The Intel logo, on display at HPE Discover Las Vegas 2026, in Las Vegas, Nevada, U.S., June 16, 2026. REUTERS/Caroline Brehman Purchase Licensing Rights, opens new tab
June 16 (Reuters) - Intel (INTC.O), opens new tab on Tuesday said the new generation of its 18A manufacturing process has entered risk production, as the chipmaker sees strong demand for its central processors.
By moving 18A-P into initial production, Intel is aiming to show it is following through on its manufacturing commitments, potentially making the technology more appealing to external customers.
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Intel CEO Lip-Bu Tan has started recognizing 18A as a potential offering for external clients, reversing his earlier view that the process would generate returns only through Intel's own products, finance chief David Zinsner said in March.
Compared to 18A, 18A-P delivers 9% higher performance at the same power level — known as iso-power — or 18% lower power at the same processing speed, which is iso-performance, alongside improved thermals and design flexibility.
18A-P is fully design-rule-compatible with Intel 18A, which enables reuse of existing intellectual property and design flows, the company said.
Demand for Intel's central processors from firms offering AI services was so strong in the first quarter that it sold even chips it had originally written off.
It forecast second-quarter revenue of $13.8 billion to $14.8 billion, compared with an estimate of $13.07 billion, according to data compiled by LSEG.
Reporting by Juby Babu in Mexico City; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Intel's new manufacturing process has entered a stage that signals the company is confident in its ability to bring on external customers, analysts say.
SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq:ADBE) — the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms — and LinkedIn — the world's largest professional networking platform — today announced AI Essentials for Marketers, a joint global initiative designed to help marketing professionals develop the AI skills that matter most to their roles, so they can be equipped to lead their organizations in the AI era. Cre.
Adobe Systems (ADBE - 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.
Shares of this software maker have returned -19.3% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Computer - Software industry, to which Adobe belongs, has lost 4.9% over this period. Now the key question is: Where could the stock be headed in the near term?
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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Adobe is expected to post earnings of $5.81 per share, indicating a change of +9.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +6.1% over the last 30 days.
The consensus earnings estimate of $23.62 for the current fiscal year indicates a year-over-year change of +12.8%. This estimate has changed +3.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $26.64 indicates a change of +12.8% from what Adobe is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Adobe is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Adobe, the consensus sales estimate of $6.69 billion for the current quarter points to a year-over-year change of +11.8%. The $26.55 billion and $28.68 billion estimates for the current and next fiscal years indicate changes of +11.7% and +8%, respectively.
Last Reported Results and Surprise HistoryAdobe reported revenues of $6.62 billion in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $5.96 for the same period compares with $5.06 a year ago.
Compared to the Zacks Consensus Estimate of $6.46 billion, the reported revenues represent a surprise of +2.5%. The EPS surprise was +2.23%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
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.
Adobe is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe 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 Adobe. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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.
The research service features 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, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight 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 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 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 The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build 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.
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.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Adobe Systems (ADBE - Free Report) San Jose California-based Adobe Inc. is a leading technology company offering personalized digital experience through the infusion of artificial intelligence (AI) in its solutions.
ADBE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.74; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.08 to $23.62 per share. ADBE boasts an average earnings surprise of +2.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ADBE should be on investors' short list.
While many stocks can appear cheaper after a sell-off, the best long-term opportunities are often found in companies that consistently generate strong returns on invested capital (ROIC), a key measure of how efficiently management converts capital into profits.
Among large-cap software companies, Microsoft (MSFT - Free Report) ) and Adobe (ADBE - Free Report) ) stand out as two businesses with exceptional economics, durable competitive advantages, and a long history of generating impressive ROIC.
With Microsoft and Adobe stock trading nearly 30% and 50% from their 52-week highs, respectively, investors may be wondering which software leader is the best buy-the-dip target.
Image Source: Zacks Investment Research
Why ROIC Matters for Long-Term InvestorsROIC measures how effectively a company generates operating profits from the capital invested in its business. Companies with consistently high ROIC often possess competitive advantages such as strong brands, network effects, or proprietary technology, and high switching costs (The expenses or barriers a customer faces when changing from one product or service to another, influencing loyalty and business strategy).
Over long periods, stocks of businesses that earn high returns on capital tend to outperform because they can reinvest profits at attractive rates, generate substantial free cash flow, and create significant shareholder value.
Investors often view a ROIC of 20% or higher as a sign of an exceptional business, although the appropriate benchmark varies by industry, capital intensity, and cost of capital.
Within the technology sector, software companies typically generate higher ROIC than hardware manufacturers due to their higher margins, recurring revenue streams, and asset-light business models. Unlike hardware companies, which require significant investment in manufacturing, inventory, and supply chains, software firms can scale their products with relatively little incremental capital.
Microsoft: An AI Leader With Stellar Capital EfficiencyMicrosoft has evolved far beyond its Windows roots to become one of the world's most diversified software and cloud computing companies. The company's business spans productivity software, cloud infrastructure, cybersecurity, gaming, and artificial intelligence.
Microsoft's Azure platform remains one of the fastest-growing cloud businesses globally, while Microsoft 365 continues to benefit from high customer retention and recurring subscription revenue. The tech giant’s partnership with OpenAI has also made it a key player in the rapidly evolving AI landscape.
What makes Microsoft particularly attractive is its ability to generate enormous profits while requiring relatively modest capital. At the moment, Microsoft’s ROIC is still at a very respectable 23%, reflecting the strength of its software ecosystem and pricing power.
Plus, Microsoft's vast installed base creates significant switching costs for enterprise customers. Once businesses build workflows around Microsoft products, changing vendors can be expensive and disruptive. This competitive moat helps support steady revenue growth and industry-leading profitability.
For investors seeking a high-quality compounder, Microsoft remains one of the strongest businesses in the market.
Image Source: Zacks Investment Research
Adobe: A Dominant Franchise Trading at a More Attractive ValuationAdobe may not receive the same level of attention as AI-focused tech giants, but its business quality remains exceptional.
To that point, Adobe dominates creative software through flagship products such as Photoshop, Illustrator, Premiere Pro, and Acrobat. These applications have become industry standards across design, marketing, publishing, and digital content creation.
Adobe's subscription-based business model generates highly predictable recurring revenue while supporting strong margins and cash flow generation. Adobe also benefits from high customer retention, as professionals often spend years mastering the company's software ecosystem.
More importantly, Adobe has historically generated excellent ROIC with a current mark of 40%, demonstrating its ability to convert revenue growth into meaningful shareholder value.
Image Source: Zacks Investment Research
Despite these strengths, Adobe shares have faced pressure in recent years amid concerns that generative AI tools could disrupt parts of the creative software market. However, Adobe has aggressively integrated AI capabilities into its product suite through its conversational AI tool Firefly, among other initiatives.
Keeping this in mind, investors have an opportunity to consider a world-class software franchise at a valuation that is very reasonable compared to historic levels, with Adobe stock trading at just 10X forward earnings compared to Microsoft’s 23X.
Furthermore, ADBE is trading at a 75% discount to its decade-long median of 41X forward earnings and is vastly beneath its high of 65X during this period.
Image Source: Zacks Investment Research
Conclusion & Strategic ThoughtsInvestors who prioritize stability and AI-driven growth may prefer buying Microsoft stock on the dip, while those seeking a potentially undervalued software leader could find Adobe particularly attractive at current levels.
That said, if you're looking to build wealth over the long term, owning companies with durable competitive advantages and consistently high ROIC has historically been a winning strategy — and Microsoft and Adobe remain among the strongest examples in the software industry.
Key Takeaways Shopify delivered 34% Q1 revenue growth to $3.17B, while GMV topped $100B for a second quarter.Sidekick usage rose fourfold year over year, with merchants creating over 12,000 custom apps.AI-driven traffic to Shopify stores grew eightfold, while AI-powered search orders rose nearly 13 times. Shopify (SHOP - Free Report) is increasingly positioning itself as more than an e-commerce platform. The company is building the infrastructure that could power AI-driven retail, combining its vast commerce data, merchant ecosystem and AI tools to make buying and selling more automated and efficient. Recent results suggest this strategy is gaining traction. Shopify delivered first-quarter 2026 revenue growth of 34% year over year to $3.17 billion while gross merchandise volume (GMV) surpassed $100 billion for the second consecutive quarter, reaching $101 billion.
A key pillar of Shopify’s AI strategy is Sidekick, its AI-powered commerce assistant. Management noted that weekly active shops using Sidekick increased fourfold year over year in the first quarter. Merchants created more than 12,000 custom apps through Sidekick during the quarter, while nearly half of all Shopify Flow automations were built using the tool. These trends suggest that merchants are increasingly relying on Shopify’s AI capabilities to manage and scale their businesses.
Shopify is also becoming an important bridge between merchants and emerging AI shopping channels. The company enables product discovery and purchases through platforms such as ChatGPT, Microsoft Copilot and Google AI services. Management highlighted that AI-driven traffic to Shopify stores grew eightfold year over year in the first quarter, while orders generated through AI-powered searches increased nearly 13 times. Traffic from Shopify’s structured product catalog converted at twice the rate of general AI search traffic, demonstrating the value of its commerce data advantage.
Importantly, Shopify continues to invest aggressively in AI while maintaining strong profitability. The company generated $476 million in free cash flow and a 15% free cash flow margin in the quarter. Management expects revenue growth in the high-20% range for the second quarter while continuing to expand AI capabilities.
With AI increasingly reshaping product discovery, marketing and commerce operations, Shopify appears well-positioned to become a foundational infrastructure provider for the next generation of retail.
How Shopify Compares in the AI Commerce RaceTwo companies often mentioned in discussions about AI-enabled commerce infrastructure are Amazon (AMZN - Free Report) and Wix.com (WIX - Free Report) . Both are investing heavily in AI, but their approaches differ from Shopify’s.
Amazon is leveraging its vast marketplace, logistics network and AI capabilities to improve product discovery, advertising and fulfillment. Amazon has introduced AI-powered shopping assistants and seller tools, making it a major force in AI-driven retail. However, Amazon primarily operates a marketplace model, whereas Shopify focuses on empowering independent merchants to own customer relationships. As AI commerce expands, Amazon remains a formidable competitor because of its scale and consumer reach.
Wix.com is also integrating AI into website creation, store design and business management. Wix.com has launched AI tools that help merchants build online stores and automate workflows with minimal technical expertise. While Wix.com targets many small and medium-sized businesses, Shopify benefits from a deeper commerce ecosystem, stronger payments infrastructure and broader enterprise adoption.
Both Amazon and Wix.com are pushing AI deeper into commerce. Still, Shopify’s combination of commerce data, AI-powered merchant tools, payments, fulfillment and growing integrations with AI shopping channels gives it a differentiated position in the race to become the infrastructure layer for AI retail.
SHOP Stock’s Price Performance & Valuation TrendShares of SHOP have trended 30.1% downward year to date (YTD), underperforming the Zacks Internet - Services industry, as shown below.
SHOP’s YTD Price Performance
Image Source: Zacks Investment Research
SHOP stock is currently trading slightly at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 57.16, as evidenced by the chart below.
SHOP’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
EPS Trend of SHOP StockOver the past 60 days, expectations for the company’s 2026 earnings per share increased to $1.80. The estimate indicates 53.9% growth from the year-ago level.
Image Source: Zacks Investment Research
Shopify currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our 24/7 Wall St. price target for Shopify (NASDAQ:SHOP | SHOP Price Prediction) is $106.90, which sits just below the current quote of $112.49. That implies -4.97% downside over the next 12 months, and our model carries a 90% confidence reading. The call is hold. Shopify is a high-quality compounder trading near fair value after a sharp reset.
24/7 Wall St. Price Target Summary Metric Value Current Price $112.49 24/7 Wall St. Price Target $106.90 Upside/Downside -4.97% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target of $106.90 sits below current levels, and the stock is one of the more divisive names in commerce software. Real upside could come from faster monetization of AI tools like Sidekick and the Universal Commerce Protocol, or from continued strength in Shop Pay, where Q4 GMV grew 62%. Wall Street’s consensus target of $149.78 sits well above our number.
A Brutal Reset, Then a Recovery Attempt SHOP is down 30.12% year to date, but has rallied 12.18% in the past month and 3.93% in the latest session. Shares trade 18% below the 52-week high of $182.19 and well off the low of $94.
Q1 2026 was operationally excellent. Revenue grew 34.32% to $3.17 billion, beating consensus by 2.74%. Operating income surged 88.18% to $382 million, free cash flow hit $476 million at a 15% margin, and GMV rose 35% to $100.74 billion.
The headline GAAP loss of $581 million was driven entirely by $941 million in mark-to-market equity investment losses. Underlying net income was roughly $360 million. Management expanded the buyback to $5 billion in early June.
Why Bulls See a Breakout Ahead The bull case rests on AI commerce leadership and operating leverage. Shopify is rolling out Sidekick, Catalog, and the Universal Commerce Protocol while Shop Pay GMV grew 62% and B2B GMV grew 96% in 2025.
With 38 Buy ratings, 12 Holds, and only 1 Sell, the Street’s $149.78 target sets the upper bound. Our bull scenario projects $176.57 by June 2027, a 56.97% return.
The Risks Worth Watching The bear thesis starts with valuation. SHOP trades at a P/E of 106 and a forward P/E of 57, leaving little margin for error. Q2 guidance for high-twenties revenue growth marks deceleration.
Transaction and loan losses jumped to $148 million in Q3 2025 as the Capital book expands, and CEO Tobias Lutke sold 95,817, 72,000, and 23,813 share tranches into weakness. Our bear case points to $100.21.
Shopify Price Prediction 2026-2030 The 24/7 Wall St. price target is $106.90, the recommendation is hold, and confidence is 90%. The tipping factor is the gap between a trailing multiple north of 100x and forward EPS of less than $1.
The bull trigger would be Q2 revenue reacceleration paired with AI tools meaningfully lifting take rates. The bear trigger would be rising loan losses or guidance slipping into the low twenties. For now, the setup favors patience while the buyback works.
Year 24/7 Wall St. Price Target 2026 $106.90 2027 $105.77 2028 $103.03 2029 $106.19 2030 $105.54 These projections assume Shopify executes on its AI commerce strategy and operating leverage continues to build. Upside could come from faster monetization of Sidekick and Shop Pay, while downside hinges on rising credit losses in the Capital portfolio and tariff-driven GMV pressure.
Internet, Everywhere, June 16, 2026 (GLOBE NEWSWIRE) -- Shopify Inc. (NASDAQ, TSX: SHOP) announced today the results of its annual meeting of shareholders held on June 16, 2026. All director nominees were elected to the Board of Directors and PricewaterhouseCoopers LLP was reappointed as Shopify's auditors. Shareholders also accepted, on a non-binding advisory basis, Shopify's approach to executive compensation, as further described in Shopify's management information circular dated April 21, 2026. A shareholder proposal regarding an artificial intelligence policy was not approved.
The detailed results of the meeting are as follows:
1. Election of Directors
Each of the ten (10) nominees for director was elected to the Board of Directors. The votes cast for each nominee were as follows:
DirectorVotes
for% of
Votes forVotes
Against% of
Votes AgainstTobias Lütke1,657,446,73797.72%38,629,7442.28%Lulu Cheng Meservey1,691,141,69599.71%4,934,7870.29%Jeanne DeWitt Grosser1,684,061,53699.29%12,014,9450.71%David Heinemeier Hansson1,691,045,51999.70%5,030,9630.30%Jeremy Levine1,665,712,40498.21%30,364,0791.79%Prashanth Mahendra-Rajah1,687,117,69899.47%8,958,7840.53%Joseph Natale1,534,092,14490.45%161,984,3369.55%Kevin Scott1,692,124,19699.77%3,952,2850.23%Toby Shannan1,692,107,20299.77%3,969,2800.23%Fidji Simo1,639,426,47296.66%56,649,9853.34% Following the meeting, the Board of Directors intends to select Tobias Lütke to continue to serve as Chair of the Board of Directors and Joseph Natale to continue to serve as Lead Independent Director.
2. Appointment of Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP was reappointed as Shopify's auditors, and the directors were authorized to fix the auditors' remuneration. The votes were cast as follows:
Votes
for% of
Votes forVotes
Withheld% of
Votes Withheld1,762,083,81799.42%10,266,4010.58% 3. Non-binding Advisory Vote on Executive Compensation
Shareholders accepted, on a non-binding advisory basis, the Company's approach to executive compensation. The votes were cast as follows:
Votes
for% of
Votes forVotes
Against% of
Votes Against1,377,881,96181.24%318,194,52118.76% 4. Shareholder Proposal
A shareholder proposal regarding an artificial intelligence policy was not approved. The votes were cast as follows:
Votes
for% of
Votes forVotes
Against% of
Votes Against235,153,52613.86%1,460,922,95586.14% About Shopify
Shopify provides essential internet infrastructure for commerce. Shopify's all-in-one platform makes it easier to start, run, and grow a business, powering sales online, in-store, and everywhere in between. Millions of businesses in 175+ countries use Shopify—from entrepreneurs to brands like Aldo, BarkBox, Carrier, Meta, Vuori, SKIMS, and Supreme.
FedEx Corporation has outperformed SPY recently, with a 17%+ stock price increase over the past quarter. FDX is receiving tariff refunds as expected, though these will be passed to customers; ongoing legal and operational complexities remain. Amazon's logistics expansion is not viewed as a material threat to FDX's core business, given limited overlap and a renewed partnership.
Wall Street expects a year-over-year decline in earnings on higher revenues when FedEx (FDX - Free Report) reports results for the quarter ended May 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on June 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis package delivery company is expected to post quarterly earnings of $5.91 per share in its upcoming report, which represents a year-over-year change of -2.6%.
Revenues are expected to be $24.18 billion, up 8.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.39% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for FedEx?For FedEx, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.76%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that FedEx will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that FedEx would post earnings of $4.14 per share when it actually produced earnings of $5.25, delivering a surprise of +26.81%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
FedEx appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Options traders have been much more bearish than usual
Deputy Editor
Jun 16, 2026 at 1:37 PM
FedEx is oversold despite trading near record highs
FedEx Corp (NYSE:FDX) is set to report fiscal fourth-quarter earnings after the close on Tuesday, June 23. According to Zacks Research, analysts expect earnings of $5.91 per share on revenue of $24.18 billion. Wall Street will be watching for continued benefits from the company's cost-cutting program, DRIVE, as well as lower operating expenses stemming from its use of artificial intelligence.
FedEx stock is pulling back slightly after hitting a June 15 record high of $345.37. In a rare bearish divergence, the stock's 14-day Relative Strength Index (RSI) sits at 28.5, indicating the shares sit firmly in oversold territory despite trading near these highs. Year-to date, the equity is up roughly 44%.
Options traders are pricing in a post-earnings swing of 8.5%, compared to the stock's historical earnings move of 5.5% over the last eight quarters. FDX has closed four of its last eight post-earnings sessions higher, including its most recent three.
Currently, sentiment in the options pits is overwhelmingly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FDX's 10-day put/call volume ratio of 3.19 ranks higher than 97% of readings from the past year.
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FedEx Corporation (NYSE:FDX) will release earnings for its fourth quarter after the closing bell on Tuesday, June 23.
Analysts expect the Memphis, Tennessee-based company to report quarterly earnings of $5.92 per share. That's down from $6.07 per share in the year-ago period. The consensus estimate for FedEx's quarterly revenue is $24 billion (it reported $22.22 billion last year), according to Benzinga Pro.
On June 8, FedEx announced a 5% increase in the annual dividend rate.
Shares of FedEx fell 0.9% to close at $335.74 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying FDX stock? Here’s what analysts think:
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American Express (AXP - Free Report) closed the most recent trading day at $340.74, moving +1.6% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.57%. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
Heading into today, shares of the credit card issuer and global payments company had gained 7.41% over the past month, outpacing the Finance sector's gain of 4.57% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of American Express in its forthcoming earnings report. The company is scheduled to release its earnings on July 24, 2026. The company is expected to report EPS of $4.37, up 7.11% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $19.57 billion, showing a 9.62% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.59 per share and a revenue of $79.14 billion, representing changes of +14.37% and +9.56%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for American Express. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. American Express is currently a Zacks Rank #3 (Hold).
From a valuation perspective, American Express is currently exchanging hands at a Forward P/E ratio of 19.07. This indicates a premium in contrast to its industry's Forward P/E of 10.93.
One should further note that AXP currently holds a PEG ratio of 1.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial - Miscellaneous Services industry stood at 1.06 at the close of the market yesterday.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Moderna (NASDAQ:MRNA | MRNA Price Prediction) stock is jumping again. Shares are up 9% today, trading near $57 in the Tuesday afternoon session. That extends a remarkable 2026 run for the mRNA pioneer.
The move pushes Moderna stock to +94% year to date (YTD), easily the best performance in the major vaccine cohort. By comparison, Pfizer (NYSE:PFE) stock is up 4% YTD, and Novavax (NASDAQ:NVAX) stock sits at 41%. Moderna is decisively ahead of both peers.
Today’s catalyst is corporate, not clinical. Moderna announced a leadership restructuring to prepare for a wave of planned product launches in 2027 and 2028, and traders are treating it as a credibility signal for the pipeline.
Restructuring Frames a 2027-2028 Launch Pipeline Moderna disclosed an expanded role for President Stephen Hoge and named Ester Banque as Chief Commercial Officer. Hoge now oversees R&D, Manufacturing, and Commercial operations across three franchises, a structure designed for commercial scale rather than research-stage biotech.
The reorganization lines up with a planned slate of up to three product launches by 2027-2028, including a flu-plus-COVID combination vaccine, a seasonal flu vaccine, and a norovirus vaccine. Investors are reading the move as Moderna preparing the operational backbone needed to commercialize multiple vaccines simultaneously.
The day’s enthusiasm also rides on a recently approved EU label for mCOMBRIAX, the world’s first flu-plus-COVID combo vaccine, and a key upcoming Prescription Drug User Fee Act (PDUFA) date of August 5 for the seasonal flu candidate mRNA-1010. Both reinforce the narrative that 2026 is the setup year and 2027-2028 is the payoff window.
Moderna Versus Pfizer and Novavax: The 2026 Scoreboard The YTD scoreboard answers the headline question directly. Moderna stock at +94% is ahead of Novavax stock and crushing Pfizer stock in 2026 so far. The dispersion reflects three very different business profiles within one industry label.
Pfizer is a diversified pharma giant where vaccines are one slice of a large revenue book. The company’s Q1 2026 revenue was $14.45 billion, up 5% year over year (YoY), with Comirnaty revenue down 59% and Paxlovid revenue down 63%, offset by launched and acquired products. Pfizer’s 7% dividend yield anchors a steadier, lower-beta profile, which limits both upside and downside in a momentum tape.
Meanwhile, Novavax is in transition. The company is leaning on a Matrix-M adjuvant licensing model, including a $30 million upfront payment from Pfizer with up to $500 million in milestones, and Q1 2026 revenue of $139.51 million easily topped consensus. However, that royalty-driven model carries lower revenue scale than Moderna’s product-led path.
The Caution Inside a 94% Rally Moderna stock isn’t without baggage. The company’s Q1 2026 included an $878 million non-recurring litigation charge tied to the Arbutus/Genevant patent settlement, which widened the GAAP loss to $1.34 billion. Wall Street has been slow to embrace the rebound, with an analyst average 1-year MRNA price target of $37 and a consensus rating of Reduce.
Zoom out and Moderna stock is still down 74% over five years, well below its pandemic-era peaks. The 2026 run is a rebound, not a return to those highs, and the 2027-2028 launch slate carries real execution and regulatory risks.
What to Watch Next The near-term event to look for is the FDA advisory committee vote scheduled for June 18 on mFlusiva for adults 50 and older. A constructive panel readout could reinforce today’s bid, while a mixed verdict may test how much of the 94% YTD gain is priced for perfection.
Investors can watch whether Moderna stock holds the $50 zone into the June 18 advisory committee vote and the August 5 PDUFA decision. Until then, feel free to size your share vaccine-stock positions with due caution and moderation.
Key Takeaways CSCO fiscal third-quarter revenues rise 12% year over year to $15.8B, with networking up 25% to $8.8B.Networking orders jump over 50%, while hyperscale infrastructure reaches $1.9B vs $600M YoY.Cisco aims approximately $4B AI infra revenues in FY26 and at least $6B in FY27 on strong hyperscaler demand. Cisco Systems (CSCO - Free Report) is benefiting from strong demand for its networking and infrastructure solutions, which continue to support growth across the business. In the third quarter of fiscal 2026, revenues rose 12% year over year to a record $15.8 billion, while product revenues increased 17%. Networking remained the key growth driver, with revenues climbing 25% year over year to $8.8 billion on healthy demand across enterprise, cloud and service provider markets.
The company’s networking portfolio continues to gain traction. Networking product orders surged more than 50% in the third quarter of fiscal 2026, marking the seventh consecutive quarter of double-digit growth. The increase was fueled by triple-digit growth in service provider routing and compute, and strong double-digit growth in data center switching, campus switching, wireless, enterprise routing and industrial IoT.
Cisco is also seeing robust demand from hyperscale customers. Orders tied to its high-performance infrastructure offerings reached $1.9 billion in the quarter, up significantly from $600 million a year earlier. Year-to-date orders totaled $5.3 billion, exceeding the company’s previous full-year target. Strong adoption of Silicon One systems and Acacia optical solutions continues to contribute meaningfully to this momentum.
Enterprise customers are increasingly upgrading its technology environments, creating additional growth opportunities. Its data center switching orders increased more than 40% year over year, while campus networking orders rose more than 25% to a record level. Wireless orders climbed more than 40%, supported by growing adoption of WiFi 7 products and continued network modernization efforts. Demand for Cisco’s next-generation switching, routing and wireless products remained robust during the quarter. Customer adoption continued to exceed that of earlier product cycles, while WiFi 7 orders posted strong double-digit sequential growth and accounted for approximately half of the company’s wireless orders.
Cisco’s management is confident about further upside. The company expects to recognize approximately $4 billion in AI infrastructure revenues from hyperscalers in fiscal 2026 and at least $6 billion in fiscal 2027. Its innovation pipeline, strong customer demand and strategic investments in silicon, optics, security and AI position Cisco to capitalize on the multiyear, multibillion-dollar opportunity presented by the AI networking boom.
CSCO Faces Tough Competition in the Networking DomainCisco is facing stiff competition from Arista Networks (ANET - Free Report) and HPE (HPE - Free Report) . Both Arista Networks and HPE are expanding their footprint in the networking domain.
Arista Networks is a leader in high-speed Ethernet switching, particularly 100G, and is benefiting from rising demand for 800G and faster networking. Growth is driven by large data center expansions supporting distributed computing and cloud infrastructure. Its software stack, including EOS, CloudVision and AVD, simplifies network management. Customers include cloud providers, enterprises and telecom companies expanding across industries like manufacturing, insurance and telecom.
HPE’s focuses on artificial intelligence, industrial IoT and distributed computing as the next major growth markets. The company sees these areas as key drivers of future infrastructure demand. The acquisition of Juniper Networks has strengthened HPE’s position in networking, expanding its capabilities across AI, cloud and hybrid environments. This has helped improve its competitive position in large-scale modern infrastructure deployments.
CSCO Share Price Performance, Valuation & EstimatesCisco shares have gained 56% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector’s return of 20.2%.
CSCO Stock Outperforms Sector
Image Source: Zacks Investment Research
CSCO stock is trading at a premium, with a trailing 12-month price/book of 9.69X compared with the Zacks Computer Networking industry’s 9.36X. Cisco has a Value Score of F.
CSCO Stock Is Overvalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings is currently pegged at $1.17 per share, up 4 cents over the past 30 days, suggesting 18.18% growth from the figure reported in the year-ago quarter.
Cisco currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.
Considering buying WPC stock? Here’s what analysts think:
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IBM is upgraded to Buy from Hold following improved business momentum and valuation appeal. IBM's earnings multiple has contracted to ~22x forward P/E, presenting an attractive risk-reward profile. Six consecutive top and bottom line double beats signal accelerating business performance and potential for bullish rerating.
Apptio is launching a preview of new Conversational Insights solution that allows any stakeholder to ask plain-language questions and get data-backed insights into their technology spend and value across the entire Apptio product suite Apptio customers will get several updates across the solution suite, including IBM Apptio Data Center Total Cost of Ownership, Cloudability Intelligent Forecasting, and Cloudability Advanced Containers, enabling end-to-end visibility and control across the entire hybrid IT estate The updates further enhance the Financial Intelligence Layer for technology to address blind spots and connect cost to value, empowering teams to assess whether every technology investment delivers a measurable business outcome , /PRNewswire/ -- Today, Apptio, an IBM Company (NYSE: IBM), announced significant updates to its solution suite—including the launch of its Conversational Insights, currently in preview, and new capabilities for hybrid IT cost management and cloud optimization—designed to turn technology investment into measurable business outcomes and establish best practices for the financial governance for AI in a time of record infrastructure investments. The new capabilities are designed to specifically strengthen Apptio's Financial Intelligence Layer that connects cost, consumption, value, and action across all spending and operational data within the enterprise.
Apptio, an IBM company As businesses rush to capitalize on AI, "global IT spending is poised to reach $6.15 trillion in 2026, up 10.8% from 2025", according to the latest forecast by Gartner®[1] to meet these demands. This rapid investment in AI within already complex hybrid IT environments is creating significant financial blind spots, making it nearly impossible to connect AI-driven costs to business value.
At the same time, executives are being asked to justify the value of massive AI expenditures they cannot fully see or track. Apptio's 2026 Technology Investment Management Report found that 90% of leaders surveyed say ROI uncertainty impacts their tech investment decisions. To overcome this, organizations must unify financial and operational data across their technology estate, moving from siloed tools to a single source of truth for all technology investments.
"Technology is no longer a cost center; it is the engine of modern business," said Bill Lobig, Vice President Apptio. "This reality demands a shift from reactive reporting to proactive, real-time monitoring of spend. With the introduction of our new AI-infused capabilities, we are providing the automated, real-time insights leaders need to manage the complexity of hybrid IT to help ensure their technology investments become their greatest competitive advantage."
Conversational Insights: Powering the Financial Intelligence Layer
To address this challenge, Apptio is launching Conversational Insights, an enterprise-grade conversational interface with AI embedded across the company's entire solutions portfolio. Built with Technology Business Management (TBM) principles in mind, the new interface is designed to connect financial, operational and business data across systems in order to help leaders better manage IT costs, optimize cloud spending and align strategic portfolios.
This natural language AI interface allows stakeholders to ask plain-language questions about project status, resource allocation, and financial performance and get immediate, data-backed answers. By providing easy-to-understand insights into cloud spend, Conversational Insights empowers users –– across technical abilities––with a FinOps approach to making informed decisions about IT investments, to ultimately meet financial targets.
Unlike generic, bolt-on AI tools, Apptio's Conversational Insights is natively embedded within the Apptio platform and across the solutions portfolio. This purpose-built architecture delivers enterprise-grade governance by automatically inheriting and enforcing all existing user permissions, ensuring authorized data access for organizations with the strictest requirements, including government, financial services, and healthcare.
"Many organizations still have limited visibility into their AI investments. Organizations need a natural language conversational tool powered by AI to gain better insight into their technology spend and can directly connect costs to measurable business outcomes," said Jevin Jensen, research vice president, IDC. "This replaces guesswork with financial intelligence and allows IT and business leaders to operate from a shared perspective."
End-to-End Visibility: New Capabilities in Cost Modeling and Forecasting
While the Conversational Insights provides the interface, its intelligence is only as powerful as the data it sits on. Simultaneously, Apptio is launching foundational enhancements that feed the AI engine with more comprehensive data from across the hybrid landscape.
Other key updates that feed this Financial Intelligence Layer include:
IBM Apptio Data Center Total Cost of Ownership (TCO): This new capability helps embed financial governance as organizations scale AI infrastructure readiness, connecting the cost, capacity, and constraints of today's enterprise data center footprint like rack space, cooling, and power. By bridging facility and operational data in a single model, leaders can drill into unit economics, quantify available headroom, and gain the insights needed for a comprehensive cost breakdown by department and identify where there's capacity for further data center investment. IBM Cloudability Intelligent Forecasting: Integrating IBM's watsonx.ai, this feature uses advanced machine learning models to automatically generate spend forecasts to help improve budgeting accuracy. Its built-in outlier detection is built to remove anomalies, giving FinOps teams a more comprehensive view of future cloud spend to improve budget accuracy. Cloudability Advanced Containers: Powered by Kubecost, this add-on solution brings advanced real-time, container-level cost visibility and savings insights directly into Cloudability. Cloudability Advanced Containers is infrastructure agnostic, allowing you to build real-time visibility into your containerized workloads across any infrastructure type. By integrating granular Kubernetes costs management capabilities directly into Cloudability, DevOps teams can see the cost impact of their work as it happens at the container level, building cost visibility and responsibility directly into the development process. With AI as the engine, this unified approach transforms technology from a cost center into a strategic business advantage, enabling collaborative, data-driven decisions that optimize investments to maximize business impact.
Conversational Insights is now available in preview and is expected to be generally available in 2026, with Cloudability Intelligent Forecasting and Data Center TCO generally available in Q2 2026. To learn more about Conversational Insights and how Apptio is transforming TBM for the AI era, visit: https://www.apptio.com/innovation-hub/.
[1] Gartner Press Release, Gartner Forecasts Worldwide IT Spending to Grow 10.8% in 2026, Totaling $6.15 Trillion, February 3, 2026
GARTNER is a trademark of Gartner, Inc. and/or its affiliates.
About Apptio, an IBM Company
Apptio, an IBM company, is a leading technology spend and value management software provider. Apptio's AI-powered data insights empower leaders to make smarter financial and operational decisions across Information Technology (IT), multi-cloud FinOps, and digital product development. Apptio's mission is to deliver business value with every technology investment and team. Powered by Apptio's cloud platform, Apptio's SaaS applications help translate technology spend into clear business outcomes and financial ROI. As a pioneer and category leader in Technology Business Management (TBM), FinOps, and Agile Portfolio Management, Apptio works with thousands of customers, partners, and community members worldwide.
Forward-Looking Statements
Statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.
International Business Machines (NYSE:IBM | IBM Price Prediction) looks attractively valued at $268.71, with the setup sharpening on any retest of $260.
68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging Nearly all (91%) respondents report not fully understanding their AI dependencies across vendors, models, and infrastructure Organizations with the most advanced AI control capabilities protect more than half of their operating profit from AI-driven disruptions , /PRNewswire/ -- A new global study by the IBM (NYSE: IBM) Institute for Business Value finds that as enterprises embed AI deeper into core business operations, most surveyed organizations remain locked into AI systems they cannot easily change, reinforcing the growing importance of AI sovereignty to maintain business continuity and performance.
Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study* reveals that 71% of respondents say switching their primary AI vendor or model would be difficult, highlighting significant operational constraints. Additionally, 68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand.
While the need for control is intensifying, most organizations still lack the visibility required to act on it: 91% of those surveyed say they don't fully understand their organization's dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of six AI-related disruptions over the past two years, largely driven by vendor services, yet 81% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations.
Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies.
Ana Paula Assis, IBM Senior Vice President and Chair, EMEA and APAC, said in the study foreword: "AI has introduced new forms of dependency that evolve faster than traditional governance, procurement, or technology cycles were designed to handle. That is why AI sovereignty has become one of the most defining leadership issues of this moment. The stakes are no longer technical; they are economic. Any loss of control can translate directly into margin pressure, compliance exposure, or outright business disruption."
According to the study, organizations that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers:
Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions. Yet, only a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency. 72% of surveyed executives say they would accept a 20% cost increase to maintain AI vendors if it improved strategic flexibility. Most surveyed organizations (73%) describe their AI environments as intentionally multi-‑vendor, yet vendor diversity in practice appears to be driven less by deliberate strategy and more by internal and operational realities1:
Independent business unit decisions (69%) and geographic necessity (69%) emerge as the leading drivers. Legacy complexity is also widely cited by respondents (57%), reflecting mergers, acquisitions, and historical decisions—common across organizations but less often the primary driver. The study also provides a roadmap for senior executives on how to build flexible, resilient, and sovereign AI systems. To view the full study, visit: https://ibm.biz/ai-sovereignty.
1 Unpublished data from the IBM Institute for Business Value The Calculus of AI Sovereignty Study (2026).
*Study Methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a global survey between February and April 2026 to examine how organizations structure control across the AI stack and how these choices relate to resilience, performance and operating economics. The study is based on responses from 1,000 senior executives responsible for AI, data, technology, or related enterprise capabilities across 16 countries and 17 industries. Additional analysis identified distinct AI control profiles by segmenting organizations based on how they structure control across data, models, infrastructure and applications, and assessing the relationship to resilience, performance and operating economics.
The IBM Institute for Business Value, IBM's thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information.
Media Contact
Marisa Conway
IBM Corporate Communications
[email protected]
68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challengingNearly all (91%) respondents report not fully understanding their AI dependencies across vendors, models, and infrastructure Organizations with the most advanced AI control capabilities protect more than half of their operating profit from AI-driven disruptions, /PRNewswire/ -- A new global study by the IBM (NYSE: IBM) Institute for Business Value finds that as enterprises embed AI deeper into core business operations, most surveyed organizations remain locked into AI systems they cannot easily change, reinforcing the growing importance of AI sovereignty to maintain business continuity and performance.
Based on insights from 1,000 senior executives, The Calculus of AI Sovereignty study* reveals that 71% of respondents say switching their primary AI vendor or model would be difficult, highlighting significant operational constraints. Additionally, 68% of surveyed executives say meeting data residency and sovereignty requirements across geographies is challenging, creating complexity in moving AI systems or data across environments. These dynamics point to growing pressure on organizations to strengthen control and oversight as AI adoption and compliance requirements expand.
While the need for control is intensifying, most organizations still lack the visibility required to act on it: 91% of those surveyed say they don't fully understand their organization's dependencies across AI vendors, models and infrastructure, limiting the ability to assess risk and plan for disruption. Surveyed leaders report an average of six AI-related disruptions over the past two years, largely driven by vendor services, yet 81% say a seven-day vendor outage would still cause severe or critical disruption, effectively halting operations.
Respondents also cite unexpected changes across the AI ecosystem, including price increases, usage restrictions, model deprecations, and performance degradation. These findings underscore the challenges enterprises face in managing AI dependencies.
Ana Paula Assis, IBM Senior Vice President and Chair, EMEA and APAC, said in the study foreword: "AI has introduced new forms of dependency that evolve faster than traditional governance, procurement, or technology cycles were designed to handle. That is why AI sovereignty has become one of the most defining leadership issues of this moment. The stakes are no longer technical; they are economic. Any loss of control can translate directly into margin pressure, compliance exposure, or outright business disruption."
According to the study, organizations that design AI systems to adapt data, models and infrastructure as conditions change – a core element of AI sovereignty – are outperforming peers:
Analysis shows that organizations with the most advanced AI control capabilities see less AI downtime and protect 55% more operating profit from AI-driven disruptions.Yet, only a minority of the organizations surveyed (7%) operate at this level, signaling a widening gap between those building adaptable AI systems and those constrained by dependency.72% of surveyed executives say they would accept a 20% cost increase to maintain AI vendors if it improved strategic flexibility.Most surveyed organizations (73%) describe their AI environments as intentionally multi-‑vendor, yet vendor diversity in practice appears to be driven less by deliberate strategy and more by internal and operational realities1:
Independent business unit decisions (69%) and geographic necessity (69%) emerge as the leading drivers.Legacy complexity is also widely cited by respondents (57%), reflecting mergers, acquisitions, and historical decisions—common across organizations but less often the primary driver.The study also provides a roadmap for senior executives on how to build flexible, resilient, and sovereign AI systems. To view the full study, visit: https://ibm.biz/ai-sovereignty.
1 Unpublished data from the IBM Institute for Business Value The Calculus of AI Sovereignty Study (2026).
*Study Methodology
The IBM Institute for Business Value, in collaboration with Oxford Economics, conducted a global survey between February and April 2026 to examine how organizations structure control across the AI stack and how these choices relate to resilience, performance and operating economics. The study is based on responses from 1,000 senior executives responsible for AI, data, technology, or related enterprise capabilities across 16 countries and 17 industries. Additional analysis identified distinct AI control profiles by segmenting organizations based on how they structure control across data, models, infrastructure and applications, and assessing the relationship to resilience, performance and operating economics.
The IBM Institute for Business Value, IBM's thought leadership think tank, combines
global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv. To receive more insights, subscribe to the IdeaWatch newsletter: https://ibm.co/ibv-ideawatch.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity, and service. Visit www.ibm.com for more information.
Media Contact
Marisa Conway
IBM Corporate Communications [email protected]
View original content to download multimedia:https://www.prnewswire.com/news-releases/ibm-study-limited-control-and-rising-dependencies-leave-enterprises-exposed-in-the-age-of-ai-302802318.html
SummaryMerck is a buy-the-dip opportunity after a pullback to $114.90, offering a compelling entry for value and income investors.MRK's robust pipeline, including 20 potential blockbusters and strategic acquisitions like Terns, positions it to bridge the Keytruda patent cliff.Normalized forward P/E of 12.0 and 3% dividend yield support a favorable risk/reward profile.MRK's strong balance sheet and expanding portfolio underpin its Buy rating.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »Sitewide Sale 2026: Get 20% Offjroballo/iStock via Getty Images
It's tempting to chase high-growth stocks, especially with the Dow Jones setting a record after the SpaceX (SPCX) IPO. However, I remain grounded on chasing long-term results over short-term swings in the market, as this can be key
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CARLSBAD, Calif.--(BUSINESS WIRE)--Protillion Biosciences, Inc., a leader in lab-in-the-loop AI drug design, today announced the signing of a multi-target discovery collaboration and license agreement with Merck, known as MSD outside the United States and Canada. The agreement combines Protillion’s proprietary platform with Merck’s global expertise in the discovery of novel therapeutic candidates.
“Merck is a global leader in biopharmaceutical innovation, making them an ideal partner to deploy our technology,” said Curtis Layton, Ph.D., CEO and Co-founder of Protillion Biosciences. “This relationship underscores the power of our platform to solve complex protein engineering challenges. We are thrilled to work alongside the Merck team to deliver better medicines to patients faster.”
Under the terms of the agreement, Protillion will receive an undisclosed upfront payment and is eligible to receive research, development, and commercial milestone payments of up to $510 million for the successful development of multiple therapies.
“Powerful emerging technologies offer the potential to transform the speed and precision with which we characterize protein landscapes and identify novel therapeutic candidates,” said Juan Alvarez Ph.D., Vice President Discovery Biologics, Merck Research Laboratories. “Protillion’s platform offers a compelling opportunity and we look forward to working with the team to advance these programs.”
Protillion’s proprietary Prot-MaP™ technology is a megascale data generation platform purpose-built to deliver massive, just-in-time training sets to protein design AI (Megascale Data + AI). This next-generation approach enables the quantitative analysis of protein libraries with unprecedented throughput, characterizing millions of variants per run and avoiding the common pitfalls of model overfitting. This enables the identification of optimized biologics with sophisticated therapeutic profiles—such as pH-dependent sweeping and multi-target specificity—that are difficult to achieve with traditional methods.
This collaboration follows a period of rapid growth for Protillion, including the recent hiring of industry veteran Bob Hollingsworth as Chief Scientific Officer. The company continues to expand its team and facilities to support its internal pipeline and high-value strategic partnerships.
For more information about Protillion Biosciences and its high-throughput protein engineering offerings, visit www.protillion.com.
Over $2 Million in Scholarships Awarded Since 2020, Alongside Mentoring, Professional Development and Internship Opportunities
Key Takeaways
Spectrum selected 15 rising college juniors for the sixth class of Spectrum Scholars. Each Scholar receives a $20,000 scholarship, mentorship and career-building support. Since 2020, the program has helped more than 100 students prepare for life after college. , /PRNewswire/ -- Spectrum announced its sixth class of Spectrum Scholars, awarding 15 college students a total of $300,000 in scholarships through a two-year program that pairs financial support with mentorship, professional development and the opportunity for a paid Spectrum internship. Since 2020, the award-winning Spectrum Scholars program has granted more than $2 million in scholarships to over 100 students with financial need, helping them gain support, experience and connections to strengthen their path from college to career.
A Scholarship – and So Much More
For the 15 rising college juniors selected this year, the program provides scholarship funding alongside access to career-building experiences inside Spectrum. Scholars receive:
A $20,000 scholarship applied across their junior and senior years One-on-one mentorship from a Spectrum employee Networking and professional development experiences The opportunity for a paid internship at one of Spectrum's Stamford, Austin, Charlotte, Denver or St. Louis offices "The next generation of talent is looking for more than a first job – they're looking for places where they can learn, contribute and grow," said Paul Marchand, Executive Vice President and Chief Human Resources Officer. "Spectrum Scholars reflects the way we think about building careers here: investing in people early, opening doors to real opportunities and helping students see the possibilities ahead."
Building Careers in Every Direction
The sixth class of Spectrum Scholars reflects a range of interests and ambitions, with students pursuing career paths including computer science, business administration, finance, marketing and other disciplines. Over the next two years, they'll spend time growing their networks, gaining hands-on work experience and preparing to kickstart their careers.
As the newest Scholars begin the program, students from previous classes also are taking the next step. Carlos Sandoval, a 2025 Spectrum Scholar and rising senior studying computer science at the Colorado School of Mines, is spending the summer at Spectrum's Denver office as a security engineering intern.
"The scholarship is an incredible benefit, but what really stood out to me was the support that comes with it," said Carlos. "My mentor has helped me make connections at Spectrum, and my internship is giving me real-world experience I can build on."
A Great Place to Start and Stay
For Scholars who go on to build their careers at Spectrum after graduation, that support continues with benefits that actually matter. Spectrum offers access to tuition-free and discounted education, high-quality and affordable health care, a market-leading retirement plan with a Company contribution of up to 9% of eligible pay annually, and the option to participate in an Employee Stock Purchase Plan. Employees also earn a minimum starting wage of at least $20 per hour, nearly three times the federal minimum, plus free and discounted Spectrum services.
For more information, visit corporate.charter.com/spectrum-scholars.
About Spectrum
Spectrum is a suite of advanced communications services offered by Charter Communications, Inc. (NASDAQ:CHTR), a leading broadband connectivity company available to nearly 59 million homes and small to large businesses across 41 states. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.
More information can be found at corporate.charter.com.
ATHENS, Greece--(BUSINESS WIRE)--HELLENiQ ENERGY and Chevron announce an agreement for Chevron’s participation in the Block 10 concession, located offshore the Kyparissiakos Gulf in the Southern Ionian Sea in Greece.
The agreement marks a further expansion of one of the most significant exploration partnerships currently developing in the Eastern Mediterranean, underscoring both companies’ commitment to unlocking the potential of Greece’s offshore energy resources.
Under the agreement, Chevron will acquire a 70% participating interest in the concession, while HELLENiQ ENERGY will retain a 30% stake, with Chevron also assuming the role of Operator, leveraging its global deepwater exploration expertise.
The partnership combines Chevron’s technical and operational capabilities with HELLENiQ ENERGY’s established domestic portfolio, supporting a balanced approach to risk-sharing while maintaining exposure to future exploration upside.
Chevron has rapidly expanded its presence in Greece’s hydrocarbon exploration portfolio with HELLENiQ ENERGY since last year, testament to its confidence in the potential of this prospective region.
With this agreement, Chevron now participates in five offshore concessions together with HELLENiQ ENERGY, reaffirming the strategic importance of the partnership between the two groups.
Block 10 is currently in its second exploration phase, where both 2D and 3D seismic studies have been completed, providing a more advanced understanding of the subsurface and supporting the evaluation of potential future drilling targets.
As exploration activity progresses, the partnership is expected to focus on further de-risking the asset through additional technical evaluation and potential drilling phases, in line with the broader development of Greece’s offshore exploration sector.
Commenting on the agreement, HELLENiQ ENERGY CEO Andreas Shiamishis said: "Chevron’s entry into Block 10 further strengthens our existing partnership and aligns the interests of both companies across all blocks in the Southern Ionian, creating a significantly larger exploration area in which we jointly participate. Flexibility within our portfolio, along with the ability to operate across a broader acreage position, are key factors in attracting leading international energy companies and unlocking potential synergies.
The work we have undertaken in Block 10 in recent years has enabled a more comprehensive assessment of its potential and supported Chevron’s entry into the wider portfolio. The adjustment of our participating interest reflects our strategy of actively managing our exploration assets as a dynamic portfolio, where ownership and structures can evolve in response to changing conditions.
The consistent execution of our strategy, combined with the significant work carried out to date and increased cooperation with the relevant authorities, has established the right conditions for transactions of this kind, creating additional potential for our Company, Greece, and the wider region.”
Andrew Deighan, Director, Exploration, Middle East and North Africa, Chevron, said: “This is another key milestone for Chevron as we continue to build momentum in the Mediterranean region, an area where we are looking to further expand and strengthen our global exploration portfolio.
Together with our partner, HELLENiQ ENERGY, and the Hellenic Republic, we are looking forward to evaluating the hydrocarbon potential of Block 10, which is in an exciting frontier area.
Chevron has significant expertise in developing oil and gas projects globally. We believe that the combination of our partner's expertise and support coupled with our resources and technology, will help to advance and unlock new energy supplies in this region.”
About HELLENiQ ENERGY
HELLENiQ ENERGY is one of the leading integrated energy companies in Southeast Europe. Established as HELLENIC PETROLEUM in 1998, with roots dating back to Greece’s first refinery in 1958, HELLENiQ ENERGY has grown to become Greece’s largest company and one of the biggest in SE Europe, by annual revenue. Vigorously pursuing an ambitious transformation strategy, it has evolved into a regional energy leader and currently has presence in 8 countries and growing international operations, with a diversified portfolio spanning across the energy value chain.
HELLENiQ ENERGY is active in the production, supply and trading of all types of energy, with an increasing focus in clean energy and renewables. Its portfolio includes refining, supply and trading of oil and petrochemical products, hydrocarbons exploration and production, as well as fuels marketing, while growing fast in the renewable energy business.
Moreover, HELLENiQ ENERGY is developing an integrated Green Utility strategic business unit, following the 100% acquisition of Elpedison – now rebranded to Enerwave, a Greek power and gas generation and supply company. This new business unit will produce and supply energy -primarily from renewables- directly to the Greek market, delivering on the Group’s commitment to a just, affordable, and secure energy transition.
Headquartered in Athens, Greece, HELLENiQ ENERGY is listed on the Athens Exchange (ticker: ELPE), with a secondary listing on the London Stock Exchange (LSE: HLPD) through Global Depository Receipts (GDRs).
Key Takeaways Chevron completed all administrative procedures to enter Greece's offshore Block 10 in the Gulf of Kyparissia.CVX will acquire a 70% stake from Helleniq Energy and advance exploration with possible drilling ahead.Chevron brings deepwater technology and expertise to evaluate Block 10's geological potential. Chevron Corporation (CVX - Free Report) has reportedly completed all administrative procedures to enter Block 10 in the Gulf of Kyparissia, offshore western Greece, marking a decisive step in the company’s expanding footprint across the Eastern Mediterranean, according to ekathimerini. The confirmation follows a joint announcement by Environment and Energy Minister Stavros Papastavrou and the head of Greece’s upstream regulatory authority, EDEYEP CEO Aristofanis Stefatos, who verified that all regulatory requirements have now been fully finalized.
The arrival of a Chevron delegation in Athens to conclude the agreement underscores the operational transition from regulatory approval to active participation. This development positions Chevron as a key international stakeholder in Greece’s offshore energy future, reinforcing the country’s growing role in regional hydrocarbon exploration and strategic energy development.
Block 10 in the Gulf of Kyparissia and Its Growing Geological ImportanceBlock 10, located in the southern Ionian Sea near the Gulf of Kyparissia, represents one of the more geologically promising offshore zones in Greece’s maritime territory. The area has attracted increasing attention from global energy companies due to its complex subsurface formations and potential hydrocarbon-bearing structures.
The inclusion of CVX into this block introduces significant technical expertise and capital investment into a region that has already undergone multiple phases of preliminary exploration. Geological and geophysical surveys conducted in earlier stages have indicated the presence of sedimentary basins that warrant further investigation through advanced seismic analysis and potential exploratory drilling.
The strategic positioning of Block 10 also enhances its importance within Greece’s broader offshore exploration framework, linking it with other concession areas in the Ionian Sea and southern Mediterranean basin.
Regulatory Completion and Institutional Oversight in Greece’s Energy SectorThe completion of administrative procedures for Chevron’s entry into Block 10 reflects the structured regulatory framework governing hydrocarbon exploration in Greece. The process, overseen by the Hellenic Hydrocarbons and Energy Resources Management Company (“EDEYEP”), ensured that all legal, environmental and technical conditions were fully satisfied before granting operational participation.
Under the leadership of Aristofanis Stefatos, EDEYEP has played a central role in maintaining strict compliance standards across all offshore concessions. The regulatory pathway included environmental impact assessments, geological validation studies and compliance reviews aligned with European Union energy directives.
Government oversight led by Environment and Energy Minister Stavros Papastavrou further reinforced the strategic importance of ensuring that foreign investment in Greece’s energy sector aligns with national resource management objectives and environmental protection standards.
Chevron’s Expanding Offshore Portfolio in GreeceChevron’s entry into Block 10 is part of a broader expansion strategy across Greece’s offshore exploration landscape. The company is already engaged in multiple other concessions south of Crete and the Peloponnese, where it holds partnerships with Helleniq Energy in several offshore blocks.
This expansion reflects Chevron’s long-term interest in the Eastern Mediterranean as a region with significant exploration potential. The company’s global exploration portfolio includes high-impact offshore regions and Greece has now become a key component of its Mediterranean strategy.
Andrew Deighan, Chevron’s director of exploration for North Africa, the Mediterranean and the Middle East, has described the agreement as an important milestone in strengthening its upstream presence in strategically significant basins. The company’s involvement introduces advanced exploration capabilities and deepwater operational expertise that are expected to accelerate the evaluation of Block 10’s geological potential.
Partnership With Helleniq Energy and Expansion of Exploration SynergiesThe transfer of a 70% stake in Block 10 from Helleniq Energy to CVX marks a significant restructuring of the concession’s operational framework. Helleniq Energy, which remains a key domestic energy player in Greece, continues to participate in the exploration consortium, ensuring continuity of local expertise and operational integration.
Andreas Siamisis, CEO of Helleniq Energy, said the expanded partnership broadens the exploration area, improving opportunities for seismic analysis, geological modeling and resource evaluation.
The collaboration between CVX and Helleniq Energy is expected to strengthen Greece’s offshore exploration capacity by combining international technological leadership with domestic operational knowledge.
Advancing From Geological Studies to Potential Drilling PhasesExploration activities in Block 10 have already progressed through several foundational stages, including geological mapping, geophysical surveys and environmental baseline assessments. These early-phase studies have provided a detailed understanding of subsurface structures and potential hydrocarbon systems within the concession area.
The next stage of development involves evaluating whether conditions justify advancing toward exploratory drilling. This decision will be based on integrated geological models, seismic data interpretation and environmental compliance considerations.
Chevron’s involvement introduces advanced deepwater exploration technologies, including high-resolution seismic imaging and reservoir modeling systems, which significantly enhance the accuracy of subsurface analysis. These capabilities are essential for determining the commercial viability of potential hydrocarbon discoveries in complex offshore environments such as the Ionian Sea.
Greece’s Role in the Eastern Mediterranean Energy ArchitectureThe entry of CVX into Block 10 also carries broader implications for Greece’s position within the Eastern Mediterranean energy landscape. The region has become increasingly important due to its potential hydrocarbon resources and strategic location within global energy supply routes.
Greece’s approach to offshore development continues to balance resource exploration with regulatory oversight and environmental responsibility, positioning the country as a stable and attractive destination for international energy investment.
Economic Impact and Long-Term Investment PotentialCVX's participation brings significant foreign direct investment to Greece's upstream energy sector, boosting technology, exploration efficiency and the country's appeal to global energy companies. Its partnership with Helleniq Energy combines international expertise with local capabilities, supporting long-term resource development and economic value creation. The project is also expected to benefit related industries, including maritime services, engineering, logistics and offshore support operations.
Technological Advancement and Exploration CapabilitiesChevron’s entry into Block 10 introduces some of the most advanced offshore exploration technologies currently available in the global energy sector. These include deepwater seismic imaging systems, advanced reservoir characterization tools and integrated digital modeling platforms that enhance decision-making accuracy.
These technologies play a crucial role in reducing exploration uncertainty and improving the efficiency of hydrocarbon detection in complex geological environments. Their application in Block 10 is expected to significantly improve the quality of subsurface data interpretation and accelerate exploration timelines.
Conclusion: A Defining Development in Greece’s Offshore Energy FutureChevron’s entry into Block 10 in the Gulf of Kyparissia marks an important step in Greece’s offshore energy strategy, with full regulatory approval completed under national authorities. The CVX-Helleniq Energy partnership will now move into advanced exploration and possible drilling, strengthening Greece’s role in the Eastern Mediterranean energy sector. The project also highlights strong international investment interest and cooperation between global energy firms and state institutions in responsible offshore development.
CVX's Zacks Rank & Key PicksCurrently, CVX has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Cenovus Energy (CVE - Free Report) , Murphy USA (MUSA - Free Report) and Marathon Petroleum (MPC - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cenovus Energy is valued at $52.86 billion. It is a Canadian integrated energy company that produces, refines and markets crude oil, natural gas and petroleum products. Cenovus Energy operates major oil sands and refining assets across Canada and the United States, making it one of North America's leading energy producers.
Murphy USA is valued at $11.5 billion. The company is one of the largest independent gasoline and convenience store retailers in the United States, operating a network of stores primarily located near Walmart locations. Murphy USA focuses on offering low-cost fuel and everyday convenience products, supported by a strong loyalty program and disciplined capital-allocation strategy.
Marathon Petroleum is valued at $76.95 billion. It is one of the largest downstream energy companies in the United States, operating extensive refining, transportation and fuel marketing networks. Through its refining assets and retail fuel brands, Marathon Petroleum supplies gasoline, diesel and other petroleum products to consumers and businesses nationwide.
At $180.40, Chevron (NYSE:CVX | CVX Price Prediction) sits in a wait-and-see zone for many analysts. The integrated major has rallied hard off last summer’s lows, but a single quarter of cash flow data has changed how the dividend math looks.
Chevron is the second-largest U.S. integrated oil company, with upstream production now running at 3,858 MBOED after the Hess deal closed last summer. U.S. output has cleared 2 million barrels per day for three straight quarters, the Permian has hit 1 million BOE/day, and Kazakhstan’s TCO project is at nameplate.
The stock has retraced from a 52-week high of $212.76 as Brent has fallen from $138.21 in early April to $97.46 currently.
The Hess-Powered Cash Machine Argument Bulls see a self-funding growth story. Production grew 15% year over year in Q1, adjusted EPS of $1.41 crushed the $0.97 consensus by 45.56%, and management is on track for $3 to $4 billion in structural cost reductions by year-end.
Valuation looks reasonable against the growth profile. The forward P/E of 13, EV/EBITDA of 10, and PEG of 0.755 suggest the market is pricing steady-state output, not the Guyana and Permian growth runway. Analysts carry a $216.04 average price target, implying 19.8% upside, with 18 of 25 analysts at Buy or Strong Buy.
The Negative Free Cash Flow Argument Bears point to Q1 2026 free cash flow of negative $1.549 billion, operating cash flow collapse of 51.55% year over year to $2.514 billion, while Chevron paid out $3.526 billion in dividends plus $2.5 billion in buybacks. The gap was funded with debt.
The net debt ratio climbed to 17.9% from 10.4% pre-Hess. Full-year FCF coverage of the dividend has compressed from 3.42x in 2022 to 1.30x in 2025. With the EIA projecting Brent averaging $89/b in Q4 and $79/b in 2027, the FCF math gets harder.
The Patience Argument The hold case sits between these. Q1 cash flow was inflated by $2.9 billion of unfavorable timing effects, a $360 million legal reserve, and $223 million in FX headwinds that should reverse. Full-year 2025 still produced $16.6 billion in FCF and a 39th consecutive dividend increase.
Fresh capital here underwrites both falling forward oil prices and a payout ratio exceeding organic cash generation. Watching the next two quarters of FCF prints, Brent’s path toward the EIA’s $79 average in 2027, and any movement on the buyback cadence is the right posture.
What the Numbers Say Chevron trades at $180.40 against a consensus target of $216.04, implying roughly 19.8% upside. Coverage is wide with 25 analysts in the consensus.
Strong Buy: 5 Buy: 13 Hold: 6 Sell: 1 Shares are up 20.61% year to date versus 10.69% for the S&P 500, and up 28.82% over the past year against the index’s 26.44%. The 3.72% dividend yield and trailing P/E of 33 on $5.75 in TTM EPS tell the cyclical story. At $180.40, Chevron is a Hold. The bull and bear cases are both grounded in real numbers, and neither is decisive at this price.
The Verdict: Patience Over Conviction Buying fresh means underwriting FCF recovery at the same time the EIA expects Brent to fall toward $79 in 2027. Selling means walking away from a 39-year dividend streak, double-digit production growth, and synergy capture barely started.
Existing holders are being paid a reliable income stream to wait. Two clean prints of positive FCF coverage above 1.3x, a moderation in buyback pace, or a cyclical pullback that anchors the asset near key technical support at $155.00 would strengthen the bullish case. A second consecutive negative-FCF quarter alongside Brent breaking below $80 would strengthen the bearish case.
The 3.72% yield pays holders to wait, the beta of 0.472 keeps drawdowns contained, and the structural cost program should add visible margin support over the next two quarters. The cost of acting prematurely is higher than standing pat.
Chevron at $180 looks fundamentally intact but priced rich enough that a payout metric turning red matters.
Beyond Meat (BYND 2.51%), a producer of plant-based meat products, went public seven years ago at $25 per share. Today, its stock trades at less than $1. Let's see why Beyond Meat's stock collapsed -- and if it will bounce back or get delisted over the next three years.
What happened to Beyond Meat? From 2021 to 2025, Beyond Meat's revenue declined from $465 million to $276 million without a single year of growth. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from negative $113 million to negative $178 million.
Image source: Getty Images.
Beyond Meat struggled during the pandemic as fewer retailers and restaurants bought its products, while cost-conscious consumers opted for cheaper animal-based meat products. Aggressive competitors, including Impossible Foods and Tyson, carved up the fragmented and shrinking market. Inflation dashed its hopes for a post-pandemic recovery, and a failed jerky-making joint venture with PepsiCo exacerbated its slowdown.
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Beyond Meat liquidated its inventory with aggressive markdowns to offset that pressure, but that strategy reduced its gross margin from 25.2% in 2021 to 2.8% in 2025.
By 2028, analysts expect Beyond Meat's revenue to decline to $253 million without a single year of growth. However, they expect its adjusted EBITDA to improve to negative $74 million as it cuts costs to right-size its business.
Beyond Meat's main turnaround strategy is to rebrand itself as a broader wellness brand with its "Beyond" functional drinks and other food products. It also aims to stabilize its margins by discontinuing its weaker products, implementing selective price increases, exiting weaker markets, and expanding into stronger regions, such as Western Europe.
But with an enterprise value of $599 million (including its $492 million in total liabilities), Beyond Meat still isn't a bargain at three times next year's sales. It's also increased its share count by 620% over the past three years, and that dilution should continue for the foreseeable future.
Even if Beyond Meat matches analysts' estimates through 2028, it stabilizes its business, and its revenue growth flatlines instead of declining in 2029, it would still seem overvalued at three times this year's sales. If it trades at just one times sales -- which would be reasonable for a zero-growth company -- its stock could actually decline nearly 60% over the next three years.
Beyond Meat isn't down for the count yet, but it's hard to believe its long-shot turnaround strategies will work. Unless it implements a reverse stock split to boost its stock price above $1 again, it could be delisted by 2029.
Key Takeaways CAT posted 22% Q1 2026 revenue growth and expects low double-digit revenue growth for 2026.Caterpillar raised its long-term revenue CAGR target to 6-9% through 2030 from 5-7%.Komatsu expects lower fiscal 2026 sales, profit and net income amid tariff and volume pressures. Caterpillar Inc. (CAT - Free Report) and Komatsu Ltd. (KMTUY - Free Report) are among the world’s leading manufacturers of construction and mining equipment, with Caterpillar holding the top position and Komatsu close behind. Both companies are globally recognized for their signature yellow machinery and serve diverse end markets such as infrastructure, construction, mining, oil and gas and industrial applications.
Illinois-based Caterpillar has a market capitalization of $430 billion, whereas Tokyo, Japan-based Komatsu has a market capitalization of $38 billion. Around 80% of KMTUY’s revenues are generated outside of Japan, underscoring its strong international presence.
Both are closely watched by investors to gauge the health of the broader manufacturing and infrastructure landscape, especially during periods of economic uncertainty. The question is which stock you should put your money on. To find out, let us dive into the fundamentals, growth prospects and challenges of both Caterpillar and Komatsu.
The Case for CaterpillarCaterpillar has delivered positive revenue growth over the past three quarters and earnings growth in the past two. In the first quarter of 2026, the company generated roughly $17.4 billion in revenues, up 22% year over year, driven by higher sales volumes across its businesses. Adjusted earnings per share climbed 30.4% to $5.54, accelerating sharply from the modest 0.4% increase reported in fourth-quarter 2025. The performance was particularly notable given the estimated $600 million tariff impact 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%.
The company has also raised its long-term revenue CAGR target to 6-9% through 2030, compared with its earlier 5-7% outlook shared at Investor Day. Operational targets include growing Construction Industries’ sales to users by 1.25x from 2024 levels by 2030, tripling autonomous trucks in Resource Industries, and increasing Power Generation sales from 1.3x to more than 3x.
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 KomatsuKMTUY’s revenues in the fourth quarter of fiscal 2025 (ended March 31, 2026) came in at around JPY 1.217 billion ($7.76 billion), marking a 6% rise on a year-over-year basis. Komatsu’s Construction, Mining & Utility Equipment sales increased 6.5% in the quarter, while Industrial Machinery & Others sales decreased 1.2%. The company reported earnings per share of 75 cents, which were down 18% year over year. Although Komatsu has been delivering sales growth in the last two quarters, earnings continue to remain under pressure.
For fiscal 2025, Construction, Mining & Utility Equipment sales inched up 0.2%, but the metric was mainly led by higher prices, which helped offset the impact of low volumes. Segment profit declined due to higher costs reflecting tariffs.
Komatsu anticipates Construction, Mining & Utility Equipment sales to dip 0.4% in fiscal 2026 as well, reflecting lower sales volumes citing the situation in the Middle East. Growth in North America will be offset by lower sales in the Middle East and Asia. Segment profit will decrease 10.4%. Industrial Machinery and Others sales will inch up 0.1% while segment profit will be down 2.5%. Net income attributable to Komatsu will be down 15.5%.
Around 50% of products sold in the United States are imported (mainly from Japan and China), making it vulnerable to the U.S tariffs. Komatsu expects to suffer annual negative impacts of 37.8 billion yen ($0.24 billion) from increased costs linked to U.S. tariffs.
Over the past decade, Komatsu has invested more than $5 billion in the North American manufacturing industry by adding companies to the Komatsu group. The company has invested more than $650 million in North American infrastructure to upgrade facilities and strengthen operational capabilities. Its recent acquisition of remanufacturing specialist SRC of Lexington, Inc., will help strengthen its remanufacturing capabilities in North America and tap the growing demand for remanufactured components.
Over the long term, Komatsu remains well-positioned due to its focus on technological innovation, automation and portfolio expansion. It is accelerating the next generation of autonomous mining equipment through the advancement of a software-defined vehicle strategy.
Aftermarket business sales account for about 50% of sales in construction, mining and utility equipment and around two-thirds of mining equipment revenues. The company plans to build its aftermarket business alongside new equipment sales and establish a profit structure less vulnerable to fluctuations in demand for new equipment.
How do Estimates Compare for CAT & KMTUY?The Zacks Consensus Estimate for Caterpillar’s 2026 earnings is $24.62 per share, indicating year-over-year growth of 29.2%. The estimate for 2027 of $30.61 suggests a rise of 24.3%. EPS estimates for Caterpillar for both 2026 and 2027 have been trending north over the past 60 days.
The Zacks Consensus Estimate for Komatsu’s fiscal 2026 earnings is $2.59 per share, indicating a year-over-year fall of 5.8%. The fiscal 2027 estimate of $2.83 implies growth of 9.27%.
Image Source: Zacks Investment Research
Both estimates for Caterpillar for fiscal 2026 and 2027 have been trending north over the past 30 days. The estimates for Komatsu for fiscal 2026 and fiscal 2027 have moved down.
Caterpillar & Komatsu: Price Performance, Valuation & Other ComparisonsIn the past year, CAT stock has gained 161.1%, whereas KMTUY has gained 39%.
Image Source: Zacks Investment Research
Caterpillar is currently trading at a forward 12-month earnings multiple of 34.13X. Komatsu stock is trading at a forward 12-month earnings multiple of 16.10X.
Image Source: Zacks Investment Research
CAT’s ROE 48.21% is higher than KMTUY’s 10.83%.
Image Source: Zacks Investment Research
Caterpillar or Komatsu: Which Stock is Better for Your Portfolio?Both Caterpillar and Komatsu are industry leaders with strong global footprints, diversified end markets and growing investments in automation, digital technologies and aftermarket services. Over the long term, both companies stand to benefit from infrastructure spending, mining activity and the increasing adoption of autonomous equipment.
Caterpillar has delivered revenue growth over the past three quarters and earnings growth in two quarters, with expectations of low double-digit revenue growth in 2026. Komatsu, while strategically well-positioned and actively expanding its North American footprint and aftermarket business, is facing a more challenging operating environment. Higher tariff-related costs, weaker profitability trends and management’s expectation for lower sales and net income in fiscal 2026 are weighing on its near-term prospects.
Although Komatsu trades at a significantly lower valuation, Caterpillar’s superior earnings momentum, stronger profitability, higher return on equity and more favorable estimate trends justify its premium multiple. For investors seeking the stronger combination of growth, earnings visibility and execution, Caterpillar appears to be the more compelling choice at present.
Caterpillar currently sports a Zacks Rank #1 (Strong Buy) while Komatsu currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 16:
Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 12.2% over the last 60 days.
Pagaya Technologies has a price-to-earnings ratio (P/E) of 4.77 compared with 8.40 for the industry. The company possesses a Value Scoreof A.
Newmont Corporation (NEM - Free Report) : This gold producer and exploration company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 16% over the last 60 days.
Newmont has a price-to-earnings ratio (P/E) of 5.76 compared with 9.80 for the S&P. The company possesses a Value Score of A.
RBB Bancorp (RBB - Free Report) : This bank holding company for Royal Business Bank carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 13.5% over the last 60 days.
RBB Bancorp has a price-to-earnings ratio (P/E) of 10.53 compared with 13.10 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Newmont Corporation (NEM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this gold and copper miner have returned -3.7%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Mining - Gold industry, which Newmont falls in, has lost 1.9%. 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Newmont is expected to post earnings of $2.25 per share, indicating a change of +57.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.9% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $9.91 points to a change of +43.8% from the prior year. Over the last 30 days, this estimate has changed +4.6%.
For the next fiscal year, the consensus earnings estimate of $10.76 indicates a change of +8.7% from what Newmont is expected to report a year ago. Over the past month, the estimate has changed +0.7%.
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 #1 (Strong Buy) for Newmont.
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.
For Newmont, the consensus sales estimate for the current quarter of $6.19 billion indicates a year-over-year change of +16.4%. For the current and next fiscal years, $27.25 billion and $29.69 billion estimates indicate +20.2% and +9% changes, respectively.
Last Reported Results and Surprise HistoryNewmont reported revenues of $7.31 billion in the last reported quarter, representing a year-over-year change of +45.8%. EPS of $2.9 for the same period compares with $1.25 a year ago.
Compared to the Zacks Consensus Estimate of $6.36 billion, the reported revenues represent a surprise of +14.88%. The EPS surprise was +40.1%.
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.
Newmont is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe 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 Newmont. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Newmont Corporation (NEM - Free Report) .
Newmont currently has an average brokerage recommendation (ABR) of 1.43, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.43 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 17 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 73.9% and 8.7% of all recommendations.
Brokerage Recommendation Trends for NEM
Check price target & stock forecast for Newmont here>>>
The ABR suggests buying Newmont, 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.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of 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.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
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.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
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 NEM?Looking at the earnings estimate revisions for Newmont, the Zacks Consensus Estimate for the current year has increased 4.6% over the past month to $9.91.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar 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 #1 (Strong Buy) for Newmont. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Newmont may serve as a useful guide for investors.
Crude began unwinding months of conflict premium after the Trump administration claimed that the Strait of Hormuz has reopened as part of an agreement reached with Iran on Sunday.
Yet three corners of the market that the war hammered have still not climbed back to where they traded the day it began.
West Texas Intermediate slid to around $80 a barrel on Tuesday, its lowest since early March, after President Donald Trump said on social media that the deal with Iran was complete and the U.S. naval blockade would be lifted.
But financial markets are sending a different signal beneath the rally.
The Laggards The Rally Left BehindWall Street has continued to hit record highs since the U.S. attacked Iran in February. The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 10% throughout that time.
But not all sectors have shared in the rally, with some of the market’s biggest laggards posting steep losses.
Data from CountryETFTracker, which measures performance against the Feb. 27 starting point of the conflict, shows three U.S. industry funds still in negative territory nearly four months later. They are the laggards the recovery left behind:
The VanEck Gold Miners ETF (NYSE:GDX) is the worst of the group, down 26.39% since Feb. 27. The VanEck Uranium and Nuclear Energy ETF (NYSE:NLR) has lost 15.01%, ranking as the second-worst industry over the same stretch. And the third-worst performer has been the iShares U.S. Home Construction ETF (NYSE:ITB), which is off 9.70%. Gold Miners Took A Double HitMminers were squeezed on both sides during the Iran war. Gold has fallen about 17% from its Feb. 27 level, and silver is down roughly 24% as rising Treasury yields lifted the opportunity cost of holding metals that pay no income.
At the same time, the war drove energy costs higher, inflating the fuel and power bills that dominate mining budgets. Lower output prices met higher input costs.
Shares of Newmont Corp. (NYSE:NEM), the world’s largest gold miner, remain 18% below their pre-war levels, though they rallied 5.6% on Monday after President Donald Trump announced a peace deal.
Rates Crushed Nuclear And HousingNuclear and uranium names were caught in the same vise.
The companies that build reactors and dig for uranium have cash flows that are years or decades in the future, making them acutely sensitive to interest rates.
When the oil shock pushed inflation to a 4.2% annual rate in May and forced markets to price out Federal Reserve cuts, the 10-year Treasury yield climbed above 4.5% and the present value of those distant payoffs shrank.
Homebuilders ran into the same wall.
Higher long-term yields feed straight into mortgage rates, and richer mortgage rates cool buyer demand.
The rate backdrop punished nuclear housing, too.
The Reversal TestThe common thread is rates, and rates were a function of the war. The conflict pushed oil higher, oil pushed inflation higher and inflation pushed yields higher.
Every link in that chain leaned on these three groups. Now the chain is running in reverse.
If the cease-fire holds and oil keeps sliding, May’s inflation print may mark the ceiling of this cycle, and the yield pressure that flattened gold miners, nuclear and homebuilders could ease with it.
What’s Next?The Federal Reserve delivers its next decision on Wednesday, Kevin Warsh‘s first as chair, with fresh projections that will tell investors how far the reversal might run.
Even with the agreement reached on Sunday, the situation remains fragile. Iran has put Israel on notice that further military action in Lebanon or any ongoing presence on Iranian soil would be considered a breach of Tehran’s newly signed agreement with Washington.
Image: Shutterstock
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In contrast to the broader market, Newmont (NEM +2.50%) stock was a gainer on Tuesday. The precious metals miner booked a gain of nearly 3% on the day, in contrast to the S&P 500 index's 0.6% slide, on the back of a comprehensive yet seemingly smooth set of transitions in the C-Suite.
Changes at the top Just after market close on Monday, Newmont announced the appointment of a new CFO, COO, and CTO. All appointments are effective on Wednesday, July 1.
Image source: Getty Images.
The incoming CFO is Brian Tabolt, a company veteran who served as its chief accounting officer and its group head, finance. He joined Newmont in 2021 and, at one point, served as its interim CFO. Previous to his time at the miner, he served as chief accounting officer at brewer Molson Coors.
Mark Rodgers is to be the new COO, and he's also a current Newmont executive. Having joined the company in 2020, he's held a variety of managerial roles, including his current position as managing director for Africa and Asia Pacific.
Finally, the CTO-to-be is David Thornton, the company's current managing director, Americas. Of the three new leaders, he has had the longest tenure at Newmont, joining in 2016. Prior to his time there, he held engineering and managerial positions at other mining companies, including Barrick Mining.
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Marching orders In the press release touting the new appointments, Newmont wrote that they bolster its "ability to execute its strategy with clarity and focus."
"With strong alignment across operations, finance and technical functions, the company is well positioned to improve performance, maintain cost discipline, execute effectively and deliver long-term value for shareholders," it added.
For shareholders, it's encouraging not only that the company seems to be effecting a trio of smooth transitions, but also that it has a deep enough "bench" within its ranks to promote from its own workforce. Now we'll see how effective the reconstructed top management team can be.
NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance.
On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Carnival Corporation Ltd. (NYSE:CCL) will release its second quarter earnings report before the opening bell on Tuesday, June 23.
Analysts expect the Miami, Florida-based grocer to report quarterly earnings of 34 cents per share, down from 35 cents per share in the year-ago period. The consensus estimate for Carnival's quarterly revenue is $6.69 billion. It reported $6.33 billion last year, according to Benzinga Pro.
On March 27, Carnival issued its second-quarter adjusted EPS and FY2026 adjusted EPS guidance below estimates.
Carnival shares rose 3.8% to close at $29.18 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period.
Considering buying CCL stock? Here’s what analysts think:
Photo via Shutterstock
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Carnival (CCL - Free Report) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended May 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on June 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis cruise operator is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -2.9%.
Revenues are expected to be $6.63 billion, up 4.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.24% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Carnival?For Carnival, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.94%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Carnival will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Carnival would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of +11.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Carnival appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Carnival (CCL - Free Report) ended the recent trading session at $30.90, demonstrating a +2.59% change from the preceding day's closing price. This change outpaced the S&P 500's 0.57% loss on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 1.15%.
Coming into today, shares of the cruise operator had gained 20.92% in the past month. In that same time, the Consumer Discretionary sector gained 2.7%, while the S&P 500 gained 2.14%.
The upcoming earnings release of Carnival will be of great interest to investors. The company's earnings report is expected on June 23, 2026. The company's upcoming EPS is projected at $0.34, signifying a 2.86% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.63 billion, indicating a 4.82% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $27.84 billion. These totals would mark changes of -1.33% and +4.57%, respectively, from last year.
Any recent changes to analyst estimates for Carnival should also be noted by investors. 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, 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. The Zacks Consensus EPS estimate has moved 0.51% higher within the past month. Currently, Carnival is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Carnival is currently being traded at a Forward P/E ratio of 13.55. This indicates a discount in contrast to its industry's Forward P/E of 16.46.
One should further note that CCL currently holds a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.37 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 189, this industry ranks in the bottom 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.
On June 16, 2026, we delve into the DCF analysis for Synopsys Inc SNPS , a company that has seen a price performance decline of 4.0% over the past week and 9.6% over the past month. The current market price stands at $454.38, with a market cap of $87,004 million.
DCF Earnings-based intrinsic value of $394.50 vs current price ($454.38) indicates a margin of safety of -15.2%. DCF FCF-based intrinsic value of $344.67 suggests a second opinion of modestly overvalued status. GF Score™ of 95/100 indicates high reliability of the DCF inputs. What Is SNPS Worth? DCF Earnings-Based Model The DCF earnings-based model for Synopsys Inc utilizes a two-stage valuation approach. In the first stage, we project the company's earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are crucial for determining the intrinsic value of the stock.
Parameter Value Current EPS (TTM, excl. non-recurring) $13.41 10-Year Growth Rate 19.1% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS is expected to grow at an annual rate of 19.1%, which is then discounted at a rate of 11%. The terminal phase (Years 11-20) assumes a slowdown in growth to a terminal rate of 4%, also discounted at 11%. Below is a summary of the calculations:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 19.1%, discounted at 11% $201.61 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $192.88 Intrinsic Value Growth + Terminal $394.49 With the current price at $454.38 compared to the intrinsic value of $394.50, we find that Synopsys Inc is fairly valued, with a margin of safety of -15.2%. It is important to note that GuruFocus uses EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the SNPS DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Synopsys Inc is calculated at $344.67. When comparing this to the earnings-based intrinsic value of $394.50, we see a divergence in the valuation perspectives. The FCF model suggests that the stock is modestly overvalued, with a margin of safety of -31.8%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Synopsys Inc stands at $653.38, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure, calculated from historical trading multiples, past business growth, and future performance estimates. When we analyze the three models, we observe that the DCF earnings-based model indicates fair valuation, the FCF model suggests modest overvaluation, while GF Value™ indicates that the stock is undervalued. For more details, visit the GF Value™ page.
What Does SNPS's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021.
Metric Rating GF Score™ 95/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 8/10 With a predictability rank of 2/5 stars, it indicates that the DCF model may be less reliable for this stock. For more insights, visit the SNPS stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Synopsys Inc, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In summary, the three valuation models present a mixed picture for Synopsys Inc. The DCF earnings model suggests fair valuation, while the DCF FCF model indicates modest overvaluation, and the GF Value™ suggests the stock is undervalued. Overall, the consensus points towards a fair valuation status. For the full DCF analysis, visit the SNPS DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is SNPS's intrinsic value based on DCF?
According to our analysis, the earnings-based intrinsic value is $394.50, while the FCF-based intrinsic value is $344.67.
Is SNPS overvalued or undervalued?
The DCF earnings model suggests it is fairly valued, while the FCF model indicates it is modestly overvalued. The GF Value™ suggests it is undervalued, creating a mixed consensus.
How reliable is the DCF model for SNPS?
Given its predictability rank of 2/5, the DCF model may be less reliable for Synopsys Inc compared to stocks with higher predictability ratings.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Artificial intelligence has the potential to cause a huge shift in the software industry. That's created a ton of uncertainty for SaaS stocks, leading the market to sell off shares in most of those companies earlier this year.
While some have recovered, they're still standing on shaky ground. Companies demonstrating strong momentum in integrating AI into their products and selling AI services should produce accelerating revenue growth and help overcome the fears that struck the market earlier this year.
One such stock set to produce AI-driven, accelerating revenue growth is Salesforce (CRM 1.74%). Despite solid first-quarter results, shares now trade below their levels ahead of the report. That could make the stock a fantastic opportunity for investors willing to weather the ongoing SaaS-pocalypse.
Image source: Getty Images.
Revenue acceleration is around the corner The metric for investors to keep their eye on at Salesforce is its artificial intelligence-related revenue. That includes Agentforce, its platform for creating AI agents, and Data 360, its data platform that unifies information from across various applications and supports AI services.
Last quarter, the two combined to produce $3.4 billion in annual recurring revenue, up more than 200% year over year. That figure notably includes $1.1 billion from its Informatica acquisition, so organic growth is close to 100%. Agentforce sales themselves passed the $1 billion annualized run rate threshold, climbing 205% year over year.
AI-related revenue remains a tiny portion of Salesforce's overall sales. However, the segment's growth accounts for a substantial share of incremental sales. As the business continues to grow rapidly at scale, it should accelerate overall revenue growth. In fact, management said investors should expect revenue growth to accelerate from the 10% to 11% growth it's experiencing in the first half of the year by the second half of fiscal 2027. That outlook is further supported by 14% growth in current remaining performance obligations in the first quarter.
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Management updated its full-year 2027 guidance to a slightly narrower range of $45.9 billion to $46.2 billion in revenue for the year, up 11% at the midpoint, and earnings per share between $14.06 and $14.12. At the midpoint of its EPS guidance, the stock trades for less than 12 times this year's earnings expectations. Meanwhile, management expects it can grow its top line at an annualized rate of around 11% through fiscal 2030 while expanding its operating margin. It's no wonder it executed an accelerated share repurchase last quarter to buy back a total of $27 billion worth of the stock. Shares are cheap.
If management continues to deliver AI services and accelerate revenue growth through the back half of the year, the market may be forced to respond by boosting the share price. For now, investors appear to be in a wait-and-see mode. But the downside risk appears much smaller than the upside potential at the current price.
Key Takeaways Salesforce generated a record Q1'27 operating cash flow of $6.7B and free cash flow of $6.6B.Salesforce launched a $25B accelerated share repurchase, cutting diluted share count 10% YoY.CRM ended the quarter with nearly $11.8B in cash and marketable securities to support returns. Salesforce, Inc. (CRM - Free Report) has become one of the strongest cash-generating companies in the software industry, giving it significant flexibility to reward shareholders while continuing to invest in growth initiatives. The company’s robust cash flow performance is increasingly becoming a key part of the investment story.
In the first quarter of fiscal 2027, Salesforce generated a record $6.7 billion in operating cash flow and $6.6 billion in free cash flow. This strong cash generation was supported by healthy demand for its cloud applications, expanding adoption of AI offerings such as Agentforce and continued focus on operational efficiency. Revenues increased 13% year over year to $11.13 billion during the quarter, demonstrating that the company is still growing while generating substantial cash.
Salesforce has been using this financial strength to aggressively return capital. During the first quarter, the company launched a massive $25 billion accelerated share repurchase program, representing half of its authorized $50 billion buyback plan. The repurchase reduced diluted share count by 10% year over year, helping boost earnings per share and increasing the ownership stake of existing investors.
Salesforce’s balance sheet also remains healthy. The company ended the quarter with nearly $11.8 billion in cash and marketable securities, providing ample liquidity to fund strategic investments, acquisitions and shareholder returns simultaneously. The company’s growing profitability further supports this strategy. First-quarter GAAP operating margin expanded 130 basis points to 21.1%, while non-GAAP operating margin improved 250 basis points to 34.8%. These improvements indicate that Salesforce is converting a larger portion of revenues into earnings and cash.
With strong cash flow, rising margins and a large buyback authorization in place, Salesforce appears well-positioned to continue delivering meaningful shareholder returns while pursuing long-term growth opportunities. The Zacks Consensus Estimate for CRM’s fiscal 2027 revenues is pegged at $46.09 billion, indicating a year-over-year increase of 11%.
How Do Salesforce’s Peers Compare on Shareholder Returns?Two major Salesforce competitors that also generate strong cash flows and return capital to shareholders are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) .
Microsoft remains one of the strongest cash generators in the technology sector. In the first nine months of fiscal 2026, the company produced more than $127 billion in operating cash flow and $47 billion in free cash flow. This financial strength allows Microsoft to maintain a balanced capital return strategy through both dividends and share repurchases. During the first three quarters of fiscal 2026, the company returned more than $37 billion to shareholders through buybacks and dividends. Its expanding cloud business, led by Azure’s 40% revenue growth in the latest reported quarter, continues to support rising cash generation and shareholder-friendly actions.
Oracle is also increasing shareholder returns as its cloud business scales. In fiscal 2026, Oracle generated approximately $32 billion in operating cash flow. The company has consistently repurchased shares while maintaining a quarterly dividend. In fiscal 2026, it returned $5.3 billion to shareholders. Oracle’s cloud infrastructure revenues surged nearly 77% year over year in fiscal 2026, helping improve cash flow generation. The company has increasingly used this cash to support both growth investments and shareholder rewards.
While Microsoft and Oracle have impressive capital return programs, Salesforce’s recent $50 billion buyback authorization highlights its growing confidence in future cash generation and commitment to enhancing shareholder value.
Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 37.7% year to date, while the Zacks Internet – Software industry has fallen 14.4%.
Salesforce YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.25, significantly below the industry’s average of 25.65.
Salesforce Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Salesforce Inc (NYSE:CRM, XETRA:FOO) has agreed to acquire customer agent company Fin for approximately $3.6 billion, a deal Wedbush says confirms the company is moving faster and more aggressively than most expected to lock up the agentic AI market.
The move hasn’t surprised analysts, who argue that with roughly $12 billion on its balance sheet and three billion-dollar-plus acquisitions completed in the past year alone, Salesforce is steadily shifting toward buying capability rather than building it. The firm maintains its Outperform rating and $325 price target.
What makes Fin a particularly compelling get, in Wedbush's view, is that it comes with proof of performance. Fin's Apex model, a proprietary AI system purpose-built for customer support, already resolves an average of 76% of support queries end-to-end. That gives Salesforce something tangible to bring to enterprise customers who are still weighing what AI can actually deliver, and it slots directly into Agentforce, the platform Wedbush sees as Salesforce's long-term bet on owning the agentic AI layer of enterprise software.
The market opportunity underpinning that bet is significant. Wedbush estimates around 40% of work at Fortune 1000 companies will be touched by AI by 2029, and views Salesforce as one of the best-positioned vendors to capture that shift. Fin's installed base of more than 30,000 companies across SMB and enterprise segments adds further reach to an already formidable platform.
Wedbush doesn't expect the dealmaking to stop here. With CEO Marc Benioff focused on building a unified stack spanning data, security, governance, and AI, the firm anticipates more transactions ahead as Salesforce pushes deeper into fiscal 2027 and beyond.
The Fin acquisition is expected to close in the company's fiscal fourth quarter of 2027, with no changes to full-year financial guidance or its capital return program.
Salesforce stock continues its strong downward trend this year, and is now hovering near its lowest level since 2023. CRM has plunged by 55% from its all-time high, with its market capitalization falling from $346 billion to $134 billion, a $212 billion wipeout.
The CRM stock price has plunged this year amid concerns that the software industry is at risk of a major disruption by AI companies. Indeed, top companies like Intuit, The Trade Desk, Adobe, Workday, Autodesk, and ServiceNow are among the worst laggards in the S&P 500 Index this year.
Salesforce has also faced the challenge of slowing organic growth, with the management pivoting towards acquisitions. It continued this trend this week after it announced a $3.6 billion buyout of Fin, a company that leverages AI in customer engagement.
Before acquiring Fin, the company spent billions of dollars on acquisitions. Most recently, it spent $8 billion to acquire Informatica. It also paid $27.7 billion for Slack, $15.7 billion for Tableau, $6.5 billion for MuleSoft, and $2.5 billion for ExactTarget. In addition, the company spent $1.9 billion to acquire Own Company and $1.35 billion for ClickSoftware.
Salesforce has spent over $65 billion in acquisitions over the years. As such, with its market capitalization standing at $135 billion, it means that its growth through acquisitions approach has largely backfired. Indeed, the company bought Quip in 2016 in a $518 million deal and is now in the process of winding it down.
The most recent results showed that Salesforce’s revenue jumped by 13% in the first quarter to $11.1 billion. Its organic growth was much lower than that as it included a $444 million revenue from Informatica.
With Informatica’s contribution, analysts expect that the company’s revenue will grow by 11% this year to $46 billion. It will then make $50 billion next year, up by 9.75% YoY.
On the positive side, Salesforce is buying tons of stock. It announced a $25 billion repurchase program after it returned $27.5 billion last year.
At the same time, Salesforce stock has become highly undervalued. Its forward price-to-earnings ratio has moved to 11.7, much lower than the sector median of 24. Its rule-of-40 multiple, based on its 10% revenue growth and EBITDA margin of 30% makes it fairly undervalued.
Fundamentally, there is a risk that the stock will continue falling as demand for software firms continue falling. In the long-term, however, chances are that it will rebound as investors rotate towards these companies.
CRM stock chart | Source: TradingView
The weekly chart shows that the CRM share price has slumped in the past few years, moving from $370 to $164 today. It formed a head-and-shoulders pattern and has already moved below the neckline at $227. H&S is one of the most common bearish signs in technical analysis.
The stock formed a death cross pattern in March this year as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other. It also slumped below the 61.8% Fibonacci Retracement level.
Therefore, the stock will likely crash from the current $164 to $100 as the bearish momentum continues. On the other hand, a surge above the key resistance at $227 will invalidate the bearish outlook.
Anthropic's upcoming initial public offering will be one of the most closely watched artificial intelligence (AI) listings on Wall Street. According to Reuters, the company has confidentially filed for an IPO in the U.S., after raising $65 billion in funding at a valuation near $965 billion in May.
With its annualized revenue reportedly reaching $47 billion as of early May and demand for enterprise AI tools continuing to grow, some investors may be looking to get portfolio exposure to the fast-growing AI company before it goes public. Here are three possible ways to get it.
Image source: Getty Images.
Alphabet Alphabet (GOOG +1.19%) (GOOGL +1.10%) may be one of the more balanced ways to get indirect exposure to Anthropic. The tech giant is both a strategic investor in Anthropic and a key infrastructure partner of it. According to Reuters, Alphabet has committed to invest up to $40 billion in Anthropic, including $10 billion in cash at a $350 billion valuation and another $30 billion tied to performance targets. The New York Times also reported in 2025, citing court documents, that Alphabet owned about 14% of Anthropic.
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Anthropic has also reportedly committed to spend $200 billion over five years on Google Cloud services and chips. So Alphabet is well positioned to benefit from the increasing demand for compute capacity as Claude's ecosystem scales. Google Cloud exited the first quarter with a backlog of $462 billion, driven by strong demand for enterprise AI offerings.
Alphabet's full-stack AI platform, which includes TPUs (Tensor Processing Units), Axion CPUs, Nvidia GPUs, over 30 data centers, more than 40 cloud regions, and 10 million kilometers of terrestrial and subsea fiber, has further strengthened its role as an Anthropic partner. The company also expects fiscal 2026 capex to land in the range of $180 billion to $190 billion, with most of that going into technical infrastructure. Management also expects another significant increase in capex in fiscal 2027.
However, Alphabet is not a direct proxy for Anthropic. The company's Gemini family of models directly competes with Claude. Additionally, Alphabet's share price continues to be driven mainly by Google Search, YouTube, Google Cloud execution, AI capex, and regulatory risk. That makes Alphabet less of a direct Anthropic play and more of a broad AI leader with extra upside from its Anthropic investment and cloud partnership.
Amazon Amazon (AMZN +0.05%) is another smart way to gain indirect exposure to Anthropic. According to Reuters, Amazon will invest up to $25 billion in Anthropic, including $5 billion up front and another $20 billion tied to the company meeting commercial milestones. Amazon had previously invested $8 billion in Anthropic, bringing its potential total cash commitment to $33 billion.
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The stake already appears to be financially significant. In February, Business Insider reported that Amazon's $8 billion Anthropic investment had increased in fair value to $60.6 billion, based on the company's disclosed $45.8 billion of convertible notes and $14.8 billion of nonvoting preferred stock in the AI start-up.
Additionally, Anthropic has planned to spend nearly $100 billion over the next decade on AWS technologies. The Claude developer plans to secure up to 5 gigawatts of compute capacity, supported by current and future generations of Trainium chips and Graviton CPUs, to train and power its advanced AI models. The partnership also strengthens AWS' AI platform, with more than 100,000 customers already running Claude models on AWS. So Amazon stands to benefit not only from potential appreciation in its equity stake but also as a long-term supplier of compute capacity to one of the fastest-growing AI model companies.
However, Amazon is not a direct alternative to Anthropic. The company's stock price movement is mostly driven by AWS growth, retail and advertising margins, logistics efficiency, AI capex, and overall consumer demand. Still, Amazon's large financial stake in the company and its operating partnerships with it make it a smart way to get exposure.
Salesforce Salesforce (CRM 1.74%) is both an Anthropic investor and an enterprise software partner of the company, embedding Claude models into its own AI platform. Salesforce Ventures first invested in Anthropic in 2023 and continued backing the company through later funding rounds. Reuters recently reported that Salesforce's Anthropic stake is valued at around $5 billion.
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Salesforce also deepened its Anthropic partnership in October by integrating Claude models into Agentforce 360, its AI platform for enterprise automation.
Anthropic is also a major customer of Salesforce, using Slack as a core operating system and Sales Cloud as an important part of its commercial workflow. Anthropic's Slack usage increased fivefold through the first quarter, highlighting the strong operational relationship.
Salesforce's share price is mainly driven by CRM demand, Agentforce adoption, Slack monetization, and enterprise software spending. It also faces disruption risk if AI agents from Anthropic, OpenAI, or other companies reduce the need for traditional software.
Despite these challenges, Salesforce remains a credible public market way to participate in Anthropic's enterprise AI momentum.
Salesforce Inc (NYSE:CRM, XETRA:FOO) has agreed to acquire customer agent company Fin for approximately $3.6 billion, a deal Wedbush says confirms the company is moving faster and more aggressively than most expected to lock up the agentic AI market.
The move hasn’t surprised analysts, who argue that with roughly $12 billion on its balance sheet and three billion-dollar-plus acquisitions completed in the past year alone, Salesforce is steadily shifting toward buying capability rather than building it. The firm maintains its Outperform rating and $325 price target.
What makes Fin a particularly compelling get, in Wedbush's view, is that it comes with proof of performance. Fin's Apex model, a proprietary AI system purpose-built for customer support, already resolves an average of 76% of support queries end-to-end. That gives Salesforce something tangible to bring to enterprise customers who are still weighing what AI can actually deliver, and it slots directly into Agentforce, the platform Wedbush sees as Salesforce's long-term bet on owning the agentic AI layer of enterprise software.
The market opportunity underpinning that bet is significant. Wedbush estimates around 40% of work at Fortune 1000 companies will be touched by AI by 2029, and views Salesforce as one of the best-positioned vendors to capture that shift. Fin's installed base of more than 30,000 companies across SMB and enterprise segments adds further reach to an already formidable platform.
Wedbush doesn't expect the dealmaking to stop here. With CEO Marc Benioff focused on building a unified stack spanning data, security, governance, and AI, the firm anticipates more transactions ahead as Salesforce pushes deeper into fiscal 2027 and beyond.
The Fin acquisition is expected to close in the company's fiscal fourth quarter of 2027, with no changes to full-year financial guidance or its capital return program.
HomeIndustriesSoftwareTech StocksTech StocksSalesforce now has a lot of businesses to integratePublished: June 16, 2026 at 5:07 p.m. ET
Shares of Salesforce were down nearly 2% on Tuesday. Photo: Getty Images/iStockSalesforce has been spending to boost its artificial-intelligence, capabilities, but investors still have their doubts.
Shares of Salesforce CRM fell for the 11th consecutive day on Tuesday, losing over 22% during that period, according to Dow Jones Market Data. That made for the stock’s longest losing streak on record.
