Track market-moving stories before they get noisy

The big banks' second-quarter results are in, and they demonstrate incredible market momentum. There was strong growth across most of their businesses, indicating a healthy economy, but the big star was market activity. Investment banking divisions had a fantastic quarter, driven by initial public offerings (IPOs) and other offerings, but consumer banking and mergers and acquisitions had robust activity, too.

JPMorgan Chase (JPM 0.31%) is the largest bank in the U.S. by assets, and it had a blowout quarter. But it's what CEO Jamie Dimon said about the market now that every investor needs to hear.

As good as it gets "It's getting close to as good as it gets," Dimon answered on the second-quarter earnings call when asked by an analyst if this is as good as it gets. The analyst, Mathew O'Connor from Deutsche Bank, noted how JPMorgan Chase is firing on all cylinders across its business. Dimon followed that up by pragmatically noting that "We just don't know how long it's going to last.

"Could it get a lot better than this? It can get better," he added later, "But how much better, I don't know."

JPMorgan Chase CEO Jamie Dimon. Image source: JPMorgan Chase.

The second-quarter results were outstanding. Here are some highlights:

Revenue increased 27% year over year. Net interest income was up 10%. Earnings per share were $7.70, up from $2.46 last year. Return on tangible common equity (ROTCE) was 29%, up from 21% last year and 23% in the first quarter. The company's commercial and investment bank (CIB) division was the standout, benefiting from robust IPO activity, including Space Exploration Technologies, of which it was a co-underwriter. According to reports, it received a $75 million payout for its services.

Investment Banking revenue was up 45% over last year, and its Equity Markets group, which is its trading arm, was up 86%. Consumer banking, though, was also healthy, with an 8% increase in revenue and 2% increase in average loans.

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The warning behind the message The implications of Dimon's message are that the bull market doesn't seem to be ending yet, but that it's going to come to an end at some point.

If your portfolio is tailored to a strong bull economy, with a large portion in high-growth and artificial intelligence (AI) stocks, you might want to start diversifying into more protective stocks. You won't be able to predict when the market reaches a high, so you'll want to be prepared in advance. JPMorgan Chase is actually a great candidate itself.

At the same time, you don't want to miss potential gains in the market. If you're a conservative investor, consider adding some lower-risk growth stocks to your portfolio or growth-focused exchange-traded funds like the Vanguard Growth ETF (VUG 1.49%), which helps reduce risk through diversification.

It is the job of Wall Street analysts to rate stocks and set price targets for them -- figures that convey the direction they believe those stocks will take over the next year or so. While these are just predictions based on earnings forecasts, many investors put faith in these price targets when considering which stocks to buy. However, in my view, one recent analyst call on a widely followed chipmaker may have been a bit overzealous.

On Tuesday, KeyBanc raised its price target on AMD (AMD 1.34%) to $725 per share. That's after a huge 140% rally this year that has lifted the stock to around $510.

Image source: The Motley Fool.

AMD's stock has gotten ahead of its business Since the AI arms race began, AMD has been behind. It's starting to catch up in some respects, but it still commands only a small fraction of the AI accelerator market, which its rival Nvidia dominates. Furthermore, AMD's business fundamentals don't jibe with its current stock price.

Right now, AMD trades for an expensive 73 times expected forward earnings.

AMD PE Ratio (Forward) data by YCharts

By comparison, Nvidia trades at a forward P/E of 23.6. That means that after this year's growth is priced in, AMD would have to triple its earnings just to be valued at the same level as Nvidia.

That premise is a bit far-fetched, and there are a few reasons why.

One assertion you'll hear AMD bulls make is that its profit margin could catch up to Nvidia's, but I don't think that's possible. Over the past 26 years, AMD has never achieved a profit margin above 27%. Nvidia's is more than 60% right now.

The difference stems from a few things. First, Nvidia's products are best in class, which gives it the ability to charge premium prices for them. Second, AMD's product focus is much wider, so it requires more resources to produce them. That will ultimately cap AMD's potential profit margin, and even if it rises to 30%, that still wouldn't be enough to make the stock reasonably valued at today's prices.

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Next year, Wall Street analysts expect AMD's revenue to grow by 56% to $77.2 billion. Assuming that AMD could boost its profit margin to a record-setting 30%, it would generate $23.2 billion in net income. AMD's current market cap is $835 billion, so under that highly optimistic hypothetical, the stock would be trading today at 36 times next year's earnings. For comparison, you can buy Nvidia's stock right now for 32 times trailing earnings.

In that light, I don't think the $725 price target is a great projection. I expect one of two things will happen with AMD's stock. It could sell off to a more reasonable valuation. Or, its valuation may stay elevated, but if it does, Nvidia's valuation will rise to a similar level because it's growing faster and has stronger execution, in which case, Nvidia will again outperform AMD.

Regardless of what happens, I think Nvidia is the far better investment, and AMD shareholders should beware of hubris in the stock.

Verizon Communications, the largest U.S. wireless carrier by subscriber count, is reportedly planning to cut about 3,000 jobs. Most of the job cuts are tied to a significant shift in the company’s retail store operations.

Here’s what you need to know about the Verizon layoffs and retail store changes.

What’s happened?On Wednesday, the Wall Street Journal reported that Verizon Communications Inc. (NYSE: VZ), is preparing to cut 3,000 workers. The majority of the job cuts are directly tied to a change Verizon has reported making to its retail store operations.

That change will see Verizon divest itself of 274 of its retail stores. The divestiture will result in the retail stores being transferred to franchise owners. After the divestiture, Verizon would still have about 1,000 company-operated retail stores.

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The WSJ reported that most of the job cuts, about 2,500 of them, will be due to the retail store divestiture. However, about 500 layoffs will impact employees on the corporate side.

It is not known which retail stores Verizon will divest. Reached for comment by Fast Company, a spokesperson for Verizon said 70% of impacted employees “typically end up working for the new franchise locations.”

“Ninety-three percent of the US population will continue to be within a 30-minute drive of a Verizon store,” a Verizon spokesperson said. “These changes, effective August 16, impact roughly 3000 employees, including those impacted in the corporate stores.”

Explore TopicslayoffsRetailVerizon

McDonald’s Corporation (NYSE:MCD – Get Free Report) shares reached a new 52-week low during trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $320.00 to $300.00. Wells Fargo & Company currently has an overweight rating on the stock. McDonald’s traded as low as $264.09 and last traded at $264.8750, with a volume of 3660290 shares traded. The stock had previously closed at $268.94.

MCD has been the topic of a number of other reports. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and upped their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Erste Group Bank cut McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. BTIG Research reissued a “buy” rating and set a $370.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Robert W. Baird set a $305.00 target price on McDonald’s in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price target on McDonald’s in a report on Thursday, July 9th. Fifteen investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $335.58.

Check Out Our Latest Stock Analysis on McDonald’s

Insider Transactions at McDonald’s In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,681 shares of company stock worth $2,456,440 over the last three months. 0.26% of the stock is currently owned by corporate insiders.

McDonald’s News Summary Here are the key news stories impacting McDonald’s this week:

Positive Sentiment: McDonald’s is rolling out new limited-time items, including Caesar sauce, new chicken offerings, and other menu tests, which could help boost customer interest and restaurant traffic. McDonald’s builds its new menu around a flavor it never sold Positive Sentiment: Analysts continue to view McDonald’s as a strong defensive restaurant name, with commentary pointing to customer engagement, value messaging, and marketing campaigns as potential supports for sales. Can McDonald’s Global Marketing Strategy Drive Customer Traffic? Positive Sentiment: One Wall Street note kept a Buy rating on MCD even while trimming its price target, suggesting analysts still see upside from current levels. Citigroup price target change Neutral Sentiment: McDonald’s is drawing extra attention from investors and traders, with recent coverage framing the stock as a valuation and defensive-name debate rather than a clear new catalyst. MCD at $268, Starbucks at $106: Buy, Sell or Hold? Negative Sentiment: Several articles focus on ongoing “McProblem” issues, including concerns that McDonald’s traffic and business momentum have not improved enough, which may be reinforcing investor worries about the core growth outlook. McDonald’s has a McProblem that’s not getting better Negative Sentiment: Another report says McDonald’s stock is near its lowest levels in almost two years, highlighting pressure from weaker sentiment and a more cautious view of the company’s growth. Why McDonald’s stock is at nearly 2-year lows Hedge Funds Weigh In On McDonald’s Several hedge funds have recently bought and sold shares of MCD. Norges Bank bought a new position in shares of McDonald’s in the fourth quarter worth about $2,890,438,000. Diamant Asset Management Inc. increased its stake in McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after buying an additional 2,587,986 shares during the period. J. Stern & Co. LLP lifted its holdings in McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after buying an additional 2,515,515 shares in the last quarter. Viking Global Investors LP lifted its holdings in McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after buying an additional 1,974,998 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in McDonald’s by 49.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after buying an additional 1,033,041 shares during the period. Institutional investors own 70.29% of the company’s stock.

McDonald’s Trading Up 3.2% The company has a market capitalization of $194.24 billion, a PE ratio of 22.54, a PEG ratio of 2.75 and a beta of 0.41. The firm’s 50-day simple moving average is $277.23 and its 200-day simple moving average is $300.56.

McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the company posted $2.67 earnings per share. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, analysts anticipate that McDonald’s Corporation will post 12.9 EPS for the current year.

McDonald’s Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio is 61.34%.

McDonald’s Company Profile (Get Free Report)

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.

Further Reading Five stocks we like better than McDonald’s Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street Revving Up Returns: Big Banks Race Through the Rate Plateau Why Uber’s Biggest Deal Yet Could Unlock Its Next Growth Phase Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Receive News & Ratings for McDonald's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McDonald's and related companies with MarketBeat.com's FREE daily email newsletter.

Shares of popular digital payments platform, PayPal (PYPL +0.25%), soared 23% this week (as of noon ET on Friday) after payments peer Stripe and private equity firm Advent International offered to buy the company for $60.50 per share. After months of speculation that a union between the companies might be in the works, the market finally has a tangible offer price to digest.

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However, while shares have soared on the potential deal, it seems to be far from a "lock" to reach the finish line. Reuters reported that PayPal's board -- according to a person familiar with the matter -- believes the deal undervalues the company's long-term potential as it executes upon its turnaround strategy. The company's board is not alone in this thinking.

Image source: The Motley Fool.

Famed investor Michael Burry, the focus of "The Big Short" for his bet against the housing market, believes the deal greatly undervalues PayPal. Using his intrinsic value methodology, Burry believes PayPal is worth closer to $110 or $115 -- roughly 80% higher than this week's $60.50 offer. With PayPal trading at just 10.5 times earnings -- even after this week's rise -- I would tend to agree and intend to hold my shares until we see what finally happens.

Ultimately, PayPal's growth story is in the rearview mirror, but the market's pricing on the stock already accounts for that, in my opinion. I believe this is especially true when you consider PayPal's businesses from a "sum-of-the-parts" perspective. PayPal's businesses include its namesake payment processing, its white-label Braintree operations, its growing suite of financial services, and its crown jewel, Venmo, a peer-to-peer payments app with nearly 100 million users. Whereas PayPal as a whole isn't a growth story anymore, Venmo has grown total payment volume by double-digits for six straight quarters and would undoubtedly be appealing to Stripe.

Time will tell whether higher offers come in for PayPal's shares, but I'm happy to keep holding in the meantime, as I view PYPL shares as undervalued enough to hold right now -- though a declined offer could weigh on shares.

Josh Kohn-Lindquist has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Intel (INTC - Free Report) . This company, which is in the Zacks Semiconductor - General industry, shows potential for another earnings beat.

When looking at the last two reports, this world's largest chipmaker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 1,443.75%, on average, in the last two quarters.

For the last reported quarter, Intel came out with earnings of $0.29 per share versus the Zacks Consensus Estimate of $0.01 per share, representing a surprise of 2,800.00%. For the previous quarter, the company was expected to post earnings of $0.08 per share and it actually produced earnings of $0.15 per share, delivering a surprise of 87.50%.

With this earnings history in mind, recent estimates have been moving higher for Intel. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Intel has an Earnings ESP of +5.18% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 23, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

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SummaryAdobe remains a Strong Buy as its valuation is deeply discounted despite robust growth and strategic AI-driven expansion.ADBE's freemium funnel surged to 90MM MAU, with AI-native ARR tripling year-over-year and Firefly ARR nearing $300MM, reflecting rapid adoption.Valuation is compelling: P/E Non-GAAP at 9.84, EV/EBITDA at 9.32, and FCF yield above 11%, with a $25B buyback underway.Risks include CEO/CFO departures and intensifying competition, but deliberate ARR deferrals and aggressive AI integration support long-term upside. JHVEPhoto/iStock Editorial via Getty Images

Introduction Adobe (ADBE) has gained over 10% since my last Strong Buy rating on the firm, as I argued that the stock was incredibly cheap following a strong double beat and a raised

3.57K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADBE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Travelers Companies Inc (NYSE:TRV) shares rose more than 8% on Friday after the insurer reported second-quarter earnings that significantly exceeded Wall Street expectations, helped by lower catastrophe losses, higher investment income and strong underwriting performance.

The company posted adjusted core earnings of $10.04 per diluted share for the quarter ended June 30, comfortably ahead of the consensus estimate of about $5.39.

Revenue came in at $12.15 billion, broadly in line with analyst expectations.

Net income increased to $2.21 billion, or $10.26 per diluted share, from $1.51 billion, or $6.53 per diluted share, a year earlier. Core income rose to $2.16 billion from $1.50 billion in the prior-year quarter.

Travelers reported a consolidated combined ratio of 83.6%, improving from 90.3% a year earlier and substantially better than analysts had anticipated. The result reflected lower catastrophe losses, which fell to $518 million pre-tax from $927 million a year ago, as well as higher favorable prior-year reserve development and stronger underlying underwriting results.

Net investment income increased 14% year over year to $883 million after tax.

Net written premiums were $11.53 billion, essentially unchanged from the prior-year period, while total revenue edged up to $12.15 billion from $12.12 billion.

During the quarter, Travelers returned $1.58 billion of capital to shareholders, including $1.31 billion through share repurchases.

Travelers CEO Alan Schnitzer said the company delivered strong underwriting and investment performance across its businesses.

"We are pleased to report excellent second quarter results with very strong underwriting performance across all three segments and a terrific result from our investment portfolio," Schnitzer said in a statement.

He added that the company's underwriting income benefited from continued strong underlying profitability and favorable reserve development, while its investment portfolio generated a 14% increase in after-tax net investment income.

U.S. stocks traded lower midway through trading, with the Nasdaq Composite falling more than 200 points on Friday.

The Dow traded down 0.28% to 52,407.20 while the NASDAQ dipped 0.80% to 25,674.10. The S&P 500 also fell, dropping, 0.51% to 7,495.26.

Leading and Lagging Sectors

Energy shares jumped by 1.4% on Friday.

In trading on Friday, communication services stocks fell by 3.1%.

Top Headline

Travelers Companies (NYSE:TRV) reported better-than-expected second-quarter financial results.

Travelers reported quarterly earnings of $10.04 per share which beat the analyst consensus estimate of $5.38 per share. The company reported quarterly sales of $12.153 billion which beat the analyst consensus estimate of $11.346 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 4% to $82.06 while gold traded up 0.7% at $4,019.40.

Silver traded down 0.1% to $56.17 on Friday, while copper fell 1.4% to $6.2530.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.5%, while Spain’s IBEX 35 Index fell 0.5% London’s FTSE 100 rose 0.2%, Germany’s DAX declined 0.5%, while France’s CAC 40 dipped 0.5%.

Asia Pacific Markets

Asian markets closed mostly lower on Friday, with Japan’s Nikkei 225 dipping 4.03%, Hong Kong’s Hang Seng index falling 1.78%, China’s Shanghai Composite dipping 3.05% and India’s BSE Sensex gaining 1.25%.

Economics

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As of noon ET, the Nasdaq Composite (^IXIC 1.33%) is down 1.06% to 25,607.34, the S&P 500 (^GSPC 1.00%) has fallen 0.57% to 7,491.11, and the Dow Jones Industrial Average (^DJI 0.68%) is trading down 0.08% to 52,511.32 as a deepening semiconductor sell-off and escalating geopolitical tensions weigh on high-growth leadership.

Gold prices have risen 0.78% to $4,019.01 as of midday ET, and the 10-Year Treasury yield is down 0.03% to 4.54%. Energy and real estate are this morning’s leading sectors, while communications stocks and industrials are sinking.

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Today's biggest movesHigh-growth technology shares are under broad pressure, with Nvidia (NVDA 1.96%) and International Business Machines (IBM 3.58%) both dropping this morning. Netflix (NFLX 6.81%) shares tumbled over 7% after the streaming giant issued disappointing forward-looking guidance. Coca-Cola (KO 4.14%) slipped on reports of a ransomware cyberattack at its Fairlife milk company.

What this means for investorsThe global sell-off in semiconductor shares appears to be deepening, fueled by uncertainty about whether spending on artificial intelligence (AI) infrastructure is sustainable and questions about when these significant outlays will start to generate revenue. Meanwhile, oil prices continued to rise amid escalating tensions in the Middle East. WTI crude gained 3.7% to $81.88 a barrel, further destabilizing markets.

Today’s news that Chinese AI start-up Moonshot has released a new model that can compete with many OpenAI and Anthropic models added to investor unease. The Kimi K3 launch shows how quickly China’s AI capabilities are developing and puts pressure on U.S. tech heavyweights.  For investors, the type of volatility we’ve seen this week can be unsettling, but try not to make hasty moves and keep a long-term focus.

Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends International Business Machines, Netflix, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways Merck won FDA approval for Lipfendra, the first oral PCSK9 inhibitor to lower LDL cholesterol.MRK said phase III studies showed Lipfendra cut LDL cholesterol by 56% and 59% versus placebo.Merck plans to launch Lipfendra at a $315 monthly list price in the coming weeks. Shares of Merck (MRK - Free Report) rose more than 3% on Thursday after the company announced that the FDA approved enlicitide as the first oral PCSK9 inhibitor to reduce low-density lipoprotein cholesterol (LDL-C, or bad cholesterol) in adults with hypercholesterolemia (high cholesterol). The drug will be marketed under the brand name Lipfendra.

The agency’s approval also covers patients with heterozygous familial hypercholesterolemia (HeFH), an inherited condition in which a person receives a mutated gene associated with high cholesterol from one parent.

The approval is supported by data from two phase III studies, CORALreef Lipids and CORALreef HeFH, which evaluated a 20 mg once-daily dose of the drug over 24 weeks. While data from the CORALreef Lipids study showed that Lipfendra reduced LDL-C by 56% versus placebo in patients with hypercholesterolemia, the CORALreef HeFH study demonstrated a 59% reduction compared to placebo in HeFH patients.

The drug is expected to launch in the coming weeks at a list price of $315 per month, significantly lower than the list prices of currently available PCSK9 injectables, including Amgen’s (AMGN - Free Report) Repatha and Novartis’ (NVS - Free Report) Leqvio. This competitive pricing was not unexpected, as Merck had previously indicated that it intended to position Lipfendra as an affordable treatment under its agreement with the U.S. government to expand access to medicines and lower costs for citizens. Although the drug's commercial success will ultimately depend on Merck's net pricing strategy and payer adoption, its oral formulation could provide a meaningful competitive advantage over injectable PCSK9 therapies.

MRK’s Stock PerformanceYear to date, the company’s shares have risen 21% compared with the industry’s 9% growth.

Image Source: Zacks Investment Research

More on Merck’s LipfendraThe drug is currently being evaluated in a late-stage cardiovascular outcomes study to determine whether it can reduce the risk of major adverse cardiovascular events, as well as cardiovascular morbidity and mortality.

Lipfendra could become an important long-term growth driver for Merck. As the first once-daily oral PCSK9 inhibitor, the drug has the potential to expand the use of this class by offering a convenient alternative to injectable therapies, potentially improving patient uptake and adherence. If successful, Lipfendra could emerge as a meaningful revenue contributor and help diversify Merck's growth drivers as the company prepares for the loss of exclusivity for its blockbuster cancer therapy, Keytruda, later this decade.

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

Key Takeaways Caterpillar posted strong Q1 2026 revenue and EPS growth despite significant tariff-related costs.CAT targets 6-9% revenue CAGR through 2030, backed by infrastructure, mining and automation demand.Volvo is advancing electrification and expansion, but earnings estimates have weakened and costs remain high. Caterpillar Inc. (CAT - Free Report) and Volvo (VLVLY - Free Report) are global leaders in the heavy machinery and construction equipment industry, offering a wide range of products, including trucks, excavators and industrial engines. Both companies are also investing heavily in electrification, automation and digital technologies to position themselves for the next phase of infrastructure and transportation growth.

Caterpillar commands a market capitalization of roughly $404 billion, significantly larger than Volvo's $72 billion. As industry bellwethers, their performance often reflects broader trends in global manufacturing, mining and infrastructure spending. But which stock looks more compelling for investors today? Let's compare their fundamentals, growth outlook and valuation.

The Case for CaterpillarCaterpillar is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

The company has reported revenue growth in each of the past three quarters and earnings growth over the past two. In the first quarter of 2026, revenues increased 22% year over year to approximately $17.4 billion, driven by higher sales volumes across all business segments. Backlog reached a record $63 billion. Adjusted earnings per share jumped 30.4% to $5.54, a sharp acceleration from the modest 0.4% growth recorded in fourth-quarter 2025. The results were particularly impressive considering the estimated $600 million tariff-related headwind during the quarter.

For 2026, Caterpillar expects revenue growth in the low double digits compared with 2025. Adjusted operating margin is, however, projected toward the lower end of its range, due to continued tariff pressures, which are expected to create a full-year headwind of approximately $2.2-$2.4 billion.

At an annual revenue base of roughly $60 billion, Caterpillar expects adjusted operating margins between 15% and 19%. If revenues reach $72 billion, margins could improve to 18-22%, while a stronger scenario with $100 billion in revenues could support margins of 21-25%.

Caterpillar is targeting a revenue CAGR of 6-9% through 2030. Key growth catalysts include U.S. infrastructure spending, mining demand tied to the energy transition, increased automation adoption and expanding investments in data centers and sustainability initiatives. Caterpillar recently strengthened its mining technology capabilities by acquiring Skycatch, Inc., a provider of spatial data capture, processing and analytics solutions for the mining industry. 

Management aims to increase Construction Industries sales to users by 25% from 2024 levels by 2030, triple the number of autonomous trucks operating in Resource Industries and expand Power Generation sales to more than three times their current level. 

Connected assets are expected to rise from more than 1.6 million to 2 million, while e-commerce sales per business day are projected to jump from 4% to more than 50% by 2030. Services revenues are targeted to rise from $24 billion in 2025 to $30 billion by 2030.

Caterpillar’s growth is expected to be driven by U.S. infrastructure spending, mining demand linked to energy transition, automation adoption and rising data center and sustainability-related investments.

The Case for VolvoVolvo is one of the leading manufacturers of trucks, buses and construction equipment, as well as marine and industrial engines. Its subsidiary, Volvo Construction Equipment (Volvo CE), produces a wide range of machinery for the construction, extraction, waste processing and materials handling sectors. It manufactures haulers, wheel loaders, excavators, road construction machines and compact equipment.

Volvo Group’s net sales were up 3% in the recently reported second quarter of fiscal 2026 to SEK 126.3 billion ($13.1 billion). The Group has returned to revenue growth after nine quarters of declines. Organic sales growth was 7%.  

Adjusted operating income rose 10% year over year to SEK 14.8 billion, lifting adjusted operating margin to 11.7% from 11.0% in the year-ago quarter. Strong service revenues, favorable product mix and lower net R&D expenses more than offset higher U.S. tariff costs along with rising freight and material expenses.  Vehicle sales grew 6% and service sales 7% organically. Deliveries of new trucks increased 6%.

Earnings per share grew 40% to SEK 5.10 (53 cents) in the second quarter. This marks an improvement from the 16% decline witnessed in the first quarter. 

Volvo CE, however, reported net sales decline of 6% to SEK 21.6 billion ($2.24 billion), largely due to the divestment of SDLG in September 2025. Organic sales growth was reported at 13%, of which net sales of machines increased 14% and service sales increased 9%

Total deliveries fell 48% because of the SDLG divestment, although deliveries under the Volvo brand increased 14%. Growth was led by North and South America, Europe and Asia, partly offset by weaker demand in Africa and Oceania. North America remained resilient, supported by investments in data centers, energy infrastructure and reshoring of manufacturing. South America benefited from stronger mining and infrastructure activity, while Europe saw healthy replacement demand and ongoing infrastructure investment.

Adjusted operating income at Volvo CE increased 4% to SEK 3.1 billion ($320 million), while adjusted operating margin improved to 14.4% from 13.1%. Better product mix and stronger service performance more than offset lower volumes and tariff-related costs. In the first quarter, adjusted operating income had dipped 2% owing to the impact of tariffs.

Strategically, Volvo continues to invest in innovation and capacity expansion. Volvo CE has delivered the world's first electric articulated haulers, Volvo A30 Electric, to LNS in Norway for use on a hydropower project, marking a key milestone in the electrification of heavy equipment.

Volvo CE recently began construction of its new crawler excavator assembly factory in Eskilstuna. The 30,000-square-meter plant, expected to be completed in 2028, will expand production capacity to meet growing European demand. The move is also in sync with Volvo CE’s goals to solidify its position in the key excavator market.  Volvo CE completed its acquisition of Swecon in January 2026, strengthening its retail and service presence across Sweden, Germany and the Baltic region. The company also divested its loss-making Rokbak business to sharpen its focus on its core hauling solutions. 

While these initiatives position Volvo for long-term growth, near-term performance remains impacted by higher costs owing to tariffs, restructuring actions and weakness in some regions.

How do Estimates Compare for CAT & VLVLY?The Zacks Consensus Estimate for Caterpillar’s 2026 earnings is $24.86 per share, indicating year-over-year growth of 30.4%. The estimate for 2027 of $31.11 suggests a rise of 25.1%. 

The consensus estimate for Volvo’s 2026 earnings is $2.19 per share, indicating year-over-year growth of 26.6%. The 2027 estimate of $2.70 implies growth of 23.1%.

Image Source: Zacks Investment Research

EPS estimates for Caterpillar for both 2026 and 2027 have been trending north over the past 60 days. The estimates for Volvo for both years have moved down over the past 60 days. 

Image Source: Zacks Investment Research

Caterpillar & Volvo: Price Performance, Valuation & Other ComparisonsIn a year, CAT stock has surged 112.1%, whereas VLVLY has gained 32.6%.

Image Source: Zacks Investment Research

Caterpillar is currently trading at a forward 12-month earnings multiple of 31.27X. Volvo’s stock is trading at a forward 12-month earnings multiple of 13.93X.

Image Source: Zacks Investment Research

CAT’s return on equity of 48.21% is way higher than VLVLY’s 22.17%. This reflects Caterpillar’s efficient use of shareholder funds in generating profits.

Image Source: Zacks Investment Research

CAT or VLVLY: Which Stock is Better for Your Portfolio?Both Caterpillar and Volvo offer investors exposure to long-term infrastructure, mining and industrial equipment demand. However, Caterpillar stands out for its scale, consistent performance, strong backlog and improving earnings outlook, even as it navigates cost pressures. Volvo is making meaningful progress through electrification, acquisitions and capacity expansion, but its construction equipment business continues to face revenue pressure and analysts have become more cautious about its earnings outlook.

Despite a higher valuation, Caterpillar's stronger execution, superior returns on equity and improving earnings estimates make it a better investment opportunity at present.  Caterpillar currently carries a Zacks Rank #3 (Hold) while Volvo carries a Zacks Rank #4 (Sell). 

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

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SummaryOracle Corporation faces heightened risks as its AI infrastructure buildout is heavily tied to OpenAI's success, now lagging Anthropic in model leadership and IPO momentum.ORCL's aggressive AI CapEx has significantly pressured free cash flow margins, increased debt, and triggered a credit downgrade to BBB-.Despite steep execution risks and market fear, ORCL trades at 15.4x forward earnings, well below its five-year average, suggesting the sell-off may be overdone.With compute constraints persisting and a potential double bottom forming, this could be an opportune entry for investors willing to bet on margin recovery.If you have been waiting for an opportunity to get into ORCL, it might be time to finally endure the pain and catch the falling knives well before the turnaround begins.Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More » Mesut Dogan/iStock Editorial via Getty Images

Oracle is getting caught up in an incredible selloff again It must have been a torrid two months for Oracle Corporation (ORCL) investors as they continue to endure another market selloff. Thankfully, as I

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Wells Fargo (WFC - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

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

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

As such, the Zacks rating upgrade for Wells Fargo is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

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

For Wells Fargo, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

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

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

Earnings Estimate Revisions for Wells FargoFor the fiscal year ending December 2026, this bank is expected to earn $7.14 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Wells Fargo. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.4%.

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

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

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

The US government has moved millions in Ethereum from seized crypto wallets tied to a major exchange collapse straight into a leading institutional trading platform.

Officials transferred roughly 4,820 ETH worth about $9.29 million at time of publishing, from FTX and Alameda Research-linked addresses to Coinbase Prime.

The blockchain analytics firm Arkham Intelligence first spotted the transaction.

“ALERT: The US Government has just moved another $9M ETH seized from FTX/Alameda.

The US Government just deposited $9.29M ETH to Coinbase Prime. Will they be selling this, or returning it to creditors?”

The deposit adds to previous government sales of confiscated digital assets recovered from the failed exchange amid the continued liquidation of assets seized from FTX bankruptcy proceedings.

Generated Image: Midjourney

THE BLOCK: FTX to distribute roughly $900 million to creditors in fifth wave of payouts

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Posted by _ _xnake on Jul 17th, 2026

SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and Xinyi Solar (OTCMKTS:XNYIF – Get Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Valuation & Earnings This table compares SolarEdge Technologies and Xinyi Solar”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio SolarEdge Technologies $1.18 billion 2.69 -$405.45 million ($6.13) -8.54 Xinyi Solar N/A N/A N/A N/A N/A Xinyi Solar has lower revenue, but higher earnings than SolarEdge Technologies.

Institutional and Insider Ownership 95.1% of SolarEdge Technologies shares are held by institutional investors. 1.0% of SolarEdge Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability This table compares SolarEdge Technologies and Xinyi Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets SolarEdge Technologies -28.56% -38.66% -7.72% Xinyi Solar N/A N/A N/A Analyst Recommendations This is a summary of current ratings for SolarEdge Technologies and Xinyi Solar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score SolarEdge Technologies 6 13 1 0 1.75 Xinyi Solar 0 0 0 0 0.00 SolarEdge Technologies currently has a consensus target price of $38.69, suggesting a potential downside of 26.08%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe SolarEdge Technologies is more favorable than Xinyi Solar.

Summary SolarEdge Technologies beats Xinyi Solar on 6 of the 9 factors compared between the two stocks.

About SolarEdge Technologies (Get Free Report)

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.

About Xinyi Solar (Get Free Report)

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People's Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers ultra-clear patterned solar glasses, back glasses, and anti-reflective coating solar glasses to photovoltaic module manufacturers. It also develops, operates, and manages solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2006 and is headquartered in Wuhu, the People's Republic of China.

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Micron Technology (MU +3.05%) has delivered stellar returns to investors over the year, with its shares rising by an incredible 633% over this period. However, the memory specialist has seen a steep 30% pullback from the 52-week high it reached last month.

This drop in Micron stock seems quite surprising. After all, the company delivered blowout results just last month that should ideally have supercharged the stock. However, investors have been rotating out of memory stocks lately, as evidenced by the 23% drop in the Roundhill Memory ETF over the past month.

Savvy investors, however, should consider buying Micron following its recent pullback as it could become a long-term winner. Let's see why.

Image source: Micron Technology.

Micron will continue benefiting from the rapidly growing memory chip demand Memory is essential for compute and storage in artificial intelligence (AI) data centers, computers, smartphones, vehicles, and other applications. AI, in particular, has supercharged the demand for this commodity.

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Compute memory, known as dynamic random-access memory (DRAM), is being deployed extensively to transport enormous data sets in AI data centers and chip clusters. Similarly, storage-oriented NAND flash is also experiencing strong demand to store the massive amounts of data needed for AI model training and inference.

However, there isn't enough supply available to meet the booming demand. According to Micron peer SK Hynix, the memory supply crunch will worsen in 2027. Moreover, the South Korean giant projects that memory demand will continue to exceed supply even after 2030. Clearly, AI has brought about a structural change in the memory industry that will ensure manufacturers like Micron deliver reliable, consistent long-term growth.

That's precisely why it seems like a good time to buy this semiconductor stock following its recent drop.

The stock can make investors significantly richer over the long run The undersupplied memory market gives Micron an upper hand in setting the price of its chips. It is well known that memory chip prices have jumped significantly in the past couple of years, and the continued shortage should ensure that the strong pricing environment persists. As a result, Micron's rapid earnings growth won't slow down.

Data by YCharts

Micron is currently in its final quarter of fiscal 2026. Analysts are forecasting a 785% jump in earnings per share this fiscal year to $73.37. Its earnings are projected to more than double in the next fiscal year, followed by a slower increase in fiscal 2028.

Data by YCharts

Analysts are predicting a much smaller increase of 9% in Micron's earnings in fiscal 2028, as seen in the above chart. Of course, there is enough evidence to suggest that Micron could do better than that, fueled by the memory chip shortage expected to last a long time. But even if Micron clocks just 10% in earnings growth in fiscal years 2029 and 2030, its bottom line could jump to $198.26 per share in four years.

Even if Micron trades at just 10 times earnings at that time, a significant discount to the S&P 500 index's earnings multiple of 25.6, its stock price would go up to nearly $2,000 over the long run. That's more than double the current stock price. What's worth noting is that I have assumed extremely low earnings growth for Micron beyond the next fiscal year, which is why I expect it to trade at a discounted valuation in 2030.

This means Micron could reliably deliver solid long-term upside, which is why it is worth buying the stock hand over fist before it goes on a bull run.

HomeStock IdeasLong IdeasTech 

SummaryMicron Technology, Inc. has seen a massive selloff, with shares now under $850, presenting a completely different risk-reward profile versus a month ago.Recent price declines are attributed to technical factors, including leveraged ETFs and sector rotation, rather than fundamental weakness in MU’s business.Growth outlook remains robust: Q3 revenue surged 73.7% sequentially to $41.46 billion, with gross margins at 84.9% and EPS expected to ramp further.MU’s backlog extends six quarters+, demand is unprecedented, and consensus FY27 EPS of $150 implies a forward multiple of just 5.6x.Looking for more investing ideas like this one? Get them exclusively at BAD BEAT Investing. Learn More » solarseven/iStock via Getty Images

We last covered Micron Technology, Inc. (MU), where we discussed fiscal Q3 earnings. We assigned a Hold rating at the time of publication, when shares were then pushing over $1200 after the earnings.

But a

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Occidental expects the Permian Basin to generate more than 56% of its total output in 2026.A $3.1 billion Permian investment supports plans to drill 460 to 510 wells by year-end.Enhanced oil recovery is expected to produce more than 100,000 barrels of oil equivalent per day. Occidental Petroleum Corporation (OXY - Free Report) is a leading operator in the Permian Basin, a key driver of its U.S. oil and gas production. The CrownRock L.P. acquisition has expanded its operations in the region, which is expected to generate more than 56% of the company's total output in 2026.

Occidental plans to invest $3.1 billion in the Permian throughout 2026 to upgrade and expand operations. The company aims to drill 460 to 510 wells by year-end. Occidental controls 1.4 million acres in unconventional areas and 1.4 million acres in conventional zones in the Permian Basin, underscoring its strong regional presence.

Operational efficiency remains a key focus for Occidental. The company projects to drill many wells in the Permian Basin region this year and a 7% expected drop in average well costs in 2026 compared with 2025 will be beneficial. These improvements stem from enhanced well designs, consistent scheduling and technology upgrades that streamline development.

Courtesy of its operational efficiency and usage of new technology, Occidental will be able to generate more oil from the reserve. Through the Enhanced Oil Recovery technique, the company is expected to produce more than 100,000 barrels of oil equivalent per day, boosting its overall production volumes.

With nearly a decade of high-return inventory in the Permian Basin, Occidental is well positioned for sustained growth. Ongoing technological advancements are improving drilling efficiency, increasing production, minimizing environmental impact and unlocking additional resources, driving long-term value creation.

Permian Basin Reserves Support Long-Term Value CreationThe Permian Basin's abundant, low-cost reserves offer oil and gas producers long-term production visibility, robust margins and strong cash flow generation. Its vast resource base and operational efficiencies continue to drive sustainable earnings growth and shareholder value.

Devon Energy's (DVN - Free Report) high-quality Permian Basin assets enable low-cost production, strong cash flow generation and long-term reserve growth. Efficient operations, disciplined capital spending and cash flow support Devon Energy's sustainable earnings growth.

Diamondback Energy's (FANG - Free Report) premium Permian Basin acreage drives low-cost, high-margin production and long-term growth. Backed by operational efficiency, disciplined capital investments and strategic expansion, Diamondback Energy is well-positioned to benefit from the basin's long-term growth potential.

The Zacks Rundown on OXYReturn on equity (“ROE”) is a key indicator of a company’s financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency.

Occidental’s ROE is lower than the industry average in the trailing 12 months. ROE of OXY is 9.65% compared with the industry average of 10.94%.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Occidental’s 2026 and 2027 earnings per share indicates an increase of 10.12% and 4.53%, respectively, in the past 60 days.
 

Image Source: Zacks Investment Research

Occidental’s shares have gained 25.6% in the past six months compared with the Zacks Oil and Gas-Integrated-United States industry’s rise of 16.3%.

Image Source: Zacks Investment Research

OXY’s Zacks Rank

Friday morning started on a bearish note. The Nasdaq Composite (^IXIC 1.24%) was down 1.1% as of 12:21 p.m. ET after dipping as much as 2.2% around 10 a.m. ET, capping a week that chip stock investors would probably like to forget. The S&P 500 (^GSPC 0.97%) fell 0.7%, while the Dow Jones Industrial Average (^DJI 0.67%) held its losses to just 0.3%, thanks largely to an insurance company having a very good quarter.

For the week, the Dow is nearly flat with a 0.4% drop. The S&P 500 is down 1.1%, and the Nasdaq has dropped 2.5%. If you owned an equal-weighted index fund, you barely noticed. If you owned the mega-cap tech darlings, it's been a painful week.

^DJI data by YCharts

From the Korean crash to a Friday fall Let's start with a quick recap of the week.

It began with a historic crash in South Korean markets that triggered circuit breakers and sent the recently U.S.-listed SK Hynix (SKHY +5.97%) stock tumbling. Tuesday brought IBM's (IBM 3.48%) worst day since 1987 after the company admitted customers were redirecting software budgets toward hardware purchases. Wednesday's encouraging inflation data sparked a morning rally that faded by midday. Thursday's sell-off accelerated after Taiwan Semiconductor Manufacturing (TSM 2.88%) raised its capital expenditure forecast to as much as $64 billion, stoking fears that AI infrastructure spending is becoming unsustainable. There's plenty of drama in Friday's session, too.

Alphabet (GOOG 2.79%) (GOOGL 2.71%) fell 2.2% today, its third straight decline after reports that its Gemini AI model is running months behind schedule. Meta Platforms (META 2.54%) dropped 2.9% as investors digested an employee lawsuit over AI-assisted layoffs and continued to worry about the company's $125 billion to $145 billion spending plans.

Space Exploration Technologies (SPCX 4.48%) tumbled 5%, now trading around $125 after going public at $135 just weeks ago. A lockup expiration looms after the company's first earnings report, potentially flooding the market with nearly a billion additional shares.

Netflix (NFLX 6.86%) dropped 8.5% after delivering results that met expectations but apparently weren't exciting enough. The company also said it would publish its engagement reports less frequently, which investors interpreted as "we'd rather you not look too closely." Most streamers never issue detailed viewing reports at all, but it's still hard to overlook a sparser reporting schedule.

Image source: Getty Images.

The Dow's savior was Travelers (TRV +8.10%), which jumped 7.9% after posting earnings of $10.26 per share. That's nearly double what analysts expected. UnitedHealth Group (UNH +2.60%) added 2.2%, continuing its bounce from earlier weakness.

Oil prices surged 3.6% as the U.S.-Iran conflict showed no signs of cooling. The U.S. completed its sixth consecutive night of strikes, Iran expanded attacks to Syria and Bahrain, and reports emerged that Tehran has asked Houthi allies to close the Red Sea if Washington targets Iranian power plants.

In the day's strangest reversal, SK Hynix swung from down 6.7% to up 7.1% -- a 13-percentage-point round trip that captures the week's mood perfectly.

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Stepping Back This week, investors started asking uncomfortable questions about AI spending. Strong earnings from banks and insurers couldn't offset the anxiety around chip stocks and mega-cap tech.

The Dow's resilience is cold comfort if your portfolio is heavy on Nvidia, Alphabet, and SpaceX. The AI investment thesis hasn't changed, but the market is demanding more evidence that the spending will pay off.

It's a familiar lesson for long-term investors. Volatility is the cost of owning growth stocks.

Anders Bylund has positions in Alphabet, International Business Machines, Netflix, and UnitedHealth Group. The Motley Fool has positions in and recommends Alphabet, International Business Machines, Meta Platforms, Netflix, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

Posted by _ _xnake on Jul 17th, 2026

Abbott Laboratories (NYSE:ABT – Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $89.27, but opened at $95.29. Abbott Laboratories shares last traded at $100.4150, with a volume of 6,088,884 shares changing hands.

The healthcare product maker reported $1.31 earnings per share for the quarter, beating the consensus estimate of $1.28 by $0.03. Abbott Laboratories had a net margin of 13.90% and a return on equity of 17.62%. The firm had revenue of $12.51 billion for the quarter, compared to analysts’ expectations of $12.52 billion. During the same quarter last year, the company posted $1.26 EPS. The business’s quarterly revenue was up 13.0% on a year-over-year basis. Abbott Laboratories has set its Q3 2026 guidance at 1.380-1.46 EPS and its FY 2026 guidance at 5.450-5.60 EPS.

Abbott Laboratories Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Wednesday, July 15th will be given a dividend of $0.63 per share. The ex-dividend date is Wednesday, July 15th. This represents a $2.52 dividend on an annualized basis and a yield of 2.6%. Abbott Laboratories’s dividend payout ratio (DPR) is presently 70.59%.

Key Abbott Laboratories News Here are the key news stories impacting Abbott Laboratories this week:

Positive Sentiment: Abbott beat Q2 expectations with adjusted EPS of $1.31 versus $1.28 expected, showing better-than-expected profitability. Abbott Reports Second-Quarter 2026 Results and Raises Full-Year EPS Guidance Positive Sentiment: The company raised 2026 adjusted EPS guidance to $5.45-$5.60, above its prior range, signaling confidence in earnings momentum. Abbott raises 2026 profit forecast on heart device strength Positive Sentiment: Revenue grew 13% year over year, supported by strong demand in medical devices, diagnostics, and emerging markets, which points to broad-based operating strength. Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street Positive Sentiment: Heart-device demand and diagnostics growth, including a surge in sales tied to that segment, improved investor sentiment around Abbott’s longer-term growth profile. Abbott Q2 Earnings & Revenues Top Estimates, Stock Up in Pre-market Neutral Sentiment: Abbott’s profit fell sharply from a year ago on a GAAP basis, but the decline was offset by stronger sales and guidance, making this more of a quality-over-headline-results story. Abbott Laboratories Sales Rise on Diagnostics Growth Negative Sentiment: Broader market and tech sell-off headlines may have slightly tempered enthusiasm, but they were not the main driver of ABT’s move. Stock Market Today, July 16: Micron Plunges as Tech Stocks Extend Sell-Off Analyst Ratings Changes Several equities analysts have recently commented on the company. Leerink Partners reduced their price objective on Abbott Laboratories from $119.00 to $106.00 and set a “market perform” rating on the stock in a research report on Tuesday, April 21st. Evercore cut their target price on Abbott Laboratories from $134.00 to $120.00 and set an “outperform” rating for the company in a research note on Friday, April 17th. Robert W. Baird initiated coverage on shares of Abbott Laboratories in a research report on Wednesday, July 1st. They set an “outperform” rating and a $121.00 price target on the stock. Benchmark decreased their price target on shares of Abbott Laboratories from $145.00 to $120.00 and set a “buy” rating on the stock in a research note on Friday, April 17th. Finally, Sanford C. Bernstein lowered their price objective on shares of Abbott Laboratories from $125.00 to $110.00 and set an “outperform” rating for the company in a report on Friday, April 17th. Three analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Abbott Laboratories currently has an average rating of “Moderate Buy” and an average price target of $117.61.

Get Our Latest Analysis on ABT

Insider Transactions at Abbott Laboratories In related news, Director Daniel J. Starks bought 10,000 shares of the company’s stock in a transaction that occurred on Monday, April 27th. The stock was bought at an average cost of $92.65 per share, for a total transaction of $926,500.00. Following the acquisition, the director directly owned 6,751,103 shares of the company’s stock, valued at $625,489,692.95. The trade was a 0.15% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Philip P. Boudreau purchased 2,200 shares of Abbott Laboratories stock in a transaction that occurred on Thursday, April 23rd. The shares were bought at an average price of $91.50 per share, for a total transaction of $201,300.00. Following the completion of the transaction, the chief financial officer owned 2,200 shares in the company, valued at $201,300. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.46% of the company’s stock.

Institutional Inflows and Outflows Several hedge funds have recently made changes to their positions in ABT. American National Bank of Texas boosted its position in Abbott Laboratories by 2.4% during the 4th quarter. American National Bank of Texas now owns 3,408 shares of the healthcare product maker’s stock valued at $427,000 after buying an additional 79 shares during the period. Nia Impact Advisors LLC grew its holdings in Abbott Laboratories by 2.2% in the 2nd quarter. Nia Impact Advisors LLC now owns 3,706 shares of the healthcare product maker’s stock worth $504,000 after acquiring an additional 79 shares during the last quarter. Park Place Capital Corp increased its position in shares of Abbott Laboratories by 11.0% in the fourth quarter. Park Place Capital Corp now owns 815 shares of the healthcare product maker’s stock valued at $102,000 after acquiring an additional 81 shares during the period. Lantern Wealth Advisors LLC raised its stake in shares of Abbott Laboratories by 1.7% during the third quarter. Lantern Wealth Advisors LLC now owns 5,028 shares of the healthcare product maker’s stock valued at $674,000 after acquiring an additional 84 shares during the last quarter. Finally, Clayton Financial Group LLC raised its stake in shares of Abbott Laboratories by 1.4% during the fourth quarter. Clayton Financial Group LLC now owns 6,217 shares of the healthcare product maker’s stock valued at $779,000 after acquiring an additional 84 shares during the last quarter. 75.18% of the stock is owned by hedge funds and other institutional investors.

Abbott Laboratories Trading Up 10.7% The company has a quick ratio of 1.01, a current ratio of 1.39 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $172.11 billion, a PE ratio of 27.68, a price-to-earnings-growth ratio of 1.54 and a beta of 0.61. The stock’s fifty day moving average price is $89.56 and its two-hundred day moving average price is $102.18.

Abbott Laboratories Company Profile (Get Free Report)

Abbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.

In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.

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