Track market-moving stories before they get noisy

BELLEVUE, Wash.--(BUSINESS WIRE)--After decades of rigid one-size-fits-all wireless plans, today, T-Mobile (NASDAQ: TMUS) is mixing it up with T-Mix, a first-of-its-kind approach that gives customers more choice and flexibility across three T-Mix plans — Standard, More and Loaded — available in November. Built on the foundation of America's Best Network and T-Mobile's member perks, including T-Mobile Tuesdays which offered over $900 worth of freebies per customer last year, the all-new T-Mix pr.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

TMobile US (TMUS - Free Report) is a stock many investors are watching right now. TMUS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 20.2 right now. For comparison, its industry sports an average P/E of 25.52. TMUS's Forward P/E has been as high as 25.53 and as low as 18.71, with a median of 21.53, all within the past year.

Investors should also note that TMUS holds a PEG ratio of 1.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TMUS's industry currently sports an average PEG of 1.79. TMUS's PEG has been as high as 1.54 and as low as 0.64, with a median of 1.19, all within the past year.

Investors should also recognize that TMUS has a P/B ratio of 4.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TMUS's current P/B looks attractive when compared to its industry's average P/B of 7.09. Within the past 52 weeks, TMUS's P/B has been as high as 5.05 and as low as 3.66, with a median of 4.40.

Finally, investors will want to recognize that TMUS has a P/CF ratio of 10.87. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.64. TMUS's P/CF has been as high as 13.04 and as low as 10.10, with a median of 11.24, all within the past year.

These are only a few of the key metrics included in TMobile US's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TMUS looks like an impressive value stock at the moment.

Oracle just posted its strongest cloud growth in years, yet the stock sits near a 52-week low while Wall Street debates whether the debt-fueled AI buildout is a trap or a once-in-a-decade entry point.

Our 24/7 Wall St. price target for Oracle (NYSE:ORCL | ORCL Price Prediction) is $195.90. That implies 56.04% upside from $125.54. Our model rates the stock a buy with high confidence.

Metric
Value

Current Price
$125.54

Price Target from 24/7 Wall St.
$195.90

Upside/Downside
56.04%

Recommendation
BUY

Confidence Level
90%

Investors have been selling Oracle over concerns about its debt-funded AI buildout, but the business keeps growing faster. In our view, the market is focused on the pressure on the balance sheet and is giving too little credit to the earnings power behind it.

AI Debt Fears Pushed Oracle Toward Its 52-Week Low
Oracle fell 6.92% over the past week and 15.82% over the past month, which leaves it down 34.93% year to date. Shares trade far below the 52-week high of $283.40 and close to the $114.08 low. Barron’s argued this week that Oracle was caught in a broader AI debt selloff and that the drop could be a mistake.

Results in fiscal Q1 2027 were strong. Adjusted EPS came in at $1.92, ahead of the $1.74 estimate. Revenue of $19.34 billion rose 29.6%, and cloud infrastructure revenue grew 121% to $7.39 billion. Management raised full-year non-GAAP EPS guidance to $8.10.

Why Bulls See $290 Within Reach
Contracted revenue not yet recognized reached $664 billion. The company expects around half to convert into sales over the next 36 months. GPU usage ran at 97.9%, and GPUs that came up for renewal were re-signed or resold at a 20% premium. Oracle also closed more than $30 billion of AI contracts “without requiring additional capital from Oracle.”

Wall Street’s consensus target is $237.36, backed by 7 Strong Buy and 28 Buy ratings. If backlog conversion speeds up, our bull scenario reaches $290.19.

Negative Free Cash Flow Is the Risk to Watch
Free cash flow came in at -$5.40 billion as capital spending reached $28.5 billion. Interest expense rose 55% to $1.4 billion, and the completed $20 billion equity program diluted existing shareholders. Software license revenue fell 15%.

All of that spending has to be powered and cooled by someone, which is why we rounded up seven suppliers behind the AI data-center expansion in a free report.

On the other side, operating cash flow hit $23.10 billion, up 184%. Hilary Maxson said projects that have ramped up deliver “a free cash flow conversion ratio of something like 100% to post-tax EBITDA.” Even our bear case lands at $167.93.

Oracle Trades Cheaper Than Microsoft and Amazon
Azure competes directly with Oracle for AI and enterprise workloads, which is why Microsoft (NASDAQ:MSFT) belongs in this comparison. Microsoft trades at 25x forward earnings with 17.7% revenue growth, a higher multiple for slower growth than Oracle’s.

The largest rival in AI infrastructure, AWS, is run by Amazon (NASDAQ:AMZN) and now connects to Oracle through Oracle Interconnect for AWS. The stock trades at 24x forward earnings with 19.6% revenue growth.

Company
Forward P/E
Revenue Growth (YoY)

Oracle
18x
29.6%

Microsoft
25x
17.7%

Amazon
24x
19.6%

Oracle has the fastest growth of the three but the lowest multiple. Next to these peers, our 24/7 Wall St. price target looks reasonable and arguably conservative.

Oracle Price Prediction 2026-2030
Our 24/7 Wall St. price target of $195.90 carries a buy rating with 90% confidence. What tips the balance is the backlog, which turns today’s spending into contracted revenue.

The bull case strengthens if results on December 14 show cloud growth within the guided 65% to 71% range. The case weakens if financing costs rise faster than infrastructure profits. At these levels, the potential reward appears to outweigh the risk.

Looking further ahead, this is where the 24/7 Wall St. model projects Oracle could trade, assuming current growth trends hold.

Year
Price Target from 24/7 Wall St.

2026
$138.30

2027
$197.32

2028
$262.66

2029
$333.27

2030
$384.94

Oracle would need to keep converting its backlog on schedule for these projections to hold. How long AI demand lasts and how much the expansion costs to finance could move the stock well above or below these levels.

Contact [email protected] for any questions or corrections.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sony (SONY - Free Report) Headquartered in Tokyo, Japan, Sony Group Corporation designs, manufactures and sells several types of consumer and industrial electronic equipment. The company’s product roster comprises audio and video equipment, televisions, network services, game hardware and software, mobile phones and image sensors. Additionally, Sony is active in the production, acquisition and distribution of recorded music and the management and licensing of the words and music for songs.

SONY is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Consumer Discretionary stock. SONY has a Momentum Style Score of A, and shares are up 10.7% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.04 to $1.45 per share. SONY also boasts an average earnings surprise of +13.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SONY should be on investors' short list.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Snowflake Inc. (SNOW - Free Report) .

Snowflake currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 47 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.

Of the 47 recommendations that derive the current ABR, 37 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 78.7% and 8.5% of all recommendations.

Brokerage Recommendation Trends for SNOW

Check price target & stock forecast for Snowflake here>>>

While the ABR calls for buying Snowflake, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is SNOW a Good Investment?Looking at the earnings estimate revisions for Snowflake, the Zacks Consensus Estimate for the current year has increased 1.5% over the past month to $2.23.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Snowflake. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Snowflake may serve as a useful guide for investors.

LOS ANGELES, Oct. 26, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors of upcoming lead plaintiff deadlines in securities class action lawsuits filed on behalf of shareholders of Flotek Industries, Inc., Innventure, Inc., XTI Aerospace, Inc., and Hyliion Holdings Corp. Investors who wish to seek appointment as lead plaintiff must file a motion by the deadlines listed below.

If you lost money on these investments, contact The Law Offices of Frank R. Cruz about these class actions to learn about your legal rights, by calling 310-914-5007 or emailing [email protected].

Flotek Industries, Inc. (NYSE: FTK)

Class period: August 3, 2026 through August 17, 2026Lead plaintiff motion deadline: October 26, 2026Case: Bashir v. Flotek Industries, Inc., et al., filed in the U.S. District Court for the Southern District of New York
According to the Flotek Industries, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) there were credible reasons to doubt the experience, organization, and financial capacity of the consortium parties to PREPA's power generation project; and (ii) as a result, there was a risk that revenue from the PREPA contract would not be realized.

If you are a Flotek Industries, Inc. shareholder who suffered a loss, click here to participate.

Innventure, Inc. (NASDAQ: INV)

Class period: November 17, 2025 through August 13, 2026Lead plaintiff motion deadline: October 27, 2026Case: Labed v. Innventure, Inc., et al., filed in the U.S. District Court for the Southern District of New York
According to the Innventure, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) Accelsius’ alleged transformative deal with DarkNX was unlikely to come to fruition as no evidence of DarkNX constructing or facilitating a large scale AI data center existed; and (ii) as a result, the Company’s stated revenue and cash flow targets for Accelsius in 2026 were overstated.

If you are a Innventure, Inc. shareholder who suffered a loss, click here to participate.

XTI Aerospace, Inc. (NASDAQ: XTIA)

Class period: April 15, 2026 through August 17, 2026Lead plaintiff motion deadline: October 27, 2026Case: Noalan v. XTI Aerospace, Inc., et al., filed in the U.S. District Court for the Southern District of New York
According to the XTI Aerospace, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) senior executives had engaged in certain undisclosed activities; (ii) these activities required Board review; (iii) there was reason to doubt the effectiveness of the Company’s disclosure controls and procedures; and (iv) as a result, the Company would be unable to timely file its earnings reports.

If you are a XTI Aerospace, Inc. shareholder who suffered a loss, click here to participate.

Hyliion Holdings Corp. (NYSE: HYLN)

Class period: May 12, 2026 through June 23, 2026Lead plaintiff motion deadline: October 27, 2026Case: Olmeta v. Hyliion Holdings Corp., et al., filed in the U.S. District Court for the Western District of Texas
According to the Hyliion Holdings Corp. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) in order to cause rapid price appreciation in Hyliion stock, Defendants announced a deal with an entity that was very recently formed and does not appear to have any actual business operations; and (ii) the Individual Defendants timed the announcement and foregoing price appreciation to insider trade.

If you are a Hyliion Holdings Corp. shareholder who suffered a loss, click here to participate.

What should investors in these cases do now?

Investors need not take any action at this time to be class members in these cases. Investors may retain counsel of their choice or take no action and remain absent class members. No class has been certified yet in any of these cases.

For more information about these class actions or your rights, contact Frank R. Cruz of The Law Offices of Frank R. Cruz at 310-914-5007, by email at [email protected], or visit the firm's case page.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Contact
Frank R. Cruz
The Law Offices of Frank R. Cruz
Los Angeles, CA
Email: [email protected]
Telephone: 310-914-5007
www.frankcruzlaw.com

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Wall Street analysts forecast that Gilead Sciences (GILD - Free Report) will report quarterly earnings of $2.17 per share in its upcoming release, pointing to a year-over-year decline of 12.2%. It is anticipated that revenues will amount to $7.81 billion, exhibiting an increase of 0.6% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has undergone a downward revision of 1.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain Gilead metrics that are commonly tracked and forecasted by Wall Street analysts.

According to the collective judgment of analysts, 'Product Sales- HIV- Odefsey- Total' should come in at $202.57 million. The estimate suggests a change of -26.9% year over year.

Analysts expect 'Total product sales- Total' to come in at $7.75 billion. The estimate suggests a change of +5.6% year over year.

Based on the collective assessment of analysts, 'Revenues- Royalty contract and other revenues' should arrive at $62.02 million. The estimate indicates a year-over-year change of -85.4%.

Analysts' assessment points toward 'Product Sales- Liver Disease- Vemlidy- Total' reaching $252.48 million. The estimate points to a change of -9.8% from the year-ago quarter.

The average prediction of analysts places 'Product Sales- HIV- Genvoya- U.S.' at $249.96 million. The estimate suggests a change of -22.6% year over year.

It is projected by analysts that the 'Total product sales- U.S.' will reach $5.74 billion. The estimate indicates a change of +8.9% from the prior-year quarter.

The consensus estimate for 'Product Sales- HIV- Odefsey- U.S.' stands at $162.41 million. The estimate indicates a change of -21.2% from the prior-year quarter.

The consensus among analysts is that 'Product Sales- Liver Disease- Vemlidy- U.S.' will reach $118.92 million. The estimate indicates a change of -12.6% from the prior-year quarter.

Analysts predict that the 'Product Sales- Oncology- Cell Therapy- Yescarta- U.S.' will reach $103.23 million. The estimate suggests a change of -16.1% year over year.

The combined assessment of analysts suggests that 'Product Sales- HIV- Biktarvy- U.S.' will likely reach $3.12 billion. The estimate points to a change of +6.3% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Product Sales- HIV- Symtuza-Revenue share- U.S.' of $97.34 million. The estimate indicates a year-over-year change of +2.5%.

Analysts forecast 'Product Sales- Veklury- U.S.' to reach $34.23 million. The estimate suggests a change of -75.6% year over year.

View all Key Company Metrics for Gilead here>>>

Over the past month, Gilead shares have recorded returns of +3.4% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #3 (Hold), GILD will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Four familiar dividend names have quietly slipped below every valuation benchmark they set over the past decade, yet each still funds its payout from earnings or cash flow. The question is whether the reasons investors abandoned them are permanent or…

Income investors usually pay a premium for reliable dividends. Right now, four well-known payers trade at a discount to their own valuation history, and each still covers its dividend from earnings or cash flow. T. Rowe Price (NASDAQ:TROW | TROW Price Prediction), United Parcel Service (NYSE:UPS), Verizon Communications (NYSE:VZ), and Realty Income (NYSE:O) all screen cheaper than their 10-year averages. The deepest discount belongs to T. Rowe Price, which trades at about 10 times trailing adjusted earnings, a lower multiple than at any year-end in the past decade.

Valuation Discounts at a Glance

Stock
Forward Yield
Measure
Current
10-Year Average

T. Rowe Price
4.95%
Adjusted P/E
10
15

UPS
6.45%
Adjusted P/E
15
17

Verizon
6.62%
Adjusted P/E
9
11

Realty Income
5.71%
Dividend yield
5.71%
4.70%

The 10-year averages use each year-end share price from 2016 through 2025 divided by that year’s adjusted EPS. For Realty Income, whose GAAP earnings are distorted by real estate depreciation, the comparison uses forward dividend yield at each year-end, where a higher yield means a cheaper stock.

T. Rowe Price: A Decade-Low Multiple Backed by a Fortress Balance Sheet
T. Rowe Price pays $1.30 per share quarterly, or $5.20 annualized, for a 4.95% yield at $105.

Dividend safety: That payout takes about 50% of trailing adjusted EPS of $10.34, leaving room for buybacks too. CFO Jen Dardis said on the July call that year-to-date repurchases exceeded $497 million and that the firm holds $4.4 billion of cash and discretionary investments. The quarterly dividend has increased annually throughout the record, from $0.70 in 2018 to $1.30 in 2026.

Why it is out of favor: Clients pulled a net $6.5 billion in the second quarter, and the effective fee rate fell to 38.1 bps. Shares are down 36.39% over five years, and analysts count 9 holds, 1 sell, and 3 strong sells with zero buy ratings. The year-end P/E ran from 11 to 19 over the decade, and today’s multiple stands below that entire range.

Bull case: Assets under management hit a record $1.89T, and the ETF lineup pulled in $4.4 billion of Q2 net inflows. CEO Rob Sharps said, “We expect 2026 to be a record year for gross flows.”

Risk: Sharps also warned, “We expect net flows in the second half of the year to be meaningfully more challenging than the first half.”

United Parcel Service: An Ultra-High Yield Priced for a Recovery Nobody Trusts Yet
UPS pays $1.64 per share quarterly, or $6.56 a year, for an ultra-high 6.45% yield at $101.75.

Dividend safety: This is the thinnest buffer in the group. The dividend equals about 94% of trailing adjusted EPS of $6.95 and roughly 91% of the company’s 2026 EPS target of about $7.22. Management plans about $5.4 billion of 2026 dividends against expected free cash flow of roughly $5.5 billion. UPS ended Q2 with $4.7 billion in cash and no outstanding commercial paper. The quarterly payout rose from $0.17 in 2000 to $1.64.

Why it is out of favor: The Amazon glide-down cut volumes by 3.6%, and adjusted EPS fell from $12.95 in 2022 to $7.16 in 2025. Shares are down 36.78% over five years. The trailing multiple of 15 compares with a decade range of 13 to 20, and the stock trades near 14 times this year’s EPS target.

Bull case: U.S. Domestic revenue per piece rose 9.3%, and that segment’s operating margin reached 8%. Chief executive Carol Tomé said on the July call, “We now have a leaner, more automated, more agile network that will deliver operating leverage as volume grows.”

Risk: The quarterly rate has held at $1.64 per payment in 2025 and 2026, so any stumble in the turnaround leaves little margin for error.

Verizon: Record Cash Flow at a Single-Digit Multiple
Verizon pays $0.7075 per share quarterly, or $2.83 annualized, for an ultra-high 6.62% yield at $42.72.

Dividend safety: The payout equals about 58% of trailing adjusted EPS of $4.88. In cash terms, first-half dividends of $5.9 billion used about 58% of $10.2 billion in free cash flow. Q2 free cash flow alone rose 27.1% to $6.43B. The quarterly dividend has increased every year, from $0.50 in 2012 to today’s rate.

Why it is out of favor: Growth is slow, and third-quarter revenue reported this morning fell short of Wall Street estimates, according to StockStory. Shares were down 4.34% in early trading. At 9 times trailing adjusted earnings, Verizon stands below its 10-year average of 11, near the bottom of a decade range of 8 to 14.

Bull case: Q2 adjusted EBITDA margin hit 40.1%, postpaid phone net additions at Verizon reached 184K, and it paid off substantially all of Frontier’s debt 6 months ahead of schedule. CEO Dan Schulman said in July, “We’re growing our dividend, and we are paying down our debt.”

Risk: Unsecured debt totals $136.5B, with net unsecured debt at 2.5x EBITDA, which limits flexibility if cash flow softens.

Realty Income: Monthly Checks at One of Its Richest Yields in a Decade
Realty Income pays $0.2715 monthly, or $3.258 annualized, for a high 5.71% yield at $57.03.

Dividend safety: REITs pay dividends from AFFO, and the dividend uses about 73% of 2026 AFFO guidance of $4.44 to $4.45 per share. Occupancy is at 98.8%, Fitch rates the company ‘A’, and pro forma liquidity exceeded $5.7 billion. The Q2 increase was its 115th consecutive quarterly dividend increase.

Why it is out of favor: Rate-sensitive REITs have lagged, and shares sit below the $71.59 close at the end of 2021 and the $61.69 200-day average. A GAAP P/E of 41 looks expensive, but depreciation inflates it. On yield, today’s 5.71% beats the 10-year average of 4.70% and stands near the top of a range running from 3.71% to 5.92%.

Bull case: AFFO per share grew 3.8% to $1.09 in Q2, new deals closed at a 7.3% initial cash yield, and a $6B JV in hyperscale data centers adds a growth driver.

Risk: The net debt-to-adjusted EBITDA ratio, on a pro forma annualized basis, rose to 5.4x from 5.2x as the company leans on a $10.0B investment plan.

Four Discounted Payouts Worth a Closer Look
These four names all trade below their own decade-long valuation averages for a specific reason: fund outflows, the Amazon reset, slow telecom growth, or rate pressure on REITs. T. Rowe Price and Verizon pair that discount with payout ratios near 50% to 58%, Realty Income supports its monthly check with AFFO, and UPS offers the biggest turnaround return with the lowest coverage. For income investors, the discount gets a higher starting yield on dividends that are still funded.

Contact [email protected] for any questions or corrections.

Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) reports third-quarter results Monday, November 2, after the bell. Michael Burry is still short the stock, and shares trade at roughly 122 times 2026 earnings.

The upcoming report from Bristol Myers Squibb (BMY - Free Report) is expected to reveal quarterly earnings of $1.28 per share, indicating a decline of 21.5% compared to the year-ago period. Analysts forecast revenues of $12.56 billion, representing an increase of 2.7% year over year.

The current level reflects a downward revision of 0.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Bristol Myers metrics that are commonly tracked and projected by analysts on Wall Street.

The average prediction of analysts places 'Net Sales- Zeposia' at $165.48 million. The estimate indicates a year-over-year change of +2.8%.

The consensus among analysts is that 'Net Sales- Orencia' will reach $981.41 million. The estimate indicates a change of +1.8% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Sales- Eliquis' will likely reach $4.59 billion. The estimate indicates a year-over-year change of +22.6%.

Analysts expect 'Net Sales- Yervoy' to come in at $755.79 million. The estimate suggests a change of +2.3% year over year.

Analysts forecast 'Net Sales- Abraxane- U.S.' to reach $9.24 million. The estimate indicates a year-over-year change of -61.5%.

Analysts predict that the 'Net Sales- Opdivo- U.S.' will reach $1.29 billion. The estimate indicates a year-over-year change of -11.2%.

Analysts' assessment points toward 'Net Sales- Pomalyst/Imnovid- U.S.' reaching $73.30 million. The estimate indicates a change of -87.7% from the prior-year quarter.

Based on the collective assessment of analysts, 'Net Sales- Pomalyst/Imnovid- International' should arrive at $44.90 million. The estimate indicates a year-over-year change of -43.2%.

The collective assessment of analysts points to an estimated 'Net Sales- Revlimid- U.S.' of $164.08 million. The estimate indicates a year-over-year change of -66.2%.

According to the collective judgment of analysts, 'Net Sales- Revlimid- International' should come in at $53.05 million. The estimate points to a change of -40.4% from the year-ago quarter.

The consensus estimate for 'Net Sales- Reblozyl- U.S.' stands at $592.45 million. The estimate indicates a change of +19.9% from the prior-year quarter.

It is projected by analysts that the 'Net Sales- Reblozyl- International' will reach $146.61 million. The estimate points to a change of +21.2% from the year-ago quarter.

View all Key Company Metrics for Bristol Myers here>>>

Over the past month, Bristol Myers shares have recorded returns of -2.2% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #3 (Hold), BMY will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Analysts on Wall Street project that Pinterest (PINS - Free Report) will announce quarterly earnings of $0.50 per share in its forthcoming report, representing an increase of 31.6% year over year. Revenues are projected to reach $1.2 billion, increasing 14.5% from the same quarter last year.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Pinterest metrics that Wall Street analysts commonly model and monitor.

Based on the collective assessment of analysts, 'Geographic Revenue- Europe' should arrive at $215.64 million. The estimate indicates a year-over-year change of +11.7%.

Analysts expect 'Geographic Revenue- Rest of World' to come in at $108.15 million. The estimate indicates a change of +54.5% from the prior-year quarter.

Analysts predict that the 'Geographic Revenue- U.S. and Canada' will reach $875.97 million. The estimate indicates a change of +11.5% from the prior-year quarter.

The combined assessment of analysts suggests that 'Monthly Active Users - Global' will likely reach 653 . Compared to the present estimate, the company reported 600 in the same quarter last year.

The average prediction of analysts places 'Monthly Active Users - Rest of World' at 385 . The estimate compares to the year-ago value of 347 .

According to the collective judgment of analysts, 'Monthly Active Users - U.S. and Canada' should come in at 107 . The estimate compares to the year-ago value of 103 .

The consensus among analysts is that 'Monthly Active Users - Europe' will reach 160 . Compared to the present estimate, the company reported 150 in the same quarter last year.

The collective assessment of analysts points to an estimated 'ARPU - U.S. and Canada' of $8.36 . The estimate compares to the year-ago value of $7.64 .

View all Key Company Metrics for Pinterest here>>>

Over the past month, shares of Pinterest have returned +18.1% versus the Zacks S&P 500 composite's -1.2% change. Currently, PINS carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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

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

Micron stock was gaining as it explained why it's not worried about CXMT's 4F square memory-chip design.

AMC Entertainment (AMC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this movie theater operator have returned -1.4%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Leisure and Recreation Services industry, which AMC Entertainment falls in, has gained 9.6%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

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

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, AMC Entertainment is expected to post earnings of $0.10 per share, indicating a change of +147.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -73.3% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of -$0.08 points to a change of +91.7% from the prior year. Over the last 30 days, this estimate has changed +71.3%.

For the next fiscal year, the consensus earnings estimate of $0.06 indicates a change of +175% from what AMC Entertainment is expected to report a year ago. Over the past month, the estimate has changed -278.6%.

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 #2 (Buy) for AMC Entertainment.

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 AMC Entertainment, the consensus sales estimate of $1.64 billion for the current quarter points to a year-over-year change of +26.1%. The $5.76 billion and $5.82 billion estimates for the current and next fiscal years indicate changes of +18.8% and +1%, respectively.

Last Reported Results and Surprise HistoryAMC Entertainment reported revenues of $1.6 billion in the last reported quarter, representing a year-over-year change of +14.2%. EPS of $0.14 for the same period compares with $0 a year ago.

Compared to the Zacks Consensus Estimate of $1.51 billion, the reported revenues represent a surprise of +5.78%. The EPS surprise was +1300%.

Over the last four quarters, AMC Entertainment surpassed consensus EPS estimates two times. 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.

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.

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

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AMC Entertainment. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

 | Source: Deep Sea Minerals Corp.

Vancouver, BC, Oct. 26, 2026 (GLOBE NEWSWIRE) -- Deep Sea Minerals Corp. (CSE: SEAS) (OTCQB: DSEAF) (FSE: X450) (“Deep Sea Minerals” or the “Company”), a subsea mineral exploration and development company focused on advancing critical mineral opportunities from the deep ocean, today announced the filing of a preliminary prospectus supplement (the “Supplement”) to its short form base shelf prospectus dated July 28, 2026 (the “Base Prospectus”), in connection with a proposed public offering in the United States and in certain other jurisdictions outside of Canada of its common shares, represented by American depositary  shares (“ADSs”) (each ADS offered is expected to represent 12 common shares of the Company) and warrants (the “ADS Warrants”) exercisable for ADSs (the “Offering”) in connection with the Company’s proposed listing of the ADSs on a U.S. national securities exchange.

Maxim Group LLC is acting as sole book-running manager for the Offering.

The Supplement was filed with the securities regulatory authorities in each of the provinces and territories of Canada, except Nova Scotia. The Supplement and accompanying Base Prospectus were also filed with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10, as it may be amended from time to time (the “Registration Statement”), in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.

The Company intends to use the net proceeds of the Offering to advance the Company’s applications for subsea mineral exploration rights in the Clarion-Clipperton Fracture Zone under the Deep Seabed Hard Mineral Resources Act of 1980 (United States)  regime and in the Cook Islands Exclusive Economic Zones, pre-offshore technical, environmental and contractor readiness workstreams, U.S. listing and public company compliance costs, and general working capital. The net proceeds of the Offering will not be sufficient to fund any offshore work program.

The Company also expects to grant to the underwriter a 45-day option to purchase up to an additional 15% of the number of ADSs and/or ADS Warrants offered in the Offering. The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The closing of the Offering will be subject to customary closing conditions, including any required approvals from the Canadian Securities Exchange and such U.S. national securities exchange.

The Offering is being made pursuant to an effective shelf registration statement on Form F-10 (File No. 333-297854) previously filed with the SEC, which became effective on July 31, 2026. Deep Sea Minerals may offer and sell securities in both the United States and other jurisdictions outside of Canada. No securities will be offered or sold to Canadian purchasers under the Offering. The Supplement and the accompanying Base Prospectus contain important detailed information about the Offering. The Base Prospectus is and the Supplement (when filed) will be available for free on the SEC’s website at www.sec.gov and on SEDAR+ at www.sedarplus.ca. Copies of the Supplement (when filed) and accompanying Base Prospectus, and any amendment to the documents may also be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department, or by telephone at (212) 895-3745 or by email at [email protected]. Prospective investors should read the Supplement (when filed) and accompanying Base Prospectus and the other documents the Company has filed before making an investment decision. The final terms of the Offering will be disclosed in a final prospectus supplement to be filed with the SEC and on SEDAR+.

No regulatory authority has either approved or disapproved the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.

ABOUT DEEP SEA MINERALS CORP.

Deep Sea Minerals Corp. is a seabed mineral exploration and development company focused on evaluating opportunities to support the future supply of critical minerals through the acquisition, exploration, and development of deep-sea mineral assets.

The Company’s strategy is centered on identifying jurisdictions and geological settings with potential exposure to polymetallic nodule systems, which are recognized for containing combinations of metals that may be relevant to defense, industrial manufacturing, clean energy infrastructure, advanced electronics, and artificial intelligence-related supply chains. These seabed resources represent a largely undeveloped component of the global mineral supply base and are the subject of increasing policy, scientific, and regulatory attention worldwide.

As part of this process, the Company has commenced early-stage engagement with selected governments and regulatory bodies in the Pacific Ocean region to assess potential pathways for future exploration initiatives, subject to applicable international, national, and environmental frameworks.

For further information, please see the Company’s website: https://www.deepseamineralscorp.com

NOTICE ON FORWARD-LOOKING STATEMENTS

 This press release includes forward-looking information or forward-looking statements within the meaning of applicable securities laws regarding Deep Sea Minerals and its business, which may include, but are not limited to, statements regarding the Offering, the intended listing of the ADSs on a U.S. national securities exchange, the granting of the over-allotment option and the anticipated use of proceeds from the Offering. Completion of the Offering and the intended listing of the ADSs on a U.S. national securities exchange are subject to numerous factors, many of which are beyond Deep Sea Minerals’ control, including but not limited to, market conditions, the failure of the parties to satisfy certain closing conditions, the failure of the Company to satisfy certain listing requirements and other important factors disclosed previously and from time to time in Deep Sea Minerals’ filings with the securities regulatory authorities in each of the provinces and territories of Canada, except Nova Scotia and the SEC. Actual future events may differ from the anticipated events expressed in such forward-looking statements. Although Deep Sea Minerals believes that the expectations represented by forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These forward-looking statements speak only as of the date made, and Deep Sea Minerals is under no obligation and disavows any intention to update publicly or revise such statements as a result of any new information, future event, circumstances or otherwise, unless required by applicable securities laws.

For further information, please contact:

James A. Deckelman
Chief Executive Officer
Phone: 1-281-467-1279
Email: [email protected] 

Regeneron reports earnings on Oct. 30, and a quiet accounting change tied to its Sanofi partnership may finally reveal what Dupixent is actually worth to the bottom line. Most of Wall Street has barely noticed.

Regeneron (NASDAQ:REGN | REGN Price Prediction) reports third-quarter results on Oct. 30. Regeneron books its full share of Dupixent profits from Sanofi (NASDAQ:SNY) for the first time this quarter. I think that change matters more than the market is giving it credit for.

Dupixent’s Billion-Dollar Profit Drag Is Gone
Last quarter, Regeneron posted non-GAAP EPS of $14.29 against an $8.00 consensus. Revenue rose 16.73% to $4.29 billion, and global Dupixent sales reached $6.00 billion, up 38%.

On the conference call, management said Regeneron has fully returned the Sanofi development balance, which stood at about $3.1 billion when the agreement was amended in 2022. Repayments cut reported collaboration revenue by roughly $930 million in 2025 and $530 million in the first half of this year. Management expects collaboration revenue to step up beginning in the third quarter.

Since then, the two partners announced an expanded alliance worth up to $8 billion. The deal brings four long-acting antibodies and settles prior litigation between the companies. Shares trade near $815, up 42.28% over the past year.

Analysts Already Expect a Sharp Step-Up

Metric
Consensus
Prior-Year Actual
Implied YoY Growth

Q3 2026 Normalized EPS
$16.198
$11.83
36.9%

Q3 2026 Revenue
$4.56 billion
$3.75 billion
21.5%

FY 2026 EPS
$59.1298
$44.31
33.4%

FY 2026 Revenue
$17.60 billion
$14.34 billion
22.7%

The quarterly EPS estimate stood at $13.2058 90 days ago, so analysts have partly priced in the Sanofi change.

Collaboration Margins and Eylea HD Will Set the Tone
My first focus is the size of the collaboration step-up. Management expects second-half Dupixent growth to remain strong but moderate against harder comparisons. That means the jump in Regeneron’s share needs to come from the cleaner profit split, and the quarter will reveal the extent of it.

Eylea HD is the second test. U.S. sales hit $596 million last quarter, up 52%, and passed legacy Eylea for the first time. Management guided to sequential HD demand growth in the low to mid-teens, while legacy Eylea demand falls by a similar rate. You should look for any update on the prefilled syringe, which management hopes to get approved before the end of the year.

Margins matter too. Limerick production returned to normal by the end of the second quarter, and Regeneron raised GAAP gross margin guidance to 78%-79%. Launch plans for cemdisiran also deserve attention ahead of its November 2026 FDA target action date. Drug-pricing policy remains a risk that could weigh on top-selling biologics.

First Clean Look at Dupixent’s True Earnings Power
For years, repayment of the development balance hid how much Dupixent actually adds to Regeneron’s earnings. This quarter gives investors the first clear read on that number. If Eylea HD continues outpacing the decline in legacy Eylea, Regeneron enters 2027 with its growth engine running at full strength. That is the setup I’ll be measuring against the upcoming results.

Contact [email protected] for any questions or corrections.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about TSMC (TSM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

TSMC currently has an average brokerage recommendation (ABR) of 1.21, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.21 approximates between Strong Buy and Buy.

Of the 19 recommendations that derive the current ABR, 16 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 84.2% and 10.5% of all recommendations.

Brokerage Recommendation Trends for TSM

Check price target & stock forecast for TSMC here>>>

While the ABR calls for buying TSMC, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is TSM Worth Investing In?Looking at the earnings estimate revisions for TSMC, the Zacks Consensus Estimate for the current year has increased 3.1% over the past month to $17.07.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for TSMC. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for TSMC may serve as a useful guide for investors.

Powered by whole-genome sequencing and MAESTRO* technology, the next-generation Oncodetect test takes a distinct approach to MRD, tracking up to 5,000 patient-specific variants with a limit of detection below one part per million under high-end inputs 1, 2, 3The next-generation Oncodetect test builds on more than 20 years of trusted leadership in using genomic information to personalize cancer care Modeling estimates more than 3 million U.S. patients with solid tumors could potentially benefit from MRD testing†, /PRNewswire/ -- For many people with cancer, completing treatment can bring a new uncertainty: Is my cancer really gone?

Even after treatment, small amounts of cancer may remain in the body at levels that can be difficult to detect. Molecular residual disease (MRD) testing looks for traces of circulating tumor DNA (ctDNA) in the blood, providing additional information that can help physicians understand recurrence risk, monitor treatment response, and inform decisions about what comes next.4,5

To help address this need, Abbott (NYSE: ABT) today announced the commercial availability of its next-generation Oncodetect® MRD test, a personalized, tumor-informed, whole-genome sequencing test designed to provide molecular insights during and after cancer treatment.1,2 

For more than 20 years, the Oncotype DX Breast Recurrence Score® test has helped physicians use genomic information to personalize breast cancer treatment and is recognized as a standard of care in early-stage breast cancer.6 The next-generation Oncodetect test builds on that foundation, expanding Abbott's ability to provide molecular insights across the cancer care continuum. Abbott's broad cancer diagnostics portfolio spans cancer screening, hereditary cancer testing, genomic profiling, recurrence risk assessment, and MRD testing.

The personalized test uses a sample of each patient's tumor to identify its unique DNA markers, then looks for those same signals in the blood. At the heart of the next-generation Oncodetect test is MAESTRO, a technology developed at the Gerstner Center for Cancer Diagnostics at the Broad Institute of MIT and Harvard and enhanced by Abbott. Combined with whole-genome sequencing, this approach expands variant discovery from up to 200 variants in the first-generation test up to as many as 5,000 patient-specific variants.1,5 MAESTRO technology enriches tumor DNA from blood up to 1,000-fold before sequencing, making cancer signals easier to detect.1,2 Together, these advances achieve a 30-fold improvement in limit of detection to below one part per million.‡,3,7,8 This ultrasensitive performance is designed to identify residual disease when ctDNA levels are especially low, including in early-stage disease and post-treatment settings.9,10

Importantly, MAESTRO enables cost-efficient sequencing, allowing Abbott to offer the whole-genome Oncodetect test to all new patients from day one, rather than reserving the technology for select cases.

"For many people affected by cancer, finishing treatment does not mean the uncertainty ends," said Maimah Karmo, a triple-negative breast cancer survivor and president of the Tigerlily Foundation, a national women's health and oncology patient advocacy organization. "Waiting for the next scan and wondering whether cancer may return can take an emotional toll. New tools that give care teams more information about recurrence risk can support more meaningful conversations about what comes next."

Designed to detect when disease is hardest to find

MRD tests differ in how they identify and track tumor-specific DNA. The next-generation Oncodetect test takes a distinct approach, combining broad whole-genome variant tracking with MAESTRO technology that enriches tumor DNA from blood to create many opportunities to detect ctDNA when very little is present.

Broad variant tracking: Whole-genome sequencing tracks up to 5,000 patient-specific variants, expanding opportunities to detect residual disease at critical clinical decision points.1,2Tumor DNA enrichment: MAESTRO enriches tumor DNA detection up to ~1,000-fold 1,2Ultrasensitive detection: A limit of detection below one part per million‡, while maintaining >99% analytical specificity.3,7,8 This ultrasensitive performance is designed to identify residual disease when ctDNA levels are especially low, including in early-stage cancers, low-shedding cancers such as prostate, lung, kidney, and HR+ breast, and post-treatment settings.9-11

Building the evidence behind next-generation MRD

Clinical studies are evaluating the performance of the next-generation Oncodetect test across multiple solid tumors. In patients with locally advanced esophageal cancer, longitudinal testing detected ctDNA before recurrence in all 14 patients who experienced recurrence, achieving 100% sensitivity.12 In the PARTNER triple-negative breast cancer study, the next-generation test identified 90% of patients who later experienced distant recurrence within five years from a single post-surgery blood draw, a three-fold improvement over the first-generation test.13

New Beta-CORRECT data presented at the European Society of Medical Oncology (ESMO) congress showed a 30% absolute improvement in sensitivity for recurrence within two years with the next-generation Oncodetect test, compared with the first-generation test, at a single post-surgical time point in patients with stage II–IV colorectal cancer.14

"We've spent decades getting better at treating cancer once we find it. The next chapter is about understanding what may be happening at the molecular level during and after treatment," said Dr. Rick Baehner, divisional vice president, chief medical officer, precision oncology, Abbott's cancer diagnostics business. "MRD represents an important evolution in precision oncology, helping move cancer care beyond waiting for signs of recurrence toward more informed decisions throughout a patient's care. Our next-generation Oncodetect test reflects that evolution, bringing together whole-genome sequencing and MAESTRO technology to help detect residual disease when the molecular signal is extremely low."

Advancing MRD in cancer care

Abbott's precision oncology tests are fully integrated into leading electronic health record systems, making it easier for physicians to order tests and access results within their existing clinical workflows.

Abbott continues to build clinical evidence for MRD testing through more than 20 ongoing studies evaluating the next-generation Oncodetect test across tumor types, academic collaborations, and real-world research. The company is also working to broaden patient access through payor coverage and international expansion.

Frequently asked questions

Who is MRD testing for and how does it work?
The Oncodetect test is available for patients with solid tumors and must be ordered by a healthcare provider. The personalized, tumor-informed test uses a sample of the patient's tumor, typically from a patient's biopsy or surgery, to identify DNA changes unique to their cancer to create a molecular "fingerprint." A blood sample is then collected and tested for those same tumor-specific signals, with additional blood draws over time providing a molecular view of how disease may be changing.

What is the next-generation Oncodetect test?
The next-generation Oncodetect test is a tumor-informed molecular residual disease (MRD) blood test designed to detect extremely low levels of circulating tumor DNA (ctDNA) during and after cancer treatment. Powered by whole-genome sequencing and MAESTRO technology, the test has a low limit of detection below one part per million,‡ while maintaining >99% analytical specificity. 1-3,8

How does the next-generation Oncodetect test improve on the first-generation Oncodetect test?
The next-generation Oncodetect test moves from whole-exome to whole-genome sequencing, significantly expanding the number of tumor-specific signals it can track and improving its ability to detect extremely low levels of ctDNA. Key advancements include:

More opportunities to detect residual disease: Tracks up to 5,000 patient-specific variants, compared with up to 200 with the first-generation test.1,5Greater sensitivity: A low limit of detection below one part per million‡, a 30-fold improvement over the first-generation test.3,7,8Deeper detection: MAESTRO technology enriches tumor signals up to ~1,000-fold, helping identify ctDNA when extremely low amounts are present.1Why does detecting ctDNA at low levels matter?
Circulating tumor DNA (ctDNA) is genomic material shed by tumors into the bloodstream. ctDNA positivity in patients who have received treatment is strongly prognostic of cancer recurrence, even at very low levels.13 Detecting ctDNA at low levels can help identify patients at higher risk of recurrence and provide information to support treatment and surveillance decisions.5

About the Oncodetect® test 
The next-generation Oncodetect test is a whole-genome sequencing-based tumor-informed molecular residual disease (MRD) test designed to provide a personalized approach to detecting and monitoring residual cancer in patients with solid tumors. The test analyzes circulating tumor DNA (ctDNA) shed into the bloodstream by tumors, offering insights into changes in ctDNA levels over time. This quantitative assessment of ctDNA (measured as MTM/mL) helps healthcare providers better understand a patient's MRD status and make informed treatment decisions.

The Oncodetect® test was developed, and its performance characteristics determined by Genomic Health, Inc. Performance characteristics may not apply in tumor types not included in this test's clinical validation. The test has not been cleared or approved by the US Food and Drug Administration. The test is performed at Genomic Health Inc. The Genomic Health Inc. lab performing this test is certified under CLIA regulations and qualified to perform high-complexity clinical laboratory testing.

About Abbott
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.

Connect with us at abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.

 *MAESTRO = minor allele enriched sequencing through recognition oligonucleotides
MAESTRO was developed by researchers at the Broad Institute of MIT and Harvard. Abbott enhanced the technology for use in the next-generation Oncodetect test.
† Internal estimate for addressable patient populations based on solid tumors amenable to MRD testing.
‡ Under high-end inputs

Tsvetanova B, et al. Association for Molecular Pathology 2025 Annual Meeting Abstracts. J Mol Diagn. 2025;27 Suppl:S113.Gydush G, Nguyen E, Bae JH, et al. Massively parallel enrichment of low-frequency alleles enables duplex sequencing at low depth. Nat Biomed Eng. 2022;6:257–266. doi:10.1038/s41551-022-00855-9.Abbott Cancer Diagnostics. LoD and Precision Results from MRD v2 AV. Internal presentation. August 3, 2026.Kotani, D., Oki, E., Nakamura, Y. et al. Molecular residual disease and efficacy of adjuvant chemotherapy in patients with colorectal cancer. Nat Med 29, 127-134 (2023). https://doi.org/10.1038/s41591-022-02115-4Diergaarde B, Young G, Hall DW, et al. Circulating Tumor DNA as a Marker of Recurrence Risk in Stage III Colorectal Cancer: The α-CORRECT Study. J Surg Oncol. 2025;132(1):175-186. doi:10.1002/jso.27989Exact Sciences. Oncotype DX Breast Recurrence Score® Test Surpasses 2 Million Patients Worldwide. February 3, 2026.LoBello J, et al. Poster 2025. Exact Sciences Corporation; Madison, WI. Abbott Cancer Diagnostics. Oncodetect v2 Analytical Specificity. Internal presentation. August 25, 2026.Boukouris, A.E., Michaelidou, K., Joosse, S.A. et al. A comprehensive overview of minimal residual disease in the management of early-stage and locally advanced non-small cell lung cancer. npj Precis. Onc. 9, 178 (2025). https://doi.org/10.1038/s41698-025-00984-9Hashimoto T, Nakamura Y, Oki E, et al. Bridging horizons beyond CIRCULATE-Japan: a new paradigm in molecular residual disease detection via whole genome sequencing-based circulating tumor DNA assay. Int J Clin Oncol. 2024;29(5):495-511. doi:10.1007/s10147-024-02493-4Bettegowda C, Sausen M, Lear y RJ, et al. Detection of circulating tumor DNA in early- and late-stage human malignancies. Sci Transl Med. 2014;6(224):224ra24.Rhoades J, Patel A, Xiong K, Blewett T, Li R, Walsh L, Crnjac A, Ratty JH, Limbo O, Hannigan A, Remland J, Brais L, Jain P, Sridhar S, Gilligan K, Carnes M, Shin KY, Catalano P, Wiener D, Papke DJ Jr, Ramesh A, Fu Y, Garces J, Mazloom A, Costa GL, Hu J, Makrigiorgos GM, Culver BP, Adalsteinsson VA, Enzinger P, Mamon H. Ultrasensitive circulating tumor DNA analysis improves detection of molecular residual disease in locally advanced esophageal cancer. Clin Cancer Res. 2026. In press.Dooley A, et al. Evaluation of whole-exome and whole-genome sequencing tumor-informed circulating tumor DNA MRD assays in patients with early triple-negative breast cancer (TNBC) receiving neoadjuvant chemotherapy (NAC) with or without olaparib: A prospective sub-study of the PARTNER trial. Poster presented at: American Society of Clinical Oncology (ASCO) Annual Meeting; May 29–June 2, 2026; Chicago, IL. J Clin Oncol. 2026;44(16_suppl):570. DOI:10.1200/JCO.2026.44.16_suppl.570.Hashimoto, T. et al. Validation of the ultrasensitive tumor-informed WGS MAESTRO MRD assay in β-CORRECT. Poster 4426P presented at ESMO 2026; October 23-27, 2026; Madrid, Spain.
SOURCE Abbott

Key Takeaways Eli Lilly's Mounjaro and Zepbound drive strong growth, with combined first-half 2026 sales of $27.6 billion.Lilly's Foundayo launch & retatrutide pipeline strengthen growth prospects beyond existing obesity treatments.Merck faces Keytruda patent risks, slowing Gardasil sales and declining earnings estimates.
Eli Lilly (LLY - Free Report) and Merck (MRK - Free Report) are leading global pharmaceutical companies with blockbuster drug portfolios and promising pipelines. Both have a strong presence in oncology, immunology and neuroscience.

Lilly has established a leadership position in cardiometabolic health, with its GLP-1 drugs Mounjaro and Zepbound contributing around 65% of total revenues. Merck, meanwhile, relies heavily on oncology, with its blockbuster cancer drug Keytruda accounting for around 55% of pharmaceutical sales.

Which stock offers a more attractive investment opportunity today? A comparison of their fundamentals, growth prospects and key challenges can help investors assess their relative appeal.

The Case for Lilly StockLilly has seen extraordinary momentum in its cardiometabolic franchise. Its blockbuster drugs, Mounjaro for type II diabetes and Zepbound for obesity, have become some of the fastest-growing medicines in pharmaceutical history, gaining from enormous global demand for GLP-1 therapies. These therapies have become key top-line drivers for Lilly, with demand rising rapidly. In the first half of 2026, the drugs generated combined sales of $27.6 billion.

Lilly’s newly launched once-daily oral GLP-1 pill, Foundayo (orforglipron), for treating obesity could be a commercial game-changer for Lilly. Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and rival Novo Nordisk’s (NVO - Free Report) Wegovy. Foundayo's launch uptake has been encouraging as Lilly expands physician engagement and direct-to-consumer promotion in the United States.

To maintain leadership in the GLP-1 market, Lilly is developing several next-generation, more powerful and more convenient GLP-1–based treatments, including oral options and multi-acting candidates. Retatrutide is one of Lilly’s most important late-stage pipeline candidates, targeting GLP-1, GIP and glucagon pathways and potentially delivering greater weight loss and broader metabolic benefits than current therapies. With late-stage studies spanning obesity, type II diabetes, obstructive sleep apnea (OSA) and other indications, Lilly plans to seek FDA approval in the first quarter of 2027, potentially creating another multibillion-dollar growth driver.

Lilly’s growth story is increasingly diversifying beyond its GLP-1 franchise, with newer therapies such as Omvoh, Jaypirca, Ebglyss, Kisunla and Inluriyo gaining traction across multiple therapeutic areas. These products are becoming meaningful growth contributors.

The company has also embarked on an aggressive M&A spree in the past couple of years, acquiring biotech companies across oncology, neuroscience, cardiovascular disease, gene editing, inflammation, cell therapy and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced around 10 small biotech M&A deals this year.

Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States.  Price is expected to continue to be a drag on top-line growth in the low- to mid-teens percentage in 2026. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026.

The Case for MRK StockMerck boasts more than six blockbuster drugs in its portfolio, with Keytruda being the key top-line driver. Keytruda, approved for several types of cancers, has played an instrumental role in driving Merck’s steady revenue growth over the past few years. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.

Merck expects Keytruda to achieve peak sales of $35 billion by 2028. The company is working on different strategies to drive Keytruda's long-term growth. These include innovative immuno-oncology combinations, including Keytruda with LAG3 and CTLA-4 inhibitors. In partnership with Moderna (MRNA - Free Report) , Merck is developing a personalized mRNA therapeutic cancer vaccine called intismeran autogene in combination with Keytruda in pivotal phase III studies for earlier-stage and adjuvant NSCLC and adjuvant melanoma.  The combo therapy recently met both primary and secondary endpoints in a phase III study in certain patients with high-risk melanoma.

Merck’s other oncology drugs, Welireg, AstraZeneca-partnered Lynparza and Eisai-partnered Lenvima, are also contributing to top-line growth.

MRK’s Animal Health business also contributes to top-line growth, with sales expected to more than double by the mid-2030s.

The company’s expanding drug pipeline and potential new blockbuster drugs beyond Keytruda look encouraging. Its late-stage pipeline has expanded substantially since 2021, supported by in-house progress as well as the addition of candidates through M&A deals.

Its new products, pulmonary arterial hypertension drug Winrevair, cancer drug Welireg and 21-valent pneumococcal conjugate vaccine, Capvaxive, have begun to contribute significantly to top-line growth. Merck expects to launch 20 new drugs by 2030, with many already launched.

Merck is actively pursuing acquisitions to prepare for Keytruda’s 2028 patent expiration. Recent deals added Ohtuvayre through Verona Pharma, influenza candidate MK-1406 through Cidara, and potential blockbuster cancer drug MK-4208 through Terns Pharmaceuticals.

However, sales of Merck’s second-largest product, its HPV vaccine Gardasil, have slowed down. Sales declined 9% in the first half of 2026 amid weaker demand in China, Japan and the United States. The outlook remains challenging, particularly in China, where economic weakness, elevated channel inventories and growing competition from lower-cost domestic HPV vaccines are expected to keep 2026 revenues immaterial. Changes in U.S. vaccination recommendations are also weighing on demand.

Merck is heavily reliant on Keytruda. While Keytruda may be Merck’s biggest strength and a solid reason to own the stock, the company is excessively dependent on the drug. Keytruda’s core U.S. patent is expected to expire around 2028, with additional patents expiring shortly thereafter. Keytruda is expected to face significant biosimilar competition around 2028-2029. Once biosimilars enter the market, Keytruda’s sales are likely to decline sharply.

Merck faces continued revenue pressure from declining demand for its diabetes drugs Januvia/Janumet and increasing generic erosion across products such as Isentress/Isentress HD, Bridion and Dificid.

How Do Estimates Compare for MRK & LLY?The Zacks Consensus Estimate for LLY’s 2026 sales and EPS implies a year-over-year increase of 36.5% and 37.2%, respectively. The Zacks Consensus Estimate for 2026 has declined from $36.66 to $33.22 per share over the past 30 days, while that for 2027 has risen from $46.75 to $47.23 per share over the same timeframe.

LLY Estimate MovementImage Source: Zacks Investment Research

The Zacks Consensus Estimate for MRK’s 2026 sales implies a year-over-year increase of 3.2%, while EPS is expected to decline 70.5%. Estimates for MRK’s 2026 earnings have declined from $2.77 to $2.65 per share over the past 30 days, while those for 2027 have declined from $9.61 per share to $9.26 per share.

MRK Estimate MovementImage Source: Zacks Investment Research

Price Performance and Valuation of LLY & MRKYear to date, LLY stock has risen 18.5%, while Merck stock has risen 38.0%. The industry has risen 17.2% in the said time frame.

Image Source: Zacks Investment Research

MRK looks more attractive than Lilly from a valuation standpoint. Going by the price/earnings ratio, Lilly’s shares currently trade at 28.49 forward earnings, higher than 19.03 for the industry. However, the stock is trading below its 5-year mean of 34.57. Merck’s shares currently trade at 18.02 forward earnings, slightly lower than the industry but above the stock’s 5-year mean of 13.14.

Image Source: Zacks Investment Research

Merck’s dividend yield is 2.3%, while Lilly’s is around 0.5%.

LLY or MRK: Which is a Better Pick?Lilly has a Zacks Rank #3 (Hold), while Merck has a Zacks Rank #5 (Strong Sell), making the former the clear winner. 

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

Merck has one of the world’s best-selling drugs in its portfolio — Keytruda — generating billions of dollars in revenues. Merck’s new products, strong progress in its pipeline, and business development and acquisitions have increased confidence that Merck may be able to maintain long-term growth even after Keytruda loses exclusivity. However, Merck’s several challenges, including Keytruda’s upcoming LOE cliff, persistent challenges for Gardasil, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs, cloud near-term growth prospects. Also, estimates have declined recently due to costs related to its various M&A deals.

Though Merck’s long-term growth outlook seems to be improving, its prospects for growth in the near term are limited.

On the other hand, exceptional growth from Mounjaro and Zepbound has made Lilly the largest drugmaker. Lilly has one of the strongest growth profiles in big pharma. Though not cheap, Lilly is a great stock to have in one’s portfolio, given its product and pipeline portfolio in high-growth therapeutic areas like obesity, robust growth prospects and bullish analyst sentiment, which make it a clear winner over Merck.

In its upcoming report, Anheuser-Busch Inbev (BUD - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.14 per share, reflecting an increase of 15.2% compared to the same period last year. Revenues are forecasted to be $16.24 billion, representing a year-over-year increase of 7.3%.

The current level reflects an upward revision of 0.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Anheuser-Busch Inbev metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts expect 'Revenue- Global Export & Holding Companies' to come in at $195.04 million. The estimate indicates a change of +5.4% from the prior-year quarter.

It is projected by analysts that the 'Revenue- Middle Americas' will reach $4.97 billion. The estimate points to a change of +15% from the year-ago quarter.

The consensus estimate for 'Revenue- North America' stands at $3.78 billion. The estimate indicates a change of +0.5% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Revenue- Asia Pacific' of $1.46 billion. The estimate points to a change of -4.6% from the year-ago quarter.

The average prediction of analysts places 'Revenue- EMEA' at $2.63 billion. The estimate points to a change of +4.3% from the year-ago quarter.

According to the collective judgment of analysts, 'Volume in Hectoliters - Middle America' should come in at 38377 thousands of hectoliters. Compared to the current estimate, the company reported 36915 thousands of hectoliters in the same quarter of the previous year.

Analysts predict that the 'Volume in Hectoliters - South America' will reach 38264 thousands of hectoliters. Compared to the present estimate, the company reported 36922 thousands of hectoliters in the same quarter last year.

The combined assessment of analysts suggests that 'Volume in Hectoliters - EMEA' will likely reach 24166 thousands of hectoliters. Compared to the present estimate, the company reported 24149 thousands of hectoliters in the same quarter last year.

Analysts forecast 'AB InBev Worldwide - Total Volume' to reach 142191 thousands of hectoliters. The estimate is in contrast to the year-ago figure of 142319 thousands of hectoliters.

Analysts' assessment points toward 'Volume in Hectoliters - Global Export and Holding Companies' reaching 126 thousands of hectoliters. Compared to the present estimate, the company reported 136 thousands of hectoliters in the same quarter last year.

The consensus among analysts is that 'Volume in Hectoliters - North America' will reach 21150 thousands of hectoliters. The estimate is in contrast to the year-ago figure of 21896 thousands of hectoliters.

Based on the collective assessment of analysts, 'Volume in Hectoliters - Asia Pacific' should arrive at 20108 thousands of hectoliters. Compared to the present estimate, the company reported 22301 thousands of hectoliters in the same quarter last year.

View all Key Company Metrics for Anheuser-Busch Inbev here>>>

Anheuser-Busch Inbev shares have witnessed a change of +8% in the past month, in contrast to the Zacks S&P 500 composite's -1.2% move. With a Zacks Rank #3 (Hold), BUD is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Lockheed Martin shares climbed 9.6% after Q3 revenues topped expectations, with backlog hitting a record.A $52.5 billion missile interceptor award and raised 2026 sales guidance supported Lockheed Martin's outlook.ETFs including PPA offer exposure to Lockheed Martin, with portfolio weightings ranging up to 9.54%. Shares of Lockheed Martin (LMT - Free Report) have gained 9.6% following the defense giant’s better-than-expected third-quarter 2026 results on Oct. 22. The rally was driven by revenue and earnings beats, along with a record backlog count, which reached an all-time high of $292 billion. 

The backlog was boosted by a massive $52.5 billion multi-year award for PAC-3 Missile Segment Enhancement interceptors, reflecting surging global demand for missile defense systems. The company’s raised full-year forecast likely further bolstered investor sentiment, contributing to the stock’s climb. 

However, the company’s cash flow situation presented a nuanced picture. Lockheed generated $3 billion in free cash flow during the quarter, representing a 9% decline from the prior-year period’s level. As the company remains in negotiations with the U.S. government over production contracts for F-35 Lots 20 and higher, Lockheed’s future cash flow may suffer a decline if additional funding is not received.

Against this backdrop, investors might want to consider exchange-traded funds (ETFs) with substantial exposure to Lockheed Martin as an alternative to investing directly in the stock. 

These ETFs will offer an opportunity to benefit from a potential rally in LMT stock, driven by geopolitical tensions and a seemingly insatiable demand for munitions and air defense, while avoiding the idiosyncratic risk and sharp volatility associated with a single-stock position.

Before exploring the best ETF options for gaining exposure to Lockheed Martin, let us take a closer look at the company’s third-quarter performance across key operational metrics and assess how the market, particularly credit rating agencies, responded to its results.

A Look at LMT’s Q3 EarningsThe company’s third-quarter earnings of $7.97 beat the Zacks consensus estimate by 6.4%, while its sales of $20.7 billion topped the consensus mark by 1.4%. On a year-over-year basis, both revenues and earnings recorded double-digit growth.  

The sales growth was driven by higher volume across every segment, including F-35 production and sustainment at Aeronautics, MFC munitions production ramps, new radar awards at the RMS unit, and growth in Fleet Ballistic Missile and Next-Generation Interceptor at the Space segment. 

Its backlog increased $113 billion compared with the prior-year period’s level.

LMT has raised its 2026 sales guidance to $80-$82 billion, the midpoint of which reflects year-over-year growth of 8%, but stands lower than the consensus estimate of $81.07 billion. The year-over-year increase in the top line is expected to be driven by higher volume in LMT’s

MFC unit as a result of munition ramp-ups and continued strength across the company’s portfolio as a whole. 

Lockheed Martin's space team has recently completed a key solid rocket motor test for the next-generation interceptor program, keeping that program on track for fielding by 2030 while strengthening homeland missile defense and advancing a capability considered essential to the nation's future (as reported by LMT on its third-quarter conference call). 

Moreover, the recent expansion of its Grand Prairie, TX, manufacturing footprint to more than 735,000 square feet includes additional capability and capacity for automation and digital manufacturing. This facility will also bring on board a Hadrian highly automated production machine cell to supply components across its missile programs under a manufacturing-as-a-service contract.

Such initiatives should continue to boost LMT’s position in the defense industry, offering solid growth potential. 

However, Lockheed’s rising capital expenditure, which rose 15.2%, remains a cause of concern for investors as it continues to squeeze the company's free cash flow (FCF) in the near term. 

Market ReactionFollowing LMT’s third-quarter 2026 results, RBC Capital raised its price target on Lockheed Martin to $600 from $550 while maintaining a 'Sector Perform' rating, citing strong bookings and encouraging initial commentary on 2027. Citi analyst John Godyn also raised his price target for LMT to $706 from $691 and maintained a 'Buy' rating (as seen on Yahoo Finance).  

Lockheed-Heavy ETFs to BuyGiven these developments, the following ETFs could appeal to investors seeking to capitalize on Lockheed Martin’s growth potential while mitigating the risks associated with investing in a single stock:

Invesco Aerospace & Defense ETF (PPA - Free Report)

This fund, with a market value of $7.28 billion, includes 68 companies involved in the development, manufacture, operation, and support of U.S. defense, military, national/homeland security and government space operations. LMT enjoys the first spot in this fund, holding 9.54% of its assets. 

PPA charges 58 basis points (bps) in fees and traded at a volume of 0.22 million shares in the last trading session. 

Global X Defense Tech ETF (SHLD - Free Report)

This fund, with net assets worth $6.45 billion, offers exposure to 50 companies that build and manage cybersecurity systems, utilize artificial intelligence and big data, and build advanced military systems and hardware such as robotics, fuel systems, and aircrafts for defense applications. LMT enjoys the second spot in this fund, holding 9.51% of its assets. 

SHLD charges 50 bps in fees and traded at a volume of 0.72 million shares in the last trading session. 

U.S. Defense ETF (DUTY - Free Report)

This fund, with net asset value of $27.87, includes 52 companies positioned to benefit from increased spending on traditional and modern defense technologies. LMT enjoys the second spot in this fund, holding 8.35% of its assets. 

DUTY charges 45 bps in fees and traded at a volume of 0.001 million shares in the last trading session. 

iShares U.S. Aerospace & Defense ETF (ITA - Free Report)

This fund, with net assets worth $11.78 billion, offers exposure to 50 domestic aerospace and defense companies, including manufacturers of commercial and military aircraft. LMT enjoys the fourth spot in this fund, holding 5.59% of its assets. 

ITA charges 37 bps in fees and traded at a volume of 0.85 million shares in the last trading session. 

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? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value 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 trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Lockheed Martin (LMT - Free Report) Lockheed Martin is one of the world’s largest aerospace and defense contractors. Its main areas of focus are in defense, space, intelligence, homeland security and information technology including cyber security. In 2025, 72% of the company’s net sales were from the U.S. Government, including 63% from the Department of War (DoW), while 28% came from international customers. Lockheed Martin currently operates through four businesses — Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space Systems.

LMT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.84; value investors should take notice.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $30.45 per share. LMT also boasts an average earnings surprise of +8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, LMT should be on investors' short list.

Broadcom Inc. (AVGO - 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 chipmaker have returned -8.8%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Electronics - Semiconductors industry, which Broadcom Inc. falls in, has lost 21.7%. The key question now is: What could be the stock's future direction?

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

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

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

For the current quarter, Broadcom Inc. is expected to post earnings of $3.82 per share, indicating a change of +95.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The consensus earnings estimate of $11.79 for the current fiscal year indicates a year-over-year change of +72.9%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $19.04 indicates a change of +61.5% from what Broadcom Inc. is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

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, Broadcom Inc. is rated Zacks Rank #3 (Hold).

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

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Broadcom Inc., the consensus sales estimate of $34.87 billion for the current quarter points to a year-over-year change of +93.6%. The $105.97 billion and $174.54 billion estimates for the current and next fiscal years indicate changes of +65.9% and +64.7%, respectively.

Last Reported Results and Surprise HistoryBroadcom Inc. reported revenues of $29.59 billion in the last reported quarter, representing a year-over-year change of +85.5%. EPS of $3.32 for the same period compares with $1.69 a year ago.

Compared to the Zacks Consensus Estimate of $29.47 billion, the reported revenues represent a surprise of +0.41%. The EPS surprise was +3.11%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

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

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.

Broadcom Inc. 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 Broadcom Inc.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

The upcoming report from Stryker (SYK - Free Report) is expected to reveal quarterly earnings of $3.56 per share, indicating an increase of 11.6% compared to the year-ago period. Analysts forecast revenues of $6.58 billion, representing an increase of 8.6% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

In light of this perspective, let's dive into the average estimates of certain Stryker metrics that are commonly tracked and forecasted by Wall Street analysts.

The combined assessment of analysts suggests that 'Net Sales by Geography- Orthopaedics' will likely reach $2.88 billion. The estimate indicates a change of +28% from the prior-year quarter.

Analysts forecast 'Net Sales by Business- MedSurg and Neurotechnology' to reach $3.70 billion. The estimate suggests a change of -2.7% year over year.

Analysts' assessment points toward 'Net Sales by Business- MedSurg and Neurotechnology- Medical' reaching $1.13 billion. The estimate indicates a year-over-year change of +14.4%.

According to the collective judgment of analysts, 'Net Sales by Geography- Orthopaedics- Knees' should come in at $647.78 million. The estimate suggests a change of +3.2% year over year.

Based on the collective assessment of analysts, 'Net Sales by Geography- Orthopaedics- Trauma and Extremities' should arrive at $1.09 billion. The estimate indicates a year-over-year change of +13.1%.

Analysts expect 'Net Sales by Business- MedSurg and Neurotechnology- Instruments' to come in at $1.04 billion. The estimate suggests a change of +36.6% year over year.

Analysts predict that the 'Net Sales by Business- MedSurg and Neurotechnology- Endoscopy' will reach $1.02 billion. The estimate indicates a change of +13.9% from the prior-year quarter.

The average prediction of analysts places 'Net Sales by Geography- Orthopaedics- Hips' at $459.46 million. The estimate suggests a change of +0.5% year over year.

It is projected by analysts that the 'Net Sales by Geography- International' will reach $1.73 billion. The estimate points to a change of +16.4% from the year-ago quarter.

The consensus among analysts is that 'Net Sales by Geography- United States' will reach $4.85 billion. The estimate suggests a change of +6.1% year over year.

View all Key Company Metrics for Stryker here>>>

Over the past month, Stryker shares have recorded returns of +12.8% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #4 (Sell), SYK will likely underperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways CVS Health's Q3 EPS is projected to rise 1.3% to $1.62, while revenues are expected to grow 2.1%.CVS Aetna's margin recovery and Government business strength may help offset elevated medical costs.CVS' $20 billion tech investment drives digital growth, while 340B pressures threaten performance. CVS Health (CVS - Free Report) is scheduled to report third-quarter 2026 results on Nov. 4, before the market opens.

The Zacks Consensus Estimate for the company’s third-quarter earnings per share (EPS) suggests a 1.3% increase year over year to $1.62. The estimate has remained unchanged in the past 60 days. The Zacks Consensus Estimate for third-quarter revenues currently stands at $105.04 billion, calling for 2.1% growth year over year.

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CVS Health has a solid earnings surprise history. Its bottom line surpassed estimates in each of the trailing four quarters, the average beat being 20.5%.

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Q3 Earnings Whispers for CVSPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here.

Earnings ESP: CVS Health has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here.

What May Have Influenced CVS Health’s Q3 Performance?Health Care BenefitsHealth Care Benefits revenues are likely to have benefited from strength in the Government business in the third quarter of 2026. However, the benefit may have been partly offset by CVS Health’s exit from the individual exchange business in 2026. At the end of the second quarter, medical membership declined by roughly 700,000 members year over year, primarily due to the exit, partly offset by growth in commercial fee-based membership. The trend is expected to have been carried into the third quarter as well. Elevated medical cost utilization trends are likely to have persisted in the quarter across all products, weighing on the overall performance.

Aetna’s continued margin recovery is likely to have supported the segment, building on more than $2 billion in adjusted operating income improvement earlier this year. The Medicare business may have delivered a robust performance, as the company continues to experience pockets of favorability due to strong medical cost management and disciplined pricing. Contributions from the Medicaid and Commercial businesses may also have supported overall revenues.

The Zacks Consensus Estimate for the Health Care Benefits segment's revenues indicates a 4.6% year-over-year decrease. 

Health ServicesSimilar to the past quarters, revenues in this segment are expected to have benefited from pharmacy drug mix and brand inflation. However, continued pharmacy client price improvements may have restricted the full extent of growth. Adjusted operating income in the segment is expected to have benefited from improved purchasing economics and pharmacy drug mix.

CVS has continued to execute its operational plans for the health care delivery business, including slowing the pace of new Oak Street Health clinic openings, investing in technology, bringing in new leadership and pursuing fair and equitable contracts with payer clients. These initiatives may have continued to support the segment’s third-quarter performance. In the second quarter, Health Services revenues grew nearly 23% year over year, primarily driven by Oak Street Health.

Meanwhile, the Caremark pharmacy benefit manager (PBM) faced pressure in its 340B business in a dynamic program environment. The business also experienced a pull-forward of value previously expected in the second half of the year. Excluding this timing benefit, underlying performance was in line with expectations, supported by strength across the broader Caremark business, including higher specialty generic penetration rates, which offset 340B-related pressure. These dynamics may have persisted in the third quarter, weighing on the segment’s revenues.

The Zacks Consensus Estimate for Health Services’ net revenues implies a 5% increase year over year.

Pharmacy & Consumer Wellness This segment is also expected to have delivered a solid performance in the third quarter of 2026, supported by pharmacy drug mix, brand inflation and higher prescription volume, including contributions from the Rite Aid transaction. However, factors like regulatory-related price reductions on select drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure are likely to have weighed on performance.

Increased pharmacy prescription volumes on a 30-day equivalent basis are likely to have supported same-store sales growth, although these benefits may have been partly offset by the abovementioned headwinds.

The Zacks Consensus Estimate expects Pharmacy & Consumer Wellness revenues to decline 1.9% year over year. 

CVS Investment Consideration: Two Factors to NoteRapid Digital Growth: CVS Health’s $20 billion technology investment over the next decade entered the deployment phase in 2026. In July, the company began the targeted launch of Health100, including Haio, its AI-powered health assistant, with broader access planned later in the year. Aetna also launched the second generation of Claims Assist Manager, an AI-enabled claims advisor that management expects to reduce processing time by more than 20% for complex claims requiring manual review. CVS is also using technology to improve provider connectivity and data sharing in Health Care Delivery, including AI and analytics that can analyze more than one billion pages of clinical records.

Near-Term Earnings Pressure: CVS Health expects its Pharmacy Services business to face continued headwinds in 2027 as market dynamics in the 340B business persist. Caremark is also expected to see membership declines next year on two factors. As the company transitions toward a pricing model grounded in the lowest net cost, it is taking a measured approach to client renewals and the selling season to ensure that existing agreements reflect appropriate underwriting risk and contracting structures. Industry dynamics are already affecting legacy contracts. Product actions and market exit by certain health plan customers are expected to put further pressure on Caremark membership.

CVS: Price Performance & ValuationOver the past six months, CVS shares have rallied 19.3%, trailing its industry’s 21.4% growth but outperforming the 14.6% rise of the broader Medical sector. The stock has also fared better than two key peers, UnitedHealth Group (UNH - Free Report) and The Cigna Group (CI - Free Report) . During the same period, UNH shares have returned 17.9%, while CI has gained 8.7%.

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CVS is trading at a forward 12-month Price/Earnings (P/E) of 11.10X, lower than its 11.14X historical median and the industry average of 16.22X.

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ConclusionCVS Health’s upcoming third-quarter 2026 results are expected to reflect mixed trends across its segments, with continued Aetna margin recovery, improvements in the health care delivery business and strength in the Government business supporting performance. The company’s history of surpassing earnings expectations fuels optimism for another beat. Despite slightly underperforming its industry, CVS has outpaced the broader sector and key peers. Given CVS Health’s favorable valuation and growing digital investments, current shareholders may consider holding their positions. However, prospective investors may want to wait for a more favorable entry point as CVS navigates 340B-related pressure.