In the latest close session, Eli Lilly (LLY - Free Report) was down 1.19% at $1,098.78. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
The stock of drugmaker has risen by 9.14% in the past month, leading the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.
The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is forecasted to report an EPS of $9.01, showcasing a 42.79% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $20.44 billion, up 31.39% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.67 per share and revenue of $85.6 billion. These totals would mark changes of +47.34% and +31.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Right now, Eli Lilly possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 31.17. This denotes a premium relative to the industry average Forward P/E of 15.47.
Also, we should mention that LLY has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.6 as trading concluded yesterday.
The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Novo Nordisk (NVO) shares in Copenhagen rose about 5% on Friday after its majority owner, the Novo Nordisk Foundation, launched CardioMetabolic Bridge, a pan-European program aimed at finding and advancing research on obesity, type 2 diabetes and other cardiometabolic diseases, according to a Friday company statement.
Novo Nordisk said the foundation will fund the effort with DKK 450 million ($69.1 million) over six years. The first lab is scheduled to open in London later this month, with sister sites planned for Italy and Germany, the company said, giving the project a broader European footprint overall.
The initiative will be run by the BioInnovation Institute in Copenhagen. Foundation chief executive Mads Krogsgaard Thomsen said the project is meant to help build startups and support established drugmakers, while also improving how Europe converts scientific work into treatments.
Novo Nordisk added that the effort could eventually feed its own pipeline, even as it competes with Eli Lilly (LLY) in obesity drugs. Earlier this month, the company said U.S. prescriptions for the oral version of Wegovy topped three million.
Eli Lilly (NYSE:LLY | LLY Price Prediction) just reported a quarter that should have sent bulls into a frenzy. Revenue grew 55.5% year over year to $19.80 billion, Mounjaro alone delivered $8.66 billion, and management raised full-year guidance to $82 to $85 billion.
Yet shares are up just 2.57% year to date at $1,098.57. That disconnect is the entire setup for my question: can LLY trade at $1,200 by year-end 2026? I think it can, and the math is closer than most realize.
What’s Holding Eli Lilly Back Right Now The near-term price action has been ugly. LLY is down 5.37% over the past week after touching $1,160.95 on June 11. The one-month picture is better at +7.55%, but the year-to-date number tells the story of a stock stuck in neutral despite booming fundamentals.
The market worries about pricing. Realized prices fell 13% in Q1 as Mounjaro’s addition to China’s NRDL formulary compressed international margins. Lilly also absorbed $584 million in acquired IPR&D charges from its M&A spree.
Add in 11 recent insider transactions skewed toward selling, and you understand the hesitation. With a beta of 0.517, this should be a steady compounder. Right now it is waiting for a catalyst.
Wall Street Sees Roughly 11% Upside. Our Model Sees More The consensus target sits at $1,215.79, supported by 6 Strong Buy, 18 Buy, 5 Hold, 1 Sell and 1 Strong Sell ratings. That works out to 77% bullish. Our internal model is more aggressive. The base case lands at $1,279.62, implying 16.48% upside, with a bull scenario of $1,334.55 and a bear case of $1,062.97. Confidence on the base case is 90%.
Analysts underweight two things: the speed of the Foundayo (oral GLP-1) ramp and retatrutide’s optionality. Barclays already telegraphed where this could go, maintaining a Buy rating with a $1,400 price target. With earnings growth contributing positively to our 247Factor and bullish consensus at 77%, the $1,200 line looks like a floor.
The Path to $1,200 Per Share Reaching $1,200 from today’s price of $1,098.57 requires a gain of 9.2%. With forward EPS of $35.47, a price of $1,200 implies a forward P/E of 34x. Our base case of $1,279.62 already implies 37x, meaning $1,200 sits below our base case multiple and demands no incremental rerating. The stock simply needs to grow into the earnings.
CEO David Ricks framed it on the Q1 call: “2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion. A key milestone was the U.S. FDA approval of Foundayo.”
Early launch metrics are striking: 8,000+ prescribers and 20,000+ patients in weeks, with 80% of scripts new-to-class. Retatrutide’s Phase 3 readout showing weight loss of 25 to 37 pounds and the retatrutide late-stage trial results comparable to or exceeding Zepbound fuel the model. The primary risk remains continued price erosion outpacing volume gains.
Where Eli Lilly Trades Today vs Its Earnings Power At $1,098.57, LLY trades at roughly 31x forward EPS of $35.47. For a business compounding revenue at 28% at the 2026 guidance midpoint with a forward PE of 31x, that looks reasonable. Shares sit 3% below the 52-week high of $1,182.73 and 77.4% above the $619.40 low. The 10-year return of 1,661.56% shows what happens when this company gets a platform right. Today it has two.
Is $1,200 Realistic? Here’s My Take The $1,200 target requires a 9.2% gain from here, and my model’s base case already overshoots it. I view $1,200 by year-end 2026 as realistic.
Three things need to keep going right: Foundayo’s prescriber base must expand, retatrutide’s June obesity readout must confirm the diabetes data, and Q2 must validate the raised guidance. What derails it is sharper-than-expected pricing reset on Mounjaro and Zepbound in the back half. We’ve outlined the blueprint for how Eli Lilly could reach $1,200 in 2026.
Eli Lilly (LLY +0.70%) has been firing on all cylinders. The stock is up 40% over the past 12 months as the company continues to grow revenue and earnings faster than most of its similarly sized peers. And for what it's worth, the pharmaceutical leader has also left these peers far behind, becoming the first healthcare company to reach $1 trillion in market value. However, it might not be too late to invest in the drugmaker. Let's consider three reasons why Eli Lilly could have far more upside ahead.
Image source: The Motley Fool.
1. The weight loss tailwind is only getting started Eli Lilly's leadership in the weight loss market has been instrumental to its success in recent years. Sales of the company's Zepbound (tirzepatide) -- the first dual agonist of the GLP-1 and GIP hormones to receive approval from the U.S. Food and Drug Administration -- are growing rapidly. Eli Lilly's oral GLP-1 medicine, Foundayo, is also contributing. Yet Eli Lilly still has significant untapped potential in this space.
Consider Foundayo, which earned approval in April for chronic weight management. It is helping attract brand-new patients: Management has said that 80% of prescriptions were for people who had never taken GLP-1 medicines before. The drug could gain even more ground in the oral GLP-1 market, though. It recently completed a trio of phase 3 studies, in patients with type 2 diabetes, with flying colors.
Foundayo showed strong efficacy in helping reduce diabetics' A1C levels and weight. If it is approved for this indication, Foundayo could gain ground on its main competitor in the oral GLP-1 market, Wegovy pill. Many patients who are overweight or obese are also either prediabetic or diabetic. Physicians may be more willing to prescribe Foundayo if it is effective for both patient groups. Further, unlike oral Wegovy, Foundayo has no food or water restrictions, making it the more convenient option.
Eli Lilly has several other pipeline candidates that will help it cement its leadership in this niche. Retatrutide, a phase 3 asset, posted what look like best-in-class weight loss efficacy numbers and could help the company target patients with very high BMIs (Body Mass Index) who need more aggressive weight loss. The lesson: The anti-obesity space is still arguably underpenetrated. That's why analysts project that it will grow rapidly through the next decade. And arguably no company is better positioned to capitalize on this than Eli Lilly.
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2. Investing in pipeline diversification Although Eli Lilly's weight-loss portfolio is incredibly strong and is helping drive solid top-line growth, the company depends heavily on its core therapeutic areas, including diabetes. In the first quarter, sales from the company's top two selling brands -- Zepbound and the diabetes medicine Mounjaro -- accounted for almost 65% of its total revenue. Eli Lilly has been looking to address that problem, partly by boosting and diversifying its lineup through licensing deals and acquisitions.
The company has invested billions of dollars in acquiring promising products across multiple therapeutic areas, including oncology, neuroscience, and pain management. Not all of the company's initiatives will pay off, but at least some of them should -- and as Eli Lilly launches new products in other areas, it will help decrease its reliance on its diabetes and obesity lineup. Let's consider just one asset Eli Lilly added to its pipeline through the acquisition of a biotech company, Morphic Holdings, for $3.2 billion in cash: MORF-057.
This is an investigational oral medicine for inflammatory bowel diseases (ulcerative colitis and Crohn's disease), a large, multibillion-dollar market where many therapies are administered via subcutaneous injections or intravenously, making an oral option particularly attractive, all else being equal. Eli Lilly also saw the potential for combination treatments for MORF-057 -- perhaps with its already approved therapy in the same niche, Omvoh, that could target patients with severe cases. This could be an important medicine for Eli Lilly's future, and it is just one of the many exciting pipeline programs at its disposal. Eli Lilly is always looking for the next big thing. That's another reason to buy the stock.
3. An underrated dividend stock Eli Lilly has been one of the more impressive growth stocks in the healthcare sector in recent years, but it's also a great pick for income-seeking investors. True, the company's dividend yield isn't that impressive at about 0.6%. But Eli Lilly's shares have risen rapidly in the past decade, which partly explains its low yield. The company's payouts have also grown significantly, to the tune of 239% over the past 10 years. Eli Lilly looks likely to maintain healthy dividend growth for the foreseeable future, which is yet another reason to invest in the company and hold onto its shares for a while.
Investing in penny stocks requires significant conviction. Many of the companies in this group are purely “story stocks.” That means they’re not profitable; many don’t even have any revenue. Investors don't evaluate these companies using metrics such as price-to-earnings ratios or free cash flow. Instead, they have conviction in the story behind the stock.
At its worst, it can create conditions similar to those in the meme stock frenzy of 2020 and 2021. Many stocks debuted with nothing but a story and got sent to unsustainable prices, only to crash back down when reality set in. Many of those companies are back to trading as penny stocks, and investors are wisely evaluating them with more scrutiny.
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But not all penny stocks are bad investments. Some are just early in their growth cycle. While they may not be profitable, they are generating revenue, and they have catalysts that are likely to push them on a path to profitability. That’s the case with three stocks that are trading below $5 as of this writing, and analysts believe each could be headed much higher.
Ur-Energy Could Benefit From the Global Nuclear RevivalUr-Energy NYSEAMERICAN: URG is a small-cap company that engages in the exploration, development, and production of uranium. The company’s core expertise centers on in situ recovery (ISR) mining techniques. This involves extracting uranium from sandstone formations using a low-environmental-impact process.
Ur Energy Today
$1.41 -0.02 (-1.40%)
As of 06/23/2026 05:16 PM Eastern
52-Week Range$1.00▼
$2.35Price Target$2.57
The company’s flagship ISR operation is its Lost Creek project in Wyoming. However, the company’s Shirley Basin project, which has been idle since 1992, is where analysts forecast the strongest growth. That’s expected to impact Ur-Energy's balance sheet more materially in the second half of 2026, which is also when the company is expected to turn a profit on a non-GAAP basis.
Nuclear energy is having a revival. After decades of falling out of favor, the International Atomic Energy Agency (IAEA) projects global nuclear capacity could double by 2050, with significant near-term growth in 2026 through 2030. This isn’t just being driven by the United States. China, India and Russia are also scaling their nuclear power infrastructure.
It’s a supply-demand setup for uranium prices that makes a low-cost miner such as Ur-Energy a potentially lucrative investment. The Ur-Energy analyst forecasts on MarketBeat show six analysts offering a rating with a consensus price target of $2.57.
Grab Holdings Offers Growth Potential at a Discounted PriceGrab Holdings NASDAQ: GRAB may be the best-known name on this list of penny stocks. The company operates a consumer-facing “super app” across Southeast Asia. The app offers services that include ride-hailing, food and package delivery, and digital payments. The latter is part of Grab Financial Group, which may be a significant driver of the company's growth.
Grab Today
$3.46 -0.03 (-0.86%)
As of 06/23/2026 04:00 PM Eastern
52-Week Range$3.18▼
$6.62P/E Ratio346.35
Price Target$6.19
Revenue growth isn’t the problem, and it should be noted that Grab has been profitable. But GRAB has been a poor investment almost from the time it debuted in 2021. In the last 12 months, the stock is down over 20% and is down about 30% in 2026.
However, that seems like a case of the story getting ahead of the stock. The 10 analysts who have offered a price target for GRAB suggest there could be significant upside ahead.
Insider selling of penny stocks is often amplified, especially when, as with GRAB, there are no corresponding share purchases. But the selling done in May 2026 all indicate that they were part of a Rule 10b5-1(c) plan. These are structured sales that are scheduled months in advance, often to manage an event like a tax deadline.
Aclaris Therapeutics Combines Revenue With Biotech UpsideBiotechnology and penny stocks go together like peanut butter and jelly. However, they aren’t always so appetizing for investors. That’s because a biotechnology stock that’s a penny stock usually means the company is still at the clinical stage, which means it doesn’t have a drug or therapeutic in the market.
Aclaris Therapeutics Today
ACRS
Aclaris Therapeutics
$4.92 +0.08 (+1.65%)
As of 06/23/2026 04:00 PM Eastern
52-Week Range$1.38▼
$5.15Price Target$11.50
That’s the case for Aclaris Therapeutics NASDAQ: ACRS. In fact, the company has no assets beyond Phase 2 trials that are under its own umbrella. Its lead candidate, bosakitug, is licensed from Biosion, and a Chinese partner is running additional trials of the drug overseas. The company also receives a nominal amount of licensing revenue from agreements with Eli Lilly NYSE: LLY and Sun Pharma.
That’s not enough reason to consider ACRS. A better reason is the analysts' outlook.
In this case, there are eight analysts who have issued price targets, and the consensus price target is over 150% above the stock price as of this writing.
ACRS is up more than 200% in the last 12 months. That may have more to do with speculation, so investors looking to get involved may want to wait for more data on the company’s pipeline.
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Eli Lilly (LLY +0.70%) spent a lot of 2026 on a shopping spree. Riding an obesity drug windfall, the company has announced more than $25 billion in acquisitions across roughly 10 deals this year, with seven of them reported in the last three months alone.
The purchases cover areas such as sleep medicine, blood cancers, cell therapy, and vaccines. In other words, Lilly is diversifying beyond metabolic medicine. But which of the new acquisitions will be the most important for the future of the company?
Image source: Getty Images.
These oncology plays could be key drivers of growth over the long term Let's start by looking at how this recent slew of acquisitions will reshape Lilly's pipeline.
Lilly acquired Kelonia Therapeutics to deepen its position in the oncology cell therapy space, which it first entered in February with the $2.4 billion purchase of Orna Therapeutics. Per the terms of the Kelonia deal, signed in mid-April, Lilly will pay $3.3 billion upfront sometime in the second half of this year, and up to $7 billion, including milestone payments. Kelonia's multiple myeloma candidate is still in phase 1, but the biotech's technology makes it (potentially) highly valuable.
Standard chimeric antigen receptor T-cell (CAR-T) therapy requires harvesting a patient's immune cells, reengineering them in a clinical lab, then reinfusing them for treatment, which is a slow, costly, difficult-to-scale, and error-prone process that caps patient volume. Kelonia's candidate instead reprograms those T-cells inside the body with a single infusion, which would mark an incredible advancement in the CAR-T field if it's eventually approved.
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Separately, in mid-April, Lilly bought CrossBridge Bio for up to $300 million, including an upfront payment and a development milestone, picking up its dual-payload antibody-drug conjugate (ADC) platform. CrossBridge doesn't have any clinical-stage candidates yet, but the point of buying it is to gain access to its ADC platform, which could be used to develop next-generation medicines across a range of indications.
So, by acquiring these biotechs, Lilly now has multiple new therapy platforms for developing cancer drugs in its portfolio, which could unlock significant growth over the coming decade.
Another key acquisition announcement, this time for Ajax Therapeutics, came in late April. Ajax is developing a type II JAK2 (Janus kinase 2) inhibitor in phase 1 trials that's intended for a rare bone-marrow cancer called myelofibrosis in patients who failed to sufficiently improve on first-line drugs. Lilly will pay up to $2.3 billion in cash and milestones, and, in exchange, it'll deepen the company's relatively thin position in blood cancers, precisely at the same time it'll be gaining access to new technologies (and data from the trials), which it might be able to use in synergy with its other oncology programs.
This company isn't snoozing on sleep medicine The deal most likely to reshape Lilly's outlook is also its biggest outlay: Centessa Pharmaceuticals, announced in late March for $6.3 billion in cash upfront, with up to an additional $1.5 billion in milestones, for a total potential value of $7.8 billion.
Centessa's lead candidate, cleminorexton, is in phase 2a trials and is an oral orexin 2 receptor (OX2R) agonist being investigated to treat two types of narcolepsy and idiopathic hypersomnia (excessive sleepiness without a known cause). That single purchase thus hands Lilly a trio of mid-stage programs with room to expand, and it isn't a segment or target that's represented anywhere else in its pipeline. This is the game-changer of the bunch because it brings the most clinically advanced asset and an entirely new franchise to Lilly's portfolio in one move.
So, in sum, with these new biotech purchases, Lilly is entering a new phase of its existence. In just a handful of years, it'll have a far larger pipeline footprint, with a substantial share outside its traditional wheelhouse of metabolic medicine. In the long run, that'll make it a more resilient business, and, while there are sure to be stumbles along the way, it'll likely support the bull case for buying its stock for years to come.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The board of directors of Eli Lilly and Company (NYSE: LLY) has declared a dividend for the third quarter of 2026 of $1.73 per share on outstanding common stock.
The dividend is payable on September 10, 2026, to shareholders of record at the close of business on August 14, 2026.
About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. F-LLY
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about expected dividend payments and reflects Lilly's current beliefs and expectations. However, there are significant risks and uncertainties in pharmaceutical research and development, as well as in business development activities and capital allocation strategies related to the company's business and actual results may differ materially due to various factors. For further discussion of risks and uncertainties relevant to Lilly's business that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.
, /PRNewswire/ -- The board of directors of Eli Lilly and Company (NYSE: LLY) has declared a dividend for the third quarter of 2026 of $1.73 per share on outstanding common stock.
The dividend is payable on September 10, 2026, to shareholders of record at the close of business on August 14, 2026.
About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. F-LLY
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about expected dividend payments and reflects Lilly's current beliefs and expectations. However, there are significant risks and uncertainties in pharmaceutical research and development, as well as in business development activities and capital allocation strategies related to the company's business and actual results may differ materially due to various factors. For further discussion of risks and uncertainties relevant to Lilly's business that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.
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Eli Lilly (NYSE: LLY | LLY Price Prediction) and Pfizer (NYSE: PFE) just delivered Q1 2026 results that read like two different chapters of the same drug industry.
Lilly is sprinting through an obesity gold rush. Pfizer is rebuilding after COVID and buying its way into the same race. Both beat estimates, but the businesses underneath could not feel more different.
GLP-1 Volume Carries Lilly. Eliquis and Oncology Carry Pfizer. Lilly posted $19.80B in revenue, up 55.5%, with Mounjaro alone contributing $8.66B on a 125% jump. Zepbound added another $4.16B. Volume rose 65% while realized prices fell 13%, a trade Lilly is clearly willing to make to grab share before rivals arrive.
Pfizer pulled $14.45B in revenue, up 5.4%, with Eliquis at $2.17B (+13%) and Padcev surging 39%. The COVID drag is real: Comirnaty fell 59% and Paxlovid dropped 62%. CEO Albert Bourla called it a “defining period for Pfizer,” which is a polite way of saying every launch matters.
Business Driver Lilly Pfizer Main growth engine Mounjaro, Zepbound Eliquis, oncology, Vyndaqel Q1 revenue growth 55.5% 5.4% FY26 guidance Raised to $82B to $85B Reaffirmed $59.5B to $62.5B One Owns Obesity Today. The Other Just Paid To Enter. Lilly extended its lead with FDA approval of Foundayo, the first oral GLP-1 pill with no food or water restrictions. CEO David Ricks framed it bluntly: “2026 is off to a strong start…A key milestone was the U.S. FDA approval of Foundayo.”
Pfizer’s answer was a checkbook. The roughly $7B Metsera deal brings ultra-long-acting obesity assets into a 2026 pipeline featuring around 20 pivotal study starts. The Vyndamax patent settlement pushing US exclusivity to June 2031 matters more than the headlines suggest, since it softens the loss-of-exclusivity cliff Pfizer has been bracing investors for.
Valuation tells the same story. Lilly trades at a forward PE near 31, with analysts targeting $1,215.79. Pfizer sits at a forward PE around 9, with a 6.61% dividend yield doing most of the heavy lifting for shareholders.
What I Want To See Next From Both For Lilly, the watch item is whether oral Foundayo can hold pricing as supply scales and Medicare negotiations close in. Shares already cooled 5.37% in the past week despite a 40.92% one-year gain, hinting that expectations are stretched.
For Pfizer, I want proof Metsera can deliver Phase 3 data that justifies the spend, plus confirmation that Padcev’s August 17, 2026 MIBC decision goes through cleanly.
Why I Lean Lilly For Growth and Pfizer For Income If I had to pick one for the next three years on business momentum alone, I lean Lilly. The product cadence, the $2 billion guidance raise, and the oral GLP-1 first-mover position are hard to argue with. The valuation remains a key risk factor for new entrants at current levels.
Pfizer fits a different investor entirely. The 6.61% yield, the Vyndamax extension, and CEO Bourla’s steady personal buying of phantom stock units through the spring suggest a credible turnaround setup. The two stocks serve distinct portfolio roles, and the next pricing update will be a key signal for assessing how durable that 55% growth really is.
The market for anti-obesity drugs seems to be at risk of calcifying into a dominant duopoly. Eli Lilly (LLY +0.70%) and Novo Nordisk (NVO +3.30%) split it through their GLP-1 medicines: Zepbound (tirzepatide) and Wegovy (semaglutide) for weight management, and Mounjaro (tirzepatide) and Ozempic (semaglutide) for type 2 diabetes. Together they hold nearly the entire U.S. market for branded obesity and diabetes treatments. Those are the kind of conditions that may be ripe for a new entrant to disrupt the incumbents.
Viking Therapeutics (VKTX +7.54%) wants to be that challenger. Its lead candidate, VK2735, has strong early data in hand, and comes as both a weekly shot and a daily pill. And because the company's market cap is just $3.5 billion, the stock is small enough that a modest win of market share could translate into an outsize return for shareholders. So let's investigate how and why this biotech could threaten Lilly and Novo Nordisk.
Image source: Getty Images.
The biotech's data look good but not great VK2735 is a dual agonist of the GLP-1 and GIP receptors, meaning that it uses the same two-target approach as Eli Lilly's tirzepatide.
In one phase 2 trial, a weekly shot of VK2735 led to participants losing up to 14.7% of their weight over 13 weeks; in a separate phase 2 trial, patients taking the pill formulation saw a maximum weight loss of 12.2% over the same period. In both trials, the gastrointestinal side effects reported by patients were overwhelmingly mild or moderate. Importantly, in the injectable trial, the pace of weight loss didn't appear to be tapering at the end of the study period, leaving open the possibility that patients could lose more weight by simply staying on the treatment longer.
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For context, you should also know that in a head-to-head trial, patients treated with tirzepatide lost 20.2% of their body weight over 72 weeks, whereas patients given semaglutide lost only 13.7%. So, over its 13-week study period, Viking's candidate looks competitive with the leaders. Bear in mind, though, that these are separate trials with different patients, doses, and follow-up lengths, so any comparison is suggestive rather than direct. And weight loss on these drugs tends to slow the longer people stay on them.
But while Viking could win an efficacy matchup against Lilly's and Novo Nordisk's best products on the market, it might have a harder time with the late-stage pipeline candidates that those more mature players are trying to bring to the market.
Eli Lilly's candidate retatrutide is a triple agonist, adding glucagon as a target to the GLP-1/GIP pairing. It reported that after 80 weeks of treatment in a phase 3 clinical trial, patients had lost 28.3% of their body weight, with 45% of subjects shedding at least 30% of their weight.
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Similarly, clinical trial data for Novo Nordisk's candidate, CagriSema, show that patients lost about 22.7% of their body weight after 68 weeks of treatment. The company has already filed approval paperwork with the U.S. Food and Drug Administration (FDA).
Viking's candidate is likely still competitive with both of those other programs, as its study period was much shorter. But be aware that the odds of VK2735 being approved and becoming a decisive win for the biotech are slim; it's still an underdog in the GLP-1 market it's targeting.
The base case is decent Viking Therapeutics could threaten the top and bottom lines of both Novo Nordisk and Eli Lilly, if VK2735's late-stage trials confirm the data already published. If the market for weight loss medicines reaches $100 billion before the end of the decade, as some analysts predict, seizing even a 1% share of the market would lift the biotech's valuation well above its current level.
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The phase 3 trials for the injectable formulation of VK2735 only finished enrolling earlier this year, and because the studies run well over a year, their top-line data won't arrive before 2027. The oral formulation's phase 3 is expected to begin around the end of this year.
If both trials replicate the earlier results, it'll signal that Viking Therapeutics' chances of becoming a player in weight loss drugs have improved from "fair" to "pretty good." If, on the other hand, the data show that VK2735 is actually better than what Lilly and Novo Nordisk can deliver with their next crop of weight-loss candidates in the pipeline, the entire situation will shift, and its odds of being a more formidable threat will rise sharply.
What's a monster stock? It's a well-established company that's demonstrated its strengths over time. You can count on this player for its portfolio of products and its ability to bring in revenue quarter after quarter. The healthcare industry is a great place to look for such investments. Here, you'll find many companies that have been around for years, selling blockbuster drugs and leading medical devices, for example.
These stocks may not deliver huge gains over a short period of time, but over a decade, they could help you generate a significant win. And these are exactly the sorts of building blocks that make a great portfolio. It's important to remember that, in investing, you'll increase your chances of success by holding onto stocks for the long term -- by this I mean at least five years. But 10 years is even better, as it offers the company the opportunity to grow -- and this period may also reduce the impact of any downturns along the way.
Let's check out three monster stocks to hold for the next ten years.
Image source: Getty Images.
1. Eli Lilly Eli Lilly (LLY +0.70%) has been at the center of attention in recent times. This is because the company is leading in one of the highest-growth areas in healthcare: the weight loss drug market, one on track to reach nearly $100 billion by the end of the decade. Lilly's Mounjaro and Zepbound have been generating blockbuster revenue, together surpassing $12 billion in the recent quarter, and driving growth at the pharma giant -- and this is likely to continue.
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Lilly recently won approval for Foundayo, a weight loss pill, has a promising candidate in late-stage trials, and is working on other candidates too. Since demand is high in this market, Lilly is wise to make this portfolio a priority.
The company also sells a variety of other drugs across treatment areas and has a long history of earnings growth. So, with Lilly, you gain the stability often found in healthcare companies, along with the weight loss drug growth opportunity that should continue to bear fruit in the years to come.
2 AbbVie When AbbVie's (ABBV +2.06%) mega-blockbuster Humira headed toward patent expiration, investors worried. After all, the drug at its peak in 2022 brought in more than $21 billion in sales.
But AbbVie prepared for this moment with the development of newer immunology drugs Skyrizi and Rinvoq, and these products are now driving a new era of growth at the company. In the recent quarter, Skyrizi and Rinvoq delivered double-digit increases in revenue to levels of more than $4 billion and $2 billion, respectively. So, it's clear AbbVie has what it takes to surmount the Humira patent expiry.
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The company also has a broad portfolio of star products in other indications, from Botox, used in neuroscience and aesthetics, to Vraylar, a treatment for bipolar disorder.
Expansion of indications for its major immunology drugs, as well as a solid pipeline, offer further reasons for optimism -- and to hold onto this pharma stock for the coming decade.
3. Abbott Laboratories I like Abbott Laboratories (ABT +3.07%) for the company's diversification, something that could make it resilient during challenging times. Abbott includes four business units: medical devices, diagnostics, nutrition, and established pharmaceuticals. If one of these areas faces a headwind, another business may compensate. For example, in later pandemic days, Abbott's coronavirus test sales dropped, while medical device sales picked up momentum.
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Abbott also is the name behind leading products and brands, such as the FreeStyle Libre continuous glucose monitor and the Ensure nutrition drink. And the company continues to innovate, winning the regulatory nod for new products -- it recently earned clearance for its next-generation Ultreon artificial intelligence-powered coronary imaging platform. And the company recently completed its acquisition of Exact Sciences, a move that offers it leadership in the oncology diagnostics market.
All of this positions Abbott well for long-term gains, making it a fantastic healthcare stock to buy now and hang onto as this story unfolds.
Eli Lilly (LLY - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned +3.5%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which Lilly falls in, has gained 0.8%. 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.
Earnings Estimate RevisionsRather 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Lilly is expected to post earnings of $9.01 per share for the current quarter, representing a year-over-year change of +42.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.
The consensus earnings estimate of $35.67 for the current fiscal year indicates a year-over-year change of +47.3%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $44.61 indicates a change of +25% from what Lilly is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Lilly.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven 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.
In the case of Lilly, the consensus sales estimate of $20.44 billion for the current quarter points to a year-over-year change of +31.4%. The $85.6 billion and $99.07 billion estimates for the current and next fiscal years indicate changes of +31.3% and +15.7%, respectively.
Last Reported Results and Surprise HistoryLilly reported revenues of $19.8 billion in the last reported quarter, representing a year-over-year change of +55.5%. EPS of $8.55 for the same period compares with $3.34 a year ago.
Compared to the Zacks Consensus Estimate of $17.62 billion, the reported revenues represent a surprise of +12.37%. The EPS surprise was +21.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Lilly is graded C on this front, indicating that it is trading at par with 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 Lilly. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The tech sector is experiencing a sharp global sell-off today, dragging down chipmakers like Intel, AMD, Micron, and even the artificial intelligence (AI) darling – Nvidia.
What’s driving this weakness is a combination of a global market contagion (KOSPI crashed over 10% prompting a trading halt), resurgent fears of the US rate hike, and a valuation reset on the AI trade.
Against this backdrop, fund manager Tom Hulick has named three non-AI stocks suitable for those interested in rotating out of the plunging tech sector.
While tech investors panic over premium valuations and a potential AI slowdown, Hulick points to Eli Lilly stock as a robust value growth alternative.
The tech sector’s vulnerability stems from its volatile dependence on speculative forward-looking hardware cycles, but LLY offers a defensive moat built on generational medical advancements – specifically its blockbuster weight-loss drug.
Though chipmakers like AMD and Intel suffer severe multiple compression under high-rate fears, Lilly’s growth is anchored to secular, inelastic healthcare demand.
Hulick believes the market is underestimating how tech and AI developments will boost pharma innovations, making Eli Lilly’s flat-ish year-to-date (YTD) performance an “attractive” entry point for capital rotating out of volatile semiconductor stocks.
Note that LLY shares also currently pay a dividend yield of 0.63%.
The semiconductor wipeout on Jun. 23 underscores the risks of “crowded trades” where valuations outpace near-term cash flows.
In stark contrast, Hulick highlights GE Vernova shares, pointing to genuine, undeniable earnings momentum within the industrial power sector.
As money flees capex-heavy tech names whose future revenues are vulnerable to macroeconomic policy shifts, GEV stands out as a fundamental structural play.
The company provides the essential electrical grid infrastructure required to sustain the modern economy.
While chip manufacturers like AMD or Intel face compressing margins and global market contagion today, GE Vernova captures the market’s necessary pivot toward hard industrial assets, offering investors stable growth that is completely insulated from the immediate risks of the AI hardware trade reset.
A 0.19% dividend yield makes GEV stock even more attractive to own in 2026.
Instead of chasing the highly volatile, consumer-facing tech giants, Hulick suggests a tactical pivot toward infrastructure-level technology via Panasonic.
As the tech-heavy KOSPI and Nasdaq plummet under leverage liquidations, Panasonic offers a grounded, utilitarian alternative focused on backup battery systems and supercapacitors.
These technologies are crucial for efficient energy storage and grid management – the very power systems required to fuel the broader economy.
While premium chip stocks suffer are extremely sensitive to surging US Treasury yields, Panasonic stock represents the “broadening out” of the market into tangible, industrial-tech small and mid-caps.
It allows investors to exit the over-leveraged AI trade while still capturing the indispensable secular growth of energy infrastructure.
The Eli Lilly logo appears on one of the company’s offices in San Diego, California, U.S., November 21, 2025. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab
CompaniesBRUSSELS, June 23 (Reuters) - Eli Lilly (LLY.N), opens new tab expects to launch its weight-loss pill in Europe and Britain in the second half of 2026 or early 2027, with the drugmaker targeting the out-of-pocket telehealth market as it has done in the United States.
Lilly still plans to pursue public reimbursement from European governments where possible, even as new U.S. drug pricing policies complicate negotiations with health authorities.
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Patrik Jonsson, executive vice president of Lilly's international businesses, told Reuters the company expected Europe and Britain to be among the next markets to receive the drug after recent approvals in the United States and the United Arab Emirates.
Lilly plans to launch the drug for weight-loss as soon as it gets regulatory approvals but will partner with telehealth companies because most obesity treatment outside the U.S. is paid for directly by patients rather than public health systems, he said.
The strategy builds on its efforts to develop a consumer-focused obesity business outside the U.S. through telehealth providers, e-commerce platforms and direct-to-patient channels. Lilly is continuing to apply lessons from the development of the U.S. obesity market, he said.
Jonsson said Lilly would still seek reimbursement where possible, despite uncertainty created by U.S. President Donald Trump's "most-favoured-nation" pricing policy, which seeks to link some U.S. drug prices to those paid in other countries.
"Our goal will still be public coverage, wherever possible," he said. He, however, added that "MFN will play a role for all launches".
Lilly signed an agreement with the Trump administration last year committing to provide MFN pricing on new medicines.
Jonsson said Lilly would seek reimbursed prices that were consistent with the company's interpretation of the MFN framework, which links prices to U.S. net prices adjusted for countries' income levels.
His comments come as drugmakers and European governments clash over medicine pricing, with companies warning that lower European prices could increasingly affect returns in the lucrative U.S. market.
Reporting by Maggie Fick; Editing by Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Maggie is a Britain-based reporter covering the European pharmaceuticals industry with a global perspective. In 2023, Maggie's coverage of Danish drugmaker Novo Nordisk and its race to increase production of its new weight-loss drug helped the Health & Pharma team win a Reuters Journalists of the Year award in the Beat Coverage of the Year category. Since November 2023, she has also been participating in Reuters coverage related to the Israel-Hamas war. Previously based in Nairobi and Cairo for Reuters and in Lagos for the Financial Times, Maggie got her start in journalism in 2010 as a freelancer for The Associated Press in South Sudan.
Key Takeaways Biotech stocks are exhibiting relative strength amid a 5-year technical breakout. The sector is benefiting from AI-driven efficiency gains. Biotech valuations are near historic lows. Biotech’s Brutal Bear Market Starting in early 2021, the notoriously difficult-to-invest-in biotech sector suffered one of its most brutal bear markets in history. The iShares Biotechnology ETF ((IBB - Free Report) ), a proxy for the Nasdaq Biotechnology Index and pure-play biotech companies, slumped 33%, failing to notch fresh highs for more than four years. While a 33% drawdown may not seem like much in a vacuum, such a drawdown has far more meaning when compared to the S&P 500 Index, which rose more than 60% over the same period.
While U.S. markets have enjoyed a multi-year rally mainly driven by big tech, while biotech has suffered a volatile, choppy, and prolonged sell-off. Although large-cap, cash-rich, mega-cap biotech stocks saw less pain, numerous clinical-stage, speculative biotech stocks loss 50% of their value or more. What caused the carnage?
· Higher Interest Rates: Early-stage biotech companies often must rely on borrowed money for a decade or more. Interest rate hikes made borrowing more expensive for these companies.
· Post-COVID Hype Died: While biotech companies were the poster-child of the COVID-19 era on Wall Street, “tourist” investors rushed for the exits afterward, causing selling pressure.
· Regulatory Red Tape: The Biden Administration’s Federal Trade Commission (FTC) took a very “hawkish” approach to mergers and acquisitions (M&A). M&A is the lifeblood of the biotech sector. Additionally, the Inflation Reduction Act (IRA) introduced government negotiations for Medicare, chilling investment in certain therapeutic areas.
Has Biotech Turned the Corner?The biotech sector is showing promising signs that it has turned the corner. Often, the first sign of a turnaround shows its hand in price, which is why legendary investor Stanley Druckenmiller prefers to “invest, then investigate.” That’s exactly what’s occurring in biotech. The IBB is exhibiting extraordinary relative strength. For instance, the Nasdaq dropped nearly 1,000 points on Tuesday. However, IBB bucked the weakness and gained nearly a percent for the session.
Meanwhile, the longer timeframe also shows promising relative strength. While many tech stocks have plunged off recent highs, IBB is making new highs and is on the cusp of breaking out of a massive 5-year base. As the old Wall Street adage goes, “The longer the base, the higher in space!”
Image Source: TradingView
5 Reasons to Own Biotech Biotech’s bull case goes far beyond its price action. Below are 5 reasons to own the sector:
AI Will Drive Discovery, Reduce CostsDiscovering a drug and passing a clinical trial can result in years of research and development (R&D) expenses. However, that is likely to change with the advent of high-powered AI models. Predictive AI models and advanced computing infrastructure will dramatically reduce R&D expenses and shave off years of R&D time.
M&A & Reduced Red TapeBetween now and the end of the decade, the biotech industry faces a tsunami of patent expirations on blockbuster drugs. For instance, the Novartis ((NVS - Free Report) ) heart failure blockbuster drug recently lost key patents, and the Pfizer ((PFE - Free Report) ) breast cancer drug will soon. These massive revenue hits will cause big tech companies to acquire clinical-stage biotech companies to fill the void. Additionally, a less hawkish FTC means that more acquisitions are likely to be given the green light.
The Coming GLP-1 SupercycleBreakthrough GLP-1 drugs like Eli Lilly’s ((LLY - Free Report) ) “Mounjaro” are likely to lead to a biotech super cycle. In fact, GLP-1s are the closest thing the biotech industry has produced to a wonder drug. For instance, GLP-1s have proven to dramatically reduce obesity, inflammation, and the risk of cardiovascular-related death.
Rock-Bottom ValuationsBiotech’s multi-year bear market has resulted in poor sentiment and rock-bottom valuations – a recipe for a bull market. For example, Pfizer’s P/E is currently hovering near an all-time low.
Image Source: Zacks Investment Research
Diversification & DefenseWall Street’s AI frenzy has likely led to overconcentration in the tech sector. As a result, money managers may look to diversify into biotech and defensive healthcare names.
Bottom Line
With the regulatory friction of a hawkish FTC easing, massive big-pharma cash piles searching for pipeline replacements, and game-changing AI efficiencies coming online, the biotech sector’s fundamentals have fundamentally transformed.
President Donald Trump on Tuesday visited the Mack Trucks facility in Macungie, Pennsylvania, to tout his economic agenda in a battleground district ahead of this fall's midterm elections.
Trump spoke to a crowd at the Mack Trucks facility while accompanied by Rep. Ryan Mackenzie, R-Pa., who represents the Keystone State's 7th congressional district where the plant is located. Mackenzie is running for reelection and will face Democratic challenger Bob Brooks this fall.
The president touted the impact of his economic policies on Pennsylvania, saying that they've helped boost job creation in the commonwealth with a particular focus on manufacturing jobs.
"More Americans are working today than at any time in the history of our country. And we've created over… 32,000 new jobs just starting in Pennsylvania alone. But you have to get credit for that," Trump said. "And in the last few months alone, we've added 2,600 Pennsylvania manufacturing jobs, and that number's going to go much higher as the factories start to open."
JOHNSON & JOHNSON TO INVEST $1B IN PENNSYLVANIA MANUFACTURING FACILITY
President Donald Trump touted manufacturing jobs in his Pennsylvania speech at a Mack Trucks facility on Tuesday. (Mandel NGAN / AFP via Getty Images)
Trump also praised the role of Mack Trucks, which is owned by Volvo Group of Sweden, in supporting both the regional and national economy with its production.
"For more than 100 years, this legendary company has been making trucks right here in Eastern Pennsylvania, building the heavy machinery that keeps our economy rolling on, factories moving and our industries rolling all across the nation," Trump said.
Ticker Security Last Change Change % VLVLY VOLVO AB 32.4 -0.92 -2.76% NOK NOKIA OYJ 13.70 -0.73 -5.06% LLY ELI LILLY & CO. 1,107.08 +5.00 +0.45% TRUMP GREENLIGHTS U.S. STEEL DEAL, PROMISING $11B INVESTMENT AND 100,000 AMERICAN JOBS
He also said that his move to roll back the Biden administration's fuel emissions regulations, arguing that those more stringent standards would've raised costs on consumers and created problems for companies like Mack Trucks.
"I terminated Biden's disastrous fuel emission standards that would have crushed Mack Trucks here," Trump said. "It was the most insane environmental regulation ever conceived of by men. It was totally unreasonable and ridiculous, and you can sell trucks for much less money, that are much better trucks that work, that actually work."
President Donald Trump at the Mack Trucks facility in Macungie, Pa., Tuesday. (Andrew Harnik/Getty Images)
TRUMP ORDERS FEDERAL AGENCIES TO PRIORITIZE AMERICAN-MADE GOODS AND CURB WAIVER USE
Trump's speech also referenced other notable investments in the region's manufacturing industries, including the pharmaceutical, medical products and chip-making sectors.
"Eli Lilly has just announced — great company, by the way, drug company — a $3.5 billion investment in a brand-new, state-of-the-art manufacturing facility right down the road that's going to create over a thousand jobs. Just that one," Trump explained.
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"Nokia is investing $30 million to expand its semiconductor testing and packaging operations, thousands of jobs," he added. "And B. Braun has announced a $20 million expansion of its medical device manufacturing operation in Allentown."
A drone view shows the Eli Lilly logo on one of the company’s offices after it hit $1 trillion in market value on Friday, becoming the first drugmaker to join the exclusive club dominated by... Purchase Licensing Rights, opens new tab Read more
June 24 (Reuters) - U.S. drugmaker Eli Lilly (LLY.N), opens new tab will collaborate on experimental medicines with a unit of oncology-specialist Abbisko Cayman (2256.HK), opens new tab, with potential payments of up to around $1.9 billion if milestones are met, the Chinese drugmaker said on Tuesday.
The deal marks another business win for Abbisko Cayman's up-and-coming subsidiary Abbisko Therapeutics, which in 2022 entered into a collaboration agreement with Lilly to discover, develop and potentially commercialise a small-molecule therapeutic.
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The latest deal with Lilly involves "medicines across multiple targets", Abbisko Cayman said in a filing to the Hong Kong stock exchange.
Shares of the Shanghai-headquartered firm were up about 4% after the announcement.
Under the terms, Abbisko Therapeutics will conduct discovery and early development activities for drug programs.
Abbisko Therapeutics and Lilly aim to "accelerate the advancement of innovative therapeutic programs and bring new treatment options to patients worldwide," Abbisko Cayman said.
Abbisko Therapeutics declined to comment to Reuters on the types of diseases covered by the collaboration. Lilly did not immediately respond to a request for comment.
Abbisko Therapeutics is eligible to receive an upfront payment for an undisclosed amount and up to about $1.9 billion in additional payments tied to development, regulatory and commercial-related milestones.
Reporting by Andrew Silver in Shanghai and additional reporting by Nichiket Sunil in Bengaluru; Editing by Subhranshu Sahu and Kate Mayberry
Our Standards: The Thomson Reuters Trust Principles., opens new tab
, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) announced that it will webcast its quarterly earnings conference call for the second quarter 2026 on Tuesday, July 21, 2026 beginning at 8:00 a.m. ET and lasting approximately one hour. During the call, the company will discuss its financial performance, as well as future expectations.
The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
You can access the conference call by dialing 833-419-0865, within the U.S. or +1 785-838-9333 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (Conference ID: DHRQ226). A replay of the conference call will be available shortly after the conclusion of the call until August 4, 2026. You can access the replay dial-in information on the "Investors" section of Danaher's website under the subheading "Events & Presentations."
Danaher's earnings press release, the webcast slides and other related materials will be posted to the "Investors" section of Danaher's website under the subheading "Quarterly Earnings" beginning at 6:00 a.m. ET on the date of the earnings call and will remain available following the call.
ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Through our connected ecosystem of industry-leading businesses, we work side by side with customers to solve many of their most complex scientific and clinical challenges—helping move innovations from discovery to delivery faster for patients who depend on them.
Powered by the Danaher Business System, our advanced science and technology and proven ability to innovate help enable faster, more accurate diagnoses and reduce the time, cost, and risk required to discover, develop, and deliver life-changing therapies. Through continuous improvement and operational excellence, our approximately 60,000 associates worldwide are focused on delivering lasting impact and improving quality of life around the world, while building a healthier, more sustainable tomorrow. Explore more at www.danaher.com.
Whether you believe there's a bubble in tech or are just worried about rising valuations in the stock market, there's ample reason to want to reduce risk right now. By diversifying into dividend stocks with stable businesses, you can make your portfolio less vulnerable in the event of a market crash or correction in the near future.
While no investment is entirely free of risk, three dividend stocks that can be great options today are Medtronic (MDT +1.72%), Realty Income (O +1.57%), and ExxonMobil (XOM +0.91%). Here's why these low-volatility stocks can be a good option for reducing your exposure to the stock market's potentially wild swings.
Image source: Getty Images.
Medtronic Medtronic is a leading device maker in the healthcare industry, benefiting from an ongoing need for its products. Healthcare is essential, and demand will remain strong regardless of economic cycles or market volatility. Medtronic's products are used worldwide to treat many conditions.
That stability is evident in its top line, which has been steadily growing. The company did have a particularly strong performance in its most recent fiscal year (which ended on April 24), marking its best annual revenue growth in a decade. But at 8%, it wasn't exactly a terribly high rate of growth. It does, however, underscore the fairly consistent and mild level of growth it typically generates on a yearly basis.
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That consistency is what makes Medtronic an appealing stock to own. It has averaged a beta of 0.60, which is well below 1.0 (which would indicate a stock moves in unison with the market). It also pays a fairly high dividend that yields 3.6%; the S&P 500 average is just 1.1%. And with the stock trading at just 13 times its estimated future earnings, based on analyst estimates, it's a fairly cheap buy right now.
Realty Income A top real estate investment trust (REIT) such as Realty Income can also make for a dependable dividend stock to buy and hold. Its business has grown faster than Medtronic's over the years by adding to its portfolio of properties, enabling it to grow revenue more quickly. In 2025, the company's top line rose by 9%, to $5.7 billion.
And as it adds to its portfolio, it gains a new baseline for recurring revenue. By focusing on a diverse mix of tenants, the REIT isn't too vulnerable to any one company, which is why it can be a suitable option for risk-averse investors. Its beta is 0.73, indicating that it's a bit more volatile than Medtronic, but still fairly stable overall.
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The big appeal about REITs is their consistency, reliability, and, of course, dividend income. Realty Income currently yields 5.2%, which is the highest payout on this list. The company has also been routinely increasing its dividend, making it highly likely that the dividend income you collect from the stock will rise significantly in the future.
ExxonMobil Oil and gas stocks can also make for good investments if you want to reduce risk. And what better option than to consider one of the iconic leaders in the space -- ExxonMobil. The oil and gas giant is known for being a stable income stock, having raised its dividend for decades.
It yields 2.9% today, and that would be a fair bit higher if not for the stock's 26% surge over the past year, as investors have pivoted to oil and gas stocks amid the war in Iran, which has pushed oil prices higher. Exxon's beta is the lowest on this list at just 0.15, indicating that whatever moves the broader market makes are likely to have a limited impact on its share price.
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139.73
When the S&P 500 crashed by 19% in 2022, Exxon's stock soared by 80%. That might not happen if there's another downturn, but it's an example of why it can be a good investment if you want to diversify your portfolio and collect some excellent dividend income along the way.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Medtronic (MDT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Medtronic currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 48.3% and 6.9% of all recommendations.
Brokerage Recommendation Trends for MDT
Check price target & stock forecast for Medtronic here>>>
The ABR suggests buying Medtronic, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in MDT?In terms of earnings estimate revisions for Medtronic, the Zacks Consensus Estimate for the current year has declined 2.2% over the past month to $5.94.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Medtronic. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Medtronic with a grain of salt.
Amid the largest IPO in history, which we recently witnessed, and the booming artificial intelligence industry that continues to show highly attractive prospects, there remain serious economic and geopolitical tensions that could eventually significantly cool much of the excitement on Wall Street. Inflation is on the rise, some economists continue to warn that a recession may be coming, and although the United States and Iran seem to be working toward a deal, it remains hard to predict how that situation will evolve.
In the current environment, it is a good idea to consider investing in dividend stocks. They may not be particularly "exciting" choices right now, but solid dividend payers can help stabilize a portfolio in case the going gets rough and smooth out market losses in a downturn. With that said, let's consider two excellent dividend stocks that are worth investing in right now: Pfizer (PFE 1.44%) and Medtronic (MDT +1.72%). Both healthcare leaders could deliver competitive returns through the next decade.
Image source: Getty Images.
1. Pfizer Pfizer has not performed well in recent years due to poor financial results and upcoming patent cliffs, notably for its anticoagulant Eliquis, one of its best-selling drugs. It will lose patent exclusivity by the end of the decade. However, the company is developing new products that could help it overcome these challenges. Pfizer has significantly expanded its pipeline in recent years, partly thanks to acquisitions, and now boasts a deep portfolio of investigational medicines.
The most promising might be in oncology and weight loss. In the latter therapeutic area, Pfizer is developing an anti-obesity medicine, MET-097i, which it hopes will be highly differentiated from current market leaders, thanks to its better safety profile and long-acting properties.
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In oncology, Pfizer is working on highly promising cancer medicines, including PF'4404, which could challenge the current leader in the cancer drug market, Keytruda, across several niches. Of course, Pfizer has plenty of attractive candidates beyond those, and for what it's worth, some of the company's newer launches have already started contributing meaningfully to its financial results. That's the case with Abrysvo, a vaccine for the respiratory syncytial virus.
Pfizer should overcome recent challenges thanks to its deep pipeline. Meanwhile, the company offers a highly attractive forward yield of 6.8% and has not suspended its dividend program despite the significant challenges it has encountered of late. Pfizer could continue rewarding its shareholders with payout increases over the next decade while bouncing back and delivering much better returns.
2. Medtronic Medtronic's shares recently fell after earnings (for the fourth quarter of its fiscal year 2026, ending April 24), as the company's guidance missed Wall Street's estimates. The medical device specialist could face a challenging next few years as it navigates tariffs and other macroeconomic factors that might increase its costs and squeeze its profits and margins. However, Medtronic remains an attractive long-term dividend stock. The company's vast lineup across multiple therapeutic areas allows it to generate consistent revenue, and it also has several opportunities that will eventually help boost sales growth.
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Last year, Medtronic finally received U.S. clearance for its Hugo robotic-assisted surgery (RAS) system for urologic procedures. This milestone will help it tap into the attractive and underpenetrated RAS market. It will take some time for Medtronic to ramp Hugo sales, but it should eventually become a meaningful growth driver, especially as it earns additional indications. Medtronic should also succeed in finding additional growth avenues, and, over the long run, the company will benefit from secular tailwinds -- such as an aging population -- that will drive increased demand for its products.
Finally, Medtronic has an exceptional dividend track record. The company offers a juicy forward yield of 3.63%, and it has increased its payouts for 48 consecutive years. This long streak is likely to continue for the foreseeable future, making Medtronic a great pick for income seekers.
Key Takeaways TXN's manufacturing expansion is designed to cut costs and support stronger margins over time.Texas Instruments' gross margin rose 120 bps YoY to 58% in Q1'26 as revenues climbed 19% to $4.83 billion.TXN's capital spending is projected to fall to $2-$3 billion as utilization and revenues recover. Texas Instruments Incorporated’s (TXN - Free Report) long-term manufacturing expansion strategy is beginning to show meaningful benefits, raising the question of whether it can drive stronger profit margins in the years ahead. Unlike many semiconductor companies that rely heavily on third-party foundries, Texas Instruments has invested aggressively in its manufacturing network, particularly 300-millimeter wafer fabrication facilities.
The company has spent billions of dollars expanding capacity across sites in Texas and Utah over the past several years. While these investments initially pressured profitability through higher depreciation and operating costs, they are designed to lower production costs over time. Larger 300-millimeter wafers produce significantly more chips per manufacturing run than traditional 200-millimeter wafers, improving efficiency and reducing cost per chip.
The benefits are already becoming visible. In the first quarter of 2026, Texas Instruments reported a gross margin of 58%, an improvement of 120 basis points (bps) from the year-ago quarter. Revenues rose 19% year over year to $4.83 billion, while operating profit climbed 37% to $1.81 billion. The operating margin was 37.5%, which expanded by 490 bps from the prior-year quarter’s number. Stronger factory utilization, combined with growing demand in industrial and data center markets, helped improve profitability.
The company’s internal manufacturing push gives it a competitive advantage during periods of industry tightness. Texas Instruments can support customers with stable lead times while competitors face supply constraints. This capability may also create opportunities to gain market share.
Although depreciation expenses are expected to remain elevated in 2026, capital expenditures are projected to decline to $2-$3 billion from more than $4 billion over the past 12 months. As revenues continue to recover and factory utilization improves, Texas Instruments’ manufacturing investments could become an increasingly important driver of margin expansion.
How TXN’s Rivals Are Improving Manufacturing EfficiencyAnalog Devices, Inc. (ADI - Free Report) is a major competitor in the analog semiconductor market and continues to focus on manufacturing efficiency to protect margins. The company operates a mix of internal production facilities and outsourced manufacturing partners.
Analog Devices has historically delivered gross margins above 60%, benefiting from its high-value industrial and automotive products. The company is also integrating manufacturing assets acquired through past acquisitions to improve scale and cost efficiency. In the second quarter of fiscal 2026, Analog Devices’ adjusted gross margin expanded 360 bps year over year to 73%, while adjusted operating margin improved 780 bps to 49%.
NXP Semiconductors N.V. (NXPI - Free Report) is another key rival investing to strengthen profitability. The company has expanded its internal manufacturing capabilities while maintaining relationships with external foundries.
NXP Semiconductors generates a gross margin in the mid-to-high 50% range and has benefited from strong demand in automotive and industrial markets. Its manufacturing strategy focuses on balancing flexibility with cost control. In the first quarter of 2026, NXP Semiconductors’ non-GAAP gross margin expanded 100 bps year over year to 57.1%, while non-GAAP operating margin improved 120 bps to 33.1%.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 76.2% year to date compared with the Zacks Semiconductor - General industry’s 25.7% gain.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 38.36, significantly higher than the industry’s average of 24.70.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 40.6% and 14.4%, respectively. Estimates for 2026 and 2027 have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Texas Instruments currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On June 18, 2026, Texas Instruments Inc (TXN) shares experienced a notable increase of 7.0%, bringing the current price to $322.86. The 52-week trading range fo
Texas Instruments (TXN) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Companies in the Semiconductor – General industry are at the forefront of the ongoing technological revolution based on HPC, AI, electrified and automated driving, IoT and so forth. The semiconductors they produce enable the cloud to function and help analyze data into actionable insights that can be used by companies to operate more efficiently. Therefore, the long-term outlook can only be considered bright.
In the immediate future, however, there could be some challenges. While geopolitical instability and the arms race among nations may sound like positive drivers for some, actual wars disrupt supply chains, delay deliveries and drive up prices. The U.S. government’s tariffs at this juncture will only exacerbate the inflation on end-products using semiconductors and potentially disrupt trade routes, resulting in more of the same challenges. Given the growing uncertainty, we are happy that valuation appears reasonable.
Texas Instruments (TXN - Free Report) has always looked good because of the sticky customer relationships and long product lifecycles, and its ongoing investment cycle should generate strong growth. We also think the Amtech Systems (ASYS - Free Report) opportunity still has legs as AI infrastructure appears to be on steroids. So our bets are on these two stocks.
WSTS data, which is also typically quoted by the Semiconductor Industry Association (SIA), shows that global semiconductor sales are now expected to grow 89.9% in 2026 to $1.5 trillion, mainly driven by very strong memory demand. Growth will slow to 26.6% the following year.
While growth in other categories cannot match the 249.5% of memory chips, logic, MCU and analog growth of 37.3%, 19.8% and 10.2% is also strong by any standards, taking total IC growth to 101.5%. Discretes, sensors and optoelectronics will grow slower, at a respective 8%, 3% and 2.7%. The Americas will see the strongest increase at 112% this year, followed by the Asia Pacific at 87.4%, Europe at 58.4% and Japan at 27.6%.
IDC expects 52.8% growth in 2026, driven overwhelmingly by AI infrastructure investment. Memory, especially DRAM (HBM), revenues of which are expected to triple this year driven by very strong pricing, is the primary driver. IDC estimates that by 2030, data center semiconductors will account for nearly half the total semiconductor market. NAND is expected to grow 138.5% this year. In non-memory, IDC says that “several end markets are dealing with margin pressure, supply allocation challenges, and macroeconomic headwinds.”
Garter expects 64% growth in 2026, the highest in two decades, as memory revenue increases 3X amid significant price inflation. DRAM and NAND prices are expected to increase 125% and 234%, respectively, strength that is expected to persist through most of 2027 as well. Additionally, memory price inflation will “destroy” or “delay” non-AI demand into 2028.
The U.S. government’s target of reducing dependence on China, and onshoring projects with national security implications are also shaping the future of this industry.
About the Industry The companies grouped under the Semiconductor – General category produce a broad range of semiconductor devices, both integrated and discrete, like microprocessors, graphics processors, embedded processors, chipsets, motherboards, wireless and wired connectivity products, DLPs and analog, serving multiple end markets. The industry includes companies like NVIDIA, Texas Instruments, Intel and STMicroelectronics.
Major Themes Shaping the Industry Artificial intelligence is the single biggest driver of the industry because of the transformation it is bringing in efficiency, cost-effectiveness, automation, safety, environmental benefits and so forth. AI has become an imperative for effective competition, irrespective of the industry and a huge infrastructure is required to support this demand.
This infrastructure consumes thousands of chips. Technology companies are building their own AI where possible and buying where it makes sense. Moreover, the more the companies that use it, the more necessary it becomes.
In this backdrop, data-intensive applications, advancements in machine learning algorithms and increasing urbanization, as well as dynamics in other end markets including data center, auto, industrial automation, healthcare, financial services and other markets are major drivers. The growth this is spurring in the semiconductor industry is likely to continue for years to come.
There is significant opportunity in the automotive and industrial markets. In fact, these two end-markets are shaping up to be its strongest growth drivers after AI. The automotive opportunity is driven largely by electrification (which consumes a large number of chips in things like power management, battery management systems, power conversion systems, charging infrastructure and motor control electronics. Strong growth is also coming from automation.
Automotive computing is also increasingly becoming a thing. The industrial opportunity is mainly in factory automation, where robots, machine vision systems, production lines and real time monitoring systems are consuming a growing number of embedded processors, analog chips, connectivity chips, sensors and power semiconductors.
Current geopolitics is negative for growth. Geopolitical tensions are adding a dimension to semiconductor demand, as countries increasingly adopt the latest technology in defense, infrastructure and other critical applications. As defense spending accelerates the world over, particularly on fighter planes and unmanned aerial vehicles currently being used in military operations, demand for the most sophisticated underlying electronics will only go up.
Tachnavio estimates that semiconductors used in the military and aerospace market will grow 6% between 2025 and 2029. However, war is not conducive to trade overall because of the disruptions in trade routes, uncertainty in demand and price escalation in key commodities. There may also be export restrictions on products being sold to an enemy country. Therefore, ongoing tensions around the world could actually dampen demand, raise prices or cause other disruption in the larger computing, consumer, data center, auto and industrial markets.
China is the largest buyer of U.S. chips and remains hostile. There is also considerable concern that most of the important leading-edge chips are currently made in Taiwan, a country that China threatens to annex. Since this has national security implications, there is an ongoing drive to onshore or nearshore manufacturing. The CHIPS Act is facilitating the process.
·Notwithstanding the fact that the long-term prospects are extremely bright because the industry is on the building-block side of technology, making it crucial for the proliferation of the Internet and the ongoing broad-based digitization, there are some near-term issues. Macro concerns are still significant.
U.S. tariffs are expected to raise prices on all the consumer electronics, computing, data center, industrial and other applications of semiconductors, severely hitting consumer confidence, neutralizing the positive effects of relatively low inflation and a somewhat lower interest rate. In the auto market, ADAS, infotainment and electronic control units (ECUs) remain attractive, with safety and fuel efficiency being top concerns.
The unemployment rate has stabilized in the last three months. However, the personal savings rate is trending down because inflation remains high and debt is increasingly supporting consumption. Consumer confidence continues to fluctuate, hit by the Middle-East conflict. This hurts consumption, including of consumer goods, technology and expensive EVs. Industrial markets are cyclical and directly impacted by any macro slowdown.
Semiconductor supply chains are adjusting. Efficient semiconductor supply chains based on the just-in-time model are no longer coveted, as the cost advantages they enable are not as important as resilience in times of huge demand and unforeseen disruptions. Players continue to adjust for these external disruptions, such as COVID, wars and tariffs. This, along with other factors, such as the U.S.-imposed restraints on dealing with China has led semiconductor companies to diversify their supply chains.
Zacks Industry Rank Indicates Strong Prospects The Zacks Semiconductor-General Industry is a stock group within the broader Zacks Computer and Technology Sector. It carries a Zacks Industry Rank of #27, which places it in the top 11% of nearly 250 Zacks-classified industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates that near-term prospects are improving. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of 2 to 1.
An industry’s positioning in the top 50% of Zacks-ranked industries is normally because the earnings outlook for the constituent companies in aggregate is relatively strong. The opposite is true for stocks in the bottom 50% of industries. In this case, the aggregate earnings estimate for 2026 is down 29.1% from the year-ago level although the aggregate earnings estimate for 2026 is up 55.6%. The 2027 estimate is up 72.3%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Stock Market Performance Remains Strong Tracking the performance of the Zacks Semiconductor – General Industry over the past year shows that the industry has traded at a premium to both the broader Zacks Computer and Technology Sector and the S&P 500 index through most of the past year and more significantly since March 2026.
The industry has gained 57% over the past year. The broader technology sector gained 48% while the S&P 500 index gained 29.1%.
One-Year Price Performance
Image Source: Zacks Investment Research
Current Valuation Reasonable On the basis of forward 12-month price-to-earnings (P/E) ratio, we see that the industry is currently trading at a 24.64X multiple, which is a discount to its median value of 28.78X over the past year. It is also trading at a discount to the broader sector’s 25.24X.
While the S&P 500 trades at 21.54X, it’s worth noting that the industry has consistently traded at a premium to the index since 2021. The industry has traded between a low of 23.05X and a high of 38.34X over the past year. All things considered, it appears that the industry’s valuation is reasonable.
Forward 12 Month Price-to-Earnings (P/E) Ratio
Image Source: Zacks Investment Research
2 Stocks to Consider Macro and geopolitics notwithstanding, the industry stands to benefit from stable or declining interest rates, which typically drives more money into risky assets. Several of the technology heavyweights in this industry are the core suppliers to the AI mega cycle we are seeing now, so we remain optimistic over the long run. The only stumbling block is the valuation. We are picking Texas Instruments and Amtech Systems:
Texas Instruments, Inc. (TXN - Free Report) : Dallas-based Texas Instruments is an original equipment manufacturer of analog and embedded processing chips for industrial, automotive, communications, consumer, data center and other applications.
While the US is its largest market, followed by Europe, it’s worth noting that China still accounts for roughly a fifth of its revenues, which could be at increasing risk given the current geopolitics.
As the pandemic and geopolitics impacted the chip supply chain, and the government incentivized American companies to reshore manufacturing, TI changed its manufacturing strategy from one that opportunistically used external capacity to one on the path to source more than 95% of its wafers internally, with more than 80% on 300mm, by 2030. To this end, it expanded its internal manufacturing capacity in 2024, with tool installations completed and production currently ramping at two 300mm wafer fabs in Richardson, Texas and one in Lehi, Utah. Another Lehi fab and a second Sherman, Texas fab are currently in development.
The company is a beneficiary of the 25% investment tax credit related to some of its investments in U.S. semiconductor manufacturing (expected to continue on qualified investments up to 2034). It also has an agreement with the Department of Commerce to receive direct funding of up to $1.6 billion for the two large-scale 300mm wafer fabs in Sherman, TX, as well as the under-construction Lehi fab in Utah. The company agreed to spend more than $18 billion in U.S. manufacturing, particularly on 300mm wafer capacity by the end of 2029.
As may be expected, capacity expansion initially has a negative impact on margins, as capacity can only be filled over time. Until then, some underutilization charges are a given. If there are in addition any end market issues, such as supply chain glitches in the automotive market or cyclicality in the industrial market, the impact is compounded.
It is encouraging to note that TI has also gradually increased the share of direct sales to customers, which improves insight into their projects and timelines, thus driving sales, customer penetration and market share gains. Customer relationships also tend to be sticky because TI primarily supplies analog and embedded products, and analog products are higher-valued and remain designed in for years. In 2025, more than 80% of business came from direct customers. Since TI has a huge portfolio of thousands of products and builds capacity years in advance to ensure stable supplies even when there is uncertainty in the market, it is easy for the company to attract and retain customers, grow its share of content in each design and gradually capture a growing share of the fragmented automotive and industrial markets.
Industrial and automotive markets together accounted for around 66% of revenue in 2025, so the growing electronic content in these applications holds promise. However, the data center market saw the strongest growth, contributing 9%.
In the last 60 days, the Zacks Consensus Estimate for 2026 increased by $1.31 (20.6%) while the estimate for 2027 increased $1.17 (15.4%). Analysts currently expect revenue and earnings to grow a respective 17.4% and 40.6% in 2026 followed by a respective 9.9% and 14.4% in 2027.
In the past year, this Zacks Rank #1 (Strong Buy) stock gained 62.8%.
Price & Consensus: TXN
Image Source: Zacks Investment Research
Amtech Systems, Inc. (ASYS - Free Report) : Amtech Systems manufactures and sells capital equipment and related consumables and services for semiconductor device packaging, wafer production and device fabrication. Products are sold to semiconductor device packaging, electronic assembly and device fabrication companies worldwide and used to fabricate and package semiconductor devices, such as graphic processing units (GPUs) used in AI applications, silicon carbide (SiC) and silicon power devices and other optical, analog and digital devices.
The optimism on Amtech shares is coming from its SiC equipment.SiC offers several advantages over silicon, including the ability to handle higher voltages, operate at higher temperatures, and switch faster and with lower energy loss. Because of these advantages, engineers can design smaller, lighter and more efficient systems with them, which tend to lower the total cost of ownership over time. And this is why, SiC devices, despite being more expensive, are seeing increasing uptake across several markets, including EVs, fast-charging infrastructure, renewable energy, data centers and AI infrastructure, industrial automation, and for electrical grid modernization.
Therefore, SiC production capacity is increasing very rapidly. McKinsey estimated that capacity will grow from around 2.8 million 150mm wafer equivalents in 2023 to approximately 10.9 million equivalents by 2027, a capacity CAGR of roughly 40% per year. Equipping was initially supported by very strong growth in EVs, although most of the current focus is on AI infrastructure. Companies like Infineon, Wolfspeed, STMicroelectronics and a number of Chinese vendors are in a race to build capacity and take SiC market share. As SiC production capacity continues to expand globally, demand for Amtech's thermal processing equipment and related consumables should also continue to increase. In build cycles, capacity initially exceeds demand, and is then filled over time, with increasing loads benefiting margins.
Management mentioned strong double-digit growth in recurring revenue streams across both segments in the last quarter and called out the AI infrastructure market as a major growth driver. Additionally, they stated that the significant margin improvements came from discontinuing low-margin product lines and the migration to a semi-fabless manufacturing model over the past two years.
In the last quarter, Amtech posted a positive surprise of 100% as earnings of 10 cents were double the estimated 5 cents. For the year ending September 2026, the Zacks Consensus Estimate has gone from 25 cents to 32 cents in 60 days, up 28%. The estimate for 2027 was raised 6.6% during the same time.
The Zacks Rank #2 (Buy) ranked stock is up 431.1% in the past year.
The Dow Jones Industrial Average (^DJI 0.09%) is greener than other major market indexes for the third straight day. At the same time, the Nasdaq Composite (^IXIC 2.21%) is way down. As usual, the S&P 500 (^GSPC 1.44%) index holds the center. Meanwhile, Space Exploration Technologies (SPCX +1.61%) is riding a roller coaster with index-moving consequences.
The split continues a pattern from recent sessions: old-school beats new-school when chips are selling off. And again, SpaceX holds the wild cards to make a significant difference to the indexes that already include it.
^DJI data by YCharts
The chip rout started in Korea Micron Technology (MU 13.08%) was down 11.2% around 1:30 p.m. ET, but the real action happened overnight. South Korea's Kospi index fell 10% after regulators warned about leveraged ETFs tracking rival memory-chip makers Samsung (SSNLF +0.00%) and SK Hynix.
These 2x leveraged products, approved in late May, have tripled in size to more than $9 billion. Korean regulators intended to cool speculation; instead, they inspired a sell-off.
The memory-based panic quickly spread across the semiconductor sector. None plunged as hard as Micron, but industry giants such as ARM Holdings (ARM 10.15%), Marvell Technology (MRVL 9.42%), and Texas Instruments (TXN 8.38%) were all down by roughly 9% in the early afternoon. That's enough to hang storm clouds over the tech-heavy Nasdaq exchange.
Image source: Getty Images.
SpaceX added to the Nasdaq's pain before Tuesday's opening bell, but quickly flipped into positive territory. As of this writing, it's up by 8.2%, erasing premarket memories of a 3% drop.
The recovery sprung from Starfall, a new SpaceX service that will deliver cargo from space to Earth. The projected size of this business is unclear so far, but Wall Street seems to give it a multi-billion-dollar valuation before its first cargo transport. Stay tuned for more details, probably with market-moving effects at every turn.
Despite the tech sector's chip-powered crash, the Dow took another modest step forward.
Ironically, good old tech giant International Business Machines (IBM +4.94%) was a leading contributor to the Dow's gains today. Big Blue was up by 4.8% or 75 Dow points on a hat trick of bullish news. Well-respected analyst firms JPMorgan and Morgan Stanley published optimistic reviews of IBM's data center business prospects. At the same time, the company signed a multi-year partnership with ChatGPT maker OpenAI, integrating next-generation AI models in IBM's cybersecurity tools.
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Looking ahead Micron reports earnings on Wednesday evening, which should be interesting after an 11% drop on no company-specific news. The bar for "good enough" just got lower.
Thursday's producer-side inflation report is the next macro test. Economists expect 4.1%, more than double the Fed's preferred level. Rate hike expectations have doubled in two weeks, and every decimal point will matter.
And you know the drill by now. The market keeps swinging, and today was a downturn -- but patient investors should keep an eye on the far horizon. In the long run, most of the daily volatility is nothing but noise. Real wealth is built on fundamental stock research and years of patience, not catching the latest market darling in mid-air.
Anders Bylund has positions in International Business Machines and Micron Technology. The Motley Fool has positions in and recommends Arm Holdings, International Business Machines, Marvell Technology, Micron Technology, and Texas Instruments. The Motley Fool has a disclosure policy.
In the latest close session, Texas Instruments (TXN - Free Report) was down 8.39% at $304.41. The stock's change was less than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Prior to today's trading, shares of the chipmaker had gained 7.46% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 17.39% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.66 per share and a revenue of $20.76 billion, representing changes of +40.55% and +17.38%, respectively, from the prior year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 43.35. Its industry sports an average Forward P/E of 68.59, so one might conclude that Texas Instruments is trading at a discount comparatively.
It's also important to note that TXN currently trades at a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.
Modular design and integrated automation controls to help fast-track and optimize new Brazil refinery, expected to be one of the largest in the world
Acelen will use a sustainable feedstock native to Brazil, macaúba oil, to produce renewable fuels
, /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced that its modular Ecofining™ process technology, specialized pumps, compressors, and integrated control and safety systems will help drive sustainable aviation fuel (SAF) and renewable diesel production for Acelen Renewables' greenfield site in Bahia, Brazil.
With SAF demand projected to increase to nearly 500,000 barrels per day over the next decade1, refiners are looking for ways to scale production quickly and efficiently. Honeywell's modular delivery model shortens construction time and lowers costs, allowing SAF production faster than traditional methods.
"Brazil is set to produce the fuel of the future through a project that is sustainable—economically, socially, and environmentally," said Marcelo Cordaro, COO of Acelen Renewables. "The Bahia facility project supports biodiversity and fosters an economy based on sustainability. Honeywell's process technology and automation expertise will help maximize the production of lower-emission fuels at our facility, supporting the growing global demand for renewable fuels."
The Honeywell UOP Ecofining process, developed with Eni SpA, efficiently converts waste fats, oils, and greases into renewable diesel and SAF that can reduce greenhouse gas emissions by up to 80% when blended with conventional jet fuel2.
"Honeywell's low-carbon process technologies are enabling companies like Acelen to address the growing demand for renewable fuels by using a variety of feedstocks," said Ken West, president and CEO of Honeywell Process Technology. "Technology and integrated automation play a pivotal role in reducing the cost of renewable fuels, which is essential for broad adoption. Advances in Honeywell's technology have reduced the cost to produce SAF and the use of novel, low-cost feedstocks will help further reduce production costs."
Honeywell has delivered more than 1,500 modular process units, across multiple technologies, worldwide. Honeywell's integrated control and safety system is enriched by Honeywell UOP's vast operational expertise and cutting-edge technologies and is embedded within the Experion® PKS platform. As a result, it can significantly reduce project timelines and risks while helping to optimize biofuel production to achieve operational excellence. The combination of process technology and automation provides a platform for digitization and data driven operating insights.
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology, that help make the world smarter and safer as well as more secure and sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
Contact:
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Whitney Ellis
704-621-4354
[email protected]
Honeywell International (HON 2.52%), one of the world's largest industrial conglomerates, continues to dismantle itself. Less than a year after spinning off Solstice Advanced Materials, the company is gearing up for an even larger spinoff.
Later this month, Honeywell will split into two separate companies: Honeywell Aerospace and Honeywell Technologies. The expectation is that each company, as a pure play in its respective industry, will receive a higher valuation than the diversified Honeywell has as a public company.
However, while spinoffs are a useful tool for maximizing shareholder value, they aren't necessarily a silver bullet. Let's take a closer look at the math behind this transaction, as well as recent price action with Honeywell shares, and determine whether it's worthwhile to buy Honeywell Aerospace, as well as when exactly to buy it.
Image source: Getty Images.
Honeywell, the spinoff, and the potential payoff With the Honeywell Aerospace spinoff scheduled for June 29, management is ramping up its efforts to tout the event as highly beneficial to shareholders. As management has noted in its communications with investors, this deal entails splitting off Honeywell's faster-growing aerospace unit from its relatively slower-growing automation segment, which will take on the Honeywell Technologies name.
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At the same time, the two companies intend to pursue margin-expansion efforts following the spinoff. By raising their margins, both Honeywell Aerospace and Honeywell Technologies intend to deliver double-digit earnings growth over the next few years. Honeywell Aerospace expects annual sales growth of 6% to 8%, while Honeywell Technologies expects sales growth of 4% to 6%.
In terms of share appreciation potential, it lies in the valuations of each unit's respective "pure-play" competitors relative to Honeywell's current valuation as a whole. GE Aerospace, one of the most widely followed aerospace stocks, trades at 46 times forward earnings.
Automation-focused industrial stocks, like Rockwell Automation, trade for over 30 times forward earnings. Meanwhile, Honeywell, even as its shares rally ahead of the merger, trades for only 21.6 times forward earnings. Even if the two companies experience partial expansion toward similar multiples, the resulting gains could be substantial, especially if the aforementioned margin-expansion efforts take hold.
There's an opportunity on both sides The mechanics of the spinoff are as follows. Shareholders of record as of June 15 will receive shares in Honeywell Aerospace on a pro rata basis on June 29, receiving one share for every two shares held in Honeywell. The remaining Honeywell entity will then execute a 1-for-2 reverse stock split effective June 29.
It's unclear how exactly shares will trade after the spinoff. Given how "hot" the aerospace sector is at present, Honeywell Aerospace could go on a tear. However, the "less glamorous" Honeywell Technologies could pull back, as can happen when a company spins off or splits off a faster-growing business from a slower-growing one.
Then again, a post-spinoff sell-off could create a new opportunity. If investors bail on Honeywell Technologies, it could become oversold, offering a very opportune entry point from a value perspective.
With this in mind, existing Honeywell investors may want to hold onto their positions in both companies. If you've yet to buy, however, you may want to consider Honeywell Aerospace for its growth potential, while keeping an eye on Honeywell Technologies for its rerating potential following an initial period of weakness.
, /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P 100, S&P MidCap 400, and S&P SmallCap 600:
Honeywell Aerospace Inc. (NASD: HONA) will be added to the S&P 500 & 100 on Monday, June 29. Honeywell Aerospace will replace Conagra Brands Inc. (NYSE: CAG) in the S&P 500, and Conagra Brands will replace Grid Dynamics Holdings Inc.(NASD: GDYN) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, June 30. Honeywell Aerospace will replace Honeywell International Inc. (NASD: HON) in the S&P 100 effective prior to the opening of trading on Tuesday, June 30. Honeywell International is spinning off Honeywell Aerospace in a transaction expected to be completed on June 29. Post spin-off Honeywell International will be renamed Honeywell Technologies Inc. and will remain in the S&P 500. Honeywell Aerospace will be more representative of the mega capitalization space. Conagra Brands is more representative of the small capitalization space. Grid Dynamics Holdings is no longer representative of the small capitalization space. National Health Investors Inc. (NYSE: NHI) will replace Apollo Commercial Real Estate Finance Inc. (NYSE: ARI) in the S&P SmallCap 600 effective prior to the opening of trading on Tuesday, June 30. Apollo Commercial Real Estate Finance has announced ongoing liquidation activities and is no longer appropriate for the S&P SmallCap 600. Toast Inc. (NYSE: TOST) will replace TopBuild Corp. (NYSE: BLD) in the S&P MidCap 400 effective prior to the opening of trading on Wednesday, July 1. QXO Inc. (NYSE: QXO) is acquiring TopBuild in a deal expected to close soon, pending final closing conditions. IES Holdings Inc. (NASD: IESC) will replace Janus Henderson Group plc. (NYSE: JHG) in the S&P MidCap 400 effective prior to the opening of trading on Wednesday, July 1. Trian Fund Management LP and General Catalyst Group Management are acquiring Janus Henderson Group in a deal expected to close soon, pending final closing conditions. Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
June 29, 2026
S&P 100
Addition
Honeywell Aerospace
HONA
Industrials
June 30, 2026
S&P 100
Deletion
Honeywell International
HON
Industrials
June 29, 2026
S&P 500
Addition
Honeywell Aerospace
HONA
Industrials
June 30, 2026
S&P 500
Deletion
Conagra Brands
CAG
Consumer Staples
June 30, 2026
S&P SmallCap 600
Addition
Conagra Brands
CAG
Consumer Staples
June 30, 2026
S&P SmallCap 600
Deletion
Grid Dynamics Holdings
GDYN
Information
Technology
June 30, 2026
S&P SmallCap 600
Addition
National Health Investors
NHI
Real Estate
June 30, 2026
S&P SmallCap 600
Deletion
Apollo Commercial Real
Estate Finance
ARI
Financials
July 1, 2026
S&P MidCap 400
Addition
Toast
TOST
Financials
July 1, 2026
S&P MidCap 400
Deletion
TopBuild Corp
BLD
Consumer
Discretionary
July 1, 2026
S&P MidCap 400
Addition
IES Holdings
IESC
Industrials
July 1, 2026
S&P MidCap 400
Deletion
Janus Henderson Group
JHG
Financials
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Union Pacific?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Union Pacific (UNP - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.15 a share 30 days away from its upcoming earnings release on July 23, 2026.
By taking the percentage difference between the $3.15 Most Accurate Estimate and the $3.14 Zacks Consensus Estimate, Union Pacific has an Earnings ESP of +0.29%. Investors should also know that UNP is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Stock News Hormuz and global oil outlook shift: The International Energy Agency says global oil demand has been deeply affected by the Iran war, with supply sho
Built from a real combine harvester, first-of-its-kind ComBar signifies Anheuser‑Busch's commitment to U.S. agriculture and sourcing the highest-quality American-grown ingredients
Embarking on a nationwide tour encouraging consumers to "Choose Beer Grown Here" in support of American farmers
Key Facts:
Anheuser‑Busch launches the ComBar — a first‑of‑its‑kind 10‑ton, 400+ sq. ft. mobile bar built from a real combine harvester to honor American farmers. Coinciding with America's 250th birthday, Anheuser-Busch's ComBar will tour the U.S. in summer 2026 as part of the company's Choose Beer Grown Here initiative encouraging consumers to choose products made with U.S.‑grown ingredients. Anheuser‑Busch spends $700 million annually sourcing high-quality ingredients from 700 U.S. farmers and holds U.S. Farmed certification for several of its iconic American beers, including Busch Light, Budweiser, and Bud Light. , /PRNewswire/ -- Anheuser-Busch, [NYSE: BUD], a leading American manufacturer and maker of Michelob ULTRA, Busch Light, Budweiser and Bud Light, proudly reaffirmed its 165+ year commitment to U.S. agriculture today with the launch of the ComBar: a first‑of‑its‑kind mobile bar engineered from a real combine harvester, built to honor the American farmers behind its iconic beers.
Anheuser-Busch's ComBar Each year, Anheuser‑Busch spends $700 million sourcing the highest-quality barley, rice, corn, and hops from 700 American farmers whose work forms the foundation of the company's brewing tradition. The Anheuser-Busch ComBar stands as a 10-ton, 400+ sq. ft. symbol of that commitment—and an unmistakable reminder that great beer begins in America's fields. See the ComBar up close.
The ComBar—short for "combine" plus "bar"—is the latest milestone in Anheuser‑Busch's ongoing Choose Beer Grown Here initiative, which encourages consumers to support American farmers by choosing products made with U.S.‑grown ingredients. The initiative launched in March 2024 to celebrate Anheuser-Busch's industry-leading achievement of the U.S. Farmed* certification, indicating that at least 95% of the agricultural ingredients in its Busch Light, Busch, Budweiser, Bud Light, and Michelob ULTRA beers are sourced from U.S. farms. By spotlighting the farmers behind its beers—and the company's substantial investment in their livelihoods—Anheuser‑Busch aims to make it easier than ever for consumers to choose beer that benefits American growers.
A 10-Ton Thank You to America's Farmers
The ComBar transforms one of agriculture's hardest‑working machines into a one-of-a-kind, fully functioning mobile bar—complete with gleaming beer taps—serving as a 10‑ton "thank you" to the growers who power American farming. Every detail of the ComBar—from its colossal size to its original auger-turned-tap and custom wrap—is a reminder of the massive contributions of U.S. farmers to Anheuser-Busch's portfolio of iconic American beers.
Cesar Vargas, Chief External Affairs Officer, Anheuser-Busch said: "Anheuser-Busch invests $700 million sourcing from 700 American farmers each year because we know that great beer begins with the highest-quality, U.S.-grown ingredients. The ComBar brings that commitment to life in a way only Anheuser-Busch can—by transforming an iconic symbol of the harvest into a celebration of the people who make our beers possible. We're rolling it out this summer to remind people to Choose Beer Grown Here and support the growers behind every sip—because that's who we are."
The ComBar Hits the Road
Coinciding with America's 250th birthday, the ComBar will embark on a nationwide tour this summer, paying tribute to local farmers in communities nationwide. The mobile bar will pop up at major agricultural and community events, including:
St. Louis 4th of July Celebration — July 3-4, St. Louis, MO Alive at 5 — July 15, Idaho Falls, ID North Dakota State Fair — July 20–25, Minot, ND Anheuser‑Busch Grower Celebrations — July–September, Idaho Falls, ID and Jonesboro, AR Iowa State Fair — August 17–23, Des Moines, IA Farm Progress Show — September 1–3, Boone, IA Husker Harvest Days — September 15–17, Grand Island, NE USA Rice Outlook Conference — December 13–15, Nashville, TN Additional events to be announced For more information on the ComBar and the Choose Beer Grown Here initiative, visit Anheuser-Busch.com and follow Anheuser-Busch on LinkedIn, Twitter, Facebook, and Instagram.
*Indicates at least 95% of agricultural ingredients are farmed in the U.S. Anheuser-Busch is a proud supporter of American Farmland Trust. Learn more at Farmland.org/USFarmed.
ABOUT ANHEUSER-BUSCH
At Anheuser-Busch, our purpose is to create a future with more cheers. For more than 165 years as a leading American manufacturer, we have delivered a legacy of brewing great-tasting, high-quality beers that have satisfied beer drinkers for generations. As the nation's top brewer, one of the fastest growing spirits companies, and an insurgent force in energy drinks, we drive economic prosperity nationwide through investments in our people, facilities, and communities. We are the only alcohol company that invests in the U.S. at this scale.
We make the nation's most iconic beers, ready-to-drink spirits and beyond beer brands, including Michelob ULTRA – America's #1 top-selling and fastest-growing beer – Busch Light, Budweiser, Bud Light, Stella Artois, Cutwater Spirits, NÜTRL Vodka Seltzer, BeatBox, industry-leading craft beers and non-alcohol beers like Michelob ULTRA Zero. We are guided by our commitment to the communities we call home and to the 65,000 hardworking Americans who bring our products to life. That's who we are. For more information, visit www.anheuser-busch.com or follow Anheuser-Busch on LinkedIn, X, Facebook, and Instagram.
Key Takeaways BUD is benefiting from premiumization, pricing and brand investments that support revenue growth.AB InBev is expanding Beyond Beer and scaling digital platforms to boost engagement and efficiency.BUD's megabrands grew 8.2% in Q1 2026, while B2B digital platforms contributed about 72% of revenues. Anheuser-Busch InBev SA/NV (BUD - Free Report) , also known as AB InBev, is sustaining strong revenue momentum, backed by steady consumer demand across its diversified brand portfolio and effective pricing strategies. The company is benefiting from premiumization, disciplined revenue management and sustained investments in brand building and operational efficiency. Leveraging its extensive global footprint and solid execution of core initiatives, BUD is achieving solid growth across major key markets, further strengthening its leadership position in the global beverage industry.
A key pillar of AB InBev’s growth strategy is the continued expansion of its premium and super-premium beer offerings. The company’s global and above-core brands, including Corona and Stella Artois, are performing well across several international markets. With a growing emphasis on higher-margin products and innovative offerings like zero-sugar beer variants, AB InBev is capturing evolving consumer preferences and delivering sturdy growth across key regions.
AB InBev is accelerating growth through its Beyond Beer portfolio and digital transformation. The company is expanding into new categories such as ready-to-drink beverages, hard seltzers and non-alcoholic beers. BUD is also scaling its digital platforms to enhance customer engagement and streamline operations. Its B2B and direct-to-consumer ecosystems are becoming increasingly important growth engines, helping AB InBev better connect with retailers and consumers in a more efficient and tech-enabled manner.
AB InBev has been keen on making investments in its portfolio over the years and rapidly growing its digital platform, including BEES and Zé Delivery. Its digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in first-quarter 2026.
Combined revenues of the company’s megabrands increased 8.2% in the quarter, led by Corona, while Stella Artois and Michelob Ultra also contributed outside their home markets. The company’s premiumization strategy is a key growth opportunity. It has been investing to develop a diverse portfolio of global, international and crafts and specialty premium brands in its markets. All such endeavors are likely to bolster sales and profits.
BUD’s Price Performance, Valuation and EstimatesAB InBev’s shares have gained 25.7% in the past six months compared with the industry’s 11% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BUD trades at a forward price-to-earnings ratio of 17.7X compared with the industry’s average of 15.13X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BUD’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 15.8% and 11.9%, respectively. The company’s EPS estimates for 2026 and 2027 have moved upward in the past 30 days.
Image Source: Zacks Investment Research
AB InBev currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples SpaceThe Chefs' Warehouse, Inc. (CHEF - Free Report) , which is a distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Chefs' Warehouse current financial-year sales indicates growth of 8.3% from the prior-year level. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
Alcohol companies have had fewer reasons to say "cheers" in recent years.
Volumes have been falling, and the entire business model is undergoing a structural shakeup as younger people drink less.
The downturn has been driven by a mix of structural and cyclical forces.
Younger consumers are drinking less, inflation has squeezed discretionary spending, and shifting attitudes toward health and socialising are reshaping demand across beer, wine, and spirits.
There has been a notable shift in drinking patterns as younger people are increasingly drinking less alcohol.
Cultural changes, inflation, and affordability issues are all eating into alcohol consumption.
It’s no coincidence that since 2021, alcoholic drinks companies have had a tough time of it as sales of alcoholic beverages have slowed due to the changing drinking habits of a younger cohort of consumers. Whether it be your traditional brewing companies like Heineken and Carlsberg to the likes of Diageo who make the famous Guinness and Johnnie Walker whisky brands the share price performance has been poor.
According to research by the National Institute on Drug Abuse, rates of lifetime, past-year, and past-month alcohol consumption among young people have been declining since around 2000.
Experts also corroborate the decline of alcohol drinking among younger people.
Stephan Kemper, Chief Investment Strategist at BNP Paribas SA, said roughly 36% of Gen Z identify as non-drinkers. He noted that people who do not begin drinking in early adulthood are unlikely to take up the habit later in life.
Millennials, meanwhile, are approaching their peak consumption years, but Kemper argued that the broader decline in alcohol consumption reflects a deeper generational shift rather than a temporary slowdown.
“We are at the beginning of a generational trend which could well accelerate from current levels.”
Inflation and affordability have put a dent in people’s wallets, which has led to cutting down on discretionary spending.
This has affected drinking as consumers pulled their purse strings.
Inflation clearly doesn’t help (falling alcohol consumption), by encouraging households to reduce outside activities: eating at home instead of outside, drinking at home instead of a bar. This is where beverage consumption is the highest... yet, since the pandemic, the downtrending social spectrum, combined with the cost-of-living crisis, hurts.
Recent US inflation data increased to 4.2% in May, a three-year high.
US consumer sentiment also remained low in recent months due to the US-Iran conflict, which affected gas prices, though the latest data showed improvement in the sentiment.
In the May data, consumer confidence decreased for younger and older customers.
The decline has also been due to a changing perception of young people towards alcohol drinking.
As more people become health-conscious, their view towards alcohol drinking becomes less favourable.
Ipek Ozkardeskaya said the shift away from alcohol is increasingly cultural rather than purely economic.
She argued that younger consumers are placing greater emphasis on health, fitness, and personal image, while spending more time online and socializing differently than previous generations.
“We see that the idea of ‘you must drink to have fun’ has been totally scrapped.”
Usage of smart products that track health has also contributed to people drinking less.
Amanda Wick, Principal at Incite Consulting, pointed out that health wearables and biometric feedback have affected drinking habits "by making alcohol’s effects immediately visible rather than abstract."
Grand View Research data shows that the global wearable medical device market was valued at $54.0 billion in 2025 and is expected to expand rapidly over the coming years.
The market is projected to grow to $68.1 billion in 2026 and reach $330.5 billion by 2033, representing a compound annual growth rate (CAGR) of 29.5% during the forecast period.
Wick said the personal usage of the WHOOP Band showed the detrimental impact of alcohol usage.
In 2026, researchers analyzed data from 30,000 new WHOOP users over 72 weeks and found that self-reported alcohol consumption declined significantly after users began tracking their health metrics. Drinking days fell from 23.0% of days to 17.2% of days—a roughly 25% relative reduction—and reported alcohol volume also declined.
Oura, a company that makes rings that track sleep and activity, has reportedly sold 5.5 million rings in total.
IDC data shows the company was the third most popular wearable brand in terms of unit volume in the US in the first quarter of this year, behind Apple and Google.
Stephan Kemper said the growing use of GLP-1 weight-loss drugs could become another headwind for alcohol consumption.
He noted that these medications appear to reduce a range of addictive behaviours, while the high-calorie content of beer and wine may make them less appealing to consumers focused on weight management.
“While the impact of Ozempic and similar drugs on alcohol consumption is still difficult to isolate precisely, the direction is clear,” Kemper said, adding that the effect is likely to become more pronounced as prescription rates rise.
According to a Morgan Stanley note, the global market for weight loss and obesity could grow to $190 billion by 2035 from $79 billion in 2025.
As more people become proactive in taking care of themselves, it will result in less alcohol drinking.
Major beer and spirit companies have been struggling with either falling volumes or stock slowdown.
The Johnnie Walker whisky maker, Diageo, has seen its stock fall by over 19% since last year.
Anheuser-Busch InBev, the world’s largest brewer, fared much better in the last year, with a 13% gain in stock price.
However, over the last 5 years, the company’s US depository shares have given only 7%returns.
The company’s struggles led to the replacement of CEO Debra Crew in 2025, with sales of the largest spirit maker in the world declining during her tenure.
The company appointed Dave Lewis as CEO to turn the company around.
In its latest results, the company posted a 0.3% organic sales growth, helped by strong demand in the UK and Ireland and stocking up in Latin American countries ahead of the World Cup.
Diageo’s North American sales have declined 9.4% in its third quarter results.
Anheuser-Busch InBev also saw its North American volume fall by 3.1%, though sales grew in the region grew by 0.9%.
The company posted volume growth of 0.8% in its latest quarter, increasing for the first time since 2023.
The growth has been supported by higher prices, while demand for alcoholic beverages has weakened across several markets.
In 2025, the brewer's total sales volume fell 2.3% from a year earlier, including a 2.6% decline in beer volumes.
With these challenges, alcohol companies have pivoted to low alcohol drinks. They have also relied on premiumization to combat falling volumes.
Beverage companies are forced to adopt towards 'NoLo-Land' (No/Low Alcohol). The major players have understood the structural shift and are acting on it, albeit with varying degrees of commitment.
Kemper also noted that some companies are adopting the premiumization strategy as a buffer, with higher prices and values per unit sold, which can shield the bottom line.
Anheuser-Busch InBev has rolled out products such as Budweiser Zero, Corona Cero, and Michelob Ultra Zero, while also rolling out alcohol-free versions of Stella Artois and other core labels.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said companies are “streamlining their portfolios by disposing of lower-margin, lower-growth brands. Not only should this help shore up balance sheets and boost margins, but it also means they can allocate more of their advertising budgets to stronger brands to drive better pricing power and offset volume weakness.”
AB InBev Global Chief Marketing Officer Marcel Marcondes said during the company's first quarter results that the company has sharpened its brand strategy, reducing the number of actively marketed labels in each market from around 15 to 20 brands three years ago to a smaller group of three to five "megabrands."
The selection is based on a combination of sales volumes and growth potential.
These flagship brands now account for about 70% of AB InBev's marketing spend, up from 50% in 2021, and contribute roughly 60% of the company's total sales.
Michael Hewson said, “Carlsberg now generates a good deal of revenue from soft drinks and its non-alcoholic range of beers, with its recent acquisition of Britvic helping to push that up to around 30% of group sales.”
Hewson said Diageo has also expanded its range of alcohol-free products, including 0% versions of Guinness, Tanqueray, and Gordon's Gin, as it adapts to changing consumer preferences.
Analysts cautioned that premiumization may become harder to sustain if consumers remain under financial pressure.
Kemper said higher prices have so far helped offset declining volumes and preserve profitability.
However, he warned that the industry's position would become more challenging if both pricing power and volumes weakened at the same time.
Ozkardeskaya said investors largely recognize weak volume growth in developed markets but still expect premiumization and emerging-market demand to support earnings.
She added that those assumptions could come under pressure if inflation remains elevated.
IWSR data indicate that while several mature markets faced pressure, some emerging economies continued to post growth in total beverage alcohol (TBA) consumption.
South Africa recorded year-over-year increases of 4% in volume and 12% in value between 2024 and 2025.
India also delivered solid growth, with beverage alcohol volumes rising 4% and value increasing 5% over the same period.
Valuations across the sector have already fallen sharply.
Kemper noted that alcohol companies have lost more than $800 billion in market value in recent years, leaving beverage stocks' valuation discount to the broader market at a 15-year high.
“While we agree with this argument to a certain degree, we still think that the headwinds could persist as the structural nature of the change might not be fully embraced yet.”
There are near-term tailwinds for these companies, with the World Cup expected to boost beer consumption.
Jefferies said in a note that "After five successive years of volatility, beer should be better in 2026".
With this edition having more games than the previous one, there are more opportunities for nights out and watch parties, which would increase sales.
According to Jefferies' estimates, one billion extra pints would be consumed globally, providing a 0.3% lift for the beer category.
Bernstein also posted a similar view earlier in the year, saying marquee football tournaments increase beer consumption in the host nation by 1.3% above the normal trend.
Budweiser-maker Anheuser-Busch is expected to be the biggest beneficiary, according to Jefferies, due to its role as the tournament sponsor and strong exposure in the host nations.
Heineken is also expected to benefit from its exposure to Latin America and Europe.
For alcohol companies, the challenge is no longer just cyclical weakness but adapting to a market that is changing structurally.
Younger consumers are drinking less, health-conscious behaviour is becoming mainstream, and inflation continues to pressure discretionary spending.
Companies have responded with premium products, no- and low-alcohol offerings, and portfolio reshuffles, but analysts say those measures may only partly offset the decline in volumes.
Near-term events such as the World Cup could provide a temporary boost to beer sales, yet the broader question remains whether the industry can build sustainable growth in a world where drinking is becoming less central to social life.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Anheuser-Busch Inbev (BUD - Free Report) Anheuser-Busch InBev, alias AB InBev, is a global brewing company with more than 500 iconic brands. The company’s leading position in majority of its markets and a strong global footprint lends the advantage of economies of scale and growing its multi-country brands globally. Its strategy is based on efforts to develop a portfolio of brands that cater to extensive consumer needs within the market, in terms of price range, flavor profiles, and brand meaning.
BUD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.68; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $4.32 per share. BUD boasts an average earnings surprise of +4.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, BUD should be on investors' short list.
General Motors (GM) has reportedly held preliminary discussions with RTX (RTX) and other defense contractors about helping weapons makers increase production, a
In the latest close session, RTX (RTX - Free Report) was down 3.62% at $185.60. The stock's change was less than the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
The stock of an aerospace and defense company has risen by 10.14% in the past month, lagging the Aerospace sector's gain of 10.21% and overreaching the S&P 500's gain of 0.29%.
Market participants will be closely following the financial results of RTX in its upcoming release. The company is predicted to post an EPS of $1.66, indicating a 6.41% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $22.89 billion, up 6.07% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.91 per share and a revenue of $93.68 billion, indicating changes of +9.86% and +5.73%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Right now, RTX possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, RTX is holding a Forward P/E ratio of 27.86. This indicates a premium in contrast to its industry's Forward P/E of 26.73.
We can additionally observe that RTX currently boasts a PEG ratio of 2.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense industry currently had an average PEG ratio of 1.58 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 43% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RTX in the coming trading sessions, be sure to utilize Zacks.com.
According to the Stockholm International Peace Research Institute, military spending around the world is rising rapidly, having reached $2.9 trillion in 2025. Europe has led the way in this growth, with a 14% year-over-year (YOY) increase in military spending from 2024 to 2025. Not only are Russia and Ukraine continuing to pour more money into the ongoing war in that region, but a broader rearmament trend is boosting NATO spending; European NATO member military spending rose at its fastest pace since 1953 last year.
For U.S. investors, the easiest access point to the global defense industry is via major domestic players that have an international presence, like RTX NYSE: RTX. However, these plays don't provide direct access to the European market, a segment that can be difficult for investors in other regions to explore. Fortunately, a growing number of defense exchange-traded funds (ETFs) can provide diversified exposure in a ready-made, easy-access portfolio. Beware, though, that not all of these defense ETFs focus exclusively on European names.
Get EUAD alerts:
The Primary Pure-Play European Defense Fund, But Some Performance Issues LingerFor exclusively European aerospace and defense names, the best bet for many U.S. investors is likely to be the Select STOXX Europe Aerospace & Defense ETF BATS: EUAD. Launched in late 2024, EUAD stands alone in the widening list of domestic ETFs for its regional focus on developed European nations. Despite its passive management, this unique exposure allows fund providers to increase the price. EUAD is on offer for an expense ratio of 0.50%, otherwise fairly high for a passive fund.
Select STOXX Europe Aerospace & Defense ETF Today
EUAD
Select STOXX Europe Aerospace & Defense ETF
$41.78 -0.09 (-0.21%)
As of 06/23/2026 05:05 PM Eastern
52-Week Range$37.62▼
$48.43Dividend Yield0.05%
Assets Under Management$1.17 billion
EUAD is also not an especially diversified fund: it has just 23 holdings, including companies deriving a majority of their revenue from making, servicing, supplying, or distributing equipment for European military defense and aeronautics, or related industries.
Investors can expect significant allocations to major producers like Rolls-Royce Holdings OTCMKTS: RYCEY, Safran OTCMKTS: SAFRY, and Airbus Group OTCMKTS: EADSY, each of which accounts for between 17% and 21% of the overall portfolio.
The companies EUAD focuses on are all well-established, which may make the fund a good long-term buy-and-hold investment for investors concerned that, after 61% growth since launch, EUAD's biggest rally may be behind it for the time being.
A Globally-Focused Fund With Greater DiversificationThe Global X Defense Tech ETF NYSEARCA: SHLD is a much larger fund than EUAD—it has several times the managed assets and a significantly higher one-month average trading volume approaching 2 million.
Global X Defense Tech ETF Today
SHLD
Global X Defense Tech ETF
$60.56 -0.03 (-0.05%)
As of 06/23/2026 05:19 PM Eastern
52-Week Range$57.14▼
$78.49Assets Under Management$7.22 billion
Its expense ratio also matches EUAD's exactly at 0.50%. However, SHLD is certainly not as direct a means of accessing the European market in particular. While SHLD offers exposure to key European defense players—companies like Rheinmetall OTCMKTS: RNMBY and BAE Systems OTCMKTS: BAESY, among others—more than 62% of its portfolio is U.S. firms. Combined, British, German, French, and Italian companies make up about only about 20% of the total basket, although a handful of additional European nations bring that exposure up slightly.
Still, the 50 or so holdings in SHLD's portfolio have fared very well since the fund launched in the fall of 2023 and are up about 8% in the last year.
A Top-Performing Fund With an Active ApproachFor an actively managed approach, one of the few options available to investors with a global focus is the U.S. Global Technology and Aerospace & Defense ETF NYSEARCA: WAR, a fund holding some 30 defense industry names from around the globe. Like SHLD, WAR does not specifically focus on European names—however, its largest holding is Swedish defense contractor MilDef Group AB, and it also carries shares of Rolls-Royce and other prominent European companies.
U.S. Global Technology and Aerospace & Defense ETF TodayWAR
U.S. Global Technology and Aerospace & Defense ETF
$32.28 -1.60 (-4.72%)
As of 06/23/2026 05:05 PM Eastern
52-Week Range$22.40▼
$36.16Dividend Yield9.14%
Assets Under Management$40.49 million
WAR's industry purview is a bit broader than the funds above, as this ETF also holds firms involved in cybersecurity, data centers, semiconductors, and more.
Because it is actively managed, it has a slightly higher annual fee of 0.60%, as well as a much smaller asset base and trading volume than even EUAD above.
For investors primarily focused on recent performance, however, WAR stands out above these peers. The fund has returned an impressive 42% year-to-date (YTD. By comparison, one of the largest defense ETFs available to investors—the iShares U.S. Aerospace & Defense ETF BATS: ITA, with nearly $14 billion in assets under management and a focus on North American companies—has returned only 12% YTD. Investors willing to spend a bit more may be handily rewarded by WAR's strategy.
Should You Invest $1,000 in Select STOXX Europe Aerospace & Defense ETF Right Now?Before you consider Select STOXX Europe Aerospace & Defense ETF, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Select STOXX Europe Aerospace & Defense ETF wasn't on the list.
While Select STOXX Europe Aerospace & Defense ETF currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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NVIDIA Corporation is well-positioned for multi-year growth, driven by robust FQ1 results and the launch of RTX Spark for personal AI PCs. In particular, the RTX Spark AI-native PC (personal computer) reminds me of the success enjoy by Apple's iMac. Strategic collaboration with Microsoft and premium RTX architecture targets high-margin, professional users, mirroring Apple iMac's profit dominance even with only modest market share.
Key Takeaways Collins Aerospace provides avionics, navigation and communication systems across aviation platforms.RTX's connected technologies help improve aircraft efficiency, performance and situational awareness.Growing demand for digitally connected aircraft supports opportunities in commercial and defense markets. RTX Corporation (RTX - Free Report) , through its Collins Aerospace business, continues to expand its presence in connected aviation technologies that support aircraft operations, communication and data management. As airlines and aircraft operators increasingly rely on real-time information to improve efficiency and decision-making, demand remains strong for advanced avionics, connectivity and digital aviation solutions. These technologies help operators optimize flight operations while enhancing situational awareness across commercial and defense platforms.
Connected aviation has become an increasingly important part of modern aerospace operations. Collins Aerospace provides avionics, communications, navigation and data-management systems that enable aircraft to exchange critical information throughout a mission or flight. These capabilities support improved operational efficiency, aircraft performance and mission effectiveness while helping customers manage increasingly complex operating environments.
The company also benefits from its broad presence across commercial and military aircraft platforms. As fleets modernize and aircraft become more digitally connected, demand continues to grow for integrated avionics and communication systems. This positions RTX to support both new aircraft production and long-term platform upgrades across a wide range of aerospace customers.
As aviation systems become increasingly data-driven, connected technologies are expected to play a larger role in future aircraft operations. Through Collins Aerospace, RTX continues strengthening its capabilities in this area, supporting long-term opportunities across commercial aviation, defense and next-generation aerospace platforms.
Companies Expanding Connected Aviation CapabilitiesThe growing adoption of digital aviation technologies is driving investment in avionics, communications and aircraft connectivity solutions. Companies like Honeywell International Inc. (HON - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) are also expanding capabilities in this area.
Honeywell develops connected cockpit technologies, avionics systems and flight-management solutions that support aircraft communication, navigation and operational efficiency.
L3Harris Technologies provides avionics, mission networks and communication systems that enable data sharing, situational awareness and connectivity across commercial and defense aerospace platforms.
Earnings Estimates for RTXThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.86% and 8.96%, respectively.
Image Source: Zacks Investment Research
RTX Stock Trading at a DiscountRTX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.58X compared with the industry average of 2.61X.
Image Source: Zacks Investment Research
RTX Stock Price PerformanceOver the past year, RTX shares have rallied 27.3% compared with the industry’s 4% growth.
Image Source: Zacks Investment Research
RTX’s Zacks RankRTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Morgan Stanley (MS - Free Report) Founded in 1935 and incorporated under the laws of the State of Delaware in 1981, Morgan Stanley is the leading financial services holding company headquartered in New York. With 83,922 employees, the company serves a diversified group of clients and customers — including corporations, governments, financial institutions and individuals — through offices across 41 countries.
MS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. MS has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.3% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $11.87 per share. MS also boasts an average earnings surprise of +17.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MS should be on investors' short list.
Morgan Stanley preferreds MS.PR.A and MS.PR.E offer distinct risk-reward profiles amid changing rate environments and call risk. While the economic world has shifted since my last review, adding uncertainty to where interest rates are going, my ratings for both remain unchanged. MS.PR.A keeps it Sell rating due to risk of price drop if the coupon falls to the 4% floor, potentially reducing yield and capital value.
Morgan Stanley (MS - Free Report) closed the most recent trading day at $225.12, moving +1.94% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.22% for the day. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.35%.
The investment bank's stock has climbed by 16.48% in the past month, exceeding the Finance sector's gain of 5.2% and the S&P 500's gain of 1.56%.
The upcoming earnings release of Morgan Stanley will be of great interest to investors. The company's earnings report is expected on July 15, 2026. It is anticipated that the company will report an EPS of $2.73, marking a 28.17% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $18.79 billion, indicating a 11.9% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.87 per share and revenue of $77.26 billion, which would represent changes of +16.26% and +9.36%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Morgan Stanley. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% upward. Right now, Morgan Stanley possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Morgan Stanley has a Forward P/E ratio of 18.6 right now. This expresses a premium compared to the average Forward P/E of 14.79 of its industry.
It's also important to note that MS currently trades at a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.11 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
HomeMarketsPublished: June 18, 2026 at 6:08 a.m. ET
Federal Reserve Chair Kevin Warsh says he wants to listen to signals from markets more. Strategists at Morgan Stanley say markets may regret being in charge.
“If the Fed were to follow market pricing and deliver a hike this year, we think the market will eventually view this as a policy mistake,” say Morgan Stanley fixed-income strategists led by Matthew Hornbach.
About the Author
Nora Redmond is a MarketWatch reporter based in London.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Morgan Stanley (MS - Free Report) Founded in 1935 and incorporated under the laws of the State of Delaware in 1981, Morgan Stanley is the leading financial services holding company headquartered in New York. With 83,922 employees, the company serves a diversified group of clients and customers — including corporations, governments, financial institutions and individuals — through offices across 41 countries.
MS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. MS has a Momentum Style Score of A, and shares are up 13.8% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $11.87 per share. MS boasts an average earnings surprise of +17.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MS should be on investors' short list.
If the project is carried out, Morgan Stanley would join a host of other financial institutions to establish or expand operations in Texas over the last several years.
New AI-native execution platform combines CRM, service operations, fulfillment and real-time monetization to help telecom providers move from reactive operations to autonomous execution and growth
SAN FRANCISCO--(BUSINESS WIRE)--Aria Systems, the leader in AI-powered billing automation, and ServiceNow, the AI control tower for business reinvention, today announce the launch of the world's first agentic Business Support System (BSS) solution for communication services providers (CSPs).
The joint solution combines the ServiceNow AI Platform, including its CRM solution and workflow automation capabilities, with Aria’s real-time agentic billing and monetization technologies to help telecom providers replace fragmented legacy systems with a unified execution platform built for the AI era.
As CSPs face growing pressure from AI-driven service models, rising operational costs, disjointed business processes, and increasing customer expectations, many continue to operate across dozens of inflexible legacy systems that are not in sync with one another. The combined ServiceNow and Aria solution addresses these challenges by enabling providers to automate operations, streamline service delivery, and modernize monetization on a unified end-to-end cloud-native platform.
Already proven with joint major telecommunications customers across Asia Pacific, Europe, and North America, the solution supports both traditional telecom services and next-generation digital business models across both B2C and B2B lines of business, including AI-driven services, Network-as-a-Service (NaaS), wholesale fiber and digital marketplaces. The platform introduces an agentic-first operating model designed for real-time automation, autonomous workflows, and closed-loop task execution to drive impactful business outcomes and reduced customer friction.
ServiceNow CRM, spanning sales, service, fulfillment and network with AI orchestration combines natively with Aria Billing Cloud, allowing commercial intelligence to become embedded directly into customer care, operational workflows, and AI-driven processes. Aria’s newest offer, Aria Allegro™ ACE (Adaptive Charging Engine), provides a 3GPP-compliant Online Charging System (OCS) and Converged Charging System (CCS) to support real-time authorization and accounting for any industry service.
“Traditional BSS stacks were built requiring onerous manual operations and resulting actions,” said Tom Dibble, President & CEO, Aria Systems. “Our partnership and solution with ServiceNow is built for agentic autonomous operations, unifying CRM, service management, fulfillment, and monetization into a real-time lead-to-loyalty execution platform proven for agentic AI and next-generation telecom business models.”
The platform is designed to reduce cost-to-serve by up to 70% through AI-native automation, while enabling commercial teams to quickly launch new products and pricing models without relying on change requests or lengthy development cycles. Built cloud-native from the ground up, the solution can be rapidly deployed in months and targets to reduce total cost of ownership by more than 50% compared with legacy operational environments.
“Telcos have been patching together BSS point solutions for decades, and the seams are showing,” said Romit Ghose, VP & GM, Technology, Media & Telco Industry Products, ServiceNow. “Legacy BSS is the number one blocker of agentic AI deployment for CSPs. Our partnership changes that. Together we’re delivering the full agentic BSS lifecycle across sales, service and fulfillment on a single cloud-native platform that is built for what operators need to deliver today and designed for the next era of growth.”
The solution will be showcased at TM Forum’s DTW Ignite 2026. Executive briefings and product demonstrations are available by appointment. To book a session, click here.
The ServiceNow Partner Program rewards partners for their broad expertise and experience to drive opportunities, reach new markets, and deliver transformative outcomes for joint customers across the enterprise. As a Build partner, Aria Systems develops and distributes applications on the ServiceNow AI Platform, enabling enterprises to unify billing, monetization, and operational workflows within a single AI-native environment.
About Aria Systems
Aria Systems is the leading cloud-native agentic billing platform built for enterprises with complex monetization needs. Recognized by top research firms, Aria helps businesses launch new offerings faster, adapt pricing on the fly, protect revenue at scale, and turn every customer interaction into a better experience. With Aria Billing Cloud, which incorporates agentic AI to help enterprises scale productivity, and Aria Allegro™, a next generation intelligent usage monetization engine, companies like AT&T, Comcast, Liberty Latin America, Telstra, and Experian trust Aria to power the full complexity of their commercial operations. Learn more at www.ariasystems.com.
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