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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Zillow To Contact Him Directly To Discuss Their Options

If you purchased or acquired Class A or Class C Zillow common stock between February 11, 2025 and May 7, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

New York, New York--(Newsfile Corp. - June 22, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zillow Group, Inc. ("Zillow" or the "Company") (NASDAQ: ZG) (NASDAQ: Z) and reminds investors of the August 10, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Zillow's agreement with Redfin was not a "partnership," but rather an acquisition of Redfin's business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and or lacked a reasonable basis at all relevant times.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Zillow's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Zillow class action, go to www.faruqilaw.com/Z or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Frequently Asked Questions (FAQ) for Investors Regarding the Zillow Securities Class Action Lawsuit:

What is the Zillow securities fraud lawsuit about?

The lawsuit alleges Zillow misrepresented its agreement with Redfin as a partnership, understated antitrust and regulatory risks, and downplayed potential legal exposure, making statements about its business and prospects allegedly misleading.

Who may be eligible to participate in the lawsuit?

Investors who purchased or acquired Zillow Class A or Class C common stock (NASDAQ: Z) (NASDAQ: ZG) between February 11, 2025 and May 7, 2026 may be eligible to participate if they suffered losses related to the alleged misconduct.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff represents the interests of the proposed class and helps oversee the litigation. Investors seeking appointment must file a motion with the court by August 10, 2026. Investors can share in any recovery without serving as lead plaintiff.

What should investors do if they purchased Zillow stock during the Class Period?

Investors should review their transaction records, preserve relevant documents, and evaluate their legal options. Those who suffered losses may wish to consult counsel regarding participation in the lawsuit or seeking lead plaintiff status before the deadline.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zillow securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302369

Source: Faruqi & Faruqi LLP

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Summer Launch 2026 introduces four new products to help buyers plan, finance and find a home, and give sellers more exposure before their listing goes live

, /PRNewswire/ -- Today, Zillow® is launching a personalized hub that guides home buyers through every step of their purchase in real time. In addition, three new features have been designed to give buyers and sellers more clarity at every stage of the transaction.

Today, Zillow® is launching a personalized hub that guides home buyers through every step of their purchase in real time. In addition, three new features have been designed to give buyers and sellers more clarity at every stage of the transaction.

Zillow's new personalized hub guides buyers through four milestones: setting a budget, finding a home, making an offer and closing the deal. It brings together goals, finances, tasks, documents, and the agent and lender a buyer is working with, all in one place.

Now buyers have a way to shop with Zillow Home Loans Verified Pre-approval, with that pre-approval connected directly to a buyer’s home search. Buyers will clearly see whether a listing is a match or is out of their price range as they browse.

The new shared collection feature replaces that with a single shared workspace inside Zillow, where buying partners can save, organize and compare homes together in real time, with any update immediately visible to both people, across iOS, Android and the web.

Zillow Preview gives soon-to-be sellers the opportunity to hire an agent to show their listing to the broadest online audience possible before it actually goes on the market. During this window, the home appears in every buyer’s regular Zillow search, with a Preview label.

Zillow's new personalized hub guides buyers through four milestones: setting a budget, finding a home, making an offer and closing the deal. It brings together goals, finances, tasks, documents, and the agent and lender a buyer is working with, all in one place.

Now buyers have a way to shop with Zillow Home Loans Verified Pre-approval, with that pre-approval connected directly to a buyer’s home search. Buyers will clearly see whether a listing is a match or is out of their price range as they browse.

The new shared collection feature replaces that with a single shared workspace inside Zillow, where buying partners can save, organize and compare homes together in real time, with any update immediately visible to both people, across iOS, Android and the web.

Zillow Preview gives soon-to-be sellers the opportunity to hire an agent to show their listing to the broadest online audience possible before it actually goes on the market. During this window, the home appears in every buyer’s regular Zillow search, with a Preview label.

The median home search for a buyer takes from three to four months, involves countless conversations with an agent and lender, and culminates in gathering documents at a few days' notice, all while tracking a budget on a spreadsheet. It's a process that moves more than half of buyers to tears, according to Zillow research. And today's market conditions aren't making it any easier. Buyers, nearly half of whom are first-timers, are navigating a market where the housing recovery is "back on pause," with mortgage rates climbing past 6.5%, adding more uncertainty to an already complex process.

Now, Zillow is giving buyers a clearer path forward: a single place where everything comes together. The new personalized hub guides buyers through four milestones: setting a budget, finding a home, making an offer and closing the deal. It brings together goals, finances, tasks, documents, and the agent and lender a buyer is working with, all in one place. And all of those details update automatically as the journey evolves, so buyers always know where they stand and what to do next.

"Zillow has spent 20 years turning on the lights in real estate, giving buyers and sellers access to information they'd never had before," said Jeremy Wacksman, Zillow's chief executive officer. "The next frontier is the journey itself: the financing, the coordination, the offer, the closing. For the first time, every home shopper on Zillow has a single place that brings it all together, so instead of wondering what comes next, they always know exactly where they are and what to do."

Personalized moving hub: A clear path from first search to closing
Home shoppers start by answering a single question, "Are you buying, selling, both, or just browsing?" From there, they receive a personalized plan.

The hub immediately displays:

BuyAbility℠: This personalized, real-time affordability tool helps buyers understand the range of home prices and monthly payments that may fit their financial situation. They can then use that guidance to shop for homes that are realistically within reach. That information is updated with live mortgage rates. Local market insights: This includes market conditions, median days to pending, active listings and a one-year price forecast. The shopper's team: If a buyer is already working with an agent and loan officer, those contacts are given in this view. If the buyer doesn't have a team, the hub brings up Agent Finder to connect them with an agent in their area. From there, buyers are guided through four milestones: setting a budget, finding a home, making an offer and closing the deal. The hub shows buyers which areas to focus on and lists the steps to follow below each milestone. Progress is updated automatically — when a buyer gets pre-approved, the hub moves forward; when they go under contract, closing tasks appear.

The hub is available now on iOS and Android, and will be coming soon to Zillow.com.

Three additional Summer Launch features give buyers and sellers the tools to plan their move
Zillow's Summer Launch goes beyond offering the personalized moving hub with the addition of three new features designed to help buyers and sellers move forward during those moments that matter most.

"Every feature in our Summer Launch was designed around a specific moment when buyers lose clarity or momentum," said Christopher Roberts, chief product officer at Zillow. "The hub gives buyers confidence by making a complex process easier. The shared collection feature helps partners collaborate on their home search, and the ability to shop with Verified Pre-approval shows buyers what they can actually afford on every listing, not just the list price. Zillow Preview opens the pre-market to every buyer, not just those in a certain network. Together, these features remove the friction that makes the home-buying process so hard."

Zillow Preview
Zillow PreviewSM gives soon-to-be sellers the opportunity to hire an agent to show their listing to the broadest online audience possible before it actually goes on the market. During this window, the home appears in every buyer's regular Zillow search, with a Preview label.

Buyers can now filter specifically for Preview listings. Once they find a home they're interested in, they can save it, pre-book a tour or use the time to get pre-approved — signals that indicate serious buyer interest. Sellers get real-time engagement data on views, saves and tour requests to refine their list price and strategy before their listing is fully active. Preview is available through more than 1,200 participating brokers nationwide.

With Zillow Preview, no private network is required. But sellers who decide to go the private-network route pay a price: They lose access to the full buyer pool and net 1.5% less on their sale, which could amount to more than $30,000 in high-cost markets, according to Zillow research. A Zillow survey conducted by The Harris Poll finds that 85% of soon-to-be sellers would be more likely to hire an agent who can show their listing to the broadest online audience before putting it on the market.

Shop with Zillow Home Loans Verified Pre-approval
Most buyers lack financial clarity when they start their home search. Only 28% of prospective buyers who plan to finance have been pre-approved before they begin their search, and about half don't know what pre-approval means, according to Zillow research.

Now buyers have a way to shop with Zillow Home Loans Verified Pre-approval, with that pre-approval connected directly to a buyer's home search. Buyers will clearly see whether a listing is a match or is out of their price range as they browse.

A home costs more than its list price. That's why taxes, insurance, HOA fees and closing costs are factored into Verified Pre-approval, so buyers understand why a higher-priced home may still fit within their means, or a lower-priced one may not. Zillow Home Loans is the only lender to integrate financing directly into the home search in this way, with the buyer's loan officer accessible throughout the process.

Shared collection
Most people buying a home aren't doing it alone. More than half of buyers in 2025 purchased their home with a partner, according to Zillow research, and for most of them, coordinating their search consisted of texting screenshots and forwarding listing links. The new shared collection feature replaces that with a single shared workspace inside Zillow, where buying partners can save, organize and compare homes together in real time, with any update immediately visible to both people, across iOS, Android and the web.

Tech momentum at Zillow keeps growing
Today's launch is the latest move by Zillow to streamline the home-buying process and build consumer confidence throughout the full transaction.

In summer 2025, the company introduced SkyTour, an interactive 3D exterior home tour built on Gaussian splatting technology originally developed by the gaming industry; and Offer Insights, a tool that shows buyers in real time how competitive different offer prices might be. In fall 2025, Zillow launched in-app messaging for co-shoppers, AI-powered virtual staging on ShowcaseSM listings, and an integrated closing dashboard, connecting the front end of the search with the back end of the transaction.

Earlier this year, Zillow launched Zillow AI mode, a conversational AI experience built directly into the app that lets buyers and renters ask questions in plain language, explore neighborhoods, compare affordability and book tours without leaving Zillow. Now available to a growing number of users, it will be expanding throughout the year.

About Zillow Group: 
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime® and dotloop®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

SOURCE Zillow

NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of Class A or Class C common stock of Zillow Group, Inc. (NASDAQ: ZG) (NASDAQ: Z) between February 11, 2025 and May 7, 2026, both dates inclusive (the “Class Period”), of the important August 10, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.

SO WHAT: If you purchased Zillow common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 10, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Zillow’s agreement with Redfin Corporation was not a “partnership,” but rather an acquisition of Redfin’s business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, defendants’ statements about Zillow’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

Contact Information:

        Laurence Rosen, Esq.
        Phillip Kim, Esq.
        The Rosen Law Firm, P.A.
        275 Madison Avenue, 40th Floor
        New York, NY 10016
        Tel: (212) 686-1060
        Toll Free: (866) 767-3653
        Fax: (212) 202-3827
        [email protected]
        www.rosenlegal.com

NEW YORK, June 24, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Zillow Group, Inc. (NASDAQ:Z, ZG) and certain of the Company’s senior executives for securities fraud after significant stock drops resulting from potential violations of the federal securities laws.

Lead Plaintiff Deadline: August 10, 2026Alleged Misconduct: Securities fraud relating to Zillow’s allegedly anticompetitive agreement with Redfin CorporationLargest Alleged Stock Drop: February 11, 2026 – 16.54% Stock Drop on Class C shares; 17.13% Stock Drop on Class A shares.Court: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights Investors have until August 10, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Zillow Class C and Class A common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned Breidert v. Zillow Group, Inc., et al., No. 26-cv-02016.

Why is Zillow Being Sued for Securities Fraud?

On February 6, 2025, Zillow entered into an agreement with Redfin through which Zillow became the exclusive provider of multifamily rental listings on Redfin’s platform and affiliate websites, including Rent.com. According to the complaint, during the relevant period, Zillow characterized the agreement with Redfin as a “partnership” that would provide Zillow exclusive access to Redfin’s advertising platform.

As alleged, in truth, under the terms of the agreement, Zillow paid Redfin $100 million to stop competing with Zillow, facilitate the transition of its multifamily rental advertising business to Zillow, and close the remainder of its business.

Why did Zillow’s Stock Drop?

On September 30, 2025, the FTC filed a complaint against Zillow and Redfin alleging violations of the federal antitrust laws. According to the FTC complaint, “Zillow and Redfin executed an unlawful agreement to remove competition from [the online rental marketplaces industry], starting with a $100 million payment to Redfin to exit the [Internet Listing Services] market.” In sum, the FTC alleged, “[t]his agreement is nothing more than an end run around competition on the merits with Redfin for customers…” This news caused the price of Zillow’s Class C and A common stock to decline 4.33% and 4.5%, respectively.

On February 10, 2026, Zillow’s CFO told investors that Zillow experienced increased legal expenses which “will result in approximately 200 basis points headwind to EBITDA margins in Q1.” On this news, the price of Zillow’s Class C and A common stock declined 16.54%, and 17.13%, respectively.

Finally, on May 7, 2026, Reuters reported that a “federal judge rejected [Zillow and Redfin’s] request to end a [FTC] lawsuit accusing them of illegally agreeing to suppress competition for online apartment rental listings.” This news caused the price of Zillow’s Class C and A common stock to decline 1.9% and 1.76%, respectively.   

Click here for more information: https://www.bfalaw.com/cases/zillow-class-action-lawsuit.

What Can You Do?

If you invested in Zillow, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/zillow-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.” 

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/zillow-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

I have been adding to MercadoLibre on every leg down this June, and my finger is still on the buy button. MercadoLibre (NASDAQ:MELI | MELI Price Prediction) is down 31.71% over the past year and 18.99% year to date, while the business it runs just posted 49% revenue growth. That gap is the entire reason I keep buying.

The thesis is simple. Latin America’s dominant e-commerce and fintech operator is widening its lead while the share price contracts. The average Latin American shopper makes 7 online purchases a year versus 41 in the US. Less than 20% of Mexicans and only 40% of Argentines have a credit card, and 85% of Mexicans still pay cash for purchases under $30. MercadoLibre owns the rails that will carry that catch-up. The runway is what I keep paying for.

Now the receipts.

First, the growth is accelerating. Q1 2026 revenue hit $8.85 billion, beating consensus by 6.27%. Commerce grew 47% YoY and fintech 51% YoY. Brazil revenue jumped 55%, Mexico 62%. Brazil’s unique buyer count grew 32% YoY, the fastest pace in five years. The credit card portfolio more than doubled to $6.6 billion, up 104% YoY, advertising revenue rose 73% YoY, and fintech AUM is closing in on $20 billion, up 77% YoY. This is the flywheel maturing in real time.

Second, the balance sheet finally earned its grown-up rating. S&P upgraded MercadoLibre to investment grade (BBB-) in July 2025. Operating cash flow in Q1 reached $2.075 billion, up 119.81% YoY. The company holds $3.677 billion in cash against a market cap near $83 billion, with analysts carrying an average target of $2,216.96 and 20 Buy or Strong Buy ratings against 4 Holds and zero Sells. Forward earnings sit near 32x, a price I am willing to pay for a business compounding revenue at this clip.

Third, the smart money is leaning in. Institutional ownership stands at 83.15%, with Brown Advisory, Russell Investments, and Capital Research adding shares. Insiders are writing personal checks too: SVP Marcelo Melamud purchased roughly $200,000 worth at $1,604.62 on June 11, 2026, and Director Aguzin bought 600 shares. When operators buy at these prices, I pay attention.

Now the risk. Operating margin compressed 600 basis points YoY to 6.9%, operating income fell 19.92%, and adjusted free cash flow turned negative $56 million. Provisions for doubtful accounts doubled to $1.244 billion from $603 million. Add a rate-shock crowd worrying that newly appointed Federal Reserve Chairman Kevin Warsh will keep monetary policy locked down to fight stubborn 4.2% inflation, and you get a stock down more than 30% from its previous highs. The risk is real. My answer is that management told us this was coming. They are deliberately funding free shipping, first-party commerce, credit card issuance, and a fulfillment network already running 50+ facilities handling 55% of shipments. Engineering productivity KPIs are growing 7 to 10 times faster than 8% headcount growth. Spend now, harvest later.

Forward conviction. New CEO Ariel Szarfsztejn inherits a business with 27 consecutive quarters of 30%+ revenue growth, an investment-grade balance sheet, and a region barely halfway to its e-commerce destiny. Every panic sale of MELI this June funds another tranche of mine.

© Neilson Barnard / Getty Images Entertainment via Getty Images

Stanley Druckenmiller’s Duquesne Family Office spent the first quarter of 2026 quietly accumulating South American equity exposure, with EWZ representing roughly 4.49% of the portfolio as the fifth-largest holding alongside a new position in the Argentina ETF. The financial press has spent six months writing about Druckenmiller’s AI memory chip bets. The other side of the book, the macro side, has gone almost entirely unnoticed. His fourth-largest holding is also an Argentine energy company.

The Brazil leg was first telegraphed in February, when reporting noted that “Billionaire investor Stanley Druckenmiller’s Duquesne Family Office made substantial investments in Brazilian ETFs and call options, signaling a bullish stance that quickly paid off”. It pairs neatly with the Argentina position to form a coherent emerging-markets thesis that has nothing to do with semiconductors.

What the Brazil and Argentina trades actually look like The iShares MSCI Brazil ETF (NYSEARCA:EWZ) is the cleanest single-ticker expression of Brazil’s large-cap economy, dominated by Petrobras, Vale, B3 and Itaú Unibanco across financials, energy and basic materials. It carries a 0.59% expense ratio, trades at $33.73, and is up 25.62% over the past year despite a 5.12% pullback over the past month. Zoom out and the math is uglier for long-term holders, with EWZ returning just 24.48% over five years. That is the depressed base Druckenmiller is buying off of.

The Global X MSCI Argentina ETF (NYSE:ARGT) is a different animal. It trades at $97.10, is up 13.46% over the past year, and has returned 234.11% over five years. The fund is heavily concentrated, with MercadoLibre (NASDAQ:MELI | MELI Price Prediction) alone accounting for 21.4% to 22.5% of the portfolio and top 10 holdings totaling 68.33%. Owning it is closer to owning a basket of seven names than a country fund.

The thesis underneath the trades The Brazil case is commodities and rates. Foreign capital is back, with inflows surpassing BRL 34 billion in early 2026, the kind of pace that surpassed all of last year in weeks. Analysts at Crescat and elsewhere frame this as “a potential structural shift rather than a temporary trade”, citing rising commodity prices and a softer dollar. Petrobras, the largest holding, carries a strong buy consensus with 20.3% upside to price targets. The real is trading at 0.1937 to the dollar, still cheap by historical measures.

Argentina is a different bet entirely. It is a binary wager on Javier Milei’s reform program surviving contact with reality. Following Milei’s landslide midterm victory, ARGT posted a 19.87% single-session gain, the largest one-day move on record. Washington has backstopped the experiment with a $20 billion currency swap, potentially expanding to $40 billion. Growth forecasts now sit up to 3.6% this year alongside a projected fiscal surplus.

Whether a retirement-focused investor should follow The read for someone managing a retirement portfolio is that EWZ and ARGT serve very different roles. EWZ is a diversified country fund with cheap valuations, dividend support (a $0.3307 ex-dividend on June 15, 2026), and a clear macro tailwind. It fits a small emerging-markets sleeve in a balanced book. ARGT is concentrated, peso-exposed, and one election cycle away from a 30% drawdown. The 2019 MERVAL collapsed 37.9% in a single day. Druckenmiller can size that. Most retirees cannot.

Following the Brazil leg is defensible on its own merits. Following the Argentina leg requires the same risk tolerance Druckenmiller has, which is to say, not yours.

One previously high-flying stock that has suffered in recent years is MercadoLibre (MELI 0.10%). The Latin American conglomerate faces rising competition in its e-commerce business as well as setbacks as it attempts to expand its fintech operations.

Amid the sell-off, the consumer discretionary stock trades at a discount of almost 40% from its all-time high. Now, the question for investors is whether that punishing sell-off amounts to a buying opportunity in the stock.

I believe it does, and one reason explains why.

Image source: The Motley Fool.

The state of MercadoLibre Put simply, MercadoLibre stock is a buy because it has and continues to play the long game.

Historically, the company built its success by turning Latin America's challenges into business opportunities. Mercado Pago's financial products, designed to help cash-based customers buy on MercadoLibre's e-commerce site, positioned the company to become a regional fintech leader. Likewise, Mercado Envios brought the company into the logistics business, in part by making same-day and next-day delivery available to e-retailers.

Today, the company is again working to turn current business challenges into competitive advantages. Such is the case with the compressed margins in its e-commerce business, something that does not make the stock more attractive on the surface.

Despite those difficulties, MercadoLibre's growth is accelerating, but even with 49% revenue growth in the first quarter of 2026, net income of $417 million actually fell 16% from year-ago levels. Along with the aforementioned lower margins, the company spent more than $1.24 billion to cover bad loans from its rapidly growing lending business, up from $603 million one year ago. That higher expense cut into its profitability.

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However, despite that financial pain, such moves will likely enhance MercadoLibre's competitive advantage over time. As the first mover in Latin American e-commerce, MercadoLibre has long led in this industry. Now, e-commerce heavyweights from other parts of the world, like Amazon, Sea Limited, and numerous smaller players, seek to build market share in Latin America's developing markets.

Still, over time, compressed margins tend to force smaller players out of the market. That could better position MercadoLibre to claim a higher market share as fewer companies compete.

On the fintech side of the business, MercadoLibre has noticed a rise in doubtful accounts. Amid that challenge, MercadoLibre has begun using AI to help borrowers make better financial decisions and has expanded loan terms to make it easier for them to repay loans. Assuming the company can limit non-performing loans, it could bode well for MercadoLibre as it becomes an increasingly prominent lender.

Finally, MercadoLibre sells at an increasingly attractive valuation. Indeed, a 43 P/E ratio may sound high. Nonetheless, Amazon's stock routinely traded at more than 50 times earnings in its earlier growth years, which could prompt investors to view MercadoLibre's current P/E ratio differently.

MercadoLibre is a buy because it continues to invest in itself.

Understandably, compressed margins and falling profits may not impress investors at first glance. However, MercadoLibre has decided to tolerate thinner margins and higher bad loan expenses to better position itself in the marketplace. If investors can bring themselves to overlook short-term challenges and play the long game, it could pay off in the long term.

With stocks soaring in the United States, it feels harder and harder to find quality companies trading at reasonable prices. In times like these, smart investors can look abroad for new, promising opportunities. Nu Holdings (NU 1.52%) and MercadoLibre (MELI 0.10%) are two such stocks that are dominating their respective sectors in Latin America, banking and e-commerce.

Here's why these "wide moat" stocks are for investors trying to buy high-quality stocks while also avoiding the artificial intelligence (AI) hype.

Image source: Getty Images.

1. Nu Holdings' banking model for the masses With 135 million customers in Brazil, Mexico, and Colombia, Nu Bank has caught fire as the preferred mobile banking application in Latin America. It won the hearts and minds of everyday banking customers in Brazil with an easy-to-use mobile app, no frustrating fees, and access to lending products not available at legacy banks.

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By building a customer base of over 100 million in Brazil through Nu Bank's credit cards and other lending products, Nu Holdings' revenue in the country has grown to an astonishing $12.3 billion over the last 12 months. Now, it is running the same playbook in Mexico, which now has 15 million active customers as of its latest update, and generated $950 million in revenue over the last 12 months. With an economy similar in size to Brazil's, there is no reason why Nu Bank cannot generate the same level of revenue in Mexico.

In the long term, Nu Holdings plans to expand into new markets in Latin America and the United States, where it believes it can provide banking services to underserved customers with income profiles similar to those of its Brazilian and Mexican customers. This should lead to rapid revenue growth over the next five years.

Nu's stock is down almost 32% from its high over the last year, bringing its stock to a price-to-earnings ratio (P/E) of 20. For a fast-growing company with a competitive advantage from its mobile-first strategy, stealing share from legacy banks with stodgy digital infrastructure and high overhead costs from physical banking branches, Nu Holdings is a fantastic high-quality stock to buy the dip on right now.

2. MercadoLibre's dominant e-commerce position MercadoLibre is a company with a similar dominant position at the forefront of industry change in Latin America. It has a much more sprawling business than Nu Holdings, but its original idea was to build an online shopping platform similar to that of Amazon or eBay. Now, it operates in 18 countries across Latin America, offering e-commerce services, payments technology, and advertising, and is even moving into fully fledged banking for individuals and businesses, overlapping with Nu Bank.

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The physical infrastructure MercadoLibre has built to deliver online orders in places like Argentina and Mexico at rapid speeds drives consistent growth as more people adopt online shopping. To further monetize these expensive infrastructure investments, MercadoLibre is rapidly growing its high-margin advertising revenue on the MercadoLibre marketplace and is pushing its credit card to entrench shoppers.

All of these successful businesses have driven phenomenal growth for MercadoLibre. Revenue has grown by 4,400% over the last 10 years, reaching $31.8 billion over the last 12 months.

Right now, MercadoLibre's stock has fallen 37% from its highs due to compression of its profit margins from up-front investments in its fulfillment network and credit card acquisition costs. However, this should not be a concern for MercadoLibre shareholders, as it will drive revenue growth and customer retention, which in turn will deliver a recovery in profit margins.

Like Amazon in North America, MercadoLibre plays the long game, and now you can buy its stock at a discounted price with a huge growth runway ahead.

Sea Limited Sponsored ADR (SE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this company have returned +5%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Internet - Software industry, which Sea Limited falls in, has lost 1.2%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Sea Limited is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +21.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $4.24 for the current fiscal year indicates a year-over-year change of +28.9%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.72 indicates a change of +34.9% from what Sea Limited is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Sea Limited is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Sea Limited, the consensus sales estimate for the current quarter of $7.34 billion indicates a year-over-year change of +36.8%. For the current and next fiscal years, $30.72 billion and $37.61 billion estimates indicate +30.8% and +22.4% changes, respectively.

Last Reported Results and Surprise HistorySea Limited reported revenues of $7.33 billion in the last reported quarter, representing a year-over-year change of +43.2%. EPS of $0.84 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $6.95 billion, the reported revenues represent a surprise of +5.5%. The EPS surprise was -12.5%.

Over the last four quarters, Sea Limited surpassed consensus EPS estimates times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Sea Limited is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Sea Limited. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Philip Morris International (PMI) (NYSE: PM) announced a series of regional leadership appointments that support its ongoing shift toward a smoke‑free future.

Effective August 1, 2026, Marco Hannappel has been appointed President, Europe Region, and Can Kuterdem has been appointed President, Latin America & Canada Region. These appointments build on PMI’s evolved organizational model announced in late 2025, under which Gijs de Best serves as President, South Asia, Indochina, CIS & Middle East & Africa Region, and Vassilis Gkatzelis continues as President East & Southeast Asia, Pacific and PMI Global Travel Retail Region. The four regional presidents report to Frederic de Wilde - CEO of the International Business Unit of PMI and are the key operational leaders for the unit that generates the large majority of total PMI net revenues.

Marco Hannappel takes over the role of President, Europe Region, succeeding Massimo Andolina, who was recently announced as PMI’s Group Chief Financial Officer, both effective August 1, 2026.

Hannappel brings extensive international experience and a strong track record in leading business growth across complex and highly regulated markets. Since joining the company in 2019 as President and Managing Director Italy, he has held several senior leadership roles of increasing responsibility. He later served as Area Vice President Southwest Europe, managing Italy and Iberia, and most recently, as President of the Latin America & Canada Region.

Can Kuterdem is appointed President, Latin America & Canada Region, effective August 1, 2026, succeeding Marco Hannappel.

Kuterdem is a seasoned business leader with strong general management experience and a people-centric leadership approach. Most recently, as Managing Director, Poland, he transformed one of Philip Morris International’s largest European markets into a multi-category business, driving growth and strengthening organizational engagement. Previously, he served as Vice President Strategy & Program Delivery, Europe Region, where he played a central role in shaping the regional strategy and leading a more integrated approach to execution of business-critical initiatives across markets.

Before joining the company in 2020, he built an international career in consulting and technology, including The Boston Consulting Group and Samsung, where he held senior leadership roles across multiple regions.

Gijs de Best was appointed President, South Asia, Indochina, CIS & Middle East & Africa Region in January 2026. He brings more than 20 years of leadership experience at the company, with a strong track record of driving business performance through consumer-centricity and a passion for developing teams. He began his career at PMI in 2004 as a financial analyst in the Netherlands and has since held a range of increasingly senior roles across multiple markets and regions, most recently as President, Philippines, and Vice President Strategy & Program Delivery.

Vassilis Gkatzelis continues as President, East & Southeast Asia, Pacific and PMI Global Travel Retail Region, a role he assumed in 2024, with expanded accountabilities for Southeast Asia as of 2026. He oversees a diverse set of markets spanning developed and developing economies, alongside the Global Travel Retail business.

Since joining the company in 2003, Gkatzelis has held a wide range of strategic and operational leadership roles across Europe, the Middle East & Africa, Asia Pacific and the Global Operations Center in Switzerland. He brings a strong track record leading business transformation at scale, and building high-performing organizations, with a focus on external engagement and talent development. Prior to his current role, he served as President Director of PT HM Sampoerna Tbk., PMI’s affiliate listed on the Indonesia Stock Exchange, as well as Managing Director of Egypt & Levant Cluster, where he led the build-up and scaling of the smoke-free business.

These appointments reflect Philip Morris International’s continued focus on strengthening leadership capabilities as a leading global consumer goods company. Earlier in 2026 Philip Morris International evolved its organizational model and implemented two new primary business units in addition to its wellness unit Aspeya, reporting to Group CEO PMI Jacek Olczak - PMI International under the leadership of Frederic de Wilde, CEO PMI International, and PMI U.S. – under the leadership of Stacey Kennedy, CEO PMI U.S.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch, and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumablesand General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260618517768/en/

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Philip Morris International (NYSE:PM | PM Price Prediction) is a tobacco giant in the middle of a profitable pivot, with smoke-free products now accounting for over 43% of net revenues through IQOS heat-not-burn devices and ZYN nicotine pouches. With markets nervous about a potentially hawkish Federal Reserve under Kevin Warsh, retirees want to know if this 3% yielder can keep delivering. I dug into the payout math to find out.

Dividend Snapshot Metric Value Annual Dividend $5.88 per share Dividend Yield 3.13% Consecutive Years of Increases 17 years Most Recent Increase 8.9% (September 2025) Dividend Aristocrat Status No (since 2008 spin-off) Payout Ratios Are Elevated but Covered by Smoke-Free Cash PM paid roughly $9.1 billion in dividends against $12.233 billion of operating cash flow in FY2025. On 2026 guidance for $13.5 billion in OCF and $1.4 to $1.6 billion of capex, free cash flow should land near $12 billion, comfortably above the payout.

Metric TTM Value Assessment Earnings Payout Ratio (FY25 EPS $7.54) ~78% Elevated Forward Payout (2026 guide $8.36 to $8.51) ~70% Improving FCF Payout Ratio ~76% Healthy Operating Cash Flow Coverage 1.34x Adequate Negative Equity Looks Scary, but Leverage Is on the Way Down The Swedish Match acquisition left shareholders’ equity at negative $7.3 billion, making debt-to-equity less informative here. Leverage is the key metric: management is targeting net debt to adjusted EBITDA near 2.0x by year-end 2026, supported by $5.45 billion in cash and EBITDA of $18.6 billion. Interest coverage remains comfortable given FY2025 operating income of $14.892 billion.

17 Straight Hikes and No Buybacks Competing for Cash Year Annual Dividend 2026 (run-rate) $5.88 2025 $5.64 2024 $5.20 2023 $5.14 2021 $4.90 PM has raised every year since spinning off in 2008, and importantly, no share repurchases are planned in 2025 or 2026. The dividend gets first call on cash.

Management Calls It a Progressive Dividend Policy On the Q1 2026 call, CEO Jacek Olczak stated, “We remain firmly committed to our progressive dividend policy and to returning value to shareholders as our transformation delivers sustainable long-term growth.” CFO Emmanuel added that the business is “supported by remarkable cash generation and a strong balance sheet.” Nine directors also bought stock at $169.93 on May 6, 2026.

The Verdict: Safe, With Smoke-Free Doing the Heavy Lifting Dividend Safety Rating: Safe. The payout ratio is elevated near 78% on trailing earnings, but 2026 guidance of 10.9% to 12.9% EPS growth rapidly relieves that pressure, and FCF coverage is solid. The income case holds if IQOS and ZYN keep compounding at current rates and management hits the 2.0x leverage target. I would grow cautious if combustible volume declines accelerate beyond the guided 3% or FDA action restricts ZYN. For now, the cigarette dividend is still lit.

Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.GCO, PAM, OXY, CLDT and TGS are screened as value stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. The price-to-earnings (P/E) multiple enjoys widespread popularity among investors seeking stocks trading at a bargain. In addition to being a widely used tool for screening stocks, P/E is a popular metric for working out the fair market value of a firm. However, even this straightforward, broadly used valuation metric has a few shortcomings.

While P/E enjoys great popularity among value investors, a less-used and more complicated metric called EV-to-EBITDA is sometimes viewed as a better alternative. EV-to-EBITDA provides a clearer view of a company’s valuation and earnings-generating potential by taking a broader approach to assessing value.

Genesco Inc. (GCO - Free Report) , Pampa Energia S.A. (PAM - Free Report) , Occidental Petroleum Corporation (OXY - Free Report) , Chatham Lodging Trust (CLDT - Free Report) and Transportadora de Gas del Sur S.A. (TGS - Free Report) are some stocks with impressive EV-to-EBITDA ratios.

Is EV-to-EBITDA a Better Substitute to P/E?EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.

Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet that the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value the potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.

Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. Moreover, it can be used to compare companies with different levels of debt.

But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.

A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.

Screening CriteriaHere are the parameters to screen for value stocks:

EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.

P/E using (F1) less than X-Industry Median: This metric screens stocks that are trading at a discount to their peers.

P/B less than X-Industry Median: A lower P/B compared with the industry average implies that the stock is undervalued.

P/S less than X-Industry Median: The lower the P/S ratio, the more attractive the stock is, as investors will have to pay a smaller price for the same amount of sales generated by the company.

Estimated One-Year EPS Growth F(1)/F(0) greater than or equal to X-Industry Median: This parameter will help in screening stocks that have growth rates higher than the industry median.

Average 20-day Volume greater than or equal to 100,000: The addition of this metric ensures that shares can be traded easily.

Current Price greater than or equal to $5: This parameter will help in screening stocks that are trading at a minimum price of $5 or higher.

Zacks Rank less than or equal to 2: It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to beat adversities and outperform the market.

Value Score of less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are our five picks out of the 22 stocks that passed the screen:

Genesco is a specialty retail and branded company, which sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland. This Zacks Rank #1 company has a Value Score of A.

Genesco has an expected earnings growth rate of 55.2% for the current fiscal year. The Zacks Consensus Estimate for GCO’s current fiscal-year earnings has been revised 4.7% upward over the past 60 days.

Pampa Energia is a leading independent energy-integrated company in Argentina. This Zacks Rank #1 stock has a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pampa Energia has an expected year-over-year earnings growth rate of 39.8% for 2026. The consensus estimate for PAM's 2026 earnings has moved up 12.7% over the past 60 days.

Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. This Zacks Rank #2 stock has a Value Score of A.

Occidental Petroleum has an expected year-over-year earnings growth rate of 162% for 2026. The Zacks Consensus Estimate for OXY's 2026 earnings has been revised 68.3% upward over the past 60 days.

Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A.

Chatham Lodging Trust has an expected year-over-year earnings growth rate of 25.5% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 6.7% over the past 60 days.

Transportadora is a leading natural gas transporter in Argentina. Its midstream asset portfolio has the most extensive natural gas pipeline network in Latin America. This Zacks Rank #2 stock has a Value Score of B.

Transportadora has an expected year-over-year earnings growth rate of 21.9% for 2026. The consensus estimate for TGS’s 2026 earnings has been revised 6.9% upward over the past 60 days.

An updated edition of the April 28, 2026 article.

Corporate leadership is evolving as an increasing number of women take on senior roles at publicly traded companies. This shift is being supported by business results, with many women-led organizations demonstrating strong innovation, operational adaptability and solid shareholder returns across a range of industries. These leadership appointments go beyond symbolism, as many of these executives are outperforming peers through disciplined execution, efficient capital allocation and a clear focus on long-term value creation, strengthening investor confidence in more resilient and sustainable business models.

The latest reports paint a nuanced picture: women are becoming a structural force in U.S. entrepreneurship, even as funding and systemic gaps persist. One of the clearest takeaways is scale. Women now own more than 40% of all U.S. businesses, employing roughly 12.6 million people and generating $2.8 trillion in revenues. Growth has also been faster than that of male-owned firms, with women-owned businesses expanding nearly twice as quickly between 2022 and 2025. This shift signals that female entrepreneurship is no longer niche—it is central to the U.S. small- and mid-sized business ecosystem, particularly in services, consumer, healthcare and increasingly tech-enabled sectors. The data suggests women are not just starting companies, but building durable, employment-generating enterprises, a key driver of long-term economic resilience.

Female founders are increasingly gaining traction in AI and next-generation technology markets, which have become the primary destinations for venture capital. This indicates a shift from traditional sectors into high-value, innovation-driven markets, positioning women at the center of future growth themes. According to PitchBook's 2025 Female Founders report, U.S. female-founded startups raised a record $73.6 billion in venture capital in 2025, representing 27.7% of total U.S. VC deal value, the highest share on record. Importantly, AI accounted for roughly two-thirds of all venture dollars invested in female-founded startups.

At the same time, capital is becoming more concentrated in fewer, larger deals—often in AI—suggesting that while top-tier female-led companies are scaling rapidly, broader participation remains uneven.

Despite strong progress, a significant funding gap continues to limit the full potential of female founders. All-female founding teams still receive only about 1–2% of total U.S. venture capital, even though evidence suggests they often deliver higher capital efficiency and competitive returns. This imbalance highlights a structural constraint within the venture ecosystem, where access to early-stage and growth funding remains uneven. As a result, many promising female-led startups may struggle to scale at the same pace as their peers, underscoring a sizable untapped opportunity for investors willing to address this gap.

Despite funding challenges, women-led companies continue to drive innovation and resilience, making them attractive investment opportunities. If you want to capitalize on it, our Women Run Companies Screen will help you spot high-potential stocks in this space.

Investors looking to capitalize on opportunities across diverse industries should consider Newmont Corporation (NEM - Free Report) in gold mining, Pitney Bowes Inc. (PBI - Free Report) in shipping and mailing technology, The Coca-Cola Company (KO - Free Report) in the global beverage industry, Apple (AAPL - Free Report) in consumer technology and digital services, and Occidental Petroleum Corporation (OXY - Free Report) in the energy sector. These companies demonstrate strong leadership and strategic vision within their respective industries, positioning them for long-term growth and value creation.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

Newmont: Since joining Newmont in 2023 as chief operating officer and later becoming president and CEO in January 2026, Natascha Viljoen has played a key role in strengthening the company’s operational performance and strategic focus. One of her most important contributions has been overseeing the integration and optimization of Newmont’s expanded asset portfolio following the acquisition of Newcrest Mining. Under her leadership, the company has emphasized operational discipline, asset rationalization and productivity improvements to enhance profitability and cash generation across its global mining operations.

Viljoen has also been instrumental in advancing Newmont’s value-over-volume strategy. Rather than pursuing production growth at any cost, she has focused on improving margins, maximizing returns from high-quality assets and streamlining the company’s portfolio. Newmont has announced plans to divest non-core operations and concentrate capital on its Tier 1 assets, a move designed to strengthen the balance sheet and improve long-term shareholder returns. Her deep technical and operational background has helped drive initiatives aimed at improving mine performance, safety standards and cost efficiency.

Viljoen’s leadership is particularly important as the gold mining industry faces rising cost pressures, stricter environmental expectations and increasing capital allocation scrutiny. Her focus on operational excellence, disciplined capital spending and portfolio optimization positions Newmont to generate stronger free cash flow across commodity cycles. As the first woman to lead the company, Viljoen also brings a fresh leadership perspective while maintaining continuity in Newmont’s long-term strategy. Currently, Newmont sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Pitney Bowes: Debbie Pfeiffer has been one of the key leaders behind the stability and growth of Pitney Bowes’ Presort Services business, a segment that remains central to the company's cash flow generation and customer relationships. As executive vice president and president of Presort Services, she oversees a nationwide network of 35 operating centers and has played an important role in expanding the scale and efficiency of the business. With more than two decades at Pitney Bowes and over 40 years of industry experience, Pfeiffer has helped strengthen customer retention, expand national accounts and improve operating execution across the presort network.

Her contribution is particularly important because Presort Services is one of Pitney Bowes’ most resilient businesses. Under her leadership, the company has continued investing in automation and network expansion to improve service quality and processing efficiency. A recent example is the opening of a new highly automated Presort Services facility in Phoenix, AZ, which significantly increases processing capacity and supports faster mail delivery while lowering costs for customers. In 2025, the Presort network handled more than 15 billion pieces of mail, highlighting the scale of the operation she manages.

Her leadership also aligns with Pitney Bowes’ broader effort to improve profitability and operational performance. Following the company’s first-quarter 2026 results, management continued to emphasize operational efficiency, cash generation and strategic investments in core businesses. The Presort segment remains a valuable asset because it generates recurring revenue, benefits from long-standing customer relationships and provides economies of scale that are difficult for competitors to replicate. Pfeiffer’s ability to drive network optimization, customer growth and cost efficiencies makes her a significant contributor to Pitney Bowes’ long-term earnings and free-cash-flow profile. Currently, Pitney Bowes sports a Zacks Rank #1.

Coca-Cola: Tapaswee Chandele has become a key figure in Coca-Cola’s leadership team after being named executive vice president and global chief people officer in 2026. Having spent more than 25 years with the company, she has helped shape Coca-Cola’s approach to talent development, leadership succession and workforce strategy. Prior to her current role, she led Global Talent, Development and HR System Partnerships, overseeing programs designed to identify, develop and retain future leaders across the organization. Her leadership experience across India, Türkiye, South Africa and the United States has provided her with broad insight into Coca-Cola’s diverse global operations.

Chandele’s impact goes well beyond managing human resources. She has played an important role in strengthening leadership benches, enhancing employee capabilities and supporting organizational change initiatives across the company. Her elevation to the executive leadership team reflects Coca-Cola’s belief that attracting and developing talent is essential to maintaining its competitive position. Given the company’s vast global footprint, effective workforce management and leadership development are critical to driving consistent execution across markets.

Chandele’s role has become increasingly important as Coca-Cola pursues growth opportunities while navigating evolving consumer trends and advancing its digital capabilities. The company has continued to deliver solid organic revenue growth and healthy profitability, supported by strong execution across its global system. As global chief people officer, she is responsible for ensuring that Coca-Cola has the talent, leadership depth and organizational structure needed to support these objectives. Her efforts to build a stronger workforce and leadership pipeline could help sustain operational excellence and long-term value creation. Currently, Coca-Cola carries a Zacks Rank #2 (Buy).

Apple: Deirdre O’Brien has become one of Apple’s most influential executives through her dual role as senior vice president of Retail + People. Reporting directly to CEO Tim Cook, she oversees Apple’s global retail stores, online sales operations and human resources functions. This combination gives her significant influence over both customer engagement and workforce strategy. O’Brien has played a key role in shaping Apple’s retail experience, ensuring that product launches, service offerings and customer support remain consistent with the company’s premium brand positioning. She has also been involved in every major Apple product launch during her nearly four-decade tenure with the company.

From an operational standpoint, O’Brien’s contribution extends beyond retail execution. She leads talent management, recruiting, leadership development, compensation and employee support programs, helping Apple maintain a strong corporate culture while managing a workforce that supports millions of customers worldwide. Her focus on connecting employees, processes and customers has helped Apple preserve high levels of customer satisfaction and employee engagement despite its massive global scale. In an environment where technology companies compete aggressively for talent, her leadership is an important factor in Apple’s ability to attract and retain skilled employees.

Her impact is particularly relevant as Apple continues to deliver strong financial performance. In fiscal second-quarter 2026, Apple reported a record March-quarter revenue of $111.2 billion, up 17% year over year, while earnings per share rose 22% to $2.01. The company also achieved an all-time high in Services revenues and recorded double-digit growth across every geographic segment. Apple’s extensive retail network remains a critical channel for product sales, customer acquisition and ecosystem engagement, making O’Brien’s leadership an important contributor to the company’s long-term growth strategy and brand strength. Currently, Apple carries a Zacks Rank #2.

Occidental: Sylvia Kerrigan has become one of Occidental’s most influential executives through her role as senior vice president and chief legal officer. As the company’s top legal leader, she oversees global legal affairs, corporate governance, compliance and regulatory matters across Occidental’s oil and gas, chemicals and carbon management businesses. Her role is particularly important because Occidental operates in highly regulated markets where legal oversight, environmental compliance and transaction execution directly affect shareholder value. She also serves as a key adviser to the board and senior management on strategic decisions and risk management.

Kerrigan’s contribution has been especially relevant during Occidental’s transformation into a broader energy and carbon management company. The company has pursued major acquisitions, expanded its carbon capture initiatives through its subsidiary 1PointFive and continued optimizing its portfolio while managing a sizable asset base across the United States and international markets. Effective legal and governance oversight is critical to executing these initiatives, securing permits, managing contractual obligations and reducing regulatory risks. Her leadership helps ensure that strategic projects move forward while maintaining compliance with evolving environmental and energy regulations.

Her role also supports Occidental’s financial objectives. In the latest reported quarter, the company generated solid operating cash flow despite commodity-price volatility, supported by strong production from its oil and gas assets and steady contributions from its chemicals business. As Occidental continues to balance capital returns, debt management and investments in low-carbon technologies, Kerrigan’s expertise in governance, compliance and transaction execution remains an important enabler of long-term value creation. Her ability to help navigate legal complexities and regulatory challenges strengthens Occidental’s operational resilience and supports the successful execution of its long-term growth strategy. Currently, Occidental carries a Zacks Rank #2.

Key Takeaways OXY cut debt by $15.6B in 22 months, reducing annual interest expenses by more than $830M.OXY's 2026 and 2027 EPS estimates rose 27.53% and 26.92%, respectively, in the past 60 days.OXY gained 29.7% in six months, outpacing the industry's 17.8% rally. Occidental Petroleum Corporation (OXY - Free Report) has made notable progress in reducing its debt load, a priority since the 2019 Anadarko acquisition. Over the past 22 months alone, Occidental has reduced debt by $15.6 billion, cutting annual interest expenses by more than $830 million. This disciplined deleveraging not only enhances balance sheet strength but also bolsters financial flexibility.

Occidental has cut the principal debt to $13 billion and continues to deploy cash flow toward reaching its $10 billion debt target. This rapid deleveraging is expected to create lasting value for its shareholders.

A leaner balance sheet enhances Occidental's ability to navigate commodity price volatility while providing greater flexibility to invest in high-return growth opportunities. Continued deleveraging also strengthens investor confidence, improving the company's appeal in both equity and debt markets. Additionally, lower financing costs support profitability and cash flow generation, ultimately driving stronger long-term shareholder returns.

As the debt burden declines, Occidental gains greater financial flexibility to expand its core Permian Basin operations and invest in low-carbon businesses such as carbon capture. This ongoing financial discipline strengthens the company's resilience and competitive edge while supporting long-term shareholder value creation.

Lower Debt Levels Expand Financial FlexibilityFor oil and gas companies, reducing debt improves financial flexibility, lowers financing costs and strengthens balance sheets. A healthier financial position enables them to better withstand commodity price volatility, invest in high-return opportunities and enhance shareholder returns, while supporting long-term growth and competitiveness.

Companies such as BP plc (BP - Free Report) and ConocoPhillips (COP - Free Report) have benefited significantly from deleveraging efforts. By lowering debt and reducing interest expenses, both companies have strengthened cash flow generation and improved financial resilience. Their stronger balance sheets have provided greater flexibility to fund growth initiatives and return capital to shareholders through dividends and share repurchases, reinforcing long-term value creation.

OXY’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for Occidental’s 2026 and 2027 earnings per share indicates an increase of 27.53% and 26.92%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

OXY’s Price PerformanceOccidental’s shares have gained 29.7% in the past six months compared with the Zacks Oil and Gas-Integrated-United States industry’s rally of 17.8%.

Image Source: Zacks Investment Research

Occidental’s Return on Invested CapitalReturn on Invested Capital (“ROIC”) measures how efficiently a company uses its debt and equity capital to generate profits. It reflects management’s ability to create value from invested funds. Generally, a higher ROIC indicates more effective capital allocation and stronger value creation, while a lower ROIC may signal less efficient use of capital.

Occidental’s ROIC is higher than the industry average in the trailing 12 months. ROIC of OXY was 4.03% compared with the industry average of 3.88%.

Image Source: Zacks Investment Research

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

Key Takeaways APA shares are up nearly 63% in a year, outperforming Chord Energy and SM Energy.APA trades at about 7.3X forward earnings, below the subindustry's 9.5X multiple.Suriname's GranMorgu project could drive long-term growth, with first oil targeted for mid-2028. APA Corporation (APA - Free Report) has delivered a strong run, with its shares rising nearly 63% in the past year. The rally raises a fair question: is APA still attractive, or has the market already priced in most of the upside? The answer looks balanced. APA has stronger execution, a deep Permian base, improving costs and a major future catalyst in Suriname. At the same time, investors must consider commodity-price risk, Egypt exposure, debt and the long wait before Suriname contributes meaningfully. Compared with Chord Energy (CHRD - Free Report) , which is more focused on the Williston Basin, and SM Energy (SM - Free Report) , which is scaling its U.S. shale platform after the Civitas deal, APA offers a different mix of near-term cash flow and long-term offshore growth.

Price Performance Shows APA’s Strong Momentum

APA’s one-year gain easily tops Chord Energy, up 17.7%, and SM Energy, down 1.5%. The outperformance reflects improved confidence in APA’s operating progress, cash generation and future project pipeline. Still, a rally of this size raises the bar. CHRD has a simpler Williston-focused story built around steady production, long laterals and shareholder returns. SM is trying to improve scale, reduce debt and capture merger synergies. APA sits between these peers, with a large Permian position, international assets and a visible offshore catalyst.

1-Year Price Performance Comparison Image Source: Zacks Investment Research

Earnings Estimates and Valuation Remain Supportive

APA’s earnings picture is mixed. The Zacks Consensus Estimate for 2026 EPS indicates a 49% increase, supported by cost savings, better operating efficiency and cash flow from gas trading. However, the 2027 estimate points to a 36% decline, suggesting that analysts expect some normalization after a stronger 2026.

Image Source: Zacks Investment Research

Valuation, however, remains positive. APA trades at around 7.3 times forward earnings, below the subindustry’s 9.5X. That discount shows the market is still cautious about debt, geopolitical exposure and commodity sensitivity.

Suriname Could Be the Hidden Value Driver for APA

APA’s Suriname position may be the most important part of the long-term story. The GranMorgu development in offshore Block 58, being advanced with TotalEnergies, includes more than 750 million barrels of estimated recoverable resources tied to the Sapakara and Krabdagu discoveries. Production is expected through a floating production, storage and offloading unit with a capacity of 220,000 barrels per day, with first oil targeted for mid-2028. That gives APA a growth lever beyond its mature production base. Chord Energy does not have a comparable offshore project, while SM Energy is mainly focused on U.S. shale. For APA, GranMorgu could become a high-margin oil and free cash flow engine after 2028. The project is already approved, and a carry arrangement helps reduce APA’s near-term funding burden.

Image Source: APA Corporation

Operational Discipline Strengthens the Case

APA’s current business is anchored by the Permian and Egypt. The Permian accounts for most adjusted production and offers more than 10 years of economic inventory. Management has reduced drilling and completion costs in the Permian, lowered drilling costs in Egypt and continues to target meaningful run-rate savings by year-end 2026. The company is also working toward a $3 billion net debt target, while gas trading provides another source of cash flow. Chord Energy also emphasizes capital returns and balance sheet strength, while SM uses divestitures and synergies to improve leverage. APA’s advantage is that it combines operational discipline with a larger future project.

APA’s Risks Should Keep Expectations Realistic

APA remains exposed to oil and gas price swings. While oil prices have cooled somewhat following the U.S.-Iran deal, easing some of the geopolitical supply-risk premium, this could become a factor for APA going forward if crude prices remain under pressure. Weak Permian gas pricing, including Waha-related pressure, can also hurt realized prices and lead to curtailments. Egypt adds geopolitical and fiscal risk, while U.K. taxes remain a headwind. Suriname is promising, but first oil is not expected until mid-2028, so investors must wait for the biggest catalyst. APA also carries a broader and more complicated portfolio than CHRD and a different risk profile than SM Energy. If commodity prices fall further or GranMorgu faces delays, the stock could struggle after its strong one-year advance.

Conclusion

APA stock still looks reasonably attractive for investors seeking value, cash flow and long-term oil growth, but it is not an obvious buy after a significant rally. The valuation discount, ongoing cost reductions and Suriname upside support the investment case, while debt, commodity-price volatility, Egypt exposure, and the long lead time before Suriname contributes meaningfully, warrant some caution. Overall, the stock offers a balanced mix of opportunity and risk at the current levels. Given this risk-reward profile, APA stock is currently a Zacks Rank #3 (Hold).

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

For Immediate ReleaseChicago, IL – June 24, 2026 – Today, Zacks Equity Research APA Corp. (APA - Free Report) , W&T Offshore (WTI - Free Report) and Ring Energy (REI - Free Report)

Industry: Oil & Gas E&P - U.S.

Link: https://www.zacks.com/commentary/2941262/3-us-ep-stocks-backed-by-rising-2026-earnings-outlooks

The Zacks Oil and Gas - Exploration and Production - United States industry remains closely tied to commodity prices, and firm crude prices are giving domestic producers a useful cash-flow lift. Higher oil realizations can support drilling, debt reduction and shareholder returns, especially as global supply concerns keep the value of reliable U.S. production in focus.

Still, the picture is not without pressure. Rising service, labor, maintenance and decommissioning costs can limit upside, while weak natural gas prices may weigh on producers with meaningful gas exposure. Even so, the industry’s improving discipline is encouraging. Companies are focusing on better wells, controlled spending, workovers and free cash flow rather than growth at any cost.

The group’s Zacks Industry Rank in the top 50% and rising 2026 earnings estimates point to a healthier near-term setup. Against this backdrop, APA Corp., W&T Offshore and Ring Energy stand out as attractive names to watch.

About the IndustryThe Zacks Oil and Gas - US E&P industry consists of companies primarily based in the domestic market and focused on the exploration and production (E&P) of oil and natural gas. These firms find hydrocarbon reservoirs, drill oil and gas wells, and produce and sell these materials to be refined later into products such as gasoline, fuel oil, distillate, etc.

The economics of oil and gas supply and demand are the fundamental drivers of this industry. In particular, a producer’s cash flow is primarily determined by the realized commodity prices. In fact, all E&P companies' results are vulnerable to historically volatile prices in the energy markets.

A change in realizations affects their returns, causing them to alter their production growth rates. The E&P operators are also exposed to exploration risks where drilling results are comparatively uncertain.

4 Key Trends to Watch in the Oil and Gas - US E&P IndustryHigher Oil Prices Can Quickly Lift Cash Flow: The U.S. exploration and production industry remains highly sensitive to oil prices. When crude prices rise, producers usually see a direct benefit because each barrel sold brings in more cash. That can improve margins, fund drilling, support debt reduction and leave more room for shareholder returns.

Current geopolitical tensions also keep attention on energy security and a reliable domestic supply. This helps U.S. producers because local barrels become more valuable when global supply feels uncertain. For investors, the key attraction is simple: if oil stays firm, many producers can generate strong free cash flow without needing aggressive production growth.

Rising Costs and Obligations Limit Upside: The industry still faces meaningful cost and liability pressures. Diesel, power, equipment, labor, maintenance, workovers and facility upgrades can become more expensive when activity improves or oil prices rise. Offshore operators also carry large decommissioning and asset-retirement obligations, which can absorb cash that might otherwise go to growth or shareholder returns.

Some producers are still focused on reducing debt, so stronger cash flow may be directed toward balance-sheet repair instead of aggressive drilling. For investors, this creates a practical limit on upside. Higher commodity prices help, but they do not remove the need for spending discipline and careful liability management.

Better Efficiency Supports Returns Through Cycles: A more disciplined operating model is becoming a strength for U.S. exploration and production companies. Many producers are focusing less on growth at any cost and more on lower spending, better well performance, workovers, recompletions and selective infrastructure upgrades. This can make each dollar of capital work harder.

Low-decline assets are also useful because they require less spending just to keep production steady. For investors, this matters because the industry can create value even when commodity prices are choppy. Strong cost control, careful capital allocation and a focus on free cash flow can make earnings more durable over time.

Weak Natural Gas Prices to Drag Results: Not every part of the commodity mix is supportive. In some U.S. basins, natural gas prices have been weak, and local pricing can sometimes fall far below benchmark levels. This can force producers to curtail gas volumes or accept poor realized prices. Even oil-focused companies can feel the pressure because many wells produce associated gas along with crude.

Lower gas and NGL values can reduce total revenue per barrel of oil equivalent and hurt reported production economics. For investors, the risk is that strong oil prices may not fully offset weak gas markets, especially in areas with limited takeaway capacity.

Zacks Industry Rank Indicates Positive OutlookThe Zacks Oil and Gas - US E&P industry is a 34-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #104, which places it in the top 42% of 247 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 34.6% in the past year.

Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Underperforms Sector and S&P 500The Zacks Oil and Gas - US E&P industry has fared worse than the broader Zacks Oil - Energy Sector and the Zacks S&P 500 composite over the past year.

The industry has moved down 1.2% over this period against the broader sector’s increase of 26.2%. Meanwhile, the S&P 500 has gained some 27%.

Industry's Current ValuationSince oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.

On the basis of the trailing 12-month enterprise value-to-EBITDA (EV/EBITDA), the industry is currently trading at 11.01X, lower than the S&P 500’s 18.62X. It is, however, well above the sector’s trailing 12-month EV/EBITDA of 6.57X.

Over the past five years, the industry has traded as high as 17.10X and as low as 3.42X, with a median of 6.08X.

3 Stocks to Focus OnW&T Offshore: W&T Offshore is a Houston-based oil and gas company focused on the Gulf of America. Founded in 1983 by Tracy Krohn, it has been listed on the NYSE since 2005 under the ticker WTI. Over four decades, the Zacks Rank #2 (Buy) company has grown from a small independent operator into a seasoned offshore player, mainly through acquisitions and selective drilling.

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

The company operates across 48 offshore fields and holds a large acreage base in shallow and deepwater areas. Its strategy is simple: improve existing assets, control costs, add reserves, and pursue smart acquisitions. With strong technical experience, operating production, and a focus on cash flow, W&T Offshore aims to support steady long-term growth.

The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 67.6% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for W&T Offshore’s 2026 loss has narrowed from 32 cents per share to 12.

Ring Energy: Ring Energy is a Texas-based oil and gas company focused on conventional assets in the Permian Basin, mainly the Central Basin Platform and Northwest Shelf. It uses modern drilling and completion methods to improve older fields, extend well life and raise recovery. The #2 Ranked company operates more than 96,000 net acres and has built a large, mostly operated asset base.

Its strategy centers on steady cash flow, disciplined spending and lower operating costs. Ring has more than 500 identified drilling locations, over 10 years of inventory and a reserve life above 20 years. Recent results show production in line with guidance, cost reductions and continued positive adjusted free cash flow.

The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 57.9% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for Ring Energy’s 2026 earnings has moved up from 22 cents per share to 30 cents.

APA: APA Corporation explores for and produces oil and natural gas through subsidiaries in the United States, Egypt and the United Kingdom, while also pursuing offshore opportunities in Suriname and other areas. Its portfolio is anchored by the Permian Basin and Egypt, giving the Zacks Rank #3 (Hold) company a steady operating base and room for long-term growth.

APA focuses on safe, efficient and responsible operations, backed by financial discipline. It plans to return at least 60% of free cash flow to investors through dividends and share buybacks, while reducing debt. Growth plans include first oil from Suriname’s GranMorgu project in mid-2028 and continued cost savings across operations.

The Zacks Consensus Estimate for the company’s 2026 earnings per share indicates 48.5% year-over-year growth. Over the past 60 days, the Zacks Consensus Estimate for APA’s 2026 earnings has moved up from $4.28 per share to $5.60.

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Investors interested in weight-loss stocks may naturally gravitate toward Eli Lilly and Novo Nordisk. That makes sense. They are currently the leaders in this niche. Their brands, Zepbound and especially Wegovy, have practically become household names and are synonymous with chronic weight management. However, many other drugmakers could capitalize on the soaring demand for weight loss medicines. Two of the most promising to consider right now are Regeneron (REGN +0.90%) and Amgen (AMGN +0.66%). Here is why these companies are worth a second look for investors seeking exciting weight-loss stocks.

Image source: The Motley Fool.

1. Regeneron Regeneron plans to start phase 3 clinical trials for one of its leading weight-loss candidates, olatorepatide, sometime this year. This medicine mimics the action of two separate gut hormones: GLP-1 and GIP, just like Zepbound does. What's more, olatorepatide has already posted solid late-stage clinical trial results in China. In a 48-week study enrolling 604 patients, the medicine led to weight loss of up to 19% among participants.

These are excellent results. True, that was in Chinese patients, and Regeneron will have to run studies in the U.S. to support approval there. But things are looking promising for the biotech company. Regeneron is working on other candidates. One of them seeks to help patients on GLP-1 medicines maintain muscle mass even as they lose weight. This investigational therapy performed well in mid-stage studies.

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Meanwhile, Regeneron's results remain strong. In the first quarter, the company's revenue jumped by 19% year over year to $3.6 billion. The biotech dealt with biosimilar competition for Eylea, a medicine for wet age-related macular degeneration, in recent quarters, but it is finally putting that in the rearview mirror, partly thanks to a newer, high-dose formulation of Eylea whose sales are growing at a good clip.

Further, the company's biggest growth franchise, Dupixent, a drug for eczema, continues to perform well. Expect Regeneron to post strong financial results over the next few years while also making meaningful clinical and regulatory progress, even beyond weight loss. The company is awaiting approval from the U.S. Food and Drug Administration (FDA) for cemdisiran, an investigational medicine for myasthenia gravis, an autoimmune condition that causes muscle weakness and other symptoms.

Regeneron also has several programs in phase 3 studies and should see a much rejuvenated lineup of approved drugs by the end of the decade. Though the company isn't just a weight-loss stock, if it can make significant waves in that market, it could outperform broader equities over the medium term.

2. Amgen Amgen is running phase 3 studies for its anti-obesity candidate, MariTide. The company is testing the medicine for chronic weight management, type 2 diabetes, cardiovascular outcomes for certain patients who are overweight or obese, obstructive sleep apnea (OSA), and more. If approved across all these indications, MariTide could become a real challenger to tirzepatide, the active ingredient in Zepbound (also approved for OSA), and the diabetes medicine Mounjaro.

Further, Amgen is positioning MariTide as a medicine with a friendlier dosing schedule. It could be administered once monthly (or less frequently), rather than the once-weekly schedule of competing medicines like Zepbound and Wegovy. So, MariTide could become an important growth franchise for Amgen.

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In the meantime, there are other good reasons to buy the stock. Amgen is performing well, with its revenue climbing by 6% year over year to $8.6 billion in the first quarter. Amgen's solid results in the period are all the more impressive given that it recently lost patent exclusivity for denosumab, a bone health medicine that was an important growth driver. The company's sales from denosumab are declining, but other products are helping pick up the slack.

The list includes Tezspire, a medicine for asthma, and Tepezza, which is approved for thyroid eye disease. Amgen also has an exciting pipeline with several important candidates. Lastly, it is an excellent dividend stock, having increased its payouts every year since 2011 (the year it began paying dividends). Amgen offers an attractive forward yield of 3%, versus an average of about 1.1% for the S&P 500. Amgen is a top pick for long-term income seekers and for those looking for attractive weight-loss stocks.

Intel Is Turning into the U.S. Chip Bet that Wall Street Can Finally Explain

That is why the stock jumped in premarket trading. The headline is simple, but the bigger story is not just a single deal. Intel is starting to look less like a legacy chipmaker trying to catch up, and more like the factory everyone else may need if the U.S. really wants a domestic chip base.

The move also landed on top of an already big rerating. Intel has surged sharply over the past year, and this latest pop shows the market is willing to pay for any sign that the foundry story is becoming real.

Why Apple changes the conversationApple is not just another name on a customer list. In the foundry world, an Apple order is a stamp of approval. It tells the market that a company with some of the most demanding chip needs on the planet believes Intel's process is good enough to trust. That is a much bigger signal than a generic enterprise customer signing a contract.

A simple analogy helps here. If Intel were a restaurant, Apple would not just be a new diner walking in for lunch. Apple would be the chef, food critic, and high-end chain owner saying the kitchen is good enough to serve the best menu in town. Once that happens, every other customer starts looking again.

That is why this headline is bigger than the stock move itself. Apple has long leaned on TSMC for advanced chips, and any shift toward Intel suggests a hedge against supply chain concentration in Taiwan. Apple is not walking away from TSMC, but it is making the bet more balanced.

The Taiwan risk tradeThe deeper reason behind all of this is geography. Taiwan remains the center of the world's most advanced chip manufacturing, and analysts still describe the island's role as a kind of silicon shield. That shield is powerful, but it is also a concentration risk. If one region makes too much of the world's best silicon, the rest of the market has to think about what happens if politics, weather, or conflict interrupt the flow.

That is where Apple's possible Intel relationship becomes more than a business deal. It starts to look like insurance. For a company that ships hundreds of millions of devices and depends on predictable chip supply, the idea of a second source in the U.S. is not hard to understand. It is the corporate version of not relying on one bridge to get across a river.

Trump's comments fit that bigger theme. He did not just praise Intel. He framed the company as a tool for bringing chip production home. Whether the final deal is exactly as described or still being worked out, the market is reacting to the same message: Intel is becoming a political and industrial centerpiece for domestic semiconductor manufacturing.

CHIPS money is finally meeting customersThis is where the CHIPS Act comes in. Intel is the biggest visible winner of U.S. semiconductor subsidy policy, with roughly $8.5 billion in grants and up to $11 billion in loans tied to major domestic fab expansion. That support was always sold as a way to rebuild advanced manufacturing in America, but subsidies only go so far if the plants do not land major customers.

Apple is the kind of customer that makes the whole policy story look real. A subsidy can build the factory, but a customer fills it. That is the difference between a government plan and a working business. If Intel lands Apple volume on advanced nodes, the CHIPS thesis stops being theory and starts looking like a business model.

Intel is also making progress on the hardware side. CNBC reported that the company has begun production of 18A-P, its most advanced node, and said that node can deliver 9% better performance or 18% lower power than 18A. In plain English, Intel is trying to prove the machine behind the headline can actually run.

That also changes how retail investors should think about the stock. Intel is not just a turnaround on the old PC business. It is increasingly a pick-and-shovel play on the chip buildout. Gold rush traders do not always buy the biggest gold miner. Sometimes they buy the company selling the shovels, the picks, and the tents. That is the role Intel is trying to claim.

Tesla and the flywheel effectThe importance of a flywheel is easy to miss if you do not work in semiconductors. One anchor customer does not solve everything, but it changes the way everyone else sees the project. If Tesla is in, Apple is in, and the U.S. government is still backing the buildout, then the question for other customers becomes simple: do they want to be left outside the circle?

That is also why the market is likely to keep giving Intel a premium on any incremental foundry win. The stock is no longer trading only on whether the old Intel can survive. It is trading on whether the new Intel can become the place where other companies choose to build.

Why this can keep runningThe current move may also have a positioning effect. Stocks that go from "broken legacy name" to "national champion with Apple and Tesla in the mix" often attract a different crowd of buyers. That can create follow-through beyond the first headline, especially when traders realize the thesis is no longer one customer or one quarter.

Still, the stock is not free money. Intel still has to execute on yield, timing, and cost. A foundry business is like opening a new airport. You can announce the runway, but the real test is whether the planes land on time, the gates work, and the airlines keep coming back.

That is why the coming months will be important. Investors will want to see whether this Apple headline turns into actual production, whether more customers follow, and whether Intel can keep convincing the market that it deserves to be valued more like a foundry than a relic.

What traders should watchFor traders, the key question is not whether Intel can keep bouncing on headlines. It is whether those headlines start turning into recurring revenue from customers who actually need the new U.S. manufacturing base. If that happens, Intel stops being just a turnaround story and starts becoming one of the cleanest ways to trade the U.S. semiconductor buildout.

The headline version of this move is easy to grasp. Trump said Apple will work with Intel, the stock jumped, and traders rushed in. The deeper version is more interesting. Intel is starting to look like the bridge between Washington's chip policy, Apple's supply chain caution, and the market's search for a domestic semiconductor winner.

That is the story worth watching now. Not just whether Intel is up today, but whether this is the moment the market began pricing it as the American answer to TSMC (NASDAQ:TSM).

This article is for informational purposes only and does not constitute investment advice.

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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at TSMC (TSM - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. TSMC currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for TSM that show why this chip company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For TSM, shares are up 2.11% over the past week while the Zacks Semiconductor - Circuit Foundry industry is up 2.11% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.6% compares favorably with the industry's 7.6% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of TSMC have risen 24.27%, and are up 102.41% in the last year. In comparison, the S&P 500 has only moved 11.07% and 25.39%, respectively.

Investors should also take note of TSM's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now TSM is averaging 11,645,189 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TSM.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TSM's consensus estimate, increasing from $15.10 to $15.30 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that TSM is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep TSMC on your short list.

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I keep buying Taiwan Semiconductor and I am not going to stop, because every dip the market hands me looks like a gift I refuse to refuse. Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction) is the one foundry that virtually every advanced chip designer on earth has to call before they can ship silicon, and I am tired of pretending that fact is priced in. When Reddit panicked on June 8, sending sentiment to a score of 28 on the highest activity day in the dataset, I added again. I will keep adding.

The thesis is simple. This is a cash-compounding machine wearing a cyclical costume. The bears spent months arguing that CoWoS packaging constraints would cap near-term upside, and the response from management was to pour concrete. C.C. Wei was direct on the Q1 call: “AI-related demand continues to be extremely robust” and “we have to speed it up with our buildup of clean room and buying the tools.” The same call laid out three new N3 fabs across Taiwan, Arizona, and Japan, with N2 already in high-volume manufacturing as of Q4 2025 with good yield. That is the moat widening in real time.

Now the data. Q2 2026 revenue printed NT$1.134 trillion, up 21.45% YoY, with net income of NT$572.8 billion, up 43.82% YoY. Earnings have beaten the consensus for eight straight quarters, most recently topping estimates by 8.39% in Q1 2026 with reported EPS of $3.49. Trailing twelve-month EPS sits at $11.62, return on equity at 36.2%, and operating margin at 58.1%. The forward P/E of 27x against management’s own “above 30%” full-year 2026 revenue growth in U.S. dollar terms is the dirt-cheap part of the headline. Compare that to the semiconductor sector ETF (SOXX), which has run 96.54% year-to-date while TSM has lagged at 40.83% YTD. The pure-play foundry is the cheapest seat in the cleanest theater.

The capital return reinforces the case. Q1 2026 earnings appropriations sent NT$155.6 billion in cash dividends to shareholders, with the next dividend dated October 8, 2026. The U.S. investment tax credit for the Arizona fab also stepped up to 35% from 25%, effective January 2026, which is a direct subsidy to my future free cash flow.

Now the risk I will not wave away. Taiwan exposure is real. Top 10 customers account for 84% of accounts receivable, and Q1 2025 absorbed roughly $5.30 billion in earthquake-related losses. Geopolitics across the strait does not sleep. What changes my mind is the geographic build: Arizona expanding, ESMC in Germany with subsidies, JASM in Japan with subsidies. The company is paying to spread the concentration that scares people, and customers are paying TSM to do it.

Forward conviction comes down to one observation. C.C. Wei said AI accelerator revenue is tracking a CAGR in the “higher 50s” through 2029, and 17 of 19 analysts rate it a buy with zero sells and a consensus target of $467.84. Every chip in the agentic AI build-out has to walk through this foundry’s door. I will keep buying the toll bridge while the rest of the market argues about the traffic.

Taiwan Semiconductor is finally being upgraded back to a buy.  Incredibly robust AI demand helps to sustain its recent price action breakout. TSM's disciplined CapEx expansion, strategic pricing, and EUV technological edge help underpin its premier foundry position despite steep capacity constraints. While rivals like Intel and Micron have outperformed, TSM's prudent approach should maintain its profitability outlook while also sustaining customer goodwill in the long run.

ASML, TSMC, and NVIDIA remain core AI infrastructure. Meta Platforms is rated a buy, leveraging its vast global user base and aggressive AI infrastructure investments to drive future growth. Consider accumulating META, GOOG, and the Global X Data Center & Digital Infrastructure ETF to capture the next wave of AI-driven growth. Others to consider are Reddit, Palantir & Tesla. For ETFs, consider AIQ, AGIX, CHAT, BOTZ, and ASX:HMND.

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Four billionaire portfolio managers who almost never end up on the same side of a trade quietly converged on Taiwan Semiconductor Manufacturing (NYSE:TSM | TSM Price Prediction).

Chase Coleman’s Tiger Global added 49.38% to its Taiwan Semiconductor position. That lifted it to the fund’s fourth-largest holding at $1.04 billion. David Tepper boosted his stake alongside other chip names. Stanley Druckenmiller trimmed but holds, and Daniel Loeb’s Third Point kept TSM at roughly 5.9% of the portfolio. over 200 hedge fund portfolios held the stock at quarter-end.

Coleman is a growth investor, Tepper is a distressed-credit opportunist, Druckenmiller is a macro tactician, and Loeb is an activist. They share almost no temperamental DNA. They now share the same idea.

What the four billionaires like The thesis sits in plain sight. NVIDIA (NASDAQ:NVDA) Q1 fiscal 2027 revenue ran $253.49 billion on a trailing basis, Broadcom (NASDAQ:AVGO) AI semiconductor revenue jumped 143% year over year to $10.8 billion last quarter, and AMD (NASDAQ:AMD) data center segment grew 57% to $5.78 billion. Every one of those chips, the H-series, Blackwell, the Instinct MI450, Broadcom’s custom XPUs, gets fabricated at one company. Taiwan Semi fabricates the silicon the rest of the AI supply chain depends on.

And it does so profitably. Operating margin reached 58.1%, return on equity 36.2%, and quarterly earnings grew 58.4% year over year. May 2026 revenue hit a record NT$416.975 billion and surpassed the March mark. CEO C.C. Wei told investors that “global chip supply would still fall short of demand for years to come.”

The valuation gap nobody talks about The four billionaires presumably noticed this. TSM trades at a forward P/E of 27x. NVIDIA trades at 23x forward, but on a price-to-sales basis NVIDIA fetches 19.55x while Taiwan Semi sits at a fraction of that. AMD carries a P/E of 192x. So the company supplying all of them earns the fattest operating margins in the group and still gets the lowest multiple on sales.

Performance has begun closing the gap. TSM is up 52.73% year to date and 118.64% over the trailing year, which outpaces NVIDIA’s 45.01% and Broadcom’s 65.03% over the same stretch. Even after that run, the multiple discount persists.

Why retail should care, and what to watch For a retirement-focused investor, the appeal is that you stop guessing which AI accelerator wins. Whether the inference race goes to NVIDIA’s Blackwell, Broadcom’s custom silicon, or AMD’s MI450, Taiwan Semi books the wafer revenue regardless. Wafer revenue itself grew from NT$714 billion to NT$968 billion year over year.

The risks are real and they explain the discount. The top ten customers represent 84% of accounts receivable. A strengthening New Taiwan dollar erodes reported margins. Taiwan sits 110 miles from China, and U.S. export reviews on advanced AI chips remain live policy. The U.S. investment tax credit on Arizona fabs was lifted from 25% to 35% effective January 1, 2026, which offsets some geographic concentration, but not all of it.

The four billionaires bought anyway. The thesis is defensible. It comes down to owning the monopoly behind the AI arms race at a multiple lower than the customers it serves. If the multiple alone re-rated toward NVIDIA’s price-to-sales territory, the math would do the rest. That is worth understanding before deciding to follow.

TSMC (TSM - Free Report) closed at $467.67 in the latest trading session, marking a +1.2% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.

Shares of the chip company witnessed a gain of 14.24% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.52%, and the S&P 500's gain of 2.02%.

Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. On that day, TSMC is projected to report earnings of $3.69 per share, which would represent year-over-year growth of 49.39%. At the same time, our most recent consensus estimate is projecting a revenue of $39.76 billion, reflecting a 32.23% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.3 per share and a revenue of $161.88 billion, representing changes of +43.66% and +32.22%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. As of now, TSMC holds a Zacks Rank of #2 (Buy).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 30.21. This represents no noticeable deviation compared to its industry average Forward P/E of 30.21.

Meanwhile, TSM's PEG ratio is currently 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Circuit Foundry industry held an average PEG ratio of 1.35.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.

The likes of Nvidia (NVDA) and Micron (MU) remain the front and center of all AI-related debates in 2026, but billionaire investor Philippe Laffont is approaching the boom from a different angle.

Speaking recently with CNBC, the founder of Coatue Management revealed his $90 billion hedge fund prefers a classic “picks-and-shovels” strategy rather than wagering on individual chipmakers like NVDA.

His preferred means of gaining exposure to AI include TSMC, Lam Research, and Applied Materials Inc – the foundational silicon factories that every semiconductor company relies on.  

Laffont owns TSMC stock for one simple reason: no matter who designs the next breakthrough AI chip, they must go through Taiwan Semiconductor Manufacturing.

For example, Amazon is deploying its custom Trainium silicon, Alphabet Inc is committed to its Tensor Processing Units (TPUs), and a wave of agile startups is entering the GPU space.

Yet, as Laffont points out, “All of them at the end of the day will need the same machines” – and almost all of them depend on TSMC’s cutting-edge foundry nodes to manufacture their silicon.

Holding a sizable stake in TSMC allows Coatue to remain agnostic in the fiercely competitive chip race while steadily capturing the rewards of a capex cycle that shows no signs of slowing down.

To build the microscopic, hyper-dense architectures required for modern AI workloads, specialized hardware is mandatory.

This reality leads Philippe Laffont directly to Lam Research Corp – an industry giant dominant in etching and deposition technology.

Modern artificial intelligence infrastructure is shifting into what the tech investor calls the “agentic era,” in which autonomous software agents execute long, multi-layered workflows.

This technological pivot needs huge amounts of high-bandwidth memory (HBM) and specialized advanced packaging – and LRCX manufactures the precise capital equipment needed to etch deep, flawless vertical pathways in advanced memory chips.

For Laffont, owning Lam Research shares provides a direct window into the physical layer of the AI ecosystem, capturing reliable revenue from every tech company building out data centers.

Completing Laffont’s top trio of semiconductor capital equipment holdings is Applied Materials, the world's largest supplier of tools used to fabricate advanced microchips.

As global electronics manufacturing becomes increasingly localized, AMAT shares benefit from massive structural headwinds and government subsidies.

Laffont – an MIT graduate and notable alumnus of Julian Robertson’s Tiger Management – values the company’s near-monopoly on materials engineering solutions.

“If I’m a supplier to the fabs, I don’t need to make an exact bet on which of the chips is going to win,” he explained.

This strategic diversification protects Coatue Management’s portfolio from rapid obsolescence cycles while giving investors exposure to the hyper-growth of global AI factory expansions.

Note that all three names on Philippe Laffont’s list pay a dividend as well.