Investing in dividend stocks is a great way to earn superior returns over the long run. How do we know that? According to some research, most of the S&P 500's returns over the past several decades can be attributed to reinvested dividends and compounding. This fact makes a strong case for dividend investing. However, buying shares in just any old company that happens to pay dividends isn't the way to go: They aren't all created equal. With that said, let's consider three excellent dividend stocks that are worth investors' hard-earned cash: Bristol Myers Squibb (BMY 1.44%), Merck (MRK 2.79%), and Medtronic (MDT +0.22%). Here's why these three income stocks are worth sticking with for the long term.
Image source: Getty Images.
1. Bristol Myers Squibb Bristol Myers is a leading pharmaceutical company with a deep portfolio of medicines spanning many therapeutic areas, particularly oncology. The drugmaker typically generates decent revenue and earnings, although it has encountered challenges in recent years due to patent cliffs. Bristol Myers is bouncing back, though. Newer approvals are helping push sales in the right direction. The company's first-quarter revenue climbed by 3% year over year to $11.5 billion.
Bristol Myers' growth portfolio -- composed of newer medicines that won't encounter patent cliffs anytime soon -- posted even stronger growth. Its sales were $6.2 billion, 12% higher than the year-ago period. These newer medicines should account for a larger percentage of Bristol Myers' top line within a few years and lift sales growth even higher. And while there are other patent cliffs on the horizon -- particularly that of Bristol Myers' anticoagulant, Eliquis -- the drugmaker has a deep pipeline of promising candidates that should help it overcome them.
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In fact, one of Bristol Myers' most exciting pipeline assets is a potential successor to Eliquis called milvexian. Bristol Myers thinks this medicine has multibillion-dollar potential, partly because it could avoid one key drawback of traditional anticoagulants: Bleeding risk. Bristol Myers has plenty of other candidates beyond this one. Over the long run, it should succeed in developing newer and better products while growing its sales and earnings at a decent clip.
Lastly, Bristol Myers has an attractive dividend program, with a forward yield of 4.4%. It has increased its payouts by 65.8% over the past decade. All good reasons why Bristol Myers is an attractive blue chip dividend stock to buy and hold for a long time.
2. Merck Merck has also faced challenges in recent years, particularly with one of its growth franchises -- HPV vaccines Gardasil and Gardasil 9 -- whose sales haven't been strong due to weak demand in some Asian regions. Many investors also fear that other drugmakers are coming to take Merck's crown in the cancer drug market. The company reigns supreme thanks to Keytruda, the world's best-selling cancer medicine, but several "Keytruda killers" are in development and could hit the market within a few years.
At any rate, Keytruda itself will lose patent exclusivity by the end of the decade. Is Merck still worth considering, given all these factors? My view is that it is. Here are three reasons why. First, the company has received approval for a newer, subcutaneous version of Keytruda, called Keytruda Qlex, that is much faster to administer than the original intravenous version while remaining as effective. Keytruda Qlex should extend the franchise's patent exclusivity into the next decade.
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Second, while Merck will face increased competition, it has worked hard to diversify its lineup and decrease its reliance on Keytruda. Some of the company's newer products already have an annual revenue run rate of over $1 billion. Winrevair, a medicine for pulmonary arterial hypertension first approved in 2024, generated $525 million in revenue in the first quarter, up 88% year over year. Merck's Capvaxive, a pneumonia vaccine, is performing well, too.
Third, just like any self-respecting pharmaceutical giant, Merck also has a deep pipeline that should lead to brand-new approvals and label expansions. The company has expanded its pipeline in recent years through acquisitions and now boasts exciting programs, including a highly promising influenza medicine that could address an unmet need in that area. Finally, Merck offers an attractive forward dividend yield of 3%.
The drugmaker has increased its payouts by 93.8% over the past decade. Merck should continue paying -- and raising -- its dividends for a long time, making it a good pick for income seekers.
3. Medtronic Medtronic has struggled to grow revenue at a pace satisfactory to the market in recent years. The company's profits and margins have also often disappointed. However, the medical device specialist has made significant progress in addressing its issues. Medtronic announced it would spin off its diabetes care division -- which had been a drag on operating margins -- into a stand-alone, publicly traded company.
It has also launched products that are meaningfully impacting top-line growth, and others that eventually will. Medtronic PFA (Pulse Field Ablation) franchise -- devices that use a novel technology to treat a heart problem -- has been a bright spot in recent quarters.
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Further, Medtronic earned approval for the Hugo system, a robotic-assisted surgery (RAS) device, last year. It will allow the company to compete with the leader in this niche, Intuitive Surgical. The RAS market is arguably underpenetrated, and although Medtronic may not take the top spot away from Intuitive Surgical -- the latter has a two-decade lead -- it could still meaningfully contribute to top-line growth.
Meanwhile, thanks to a large product portfolio and regular approvals, Medtronic generates consistent revenue and earnings. That's how it has maintained such a strong dividend program. Medtronic has increased its payouts for an impressive 48 consecutive years. The company also offers a forward yield of 3.6%. Medtronic should continue rewarding investors with regular payout increases for a long time.
Investors in Medtronic plc (MDT - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $50.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Medtronic share, but what is the fundamental picture for the company? Currently, Medtronic is a Zacks Rank #4 (Sell) in the Medical - Products Industry that ranks in the Bottom 32% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $1.37 per share to $1.39 per share in the same time period.
Given the way analysts feel about Medtronic right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Honeywell International (HON) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Key Takeaways HON approved separating Aerospace into an independent public company, expected to begin operations on June 29.HON shareholders will receive one Honeywell Aerospace share for every two shares held on record.HON plans a one-for-two reverse split after the spin-off, reducing outstanding shares. Honeywell International Inc.’s (HON - Free Report) board of directors announced its approval for the planned spin-off of its Aerospace business into a separate public company. This marks a key step in the divestiture process, which is expected to be completed on June 29, 2026. Following the spin-off, Honeywell Aerospace will start operating as an independent public company.
The Aerospace business is a provider of engines, integrated avionics, systems and service solutions for aircraft manufacturers, military, space and airport operations. It also develops laser communication products for satellite communication.
Inside the HeadlinesHoneywell plans to allocate all of Honeywell Aerospace’s issued and outstanding common stock on June 29, 2026. Each HON shareholder of record as of June 15, 2026, will receive one share of the new entity for every two shares of Honeywell they hold. The distribution will take place once all specified conditions under the U.S. Securities and Exchange Commission filing are met.
It's worth noting that Honeywell Aerospace shares have commenced trading on a "when-issued’’ basis on Nasdaq under the symbol "HONAV" on June 15, 2026. However, its regular-way trading under the ticker "HONA" is expected to start on June 29, 2026.
From around June 15 to June 26, 2026, Honeywell stock will trade in two markets. One under the regular ticker “HON” with the right to receive Honeywell Aerospace shares, and another under the ticker “HONIV” without that right. Post spin-off of the Aerospace business, HON will operate as Honeywell Technologies as a premier pure-play automation company.
Also, HON announced plans to proceed with a one-for-two reverse stock split, contingent upon the completion of the Aerospace spin-off. The move will reduce the company's outstanding shares from roughly 634 million to approximately 317 million, while maintaining its Nasdaq listing under the ticker "HON." The separation and related corporate actions will restructure Honeywell's portfolio, enhance strategic focus and unlock long-term value for its shareholders.
HON's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of the Zacks Rank #3 (Hold) company have gained 13.8% in the past six months against the industry’s decline of 2%.
From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 20.82X, above the industry’s average of 15.84X.
The Zacks Consensus Estimate for HON’s 2026 earnings has inched up 0.1% over the past 60 days.
Stocks to ConsiderSome better-ranked companies are discussed below.
GPGI, Inc. (GPGI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 5.8%.
The Zacks Consensus Estimate for ITT’s 2026 earnings has increased 6.8% in the past 60 days.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 60 days, the consensus estimate for Griffon’s 2026 earnings has increased 2.6%.
Key Takeaways Collins Aerospace supplies seating, cabin systems, lighting, galleys and connectivity technologies.RTX supports both new aircraft production and fleet modernization through its interior solutions portfolio.Growing demand for cabin upgrades and next-generation interior technologies supports long-term opportunities. RTX Corporation (RTX - Free Report) , through its Collins Aerospace business, continues to strengthen its position in the commercial aerospace market via advanced aircraft interior solutions. As airlines focus on enhancing passenger experience and improving operational efficiency, demand remains healthy for modern cabin technologies, seating systems, connectivity solutions and interior components. These products support both new aircraft production and fleet modernization programs, creating long-term opportunities across the aviation market.
Collins Aerospace supplies seating, cabin systems, lighting solutions, galley equipment, oxygen systems and connectivity technologies used across a wide range of commercial aircraft platforms. This diversified offering allows RTX to support airlines and aircraft manufacturers through multiple phases of an aircraft's lifecycle while benefiting from continued fleet expansion and replacement activity.
The aircraft interiors business also provides opportunities to participate in evolving airline priorities. Carriers increasingly seek solutions that improve passenger comfort, maximize cabin utilization and enhance operational performance. Through ongoing product development and engineering expertise, Collins Aerospace remains well-positioned to support these changing requirements while maintaining strong relationships with aircraft manufacturers and operators.
Commercial aerospace remains one of RTX's largest growth drivers. Through Collins Aerospace, the company serves major aircraft programs worldwide and maintains a significant installed base across global fleets. Continued demand for cabin modernization, connectivity and next-generation interior technologies could support long-term growth opportunities within RTX's commercial aerospace operations.
Companies Expanding Aircraft Interior CapabilitiesAs airlines continue investing in passenger experience and cabin modernization, aerospace suppliers are expanding their aircraft interior technologies and cabin-system offerings. Companies like Safran S.A. (SAFRY - Free Report) and The Boeing Company (BA - Free Report) are also strengthening their presence in this area.
Safran develops integrated aircraft interior solutions, including cabin monuments, galleys, lavatories and overhead storage systems, supporting commercial aircraft manufacturers and airlines worldwide.
Boeing continues expanding its cabin modification capabilities through interior upgrades, seating solutions, galley products and overhead storage enhancements that support airline fleet modernization initiatives.
Earnings Estimates for RTXThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.86% and 8.96%, respectively.
Image Source: Zacks Investment Research
RTX Stock Trading at a DiscountRTX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.56X compared with the industry average of 2.58X.
Image Source: Zacks Investment Research
RTX Stock Price PerformanceOver the past year, RTX shares have rallied 23.7% compared with the industry’s 3.5% growth.
Image Source: Zacks Investment Research
RTX’s Zacks RankRTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RTX (RTX - Free Report) closed at $186.77 in the latest trading session, marking a +1.7% move from the prior day. The stock outpaced the S&P 500's 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%.
Shares of the an aerospace and defense company have appreciated by 4.37% over the course of the past month, underperforming the Aerospace sector's gain of 8.09%, and outperforming the S&P 500's gain of 2.14%.
The upcoming earnings release of RTX will be of great interest to investors. On that day, RTX is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 6.41%. Meanwhile, our latest consensus estimate is calling for revenue of $22.89 billion, up 6.07% from the prior-year quarter.
RTX's full-year Zacks Consensus Estimates are calling for earnings of $6.91 per share and revenue of $93.68 billion. These results would represent year-over-year changes of +9.86% and +5.73%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for RTX. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. As of now, RTX holds a Zacks Rank of #3 (Hold).
Looking at its valuation, RTX is holding a Forward P/E ratio of 26.57. This valuation marks a premium compared to its industry average Forward P/E of 24.92.
We can additionally observe that RTX currently boasts a PEG ratio of 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.53.
The Aerospace - Defense industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
The Invesco KBW Bank ETF (KBWB +1.61%) offers a lower-cost entry into the banking sector with higher recent returns, while the First Trust Nasdaq Bank ETF (FTXO +1.34%) provides broader diversification.
Both funds target the domestic banking sector but follow different indexing methodologies to capture the industry performance. While the Invesco KBW Bank ETF tracks a market-cap-weighted index of money centers and regional banks, the First Trust Nasdaq Bank ETF uses a “smart” indexing approach focused on liquidity and fundamental factors such as volatility and growth.
Snapshot (cost & size)MetricFTXOKBWBIssuerFirst TrustInvescoExpense ratio0.6%0.35%1-yr return (as of June 8, 2026)26.2%36.0%Dividend yield1.8%2.0%Beta0.891.02AUM$290.8 million$5.6 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Invesco fund is more affordable, charging an expense ratio of 0.35% compared to the 0.6% for the First Trust fund. Additionally, the Invesco fund offers a higher payout for income-seeking investors through its distribution yield.
Performance & risk comparisonMetricFTXOKBWBMax drawdown (5 yr)(46.6%)(49.3%)Growth of $1,000 over 5 years (total return)$1,367$1,523What's insideInvesco KBW Bank ETF (KBWB) focuses entirely on the financial services sector, with 26 holdings representing 100% of the portfolio. Launched in 2011, it weights its positions using a modified market-cap approach to track national money center banks and thrifts. Its largest positions include Morgan Stanley (MS +1.31%) at 9.28%, The Goldman Sachs Group (GS +1.35%) at 8.85%, and Bank of America (BAC +1.74%) at 7.84%. Over the trailing 12 months, the Invesco fund has paid $1.80 per share in dividends.
First Trust Nasdaq Bank ETF (FTXO) also maintains 100% exposure to financial services but uses a broader selection of 42 holdings. Launched in 2016, its top holdings include Citigroup (C +1.26%)at 9.04%, Bank of America at 8.05%, and JPMorgan Chase & Co. (JPM +3.66%) at 7.75%. This fund has a trailing-12-month dividend of $0.68 per share. Both ETFs prioritize U.S.-listed institutions, but FTXO includes more regional players and mid-sized banks than its larger competitor, which tends to lean toward the industry heavyweights.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buyThe Invesco KBW Bank ETF (KBWB) and the First Trust Nasdaq Bank ETF (FTXO) are both exchange-traded funds (ETFs) focused on the banking sector. However, they differ in some key respects. Here’s what investors need to know about each of them.
First, let’s start with KBWB. This fund, started in 2011, is focused on national money centers, leading regional banks, and thrifts. Granted, its top holdings include Goldman Sachs, Morgan Stanley, and Bank of America — giant, global banking brands; however, these mega-caps comprise only about a third of the fund’s holdings. The rest is dedicated to smaller companies. Overall, the fund offers exposure at a reasonable cost. The fund charges an expense ratio of 0.35%. Finally, the fund’s 2.0% dividend yield is solid.
Then, there’s FTXO. This fund is slightly more diversified than KBWB, with 42 holdings rather than KBWB’s 26. It also has a greater share of regional banks. As for performance, FTXO has generated a total return of 148% since 2017, with a compound annual growth rate (CAGR) of 9.8%. KBWB, by contrast, has generated a total return of 215%, with a CAGR of 12.6%. Both funds have underperformed the S&P 500, which has generated a total return of 309%, with a CAGR of 15.7%.
In summary, for investors seeking exposure to the U.S. banking sector, KBWB may be of interest due to its lower fees, higher dividend yield, and better long-term performance. However, some investors may still favor FTXO due to its greater diversification.
Morgan Stanley (MS - 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 investment bank have returned +13.1%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Financial - Investment Bank industry, which Morgan Stanley falls in, has gained 10%. 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 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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Morgan Stanley is expected to post earnings of $2.73 per share for the current quarter, representing a year-over-year change of +28.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
The consensus earnings estimate of $11.87 for the current fiscal year indicates a year-over-year change of +16.3%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.49 indicates a change of +5.2% from what Morgan Stanley 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, Morgan Stanley 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
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Morgan Stanley, the consensus sales estimate of $18.71 billion for the current quarter points to a year-over-year change of +11.4%. The $77.26 billion and $80.79 billion estimates for the current and next fiscal years indicate changes of +9.4% and +4.6%, respectively.
Last Reported Results and Surprise HistoryMorgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.6 a year ago.
Compared to the Zacks Consensus Estimate of $19.85 billion, the reported revenues represent a surprise of +3.7%. The EPS surprise was +12.09%.
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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Morgan Stanley is graded D on this front, indicating that it is trading at a premium 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 Morgan Stanley. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
LONDON--(BUSINESS WIRE)--Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), alongside Ridgeback Group (Ridgeback), announced today the acquisition of the Private Rented Sector (PRS) business of London & Quadrant Housing Trust (L&Q), which trades as Metra Living, for a total enterprise value of £1.045 billion. The transaction includes a portfolio of approximately 3,200 homes across Greater London, as well as its fully i.
NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Intuit, Inc. (“Intuit” or the “Company”) (NASDAQ: INTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Intuit 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 20, 2026, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit said that “[w]e [lost] on price,” and revealed that the Company needed to evolve its business model by delivering the right lineup and price points to meet simple filers’ needs at the low end. Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.”
On this news, Intuit’s stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 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.
Stock futures are ticking higher as the market looks to add to the big gains posted on Monday following news of an Iran peace deal; SpaceX shares are poised to climb for the another session after the company's record-setting Friday IPO; the Fed will kick off its two-day meeting on interest rates; world leaders are meeting in France, with discussions focused on the next steps in securing peace in the Middle East; and GM is reportedly in talks to supply Lockheed Martin with parts for weapons. Here's what you need to know today.
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Stock Market Today: Nasdaq, S&P 500 Cool Off; How Will SpaceX Impact Aerospace Stocks?
Dow Jones Futures Rise Before Warsh's Fed Debut; SpaceX Keeps Rising, Four Stocks In Buy Areas President Donald Trump on Tuesday invoked the Defense Production Act in an effort to bolster supply chains and accelerate manufacturing for key munitions. Elsewhere, General Motors stock briefly attempted to break out Tuesday on reports that the automaker is in talks to supply parts for Lockheed Martin's defense systems. President Trump on Monday invoked the Defense Production Act, according to a…
Key Takeaways Lockheed Martin is strengthening sonar capabilities to support the U.S. Navy and allied maritime security.LMT's ARCI system boosts submarine sonar processing, detection and acoustic surveillance capabilities.Lockheed Martin secured a $223.9M Navy contract for sonar engineering, development and production. Lockheed Martin (LMT - Free Report) is strengthening its sonar capabilities through advanced underwater surveillance technologies, next-generation anti-submarine warfare systems and continued support for naval modernization programs. As demand for enhanced maritime security rises, the company is expanding its sonar portfolio to support the U.S. Navy and allied nations in detecting and tracking underwater threats.
The growing focus on underwater warfare has increased the need for sophisticated sonar systems capable of improving threat detection, seabed mapping and maritime domain awareness. Modern naval operations increasingly rely on advanced sonar-equipped submarines and surface ships to identify quieter underwater threats and strengthen anti-submarine warfare readiness.
LMT continues to enhance its undersea warfare offerings through advanced Sound Navigation and Ranging (Sonar) technologies. The company plays a critical role in developing and integrating sonar systems that support submarine and surface ship missions, enabling better underwater surveillance, target tracking and situational awareness.
A major example of LMT’s sonar strength is its Acoustic Rapid Commercial Off-the-shelf Insertion system, a widely used submarine sonar platform deployed across the U.S. Navy submarine fleet. ARCI improves sonar processing performance by rapidly integrating commercial technologies, enhancing submarine detection and acoustic surveillance capabilities.
The company’s Rotary and Mission Systems business supports next-generation sonar engineering, development and production to modernize naval undersea defense. LMT recently secured a $223.9 million U.S. Navy contract modification for sonar system engineering, design, development and production support, underscoring strong demand for its advanced undersea warfare technologies.
Overall, through advanced sonar integration, submarine warfare expertise and continued modernization support, LMT is strengthening its position in the growing undersea defense market.
Other Stocks to Keep on the WatchlistOther aerospace and defense companies expanding their sonar and underwater warfare capabilities are discussed below:
RTX Corporation (RTX - Free Report) : Through its Raytheon unit, the company develops advanced sonar systems for naval applications, including the AN/AQS-20C mine-hunting sonar suite and the AN/ASQ-235 Airborne Mine Neutralization System.
Northrop Grumman Corporation (NOC - Free Report) : It provides integrated sonar solutions for submarines and surface ships, enhancing anti-submarine warfare capabilities. It also provides a high-performance minehunting system AQS-24B/C, which offers significantly improved image resolution and real-time sonar processing.
The Zacks Rundown for LMTShares of LMT have risen 10.7% in the past year compared with the industry’s 3.6% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 17.14X compared with its industry’s average of 32.69X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s 2026 and 2027 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
LMT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Lockheed Martin [NYSE: LMT] and GM Defense today announced a new collaboration to strengthen America's manufacturing and defense industrial base, facilitated by the U.S. Department of War.
Working under a memorandum of understanding (MOU), Lockheed Martin and GM Defense will explore opportunities to accelerate the delivery of critical capabilities and innovation by combining Lockheed Martin's defense production expertise with General Motors' advanced industrial capabilities in high-rate commercial manufacturing and engineering.
The collaboration will focus on three areas: strengthening defense supply chains, advancing manufacturing and design capabilities, and evaluating opportunities to expand production capacity through commercial manufacturing expertise and infrastructure. Initial efforts will include exploring ways to accelerate production readiness and apply proven commercial manufacturing approaches to support defense production requirements.
"America's security depends not only on developing advanced technologies, but on our ability to produce them quickly, reliably and at scale," said Frank St. John, chief operating officer, Lockheed Martin. "This collaboration brings together two leaders in American manufacturing and innovation to explore new ways to strengthen the defense industrial base, expand production capacity and accelerate delivery of critical capabilities for the United States and its allies."
"Working together, GM Defense and Lockheed will further strengthen American manufacturing and national defense by driving greater speed, efficiency, and innovation in the aerospace and defense sectors," said Steve duMont, president of GM Defense. "Over the coming weeks, we will be working to identify initial projects to pursue together."
The collaboration reflects growing demand for greater production capacity, supply chain resilience and manufacturing agility across the defense sector. By combining commercial and defense expertise, the companies aim to identify opportunities that can accelerate production timelines while maintaining the quality, performance and reliability standards required for mission-critical systems.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.lockheedmartin.com.
About GM Defense LLC
GM Defense delivers integrated vehicles, power, and autonomy and connectivity solutions to global defense, security, and government markets. The exceptional reliability of GM Defense's technologies results from decades of proven performance and billions of dollars spent in independent research and development by its parent, General Motors, a world leader in global design, engineering, and manufacturing capabilities. For more information, please visit www.gmdefensellc.com.
Automaker General Motors on Tuesday announced a new partnership with defense company Lockheed Martin to scale manufacturing and expand production capabilities.
The deal was facilitated by the U.S. Department of Defense, according to Bruce Brown, GM's vice president of strategy at GM Defense, and will focus on munitions and more.
"What makes this moment especially important is that the country needs more than great technology. It also needs the capacity to build, scale and deliver reliably," Brown said on a call with reporters. "This is where GM can help. Across our company, we bring deep experience in advanced engineering, digital development, supply chain discipline and manufacturing at scale."
Lockheed Chief Operating Officer Frank St. John said it was too early to say what projects it would invest in with GM Defense.
Executives from both companies said on the call that the collaboration will allow for more growth at a time when the country is ramping up its production of defense parts.
"Together, we will explore opportunities across three important areas: improving production readiness and scalable manufacturing environments; strengthening supply chains and identifying ways to increase resilience; and applying advanced manufacturing and design approaches [that] can help improve efficiency and accelerate delivery," St. John said.
Lockheed Martin is investing $9 billion through 2030 to modernize 20 of its facilities and supply bases, St. John added. GM said it will spend $7 billion on research and development in the U.S., according to Brown.
The executives said the partnership will be focused on "high-rate manufacturing" at scale and expanding production capacity. They added that the collaboration is still in early stages and that they need to further define what the potential for future contracts may be. They are working under a memorandum of understanding.
The automaker built tanks for the country during World War II. Its GM Defense unit is one of the company's newer but fast-growing business segments, reestablished in 2017 with customers including the U.S. Army, Secret Service and NASA.
"America is stronger when two companies with deep manufacturing roots come together to help expand speed, scale and resilience in the defense industrial base. That is why Lockheed Martin and GM are announcing this collaboration," Brown said on the call.
The partnership comes as President Donald Trump has been pushing for more American manufacturing to bring more production and reshoring into the country. The U.S. has also seen its defense stockpiles fall because of the wars in Ukraine and Iran.
The White House has held discussions with Ford and GM about better supporting the country's defense industry.
— CNBC's Michael Wayland contributed to this report.
General Motors and defense company Lockheed Martin are collaborating on projects to strengthen the U.S. manufacturing and defense industrial base, the companies said Tuesday.
Key Takeaways Reliance expects tons sold to rise 1-3% sequentially and forecasts Q2 EPS of $5.15-$5.35. RS is benefiting from infrastructure, data center and manufacturing demand in key markets. RS expanded via acquisitions, repurchased $234M in stock in Q1 and raised its dividend by 4.2%. Reliance, Inc. (RS - Free Report) is benefiting from strong end-market demand and acquisitions that are expanding its capabilities and market presence. Robust profitability and cash generation are also supporting share buybacks and dividend growth.
We are positive about RS’ prospects and believe that the time is right for you to add the stock to the portfolio, as it looks promising and is poised to carry the momentum ahead.
Let's see what makes RS stock an attractive investment option at the moment.
Positive Analyst Sentiment for RS StockEarnings estimates for RS have been going up over the past 60 days. The Zacks Consensus Estimate for 2026 has increased 11.4%. The consensus estimate for 2027 has also been revised 10.01% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $19.14, suggesting a 34.2% increase from the previous year’s tally. Earnings are projected to increase 7.9% for 2027.
Image Source: Zacks Investment Research
RS’ Superior Return on Equity (ROE)ROE is a measure of a company’s efficiency in utilizing shareholders’ funds. ROE for the trailing 12 months for Reliance is 11.37%, above the industry’s level of 2.24%.
Image Source: Zacks Investment Research
Positive OutlookReliance expects demand in the second quarter to remain healthy across its diverse end markets, though ongoing domestic and international trade policy uncertainty and Middle East conflict could pose supply availability and macroeconomic risks, influencing performance. The company projects tons sold to increase 1% to 3% from the prior quarter and 4.5% to 6.5% from the year-ago quarter.
The average selling price per ton is anticipatedto be up 1.5-3.5% sequentially. Based on these assumptions, the company forecasts adjusted earnings per share in the range of $5.15 to $5.35 for the second quarter, which includes an estimated LIFO expense of $37.5 million, or 54 cents per share.
Reliance Rides on Strong Demand and Strategic BuyoutsThe company is benefiting from strong demand in the non-residential construction market, its largest end market by volume. Demand improved in the first quarter of 2026, driven by public infrastructure projects, heavy civil construction, data centers, energy infrastructure and manufacturing activity.
Through its AMI Metals unit, the company secured major Department of Homeland Security border wall contracts and continues to benefit from steady automotive toll processing demand. It is also seeing improving demand from semiconductor, defense, shipbuilding, industrial machinery and nuclear-related markets.
Reliance continues to strengthen its growth profile through acquisitions aimed at expanding its geographic reach, product offerings and value-added processing capabilities. Major acquisitions, including Metals USA, Tubular Steel, Best Manufacturing, Ferguson, All Metals, Fry Steel Company and Merfish United, have enhanced its service center network, diversified its end markets and broadened its exposure to higher-margin products.
More recent acquisitions, such as Rotax, Admiral Metals, Nu-Tech Precision Metals, Southern Steel Supply, Cooksey Iron & Metal Co. and American Alloy further support the company’s strategy of investing in high-quality businesses, expanding its processing capabilities and increasing its presence in attractive growth markets across the United States.
Reliance is dedicated to delivering value to its investors, backed by a strong liquidity position. It repurchased $234 million of stock at an average price of $299 per share in the first quarter of 2026. The company’s board has raised its quarterly dividend by 4.2% to $1.25 per share.
RS ended the first quarter with cash and cash equivalents of $249.7 million, up from $216.6 million sequentially. The increase was supported by record shipment volumes and healthy profitability during the quarter.
Reliance, Inc. Price and ConsensusRS’ Zacks Rank & Other Key PicksRS currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space include Nucor Corporation (NUE - Free Report) , L.B. Foster Company (FSTR - Free Report) and Albemarle Corporation (ALB - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nucor’s current-year earnings stands at $15.71 per share, implying an 103.8% year-over-year increase. NUE’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average surprise being 8.1%.
The consensus estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.
The Zacks Consensus Estimate for Albemarle’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.
A Broadcom (NASDAQ: AVGO) insider has purchased nearly $374,000 worth of the stock following the company’s sharp post-earnings pullback, signaling confidence in the semiconductor giant’s long-term outlook.
According to a regulatory filing, Broadcom director Harry You acquired 1,000 AVGO shares on June 11, 2026, at $373.57 per share. The transaction was valued at approximately $373,570.
The purchase increased You’s holdings by about 2.7%, bringing his total ownership to 38,466 shares, including 864 restricted stock units disclosed in the filing.
Harry You AVGO stock transaction. Source: SEC AVGO insider sells The Broadcom insider buy comes as company executives and directors have largely been sellers of AVGO stock over the past six months.
In this line, insider trading data shows Broadcom co-founder and chairman Henry Samueli sold 781,967 shares worth an estimated $250 million. President and CEO Hock E. Tan also sold 300,000 shares valued at approximately $101.3 million during the same period.
Other notable insider sales came from Chief Legal and Corporate Affairs Officer Mark David Brazeal, Infrastructure Software Group President S. Ram Velaga, and CFO Kirsten Spears, who collectively sold hundreds of thousands of shares.
Against that backdrop, You’s open-market purchase stands out as one of the few insider buying transactions reported at Broadcom in recent months.
Insider purchases are closely watched because executives and directors often have unique insight into a company’s business performance and growth prospects.
Although modest relative to Broadcom’s size, the purchase came shortly after AVGO stock declined following its fiscal second-quarter earnings report, making the timing notable.
Broadcom reported record quarterly revenue of approximately $22.2 billion, driven by surging artificial intelligence demand. AI semiconductor revenue jumped 143% year over year to about $10.8 billion, underscoring the company’s growing exposure to AI accelerators and networking infrastructure.
AVGO stock price analysis However, shares fell after management’s guidance fell short of some investors‘ elevated expectations for future AI growth. At press time, AVGO stock was trading at $393 after closing the previous session more than 3% higher. Year to date, the stock has gained 13%.
AVGO YTD stock price chart. Source: Finbold Overall, the latest Broadcom insider buy may offer an additional vote of confidence for investors assessing whether the recent weakness in AVGO stock represents a buying opportunity.
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In 2026, the market expects record-setting capital expenditures from the big four artificial intelligence (AI) hyperscalers. Some of these companies have already bumped up their guidance for 2026, but at the start of the year, this figure totaled $650 billion.
That's a ton of money being spent on data centers, and it's being spread around to several different companies. However, 2026 is just the beginning.
Several estimates point toward capital expenditures rising each year through 2030, leading to several years of incredible growth for companies involved in the space. Next year, the build-out is expected to be even bigger, with Nvidia (NVDA 2.16%) informing investors that it expects $1 trillion in data center capital expenditures. Nvidia likely has more information regarding future demand than an individual investor, so it's probably wise to give Nvidia's projection some credence.
If the $1 trillion in data center capital expenditures comes about next year, there are several stocks that are primed to benefit. I've got three that I like, but there are countless more.
Image source: Getty Images.
1. Nvidia Let's start with the company that broke the news in the first place: Nvidia. Nvidia is by all accounts the industry leader in AI computing. The growth caused by all of the spending on AI data centers has propelled Nvidia to become the world's largest company, but it's far from done growing. Wall Street analysts expect Nvidia's revenue to rise 81% in fiscal year 2027 (ending January 2027). Next year, they expect 41% growth. With Nvidia's stock trading at 31 times trailing earnings, none of that growth is priced in stock today, and Nvidia looks like an average big tech company.
NVDA PE Ratio data by YCharts
That leaves plenty of room for monster upside, and makes Nvidia a no-brainer buy today.
2. Broadcom Nvidia isn't the only chipmaker that's set to cash in on a huge expansion next year. Broadcom (AVGO 4.24%) is another company that's involved in the space, and it's taking a different approach. It makes custom AI chips, which are designed specifically for an end user. Some of Broadcom's major clients include Alphabet, Meta Platforms, Anthropic, and OpenAI. All of these companies have custom AI chips that were designed with Broadcom's help, and there is a ton of new growth expected to be realized in 2027.
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Wall Street expects Broadcom's revenue to grow 66% in fiscal 2026 (ending in November) and 62% in fiscal 2027, mostly due to the strength of its AI semiconductor business, which is expected to exceed $100 billion in revenue next year. This will lead to a booming stock price, making Broadcom an excellent stock to buy now before next year's data center spending is realized.
Sandisk Sandisk (SNDK 5.52%) has been an incredible performer over the past year. The stock is up about 700% so far this year, which may have investors wondering how Sandisk will rise even higher from here.
One critical part of data centers is long-term data storage. Nearly all data centers utilize solid-state drives (SSDs) for this purpose, and there is an industrywide shortage of these devices thanks to unprecedented AI demand. With data center spending expected to expand again in 2027, this pressure could continue.
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Sandisk manufactures these devices, and because there is such a low supply, prices are soaring, which is boosting Sandisk's results.
In the fourth quarter of fiscal year 2026 (ending June 2026), Wall Street analysts expect 336% revenue growth. For fiscal year 2027, the compabny is expected to grow its revenue 122%. That easily makes it the fastest-growing stock on this list. As long as there's a shortage of SSDs in the marketplace, Sandisk's revenue and profits will continue to soar, making it an easy stock pick to make with further data center spending coming.
Keithen Drury has positions in Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
It's becoming increasingly challenging for artificial intelligence (AI) stocks to impress the market. Case in point: on May 20, Nvidia (NVDA 2.16%) reported its financial results for the first quarter of fiscal year 2027, which ended on April 26. Although its revenue and earnings came in ahead of analyst estimates, the stock still moved lower. Two other AI-focused companies that suffered the same fate are CoreWeave (CRWV +9.67%) and Broadcom (AVGO 4.24%). Shares of both tech leaders fell significantly post-earnings, but should investors rush to buy the dip? Let's find out.
Image source: The Motley Fool.
1. CoreWeave CoreWeave's first-quarter results looked strong, so long as we stop at the top-line. The company's revenue grew by 111.6% year over year to $2.1 billion. However, CoreWeave's net losses widened significantly to $740 million, worse than the $315 million net loss reported in the year-ago period. What's more, the company's guidance did not meet Wall Street's expectations, leading to a sharp post-earnings dip. The bulls will point out that CoreWeave's deepening net losses are necessary to support its incredible growth potential.
CoreWeave helps other corporations train and run AI models through a network of data centers. It currently operates 49 of them. Equipping and maintaining these data centers isn't cheap, but the investments might pay for themselves several times over in the next five years and beyond. CoreWeave ended the first quarter with a backlog of nearly $100 billion, up 49% from the fourth quarter.
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Further, AI infrastructure spending is projected to continue growing. According to Nvidia, it could reach $3 trillion to $4 trillion by the end of the decade. The hyperscalers (large cloud computing providers) will be responsible for much of that. This is good news for CoreWeave, whose biggest client is Microsoft (MSFT 1.43%). However, the company also faces significant risk. The first is valuation. CoreWeave isn't profitable yet, so it doesn't have a price-to-earnings (P/E) ratio.
But the company's price-to-sales ratio is 8.2, well above the "2 and below" range where stocks are typically considered attractively valued. While CoreWeave is worth a premium given its rapid growth and prospects in the AI industry, some may argue it is currently too expensive. Second, CoreWeave's business is highly concentrated, with Microsoft accounting for 67% of its revenue in the fiscal year 2025. If Microsoft slows spending, it could be catastrophic to CoreWeave's bottom line.
So, what's the verdict? Despite CoreWeave's upside potential, there is significant risk. The company could still be a market-beater over the next five years if AI spending maintains its northbound path, but investors should proceed with caution, brace for significant volatility, and initiate only a small position in the stock.
2. Broadcom Broadcom's financial results -- for the second quarter of its fiscal year 2026, ending on May 3 -- also looked strong. The company's revenue of $22.2 billion soared 48% year over year. That included $10.8 billion in revenue from its AI semiconductor business, up an impressive 143% compared to the year-ago period. The company's adjusted earnings per share jumped 54% to $2.44, while free cash flow rose 60% to $10.3 billion.
However, Broadcom's guidance for the next quarter, particularly for its AI chip business, fell short of Wall Street's expectations, sending the stock price lower. This seems surprising since Broadcom expects its semiconductor revenue from AI to soar by more than 200% year over year to $16 billion in its upcoming Q3 2026. This highlights, once again, that the market has incredibly high expectations.
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Could Broadcom bounce back? There are good reasons to think so. The company is a leading provider of custom AI chips. These aren't as versatile as Nvidia's market-leading GPUs (Graphics Processing Units), but Broadcom's chips are more cost-effective and can offer comparable -- and perhaps even better -- performance for certain tasks. Broadcom's customers include big names such as Alphabet (GOOG +1.19%) (GOOGL +1.10%). Demand for custom AI chips could increase as corporations seek to reduce their reliance on Nvidia's hardware, improve profits and margins, and capitalize on the rapidly growing AI industry.
That puts Broadcom in a strong position. Broadcom does face similar issues to CoreWeave. Broadcom's forward P/E of 33 looks fairly high. The average for information technology stocks is 22.3. Further, the AI chipmaker's business is significantly concentrated, with five end customers accounting for roughly 40% of its revenue in its two most recent fiscal years. Still, Broadcom has a mature, profitable business, generates plenty of cash flow, and offers a decent dividend program. And with AI spending still growing, Broadcom could cash in on this over the next five years, making its shares attractive following the post-earnings dip.
When a stock dips in value, it can be a good opportunity to buy it at a reduced price. But that's only if you expect it to bounce back. In many cases, it can be the start of a prolonged decline. That's why it's always important to consider the context and to understand why a stock is down. That can save you a lot of stress later on.
Broadcom (AVGO 4.24%) shares have been falling recently. They are down more than 7% in the past month, which may not seem significant, but they have also fallen more than 20% from highs of nearly $500. Why is the tech giant struggling, and could now be a good time to buy it?
Image source: Getty Images.
The stock has been down since reporting earnings On June 3, Broadcom posted its latest earnings numbers, and while they were good, they may simply not have been strong enough to inspire investors to buy the already expensive stock. The company's revenue for the quarter ending May 3 rose 48% to more than $22 billion. Broadcom has been experiencing growth in artificial intelligence (AI), noting that AI semiconductor revenue was particularly strong, up 143%.
However, when the bar is set high, as it is with highly valued stocks, it can be difficult to make the case that the stock is a buy, even on strong earnings numbers. That's because if you're paying a significant premium for a stock to begin with, then that effectively prices in a lot of future growth. Broadcom, whose valuation topped $2 trillion before the sell-off, remains one of the top tech stocks in the world, with a market cap of around $1.8 trillion. Its inflated valuation has likely been a key reason for its recent decline.
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Has Broadcom become a cheap buy? Due to the recent decline in Broadcom shares, the stock now trades at 66 times trailing earnings, which is a steep drop from the three-digit multiple it traded at last year. It's cheaper, but it's still not exactly a discounted stock.
If, however, you're investing for the long haul, a stronger case can be made for Broadcom. That's because the stock's price-to-earnings-growth (PEG) multiple is 0.72, which suggests that, based on analyst projections for its growth over the next five years, it's a good buy. When the PEG is less than 1.0, it indicates a stock has plenty of value when its future growth is taken into account.
The risk, however, is that this relies on assumptions of future growth. In tech, the picture can change rapidly, but if you're bullish on the opportunities in AI, the tech stock may be worth buying at its current valuation.
Investors choosing between Fidelity High Dividend ETF (FDVV 0.02%) and Vanguard Dividend Appreciation ETF (VIG 0.03%) must weigh the Fidelity fund's higher yield against the Vanguard fund's lower costs and broader diversification.
Both funds target dividend-paying equities but follow different philosophies. While Fidelity High Dividend ETF seeks high immediate income through sector overweighting, Vanguard Dividend Appreciation ETF focuses on companies with a history of increasing dividends. This distinction creates meaningful differences in sector exposure, total return potential, and portfolio concentration for income-seeking investors.
Snapshot (cost & size)MetricFDVVVIGIssuerFidelityVanguardExpense ratio0.15%0.04%1-yr total return (as of June 15, 2026)24.54%20.1%Dividend yield2.80%1.50%Beta0.860.81AUM$9.8 billion$127.8 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.Cost-conscious investors may prefer the Vanguard fund, which features a lean 0.04% expense ratio. However, the Fidelity fund offers a more robust income profile, with a 2.80% trailing-12-month distribution yield.
Performance & risk comparisonMetricFDVVVIGMax drawdown (5 yr)(20.20%)(20.40%)Growth of $1,000 over 5 years (total return)~$1,903~$1,678The Vanguard Dividend Appreciation ETF uses a passive approach to track dividend growers, essentially replicating the S&P U.S. Dividend Growers Index (NYSEMKT:SPUDIGUT). Its sector exposure as of May 31 includes technology at 28.4%, financial services at 20.3%, and healthcare at 16.5%. With 331 holdings, its largest positions include Broadcom (AVGO 4.24%) at 5.41%, Apple (AAPL +1.00%) at 4.57%, and Microsoft (MSFT 1.43%) at 4.27%. The fund was launched in 2006 and had a trailing-12-month dividend of $3.45 per share.
The Fidelity High Dividend ETF employs a strategy that overweights sectors to maximize yield based on historical performance. Its portfolio is more concentrated, holding 111 stocks. The primary sector tilts are technology at 30%, financial services at 17%, and consumer cyclical at 14%. Its largest positions include Nvidia (NVDA 2.16%) at 7.03%, Apple at 6.35%, and Microsoft at 4.82%. This fund was launched in 2016 and had a trailing-12-month dividend of $1.66 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThe Fidelity High Dividend ETF and the Vanguard Dividend Appreciation ETF are among the top ETFS for income investors, but while one focuses on yield, the other places greater emphasis on dividend growth. That can make a considerable difference to shareholder returns.
The Fidelity fund’s primary focus is on high yield paire with dividend growth. It evaluates large- and mid-cap companies that are expected not only to pay but also to grow dividends, and ranks them within each sector based on a composite score comprising high dividend yield, low dividend payout ratio, and high dividend growth. The top tanking stocks are included in the index.
The Vanguard fund also focuses on dividend-growth companies and includes companies that have increased dividends for at least ten consecutive years. Yield, however, is not the focus. In fact, the S&P U.S. Dividend Growers Index that the fund tracks explicitly excludes the 25% highest-yielding companies. That’s possibly to filter out potential yield traps or stocks with unsustainably high yields due to falling prices. Not all high-yielding stocks are safe.
While investors can choose any ETF, I’d personally opt for the Vanguard Dividend Appreciation ETF, as it not only offers dividend growth but also safeguards against risky dividend payers. It is also an extremely low-cost ETF, charging only $4 annually for $10,000 invested.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Broadcom, Microsoft, Nvidia, and Vanguard Dividend Appreciation ETF. The Motley Fool has a disclosure policy.
Charles Schwab (SCHW) defies perceptions of stagnation, posting record-breaking Q1 2026 results. SCHW's recent performance signals ongoing growth momentum, challenging the narrative of a mature, slow-growth firm. Q1 2026 numbers stand among the strongest in SCHW's history, highlighting robust operational execution.
Investors might want to bet on Pan American Silver (PAAS - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Pan American Silver is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Pan American Silver imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Pan American SilverThis silver mining company is expected to earn $4.65 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Pan American Silver. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.1%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Pan American Silver to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Pan American Silver (PAAS - Free Report) ended the recent trading session at $51.92, demonstrating a +1.86% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
The silver mining company's shares have seen a decrease of 7.65% over the last month, not keeping up with the Basic Materials sector's gain of 3.28% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Pan American Silver in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.08, marking a 151.16% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.29 billion, indicating a 58.43% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.65 per share and revenue of $5.19 billion, indicating changes of +83.07% and +43.54%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Pan American Silver. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Pan American Silver holds a Zacks Rank of #2 (Buy).
Digging into valuation, Pan American Silver currently has a Forward P/E ratio of 10.95. For comparison, its industry has an average Forward P/E of 11.62, which means Pan American Silver is trading at a discount to the group.
One should further note that PAAS currently holds a PEG ratio of 0.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Mining - Silver industry had an average PEG ratio of 0.4.
The Mining - Silver industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 25, finds itself in the top 11% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
June 16, 2026 16:15 ET | Source: Cronos Group Inc.
TORONTO, June 16, 2026 (GLOBE NEWSWIRE) -- Cronos Group Inc. (“Cronos” or the “Company”) (NASDAQ: CRON) (TSX: CRON), an innovative global cannabis company, announced today that it has filed with the Toronto Stock Exchange (the “TSX”), and the TSX has accepted, the Company’s notice of intention to make a normal course issuer bid (the “TSX NCIB”).
As previously announced by Cronos, the Company’s Board approved a share repurchase program on May 8, 2026, which commenced on May 14, 2026 and is expected to terminate on May 13, 2027, unless earlier terminated (the “Share Repurchase Program”). Pursuant to the TSX NCIB, repurchases under the Share Repurchase Program may now also be made from time to time pursuant to the facilities of the TSX and other alternative Canadian trading systems, in addition to being made through open market purchases at then-prevailing market prices through the facilities of the Nasdaq Global Market or other U.S. published markets, privately negotiated transactions or otherwise, as previously announced. Pursuant to the Share Purchase Agreement entered into on May 14, 2026, Celadon Financial Group, LLC has been appointed as the Company’s agent to repurchase shares on its behalf. Any such repurchases will be executed through Virtu Canada Corp. when made over the facilities of the TSX or other alternative Canadian trading systems
Pursuant to the Share Repurchase Program (including the TSX NCIB), Cronos intends to purchase for cancellation up to US$50 million of common shares in the capital of the Company (the “Common Shares”) (in any case subject to a maximum of 18,712,918 Common Shares, representing approximately 5.02% of Cronos’ 373 million issued and outstanding Common Shares as at June 1, 2026).
Under the TSX NCIB, Cronos may purchase up to 53,968 of its Common Shares on the TSX during any trading day, which represents 25% of the average daily trading volume of 215,873 Common Shares on the TSX for the 6 months ended May 31, 2026, other than block purchase exemptions. Purchases under the TSX NCIB may commence on June 19, 2026 and continue until the date on which the Share Repurchase Program terminates as noted above.
The TSX NCIB will be conducted in accordance with TSX rules and policies through the facilities of the TSX. The price that Cronos will pay for any Common Shares will be the market price prevailing at the time of purchase or such other price as may be permitted.
Additionally, on June 15, 2026, Cronos obtained an exemption order (the "NCIB Exemption") from the Ontario Securities Commission, permitting Cronos to make repurchases under the Share Repurchase Program through the facilities of the NASDAQ and other United States-based trading systems in excess of the maximum that would otherwise be allowable under applicable Canadian securities laws absent an exemption. The NCIB Exemption allows Cronos to repurchase on such U.S. marketplaces up to the greater of 5 percent of Cronos’s outstanding shares and 10 percent of Cronos' public float, provided that Cronos' aggregate repurchases on all marketplaces do not exceed this amount over the approximately 11-month period of the TSX NCIB, which is consistent with the maximum number of shares Cronos is able to purchase under the TSX NCIB. The other conditions to the NCIB Exemption will be outlined in Cronos' quarterly report on Form 10-Q for the quarter ended June 30, 2026 filed on EDGAR and SEDAR+.
About Cronos
Cronos is a global cannabis company focused on scaling leading consumer goods products through research and development and innovation. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos’ diverse international brand portfolio includes Spinach®, PEACE NATURALS®, LIT™ and Lord Jones®. For more information about Cronos and its brands, please visit: thecronosgroup.com.
Forward-Looking Information
This press release may contain information that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws and court decisions (collectively, “Forward-looking Statements”). All information contained herein that is not clearly historical in nature may constitute Forward-looking Statements. In some cases, Forward-looking Statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”, “believe” or the negative of these terms, or other similar expressions intended to identify Forward-looking Statements. The forward-looking information in this news release includes, but is not limited to, statements related to the Company’s intention to commence the TSX NCIB and the timing and quantity of any purchases of Common Shares under the TSX NCIB and the Share Repurchase Program. Forward-looking Statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks. Financial results, performance or achievements expressed or implied by those Forward-looking Statements and the Forward-looking Statements are not guarantees of future performance. A discussion of some of the material risks applicable to the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, each of which has been filed on SEDAR+ and EDGAR and can be accessed at www.sedarplus.ca and www.sec.gov/edgar, respectively. Any Forward-looking Statement included in this press release is made as of the date of this press release and, except as required by law, Cronos disclaims any obligation to update or revise any Forward-looking Statement. Readers are cautioned not to put undue reliance on any Forward-looking Statement.
For further information, please contact:
Harrison Aaron
Investor Relations
Tel: (416) 504-0004 [email protected]
LAS VEGAS, June 16, 2026 (GLOBE NEWSWIRE) -- VSiN, The Sports Betting Network, today announced the launch of its new Free Ad-Supported TV (FAST) channel, Best Bets TV, powered by VSiN to reach more sports fans. Leveraging podcast and live content from across VSiN’s platforms, the new 24/7 channel delivers actionable sports betting content to a broader audience — combining highlights from its live linear programming, original analysis, and video podcasts in a free streaming format.
Best Bets TV provides broadcast and streaming services access to the full 24/7 channel or blocks of programming that can be integrated into daily schedules. The full 24/7 Best Bets TV channel is currently streamed exclusively on the OrkaTV platform within its sports category now streaming on Roku, Fire TV, Google Play, Android OS, tv.orka.tv, and coming soon on all Smart TV platforms.
“VSiN programming for Best Bets TV is a unique offering in FAST, with specially curated clips and three hours of live programming each weekday,” said Mike Woods, Founder and CEO of OrkaTV. “As viewers increasingly turn to streaming for live television, Best Bets TV represents the kind of dynamic content that we're focused on bringing to the OrkaTV platform. In partnership with VSiN, we're creating a compelling destination for sports fans who want insight, analysis, and live coverage throughout the day.”
In addition to the exclusive launch of its 24/7 channel on OrkaTV, select Best Bets TV sports betting content airs on Anthem’s Game+, available across North America through major IPTV, cable, and satellite systems, as well as Marquee Sports Network, available directly and via providers like Hulu+ Live TV, FuboTV, DIRECTV and various cable providers.
“VSiN continues to grow its distribution footprint across every major platform to reach more sports fans in more ways with its award-winning sports betting content,” said Miles Gwyn, chief operating officer at VSiN. “With the launch of Best Bets TV, we have an incredible opportunity to introduce VSiN content to millions of new viewers, while leveraging some of the content we’re already creating. We expect to continue this rapid expansion to make sports betting information accessible to every fan, by providing the credible insights, expert commentary, and entertainment that make VSiN the leading voice in sports betting.”
The launch of Best Bets TV leverages VSiN’s daily output of more sports betting content than there are hours in a day and underscores the network’s commitment to delivering credible, high-quality sports betting programming wherever and however fans consume it. The new channel curates the most timely, engaging, and informative segments to give millions of new sports fans access to the network’s programming on free-to-watch platforms.
The new channel taps a mix of AI clipping through a partnership with TVU Networks and manual clipping to generate more than 150 new video clips each day. The network’s partnership with Zype for content organization and management enables deep content customization through rich metadata. VSiN’s Amagi collaboration uses metadata to build shows with dynamic themes and content, while prioritizing the most recent clips. This first-of-its-kind system helps VSiN curate content to deliver the most relevant and timely programming to sports fans everywhere.
Programming on Best Bets TV draws from VSiN’s leading podcasts, including “The GM Shuffle,” “Fade Us Sports,” “The College Football Betting Podcast,” and “Pod to the Futures,” alongside up to three hours of live content daily such as “VSiNLive on Mad Dog Radio,” which simulcasts weekdays on SiriusXM. The channel also features clips from VSiN’s live linear shows, packaging key betting insights, expert analysis, and daily highlights in new ways to help fans make more informed wagering decisions.
About VSiN
VSiN, The Sports Betting Network, is the first sports media company dedicated to providing news, analysis, and proprietary data to the millions of Americans who wager on sports and power the multibillion-dollar sports betting industry. Fueled by award-winning broadcasters and legendary oddsmakers, VSiN delivers sports betting insights across multiple platforms — including YouTube TV, SiriusXM, SportsNet Pittsburgh, Marquee Sports Network, NESN, MASN, Spectrum SportsNet LA, iHeartRadio, TuneIn, more than 350 terrestrial radio stations throughout the U.S., VSiN.com, and VSiN.com/Podcasts.
VSiN’s broadcast studios are located inside Circa Resort & Casino in Las Vegas and Circa Sports at The Mint Gaming Hall in Franklin, KY.
About Game+
Game+ is the destination for fast-paced, live-action sports and dynamic coverage of wagering, fantasy sports, esports, and millennial-driven competition. From pickleball, sports betting and professional wrestling, Game+ delivers nonstop, competition-based entertainment. A subsidiary of Anthem Sports & Entertainment Inc. and a division of Anthem Sports Group, the network reaches millions of viewers across North America through linear and digital tv streams like FuboTV as well as its dedicated YouTube channel. For more information, visit www.gameplusnetwork.com, its YouTube Channel, Instagram and @GamePlusNetwork on X.
About OrkaTV
OrkaTV is a TV-native Advertising Technology provider and the leading media marketplace built specifically for the FAST and CTV ecosystem. Through direct relationships with hundreds of Streaming TV content providers, OrkaTV delivers cleaner access, smarter supply, stronger transparency, and big screen storytelling value to marketers, brands, and consumers around the world. Learn more at www.Orka.TV
About the OrkaTV Streaming TV Platform
The OrkaTV streaming platform brings together premium FAST channels, emerging creator-led content, and commerce-driven experiences in a single consumer-facing service. Already, OrkaTV has grown to 350 channels spanning international news, local media, sports, travel, lifestyle, kids and family programming, and emerging creator content. We help content creators expand their distribution, grow their audiences, and unlock new monetization opportunities. For business development, contact Lisa Hochberg at [email protected]
General Dynamics (GD - Free Report) closed at $364.11 in the latest trading session, marking a +1.27% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Prior to today's trading, shares of the defense contractor had gained 4.79% lagged the Aerospace sector's gain of 8.09% and outpaced the S&P 500's gain of 2.14%.
The upcoming earnings release of General Dynamics will be of great interest to investors. It is anticipated that the company will report an EPS of $3.93, marking a 5.08% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $13.43 billion, indicating a 2.97% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.58 per share and revenue of $55 billion, indicating changes of +7.24% and +4.65%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for General Dynamics. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, General Dynamics holds a Zacks Rank of #3 (Hold).
With respect to valuation, General Dynamics is currently being traded at a Forward P/E ratio of 21.69. This denotes a discount relative to the industry average Forward P/E of 24.92.
We can also see that GD currently has a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.53.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
On June 16, 2026, we delve into the DCF analysis for Cummins Inc CMI , a company that has shown remarkable price performance over the past year with a 116.1% increase. However, despite this impressive growth, our analysis indicates potential overvaluation based on intrinsic value calculations.
DCF Earnings-based intrinsic value of $261.55 vs current price of $679.71 (margin of safety: -159.9%) DCF FCF-based intrinsic value of $222.06 vs current price (second opinion margin of safety: -206.1%) GF Score™ of 84/100, indicating a reliable basis for the DCF inputs What Is CMI Worth? DCF Earnings-Based Model The DCF earnings-based model for Cummins Inc utilizes a two-stage approach to estimate intrinsic value. The first stage involves a growth phase lasting ten years, where we expect earnings per share (EPS) to grow at a rate of 5.8% annually. The second stage is a terminal phase, where growth slows to a 4% terminal rate for the following ten years. The discount rate applied to both stages is 11%, derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $21.52 10-Year Growth Rate 5.8% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth stage, the EPS is projected to grow at 5.8% per year for ten years, resulting in a present value of $166.84 per share. Following this, the terminal stage reflects a 4% growth rate for another ten years, yielding a present value of $94.71 per share. The combined intrinsic value from both stages amounts to $261.55.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 5.8%, discounted at 11% $166.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $94.71 Intrinsic Value Growth + Terminal $261.55 With the current price at $679.71, Cummins Inc is significantly overvalued, reflecting a margin of safety of -159.9%. It is important to note that GuruFocus employs EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, visit the CMI DCF Calculator.
What Does the Free Cash Flow DCF Say? When we consider the Free Cash Flow (FCF) DCF model, the intrinsic value is calculated at $222.06. This value is lower than the earnings-based intrinsic value of $261.55, indicating a divergence in the two models. Both models suggest that Cummins Inc is significantly overvalued, with the FCF-based model reflecting a margin of safety of -206.1%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Cummins Inc stands at $324.62, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure, calculated from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that Cummins Inc is overvalued. For more information, visit the GF Value™ page.
What Does CMI'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 historically generated higher long-term returns (backtested from 2006 to 2021).
Metric Rating GF Score™ 84/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 With a predictability rank of 1 out of 5 stars, it is important to note that higher predictability ratings generally lead to more reliable DCF estimates for stocks. For additional insights, visit the CMI stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Cummins Inc, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In conclusion, the analysis of Cummins Inc using the DCF earnings model, DCF FCF model, and GF Value™ indicates a clear consensus of overvaluation. Investors should approach this stock with caution, as all three valuation models suggest that the current price significantly exceeds intrinsic values. For the full DCF analysis, visit the CMI 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 CMI's intrinsic value based on DCF?
earnings-based $261.56, FCF-based $222.06
Is CMI overvalued or undervalued?
Based on the DCF and GF Value™ consensus, CMI is overvalued.
How reliable is the DCF model for CMI?
The predictability rank of 1/5 indicates that the DCF model is less reliable for CMI.
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].
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cummins (CMI - Free Report) Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 650 company-owned and independent distributor facilities in over 19,000 dealer locations in more than 190 countries and territories.
CMI is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Auto-Tires-Trucks stock. CMI has a Momentum Style Score of B, and shares are up 0.3% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $3.26 to $29.29 per share. CMI boasts an average earnings surprise of +17.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CMI should be on investors' short list.
Cummins to supply natural gas, prime power solution for Circe Energy’s West Texas AI campus development, a turn-key power generation data center campus, demonstrating the increasing demand for on-site technologies to power data centers across North America.
COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. announced an agreement with Circe Energy to provide a series of high-powered, high-efficiency natural gas generator sets to support a scalable, behind-the-meter, prime power microgrid solution for their High-Performance Computing (HPC) data center located in Texas. Deliveries are scheduled from 2026 through 2030 and will include Cummins’ HSK78 (C2000N6CD) and QSK60 (C1400N6) generator set platforms.
The announcement reflects Cummins’ expanding role in supporting the North American data center market with natural gas-fueled generator sets and integrated microgrid controls designed to address power grid constraints, improve reliability and enable fast-start response capabilities in an era of unprecedented AI demand.
The power system will support Circe’s behind-the-meter power need for their AI HPC data center campuses, including its West Texas campus development, by utilizing Cummins’ HSK78 (C2000N6CD) and QSK60 (C1400N6) high-horsepower natural gas generator sets as the primary power source - without reliability on the grid.
As demand for artificial intelligence and other power-intensive digital infrastructure accelerates, data center developers are increasingly evaluating on-site power generation as part of their energy strategy. When integrated with microgrid controls and utility interconnection planning, natural gas solutions can provide a flexible pathway to support phased energization, redundancy, cost-competitive power delivery, and long-term grid integration.
“Data center customers are navigating a new power reality where speed, reliability, and availability are just as critical as capacity—and downtime is not an option,” said Susan Cleaver, Executive Director of Cummins Global Power Generation business. “Cummins natural gas power solutions help customers meet unprecedented growth in data demand while closing utility power gaps with dependable on-site generation for large, power-intensive facilities.”
Natural gas generation for data center applications
Across North America, utility interconnection timelines and grid constraints are creating challenges for data center developers seeking to bring capacity online quickly and reliably. Cummins’ natural gas solutions directly support Circe Energy’s on-site power model by providing dependable, scalable generation assets that can be deployed in phases as customer demand grows. This helps Circe deliver dependable prime power for data center applications, giving customers a practical path to bring capacity online sooner while maintaining flexibility for future growth.
For data center and AI campus applications, Cummins supports customers with:
Natural gas power generation systems Microgrid architecture and integrated system controls AI/High-Performance Computing (HPC)-focused microgrid design Operational data sharing and system refinement System performance pre-configuration, validation, and testing through Cummins’ Power Integration Center (PIC) microgrid laboratory Technical project coordination with developers, engineers and operators Long-term service support through Cummins’-owned and operated North American service network Cummins power generation solutions and technologies are designed to help data center customers evaluate practical pathways for reliable power during an era of unprecedented growth.
Supporting Circe Energy’s West Texas development
Circe Energy’s West Texas campus is designed as a modular deployment platform capable of phased energization beginning in 2027.
The platform combines mission-critical microgrid architecture with HPC-ready powered shell facilities designed for high-density AI compute, liquid cooling compatibility, and long-term scalability.
Cummins is providing the power generation equipment and technical validation support, while Circe and its engineer-of-record retain responsibility for final system design and implementation.
“AI infrastructure depends on both power availability and delivery timing,” said Dagan Baroco, Chief Commercial Officer of Circe Energy. “Securing prime power natural gas generation solutions from Cummins, combined with our microgrid architecture and powered shell design, enables Circe to deliver scalable AI campus infrastructure on a predictable timeline while providing customers with a reliable and cost-competitive alternative to traditional grid-dependent development.”
Powering the next phase of digital infrastructure
This specific project reflects a broader trend in the North American data center market: customers are seeking power solutions that combine efficient and resilient power generation capacity, technical system integration, and advanced technical lifecycle service support.
“With growing demand from AI and high-performance computing, the data center industry needs energy strategies that are both reliable and adaptable,” said Zach Gillen, Vice President - Distribution Business Sales & Service North America. “Cummins brings over 100 years of power generation expertise and is uniquely positioned to help customers deploy reliable, scalable energy solutions. From natural gas generator sets and microgrids to system integration and technical support, Cummins helps bring complex power systems online faster and with greater confidence.”
About Circe Energy
Circe Energy develops scalable behind-the-meter power and powered shell infrastructure platforms for AI, HPC and mission-critical applications. By integrating secured generation supply, advanced microgrid architecture, natural gas supply, land, and HPC-optimized building design, Circe delivers predictable, reliable energization pathways that mitigate grid risk and enable accelerated deployment timelines.
About Cummins Inc.
Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 67,400 people worldwide and earned $2.8 billion on $33.7 billion in sales in 2025.
Key Takeaways COST, CMI and KMT passed earnings acceleration screens from a 7,735-stock universe. Cummins expects 23.2% earnings growth this year across its global power solutions business. Kennametal projects 123.1% earnings growth this year in advanced materials and tooling. Investors often consider consistent earnings growth to be the hallmark of a financially sound company. However, an even more powerful indicator is earnings acceleration, which can be a key driver for stock price gains. Research shows that many of the market’s top-performing stocks demonstrate earnings acceleration before their share prices start to climb upward.
To that end, Costco Wholesale Corporation (COST - Free Report) , Cummins Inc. (CMI - Free Report) and Kennametal Inc. (KMT - Free Report) are showing strong earnings acceleration.
Why Earnings Acceleration Often Precedes Stock Price Gains Earnings acceleration refers to the incremental growth in a company’s earnings per share (EPS). Put simply, if a company’s quarter-over-quarter earnings growth rate increases over a given period, it can be called earnings acceleration.
In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps identify stocks that haven’t yet caught investors’ attention and, once secured, will invariably lead to a rally in share price. This is because earnings acceleration considers both the direction and magnitude of growth rates.
An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down.
Find Winning Stocks Faster With Research Wizard Look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods’ growth rates. The projected EPS growth rate for the upcoming quarter is expected to exceed that of prior periods.
EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).
EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).
EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).
In addition to this, we have added the following parameters:
Current Price greater than or equal to $5: This screens out low-priced stocks.
Average 20-day volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
The above criteria narrowed the universe of around 7,735 stocks to only 17. Here are the top three stocks:
Costco Wholesale Costco Wholesale operates membership warehouse clubs across the United States and several international markets. Costco Wholesale has a Zacks Rank #3 (Hold). COST’s expected earnings growth rate for the current year is 13.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cummins Cummins delivers a range of power solutions worldwide, operating across five key segments, including Engine and Power Systems. Cummins has a Zacks Rank #2 (Buy). CMI’s expected earnings growth rate for the current year is 23.2%.
Kennametal Kennametal develops and supplies advanced materials and industrial solutions, including tungsten carbide and ceramics, worldwide. Kennametal has a Zacks Rank #3. KMT’s expected earnings growth rate for the current year is 123.1%.
Highlights where AI and automation are delivering measurable gains in uptime, quality and production performance across automotive manufacturing
, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, has partnered with the Center for Automotive Research (CAR) to release a new white paper today. The report, Smart Manufacturing in Automotive: Deployment and Impact, was authored by CAR using comprehensive data from Rockwell Automation to detail how artificial intelligence (AI), machine learning (ML) and automation are reshaping manufacturing across the automotive, tire and battery industries.
Rockwell Automation and the Center for Automotive Research release new white paper on the next phase of smart manufacturing in automotive The research shows that the industry is entering a new phase of adoption. For manufacturers, the question is no longer whether to invest in smart manufacturing, but how quickly and where to apply it.
Automakers and suppliers already operate with advanced automation in body, paint and welding. The shift now is into areas that have been harder to automate, including electronics assembly, validation, production coordination and logistics. At the same time, AI and ML are improving predictive maintenance, inspection accuracy and system performance across existing operations.
"The industry has built a strong automation foundation. What is changing now is how manufacturers are using AI and data to manage growing complexity, improve decision-making, and create competitive advantage," said Edgar Faler, principal mobility analyst and strategy lead at CAR. "Those that move faster are starting to see measurable advantages."
The white paper combines CAR analysis with proprietary data from Rockwell Automation's 11th annual State of Smart Manufacturing report. It highlights key drivers accelerating adoption, including more complex production environments, ongoing warranty pressures, rising costs and increasing global competition. Automation is also helping enable onshoring by supporting cost-competitive production in tight labor markets.
Manufacturers are already reporting measurable results, including up to 50% reductions in unplanned downtime in select applications, approximately 5% improvements in overall equipment effectiveness and 5% to 7% gains in throughput from real-time production analytics.
"Manufacturers are being asked to do more with less while managing greater complexity," said James Glasson, VP Global Industry – Automotive, Tire & Advanced Mobility at Rockwell Automation. "The combination of automation and AI is helping teams identify issues earlier, reduce downtime and improve performance across plants. The difference now is how effectively companies scale these capabilities."
The findings also point to a growing divide across the industry. Differences in adoption are creating gaps in quality, uptime and productivity, with implications for supplier performance and long-term competitiveness.
The full white paper is available here: https://www.rockwellautomation.com/en-us/industries/automotive-tire/smart-manufacturing-automotive-whitepaper2.html
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
About the Center for Automotive Research
The Center for Automotive Research (CAR) is a nonprofit organization based in Ann Arbor, Michigan, that produces independent research, convenes industry stakeholders, and provides insights on critical issues facing the mobility and automotive sectors. CAR's work spans manufacturing, technology, policy, and economic trends shaping the global automotive industry. For more information, visit www.cargroup.org.
CVS Health (CVS +0.04%) encountered significant problems after the pandemic. Revenue growth slowed while expenses rose -- squeezing profits and margins -- due to several challenges. However, the pharmacy chain giant has been bouncing back. The stock has climbed by 48% over the past 12 months. The good news is that CVS Health's comeback may be just getting started, and there is plenty of upside ahead for investors willing to be patient.
Image source: The Motley Fool.
Anatomy of a comeback CVS Health faced several problems after the pandemic. For instance, sales of pandemic-related products, such as diagnostic tests, slowed significantly. More importantly, though, CVS Health dealt with rising utilization and costs in its health insurance division, particularly in its Medicare Advantage (MA) business. The company revised its guidance downward several times due to this issue, signaling an uncertain environment. However, over the past year, CVS Health has improved its financial results.
They are still getting better, as the company proved during the first quarter. The healthcare giant's revenue increased by about 6% year over year to $100.4 billion. Its adjusted earnings per share rose to $2.57, up about 14% from the year-ago period. Further, CVS Health increased its EPS guidance for the fiscal year 2026. Considering the company's results came in ahead of analyst estimates, it was a raise-and-beat quarter for CVS Health. But why is the company performing better?
There are several factors. Let's consider two. First, during the first quarter, CVS Health's medical benefit ratio (MBR) dropped to 84.6%, down 2.7% compared to the first quarter of 2025. The MBR measures the percentage of premium revenue insurers spend on members' healthcare costs. A lower MBR means higher profits, so this is good news for CVS Health. Second, CVS Health has improved the efficiency of its insurance business by digitizing the prior authorization process. These efforts, and others, have helped keep costs in check and increase the company's profits.
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Why the rebound isn't over We have yet to see the full effect of CVS Health's initiatives, and the company will likely double down on various efforts to improve its business. The pharmacy leader had plans to scale back its MA business this year. That could lead to lower overall revenue, but CVS Health wants to focus on profitable growth. That's good news for investors. Beyond the company's short-term outlook, though, long-term investors will find a lot to like with CVS Health.
The company's large, diversified healthcare business enables it to support patients throughout much of their care journey, whether through its primary care operations, insurance business, pharmacy services, and more. This can be more convenient for patients. Instead of relying on separate entities for their medical needs, CVS Health provides many of them under a single umbrella.
Just as important, CVS Health's vertically integrated model enables it to deliver and finance healthcare services, thereby reducing total expenses by directing patients to lower-cost options. Further, CVS Health has also built a solid brand as a trusted name in the healthcare sector, an advantage that is hard to replicate. All of these factors position CVS Health well to benefit from long-term secular trends, such as the world's aging population, that will drive increased healthcare utilization and higher spending in the sector.
CVS Health is also a solid dividend stock. The company has increased its payouts by 56.5% over the past decade, and it offers a forward dividend yield of 2.6%. Finally, CVS Health remains attractively valued, even after its run over the past 12 months. The company is trading at 13.8x forward earnings, versus the healthcare sector's average of 17.4x. CVS Health remains a top long-term pick for investors.
On Wednesday, Kevin Warsh will step to a podium inside the Federal Reserve’s headquarters and take questions as Fed Chair for the first time.
Sworn in on May 22nd after a 54-45 Senate vote, Warsh will have just gaveled out his first FOMC meeting, and the rate decision itself is a foregone conclusion — the committee is universally expected to hold the federal funds rate at 3.50%-3.75%, where it has sat since December. Nearly 100% of futures traders expect no change.
So the decision isn’t the story. The tone is — and I think there’s a real chance Warsh sounds more dovish than the hawkish consensus expects.
Expectations Ahead of the June Fed Meeting Here’s the conventional wiring of this meeting. Inflation has run hot this year — the April reading hit a three-year high — and the energy spike from the Iran war made it worse. The widespread expectation is that the updated Summary of Economic Projections will skew hawkish, showing both higher inflation and a slightly higher path for rates.
On paper: a hawkish hold, a higher-for-longer dot plot, and a new chair with a reputation for inflation vigilance.
But that framing is already stale, and the reason landed over the weekend. On Sunday, the United States and Iran announced a framework to end the war, with a toll-free reopening of the Strait of Hormuz and the lifting of the U.S. naval blockade. The market response was immediate: U.S. crude plunged more than 5% to below $80 a barrel, its lowest level since early March, having already tumbled more than 6% the prior week in anticipation.
The single biggest driver of the inflation scare that justified the hawkish posture is unwinding in real time — and crucially, the dot plot now in front of the committee was largely finalized before any of this happened.
That matters because the inflation problem was always more about energy than a genuinely overheating economy. Underneath the alarming 4.2% headline CPI we received last week, the core has been cooling: core CPI rose just 0.2% month over month in May, below expectations, and stripping out food, shelter, and energy leaves underlying inflation running near 2.4% — essentially at target. A supply shock that’s now reversing, layered on a cooling core, is precisely the kind of inflation a central bank is supposed to look through.
Then there’s Warsh himself. President Trump chose him specifically because he wanted lower rates, and reiterated days before the meeting that there was “no reason” to raise and that the Fed should cut — political cover most chairs never get. Add a new leader eager to define his era, one who has criticized the Fed for letting its own forecasts drive policy errors, and you have someone with both the inclination and the justification to downplay a hawkish dot plot and crack the door to cuts later this year.
In fairness, this is a contrarian call. Warsh built his reputation as an inflation hawk, the projections may print higher, and his communication-minimalist instincts mean he could reveal little. The dovish surprise is a probability, not a certainty. But with the entire market braced for hawkishness, the risk/reward around his tone is asymmetric — it wouldn’t take a cut to move things, only an acknowledgment that a fading oil shock changes the calculus.
If he leans dovish, the rate-sensitive corners of the market that have spent substantial time priced for higher-for-longer stand to benefit most. Two names stand out — both carrying a Zacks Rank #2 (Buy), but offering very different risk profiles.
Stocks to WatchThe first is Prologis (PLD - Free Report) , the quality anchor. The world’s largest industrial and logistics REIT is about as direct a beneficiary of falling rates as exists, since REIT valuations and financing costs move inversely to yields.
Our Zacks Rank system upgraded PLD to a Buy recently, and the fundamentals back it up: first-quarter core funds from operations (FFO) of $1.50 per share rose 5.6% year over year and beat the consensus. The 2026 FFO consensus has been revised higher and points to mid-single-digit growth, with revenues expected up about 4.9%. A scaled, well-financed compounder with a growing data-center conversion angle, Prologis is the steady, income-oriented way to play the pivot.
Image Source: StockCharts
The second is T1 Energy (TE - Free Report) , the higher-torque play — and certainly the more speculative of the two. The company is building an integrated U.S. solar-and-battery manufacturing supply chain, a clean-energy capex story that is intensely sensitive to financing costs: lower rates lift project economics and demand.
The momentum is real — first-quarter revenue surged to $177.7 million, up 175% year over year and crushing the Zacks Consensus Estimate — and its pending acquisition of battery-storage firm KORE Power pushes it toward the AI-data-center power theme.
Image Source: StockCharts
It now carries a Zacks Rank #2 (Buy) with a second-best Growth Score of B, reflecting the favorable turn in estimate revisions.
Bottom LineWednesday afternoon is the catalyst, and the crowd is leaning hard one way.
If Warsh looks through a supply shock that’s already resolving and signals that cuts remain on the table, rate-sensitive plays like Prologis and T1 Energy are positioned to re-rate — the former with the ballast of a blue-chip REIT, the latter with the leverage of a high-beta growth name.
NEW YORK--(BUSINESS WIRE)--BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, today announced that McDermott Will & Schulte has signed a lease for approximately 150,000 square feet at 343 Madison Avenue in New York City. The firm will occupy floors 31 through 37 of the 930,000 square foot premier workplace, which is currently under construction and will provide direct access to Grand Central Terminal's Madison Concourse bet.
NEW YORK & LONDON--(BUSINESS WIRE)--Unilever (LON: ULVR) is partnering with Accenture (NYSE: ACN) to scale the use of AI-enabled digital twins across its global manufacturing network. The next-generation technology will help factories improve quality, boost efficiency and respond more quickly to consumer demand. The multi-year program marks a further step in Unilever’s journey to apply pioneering technology across its value chain as the company sets out to shape the future of the consumer goods industry.
Digital twins are virtual models of factory equipment and production lines. They use live data from physical systems on the shop floor to monitor and predict how machines and processes perform.
By integrating digital twins with AI-enabled insights and agentic capabilities, Unilever is equipping manufacturing teams with advanced tools to identify issues sooner, simulate scenarios faster, and make smarter decisions across the production cycle.
Building on digital twins already in use, Unilever plans to expand adoption over the next 18 months by building more than 40 new digital twins, creating a scalable blueprint for global rollout.
“Scaling AI across our operations isn’t just a technological shift, it’s a commitment to superior products, sustainability and empowering our teams across our factories,” said Adam Raeburn-James, Global VP for Digital Business Operations, Unilever. “Through our partnership with Accenture to accelerate digital twins, we are turning innovation into measurable impact to create desirable brands for our 3.7 billion consumers worldwide.”
“Unilever has long been recognized for its supply chain excellence, and expanding the use of manufacturing digital twins reflects the company’s continued focus on both technology and people,” said Nicole van Det, CEO Accenture Netherlands and Nordics and global account lead for Unilever.
“Having invested early in AI, the company is setting the standard for pairing advanced tools with smart process design and disciplined execution on the shop floor. Together, we’re setting the benchmark for how industrial AI creates long-lasting value in the consumer goods sector.”
Accenture is supporting Unilever in deploying industrial AI capabilities that use advanced analytics and AI agents to predict maintenance needs, improve performance, and help teams act faster. As the system learns and employees gain confidence in its accuracy, it can progressively take on certain adjustments automatically, with human oversight.
Digital twins delivering impact across Unilever’s manufacturing network
Digital twins are already delivering tangible benefits across multiple Unilever sites:
Superior quality and improved throughput for personal care: In Raeford, North Carolina, United States, a digital twin powering the production of iconic brands including Dove, Degree, and Axe predicts 95% of process flow restrictions in deodorant stick manufacturing, delivering a 20% reduction in waste and a 10% uplift in capacity.Lower energy consumption for home care products: In Haldia, India – dedicated to powder detergents such as Surf and Sunlight—an energy twin optimises fan speeds, temperature setpoints and moisture controls, helping achieve a tangible reduction in thermal energy consumption over two years, supporting delivery towards Unilever's scope 1 and 2 climate target.Better mayonnaise consistency, less waste: In Poznan, Poland – home to producing such iconic brands as Knorr and Hellmann’s—a digital twin stabilizes viscosity variation in mayonnaise, while reducing minor stoppages by up to 20% and cutting waste by nearly 30%.Elevating the quality of Dove soap: At Gandhidham, India – one of our largest personal care sites in South Asia—a digital twin helped reduce quality defects by 30% over four years through real-time control recommendations—as measured in distribution centers right before the product is delivered to the customer.Efficient ingredients use, consistent quality: In Cu Chi, Vietnam – where Unilever produces liquid home care products such as OMO laundry detergent—an intelligent mixer powered by an AI digital twin optimizes raw materials dosing, preventing overuse and delivering 1–2% savings in premium ingredients while maintaining superior product quality.Unilever's operational excellence, efficiency and sustainable growth across its supply chain have been recognized by the World Economic Forum’s Global Lighthouse Network, where Unilever holds the highest number of designations in the consumer goods sector.
Its manufacturing AI partnership with Accenture builds on previously announced efforts to scale next-generation technology across business operations, including identifying and testing new AI solutions through the AI Horizon3 Lab in Toronto, Canada.
About Unilever
Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care and Foods products, with sales in over 190 countries and products used by 3.7 billion people every day. We have 96,000 employees and generated sales of €50.5 billion in 2025. For more information about Unilever and our brands, please visit www.unilever.com.
About Accenture
Accenture helps the world’s leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed for organizations across industries. Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI, and to be the most client-focused, AI-enabled, great place to work in the world. We bring together the talent of our approximately 786,000 people with proprietary assets and platforms, deep process and industry expertise, and leading ecosystem relationships to deliver end-to-end solutions and measurable outcomes at scale. Through our Reinvention Services, we offer broad expertise across Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent, with advanced capabilities in AI and Data, Industry and Process, and Technology. We serve approximately 9,000 clients and generated approximately $70 billion in FY25 revenue. Visit us at accenture.com.
Accenture Forward-Looking Statement
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, that the collaboration might not achieve its anticipated benefits and risks and uncertainties related to the development and use of AI, including advanced AI, could harm our business, damage our reputation or give rise to legal or regulatory action, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
Unilever Scales Digital Twins Across Global Manufacturing Network with Accenture Unilever (LON: ULVR) is partnering with Accenture (NYSE: ACN) to scale the use of AI-enabled digital twins across its global manufacturing network. The next-generation technology will help factories improve quality, boost efficiency and respond more quickly to consumer demand. The multi-year program marks a further step in Unilever’s journey to apply pioneering technology across its value chain as the company sets out to shape the future of the consumer goods industry.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260616442266/en/
Unilever is partnering with Accenture to scale the use of AI-enabled digital twins across its global manufacturing network.
Digital twins are virtual models of factory equipment and production lines. They use live data from physical systems on the shop floor to monitor and predict how machines and processes perform.
By integrating digital twins with AI-enabled insights and agentic capabilities, Unilever is equipping manufacturing teams with advanced tools to identify issues sooner, simulate scenarios faster, and make smarter decisions across the production cycle.
Building on digital twins already in use, Unilever plans to expand adoption over the next 18 months by building more than 40 new digital twins, creating a scalable blueprint for global rollout.
“Scaling AI across our operations isn’t just a technological shift, it’s a commitment to superior products, sustainability and empowering our teams across our factories,” said Adam Raeburn-James, Global VP for Digital Business Operations, Unilever. “Through our partnership with Accenture to accelerate digital twins, we are turning innovation into measurable impact to create desirable brands for our 3.7 billion consumers worldwide.”
“Unilever has long been recognized for its supply chain excellence, and expanding the use of manufacturing digital twins reflects the company’s continued focus on both technology and people,” said Nicole van Det, CEO Accenture Netherlands and Nordics and global account lead for Unilever.
“Having invested early in AI, the company is setting the standard for pairing advanced tools with smart process design and disciplined execution on the shop floor. Together, we’re setting the benchmark for how industrial AI creates long-lasting value in the consumer goods sector.”
Accenture is supporting Unilever in deploying industrial AI capabilities that use advanced analytics and AI agents to predict maintenance needs, improve performance, and help teams act faster. As the system learns and employees gain confidence in its accuracy, it can progressively take on certain adjustments automatically, with human oversight.
Digital twins delivering impact across Unilever’s manufacturing network
Digital twins are already delivering tangible benefits across multiple Unilever sites:
Superior quality and improved throughput for personal care: In Raeford, North Carolina, United States, a digital twin powering the production of iconic brands including Dove, Degree, and Axe predicts 95% of process flow restrictions in deodorant stick manufacturing, delivering a 20% reduction in waste and a 10% uplift in capacity.Lower energy consumption for home care products: In Haldia, India – dedicated to powder detergents such as Surf and Sunlight—an energy twin optimises fan speeds, temperature setpoints and moisture controls, helping achieve a tangible reduction in thermal energy consumption over two years, supporting delivery towards Unilever's scope 1 and 2 climate target.Better mayonnaise consistency, less waste: In Poznan, Poland – home to producing such iconic brands as Knorr and Hellmann’s—a digital twin stabilizes viscosity variation in mayonnaise, while reducing minor stoppages by up to 20% and cutting waste by nearly 30%.Elevating the quality of Dove soap: At Gandhidham, India – one of our largest personal care sites in South Asia—a digital twin helped reduce quality defects by 30% over four years through real-time control recommendations—as measured in distribution centers right before the product is delivered to the customer.Efficient ingredients use, consistent quality: In Cu Chi, Vietnam – where Unilever produces liquid home care products such as OMO laundry detergent—an intelligent mixer powered by an AI digital twin optimizes raw materials dosing, preventing overuse and delivering 1–2% savings in premium ingredients while maintaining superior product quality.Unilever's operational excellence, efficiency and sustainable growth across its supply chain have been recognized by the World Economic Forum’s Global Lighthouse Network, where Unilever holds the highest number of designations in the consumer goods sector.
Its manufacturing AI partnership with Accenture builds on previously announced efforts to scale next-generation technology across business operations, including identifying and testing new AI solutions through the AI Horizon3 Lab in Toronto, Canada.
About Unilever
Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care and Foods products, with sales in over 190 countries and products used by 3.7 billion people every day. We have 96,000 employees and generated sales of €50.5 billion in 2025. For more information about Unilever and our brands, please visit www.unilever.com.
About Accenture
Accenture helps the world’s leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed for organizations across industries. Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI, and to be the most client-focused, AI-enabled, great place to work in the world. We bring together the talent of our approximately 786,000 people with proprietary assets and platforms, deep process and industry expertise, and leading ecosystem relationships to deliver end-to-end solutions and measurable outcomes at scale. Through our Reinvention Services, we offer broad expertise across Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent, with advanced capabilities in AI and Data, Industry and Process, and Technology. We serve approximately 9,000 clients and generated approximately $70 billion in FY25 revenue. Visit us at accenture.com.
Accenture Forward-Looking Statement
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. These risks include, without limitation, that the collaboration might not achieve its anticipated benefits and risks and uncertainties related to the development and use of AI, including advanced AI, could harm our business, damage our reputation or give rise to legal or regulatory action, as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
Industry experts to share practical strategies for eliminating AP fragmentation, improving spend visibility and accelerating finance transformation through AI
London, UK – 16 June 2026 – Procurement Magazine is pleased to announce an exclusive webinar in partnership with Coupa and Rossum, The Global Accounts Payable Blueprint: Eliminating Fragmentation for Real-Time Visibility, taking place on 17 June 2026 from 10:00 AM to 11:00 AM BST.
As organisations continue to scale and evolve, finance, procurement and IT teams are increasingly challenged by fragmented systems, manual processes and disconnected workflows. These inefficiencies often create blind spots in spend visibility, delay payments, increase risk and limit an organisation's ability to maintain control over budgets and supplier relationships.
This webinar will explore how leading organisations are addressing these challenges through AI-powered automation, integrated procure-to-pay strategies and intelligent transactional workflows. Attendees will gain practical insights into how technology is helping businesses improve operational efficiency, strengthen compliance and create greater transparency across the source-to-pay lifecycle.
Learn from a Real-World Transformation
A key highlight of the session will be a customer success story from Eurowag, the international mobility and financial services provider, which partnered with Coupa, Rossum and Accenture to standardise its procure-to-pay processes following a period of rapid growth through acquisition.
By implementing automated accounts payable solutions and contract lifecycle management capabilities, Eurowag successfully transformed its finance operations, achieving:
100% standardised AP processes across the organisationA 70% automation rateA reduction in invoice processing times from nine days to fourMore than 90% on-time payment performanceA 30% improvement in paid-on-time metricsEnhanced compliance, fraud prevention and audit readiness "Coupa provides a clear, traceable link between purchase orders, receipts and invoices — supporting finance and compliance with a reliable audit trail," said Marcella Mathes, Head of Finance Processes and Digital Finance at Eurowag.
Expert Perspectives from Across the Industry
The webinar will feature a panel of experts representing procurement, finance, technology and transformation functions:
Petr Podávka, Accounts Payable Manager, EurowagAlexander Boehme, Manager Solutions Advisory, CoupaSam Overton, Regional Vice President, RossumJarda Privoznik, Technology Delivery Associate Director, Accenture Together, they will discuss how organisations can leverage automation and AI to streamline AP processes, improve supplier management, strengthen governance and build a more resilient operating model.
Exploring the Future of Autonomous Spend Management
The session comes shortly after Coupa's acquisition of Rossum, announced at Coupa Inspire 2026. The acquisition expands the companies' existing partnership and brings intelligent document processing capabilities deeper into the source-to-pay ecosystem.
Attendees will hear how AI-powered transactional intelligence is helping organisations move towards more autonomous finance operations while maintaining the controls and visibility required in today's increasingly complex business environment.
As procurement and finance leaders face growing pressure to drive efficiency, reduce costs and manage risk, understanding the role of AI within spend management has never been more important.
Register now to secure your place.
About Procurement Magazine
Procurement Magazine connects the world's leading procurement executives through premium content, events, research and thought leadership. The platform delivers insights into procurement strategy, technology, sustainability and supply chain innovation, helping organisations drive performance and transformation.
Accenture plc (NYSE:ACN) will release earnings for its third quarter before the opening bell on Thursday, June 18.
Analysts expect the Dublin, Ireland-based company to report quarterly earnings of $3.71 per share. That's up from $3.49 per share in the year-ago period. The consensus estimate for Accenture's quarterly revenue is $18.76 billion (it reported $17.73 billion last year), according to Benzinga Pro.
On June 8, Accenture agreed to acquire Whalar, a leading creator and social agency, from Whalar Group.
Shares of Accenture rose 1.7% to close at $170.28 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 ACN stock? Here’s what analysts think:
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Acquisition will support the continued growth of the Accenture Siemens Business Group
ROME & CHICAGO--(BUSINESS WIRE)--Accenture (NYSE: ACN) has agreed to acquire Industries eXcellence Group (“IndX”), a division of Engineering Group and long-standing partner of Siemens Digital Industries. The acquisition will strengthen Accenture’s ability to help manufacturers modernize product development, production and supply chain operations through software, data, and AI-enabled technologies.
“Manufacturers are increasingly investing in software, data and AI to make engineering and factory operations more flexible, intelligent and connected,” said Tracey Countryman, global supply chain and engineering lead at Accenture. “But many companies struggle to integrate these technologies across their products, factories, plants and supply chains. We will combine IndX’s proven expertise in Siemens technologies with Accenture’s AI capabilities and industry knowledge to solve this challenge for clients faster.”
Headquartered in Rome and Chicago, IndX brings proven expertise in software for discrete and process manufacturers from Siemens. It specializes in implementing digital thread solutions that help clients connect engineering, manufacturing and automation across IT and operational technology, from product lifecycle management, simulation and digital twins to Supervisory Control and Data Acquisition (SCADA), industrial edge computing and cloud computing.
IndX’s clients are leading companies in industries including aerospace & defense, automotive, consumer goods, energy, high tech, industrial equipment, life sciences and utilities. It has a team of more than 650 professionals based in Italy, US, India, Germany, other European countries and Mexico.
Once the acquisition has been completed, IndX’s team and capabilities are expected to support the continued growth of the Accenture Siemens Business Group, a dedicated global business practice formed last year, which combines leading industrial technology with AI-enabled engineering and manufacturing capabilities.
“Accenture’s acquisition of IndX is a milestone for the Accenture Siemens Business Group,” said Tony Hemmelgarn, President and CEO of Siemens Digital Industries Software. “It brings proven skills in our industrial solutions for digital manufacturing, engineering, automation, digital twin and simulation, plus long-standing relationships with clients that apply them.”
“Together with Siemens, we develop industrial AI-enabled solutions that shorten engineering time to market, increase manufacturing efficiencies and strengthen the digital core for our clients,” added Vivek Kaushik, global lead of Accenture Siemens Business Group at Accenture. “IndX will strengthen the Accenture Siemens Business Group and help deliver on Accenture and Siemens’ shared ambition to scale these AI solutions.”
Following the completion of the acquisition, Accenture plans to establish two new Centers of Excellence for Siemens DI solutions in Italy and India. The centers will bring together professionals with expertise in industrial software and advanced digital technologies to help clients improve how they design products, run factories, and manage supply chains by combining industrial software, AI and digital engineering capabilities.
“Italy has a unique combination of manufacturing excellence, engineering capabilities and innovation talent,” said Teodoro Lio, Market Unit Lead of Accenture Italy. “By expanding our Siemens industrial software capabilities and creating a new Center of Excellence in Italy, we are strengthening an ecosystem that can help Italian industry become even more competitive at the global level, accelerate digital transformation, and create highly specialized skills and jobs for the country.”
Accenture will integrate IndX’s assets and services for other technologies into its respective business units.
Terms of the transaction were not disclosed. Completion of the acquisition is subject to customary closing conditions.
Forward-Looking Statements
Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “aspires,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook,” “goal,” “target” and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance nor promises that goals or targets will be met, and involve a number of risks, uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed or implied. Many of the following risks, uncertainties and other factors identified below may be amplified by conflict in the Middle East, as well as any escalation or expansion of economic disruption or the conflict’s current scope. These risks include, without limitation, risks that: Accenture and Engineering Group will not be able to close the transaction in the time period anticipated, or at all, which is dependent on the parties’ ability to satisfy certain closing conditions; the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and geopolitical conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining client demand for the company’s solutions and services including through the adaptation and expansion of its solutions and services in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; risks and uncertainties related to the development and use of AI, including advanced AI, could harm the company’s business, damage its reputation or give rise to legal or regulatory action; if Accenture is unable to match people and their skills with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture faces legal, reputational and financial risks from any failure to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; if Accenture does not successfully manage and develop its relationships with its ecosystem partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; Accenture’s profitability could materially suffer due to pricing pressure, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; Accenture’s debt obligations could adversely affect its business and financial condition; as a result of Accenture’s geographically diverse operations and strategy to continue to grow in key markets around the world, the company is more susceptible to certain risks; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture’s global operations expose the company to numerous and sometimes conflicting legal and regulatory requirements; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s solutions or services infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.
About Accenture
Accenture helps the world’s leading enterprises reinvent by building their digital core and unleashing the power of AI to create value at speed for organizations across industries. Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI, and to be the most client-focused, AI-enabled, great place to work in the world. We bring together the talent of our approximately 786,000 people with proprietary assets and platforms, deep process and industry expertise, and leading ecosystem relationships to deliver end-to-end solutions and measurable outcomes at scale. Through our Reinvention Services, we offer broad expertise across Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent, with advanced capabilities in AI and Data, Industry and Process, and Technology. We serve approximately 9,000 clients and generated approximately $70 billion in FY25 revenue. Visit us at accenture.com.
Coinbase Global, Inc. (COIN - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned -10.5%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Coinbase Global falls in, has gained 1.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere 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.
Coinbase Global is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of +225%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.1%.
For the current fiscal year, the consensus earnings estimate of $1.74 points to a change of -56.8% from the prior year. Over the last 30 days, this estimate has changed -0.9%.
For the next fiscal year, the consensus earnings estimate of $4.52 indicates a change of +160.1% from what Coinbase Global is expected to report a year ago. Over the past month, the estimate has changed +1.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Coinbase Global.
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 Coinbase Global, the consensus sales estimate of $1.39 billion for the current quarter points to a year-over-year change of -7%. The $6.06 billion and $7.3 billion estimates for the current and next fiscal years indicate changes of -15.6% and +20.4%, respectively.
Last Reported Results and Surprise HistoryCoinbase Global reported revenues of $1.41 billion in the last reported quarter, representing a year-over-year change of -30.5%. EPS of -$0.17 for the same period compares with $1.94 a year ago.
Compared to the Zacks Consensus Estimate of $1.5 billion, the reported revenues represent a surprise of -5.61%. The EPS surprise was -147.22%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once 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.
Coinbase Global is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Coinbase Global. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
ToplineCrypto billionaire Brian Armstrong is calling for an overhaul to U.S. investment law and a redesign of the existing accredited investor framework—a decades-old gatekeeping system that determines which Americans can invest in private companies before they go public.
Coinbase CEO Brian Armstrong speaks onstage on Dec. 3, 2025.
Getty Images
Key FactsArmstrong, CEO of Coinbase, took to X late Monday night to slam accredited investor laws as upholding a "rich get richer" system and making it "illegal" for people who aren't already wealthy to benefit from early investment in promising companies.
The rules—which allow only "accredited investors" who can prove a certain level of wealth to invest in a company privately—are what keep ordinary Americans from investing in start-up funding rounds and other early opportunities before a company’s initial public offering.
By the time an IPO takes place and retail investors can buy stock, Armstrong argues “much of the upside has already been captured” and says everyday Americans are then fighting for limited returns, while accredited investors have already benefited.
Armstrong proposed two alternatives: replacing existing income and net worth requirements with a financial literacy test, or eliminating the accreditation standard entirely while preserving existing disclosure rules and fraud enforcement.
CRUCIAL QUOTE"These rules were created with the best of intentions, to protect regular people from scams—a noble idea," Armstrong said. “Unfortunately, in practice they've often made it illegal to get richer, unless you're already rich. A regressive tax!”
CHIEF CRITICBillionaire investor Mark Cuban took a swipe at Armstrong Tuesday, responding with a quippy: "Just sell em MemeCoins Brian !" Cuban’s post implied memecoins are one way retail investors can chase big returns without needing accredited status, but crypto fans said his cheeky jab was a sign of his "bitterness.” The sass also led to the creation of CUBEN, a Solana (CRYPTO: SOL) meme coin parodying him, Benzinga reported.
KEY BACKGROUNDAccredited investors can participate in private investments that are generally unavailable to the public—including private startup funding rounds, venture capital funds, private equity funds and hedge funds—before those investments become publicly traded. Under current Securities and Exchange Commission rules, a person must earn more than $200,000 annually—or $300,000 with a spouse—or hold a net worth of at least $1 million, excluding a primary residence, to be considered an “accredited investor.” The SEC expanded the definition in 2020 to include certain licensed financial professionals, but the core wealth thresholds have been the same for decades. The rules were originally designed to ensure investors could absorb potential losses, but critics argue they effectively reserve the highest-growth phase of private companies for wealthy individuals and institutional funds. As companies delay public listings, which Armstrong argues is becoming more common, everyday retail investors are gaining investment access only after valuations have already compounded through multiple private funding rounds.
WHAT TO WATCH FORA Senate floor vote on the CLARITY Act. The proposed legislation— which counts Coinbase among its more than 200 corporate backers—wouldn’t change the definition of accredited investors but could set a legislative precedent for how broadly Congress is willing to reshape retail access to financial markets.
FORBES VALUATIONArmstrong, a former Airbnb software engineer who cofounded Coinbase in 2012, has an estimated net worth of $8.2 billion Tuesday.
further readingForbesLet Middle-Class Investors Join the 'Accredited' ClubBy John Berlau
ForbesSpaceX Says Historic IPO Raised More Than $85 BillionBy Ty Roush
Brian Armstrong, Coinbase CEO, joins 'Squawk on the Street' to discuss the company's tokenized stocks, why it's interesting for global investors and much more.
Coinbase has launched an artificial intelligence-powered, Securities and Exchange Commission-registered investment adviser to its app.
The company is rolling out the new Coinbase Advisor to Coinbase One members in the United States, it said Tuesday (June 16).
“From helping you design complex tax-loss harvesting to turning breaking news into multi-asset trade recommendations, it handles the heavy analytical lifting so you can optimize your wealth-building strategies with ease,” Coinbase said.
Coinbase Advisor is one of several new features and services Coinbase announced Tuesday in a blog post about its latest system update.
The company will introduce tokenized stocks for its non-U.S. customers next month, and it will roll out options trading for crypto and stocks in the coming months, according to the post.
Coinbase added that users can now transfer their existing stock portfolios from other platforms directly to its platform, access equities on Coinbase Advanced with zero commission fees, and gain exposure to thematic equity indices via real world asset (RWA) perpetual futures.
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On the prediction markets front, the company introduced crypto binaries that let users trade time-boxed “up or down” markets on assets such as bitcoin, and combos that allows users to bundle multiple predictions into a single trade, across any category on Coinbase.
On Wednesday (June 17) Coinbase will enable users to access a New Launches tab in its app to trade Base or Solana tokens as soon as they become available onchain.
New financial services offerings include a Travel Portal for the Coinbase One Card that gives users 5% bitcoin back on travel bookings, the ability for users who aren’t approved for a traditional line of credit to secure a Coinbase One Card using USDC as collateral, the ability to borrow against staked Solana on Coinbase, and a new defensive framework called Transfer Protection that provides security controls over outgoing funds.
For businesses, the system update introduces a Coinbase Developer Platform that helps companies access Coinbase’s wallet infrastructure, payments capabilities, trading systems and stablecoin issuance.
“The future of finance won’t be split between a bank, a brokerage and a crypto wallet,” Coinbase said in the post. “It is unified, intelligent, onchain and on Coinbase.”
PYMNTS reported in May that Coinbase is carrying out a multiyear effort to diversify away from transaction-based income and create recurring revenue streams that are less vulnerable to the emotional swings of retail crypto traders.
I rate Skyworks Solutions a Buy with a $116 price target, reflecting 53% upside potential from current levels. My growth drivers are the premium Android win, which helps reduce the one-customer mobile concern; then the Broad Markets give SWKS a better mix, and Qorvo adds scale and synergy potential. My valuation uses $6.03 of FWD EPS and a 19.16x FWD non-GAAP P/E multiple, which sits between SWKS' historical 13.4x multiple and the broader peer level of about 24.92x.