages of telling its story to consumers and therefore sees ample opportunity to continue investing in advertising. The company expects its marketing efforts to remain broad-based across multiple channels to reach diverse customer segments. Although Carvana did not provide specific guidance on future advertising spending, its advertising expense per retail unit has remained relatively consistent over the past two to three quarters, which it considers a reasonable baseline going forward.

While Carvana is focusing on advertising to expand awareness of its online marketplace, other automotive retailers are pursuing digital strategies of their own to improve customer experience, increase efficiency and support profitability. CVNA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lithia Motors, Inc.’s digital platforms, Driveway and GreenCars, are helping boost profitability and expand its market presence. These e-commerce platforms let customers buy, sell and service vehicles online. Early results from Lithia’s investment in Wheels, a top fleet management company, are also strong. Its minority stake in Wheels creates powerful synergies between retail and fleet operations. Together, these moves strengthen Lithia’s mobility ecosystem and support customer retention and long-term profitability.

Group 1 Automotive, Inc. is steadily improving its sales process through digital tools, moving beyond just generating online leads to closing deals faster and at lower cost. Virtual finance and insurance are now available in about one-third of Group 1’s U.S. stores and handle roughly 20% of deals there, with positive customer feedback and lower compensation costs. At the same time, tools like AcceleRide, along with AI-based scheduling and CRM platforms, are helping Group 1 work more efficiently, improve deal conversions and deliver more consistent performance across its dealerships over time.

Carvana’s Price Performance, Valuation and EstimatesCarvana has underperformed the Zacks Internet – Commerce industry in the last six months. CVNA shares have plunged 20.2% compared with the industry’s decline of 4.8%.

Image Source: Zacks Investment Research

 
From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.37, higher than its industry’s 1.99.

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for Carvana’s 2026 and 2027 EPS has moved up 6 cents each in the past 60 days. 

Image Source: Zacks Investment Research

Three outlier inflow signals push biopharmaceutical firm Incyte Corporation (INCY) up 71% in a year.

INCY discovers, develops, and sells proprietary therapeutics focused on hematology, oncology, inflammation, and autoimmunity. The company’s first-quarter fiscal 2026 earnings report, INCY showed $1.27 billion in quarterly revenue (a 21% year-over-year gain) led by Jakafi ($758 million) and Opzelura ($143 million), net sales of $1.1 billion (a 20% rise), and offered annual net sales guidance of up to $4.94 billion, representing a 13% jump from the prior year. To expand its hematology business, the company also recently acquired a therapeutics firm focused on bleeding disorders.

It’s no wonder INCY shares are up 15% this year, and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Institutions Buying Incyte Institutional volumes reveal plenty. In the last year, INCY has endured some choppiness. But it’s once again enjoying strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in INCY shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.moneyflows.com Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Incyte.

Incyte Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, INCY has had strong sales and earnings growth:

3-year sales growth rate (+15%) 3-year EPS growth rate (+1,355%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +16.3%.

Now it makes sense why the stock has been generating Big Money interest. INCY has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Incyte has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

In the last year, INCY has drawn three outlier inflow signals and is up 70.7%. The blue bars below show when INCY was a top pick on the Outlier 20 report…Big Money support matters:

Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Incyte Price Prediction The INCY action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in INCY at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

Warren Buffett is a tough act to follow. He is arguably the greatest investor of his time, transforming Berkshire Hathaway (BRKA +1.41%)(BRKB +1.40%) into a massive holding company with almost 200 subsidiaries and a $330 billion equity portfolio, and he has trounced the S&P 500 over time.

However, Greg Abel, Buffett's handpicked successor, made his mark on the company in the first quarter of 2026, his first as CEO. Here's what it looks like, and how it could change the company's trajectory.

Image source: Getty Images.

Out with the old In his first annual shareholder letter as CEO, Abel committed to upholding the values that shaped Berkshire Hathaway over the 60 years Buffett ran it. He said that "Berkshire's culture and values remain unchanged and will continue into perpetuity," and he specified the commitment to allocating capital efficiently with a business underpinned by a robust insurance operation. He echoed Buffett's maxim that the company's job is to be "exceptional stewards of our shareholders' capital."

He laid out the principles behind his investing strategy, which include:

Investing in companies that Berkshire understands and that have durable, long-term economic moats. Choosing partners with integrity who understand their own customers. Avoiding companies that could tarnish Berkshire's reputation and aren't good for society. Acting quickly and concentrating the portfolio in a few, high-conviction stocks. Staying disciplined. In the company's equity positions, Abel followed these principles when he made his moves. Most noticeable was the immediate termination of most of its smaller positions, followed by a dive straight into the fourth principle to consolidate the portfolio into fewer high-conviction positions. The equity portfolio went from 42 to 29 positions, the lowest number in more than a decade.

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In with the new Abel also expanded the company's position in Alphabet, which is a rare tech stock in the portfolio. One of the stocks closed out was Amazon, so Berkshire remains with two artificial intelligence (AI) stocks, the other being perennial Buffett favorite Apple. Apple can be viewed as a consumer goods company, but Alphabet is more of a pure-play tech stock.

While the portfolio is still highly invested in consumer goods and financial stocks, and the new positions in Macy's and Delta Air Lines are classic Buffett-style stocks, it could signal that Abel feels more comfortable understanding Alphabet and its role in the economy. As the shift to digital and AI continues at a rapid pace, it appears that Abel is willing to invest in it.

Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Key Takeaways EMCOR's electrical construction revenues rose 33.1% to a record $1.45B in first-quarter 2026.Network and communications revenues surged nearly 50% on AI infrastructure and data-center demand.EMCOR's remaining performance obligations reached a record $15.62B on strong market bookings. EMCOR Group's (EME - Free Report) electrical construction business continues to build strong momentum, supported by robust demand for mission-critical infrastructure and the company's ability to execute complex projects at scale. In the first quarter of 2026, the segment delivered record revenues of $1.45 billion, up 33.1% year over year, while maintaining an industry-leading operating margin of 12.1%. Although margins eased slightly due to acquisition-related amortization, profitability remained strong, highlighting the resilience of EMCOR's operating model.

The biggest growth driver remains network and communications, where revenues surged nearly 50% as hyperscalers and enterprises accelerated investments in AI infrastructure and data centers. Beyond this, EMCOR benefited from healthy demand across institutional projects, hospitality and entertainment, including stadium construction, as well as higher volumes of short-duration projects and service work. This broad-based demand reduces reliance on any single end market and supports sustainable long-term growth.

Looking ahead, management expects the momentum to continue. Remaining performance obligations climbed to a record $15.62 billion, driven by strong bookings across data centers, healthcare, institutional, water and wastewater and manufacturing markets. The company also continues expanding its geographic footprint while leveraging prefabrication, virtual design, workforce training and disciplined contract management to improve execution on increasingly complex projects.

With AI-driven data center construction showing no signs of slowing and diversified demand across multiple infrastructure markets, EMCOR's electrical construction segment appears well-positioned to remain a key contributor to the company's growth throughout 2026 and beyond.

How Do EMCOR's Peers Compare in Electrical Construction?Two of EMCOR's closest competitors in electrical and mechanical contracting are Quanta Services (PWR - Free Report) and Comfort Systems USA (FIX - Free Report) . Both companies are benefiting from the same secular drivers, including AI data center construction, grid modernization and expanding infrastructure investment.

Quanta continues to strengthen its electrical construction business through large-scale transmission, substation and renewable energy projects, while also increasing its exposure to data centers and communications infrastructure. Quanta has leveraged its engineering expertise and nationwide workforce to secure long-duration projects, giving it strong revenue visibility. As AI-related power demand rises, Quanta is expected to remain a key beneficiary of utility and hyperscaler spending.

Comfort Systems is also expanding its presence in mission-critical facilities through electrical, mechanical and building automation services. Comfort Systems has steadily increased its exposure to data centers, semiconductor manufacturing and advanced industrial facilities, supported by strategic acquisitions. Comfort Systems further benefits from higher-margin service work and prefabrication capabilities that improve execution and profitability.

While both Quanta and Comfort Systems are well-positioned, EMCOR's diversified project portfolio, disciplined contract management and broad geographic reach provide it with a strong competitive position in the rapidly growing electrical construction market.

EME’s Price Performance, Valuation & EstimatesShares of EMCOR have gained 26.6% year to date (YTD), underperforming the Zacks Building Products - Heavy Construction industry, as shown below.

EME YTD Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, EME stock trades at a forward 12-month price-to-earnings ratio of 24.9, below the industry’s average.

EME Valuation - P/E (F12M)

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for EME’s 2026 sales and earnings implies year-over-year growth of 12% and 13.5%, respectively. Earnings per share estimates for 2026 have increased to $29.37 in the past 30 days, as shown below.
 

Image Source: Zacks Investment Research

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

Key Takeaways ILMN is focused on core sequencing, multiomics, and software after the GRAIL spin-off.ILMN raised 2026 guidance as Q1 revenues, margins, EPS and NovaSeq X placements topped expectations.ILMN faces China weakness, tariffs and higher input costs that may pressure growth and margins. Illumina Inc. (ILMN - Free Report) is well-poised to grow in the coming quarters owing to its strategic execution against growing the core sequencing business, expanding multiomics and developing services, data and software capabilities. Ongoing momentum in clinical end markets is boosting sequencing consumables demand. Higher-than-expected NovaSeq X placements and continued transition to the platform further strengthen the outlook. Yet, China remains a drag on Illumina’s growth, while input-cost volatility can limit incremental margin upside over the next several quarters.

Over the past year, this Zacks Rank #3 (Hold) stock has surged 87%, well ahead of the industry’s 23.8% growth and the S&P 500 composite’s rise of 22.8%.

The renowned biotechnology company has a market capitalization of $27.82 billion. ILMN’s earnings yield of 2.8% is well ahead of the industry’s -14.9% yield. In the trailing four quarters, it surpassed estimates on all occasions, delivering an average surprise of 12.2%. 

Let’s delve deeper.

Tailwinds Behind ILMN StockSharpened Focus on Core Genomics: Following the spin-off of GRAIL in June 2024, Illumina has continued to center its strategy on the core sequencing franchise while scaling into adjacent multiomics and data offerings. The company remains focused on returning to durable growth and higher profitability, aiming for high-single-digit revenue growth by 2027, along with double-digits to teens annual earnings per share (EPS) growth, anchored by its roadmap of growing the core sequencing business, expanding multiomics and building services, data and software capabilities.

Image Source: Zacks Investment Research

First-quarter 2026 results reinforced that direction, with revenues, margins and non-GAAP EPS exceeding guidance. Management also raised full-year 2026 guidance, now expecting revenues in the range of $4.52-$4.62 billion and non-GAAP diluted EPS in the range of $5.15-$5.30, alongside a modest step-up in the non-GAAP operating margin outlook between 23.4% and 23.6%.

NovaSeq X Placements and Transition Progress: Illumina’s core sequencing business remains anchored by NovaSeq X. First-quarter 2026 placements exceeded 80 units, around 20 more than the prior-year quarter and above the company’s targeted quarterly range. Demand remains strong for the platform, especially with clinical. Management noted supply constraints in meeting first-quarter placement demand while exiting the quarter with a backlog that supported a higher full-year instrument outlook.

Transition progress also continued, with approximately 82% of volumes and 55% of revenues transitioned to NovaSeq X in the first quarter, and roughly 90% of research and applied volume now on the platform. Management continues to plan for average quarterly NovaSeq X placements of 50 to 60 through 2026 while investing to scale supply given the current pipeline.

Clinical Demand Remains the Key Driver: Illumina continues to benefit from the broader adoption of NGS-based testing, with clinical markets now representing the majority of sequencing consumables revenues in first-quarter 2026. Management cited continued adoption of sequencing-based diagnostics and growing use of sequencing-intensive tests, including comprehensive genomic profiling and whole genome sequencing, as drivers of higher sequencing intensity.

Clinical sequencing consumables demand grew 20%, excluding China, for the second consecutive quarter, and management continues to expect most clinical volumes to transition to NovaSeq X by the end of 2026. Over time, the mix shift toward higher-throughput clinical workflows should remain supportive for consumables growth even as research demand stays uneven.

What Ails ILMN?Setbacks in China Market: Illumina continues to face constrained demand in Greater China amid ongoing regulatory and geopolitical uncertainty, keeping the region out of step with the rest of the business. In first-quarter 2026, Greater China revenues were $52 million, down 27.8% year over year. With Illumina still operating under uncertainty tied to its status with Chinese authorities and the resulting friction on commercial activity, visibility on a sustained recovery in China remains limited and can weigh on overall growth and operating leverage.

Macroeconomic Pressures Remain a Concern: Illumina continues to operate in a higher-cost environment shaped by tariffs and supply-chain inflation, which can affect both demand and margins. In the first quarter of 2026, tariffs were a partial offset to underlying cost efficiencies and revenue leverage.

Second-quarter guidance calls for an operating margin of around 22%, reflecting a higher instrument mix, near-term inflationary impacts tied to freight and higher electronic component costs, and incremental costs from a full quarter of SomaLogic. Management expects mitigation actions to offset these cost items over the balance of the year, but ongoing volatility in trade policy and input costs can still create uneven quarterly performance and limit visibility for customers facing tighter budgets.

ILMN Stock Estimate TrendThe Zacks Consensus Estimate for ILMN’s 2026 EPS has increased 0.4% to $5.19 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $4.56 billion. This suggests a 5.1% rise from the year-ago reported number.

Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .

Globus Medical has an earnings yield of 6.2% compared to the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 35.4% against the industry’s 10.6% 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.

Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 6.3% against the industry’s 9.6% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.7% against the industry’s negative 3% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 33.8% against the industry’s 10.5% decline over the past year.

Key Takeaways Wendy's China deal provides a long-term unit growth runway, targeting up to 1,000 restaurants over 10 years.The China push builds on 6% international sales growth and unit gains in the Philippines and Mexico.Wendy's China strategy combines its hamburger platform with localized menu innovation to drive adoption. The Wendy’s Company (WEN - Free Report) is sharpening its focus on international expansion as it works through a challenging U.S. turnaround. The company recently signed a franchise agreement to build up to 1,000 restaurants across China over the next 10 years, marking the largest development agreement in Wendy’s history. The deal gives the company a meaningful growth catalyst in one of the world’s most important restaurant markets.

The timing is important, as Wendy’s international business is showing relative strength. In the first quarter of 2026, international system-wide sales increased 6%, driven by net unit growth in key markets such as the Philippines and Mexico. The China agreement further advances the company’s “globally great, locally loved” strategy by pairing its core hamburger platform with locally inspired menu innovation for Chinese consumers.

The expansion also gives Wendy’s a potential counterbalance to ongoing domestic pressure. During the quarter, U.S. same-restaurant sales declined 7.8%, weighed down by lower traffic, severe weather and restaurant-hour optimization. The company expects sequential quarterly improvement through 2026 and maintains its outlook for approximately flat global system-wide sales, reflecting expectations that Project Fresh initiatives can gradually support better U.S. trends.

With relative strength in international markets, a major new China opportunity and early Project Fresh execution underway, Wendy’s appears better positioned to build a more balanced growth profile. While U.S. traffic remains a near-term overhang, successful execution in China could strengthen the company’s long-term expansion story and provide a broader growth platform.

How Does Wendy’s China Plan Stack Up Against MCD and SBUX?McDonald’s Corporation (MCD - Free Report) continues to benefit from its global scale, disciplined value strategy and strong menu-marketing execution. In the first quarter of 2026, the company grew global system-wide sales 6% in constant currency and global comparable sales 3.8%, while gaining market share in nearly all of its top 10 markets. In China, McDonald’s maintained its share and remains on track to open approximately 1,000 new restaurants this year, underscoring the scale Wendy’s will face as it builds its own China platform.

Meanwhile, Starbucks Corporation (SBUX - Free Report) continues to deepen its China strategy through a more localized partnership model. Starbucks China delivered transaction-led comparable sales growth for the fourth consecutive quarter, while the company completed its transaction with Boyu Capital after quarter-end. The partnership combines Starbucks’ global brand strength with Boyu’s local market expertise and is expected to support long-term growth. Starbucks also plans to expand from more than 1,000 county-level cities today to more than 1,500 over the next three years.

However, unlike McDonald’s and Starbucks, Wendy’s is still in the early stages of building scale in China. Its agreement to develop up to 1,000 restaurants over the next 10 years gives the company a sizable growth runway, but execution will be critical. Wendy’s fresh-beef positioning, locally inspired menu innovation and franchise-led expansion model could help the brand carve out a differentiated presence in the region.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 21.1% in the past three months against the industry’s 1.7% drop.

WEN Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.73, below the industry’s average of 3.34.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

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

Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.

Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.

Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.

On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.

For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.

Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.

Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.

CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.

Image Source: Zacks Investment Research

Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways ACHR expands flight testing to validate aircraft systems and support regulatory certification.ACHR advances Midnight certification through compliance, testing and system validation activities.ACHR certification progress supports future aircraft deliveries and commercial deployment plans. Archer Aviation Inc. (ACHR - Free Report) continues prioritizing safety as it advances the development of its Midnight electric aircraft. The company is designing the aircraft with multiple layers of redundancy across flight-critical systems, helping enhance operational reliability while supporting certification and future commercial operations. This safety-focused approach is expected to strengthen Archer's position in the emerging electric aircraft market.

Redundant aircraft systems play an important role in next-generation aviation by helping maintain safe operations in the event of individual component failures. Archer's Midnight aircraft incorporates redundancy across key flight systems, including propulsion, power and flight-control architecture. These design features are intended to improve overall system reliability while supporting compliance with stringent aviation safety standards.

The company's emphasis on safety also complements its broader aircraft development strategy. By integrating redundant systems into the aircraft from the design stage, Archer aims to strengthen operational resilience while enhancing future passenger confidence and commercial adoption. This approach positions ACHR to meet evolving regulatory and customer expectations as electric aircraft enter commercial service.

As the electric aircraft industry continues to mature, safety-focused design is expected to remain a key competitive differentiator. Archer's continued investment in redundant aircraft architecture strengthens its long-term growth prospects while supporting the commercialization of its Midnight platform.

Companies Advancing Safety-Focused Aircraft DesignElectric aircraft developers continue strengthening aircraft safety through redundant flight-critical systems and resilient vehicle architectures. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Vertical Aerospace Ltd. (EVTL - Free Report) are also advancing capabilities in this area.

Joby Aviation is developing its electric aircraft with multiple redundant flight-critical systems designed to support safe, reliable and certifiable commercial operations.

Vertical Aerospace is incorporating redundant propulsion, power and flight-control systems into its electric aircraft to enhance operational reliability and support aircraft certification.

Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 61.90% and growth of 7.51%, respectively.

Image Source: Zacks Investment Research

ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 1.82X compared with the industry average of 6.31X.

Image Source: Zacks Investment Research

ACHR Stock Price PerformanceOver the past three months, ACHR shares have fallen 10.1% against the industry’s 1.2% growth.

Image Source: Zacks Investment Research

ACHR’s Zacks RankArcher currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Guidewire benefits as P&C insurers modernize legacy systems and shift core workflows to cloud.GWRE closed 11 cloud deals in Q3 fiscal 2026, including two net-new core system wins.ProNavigator and PricingCenter gained traction, but services mix and execution remain in focus. Guidewire Software, Inc. (GWRE - Free Report) is benefiting from insurer modernization, cloud migration and broader AI adoption across the property and casualty insurance market.

The story is not one-sided. Subscription-led growth is improving the model, but implementation intensity, services mix and execution demands still shape the stock’s risk-reward balance.

Why Guidewire Benefits From Insurer ModernizationP&C insurers continue to move away from legacy systems and toward cloud-based platforms that can support policy, billing, claims, pricing and underwriting workflows. Guidewire sits directly in that shift, with its cloud platform positioned as a core operating system for insurers.

In third-quarter fiscal 2026, Guidewire closed 11 cloud deals, including two net-new core system wins. The wins included a seven-year expansion with Auto Club of Southern California, a strategic net-new cloud win with Bradesco Seguros in Brazil, a U.K. ClaimCenter selection and a PolicyCenter win at a large U.S. insurer.

SAP SE (SAP - Free Report) remains relevant in the broader enterprise software market and is listed among Guidewire’s competitive landscape in software serving P&C insurers. Oracle Corporation (ORCL - Free Report) , with its cloud applications and platform services, is another useful reference point for investors tracking enterprise cloud migration across regulated industries.

How GWRE Is Building AI Into Daily WorkflowsGuidewire’s AI push is becoming more practical through ProNavigator. The company completed five ProNavigator deals in the third quarter as insurers looked to embed AI-driven knowledge and workflow automation into core operations.

The product is designed to provide role-specific, secure and context-aware AI guidance for underwriters, claims adjusters, billing specialists and customer service representatives. That matters because it extends Guidewire’s relevance beyond system replacement and into daily decision support.

AI is also influencing implementation work. Management has cited productivity gains from agentic development tools, which could help reduce friction in cloud migrations and speed delivery over time.

Where Guidewire’s Services Trend Cuts Both WaysServices revenue rose 32% year over year to $71.8 million in the third quarter. That growth reflects demand for Guidewire-led services programs, field engineering work and support for customers using Guidewire Cloud Platform.

The trade-off is margin mix. Services carried a non-GAAP gross margin of 14.3% in the quarter, compared with 74.1% for subscription and support. Higher services demand can signal healthy implementation activity, but it can also dilute the benefits of subscription-led growth.

For fiscal 2026, Guidewire expects services revenues of about $270 million and services gross margin of about 14%. A larger services revenue mix and higher bonus accrual partially offset the benefit from raised revenue expectations.

What Pricing Tools Mean for Guidewire’s Next PhasePricingCenter gives Guidewire another route into data-driven insurance workflows. The solution helps P&C insurers update pricing, analyze impacts in real time and respond to market changes.

Guidewire closed three PricingCenter wins in the third quarter, including deals with insurers in Sweden and Poland and its first U.S. win at Oklahoma Farm Bureau. The early traction supports the view that Guidewire can expand deeper into pricing and product teams.

Still, newer products must scale efficiently. PricingCenter and ProNavigator broaden the platform opportunity, but the company still needs to prove that adoption can grow without adding delivery complexity or weakening unit economics.

How Zacks Signals Reflect GWRE’s Trend BalanceGuidewire’s growth story is becoming broader, but not simpler. Cloud migrations remain the main engine, while ProNavigator and PricingCenter add new ways for insurers to use Guidewire inside daily workflows. At the same time, the rise in services demand shows that modernization still requires meaningful implementation support, keeping margin mix and execution discipline in focus.

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

The stock also has a Value Score of F, Growth Score of B, Momentum Score of F and VGM Score of D. The Growth Score of B fits a company delivering double-digit ARR and subscription growth, but the weaker Value, Momentum and VGM readings point to a less favorable overall style profile.

For investors, that combination supports a measured view: Guidewire is participating in durable insurance technology trends, but the stock still needs cleaner evidence that newer products, cloud scale and services demand can translate into more efficient long-term growth.

Key Takeaways Oklo received DOE approval for its DSA, advancing Groves into the final startup review phase.It targets July 2026 for the first criticality after readiness review, fuel loading and startup authorization.Oklo says Groves will support U.S. isotope production for medicine, research, manufacturing and security. Oklo Inc. (OKLO - Free Report) has achieved a major milestone in the development of its Groves Isotope Test Reactor after receiving approval for its Documented Safety Analysis (DSA) from the U.S. Department of Energy (DOE). The approval, granted under the DOE's Reactor Pilot Program, moves the Texas-based project one step closer to operational authorization and highlights the growing momentum behind advanced nuclear technology in the United States.

The achievement reinforces Oklo's strategy of accelerating commercial nuclear deployment while supporting a more resilient domestic supply of critical medical and industrial isotopes.

DOE Safety Approval Moves Groves Into Final Startup PhaseThe DOE's approval of the DSA marks the completion of the reactor's final safety documentation process. The DSA provides a comprehensive technical assessment of potential hazards, required safety controls and operational procedures needed to ensure safe reactor startup.

This follows the earlier approval of the Preliminary Documented Safety Analysis, which established the project's initial safety basis during the design and construction stages.

With both approvals now secured, the Groves reactor enters the DOE's final pre-startup review, which includes a readiness review and startup authorization. Once approved, the facility will be permitted to receive and load nuclear fuel, conduct startup testing and advance toward first criticality — the point at which the reactor achieves a controlled, self-sustaining nuclear chain reaction.

Oklo is targeting July 2026 for its first criticality.

A First for Commercial Advanced Nuclear ProjectsAccording to Oklo’s co-founder and CEO, the project represents a significant milestone for the advanced nuclear industry.

Groves is the first advanced reactor project to receive DSA approval while being located on privately owned land and relying entirely on commercially sourced fuel, equipment and systems supplied by the private sector. Construction and planned operations have also been led by a private-sector team under DOE oversight, making the facility representative of future commercial reactors that Oklo intends to build and operate.

The company also noted that the project demonstrates how advanced reactors can move from construction to deployment on a commercial timeline while maintaining rigorous safety standards.

Supporting Domestic Isotope ProductionBeyond reactor development, the Groves facility plays a strategic role in expanding Oklo's isotope business.

The reactor is expected to strengthen domestic production of critical isotopes used across several sectors, including cancer diagnosis and treatment, advanced manufacturing, scientific research, space exploration and national security.

Many of these isotopes are currently imported or produced at aging facilities, creating supply chain vulnerabilities for hospitals, research institutions and government agencies across the United States.

By launching operations through a pilot facility, Oklo aims to validate production processes, optimize reactor performance and establish reliable commercial-scale isotope production within the country.

Oklo Continues to Build MomentumThe DOE approval comes shortly after Oklo announced its acquisition of Creative Engineers Inc., a company specializing in alkali metal engineering for the nuclear industry. Although financial details of the acquisition were not disclosed, the move further strengthens Oklo's technical capabilities as it advances its next generation of nuclear technologies.

With regulatory progress accelerating, strategic acquisitions expanding its expertise and the Groves reactor approaching startup, Oklo continues to position itself as a leading developer of advanced nuclear solutions while helping build a more secure domestic isotope supply chain.

OKLO’s Zacks Rank & Key PicksOklo is an advanced nuclear energy company focused on developing, owning and operating small nuclear power plants under its Aurora product line. Currently, OKLO has a Zacks Rank #3 (Hold).

Investors interested in the nuclear energy sector may consider some top-ranked stocks like GE Vernova Inc. (GEV - Free Report) , NextEra Energy, Inc. (NEE - Free Report) and The Southern Company (SO - Free Report) — each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GE Vernova is an energy company that includes Power, Wind and Electrification segments and is supported by its accelerator businesses of Advanced Research, Consulting Services and Financial Services. The Zacks Consensus Estimate for GEV’s 2026 earnings indicates 73.2% year-over-year growth.

Juno Beach, FL-based NextEra Energy is a public utility holding company engaged in the generation, transmission, distribution and sale of electric energy. The Zacks Consensus Estimate for NEE’s 2026 earnings indicates 8.1% year-over-year growth.

Atlanta, GA-based Southern Company is one of the largest utilities in the United States. The company deals with the generation, transmission and distribution of electricity. The Zacks Consensus Estimate for SO’s 2026 earnings indicates 6.5% year-over-year growth.

Amazon (AMZN +0.55%) certainly makes the short list of the best-performing stocks so far this century. Over the past two decades, shares have risen 12,350% (as of June 29). You would have over $1.2 million today if you made a hypothetical $10,000 investment in late June 2006.

The "Magnificent Seven" stock currently trades 13% off its peak, which can be viewed as an attractive entry point to acquire a disruptive enterprise with a strong position in online shopping, digital advertising, and cloud computing.

It's a good idea not to rush, though. Don't buy Amazon shares until you read this first.

Image source: The Motley Fool.

Pouring money into AI investments When Amazon announced its 2025 fourth-quarter financial results in February, what caught the market's attention was that the company upped its guidance for capital expenditures (capex). It plans $200 billion in capex in 2026, up from $131 billion last year.

The business is one of the hyperscalers; its Amazon Web Services (AWS) segment is the leading cloud computing platform in the world. The company is seeing robust demand from AWS customers, with a backlog of $364 billion as of March 31 (excluding the $100 billion Anthropic deal). This is leading to a surge in capital deployment.

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"This primarily relates to AWS and generative AI, as we invest to support strong customer demand," chief financial officer Brian Olsavsky said on the first-quarter 2026 earnings call when discussing his company's capex during the quarter. The business is investing aggressively to build data centers that power the AI revolution.

This is hitting Amazon's free cash flow (FCF). It posted just $1.2 billion in FCF in the past 12 months, down a notable 95% from the year-ago period. And the consensus view among sell-side analysts is that the business will report negative FCF of $10 billion in 2026.

Should the market give this business the benefit of the doubt? "We believe it to be a massive opportunity with the potential to drive long-term revenue and free cash flow," Olsavsky said on the call when referring to the AI landscape. Management clearly believes all this spending will benefit Amazon well into the future as it builds capacity that it can monetize.

Investors have to ask themselves if they're willing to buy what management is selling. That's the trillion-dollar question. Given the track records of founder Jeff Bezos and current CEO Andy Jassy, it's easy to give Amazon the benefit of the doubt. This company has always prioritized its customers' needs, adopted an extremely long time horizon, and didn't give in to Wall Street's short-term pressures.

This operational DNA is why the stock has performed so well. However, what makes things more complicated is that Amazon has raised more than $80 billion in debt so far in 2026. And we still have more than half of the year left.

It wouldn't be surprising if the market demands a higher return on this AI spending sooner rather than later.

DETROIT — Ford Motor regularly promotes itself as a cornerstone of American manufacturing, business and truck leadership with its best-selling F-Series pickups, but it also has led the U.S. in one area that it isn't so proud of: vehicle recalls and quality issues.

They've plagued the Detroit automaker's earnings, degraded customer trust and stained Ford's reputation for much of the past decade. The automaker has issued 53 recalls for more than 12 million vehicles so far this year after an industry record of 153 recalls covering 13 million cars and trucks in 2025.

But that period for Ford is coming to an end, CEO Jim Farley told CNBC during an exclusive interview, as the automaker notched a key quality milestone. He said Ford has learned from its past mistakes and will use that knowledge to attempt to flawlessly launch a litany of new products in the coming years.

"Our best days are in front of us as we continue to execute this quality turnaround for our investors, for employees, for our customers," Farley said during a phone interview. "We're going to have all new vehicles across our entire North America range in a couple of years, and so that whole new lineup, we have to launch all those perfectly."

Doing so will be a difficult task. New vehicle launches, especially ones with emerging technologies such as software-defined systems and electrified powertrains, are complex, and one issue can have a ripple effect on an entire product line.

It's something Farley knows all too well. Such issues have cost Ford billions of dollars in losses under his nearly six-year tenure leading the company.

The automaker this week added to its 2026 recall total by recalling 741,195 SUVs and F-150 pickup trucks that varied in age from the 2018 to 2021 model years.

Investors have been closely watching the issues, saying unneeded warranty costs are a risk to the company's guidance and future business plans. Warranty costs are the expenses an automaker incurs to cover repairs, replacements and other costs for defective parts or workmanship under a certain period of time or miles driven after customers purchase a new vehicle.

Ford said it reduced warranty and materials costs by $1.5 billion in 2025, when adjusted for volume and mix, and is targeting an additional reduction in warranty and material costs in 2026. This follows the company's warranty costs reaching a high of $4.8 billion in 2023.

"While warranty costs had been a clear drag to earnings over the past several years, Ford appears to have 'turned the corner,'" Barclays analyst Dan Levy said in a May 15 investor note, citing four consecutive quarters of year-over-year warranty benefits. "We believe the 1Q warranty improvement is encouraging, yet believe further improvement will still be needed."

Ford No. 1 in initial qualityThe company last week received outside validation of its yearslong efforts to turn around its product issues as the Ford brand was named the top mass-market brand in the U.S. in J.D. Power's initial quality ranking.

After the news was released on June 25, Ford stock rose 2%, making it the company's second-best trading day of the month.

Ford stock in 2026

It's the first time since 2010 that Ford has led mainstream brands in the influential study, which assesses expected new vehicle quality based on owner-reported problems within the first 90 days of ownership. Ford, which ranked No. 23 in 2023, ranked third among all brands, behind luxury makers Porsche and Hyundai's Genesis. It came before Toyota's Lexus brand at No. 4.

Ford improved in nearly every vehicle category measured by J.D. Power in initial quality, including software, infotainment and power trains.

The acknowledgement comes as Farley has doubled down on efforts to restructure Ford's leadership, including its bonuses and incentives; focus on quality; and revamp its processes as well as those of suppliers and other partners to more proactively identify potential problems.

"I'm very proud that an American car company can beat the world in initial quality, but obviously none of us are satisfied," said Farley, who worked at Toyota for nearly 19 years before Ford. "We have so much left to do to be the No. 1 quality brand in all attributes."

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Farley said Ford needs to continue trying to lower its warranty costs and future recalls as well as improve its overall quality reputation, including long-term durability.

Ford and its luxury Lincoln brand respectively ranked 18th and 19th in J.D. Power's U.S. Vehicle Dependability Study released in February, well below the industry average. That study looks at vehicles over a longer period.

Farley declined to predict when Ford, which has led recalls in the U.S. since 2024, will not hold that position anymore, saying he can't control what happens in older-model vehicles as well as competitors' efforts in quality. But he did say everything the company is doing "will absolutely lead to a massive reduction" in future recalls of current and future products.

"The ultimate success metric is will we do it over the course of five or 10 years through launches, through all sorts of economic cycles," he said. "Everyone wants the quick answer, but when it comes to quality, time is the most important measure of success."

Ford's quality effortsRecalls are companies rectifying mistakes that weren't caught or known during a vehicle's development or production. They can range from mundane issues such as visor labels or software updates to severe, potentially deadly issues for consumers.

Ford's most recent quality efforts have focused on finding any issues as soon as possible in a vehicle's development, which Farley said meant structurally rearranging the company's processes.

He implemented a new organizational structure and has hired 350 technical specialists since 2023, held more routine meetings, encouraged closer collaboration with suppliers and rolled out more rigorous testing during the entire vehicle development process.

Ford also changed its bonus structure, tying executive compensation more closely to quality metrics, including those for new executives from Whirlpool and Johnson Controls who brought additional quality expertise.

Ford has still had to deal with issues along the way. After it rolled out new artificial intelligence tools to detect problems, the company had to ultimately bring back what it calls veteran "gray beard" engineers to help guide younger staff members and to better train its AI models.

watch now

"We found in the past that Ford restructured the company to save money, only to find that we had let go experienced people in supply chain and manufacturing and engineering," he said. "By bringing those people back, that complements all this AI technology."

For many companies, AI has increasingly shown it can increase productivity of many tasks but might not be as efficient if it's not properly trained and deployed to assist the work of human employees.

Farley said that while Ford's quality efforts are a never-ending journey, he believes the company is about halfway through its most recent turnaround efforts under his Ford+ business plan, which is just beginning to show Ford's future upside.

"I know after 40 years how important quality is and durability is, and how difficult it is to be the best, which we now are initial," Farley said. "We cannot lose this momentum, it has to be a culture."

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Cincinnati Financial (NASDAQ:CINF | CINF Price Prediction) just sent another quarterly check to shareholders, extending one of the most remarkable streaks in American business. The Ohio-based property and casualty insurer declared a quarterly cash dividend of 94 cents per share, payable July 15, to shareholders of record as of June 23. That payout represents an 8% increase over the prior year quarterly rate of 87 cents, keeping the company firmly inside the elite Dividend King club with 65 consecutive years of hikes.

What makes this raise notable is the context. A year ago, this streak looked vulnerable. Now it looks bulletproof. Here is the scorecard, and why the dividend keeps rising even after the closest call in decades.

The Dividend Scorecard: Grade A Cincinnati Financial earns an A on the dividend report card, and the math behind that grade is straightforward.

Yield: Roughly 2% at current prices, modest but consistent with high-quality compounders. Growth streak: 65 consecutive years of increases, putting CINF among fewer than a dozen U.S. public companies with this distinction. Latest hike: 8%, well above the rate of inflation and the long-run average raise. Payout coverage: Trailing EPS of $17.49 against an annualized dividend of $3.55 leaves the dividend deeply covered by earnings. Valuation: Trailing P/E of 11, with a price-to-book ratio of 1.81. The only soft spot is the headline yield. At a stock price of around $191, CINF does not scream income. But Dividend Kings are compounding machines, and the total return profile bears that out.

How Close The Streak Came To Cracking The 65-year run was tested hard in early 2025. The California wildfires became the worst catastrophe loss in company history, and the damage showed up in the financials. Cincinnati Financial reported a net loss of $90 million in Q1 2025, with non-GAAP operating income flipping to a $37 million loss. Personal lines combined ratios blew out. The narrative around the stock shifted from compounder to catastrophe story.

One year later, the picture has completely flipped. Q1 2026 net income came in at $274 million, and non-GAAP operating income hit $330 million. CEO Stephen Spray summarized it plainly on the call: “Non-GAAP operating income was strong at $330 million for the quarter compared with an operating loss of $37 million a year ago.”

EPS of $2.10 beat the $1.94 estimate, and revenue grew 12% year over year to $2.86 billion.

Why The Dividend Keeps Rising: Three Pillars 1. Underwriting discipline that actually works: The Q1 2026 property casualty combined ratio improved by 18 percentage points to 96%. The accident year ex-catastrophe combined ratio of 88% is the kind of number that funds dividend hikes for years. Full-year 2025 closed with a 95% combined ratio, marking 14 consecutive years of underwriting profit.

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2. An investment portfolio that finally has wind at its back: Pretax investment income grew 14% in Q1 2026. The fixed-maturity portfolio earned a pretax yield of 5%, and new purchases hit a 5% yield. With $624 million of fixed-maturity purchases in the quarter, the income stream is compounding at higher reinvestment rates than the portfolio has seen in years.

3. A fortress balance sheet: Book value per share ended Q1 at $101.60, parent company cash and marketable securities sat at $5.6 billion and debt-to-total capital remained under 10%. CFO Michael Sewell put it directly: “We believe both our financial flexibility and our financial strength are in great shape.”

The company also returned $133 million in dividends and repurchased 1.1 million shares at an average price of $164.93 during the quarter, signaling management’s willingness to buy its own stock around current levels.

Total Return: The Real Story Investors who fixate on the modest yield miss the bigger picture. CINF is up more than 18% this year and nearly 31% over the past year, well ahead of the S&P 500’s 21% and 9% over those same windows. Over 10 years, CINF has returned more than 152% in price alone, before dividends are added back. On Thursday, the stock set a new 52-week high of $191.83.

Risks Investors Should Watch The streak is intact, but the underwriting environment is shifting. Commercial lines combined ratio deteriorated 7 points to 99% in Q1 2026, and personal lines new business premiums fell 40%. Spray called out the pressure on the call: “We are definitely seeing pressure. The larger the premium, the larger the account, the more pressure there is.”

Social inflation and legal system abuse remain a structural risk for casualty insurers. And with consumer sentiment sitting at 44.8 in May 2026, the macro backdrop is shakier than the underwriting numbers suggest.

The Bottom Line Cincinnati Financial nearly tripped on its 65-year dividend streak in 2025 thanks to a once-in-a-company-history catastrophe. Twelve months later, the underwriting engine, the investment portfolio, and the balance sheet are all firing simultaneously. The latest 8% hike is a clear statement that management believes the worst is behind them. Income investors looking for a Dividend King they can hold through cycles have a fresh data point to anchor that thesis.

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It's no secret that Wall Street loves Micron Technology (MU 5.68%) stock. On the heels of the company's recent quarterly report, it's also not hard to see why. Micron recorded non-GAAP (adjusted) earnings per share of $25.11 on sales of $41.46 billion in the third quarter of its current fiscal year, which ended May 28. Meanwhile, the average analyst estimate had called for an adjusted profit of $20.78 per share on sales of $35.84 billion in the period.

As impressive as the memory chip leader's performance was in the period, that's far from the only reason that many Wall Street investment firms are super bullish on Micron stock right now. Read on for a look at one key factor that helps explain why Micron stock has risen more than 800% over the last year -- and why top Wall Street analysts think that the stock can keep climbing.

Image source: Getty Images.

Micron's operating profits are expected to keep soaring In terms of operating income, analysts polled by FactSet expect Micron to be the world's third-most profitable company in the 2027 calendar year. The average estimate calls for the business to record operating income of $200.8 billion in the period, trailing only Alphabet's estimated $207.6 billion and Nvidia's estimated $359.4 billion. For reference, the average analyst estimate calls for Microsoft and Apple to post operating profits of $194 billion and $170.5 billion, respectively.

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Micron posted operating income of approximately $10.85 billion in its last fiscal year, up from operating income of roughly $1.94 billion in the previous year. The company is seemingly on track to continue growing its operating profit at an incredible pace, and that helps explain why top Wall Street analysts are so bullish on the stock.

Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Alphabet, Apple, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways Micron is riding one of its strongest profit cycles as higher memory prices lift revenues and margins.AI servers, HBM, enterprise SSDs and advanced DRAM demand continue to outpace industry supply.Strategic customer agreements now cover about 20% of MU's DRAM volume and one-third of NAND volume. Micron Technology, Inc. (MU - Free Report) is enjoying one of the strongest profit cycles in its history, and higher memory prices remain a major reason behind this momentum. Robust demand for artificial intelligence (AI) servers, high-bandwidth memory (HBM), enterprise SSDs and advanced DRAM continues to outpace industry supply, creating a favorable pricing environment.

In the third quarter of fiscal 2026, Micron Technology reported record revenues of $41.46 billion, up 74% sequentially and 346% year over year. Non-GAAP gross margin expanded to 84.9% from 74.9% in the previous quarter and 39% in the year-ago quarter, while non-GAAP earnings jumped to $25.11 per share from $12.20 in the previous quarter and $1.91 in the year-ago quarter. DRAM revenues increased 67% sequentially, supported by average selling prices rising in the low-60% range. NAND revenues climbed 99%, with average selling prices surging in the mid-80% range.

The pricing outlook remains encouraging. Micron Technology expects DRAM and NAND demand to exceed industry supply beyond calendar year 2027 as AI adoption accelerates across data centers, PCs, smartphones and automotive applications. Limited wafer capacity, slower technology transitions and expanding HBM production are likely to keep memory supplies tight, supporting healthy pricing.

Micron Technology is also strengthening pricing visibility through long-term strategic customer agreements covering a growing portion of its business. The company announced 16 strategic customer agreements (SCAs) across data center, consumer and auto markets in the third quarter. These agreements represent roughly 20% of DRAM volume and one-third of NAND volume over the covered period.

These contracts, combined with continued AI-driven demand and disciplined industry supply growth, should help the company sustain elevated margins. While memory remains a cyclical business, current industry dynamics suggest Micron Technology's profit boom still has room to run. For the fourth quarter of fiscal 2026, the company projects a non-GAAP gross margin of approximately 86%, indicating a robust expansion from the year-ago quarter’s level of 45.7%.

How Are Micron’s Semiconductor Peers Performing on Margins?Major semiconductor players, NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , are also benefiting from the AI boom.

NVIDIA continues to lead the AI accelerator market, with data center revenues growing 92% year over year in the first quarter of fiscal 2027. The company’s non-GAAP gross margin reached 75% from 60.8% in the year-ago quarter, supported by strong pricing power for its AI GPUs and networking products. NVIDIA’s growth indirectly benefits Micron Technology because AI servers using NVIDIA chips require large amounts of DRAM and HBM memory.

Advanced Micro Devices is also gaining momentum in AI and data center markets. Its EPYC server processors and Instinct AI accelerators are helping expand enterprise adoption. AMD’s data center revenues surged 57% year over year to a record $5.78 billion in the first quarter of 2026, while non-GAAP gross margins expanded 180 basis points to 55.4%. As AI server deployments rise, Advanced Micro Devices’ growth is increasing demand for advanced memory and storage products supplied by Micron Technology.

MU’s Price Performance, Valuation and EstimatesShares of Micron Technology have surged around 242.6% year to date compared with the Zacks Computer and Technology sector’s return of 16.8%.

Micron Technology YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 8.52, significantly lower than the sector’s average of 23.18.

Micron Technology 12-Month Forward P/E Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 791% and 107%, respectively. Bottom-line estimates for fiscal 2026 and 2027 have been revised upward in the past seven days.

Image Source: Zacks Investment Research

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

The collapse of the Albertsons mega-merger forced Kroger NYSE: KR into a severe reckoning. Antitrust regulators effectively shut the door on transformative coast-to-coast consolidation late last year, and the market aggressively punished the uncertainty. Shares dragged toward a 52-week low of $54.15 as investors questioned how Kroger would navigate relentless pressure from omnichannel titans such as Amazon NASDAQ: AMZN and Walmart NASDAQ: WMT.

Kroger Today

$58.12 -0.10 (-0.16%)

As of 07/2/2026 03:59 PM Eastern

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

52-Week Range$54.15▼

$76.58Dividend Yield2.68%

P/E Ratio34.19

Price Target$71.94

Shifting consumer behavior and an unforgiving macroeconomic environment require massive scale to survive, leaving Kroger in a precarious position.

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The answer arrived in the form of a definitive agreement to acquire regional grocer Giant Eagle for a total enterprise value of $1.65 billion. This transaction represents a ruthlessly pragmatic pivot in corporate strategy.

By bolting on a dense, well-established grocery network across five key midwestern and mid-Atlantic states, Kroger is securing immediate distribution leverage.

Under the guidance of recently installed Chief Executive Officer Greg Foran, who brings deep operational experience from Walmart, Kroger is orchestrating a classic value-play consolidation to defend an increasingly vulnerable economic moat.

Kroger Rings Up Top-Line Growth at a BargainBreaking down the transaction arithmetic reveals exactly why this acquisition serves as a powerful upside catalyst. Kroger is paying $1.25 billion in cash and assuming approximately $400 million in outstanding liabilities. In exchange, Kroger instantly integrates 197 supermarkets, 11 standalone pharmacies, and roughly $9 billion in annual top-line revenue across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana.

Securing $9 billion in incoming revenue for a total price tag of $1.65 billion translates to a 0.18x multiple on acquired sales. Attempting to build that physical footprint organically is nearly impossible in today's elevated interest rate environment. Securing premium commercial real estate, building localized distribution centers, and acquiring net-new customers in heavily saturated regional corridors would cost substantially more capital and take a decade to execute properly.

Kroger is instead buying established cash flows and localized market dominance at a steep discount. Management expects the deal to become accretive to adjusted earnings per share (EPS) by the second full year post-integration in 2029.

Trimming the Fat: Digital Margins and Pharmacy PlaysSupermarket operators exist in an environment where profitability remains structurally tight. Kroger currently generates razor-thin net margins of 0.71% and pre-tax margins of 0.86%. Earnings per share for the first quarter of 2027 came in at $1.58, missing consensus estimates by a single penny, while identical sales excluding fuel increased by just 1.0%. Investors rightly view these metrics with caution, but analyzing the underlying operations reveals a critical inflection point hidden just beneath the surface.

During that same first quarter, Kroger's digital fulfillment operations turned profitable for the very first time. E-commerce logistics and last-mile grocery delivery traditionally bleed cash, serving as massive loss leaders to maintain market share.

Achieving sustainable profitability in digital fulfillment justifies the Giant Eagle acquisition on a fundamental level. Kroger can now seamlessly integrate Giant Eagle's established customer loyalty programs into a proven, margin-positive digital fulfillment engine, eliminating redundant logistics costs and instantly scaling online margins.

Investors must also contextualize shifting consumer behaviors, specifically the structural rise of GLP-1 weight-loss medications. Market data indicate that households using GLP-1 treatments reduce overall grocery spending by roughly 5.5% to 6.0%. This dynamic presents a widely discussed margin-pressure point for traditional center-store grocery volumes. Kroger is slightly derisked in this environment, as it already operates a massive network of in-store pharmacies.

Adding Giant Eagle's standalone and integrated pharmacy footprint acts as a natural defensive hedge. The combined entity captures high-margin prescription revenue from dispensing the weight-loss medications, effectively neutralizing the peripheral drag on traditional packaged food sales by shifting the consumer's wallet from the grocery aisle to the pharmacy counter.

Paying the Bill: How Kroger Funds the FeastAny debt-funded acquisition requires serious balance sheet scrutiny from investors. Kroger carries a debt-to-equity ratio of 2.43 and a quick ratio of 0.39, signaling low immediate liquidity. Adding $400 million in assumed Giant Eagle liabilities introduces near-term financial friction. When the Giant Eagle deal hit the wires, Kroger shares dipped to $53.92 amid immediate financing concerns before buyers stepped in and pushed the stock back to a close above $56

The Kroger Co. (KR) Price Chart for Friday, July, 3, 2026

The downside risk appears heavily capped by a deeply compressed valuation and highly aggressive capital return programs. Kroger currently trades at a forward price-to-earnings ratio (P/E) of 11 and a price-to-sales ratio (P/S) of just 0.24.

These depressed metrics price in operational stagnation rather than targeted regional growth. Kroger management is aggressively exploiting the disconnect between market price and intrinsic value. Following the dissolution of the Albertsons deal, the board initiated a $7.5 billion share repurchase program. Retiring nearly 17% of the outstanding float at current depressed prices artificially boosts earnings per share. This creates a powerful dual-engine for shareholder returns when combined with Giant Eagle's incoming cash flows.

This aggressive buyback program is backstopped by heavy institutional conviction. Vanguard Group and BlackRock maintain stable equity positions, holding approximately 12.0% and 8.6% of Kroger's outstanding shares, respectively. Having over 20% of the entire float anchored by two institutional giants provides a formidable structural floor. This institutional ownership mitigates downside volatility while the regulatory and integration processes play out ahead of the 2027 closing date.

Bagging the Bottom: Why Kroger Is a Top-Shelf BuyCapital allocation ultimately dictates long-term shareholder value in the retail sector. Kroger is leveraging a temporary weakness in its own equity pricing to acquire significant regional market share at a deep discount. Securing localized density in the Midwest and Mid-Atlantic allows Kroger to build a formidable firewall against non-traditional grocery entrants such as Walmart and Amazon.

The grocery sector rarely offers hyper-growth narratives, but the industry frequently provides mispriced cash flows. Kroger is trading at a depressed multiple while expanding its omnichannel reach, leveraging a newly profitable digital fulfillment network, and executing one of the largest buyback programs in the retail landscape.

Value-oriented investors willing to look past the immediate debt load and short-term integration friction might find current pricing levels a highly opportunistic entry point into a resilient, cash-generating retail powerhouse.

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Yuma launched a diversified fund focused on the Bittensor ecosystem. The strategy combines TAO with exposure to multiple AI subnets. The fund targets institutional and accredited investors. The new vehicle combines exposure to Bittensor’s native TAO token with a portfolio of subnet assets, allowing investors to access the broader decentralized AI economy through a single managed strategy.

New Fund Targets Decentralized AI Yuma, the digital asset infrastructure and investment firm owned by Digital Currency Group (DCG), announced the launch of the Yuma Total Market Fund on June 25. The vehicle is designed to provide institutional allocators and accredited investors with broad exposure to Bittensor, one of the fastest-growing decentralized artificial intelligence networks.

Unlike traditional crypto investment products that focus on a single token, the new fund combines exposure to TAO, Bittensor’s native cryptocurrency, with assets linked to the network’s expanding ecosystem of application-specific subnets. The approach is intended to give investors access to multiple segments of the decentralized AI economy through a single professionally managed portfolio.

Yuma also confirmed that the fund has secured seed capital from an anchor investor, although neither the investor’s identity nor the size of the commitment was disclosed.

Expanding Beyond Token Exposure The launch reflects growing institutional demand for diversified exposure to blockchain-based artificial intelligence rather than concentrating solely on individual cryptocurrencies.

Bittensor operates as an open-source decentralized machine-learning network that rewards contributors for providing AI models, computing power and specialized data. Its architecture currently supports 128 active subnets, representing distinct AI applications ranging from data marketplaces and cloud infrastructure to cybersecurity, fraud detection and pharmaceutical research.

Collectively, those subnet assets represent an ecosystem valued at more than $900 million, according to Yuma.

By combining TAO with subnet exposure, the Total Market Fund seeks to capture growth across both the protocol’s base layer and its expanding application economy.

Yuma describes the strategy as an alternative to conventional AI investments concentrated in a handful of publicly traded technology companies or long-duration venture capital funds. Instead, the firm argues that decentralized AI offers investors liquid exposure to an emerging sector built around open participation and blockchain incentives.

Third Product in Growing Asset Management Platform The Total Market Fund becomes the third investment strategy within Yuma Asset Management’s expanding product lineup.

The firm’s existing Subnet Composite Fund provides market-cap-weighted exposure across the broader subnet ecosystem, while the Large Cap Subnet Fund focuses on the largest and most established subnet assets. The new strategy combines elements of both approaches by integrating protocol-level exposure through TAO alongside investments spanning the wider Bittensor network.

The launch reflects increasing product specialization as institutional investors seek more sophisticated ways to access emerging digital asset sectors beyond Bitcoin and Ethereum.

Rather than offering passive token exposure, Yuma is positioning its products as thematic investment strategies centered on decentralized artificial intelligence, an area attracting growing attention from institutional capital.

Institutional Interest in Decentralized AI Accelerates The launch comes as artificial intelligence remains one of the fastest-growing investment themes across both traditional finance and digital assets.

Barry Silbert, founder and chief executive of both DCG and Yuma, said the new fund is intended to provide investors with exposure to an open AI ecosystem rather than relying exclusively on a small group of centralized technology companies.

AI is becoming a core portfolio allocation. But for most investors it’s limited to a few, big players

Bittensor $TAO offers access to a decentralized network of AI projects@YumaGroup opens the door for investors to Bittensor and decentralized AI https://t.co/A5C8AXEDMU

— Barry Silbert (@BarrySilbert) June 25, 2026

He argued that decentralized networks such as Bittensor allow developers, researchers and infrastructure providers to participate directly in AI innovation while creating new investment opportunities tied to blockchain-based incentive systems.

The product also reflects broader institutional interest in tokenized infrastructure and blockchain-native investment strategies. As digital asset markets mature, fund managers are increasingly creating sector-specific portfolios targeting themes such as decentralized finance, tokenization, stablecoins and artificial intelligence instead of relying solely on broad cryptocurrency exposure.

For institutional investors, the Yuma Total Market Fund represents another example of how digital asset managers are packaging blockchain infrastructure into traditional investment vehicles. Whether decentralized AI can emerge as a distinct institutional asset class will depend on continued developer adoption, subnet growth and the ability of networks such as Bittensor to compete with established AI platforms in both innovation and commercial deployment.