Track market-moving stories before they get noisy

Key Takeaways Teva submitted an NDA for ecopipam to the FDA for treating pediatric Tourette syndrome.Ecopipam demonstrated statistically significant benefit in a phase III study's primary efficacy endpoint.Teva gained ecopipam through the Emalex acquisition. The therapy has FDA Fast Track and Orphan Drug tags. Teva Pharmaceutical Industries Limited (TEVA - Free Report) announced that it has submitted a new drug application (NDA) to the FDA seeking approval for ecopipam for treating pediatric Tourette syndrome.

The NDA for ecopipam was based on positive data from a phase III study, which was recently published in JAMA Neurology.

Data from the study showed that treatment with ecopipam significantly delayed time to relapse versus placebo in pediatric patients with Tourette syndrome who had achieved a clinical response during the open-label treatment period. Treatment with ecopipam led to a statistically significant benefit on the study’s primary efficacy endpoint in pediatric patients and was generally well tolerated.

A potential approval of ecopipam could provide the first FDA-approved treatment for pediatric Tourette syndrome in more than a decade, addressing a high unmet need in a specialized neuroscience segment.

TEVA Price PerformanceYear to date, shares of Teva have risen 0.9% against the industry’s decline of 3.5%.

Image Source: Zacks Investment Research

TEVA’s Recent Acquisition of EcopipamEarlier this month, Teva completed its previously announced acquisition of Emalex Biosciences, gaining access to the latter’s late-stage candidate ecopipam. Per the terms of the deal, Teva paid $700 million upfront and could make up to $200 million in additional milestone payments, along with royalties tied to future net sales.

The deal is likely to strengthen Teva’s innovative medicines pipeline.

Ecopipam is a first-in-class investigational therapy that works by blocking dopamine activity at the D1 receptor. Increased sensitivity of this receptor is thought to contribute to the repetitive and compulsive behaviors commonly associated with Tourette syndrome.

Ecopipam’s unique mechanism as a selective dopamine D1 receptor antagonist sets it apart from existing treatments that primarily target D2 receptors, potentially offering improved symptom control with a differentiated safety profile.

The FDA has granted Orphan Drug and Fast Track designations to ecopipam for the treatment of pediatric patients with Tourette syndrome.

Tourette syndrome is a childhood-onset neurological disorder characterized by involuntary motor and vocal tics. Although some treatment options are available, many patients continue to experience insufficient symptom control or treatment-limiting side effects.

TEVA’s Zacks Rank & Stocks to ConsiderTeva currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the drug/biotech sector are Indivior Pharmaceuticals (INDV - Free Report) , Immunocore (IMCR - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have risen from $3.33 to $4.05, while estimates for 2027 have increased from $3.66 to $4.27 during the same time. INDV shares have risen 6.7% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR stock has lost 17.6% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while estimates for 2027 have increased from $2.91 to $4.81 during the same time. LQDA shares have surged 106.1% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Intercorp Financial Services Inc. (IFS - Free Report) or American Express (AXP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Intercorp Financial Services Inc. has a Zacks Rank of #1 (Strong Buy), while American Express has a Zacks Rank of #3 (Hold). This means that IFS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

IFS currently has a forward P/E ratio of 9.34, while AXP has a forward P/E of 19.36. We also note that IFS has a PEG ratio of 0.77. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AXP currently has a PEG ratio of 1.38.

Another notable valuation metric for IFS is its P/B ratio of 1.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AXP has a P/B of 6.84.

These metrics, and several others, help IFS earn a Value grade of B, while AXP has been given a Value grade of C.

IFS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IFS is likely the superior value option right now.

Key Takeaways Mastercard posted 16% revenue growth in Q1 2026; value-added services now contribute nearly 41% of revenues.American Express grew billed business 10% and added over 70% of new accounts through fee-based products.Mastercard's average analyst price target implies 28.7% upside versus 6.3% for American Express. The global payments industry continues to benefit from the ongoing migration from cash to electronic transactions, supported by rising card usage, expanding e-commerce activity and growing demand for digital payment solutions worldwide. As consumers and businesses increasingly embrace digital commerce, investors remain focused on companies that can sustain transaction growth while adapting to changing payment trends.

Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) are two of the most prominent names in the payments space, making them a natural comparison for investors seeking exposure to this long-term trend. While both benefit from higher payment volumes and global spending activity, their business models differ significantly. MA primarily operates a payment network, whereas AXP combines network services with card issuance and lending, resulting in distinct growth drivers, revenue mixes and risk profiles.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock offers greater upside right now.

The Case for MastercardMastercard, with a market cap of $435.6 billion, generates most of its revenues from payment processing and network services rather than lending activities. This network-centric model allows the company to benefit from rising payment volumes and cross-border transactions while maintaining relatively limited credit exposure. Growth is increasingly supported by value-added services, real-time payments and commercial payment solutions, which broaden revenue sources beyond traditional card spending.

In the first quarter of 2026, the company’s net revenues rose 16% year over year, along with 12% growth in payment network net revenues. It delivered 22.4% growth in value-added services and solutions revenues in the first quarter, supported by demand for cybersecurity, fraud prevention, analytics and customer engagement solutions, and now contributes to nearly 41% of the company’s net revenues. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.5%.

Mastercard’s expanding network continues to create opportunities for additional revenue streams. Switched transactions now account for more than 70% of transaction volume, up from about 60% in 2020, generating richer data that supports the growth of higher-margin services and strengthens customer relationships.

The company is also positioning itself for emerging payment technologies through investments in agentic commerce and digital assets. Partnerships with OpenAI and other technology firms, the rollout of Verifiable Intent and the announced BVNK acquisition strengthen its ability to facilitate secure transactions across both traditional and digital payment ecosystems.

MA balances investments in innovation with shareholder returns through dividends and buybacks, supporting sustainable long-term growth despite regulatory and competitive pressures. In first-quarter 2026, it repurchased $4 billion of stock and bought an additional $1.7 billion through April 27, 2026, while paying $777 million in dividends for the quarter. The company maintains a solid capital position with $7.9 billion in cash, while short-term debt amounted to $1.7 billion as of March 31, 2026. Its return on capital of 62.16X is significantly higher than AXP’s 12.35X and the industry’s 28.17X.

The Case for American ExpressUnlike Mastercard, American Express, with a market cap of $232.4 billion, operates an integrated model that combines payment network services with card issuance and lending. It continues to benefit from strong spending activity among affluent consumers and younger cardholders. In the first quarter of 2026, billed business increased 10% year over year, while more than 70% of newly acquired accounts came from fee-based products. These trends support both spending growth and recurring fee revenues.

The company continues to strengthen its premium value proposition through travel, dining, entertainment and sports-focused offerings. Recent initiatives include a global NFL partnership, expanded airport lounge investments and the planned acquisition of TheFork from Tripadvisor, which would enhance American Express' dining ecosystem and deepen engagement with card members across Europe. Continued additions to its hotel portfolio further support customer loyalty and spending activity across its premium card base. In the first quarter of 2026, total revenues (net of interest expenses) increased 11% year over year, while total transactions rose 10%. The company beat earnings in three of the past four quarters and missed once, with an average surprise of 4%.

Commercial payments represent another key growth avenue. AXP outlined plans for eight new or enhanced commercial products and capabilities, including cash-back offerings and expense-management tools. These initiatives broaden the company's presence across small-business, middle-market and corporate customers.

Artificial intelligence is becoming an increasingly important part of the growth strategy. The launch of the ACE Developer Kit and Agent Purchase Protection extends AXP's presence into AI-powered commerce, while ongoing investments in technology aim to enhance security, customer experiences and operational efficiency across its closed-loop network.

As of March 31, 2026, the company had $53.8 billion in cash and cash equivalents against just $1.7 billion in short-term borrowings. AXP returned $2.3 billion to its shareholders in the first quarter of 2026 through dividends and buybacks. In March 2026, it raised its quarterly dividend by 16% to 95 cents per share. Its dividend yield of 1.1% is higher than MA’s 0.7%.

Price Performance ComparisonOver the past six months, shares of AXP have shed less value than those of MA. Meanwhile, the S&P 500 has increased 8.9% during this time.

Price Performance – MA, AXP & S&P 500
Image Source: Zacks Investment Research

How Do the Estimates Compare for MA & AXP?The Zacks Consensus Estimate favors MA at this stage. The consensus estimate for MA’s 2026 earnings indicates a 15.2% increase from a year ago. Meanwhile, the consensus estimate for revenues suggests 12.8% growth. On the other hand, the consensus estimate for AXP’s 2026 earnings indicates 14.4% growth from a year ago, while the same for revenues suggests a 9.7% rise.

Valuation: MA vs. AXPValuation-wise, Mastercard trades at a premium forward price-to-earnings multiple relative to AXP, reflecting its capital-light structure and lower risk profile. MA currently trades at a forward P/E of 23.46X, higher than AXP’s 18.15X. The valuation gap underscores the market’s preference for Mastercard’s stability and diversified growth drivers.

Image Source: Zacks Investment Research

Price TargetMA currently trades below its average analyst price target of $645.19, implying a 28.7% potential upside from current levels. AXP also trades below its average analyst price target of $362.35, implying a 6.3% potential upside from current levels.

ConclusionBoth Mastercard and American Express are well-positioned to benefit from the continued expansion of digital payments, supported by strong brands, global reach and healthy spending trends. AXP offers exposure to affluent consumers, growing fee-based products and an integrated payments-and-lending model, while MA benefits from its network-focused structure, broad acceptance footprint and expanding portfolio of value-added services.

Despite trading at a premium valuation, Mastercard’s asset-light business model, faster growth profile and expanding revenue streams suggest greater upside potential than American Express at current levels, even though both companies currently carry a Zacks Rank #3 (Hold).

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

If you are looking at American Express (AXP 0.21%) and comparing it to Visa (V 0.02%), you are essentially comparing the high end to the mass market. Both companies have appeal as businesses over the long haul, depending on your personal investment approach. However, one is likely to have more opportunities to grow than the other. Here's what you need to consider as you decide between American Express and Visa.

What does Visa do? Visa is a finance industry middleman. It charges a small, per-transaction fee to connect buyers and sellers. Other companies actually issue the credit cards and debit cards that carry the Visa logo. The issuer of the card assumes the financial risk associated with financing transactions, since a credit card is effectively a revolving line of credit.

Image source: Getty Images.

The small fees that Visa collects add up to big numbers. In the fiscal second quarter of 2026, Visa handled 66.1 billion transactions, up 9% from the previous year. That pushed revenues up 17%, with adjusted earnings jumping 20%.

What does American Express do? American Express also processes transactions, earning a small fee each time one of its cards is used. However, American Express uses a closed-loop model, so it is the issuer of its cards. That means it assumes the financial risk of the revolving credit facilities offered to American Express card customers. It seeks to control that risk by focusing on wealthier customers who are likely to be more resilient in the face of financial adversity.

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In the first quarter of 2026, American Express cardmember spending rose 10%, boosting the company's revenue by 11%. Adjusted earnings rose 15%. American Express is doing fairly well right now, but not as well as Visa. And the performance difference is important.

The high end versus the mass market With a focus on wealthier customers, American Express has a smaller customer base to serve. Visa, by contrast, can provide transaction services to consumers from the high end to the low end, noting that there are far more customers who are not wealthy than those who are. That partly helps explain the differing financial results.

However, there's another key factor to consider. Both companies are benefiting from the ongoing transition from cash to card payments. By focusing on the high end, American Express is likely already serving most of its potential market. But if there's a recession, customer spending at the high end is likely to remain resilient, even if long-term growth is likely to be limited by the size of the customer pool it targets. That probably gives American Express a leg up on banks that issues Visa branded cards.

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Visa, on the other hand, is likely to see its customer base and transaction volume continue to expand as more and more consumers shift toward card payments. The growth of online shopping almost guarantees that consumers will need a credit or debit card. And since the banks issuing the cards bear the financial risk, Visa can grow its volume with little downside. To be fair, a recession might lead to lower transaction volume, but that would likely be just a temporary hit as volume growth continues to expand over the long term.

What kind of business are you looking to own? American Express is both a financial institution and a transaction processor. It might be a good fit for investors who don't want to own a bank, but still want some exposure to the financial industry. And the focus on the high-end of the market provides the business with material resilience. But you still need to be willing to take on the risk that American Express customers will fail to pay their bills.

Visa lets you sidestep that risk by focusing only on earning processing fees. And its willingness to serve any customer, from the high end to the low end, opens up a larger long-term growth opportunity. There is some risk of volume declines during economic downturns, but it's limited because Visa isn't making short-term consumer loans.

Visa's price-to-earnings ratio of 28x is above American Express' 20x, so American Express is the "cheaper" stock on an absolute level. But Visa's P/E is below its own five-year average, while American Express' P/E is above its longer-term average. For investors with a growth focus, Visa, which looks like it is on sale relative to its own history, is likely the more attractive option.

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NEW YORK--(BUSINESS WIRE)--American Express Company (NYSE: AXP) plans to host a live audio webcast of its earnings conference call at 8:30 a.m. (ET) on Friday, July 24, 2026, to discuss the company’s second-quarter 2026 financial results.

The webcast will be accessible to the general public through the American Express Investor Relations website at https://ir.americanexpress.com/. The financial results and presentation materials are scheduled to be released and posted on the website at approximately 7:00 a.m. (ET) prior to the conference call, and a webcast replay will be available on the website following the call.

ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.

Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.

For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.

Source: American Express Company

Location: Global

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Key Takeaways Pfizer shares fell nearly 3% after CFO Dave Denton announced he will leave on Aug. 15.PFE reaffirmed 2026 guidance, expecting $59.5B-$62.5B in revenue and $2.80-$3.00 adjusted EPS.Pfizer named Cecile Guega interim CFO and said Denton will support the transition. Shares of Pfizer (PFE - Free Report) declined nearly 3% on Thursday after the company announced the departure of its chief financial officer (CFO), Dave Denton.

Denton will step down from his current role on Aug. 15 for “a professional opportunity outside of the pharmaceutical industry in consumer goods.” The company has initiated a comprehensive internal and external search for a permanent successor. Cecile Guega, currently senior vice president of finance for Pfizer’s global biopharmaceutical business, will serve as interim CFO beginning Aug.16. Guega will work alongside Denton during the transition period to ensure continuity across the company’s financial operations.

Denton’s resignation comes as a surprise, particularly as Pfizer continues to execute its post-pandemic transformation strategy. Since joining the company in May 2022, Denton has overseen several key initiatives, including cost realignment efforts, business development transactions (which include Seagen and Metsera deals) and capital allocation decisions aimed at stabilizing earnings following the sharp decline in COVID-related revenues.

Despite the leadership change, Pfizer reaffirmed its previously issued 2026 financial guidance, signaling that the transition is not expected to alter its near-term strategic priorities or operational outlook.

PFE Stock PerformanceYear to date, the company’s shares have gained over 1% compared with the industry’s 3% growth.

Image Source: Zacks Investment Research

Pfizer’s 2026 GuidanceThe company expects total revenues for 2026 to be between $59.5 billion and $62.5 billion. The range indicates a decline from 2025 revenues of $62.6 billion due to lower revenues from COVID products and loss of revenues from the upcoming patent cliff.

Pfizer expects adjusted EPS for the year in the range of $2.80-$3.00, which represents a decline from the 2025 EPS of $3.22 due to the dilutive impact of last year’s acquisition and licensing deals, lower COVID revenues and higher taxes.

Adjusted gross margin is expected to be in the mid-70% range, similar to the past several years. Adjusted R&D expenses are expected to be in the range of $10.5 billion to $11.5 billion in 2026, while adjusted SI&A spending is targeted between $12.5 billion and $13.5 billion.

The adjusted effective tax rate is expected to be approximately 15% in 2026.

PFE’s Zacks RanksPfizer currently carries a Zacks Rank #3 (Hold).

Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Immunocore (IMCR - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss per share of 88 cents to earnings of 6 cents. Over the same period, estimates for 2027 EPS have risen from 24 cents to 87 cents. IMCR’s shares have lost nearly 18% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters but missed the mark on one occasion, delivering an average surprise of 46.66%.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 EPS have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen from $3.66 to $4.27. INDV’s shares are up nearly 7% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.44%.

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Passive income is the closest thing investors have to financial gravity. It pulls in money whether you are at your desk, on a beach, or asleep, and it lands in your account no matter what the broader market did that week. Earned income depends on showing up. Dividend income depends on a board of directors keeping a promise it has often kept for decades.

Healthcare megacaps have quietly become the bedrock of that promise. Two of the most widely held names in the sector, Pfizer (NYSE:PFE | PFE Price Prediction) and Johnson & Johnson (NYSE:JNJ), write checks four times a year to shareholders regardless of what biotech sentiment, election cycles, or Treasury yields are doing. Compared with rental property or private credit, a 500-share position can be liquidated in seconds and rebalanced without a closing attorney.

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $3,500 a year in passive annual income if you invest just 500 shares in each stock at the time of this writing.

Johnson & Johnson Yield: 2.35% Shares for $114,195: 500 Annual Passive Income: $2,680 Johnson & Johnson is a diversified healthcare giant operating two reporting segments: Innovative Medicine and MedTech. The pharma side delivered $15.426 billion in Q1 2026 revenue, up 11.2% year over year, fueled by DARZALEX, TREMFYA, and CARVYKTI. The MedTech business added $8.636 billion, up 7.7%, with electrophysiology and Abiomed driving cardiovascular growth.

The dividend is built on reliability rather than headline yield. JNJ just declared its 64th consecutive annual dividend increase, raising the quarterly payout 3.1% to $1.34, payable June 9, 2026. That Dividend King status is structural: a AAA-rated balance sheet, 21.8% profit margins, and $19.7 billion in free cash flow last year back every quarterly check.

Institutional ownership sits at 76.85%, anchored by Vanguard, BlackRock, and State Street. Management raised full-year 2026 guidance to adjusted EPS of $11.45 to $11.65 on $100.3 billion to $101.3 billion in sales, and the planned DePuy Synthes orthopaedics spin-off should sharpen the remaining pharma-and-devices engine.

Pfizer Yield: 6.80% Shares for $12,605: 500 Annual Passive Income: $860 Pfizer is a global biopharma operating across Primary Care, Specialty Care, and Oncology. The post-COVID hangover has been brutal at the top line, with Comirnaty down 59% and Paxlovid down 62% in Q1 2026, but the core franchise is doing the work. Eliquis grew 13% to $2.166 billion, Vyndaqel rose 8% to $1.602 billion, and Padcev jumped 39%, helping Q1 revenue reach $14.451 billion, a 5.4% YoY beat.

The yield is elevated because the stock has compressed. PFE has compressed to roughly $25.21, leaving the $1.72 annualized payout at a 6.8% yield backed by a 6.3% free cash flow yield. Management has prioritized the dividend over buybacks, explicitly stating no share repurchases are anticipated in 2026 despite $3.3 billion of remaining authorization.

Institutions own 69.38% of the float, with Vanguard and BlackRock again the largest holders. The Vyndamax patent settlement extending U.S. exclusivity to June 2031, the $7 billion Metsera obesity acquisition, and roughly 20 pivotal trial starts planned this year give CEO Albert Bourla room to defend the payout through the patent cliff.

Combined, these 2 positions generate $3,540 in annual passive income on a $126,800 investment, a blended yield of 2.79%. Johnson & Johnson contributes $2,680, and Pfizer adds $860 to round out the portfolio.

Ticker Annual Income Share of Total JNJ $2,680 75.7% PFE $860 24.3% Total $3,540 100% The quiet power of a portfolio like this is optionality. Every reinvested dividend buys more shares at a lower cost basis when sentiment sours, and every cash payout can be redirected to the next opportunity when valuations stretch. That mix of compounding and flexibility is what makes dividend equities a different animal from any bond, rental unit, or fixed annuity competing for the same dollars.

Acquisitions can be a double-edged sword for companies, as they can quickly bolster revenue and growth opportunities but also add costs and inefficiencies. Healthcare giant Pfizer (PFE +1.31%) has been involved in numerous acquisitions in recent years as it has worked to strengthen its prospects; a major risk for the stock has been uncertainty about where its growth will come from, particularly as it faces patent cliffs on key drugs.

One of the largest deals Pfizer made was the $43 billion acquisition of oncology company Seagen in 2023. It was a major acquisition that gave it some promising cancer-fighting medicines. But Pfizer isn't expecting to make significant deals like this in the near future. Here's how it plans to adjust its strategy and what that could mean for investors.

Image source: Getty Images.

Pfizer looks to take a break from acquisitions When a company is aggressively pursuing acquisitions, it can make it difficult to avoid rising costs, as it may incur acquisition-related expenses and become bloated with additional workers and overhead.

On Pfizer's most recent earnings call, CEO Albert Bourla was asked if there would be any more significant acquisitions in the near future. Bourla indicated that nothing's on the horizon and that the healthcare company will instead focus on enhancing its different businesses with artificial intelligence (AI).

"We think that right now, in the next two years, it is the time to execute on AI transformation of these organizations. That requires not the disruption of a mega merger."

Bourla sees tremendous potential with AI to develop new medicines more quickly. Not only could this accelerate the company's long-term growth, but it may also yield greater cost savings and efficiency, leading to stronger financial results.

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Does this news make Pfizer's stock a better buy? Slowing down its acquisition strategy could be an advantageous move for Pfizer, particularly as it works to use AI to improve its processes. If these AI transformations result in stronger earnings and long-term growth prospects, it's what the stock may need to get out of its funk; shares of Pizer are down 35% in the past five years, as even a low valuation hasn't been enough of a reason to entice investors to buy the stock.

The good news, however, is that the company appears to be moving in the right direction, growing its business and looking for ways to enhance its operations with the help of AI. At less than nine times its estimated future earnings (based on analyst expectations), the stock is deeply discounted and offers investors an excellent margin of safety. Plus, it offers a tremendously high dividend yield of around 6.8%. There may be some uncertainty ahead, but overall, Pfizer may be one of the better bargains in the market right now.

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced topline results from the Phase 3 SigVie-002 study (previously known as Be6A Lung-01) evaluating sigvotatug vedotin, an investigational, potential first-in-class integrin beta-6 (IB6) directed antibody-drug conjugate (ADC). The study enrolled adults with locally advanced, unresectable or metastatic non-squamous non-small cell lung cancer (NSCLC) who had received one or more lines of prior therapy.

In the overall population, sigvotatug vedotin did not show a statistically significant improvement in the primary endpoint of overall survival (OS) compared to docetaxel. The safety profile of sigvotatug vedotin was manageable and consistent with prior studies. Encouragingly, in patients who received only one prior line of systemic therapy, which represents two-thirds of the study population, a stronger trend was observed for OS and progression-free survival (PFS) for sigvotatug vedotin over docetaxel. In the exploratory analysis, no clear IB6 expression-response relationship was observed. Detailed results from SigVie-002 will be submitted for presentation at a future medical congress.

“Patients with previously treated advanced NSCLC are a historically difficult-to-treat population, and there is clearly more work to be done to improve the outcomes for this population,” said Jeff Legos, Chief Oncology Officer, Pfizer. “Although the overall study results did not demonstrate superiority over docetaxel, it is encouraging that second-line patients treated with sigvotatug vedotin achieved strong efficacy outcomes compared to an established standard of care, alongside a manageable safety profile. This observed clinical benefit, along with our Phase 1 combination data in the first-line setting, reinforces our confidence in the potential of the sigvotatug vedotin program, including an ongoing Phase 3 trial in combination with pembrolizumab in first-line advanced NSCLC.”

“It is important not to underestimate the activity of docetaxel as a comparator in this setting. Patients enrolled in this trial were heavily pre-treated, with most having previously received both platinum-based chemotherapy and immunotherapy, yet docetaxel continues to provide meaningful clinical benefit. Although the study did not meet its overall survival endpoint, in second-line patients the data suggest a clinically meaningful survival benefit for sigvotatug vedotin over docetaxel, supporting continued scientific evaluation of sigvotatug vedotin in earlier lines in combination with immunotherapy,” said Solange Peters, M.D., PhD, Chair of Medical Oncology & Thoracic Cancers Clinic, Lausanne University Hospital, Switzerland. “The ability of sigvotatug vedotin to induce immunogenic cell death provides a strong rationale for combination approaches with immunotherapy, particularly in earlier treatment settings where immune competence is better preserved. In this context, the promising phase 1 efficacy signals observed in treatment-naïve patients with high PD-L1 expression warrant further evaluation and may represent a more effective clinical application of this strategy.”

In NSCLC, IB6 is expressed on approximately 90% of tumors. IB6 is associated with poor prognosis. Sigvotatug vedotin is a novel ADC designed for high target selectivity of IB6 and rapid internalization, which may help limit binding to other integrins more likely to be expressed in normal tissues and potentially reduce off-target toxicity.

Pfizer is evaluating sigvotatug vedotin in several ongoing studies across multiple stages and patient populations in NSCLC and other solid tumors, including:

An ongoing Phase 3 study evaluating sigvotatug vedotin + pembrolizumab in 1L NSCLC with PD-L1 tumor proportion score (TPS) ≥50%; and Exploration of sigvotatug vedotin in novel combinations, including with PF’4404, the novel bispecific antibody targeting PD-1 and VEGF, in early-stage lung cancers and other IB6-expressing tumors. Since the acquisition of Seagen, Pfizer has continued to advance a broad ADC portfolio spanning marketed medicines and pipeline programs. Pfizer is progressing multiple differentiated ADC candidates, including fetrastobart vedotin, a PD-L1–directed ADC currently in Phase 3 in NSCLC, additional IB6-targeted ADCs with alternate payloads, and early-stage candidates exploring novel targets and payloads, including topoisomerase I (Topo1) inhibitors and novel auristatin-based payloads. This breadth reinforces the strength of Pfizer’s Oncology pipeline, including the potential for novel combinations with its investigational PD-1xVEGF bispecific antibody (PF-08634404), supporting the company’s goal of delivering 8 potential Oncology breakthroughs by 2030.

About the SigVie-002 Trial

SigVie-002 (NCT06012435) is an ongoing, open-label randomized, Phase 3, global study evaluating sigvotatug vedotin compared with docetaxel in adult participants with previously treated locally advanced, unresectable or metastatic non-small cell lung cancer (NSCLC). Patients were randomized to receive sigvotatug vedotin administered intravenously on Days 1 and 15 of each 28-day cycle or docetaxel administered intravenously on Day 1 of each 21-day cycle.

The primary endpoint of this trial is overall survival (OS). The study enrolled 703 participants. Descriptive, secondary endpoints include progression-free survival (PFS), confirmed objective response rate (ORR) and duration of response (DOR) per RECIST v1.1 as assessed by blinded independent central review (BICR).

For more information, visit ClinicalTrials.gov and reference NCT06012435.

About Pfizer Oncology

At Pfizer Oncology, we are at the forefront of a new era in cancer care. Our industry-leading portfolio and extensive pipeline includes three core mechanisms of action to attack cancer from multiple angles, including small molecules, antibody-drug conjugates (ADCs), and multispecific antibodies, including other immune-oncology biologics. We are focused on delivering transformative therapies in some of the world’s most common cancers, including breast cancer, gastrointestinal cancer, genitourinary cancer, hematology-oncology, and thoracic cancers, which includes lung cancer. Driven by science, we are committed to accelerating breakthroughs to help people with cancer live better and longer lives.

About Pfizer: Breakthroughs That Change Patients’ Lives

At Pfizer, we apply science and our global resources to bring therapies to people that extend and significantly improve their lives. We strive to set the standard for quality, safety and value in the discovery, development and manufacture of health care products, including innovative medicines and vaccines. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with our responsibility as one of the world's premier innovative biopharmaceutical companies, we collaborate with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For over 175 years, we have worked to make a difference for all who rely on us. We routinely post information that may be important to investors on our website at www.pfizer.com. In addition, to learn more, please visit us on www.pfizer.com and follow us on X at @Pfizer and @Pfizer_News, LinkedIn, YouTube and like us on Facebook at Facebook.com/Pfizer.

Disclosure Notice

The information contained in this release is as of June 22, 2026. Pfizer assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.

This release contains forward-looking information about Pfizer Oncology, sigvotatug vedotin, an investigational, potential first-in-class integrin beta-6 directed antibody-drug conjugate, other oncology pipeline candidates and Pfizer’s ADC portfolio, including their potential benefits, the development program for sigvotatug vedotin and Pfizer’s oncology pipeline portfolio, the SigVie-002 results for sigvotatug vedotin and Pfizer’s goal of delivering 8 or more potential Oncology blockbuster medicines by 2030, that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, uncertainties regarding the commercial success of Pfizer’s oncology products; the uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for our clinical trials, regulatory submission dates, regulatory approval dates and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data, as well as uncertainties regarding the future of the sigvotatug vedotin program; risks associated with initial, preliminary or interim data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from our clinical studies; whether and when applications for sigvotatug vedotin or any other product candidates or combinations may be filed in particular jurisdictions for any potential indications; whether and when any such applications for sigvotatug vedotin or any other product candidates or combinations may be approved by regulatory authorities, which will depend on myriad factors, including making a determination as to whether the product’s benefits outweigh its known risks and determination of the product’s efficacy and, if approved, whether sigvotatug vedotin or any such other product candidates or combinations will be commercially successful; decisions by regulatory authorities impacting labeling, manufacturing processes, safety and/or other matters that could affect the availability or commercial potential of sigvotatug vedotin or any other product candidates or combinations; risks and uncertainties related to issued or future executive orders or other new, or changes in, laws or regulations; uncertainties regarding the impact of COVID-19 on Pfizer’s business, operations and financial results; and competitive developments.

A further description of risks and uncertainties can be found in Pfizer’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and in its subsequent reports on Form 10-Q, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Information and Factors That May Affect Future Results”, as well as in its reports subsequent on Form 8-K, all of which are filed with the U.S. Securities and Exchange Commission and available at www.sec.gov and www.pfizer.com.

More News From Pfizer Inc.

Key Takeaways Pfizer's phase III SigVie-002 study missed a statistically significant OS benefit vs docetaxel overall.Second-line patients, about two-thirds enrolled, showed favorable OS and PFS trends vs docetaxel.Pfizer is advancing sigvotatug vedotin in NSCLC and other IB6-expressing solid tumor studies. Pfizer (PFE - Free Report) has announced top-line data from a late-stage study which evaluated its investigational antibody-drug conjugate (ADC), sigvotatug vedotin in previously treated patients with advanced, unresectable or metastatic non-squamous non-small cell lung cancer (NSCLC).

Sigvotatug vedotin is a potential first-in-class ADC targeting integrin beta-6 (IB6), a protein expressed in about 90% of NSCLC tumors and associated with poor clinical outcomes, making it a compelling therapeutic target.

Year to date, Pfizer’s shares have risen 0.7% compared with the industry’s 1.3% growth.

Image Source: Zacks Investment Research

Key Highlights of PFE’s Phase III SigVie-002 Study for NSCLCThe late-stage SigVie-002 study demonstrated mixed data on the primary endpoint of overall survival (OS). Treatment with sigvotatug vedotin did not demonstrate a statistically significant improvement in OS compared with docetaxel in the overall study population. The safety profile remained consistent with findings from earlier clinical studies. However, patients who had received only one prior line of systemic therapy — representing roughly two-thirds of the enrolled population — showed a more favorable trend in both overall survival and progression-free survival (PFS) compared with docetaxel.

Docetaxel is an FDA-approved chemotherapy drug that has been commonly used as a standard-of-care treatment for many years for the treatment of several cancers, including NSCLC, breast cancer, prostate cancer, gastric cancer and head and neck cancers, particularly in patients whose cancer has progressed after prior therapies.

Despite missing the overall survival endpoint in the broader study population, sigvotatug vedotin demonstrated encouraging survival trends over docetaxel in second-line patients.

PFE’s Other Ongoing Studies on Sigvotatug VedotinBeyond the above-mentioned indication, Pfizer continues to advance the clinical development of sigvotatug vedotin through multiple ongoing studies across various stages of NSCLC and other IB6-expressing solid tumors. The key programs include a phase III study evaluating sigvotatug vedotin in combination with Merck’s (MRK - Free Report) Keytruda (pembrolizumab) as a first-line treatment for patients with advanced NSCLC whose tumors have a PD-L1 tumor proportion score of at least 50%. Pfizer is investigating sigvotatug vedotin in novel combination strategies, including with PF-08634404, its investigational bispecific antibody targeting both PD-1 and VEGF, with the aim of enhancing anti-tumor activity in early-stage lung cancer and other IB6-expressing solid tumors.

PFE’s Zacks Rank & Stocks to ConsiderPfizer currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Indivior Pharmaceuticals (INDV - Free Report) and Immunocore (IMCR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, earnings per share estimates for Indivior Pharmaceuticals remained unchanged at $4.05 for 2026 and $4.27 for 2027. INDV shares have risen 6.8% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

Over the past 30 days, earnings per share estimates for Immunocore’s 2026 were unchanged at 6 cents for 2026 and 87 cents for 2027. IMCR shares have lost 15.4% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 46.66%.

The Nasdaq Composite Index (IXIC) is down nearly 500 points midday amid the global chip selloff, with Micron Technology (MU) last seen down 11% ahead of tomorrow's earnings report. The S&P 500 Index (SPX) and Dow Jones Industrial Average (DJI) are modestly lower as well, though IBM (IBM) is keeping the latter's losses in check thanks to a fresh bull note. 

On the economic front, the U.S. flash manufacturing purchasing managers' index (PMI) climbed to 54% in June, its strongest reading since May 2022 and a fifth-consecutive expansion.

Continue reading for more on today's market, including:

IBM stock is bucking the tech rout after analyst praise. Qualcomm stock slips amid acquisition buzz.  Plus, two biopharma stocks in the spotlight; and SNDK plummets from records.

Pfizer Inc (NYSE:PFE) is one of the most popular stocks in the options pits today, as the shares eye their fourth-consecutive drop. So far, PFE has seen 173,000 calls and 192,000 puts exchanged, which is already five times the stock's average daily options volume. The August 23 put is the most popular, followed by the weekly 6/26 25.50-strike call. At last look, Pfizer stock was down 0.7% at $24.90, after mixed lung cancer drug trial results. 

Moderna Inc (NASDAQ:MRNA) is on the rise today, up 6.6% to trade at $63.23, after the biopharmaceutical company's mRNA vaccine for influenza prevention was unanimously backed by U.S. Food & Drug Administration (FDA) advisers late last week. Resuming its climb back toward last week's 52-week high of $67.74, the equity is up 109% year to date. 

SanDisk Corp (NASDAQ:SNDK) is falling sharply from record highs as memory chips sell off, sending the Korean market crashing. SNDK was last seen down 12.2% at $1,997.00, maintaining its impressive 739% return for 2026. 

Everyone is still arguing about Novo Nordisk (NYSE:NVO | NVO Price Prediction), the Danish obesity juggernaut whose GLP-1 franchise turned Wegovy and Ozempic into household names and dragged the entire pharma sector into a multi-year hype cycle. But here’s what you should actually be watching.

The reality check has already started, and the numbers are uglier than the headlines suggest. Stripped of a $4.2B non-cash 340B provision reversal, Novo’s Q1 FY26 sales actually declined 4% at constant exchange rates. Ozempic fell 14% at CER in the US and Rybelsus dropped 27%. EPS of $6.63 missed the $6.96 estimate. Management then guided FY26 adjusted sales growth to negative 4% to negative 12% at CER and confirmed a roughly 50% Wegovy list price cut and a 35% Ozempic cut in January 2027. The next-generation hope, CagriSema, missed its REDEFINE 4 primary endpoint and had its co-formulation development terminated. Add ~9,000 positions cut, a securities class-action lawsuit, and rising net debt, and the picture is unmistakable. The stock has already dropped 38.97% over the past year, yet the trade is still crowded.

Now the better setup.

Pfizer (NYSE:PFE) trades at $25.21 with a P/E of 19 and a dividend yield near 6.8%. It is washed out, ignored, and quietly executing. Three reasons retirement-focused investors should pay attention.

1. The earnings beat streak is real. Q1 FY26 adjusted EPS came in at $0.75 against a $0.7217 consensus, on revenue of $14.451 billion that grew 5.4% year over year. That is the fifth consecutive EPS beat, with launched and acquired products growing 22% operationally. Padcev rose 39%, Nurtec ODT/Vydura 42%, and Eliquis 13%.

2. Pfizer is an obesity play too, at a fraction of the price. Through the Metsera acquisition, Pfizer is advancing PF-3944, an ultra-long-acting GLP-1 with positive Phase 2b data, plus ecnoglutide, which launched in China on April 27, 2026. CEO Albert Bourla called out “approximately 20 key pivotal trial starts” for 2026, with about ten from the obesity portfolio. Investors are paying for Novo’s collapsing GLP-1 economics. They are getting Pfizer’s optionality for free.

3. The dividend is durable, and insiders are buying. Pfizer paid $0.43 per quarter across 2025 and into 2026, with full-year 2025 dividends totaling $9.8 billion. The company reaffirmed FY26 adjusted EPS guidance of $2.80 to $3.00, which comfortably covers the payout. Meanwhile, CEO Bourla has executed 7 acquisitions in the past 3 months at prices ranging from $25.33 to $28.08, alongside coordinated board-level equity acquisitions. The Vyndamax patent settlement extends US exclusivity to June 2031, pushing the feared cliff out by years.

Bourla’s own framing on the Q1 call captured it: “We’re off to a strong start in 2026… I’m particularly encouraged by what we’re seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead.”

The crowd is still litigating Novo’s bottom while the price ladder keeps stepping lower. Pfizer is up 12.98% over the past year, pays you 6.8% to wait, and offers a real pipeline. Stop chasing the obesity headlines and put Pfizer on your research list this week.

In this article

NKE

PFE

CVS

SPX

Nike says David Denton, formerly Pfizer’s chief financial officer, will join the retailer as CFO starting Aug. 17. (Drew Angerer/Getty Images)

Nike’s latest hire isn’t a retail veteran or a company insider like CEO Elliott Hill. Rather, he comes from the pharmaceutical industry.

Vancouver, British Columbia--(Newsfile Corp. - June 17, 2026) - WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (the "Company" or "WELL"), a digital health company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, is pleased to announce that at its annual general and special meeting held June 16, 2026 (the "Meeting"), all of the nominees for election as directors of the Company referred to in its notice of meeting and information circular dated May 8, 2026 for the Meeting were elected.

A total of 90,692,992 common shares representing 35.50% of the outstanding common shares of the Company were voted by proxy at the Meeting. Voting results for the election of directors at the Meeting were as follows:

ResolutionVote TypeTotal Votes% VotedKenneth CawkellFor
Withheld86,423,506
2,024,93097.71%
2.29%John KimFor
Withheld86,416,298
2,032,13897.70%
2.30%Sybil E Jen LauFor
Withheld87,483,574
964,86298.91%
1.09%Thomas ListonFor
Withheld86,974,569
1,473,86798.33%
1.67%Tara McCarvilleFor
Withheld86,114,137
2,334,29997.36%
2.64%Hamed ShahbaziFor
Withheld86,526,111
1,922,32597.83%
2.17%In addition, shareholders approved all other matters considered at the Meeting, the results of which are reported in the Report of Voting Results as filed on SEDAR+ (www.sedarplus.ca) on June 16, 2026.

WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"

Hamed Shahbazi

Chief Executive Officer, Chairman and Director

About WELL Health Technologies Corp.

WELL Health Technologies Corp. (TSX: WELL) is Canada's largest outpatient healthcare company and a leading provider of technology-enabled healthcare solutions. WELL is building the infrastructure for a healthier Canada, where every patient gets better care, every provider is empowered by AI, and every piece of health data is protected. WELL owns and operates approximately270 clinics in Canada, supporting more than 5 million annual patient visits. Through its subsidiary WELLSTAR, WELL provides electronic medical records, AI-powered clinical tools, patient engagement platforms and IT management services. WELL provides cybersecurity services through its CYBERWELL subsidiary. WELL is publicly-traded on the TSX under the symbol "WELL" and on the OTC Exchange under the symbol "WHTCF". To learn more, please visit: www.well.company.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301840

Source: WELL Health Technologies Corp.

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, /PRNewswire/ -- Welltower® Inc. (NYSE: WELL) today announced it will release second quarter 2026 financial results after the close of trading on the New York Stock Exchange on Monday, July 27, 2026. The Company will host a conference call and webcast on Tuesday, July 28, 2026, at 9:00 a.m. ET to discuss these results. The Company's earnings release will be available in the Investor Relations section of the Company's website.

Investors and other interested parties may access the conference call in the following ways:

At the Company's website: www.welltower.com. Via webcast: https://events.q4inc.com/attendee/434603250. A webcast replay will be available approximately two hours after the conclusion of the conference call and will be available for 90 days. Joining via webcast is recommended for those who will not be asking questions. By telephone: The participant toll-free dial-in number is (888) 340-5024. The international dial-in is (646) 960-0135. The conference ID number is 8230248. All phone participants are asked to dial in 15 minutes prior to the start of the call to ensure connectivity. A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on July 28, 2026 and ending on August 4, 2026. The dial-in number for United States participants is (800) 770-2030. For international participants, the replay dial-in number is (609) 800-9909. The replay conference ID number is 8230248.

About Welltower

Welltower Inc. (NYSE: WELL), an S&P 500 company, is positioned at the center of the silver economy, focusing on rental housing for aging seniors across the United States, United Kingdom, and Canada. Our portfolio of 2,500+ seniors and wellness housing communities are positioned at the intersection of housing and hospitality, creating vibrant communities for mature renters and older adults. We believe our real estate portfolio is unmatched, located in highly attractive micromarkets with stunning built environments. Yet, we are an unusual real estate organization as we view ourselves as an operating company in a real estate wrapper, driven by highly-aligned partnerships and an unconventional culture. Through our disciplined approach to capital allocation powered by our Data Science platform and superior operating results driven by the Welltower Business System - our end-to-end operating platform - we aspire to deliver long-term compounding of per share growth for our existing investors, our North Star. More information is available at www.welltower.com.

Forward-Looking Statements

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "will", "expect" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

SOURCE Welltower Inc.

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Cisco Systems (CSCO - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Cisco Systems is one of 592 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 3.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that CSCO has returned about 55.2% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 18.2%. This means that Cisco Systems is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, Arteris, Inc. (AIP - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 168.1%.

Over the past three months, Arteris, Inc.'s consensus EPS estimate for the current year has increased 20.6%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cisco Systems is a member of the Computer - Networking industry, which includes 7 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 55.1% so far this year, so CSCO is performing better this group in terms of year-to-date returns.

In contrast, Arteris, Inc. falls under the Internet - Software industry. Currently, this industry has 170 stocks and is ranked #86. Since the beginning of the year, the industry has moved -11.6%.

Cisco Systems and Arteris, Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

Cisco Systems (CSCO - Free Report) closed at $119.44 in the latest trading session, marking a +1.8% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.09%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 1.91%.

Shares of the seller of routers, switches, software and services have appreciated by 2.61% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.22%, and the S&P 500's gain of 0.29%.

Investors will be eagerly watching for the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.17, up 18.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $16.85 billion, up 14.86% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $62.95 billion, indicating changes of +12.34% and +11.11%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cisco Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.45% upward. Cisco Systems is currently a Zacks Rank #2 (Buy).

Investors should also note Cisco Systems's current valuation metrics, including its Forward P/E ratio of 27.41. For comparison, its industry has an average Forward P/E of 27.29, which means Cisco Systems is trading at a premium to the group.

It's also important to note that CSCO currently trades at a PEG ratio of 2.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Networking industry stood at 1.98 at the close of the market yesterday.

The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways DDOG is expanding its platform and AI observability capabilities, supporting customer adoption.CSCO strengthened observability through Splunk, growing ARR and subscription revenue.DDOG trades at a valuation premium to Cisco despite both benefiting from observability demand. Datadog (DDOG - Free Report) and Cisco Systems (CSCO - Free Report) are key players in the growing observability market, helping enterprises monitor and optimize complex IT environments. As cloud adoption, AI workloads and digital transformation initiatives accelerate, organizations are generating larger volumes of infrastructure, application and security data, driving demand for real-time monitoring and analytics solutions.

Observability platforms have become essential for maintaining performance, reliability and security across modern technology stacks. While Datadog offers a cloud-native observability platform, Cisco has strengthened its position through the Splunk acquisition, expanding its reach across observability, security and AI operations. Both companies are well-positioned to capitalize on the expanding observability opportunity.

Let's examine the fundamentals and growth drivers of both companies to determine which stock offers a better long-term investment opportunity.

The Case for DDOGDatadog continues to strengthen its position in observability through a platform expansion strategy that is driving higher customer adoption and spending. DDOG offers 26 products spanning infrastructure monitoring, application performance monitoring, log management, security and AI observability. This breadth has supported cross-selling momentum, with five products generating more than $100 million in annual recurring revenue (ARR) and three additional products contributing between $50 million and $100 million in ARR. Total ARR surpassed $4 billion in the first quarter of fiscal 2026, highlighting the increasing scale of the platform.

DDOG has been benefiting from strong enterprise demand. Revenues for first-quarter of fiscal 2026 increased 32% year over year, while free cash flow margin remained at 29%. Growth has been broad-based, with the non-AI customer cohort accelerating to the mid-20% range, indicating that demand extends beyond AI-native customers.

AI observability is emerging as a key catalyst. Datadog has expanded its capabilities through GPU Monitoring, LLM Observability and Bits AI offerings, enabling customers to manage complex AI environments. Adoption trends remain encouraging, with Datadog MCP Server tool calls quadrupling sequentially during the fiscal first quarter. DDOG is expanding security observability capabilities to address AI-specific threats while introducing deployment options that help customers meet data residency and compliance requirements.

Further growth is expected to be supported by FedRAMP High certification and a planned U.K. data center expansion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.31 billion, indicating 25.7% year-over-year growth.

The Case for CSCOCisco has been strengthening its observability position through the integration of Splunk, enabling it to offer a broader platform spanning observability and security analytics. Unlike Datadog, Cisco benefits from a large installed base across networking, data center and security infrastructure, creating opportunities to embed observability capabilities deeper within enterprise environments. This integrated approach is expected to support cross-selling and customer retention as organizations increasingly seek unified visibility across their IT operations.

CSCO has also been benefiting from strong enterprise technology spending trends. In the third quarter of fiscal 2026, revenues increased 12% year over year to $15.8 billion, while product orders grew 35% year over year, reflecting broad-based demand across enterprise, public sector and cloud customers. Cisco's recurring revenue profile continues to strengthen, with ARR reaching $31.2 billion and subscription revenues accounting for 49% of total revenues.

Agentic security observability is emerging as a key catalyst. Cisco has been expanding capabilities that combine observability, threat detection and automated response across enterprise environments. Hypershield and AI Defense extend visibility across AI deployments, while the pending acquisitions of Galileo and Astrix are expected to add agentic identity, access management and behavior monitoring capabilities, strengthening the company's observability and security portfolio.

Further growth is likely to be supported by Cisco's expanding software mix, strong cash generation and deep enterprise relationships. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $62.95 billion, indicating 11.11% year-over-year growth.

DDOG vs. CSCO: Price Performance and ValuationYear to date, shares of CSCO have jumped 55.2%, trailing DDOG's 64% return. Both stocks have benefited from strong AI-related demand, with Datadog's gain led by its AI observability catalysts and Cisco's supported by its broader networking, security and AI infrastructure base.

DDOG Outperforms CSCO YTD
Image Source: Zacks Investment Research

DDOG currently trades at a forward 12-month price-to-sales (P/S) multiple of 16.86X, well above CSCO’s 7.01X. Datadog's premium to Cisco appears difficult to justify given Cisco's expanding observability footprint through Splunk, larger recurring revenue base, broader enterprise reach and growing software subscription business.

DDOG Vs CSCO : Forward 12-Month P/S Valuation
Image Source: Zacks Investment Research

ConclusionBoth Datadog and Cisco are well-positioned to capitalize on the growing observability opportunity. While Datadog continues to deliver robust growth, Cisco has significantly strengthened its position through the integration of Splunk. Given its larger recurring revenue base, broader enterprise footprint and more attractive valuation, CSCO appears to offer a more compelling investment opportunity than DDOG.

DDOG and CSCO 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.

The U.S. Supreme Court further limited the reach of a federal law used to hold corporations liable for human rights ​abuses committed abroad, as it issued a ruling on Tuesday ending a lawsuit by members of the Falun Gong ‌movement accusing Cisco Systems of facilitating religious persecution in China.

W.P. Carey (WPC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for W.P. Carey basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for W.P. Carey imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for W.P. CareyFor the fiscal year ending December 2026, this real estate investment trust is expected to earn $5.28 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for W.P. Carey. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of W.P. Carey to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

It has been about a month since the last earnings report for Lowe's (LOW - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Lowe's due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Lowe's Companies, Inc. before we dive into how investors and analysts have reacted as of late.

Lowe’s Q1 Earnings Beat on Pro Momentum & Strong Spring ExecutionLowe’s reported first-quarter fiscal 2026 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate. The home improvement retailer delivered another quarter of positive comparable sales growth, driven by strong spring execution, continued momentum in the Pro and online businesses, and solid demand across appliances and home services.

Management has highlighted that Lowe’s Total Home strategy continues to resonate with both Pro and DIY customers despite a challenging housing backdrop. The company has also reaffirmed its fiscal 2026 outlook, reflecting confidence in strategic initiatives, productivity improvements and ongoing market-share gains.

LOW’s Quarterly Performance: Key Metrics & InsightsAdjusted earnings were $3.03 per share, rising 3.8% year over year and beating the Zacks Consensus Estimate of $2.96 by 2.4%. On a reported basis, earnings per share came in at $2.90 compared with earnings of $2.92 in the prior-year quarter. Results included $96 million in pre-tax expenses tied to the acquisitions of Foundation Building Materials and Artisan Design Group.

Net sales came in at $23.1 billion, rallying 10.3% from the year-ago quarter and surpassing the consensus mark of $22.9 billion by 0.6%. The upside was fueled by a 0.6% increase in comparable sales and was supported by strong spring demand, continued strength in Pro sales and a robust 15.5% increase in online sales. Appliances and home services also remained key growth contributors during the quarter.

Lowe’s Sees Margin Pressure Despite Higher SalesGross profit increased 8% to $7.54 billion from $6.99 billion in the prior-year quarter. The gross margin for the quarter was 32.7%.

Selling, general and administrative expenses increased 9.3% to $4.42 billion from $4.05 billion in the prior-year period. However, SG&A expenses, as a percentage of sales, improved 10 basis points year over year to 19.2%. Depreciation and amortization expenses rose to $566 million from $446 million a year ago.

Consequently, operating income increased 2.4% to $2.55 billion from $2.49 billion in the prior-year quarter. However, the operating margin contracted 80 basis points year over year to 11.1%.

Lowe’s Cash Flow & Capital Returns Stay in FocusThe company ended the quarter with cash and cash equivalents of $786 million compared with $3.05 billion in the year-ago period. Long-term debt, excluding current maturities, was $36.75 billion. Merchandise inventory stood at $18.5 billion.

Net cash provided by operating activities totaled $3.35 billion during the quarter compared with $3.38 billion in the prior-year period. Capital expenditure was $521 million. During the quarter, Lowe’s paid out $674 million in dividends and repurchased $363 million worth of common stock.

LOW Reaffirms FY26 OutlookLowe’s reaffirmed its fiscal 2026 guidance and expects total sales between $92 billion and $94 billion, indicating year-over-year growth of 7-9%. Comparable sales are anticipated to be flat to up 2%.

The company projects the operating margin between 11.2% and 11.4%, while the adjusted operating margin is expected to be 11.6-11.8%. Lowe’s expects earnings per share of $11.75-$12.25 and adjusted earnings per share of $12.25-$12.75. Capital expenditure is expected to rise to $2.5 billion.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

VGM ScoresAt this time, Lowe's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Lowe's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerLowe's belongs to the Zacks Retail - Home Furnishings industry. Another stock from the same industry, Home Depot (HD - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.

Home Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.

For the current quarter, Home Depot is expected to post earnings of $4.71 per share, indicating a change of +0.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.

Home Depot has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

Lennar (LEN +5.54%) saw fiscal second-quarter home deliveries increase 2% to 20,519. However, the homebuilder reported a lower average sales price of $371,000, including nearly 13% in incentives and base-price "adjustments" designed to boost demand amid affordability issues. It's the lowest price reported in several years. The results were for the period ended March 31.

However, while that suggests a tough economy, making homes more affordable should carry over to existing homes and boost unit sales across the board. In May, the National Association of Realtors' Housing Affordability Index registered 105.6, an improvement from 97.5 in the year-ago period (higher numbers indicate greater affordability). The index measures the affordability of existing home sales.

While it may play out over time, reduced home prices will benefit the home improvement sector, and its leading retailer, Home Depot (HD +2.63%).

Image source: Getty Images.

Spurring home sales Lower prices should boost existing home sales, although no one can predict the exact timing. That's good for Home Depot.

When people buy homes, they tend to take on projects, including major renovations. After all, they want the house to suit their tastes.

Sluggish home sales and the lack of big projects have hurt Home Depot's sales. The company's fiscal first-quarter same-store sales increased by a tepid 0.4% and were flat globally after removing foreign-currency translation effects. The results were for the period that ended on May 3. Management expects just flat to 2% comps growth for the year.

CEO Ted Decker cited consumer uncertainty and housing affordability as factors influencing home improvements. Management noted that homeowners took on smaller projects rather than major renovations.

Borrowing costs High interest rates have also tempered homebuying and home improvement demand. In the wake of the Iran war and spike in oil prices, long-term interest rates increased, affecting mortgage rates.

The 30-year fixed-rate mortgage rate was 6.47% for the week ending on June 18, according to Freddie Mac data. At the end of February, before hostilities broke out, the average mortgage rate was 5.9%.

All else equal, and assuming home prices don't increase, this trend should boost homebuying demand. That's because lower mortgage rates translate into a lower monthly payment. That's another component that would make buying a house more affordable.

Patient investing approach Of course, lower home prices won't immediately boost homebuying demand. It takes time to work through the process. But it remains basic economics: lower prices equate to higher demand. In turn, people take on major home improvement projects, as they've always done.

Why will that benefit Home Depot? After all, people who do their own work or hire professional contractors have many choices.

Home Depot remains the largest home-improvement retailer, providing shoppers with attractive prices, a wide range of products and services, and convenience. Its $165 billion in annual sales dwarf those of its nearest competitor, Lowe's (LOW +2.29%).

Management has also taken steps to broaden its reach among professional contractors. This includes acquiring SRS Distribution for $18.3 billion in 2024 and subsequently purchasing GMS for $5.5 billion.

Meanwhile, investors have sent the share price down, but this has been due to short-term economic concerns. Home Depot's stock dropped 2.9% this year through June 18 compared to the S&P 500 index's 9.6% gain.

Today's Change

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333.00

This presents a buying opportunity for those patient enough to wait out the economic situation, which shows positive initial signs for Home Depot. The shares trade at a price-to-earnings (P/E) ratio of 24 compared to 28 earlier this year. Large-cap stocks, measured by the S&P 500, have a P/E ratio of 32.

With an attractive valuation and a more favorable economic outlook, Home Depot shares should rebound, rewarding patient investors.

On June 22, 2026, Lowe's Companies Inc LOW shares fell 3.5% today to a current price of $214.40. Over the last week, the stock has decreased by 2.6%, and it has dropped 10.3% year-to-date. The shares have experienced significant volatility over the past 52 weeks, with a high of $293.06 and a low of $203.40.

GF Value™ verdict: The current price of $214.40 is 14.0% below the GF Value™ estimate of $249.28, indicating that the stock is undervalued.GF Score™: With a score of 84/100, Lowe's demonstrates strong overall performance and potential for long-term returns.Most notable signal: Insider selling activity has been noted, with insiders selling $5.2 million in the last three months. Is LOW Overvalued or Undervalued? Based on the current price of $214.40 compared to the GF Value™ estimate of $249.28, Lowe's appears to be undervalued by 14.0%. This margin of safety presents an opportunity for potential investors, as the stock is trading below its estimated intrinsic value. The GF Valuation label categorizes Lowe's as modestly undervalued, suggesting that there is room for price appreciation in the future if the company's fundamentals remain strong.

However, it is important to consider the risks associated with investing in a stock that has seen a decline in price year-to-date and recent insider selling activity. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, which reinforces the notion that the current valuation may not fully reflect the company's potential.

How Does LOW's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)18.1x19.8x Forward P/E17.1xN/A The current P/E (TTM) of 18.1x is 8% below its 5-year median P/E of 19.8x, indicating that the stock is trading below its historical valuation multiples. This P/E analysis aligns with the GF Value™ verdict, further substantiating the claim that Lowe's is undervalued at its current price. The forward P/E of 17.1x also suggests a more favorable valuation outlook for the upcoming period.

What Does LOW's GF Score™ Tell Us? MetricRating GF Score™84 Financial Strength4/10 Profitability9/10 Growth7/10 Valuation10/10 Momentum5/10 Lowe's GF Score™ of 84/100 indicates strong potential for long-term returns. The strongest area is its profitability rank of 9/10, suggesting efficient operations and high margins. Conversely, the financial strength score of 4/10 highlights some weaknesses in the company's balance sheet, which may warrant further scrutiny. The valuation rank of 10/10 supports the notion of the stock being undervalued, while a momentum rank of 5/10 suggests that the stock's price performance could improve.

What Are Insiders Doing with LOW Stock? In the past three months, insiders have sold $5.2 million worth of Lowe's stock, with no reported insider buying. This trend of insider selling may raise concerns about the company's near-term prospects, as insiders typically possess valuable insights into the business's health. The absence of insider purchases could also suggest a lack of confidence among executives regarding the company's stock performance in the immediate future.

What This Means for Investors Based on the analysis of GF Value™, Lowe's Companies Inc LOW is currently considered undervalued, presenting a potential opportunity for investors. However, caution is warranted due to the recent insider selling and overall price decline.

For the complete analysis, visit the Lowe's Companies Inc LOW stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LOW's GF Score™?

The GF Score™ for Lowe's is 84/100, indicating strong overall performance and the potential for higher long-term returns based on historical backtests.

Is LOW overvalued or undervalued?

Lowe's is currently undervalued, with a GF Value™ estimate of $249.28 compared to its current price of $214.40.

What is LOW's P/E ratio?

Lowe's current P/E (TTM) is 18.1x, which is 8% below its historical 5-year median P/E of 19.8x, suggesting it is trading at a favorable valuation compared to its past performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Home Depot leads in scale, Pro strength, market share gains and an addressable market near $1.2T.Lowe's is gaining share through Total Home, Pro initiatives, home services and digital investments.Home Depot has more stable EPS estimates, while Lowe's trades at a lower forward P/E valuation. The rivalry between The Home Depot Inc. (HD - Free Report) and Lowe’s Companies Inc. (LOW - Free Report) defines the U.S. home improvement retail market. As the industry’s two largest players, both companies serve do-it-yourself shoppers, professional contractors and homeowners seeking tools, building materials, appliances, décor and renovation solutions. Yet their market positions are not identical.

Home Depot remains the clear leader, supported by greater scale, a stronger professional customer base and higher sales productivity. Lowe’s, while the second-largest player, continues to strengthen its operations, improve customer experience and pursue growth opportunities to narrow the gap.

Although HD and LOW operate similar businesses, differences in market share, execution, customer mix and strategic focus shape their investment appeal. With housing trends, repair demand and consumer spending influencing performance, this face-off examines which home improvement giant is better-positioned in today’s competitive landscape.

The Case for HDHome Depot remains the undisputed leader in the North American home improvement market, leveraging its scale, brand strength and extensive distribution network to capture incremental market share even amid a challenging housing backdrop. Management highlighted that the company continues to gain share across the industry, supported by a vast footprint of more than 2,360 stores, 325 customer-facing warehouses and above 1,300 SRS distribution branches.

The recent acquisition of Mingledorff’s expands Home Depot’s reach into the $100-billion HVAC distribution market, increasing its total addressable market to $1.2 trillion. Meanwhile, the company sees a $700-billion opportunity within the professional contractor segment, reinforcing its leadership position in a highly fragmented industry.

The investment case is strengthened by Home Depot’s sharp focus on the Pro customer, a $700-billion opportunity. Management is expanding trade credit, jobsite delivery, AI-powered material list tools, project planning capabilities and a unified Pro digital workspace. Digital sales increased more than 10% year over year, marking the fourth straight quarter of double-digit growth.

Home Depot delivered resilient results despite macroeconomic pressures. First-quarter fiscal 2026 sales increased 4.8% year over year to $41.8 billion, while Pro sales outperformed DIY demand and big-ticket transactions returned to positive growth. The company generated a strong 25.4% return on invested capital, with $845 million of investment in growth initiatives and reaffirmed its expectation for continued market share gains in fiscal 2026. Management’s commitment to strategic acquisitions, digital innovation and customer-centric execution positions Home Depot to strengthen its competitive moat and drive long-term shareholder value.

The Case for LOWLowe’s has strengthened its position as the second-largest home improvement retailer in North America by consistently gaining market share despite a challenging housing environment. In the first quarter of fiscal 2026, sales increased 10.3% year over year to $23.1 billion, while comparable sales rose 0.6%, marking the fourth consecutive quarter of positive comps.

Management noted that Lowe’s continues to take share through its Total Home strategy, which targets growth across Pro customers, online channels, home services and new construction markets. The acquisitions of FBM and ADG further expand Lowe’s reach into the estimated $250-billion new-home and multi-family construction market, creating a meaningful growth runway beyond its traditional retail business.

Lowe’s competitive advantage lies in its balanced portfolio and customer-centric strategy. Roughly two-thirds of revenues come from repair and maintenance categories, while one-third is tied to discretionary projects. The company continues to deepen relationships with small and medium-sized Pros through its MyLowe’s Pro Rewards program, Pro Extended Aisle initiative and enhanced fulfillment capabilities.

Digital innovation is another major differentiator, with online sales rising 15.5% and the AI-powered Mylow assistant now handling more than one million customer inquiries monthly, significantly boosting online conversion rates.

Lowe’s financials remain highly resilient. Adjusted EPS increased 3.8% to $3.03, the free cash flow reached $2.8 billion and return on invested capital stood at an impressive 26.8%. Continued investments in AI, home services, loyalty programs and productivity initiatives position Lowe’s to capture additional market share while enhancing profitability. As housing conditions normalize, the company appears well-placed to leverage its strong brand, omnichannel capabilities and expanding Pro ecosystem to drive long-term shareholder value.

HD vs. LOW: How Do Estimates Stack Up?The Zacks Consensus Estimate for Home Depot’s fiscal 2026 sales and EPS implies year-over-year growth of 4.2% and 2.2%, respectively. For fiscal 2027, the consensus estimate indicates a 4% rise in sales and 8% growth in EPS. The consensus estimate for fiscal 2026 EPS has been unchanged in the past 30 days, while the estimate for fiscal 2027 moved down 0.2% in the same period. 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lowe’s fiscal 2026 sales and EPS implies growth of 7.9% and 1.6%, respectively, from the year-ago period’s actuals. For fiscal 2027, the consensus estimate indicates a 3.3% rise in sales and 7.9% growth in EPS. The consensus estimate for fiscal 2026 and 2027 EPS has moved down 0.6% and 0.9%, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Home Depot appears better-positioned on estimate revisions, with projections largely stable despite a softer macro backdrop. While both companies are expected to deliver growth, Lowe’s has seen broader downward EPS revisions across the forecast period. This gives HD an edge, signaling greater confidence in its earnings visibility and execution.

HD vs. LOW: A Look at Stock Performance & ValuationLowe’s shares have plunged 8.6% in the past three months, trailing Home Depot’s loss of 1.3%.

Image Source: Zacks Investment Research

Home Depot is trading at a forward 12-month price-to-earnings (P/E) ratio of 21.1X, below its five-year median of 22.27X. Meanwhile, Lowe’s forward P/E ratio stands at 16.66X, below its five-year median of 17.55X.

Image Source: Zacks Investment Research

Lowe’s has underperformed Home Depot recently, reflecting weaker investor sentiment. However, both stocks trade below their historical valuation norms, suggesting some discount is already priced in. While Lowe’s appears cheaper on valuation, Home Depot’s stronger relative share performance points to better market confidence and perceived resilience.

HD vs. LOW: Which Is a Better Bet?Both Home Depot and Lowe’s remain strong home improvement leaders with solid brands, broad store networks, expanding digital capabilities and meaningful upside when housing and renovation demand improves. Lowe’s continues to execute well through its Total Home strategy, Pro initiatives, home services expansion and technology investments. Its lower valuation may appeal to value-focused investors.

However, Home Depot wins this face-off. Its larger scale, stronger Pro ecosystem, leadership position and expanding addressable market provide a stronger foundation for long-term growth. HD also stands out for better estimate revision trends and stronger recent stock performance, reflecting greater investor confidence in its execution and earnings visibility.

Although Home Depot trades at a richer valuation than Lowe’s, that premium appears justified by its superior market position, resilient business model and stronger growth prospects. The valuation gap ultimately signals confidence in HD’s ability to keep gaining share and delivering durable shareholder returns.

Both Home Depot and Lowe’s carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lowe's all-new Creator: Into the Blue program provides a forum for creators to pitch, develop and launch product ideas

, /PRNewswire/ -- As Lowe's Creator Network hits its one-year milestone, today the company announced the next evolution of growing with creators. Now, creators in the network, and even those new to joining, will have an opportunity to evolve from content creation to product creation. Through the new program, Lowe's Creator: Into the Blue, creators can pitch innovative product ideas to Lowe's for potential future retail distribution, with the full support of Lowe's product design and development teams to help bring their vision to life. Designed to help creators grow their businesses through product creation, Lowe's Creator: Into the Blue expands Lowe's existing focus on creator partnerships and product innovation.

This includes:

Lowe's Creator Network, launched in 2025 as the first creator network in the home improvement industry, which helps creators grow through content and curation by connecting creators with Lowe's to share DIY projects, home improvement inspiration and product recommendations, alongside personalized Lowes.com storefronts that allow creators to curate product selections for their audiences.Lowe's Into the Blue launched in 2022 to help entrepreneurs bring innovative products to Lowe's customers.Lowe's recent collaboration with global creator MrBeast, whose collectible toy kit demonstrated how creator partnerships can evolve beyond content and curation into creation through products that connect with customers in new ways.As more creators look to expand their businesses through product development, this new program expands creation opportunities to creators of all sizes, even if they are not yet part of Lowe's Creator Network. By joining Lowe's Creator and leveraging the company's credibility in bringing products to market, selected creators may have the opportunity to develop ideas inspired by their audiences with support from Lowe's product development, product design, sourcing and merchandising teams.

"Creators today are evolving their ideas and audiences into businesses, brands and products," said Jen Wilson, Lowe's senior vice president and chief marketing officer. "Through Lowe's Creator Network, we've helped creators grow through content and curation, and we took it a step further with MrBeast by expanding the collaboration into creation with the launch of new products and workshops. Lowe's Creator: Into the Blue is the next evolution of that strategy, allowing us to help more creators move into creation and turn their ideas into products and scalable businesses."

Creators may submit a range of ideas, including:

Existing products seeking distribution, scale and retail exposureProduct ideas needing development and sourcing supportCollaborations tied to an existing Lowe's product lineApplications are now open* through Sept. 1, 2026 at Lowes.com/CreateWithLowes. Lowe's will review submissions following the application period and announce selected creators at a later date.

*Visit Lowes.com/CreateWithLowes for full terms and conditions.

About Lowe's
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company with total fiscal 2025 sales of more than $86 billion. Lowe's employs approximately 300,000 associates and operates over 1,750 home improvement stores, 540 branches and 120 distribution centers. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Contact:
Taylor Bolden
Lowe's Companies, Inc.
[email protected]

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SOURCE Lowe's Companies, Inc.