Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Micron (MU 5.73%) stock sold off for a second straight day Thursday -- and I have to say, the logic here seems weird.
Shares of the manufacturer of computer memory chips slipped 3.2% through 10:15 a.m. ET after Taiwan Semiconductor Manufacturing Company (TSM 2.58%) blew past analyst estimates in its Q2 earnings report, growing profits 77% year over year -- but warned investors will spend upwards of $60 billion on capital investment this year, versus prior forecasts of about $54 billion.
Image source: Micron.
Good news for TSMC isn't bad news for Micron Investors are punishing TSMC with a 1.5% sell-off today despite the good earnings news -- worrying TSMC's spending too much, and hurting its free cash flow in the process. But here's the thing: Many of the chips TSMC is producing are CPUs and GPUs for artificial intelligence customers, and these chips will need to be paired with Micron's HBM memory chips to perform their functions.
In other words, more investment and more chip production from TSMC should increase demand for Micron chips and increase Micron's profits.
Today's Change
(
-5.73
%) $
-51.81
Current Price
$
852.47
Good news for Micron is... good news for Micron That's not all. While Micron's being punished as a corollary to investors punishing TSMC today, Micron has some independently good news of its own to report. Namely, Micron has signed Strategic Customer Agreements to supply memory chips to seven "key Tier 1 suppliers" to the global automotive industry: Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo, and Hyundai Mobis.
Micron says the supply agreements give certainty regarding future orders and pricing for the automotive chips it produces. They should also reassure investors that the profit margins Micron earns on these products will stay high for years.
This is not a reason to sell Micron stock. It's a reason to buy Micron stock.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Memory chip and storage stocks fell sharply on Thursday as investors extended a broad semiconductor selloff following Taiwan Semiconductor Manufacturing Co.'s quarterly results, despite the world's largest contract chipmaker posting record earnings.
TSMC reported its fifth consecutive quarter of record profit, beating analyst expectations.
However, investors focused instead on the company's higher-than-expected capital spending plans, a slight revenue miss, and its growing investment commitments in the United States.
US-listed shares of TSMC fell about 1.7% in morning trading after the company raised its annual capital expenditure guidance to between $60 billion and $64 billion, up from its previous forecast of $52 billion to $56 billion.
The company also highlighted its planned $100 billion investment to expand chip manufacturing in Arizona, adding another point of discussion for investors assessing future spending requirements across the semiconductor industry.
The cautious reaction to TSMC's results spilled over into memory chipmakers and storage companies.
Micron Technology MU dropped more than 4%, while SanDisk declined around 8%.
Western Digital fell 5%, and Seagate Technology lost more than 5% each by mid-morning trading after steeper losses at the market open.
US-listed shares of South Korean memory giant SK Hynix slid about 8%.
The weakness was not confined to memory companies.
The Philadelphia Semiconductor Index fell more than 2.6%, while AI chipmakers Nvidia, AMD, and Broadcom also declined between 1.7% and 3%.
The pullback reflects growing caution around the pace of investment in artificial intelligence infrastructure rather than doubts about AI's long-term prospects.
Shiraz Ahmed, founder and chief executive of Sartorial Wealth Inc., told Reuters that the recent rally in semiconductor stocks appears to be cooling.
According to Ahmed, AI demand remains intact, but adoption has yet to become widespread enough to justify the pace of capital expenditure currently taking place across industries ranging from semiconductors to energy.
The combination of rising investment costs and elevated valuations has prompted investors to reassess expectations for near-term earnings growth across the sector.
Micron is also facing fresh concerns over potential competition from Chinese memory manufacturer ChangXin Memory Technologies (CXMT).
The company is reportedly preparing to raise approximately $8.5 billion through a listing on Shanghai's STAR Market, almost double its initial fundraising target, implying a valuation of roughly $85.5 billion.
According to Trefis, the proceeds could provide CXMT with significant resources to expand production of commodity DRAM chips, one of Micron's core businesses.
"In the notoriously cyclical memory-chip business, a well-funded new entrant is the oldest ghost in the machine, signaling future supply gluts and potential price wars," Trefis said.
The research firm noted that Micron's financial performance remains strong, with revenue over the past 12 months increasing 86% year over year and net margins reaching a three-year high of 42%.
"By the numbers, Micron is having a fantastic run," Trefis said, however, it warned that the memory industry has historically been characterised by cycles of capacity expansion followed by oversupply and falling prices.
Still, analysts noted that CXMT remains constrained by US export restrictions that limit access to advanced chipmaking equipment.
Those sanctions prevent the company from producing the most advanced high-bandwidth memory chips used in AI servers, reducing the immediate competitive threat to Micron's higher-end products.
However, Trefis said additional capacity could still pressure pricing in the standard DRAM market, an important contributor to Micron's recent margin expansion.
Separately, Micron announced long-term supply agreements with automotive partners, including Qualcomm and Harman, to provide memory and storage components for AI-enabled vehicles.
The agreements are aimed at securing supply as automakers increasingly adopt artificial intelligence features, adding another long-term growth avenue for the company even as investors remain cautious about near-term industry dynamics.
Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) posted a 77% jump in second-quarter net profit and raised its capital spending forecast for the year, as the world's largest contract chipmaker rides sustained demand for AI processors.
Net profit came in at $22.36 billion for the quarter, well above analyst estimates of $19.74 billion, on revenue of $40.2 billion, up 33.7% from a year earlier.
Gross margin rose to 67.7%, ahead of the 67.1% consensus estimate.
The company lifted its 2026 capital expenditure guidance to a range of $60 billion to $64 billion, up from a prior forecast of $52 billion to $56 billion. TSMC said capex over the next three years would be "even more significantly higher" than in the previous three-year period.
Shares fell about 2% on Thursday morning following the capex increase.
For the third quarter, TSMC guided revenue of $44.6 billion to $45.8 billion, above the $43.11 billion analyst estimate and representing 37% annual growth. Gross margin is expected between 65% and 67%, with operating margin seen at 56% to 58%.
High-performance computing remained TSMC's largest revenue driver, accounting for 66% of the platform mix and growing 20% quarter-over-quarter. Smartphone revenue slipped 4% sequentially to 22% of the total, while automotive revenue rose 15% to reach 4%.
Advanced nodes continued to dominate output, with chips at 7nm and below making up 77% of wafer revenue. The 3nm and 5nm processes each represented roughly a third of the mix, while the newer 2nm node contributed 3%.
TSMC also expanded its US investment plans, announcing an additional $100 billion commitment in Arizona that brings its total US investment to $265 billion. The company said its eventual American footprint could grow to 10 fabs and two advanced-packaging facilities, with four new facilities expected to focus primarily on 2nm logic production, though the final mix could shift to three logic fabs and one packaging plant.
Construction timing has not been disclosed and will depend on market conditions.
Looking further ahead, TSMC said it expects the ramp-up of its N2 process to dilute gross margin by 3 to 4 percentage points in the second half of 2026, with overseas fabs weighing on margins by 2 to 3 points initially and 3 to 4 points in later stages. The company reiterated a long-term revenue compound annual growth rate of around 25%, with AI accelerator revenue growth in the high-50% range.
While TSMC is racing ahead with next-generation technology, it’s also generating the kind of manufacturing profits that remain the envy of the semiconductor industry. And that’s the hurdle Intel ultimately has to clear if it wants its foundry business to compete with the world’s largest contract chipmaker.
A Manufacturing MachineTSMC reported a 67.7% gross margin and a 60.3% operating margin for the second quarter, alongside a 36% year-over-year increase in revenue and a 77.4% jump in net income. Even more striking, 77% of the company’s wafer revenue now comes from advanced process technologies—7-nanometer and below—highlighting how deeply the AI boom has reshaped its business.
The momentum isn’t slowing.
The company said its 2-nanometer process (which has Apple Inc (NASDAQ:AAPL) as a key customer) already accounted for 3% of wafer revenue during the quarter and expects a steep production ramp in the third quarter as demand for leading-edge chips continues to accelerate.
Those aren’t just technology milestones. They’re evidence of extraordinary pricing power and operational efficiency in a business where manufacturing complexity continues to rise.
Intel’s Bigger ChallengeBut matching TSMC isn’t simply about reaching the next manufacturing node.
It’s about producing cutting-edge chips while consistently generating industry-leading margins, filling factories with high-value customer orders and scaling advanced manufacturing without sacrificing profitability.
TSMC’s second quarter results show how difficult that equation has become. The foundry isn’t merely leading in advanced manufacturing—it is turning that leadership into exceptional financial performance, with profits growing more than twice as fast as revenue during the quarter.
The Next BenchmarkIntel’s upcoming foundry milestones will inevitably be measured against TSMC’s technology roadmap.
But investors may want to pay just as much attention to the financial metrics.
Winning customers is one thing. Building a manufacturing business capable of producing margins approaching 68% while ramping the industry’s most advanced chip technologies is another entirely.
TSMC’s latest quarter serves as a reminder that the foundry race isn’t just about making the smallest chips. It’s about building the most profitable manufacturing business in semiconductors—and that’s the benchmark Intel is ultimately chasing.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The artificial intelligence boom has created one of the largest semiconductor investment cycles in history. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) has become the face of the revolution, with its data center business generating $75.2 billion in revenue in fiscal 2027’s first quarter as companies race to build AI infrastructure. But the next phase of AI chip innovation may not come from simply making faster graphics processors.
The industry is reaching the limits of traditional chip design, and the solution is forcing a fundamental change in how semiconductors are built. The future of AI may depend on reinventing CMOS silicon itself.
CMOS Silicon Is Entering A New Era For more than 50 years, the semiconductor industry followed a simple formula: make transistors smaller, put more of them on a chip, and increase computing power. This approach, known as Moore’s Law, transformed companies like Intel (NASDAQ:INTC) , Nvidia, Advanced Micro Devices (NASDAQ:AMD), and countless others. But artificial intelligence is changing the rules.
Large language models require enormous amounts of data to move between memory and processing units. The challenge is no longer only how many transistors can fit on a chip. It is how quickly those transistors can access the information they need. That is pushing the industry toward a new generation of CMOS architecture.
CMOS — the technology behind nearly every modern processor — is not being replaced. Instead, it is being stretched into three dimensions. The next leap is moving from simply shrinking chips to stacking them.
That distance creates a bottleneck. AI workloads need data moving at speeds traditional architectures cannot efficiently provide. HBM solves the problem by stacking memory directly on top of compute, creating a much shorter path for data. This is why HBM has become a critical component of Nvidia’s latest AI systems. But those systems rely on a broader ecosystem of suppliers.
The companies positioned for this shift include:
Company Role In Next-Generation AI Chips Nvidia Designs AI accelerators that require advanced architectures Taiwan Semiconductor Manufacturing (NYSE:TSM) Manufactures leading-edge chips and advanced packaging Micron Technology (NASDAQ:MU) Produces HBM memory for AI systems Samsung Electronics Manufactures advanced memory and semiconductor products SK hynix (NASDAQ:SKHY) Leading supplier of HBM memory Intel Developing advanced packaging and future chip architectures As AI chips become more complex, packaging becomes almost as important as transistor manufacturing.
CMOS Silicon Is the Next AI Chip Battleground The significance of 3D architectures is that they represent the next evolution of CMOS silicon itself.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
For decades, semiconductor companies improved performance by shrinking transistors and fitting more computing power onto a single chip. But AI is changing the equation. The challenge is no longer just building smaller transistors — it is building systems that can move enormous amounts of data between memory and compute.
TSM is a clear example. Its CoWoS packaging technology allows AI accelerators and HBM memory to be combined into a single high-performance package. Nvidia’s most advanced AI systems depend on this type of integration because traditional chip designs cannot deliver the bandwidth required by modern AI models.
Intel and AMD are also pursuing different versions of this next-generation CMOS approach. Intel is developing its 18A process and advanced packaging capabilities, while AMD has used chiplet architectures in its Ryzen, EPYC, and Instinct product lines to combine multiple pieces of silicon into larger, more efficient systems.
The companies that win the next stage of AI infrastructure may not simply be the ones making faster processors. They may be the companies solving the architectural challenges that allow those processors to scale.
Key Takeaway In short, investors should not view CMOS silicon as yesterday’s technology. The AI revolution is forcing the semiconductor industry to reinvent a platform that has powered computing for decades. The next generation of AI chips will be built through three-dimensional designs, stacked memory, and advanced packaging rather than simply smaller transistors.
Photonics may eventually become the next major computing transition, especially as heat and data movement become bigger challenges. But that is the chapter after this one. Right now, the opportunity is the companies extending CMOS silicon into the AI era.
Nvidia may be the face of artificial intelligence, but the companies making CMOS faster, denser, and more efficient could help determine how far the AI boom can go.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Taiwan Semiconductor Manufacturing (NYSE:TSM) sit on opposite ends of the same AI supply chain.
NVIDIA just posted $81.6 billion in Q1 FY27 revenue, and TSMC reported Q2 2026 today after flagging NT$442.68 billion in June alone. One designs the chips. The other builds them. Both are riding the same wave, on very different economics.
Blackwell Rules NVIDIA. AI Wafers Rule TSMC. NVIDIA’s Data Center segment reached $75.25 billion, up 92% year over year, with networking alone at $14.8 billion (+199%). That is InfiniBand, NVLink, and Spectrum-X pulling their weight next to GPUs.
Jensen Huang framed it plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Guidance for Q2 FY27 is $91 billion, and it excludes China entirely.
TSMC’s story is quieter but arguably deeper. Advanced nodes at 7nm and below made up 77% of wafer revenue in Q4 2025, with 3nm at 28% and 5nm at 35%.
High Performance Computing has become the dominant segment at NT$558.59 billion in Q3 2025, larger than smartphones. First-half 2026 revenue is already up 35.6% year over year. The June revenue report grew 67.9%, a number that would look wild anywhere else.
Designer Margins vs. Foundry Muscle The business models produce very different profiles. NVIDIA’s gross margin sits at 75% non-GAAP, a fabless designer collecting rent on CUDA and platform lock-in.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
TSMC’s gross margin came in at 62.3%, above its own guidance, which is remarkable given how capital-hungry the foundry business is. TSMC plans $52 billion to $56 billion in 2026 capex. NVIDIA, by contrast, just authorized $80 billion in fresh buybacks and lifted the dividend from $0.01 to $0.25.
Lens NVIDIA TSMC Core Bet AI platform (Blackwell, Vera Rubin) Leading-edge nodes (3nm, 2nm) Gross Margin 75.0% 62.3% Capital Priority Buybacks and dividends Fab expansion (Arizona, Japan, Germany) Key Vulnerability China export ban, customer concentration in hyperscalers (~50%) Top 10 customers = 85% of AR, geopolitical risk The relationship is symbiotic. The first Blackwell wafer produced on US soil rolled out of TSMC Arizona. If you want to see where NVIDIA’s supply commitments of $119 billion land, look at TSMC’s order book.
The Next Test Is Whether Demand Keeps Compounding NVIDIA’s Q2 guide assumes continued hyperscaler urgency and no China rebound. TSMC’s full-year 2026 outlook of near 30% USD growth depends on 3nm and 2nm ramps holding through H2.
Reddit chatter reflects the tension: NVDA sentiment swung sharply on DeepSeek and Meta custom-chip headlines, while TSM sentiment jumped to 78 on the June revenue release.
Why I Lean Toward TSMC on Valuation, NVIDIA on Momentum Personally, I find TSMC the more interesting name at these levels. Its forward P/E of 27 against NVIDIA’s 23 looks reasonable given TSMC serves NVIDIA, Apple, AMD, and Broadcom, and its stock is already up 78.95% over the past year versus NVIDIA’s 24.65%.
If you want the platform economics and the buyback cadence, NVIDIA still fits. If you want the pick-and-shovel exposure with a broader customer base, TSMC does. I would hesitate on both if China tensions escalate further, because that scenario dents demand at NVIDIA and complicates TSMC’s fab strategy at the same time.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) declined in US trading on Thursday despite the company posting record second-quarter earnings and raising its long-term investment plans.
The decline suggests investors may be focused on higher capital spending and the potential impact of US manufacturing expansion on margins.
TSMC's US-listed shares fell more than 2.2%, while its Taiwan-listed stock ended the session over 1% higher after the earnings announcement.
The world's largest contract chipmaker, regarded as a key barometer for artificial intelligence demand, reported second-quarter net profit of T$706.6 billion ($22 billion), up 77% from a year earlier and well ahead of market expectations of T$632.6 billion.
It marked the company's ninth consecutive quarter of double-digit profit growth.
Revenue came in at T$1.27 trillion ($39.45 billion), slightly above analysts' expectations of T$1.264 trillion.
TSMC projected third-quarter revenue between $44.6 billion and $45.8 billion, comfortably ahead of Wall Street expectations of roughly $43.1 billion.
The company also guided for an operating profit margin of 56% to 58% during the third quarter.
However, investors appeared more concerned about management's revised spending plans than the earnings beat itself.
TSMC increased its 2026 capital expenditure forecast to between $60 billion and $64 billion, up from its previous guidance of the upper end of a $52 billion to $56 billion range.
The higher spending reflects continued investment in advanced manufacturing capacity to meet surging AI chip demand, but also raised concerns over near-term profitability.
The company simultaneously unveiled an additional $100 billion investment in Arizona, expanding its US manufacturing footprint as part of broader efforts to diversify production outside Taiwan.
Gytis Zizys, an analyst at Seeking Alpha, said the higher capital expenditure likely contributed to the stock's decline.
"Another reason might be that the company raised its capex forecast to over $60B, which is a lot; however, I think this is totally necessary to remain on top of the game and be the top foundry in the world," Zizys said.
"To be competitive in this day and age, companies like TSMC have to keep up with the spending that AI hyperscalers are doing right now; otherwise, they will go to the next foundry, which would be hard to do given the complete dominance of advanced processes by TSM."
He also noted that investors were reacting to the expected margin impact of the company's next-generation manufacturing nodes.
"As the more advanced nodes come online, specifically the 2-nanometer node, which is going to be done in the US, it is going to dilute its margins," he said.
"At first, the management said that it would be 2%-3%, and then it will widen to 3%-4% in the latter stages. I don't think this is such a bad outcome given the company's profitability and the overall demand for AI chips by all of the hyperscalers. The increase in overall revenue will more than offset the loss in margins, in my opinion."
Brokerages largely maintained their positive view on TSMC despite the market's muted reaction.
KGI Securities raised its price target on the stock to NT$3,200 from NT$3,000 while maintaining an Outperform rating, citing higher earnings expectations.
The stock currently trades at NT$2,470.
The brokerage based its revised valuation on 20 times forecast earnings per share for the second half of 2027 through the first half of 2028.
KGI analyst Michael Liu acknowledged that some investors may be disappointed by the lack of upside surprises in the quarterly results and may worry about margin dilution following the updated guidance.
However, he argued that the company's technology leadership remains its biggest competitive advantage.
"While investors may be somewhat deflated by the lack of upside surprises in 2Q26 results, and may even harbor concerns about margin dilution (particularly from gross margin guidance), we suggest investors focus on the company's sustained, outstanding technology leadership and how still-strengthening AI-related demand will drive a robust long-term earnings CAGR," Liu said.
Abbott (ABT - Free Report) reported $12.59 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 13%. EPS of $1.31 for the same period compares to $1.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $12.48 billion, representing a surprise of +0.91%. The company delivered an EPS surprise of +2.34%, with the consensus EPS estimate being $1.28.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Abbott performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net sales- Nutrition- International: $1.27 billion versus the four-analyst average estimate of $1.22 billion. The reported number represents a year-over-year change of +1.4%.Net sales- Nutrition- U.S.: $871 million compared to the $894.77 million average estimate based on four analysts. The reported number represents a change of -9% year over year.Net sales- Diagnostics- U.S.: $1.66 billion versus $1.67 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +104.7% change.Net sales- Diagnostics- International: $1.43 billion compared to the $1.4 billion average estimate based on four analysts. The reported number represents a change of +5.1% year over year.Net sales- Nutrition: $2.14 billion versus the five-analyst average estimate of $2.12 billion. The reported number represents a year-over-year change of -3.1%.Net sales- Diagnostics: $3.09 billion compared to the $3.08 billion average estimate based on five analysts. The reported number represents a change of +42.3% year over year.Net sales- Medical Devices- Diabetes Care: $2.19 billion versus $2.16 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.5% change.Net sales- Established Pharmaceuticals: $1.5 billion versus the five-analyst average estimate of $1.47 billion. The reported number represents a year-over-year change of +8.4%.Net sales- Medical Devices- Vascular- Total: $803 million versus the four-analyst average estimate of $787.71 million. The reported number represents a year-over-year change of +6.1%.Net sales- Medical Devices- Neuromodulation- Total: $260 million versus the four-analyst average estimate of $264.12 million. The reported number represents a year-over-year change of +2.4%.Net sales- Medical Devices- Structural Heart- Total: $597 million compared to the $601.27 million average estimate based on four analysts. The reported number represents a change of -6.1% year over year.Net sales- Medical Devices- Heart Failure- Total: $401 million versus $394.93 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9% change.View all Key Company Metrics for Abbott here>>>
Shares of Abbott have returned +0.9% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Why Abbott Laboratories Stock Is Suddenly Winning Back Wall StreetAbbott Laboratories NYSE: ABT reported second-quarter 2026 comparable sales growth of 4.8% and adjusted earnings per share of $1.31, with Chairman and Chief Executive Officer Robert Ford saying results marked an acceleration from the prior two quarters.
The company reaffirmed its full-year comparable sales growth guidance of 6.5% to 7.5% and raised its adjusted EPS guidance range to $5.45 to $5.60. Chief Financial Officer Phil Boudreau said Abbott expects third-quarter adjusted EPS of $1.38 to $1.46.
Get Abbott Laboratories alerts:
AbbVie Fires Healthy Trend-Following Signal: Is a Rebound Ahead?Ford said Abbott entered the second half of the year with “momentum building across the portfolio” and “clear line of sight” to the drivers behind expected sales growth acceleration. He said the company’s focus on gross margin expansion supported the higher earnings outlook.
Margins Improve as Sales Growth Accelerates Boudreau said second-quarter adjusted gross margin was 58.0% of sales, up 100 basis points from the prior year. He attributed the improvement to favorable business mix within Abbott’s legacy portfolio, the addition of Exact Sciences, operational improvements and disciplined execution of margin expansion initiatives.
Abbott Stock Crash: Rebound Could Be Coming FastAdjusted research and development expense was 6.9% of sales, while adjusted selling, general and administrative expense was 28.6% of sales. Foreign exchange had a favorable 0.8% year-over-year impact on second-quarter sales, slightly better than Abbott expected in April. Based on current rates, Boudreau said the company expects foreign exchange to have a positive impact of about 1% on full-year sales, including an expected negative impact of about 1% in the third quarter.
Diagnostics and Nutrition Show Mixed Trends In diagnostics, Ford said Abbott’s core laboratory business reflected strong demand for testing, which he described as a useful indicator of broader healthcare activity. U.S. core laboratory sales grew 7.5%, and Ford said the company continued to post strong performance in Latin America. During the question-and-answer session, he said hospital lab testing within Abbott’s U.S. core lab business was up 13% in the quarter.
Rapid and molecular diagnostics sales declined 8%, driven by an expected drop in respiratory virus testing following a weaker-than-normal season that ended during the quarter.
Cancer diagnostics sales grew 13%, supported by mid-teens growth in Cologuard, contributions from precision oncology and international growth. Ford said Abbott continues to expect cancer diagnostics growth in the second half to exceed first-half growth, helped by care gap programs, recently launched tests and international adoption. He also noted that the American Cancer Society updated its colorectal cancer screening guidelines in May, reaffirming Cologuard and Cologuard Plus as preferred screening options.
Nutrition sales came in slightly ahead of Abbott’s expectations for the second straight quarter, according to Ford. Sales increased sequentially by $125 million, supported by improving trends in both pediatric and adult nutrition. International pediatric nutrition returned to positive growth, rising 6.5% in the quarter. In the U.S. pediatric business, Ford said Abbott exited the quarter with the full benefit of recent WIC contract wins in its run rate and is now the market leader in both WIC and non-WIC segments.
In adult nutrition, Ford said the company continued to see positive volume trends after price actions taken late last year. U.S. retail consumption of Ensure rose by double digits compared with levels exiting last year. Abbott is also seeing contributions from new versions of Ensure featuring higher protein, lower sugar and updated labeling and packaging.
Medical Devices Growth Led by EP, Rhythm Management and Diabetes Care Medical devices sales grew 8.5%, with Abbott’s cardiovascular device portfolio also up 8.5%. Ford said growth was led by low-teens growth in electrophysiology and high-single-digit growth in rhythm management and heart failure.
In electrophysiology, Ford said the second quarter marked the beginning of an acceleration in the business. Abbott launched its next-generation Volt pulsed field ablation catheter, commonly called Volt 2.0, in the U.S. in May and expects to move from limited market release to full market release in the third quarter. Internationally, the rollout of Volt and TactiFlex Duo is gaining traction, with growth of more than 20% in Europe.
Rhythm management sales grew 9.5%, supported by expanded use of the AVEIR pacemaker across single- and dual-chamber segments and broader international adoption. Heart failure sales grew 9%, led by double-digit growth in the U.S. from Abbott’s heart assist devices.
In diabetes care, continuous glucose monitoring sales exceeded $2 billion and grew 9.5%. Abbott received CE mark in May for Libre Duo, which Ford described as the world’s first dual glucose-ketone wearable sensor. The company plans to begin the international rollout in the fall and bring the product to the U.S. after FDA approval.
Pipeline Updates Include New Launches and Clinical Trials Ford highlighted several pipeline milestones, including completion of patient enrollment in the TECTONIC coronary intravascular lithotripsy pivotal trial and completion of Abbott’s FDA submission for approval of its new Amulet 360 left atrial appendage device.
He said Abbott expects to launch Amulet 360, Libre Duo, its coronary IVL product and TactiFlex Duo PFA catheter in the U.S. over the next 12 months. The company also remains on track to begin patient enrollment in the fourth quarter for several clinical trials, including studies for a balloon-expandable TAVR valve, a leadless conduction system pacing device using the AVEIR platform, a mitral replacement valve developed after Abbott’s acquisition of Cephea Valve Technologies, a peripheral IVL device developed after the acquisition of CSI and a wearable continuous lactate monitoring sensor intended to reduce sepsis risk after hospital discharge.
Management Addresses Demand, CGM Reimbursement and 2027 Setup During the call’s Q&A session, Ford said Abbott is not seeing signs of weakening procedure volumes in its businesses, despite investor concerns tied to hospital-sector preannouncements and possible Medicaid disenrollment. He said Medicare, not Medicaid, is the larger payer for many medical device procedures, including more than two-thirds of Abbott’s U.S. cardiovascular business. He also said demand for high-acuity, life-saving products is “very inelastic.”
Ford said 80% of Abbott’s expected second-half growth acceleration is expected to come from four areas: nutrition, electrophysiology, core laboratory and cancer diagnostics.
On continuous glucose monitoring, Ford said Abbott remains bullish on the market, estimating that 75 million to 80 million people globally could realistically use CGM, compared with about 15 million today. He said reimbursement expansion is the most immediate driver of adoption, and Abbott is in discussions with about a dozen countries on introducing or expanding coverage. In the U.S., he said broader type 2 diabetes coverage could unlock about 10 million Medicare beneficiaries and accelerate commercial insurance coverage, though he did not provide a specific timing forecast.
Looking beyond 2026, Ford declined to provide specific 2027 guidance but said Abbott continues to target high-single-digit top-line growth and double-digit earnings growth. He described 7% sales growth as a sustainable target for the company, supported by its mix of nutrition, diagnostics, established pharmaceuticals and medical technology businesses.
About Abbott Laboratories NYSE: ABTAbbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.
In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Abbott Laboratories Right Now?Before you consider Abbott Laboratories, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abbott Laboratories wasn't on the list.
While Abbott Laboratories currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
SummaryAbbott Laboratories delivered strong Q2 results, beating expectations and raising FY 2026 guidance, prompting a 14% stock surge.ABT’s valuation now appears fair, with normalized EPS estimated at $5.80 and an 18x P/E suggesting near-term value around $105.Key segments like diagnostics and electrophysiology posted robust growth, while shareholder returns totaled $2.1 billion in Q2.I’m upgrading ABT to Hold; technicals are mixed, but profitability, yield, and pipeline progress support a neutral stance post-earnings. Sundry Photography/iStock Editorial via Getty Images
Abbott Laboratories (ABT) reported strong Q2 results, helping to lift the stock by double digits on Thursday, July 16. The top- and bottom-line beats came with a guidance
9.47K Followers
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.
Wall Street analysts forecast that Danaher (DHR - Free Report) will report quarterly earnings of $1.84 per share in its upcoming release, pointing to a year-over-year increase of 2.2%. It is anticipated that revenues will amount to $6.09 billion, exhibiting an increase of 2.6% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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.
That said, let's delve into the average estimates of some Danaher metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Total Sales- Diagnostics' will reach $2.33 billion. The estimate points to a change of +0.8% from the year-ago quarter.
According to the collective judgment of analysts, 'Total Sales- Life Sciences' should come in at $1.79 billion. The estimate indicates a year-over-year change of +0.9%.
The average prediction of analysts places 'Total Sales- Biotechnology' at $1.95 billion. The estimate indicates a change of +5.5% from the prior-year quarter.
The consensus among analysts is that 'Operating profit- Biotechnology' will reach $574.60 million. Compared to the present estimate, the company reported $531.00 million in the same quarter last year.
The consensus estimate for 'Operating profit- Diagnostics' stands at $521.81 million. Compared to the current estimate, the company reported $554.00 million in the same quarter of the previous year.
View all Key Company Metrics for Danaher here>>>
Danaher shares have witnessed a change of +13% in the past month, in contrast to the Zacks S&P 500 composite's +0.5% move. With a Zacks Rank #2 (Buy), DHR is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
GBP Talking Points: The British Pound retains relative strength, with GBP/USD setting a fresh monthly high yesterday, even as EUR/USD held lower-high resistance. GBP/JPY, however, has been in full breakout mode. I looked into this at the Tuesday webinar and the move has stretched all the way into a major Fibonacci level just below the 220 handle.
While USD bulls came back to life from mid-April through last month, GBP/USD has held up relatively well. The pair did test a fresh low in late-June but support held at a key Fibonacci level of 1.3143, and that’s where the music stopped for sellers and since then a strong bullish reversal has taken over that’s seen Cable rip for more than 400 pips into yesterday’s fresh monthly high.
This Fibonacci level carries some historical importance, as well, as the 38.2% retracement of the 2025 rally, and this came into play in August of that year to hold the lows with another instance of support, albeit messier, a couple months later.
GBP/USD Weekly Chart Chart prepared by James Stanley; data derived from Tradingview GBP/USD On a shorter-term basis prices are pulling back from the fresh high set yesterday, and the question now is when or where a higher-low might appear. The 1.3500 handle certainly seems to be playing a role but perhaps more interesting is a spot of prior resistance, down around 1.3450 that would be an ideal spot for buyers to defend. And then below that, the 1.3390 Fibonacci level up to the 1.3400 handle. And for an ‘s3’ support, there’s a prior swing-low turned swing-high that stands out around 1.3325.
GBP/USD Four-Hour Chart Chart prepared by James Stanley; data derived from Tradingview GBP/JPY I looked into GBP/JPY in the Tuesday webinar and at the time, the pair was set up in an ascending triangle formation. Buyers have since made a mark with a rally of more than 200 pips, and now we have price pushing into a longer-term Fibonacci level of note at 219.39 following the print of a fresh 18-year high.
GBP/JPY Monthly Chart Chart prepared by James Stanley; data derived from Tradingview Similar to albeit with more relative strength, we have the move pulling back in a short-term counter-trend dynamic. Given the veracity of the breakout, however, we’re also further away from any nearby possible swing points, as prior resistance is all the way down around 217.84 and for that to come into play we’d need a retracement of more than 100 pips from current market price. Ideally, for bullish continuation, buyers would remain more aggressive than that, and something like this is where Fibonacci can come into play as the recent rally has so far only given back 23.6% of the move.
The 38.2% retracement of that same move sets up as support potential, and this would be a more attractive area for bulls to show hints of topside continuation. From that same retracement, 218.41 and 218.04 would also be of interest.
GBP/JPY Two-Hour Price Chart Chart prepared by James Stanley; data derived from Tradingview --- written by James Stanley, Senior Market Analyst, Global Macro
Wall Street expects a year-over-year decline in earnings on lower revenues when Honeywell International Inc. (HON - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of -67.3%.
Revenues are expected to be $5.01 billion, down 51.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 58.78% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Honeywell International?For Honeywell International, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Honeywell International will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Honeywell International would post earnings of $4.62 per share when it actually produced earnings of $4.90, delivering a surprise of +6.06%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Honeywell International doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results3M (MMM - Free Report) , another stock in the Zacks Diversified Operations industry, is expected to report earnings per share of $2.27 for the quarter ended June 2026. This estimate points to a year-over-year change of +5.1%. Revenues for the quarter are expected to be $6.38 billion, up 3.6% from the year-ago quarter.
The consensus EPS estimate for 3M has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.76%.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that 3M will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street expects a year-over-year increase in earnings on higher revenues when Union Pacific (UNP - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis railroad is expected to post quarterly earnings of $3.20 per share in its upcoming report, which represents a year-over-year change of +5.6%.
Revenues are expected to be $6.6 billion, up 7.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.22% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Union Pacific?For Union Pacific, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.34%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Union Pacific will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Union Pacific would post earnings of $2.85 per share when it actually produced earnings of $2.93, delivering a surprise of +2.81%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Union Pacific appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Transportation - Rail industry, CSX (CSX - Free Report) , is soon expected to post earnings of $0.5 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.6%. This quarter's revenue is expected to be $3.82 billion, up 6.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for CSX has been revised 0.9% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.31%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that CSX will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
RTX (RTX - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis an aerospace and defense company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +6.4%.
Revenues are expected to be $22.83 billion, up 5.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for RTX?For RTX, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.02%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that RTX will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that RTX would post earnings of $1.52 per share when it actually produced earnings of $1.78, delivering a surprise of +17.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
RTX appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways Morgan Stanley's second-quarter 2026 delivered record wealth and institutional revenues.Record $148B in net new assets showed workplace ties feeding the advisory pipeline.A 14.8% CET1 ratio supported buybacks, a 15% dividend hike and organic investment. Morgan Stanley’s (MS - Free Report) second-quarter 2026 call centered less on the earnings beat and more on how management sees the firm extending its advantage across wealth, institutional trading and advisory activity. The company reported EPS of $3.46, which topped the Zacks Consensus Estimate of $2.89. It generated revenues of $21.35 billion, beating the Zacks Consensus Estimate of $19.6 billion.
The bigger message was about durability. Executives framed the quarter as proof that the integrated model is gaining traction while client activity, IPO issuance and AI-related capital needs keep expanding.
MS Leans Harder on the Wealth FunnelChairman and CEO Ted Pick said Wealth and Investment Management client assets reached $10 trillion, including $8 trillion in stand-alone wealth assets, as the firm pushes to deepen relationships across adviser-led and E*TRADE channels. Chief financial officer Sharon Yeshaya said Wealth Management posted record revenues of $8.9 billion and pretax profit of $2.7 billion.
The key operating metric was net new assets. Yeshaya said Morgan Stanley gathered a record $148 billion in NNA, with stock plan IPO flows contributing just over half of that total, underscoring how workplace relationships are feeding the advisory pipeline.
In Q&A, a BofA Securities analyst pressed on whether workplace-driven flows are near a peak. Yeshaya argued the opportunity remains broad because the firm serves about 70% of the top 100 unicorns by market cap in its workplace pipeline and is still investing in referrals, product capabilities and adviser matching tools to improve retention and conversion.
Morgan Stanley Sees Broader Market ActivityInstitutional Securities delivered record revenues of $11 billion and pretax profit of $4.3 billion, helped by a standout equities franchise and a firmer investment-banking backdrop. Yeshaya said investment-banking revenues rose 58% year over year to $2.4 billion, with strength across advisory, equity underwriting and fixed income underwriting.
Equities revenues reached a record $6.3 billion, while fixed income produced $2.5 billion. Management tied that performance to stronger client engagement across regions, especially in Asia, as well as multiyear investments in technology, risk management and franchise scale.
When asked by KBW about pipeline depth, Yeshaya said activity is broadening beyond the Americas, with Asia and other regions building. Pick added that improving regulatory conditions, a healthier IPO market and pent-up strategic demand are creating a more favorable backdrop for both M&A and capital raising.
MS Keeps Investing While Holding Margin DisciplineYeshaya said the firm’s year-to-date efficiency ratio was 65%, with operating leverage offsetting higher execution-related costs and continued strategic spending. She said technology-led expense growth reflects infrastructure investment, AI-enabled efficiencies and business expansion.
Within wealth, the pretax margin was 30.5%. Asked whether that level can move structurally higher, Pick said management is not resetting targets midyear and is more focused on driving pretax profit growth than solving for a specific margin number.
That answer carried an important signal. Even after surpassing the 30% benchmark multiple times, management still appears willing to absorb near-term investment costs if they support wallet share gains and extend the runway for fee-based asset growth.
Morgan Stanley Ties AI to Advisory DemandPick used the call to sharpen a broader strategic theme around AI and geopolitics. He said enterprise AI adoption and a more fragmented global order are reshaping supply chains, capital allocation and client demand for advice.
In response to a Wells Fargo analyst, Pick said Morgan Stanley research now sees data-center capital spending reaching about $850 billion in 2026, $1.3 trillion in 2027 and potentially $1.5 trillion in 2028. He said that could leave the industry only 10% to 15% through a much longer AI investment cycle.
His point was not that Morgan Stanley can call the exact size of the cycle, but that the firm expects a meaningful role as adviser, underwriter and capital allocator as companies finance that build-out across private and public markets.
MS Defends Its Competitive Position in the WorkplaceA Wolfe Research analyst asked about rising competition from smaller RIAs in workplace solutions. Yeshaya argued Morgan Stanley’s moat starts with corporate coverage and the integrated-firm model, then extends through financial wellness tools, adviser matching and a broader product set.
She also drew a line between Morgan Stanley’s workplace capabilities and its investment-banking franchise. The firm’s ability to win IPO-related corporate relationships, she said, gives it access to asset flows that smaller competitors cannot easily replicate.
That exchange reinforced a recurring message from the quarter: management views the workplace not as a narrow channel, but as the top of a long-duration acquisition funnel that links corporate relationships, employee assets and advice-based retention.
Morgan Stanley Enters the Back Half With FlexibilityThe other major theme was balance-sheet strength. Morgan Stanley ended the quarter with a standardized CET1 ratio of 14.8%, repurchased $1.5 billion of stock and raised its quarterly dividend 15% to $1.15 per share.
Pick said excess capital gives the firm room to support clients, invest organically and consider selective bolt-on deals, though he emphasized that the bias remains toward organic deployment. The tone throughout the call was confident but disciplined, with management repeatedly stressing higher highs and higher lows through the cycle.
Zacks Signals for MSMS carries a Zacks Rank #3 (Hold) at present, along with a Value Score of D, Growth Score of B, Momentum Score of A and VGM Score of B. That mix points to stronger growth and momentum characteristics than value support, while the VGM Score suggests a relatively balanced profile across styles.
The strongest setups typically pair a Zacks Rank #1 (Strong Buy) or 2 (Buy) with A or B Style Scores, while a Zacks Rank #3 can still be held, but is a less favorable signal. The current rank can also change as earnings estimate revisions adjust following the quarter’s results and management commentary. You can see the complete list of today’s Zacks #1 Rank stocks here.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Intuit Inc. ("Intuit" or the "Company") (NASDAQ: INTU) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-07086, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Intuit securities during the Class Period, you have until September 8, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Intuit provides financial management, payments and capital, compliance, and marketing products and services in the United States. The Company has four reportable business segments: (i) Global Business Solutions; (ii) Consumer; (iii) Credit Karma; and (iv) ProTax. Intuit's Consumer segment provides do-it-yourself ("DIY") and assisted income tax preparation products and services under the "TurboTax" brand name, whereas its ProTax segment provides tax-preparation software products and electronic tax filing, payment, and related products and services. The Company sells its products and services through direct sales channels, multichannel shop-and-buy experiences, mobile application stores, and partner and other channels.
At all relevant times, Defendants touted purportedly significant "momentum" across Intuit's various business segments, particularly with respect to its tax-related business. Defendants attributed this purported "momentum" to, inter alia, Intuit's purportedly significant competitive advantages, including integration of artificial intelligence ("AI") in its business and operations.
For example, in August 2025, Defendants provided financial guidance for Intuit's fiscal full year ("FY") of 2026, ended July 31, 2026, including 8% revenue growth in its TurboTax business, citing "outstanding execution across our platform" and "breakthrough adoption in assisted tax" as a result of the aforementioned purported competitive advantages.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (ii) in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; (iii) accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on May 20, 2026, when, during pre-market hours, Reuters published an article entitled "Intuit to cut 17% of global jobs to streamline operations, memo shows". Citing an internal Company memorandum and email from Defendant Sasan K. Goodarzi ("Goodarzi"), Intuit's Chairman and Chief Executive Officer, to staff earlier in the day, the article reported that "Intuit . . . is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts[.]" The article further revealed that Intuit "is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo."
On this news, Intuit's stock price fell $15.78 per share, or 3.95%, to close at $383.93 per share on May 20, 2026.
The same day, during post-market hours, Intuit issued a press release announcing its fiscal third quarter ("Q3") 2026 results. Therein, Defendants reported weak Q3 2026 tax season revenue, including, inter alia, TurboTax revenue that grew by only 7% year-over-year, versus consensus estimates of at least 8% revenue growth. During the accompanying earnings call held the same day, also during post-market hours, Defendant Sandeep S. Aujla, Intuit's Executive Vice President and Chief Financial Officer, acknowledged that, with respect to TurboTax, "we did not have the overall tax season we expected[.]" On the same call, Defendant Goodarzi likewise stated that he was "dissatisfied with our performance", noting "[w]e faced pressure among the most price-sensitive DIY filers earning less than $50,000 a year", and that "[w]e lost on price." Defendant Goodarzi also revealed that TurboTax online paying units were expected to grow by only 2% as total Internal Revenue Service filers were expected to decline by approximately 30 basis points, representing the "most significant industry-wide contraction since the post-COVID tax season." Accordingly, Defendant Goodarzi acknowledged that "we expect TurboTax to grow 7% for the full year"—down from Defendants' prior guidance of 8% growth—and that, "[t]o reaccelerate this part of our business," Defendants will need to "evolve our business model by delivering the right lineups and price points to meet simple filers' needs at the low end and lean into the power of our broader Consumer platform to monetize beyond tax."
Following these disclosures, Intuit's stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Wall Street Reassessment: Analyst Opinion Evolution on INTU — Sell-Side Price Targets Significantly Reduced Following Intuit's TurboTax Growth Guidance Cut
, /PRNewswire/ -- SueWallSt alerts investors in Intuit Inc. (NASDAQ: INTU) of a pending securities class action filed on behalf of shareholders who purchased INTU securities between August 22, 2025 and May 20, 2026. Find out if you might be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
INTU shares fell $76.86 per share, a 20.02% single-day decline, closing at $307.07 on May 21, 2026, after the Company cut its full-year TurboTax revenue growth guidance to 7% from 8% and disclosed weak tax season results. The lead plaintiff deadline is September 8, 2026.
Initial Analyst Optimism
For much of the Class Period, coverage indicated confidence in Intuit's tax-related business and its AI-driven growth narrative. Sell-side price targets sat well above where shares would eventually land, with several firms carrying targets in the $600.00 range or higher as management reaffirmed 8% TurboTax growth.
The Downgrades Begin
After the May 20, 2026 disclosures, analysts noted a sharp reassessment. The lawsuit maintains that once TurboTax weakness surfaced, sell-side coverage turned negative and price targets were cut across the board.
Analyst Coverage Timeline
Susquehanna lowered its price target to $550.00 from $640.00, noting that while high-end assisted tax "looked great, the low-end fell apart" and could be sourced to a specific competitor. KeyBanc Capital Markets reduced its target to $450.00 from $520.00, citing "TurboTax DIY headwinds and a pricing evolution across TurboTax." RBC Capital Markets cut its target to $500.00 from $600.00, noting "TurboTax disappoints" and revised FY26 guidance of roughly 7% versus a prior 8%. Truist Securities lowered its target to $410.00 from $500.00, citing weakness in price-sensitive DIY filers earning under $50,000 and an unexpected 30 basis point contraction in IRS filers. At least one analyst pointed to "renewed fears around AI automation displacing tax software" as a driver of the after-hours decline. Why Analyst Shifts Matter for Investors
When coverage repriced INTU downward, it reflected a rapid gap between prior expectations and the results the Company ultimately reported. The complaint charges that this repricing tied directly to information investors were allegedly not told during the Class Period.
"When analyst expectations are based on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm. The resulting price target reductions reflected a significant shift in Wall Street's view of Intuit's TurboTax business following the Company's reduced guidance." -- Joseph E. Levi, Esq.
Click here to submit your information and learn more about the case or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the INTU Lawsuit
Q: What is the INTU class action lawsuit about? A: A securities class action has been filed against Intuit Inc. (NASDAQ: INTU) alleging materially false and misleading statements between August 22, 2025 and May 20, 2026. Shares fell approximately 20.02% after the Company disclosed weak tax season results and cut its full-year TurboTax revenue growth guidance to 7% from 8%. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: How much did INTU stock drop? A: Shares fell approximately 20.02%, a decline of $76.86 per share, after the Company disclosed weak Q3 2026 tax season results and reduced its TurboTax growth guidance. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.
Q: What is the INTU lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is September 8, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What if I already sold my INTU shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.
Q: What do INTU investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
NEW YORK--(BUSINESS WIRE)--Levi & Korsinsky, LLP alerts investors in Intuit Inc. (NASDAQ: INTU) of a pending securities class action on behalf of shareholders who purchased securities between August 22, 2025 and May 20, 2026. Find out if you may qualify to recover losses or contact Joseph E. Levi, Esq. at [email protected] | (212) 363-7500. INTU shares fell $76.86 per share, a 20.02% single-day decline, closing at $307.07 on May 21, 2026. The Court has set September 8, 2026 as the dea.
, /PRNewswire/ -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Intuit Inc. (NASDAQ: INTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/INTU.
Intuit Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:
they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; accordingly, Intuit's previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and as a result, Defendants' public statements were materially false and misleading at all relevant times. What's Next for Intuit Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/INTU. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Intuit you have until September 8, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Intuit Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Intuit Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Wall Street expects flat earnings compared to the year-ago quarter on higher revenues when Lockheed Martin (LMT - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis aerospace and defense company is expected to post quarterly earnings of $7.29 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $19.52 billion, up 7.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Lockheed?For Lockheed, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -4.74%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Lockheed will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Lockheed would post earnings of $6.67 per share when it actually produced earnings of $6.44, delivering a surprise of -3.45%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Lockheed doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerNorthrop Grumman (NOC - Free Report) , another stock in the Zacks Aerospace - Defense industry, is expected to report earnings per share of $6.84 for the quarter ended June 2026. This estimate points to a year-over-year change of -3.8%. Revenues for the quarter are expected to be $10.78 billion, up 4.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Northrop Grumman has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.22%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Northrop Grumman will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
It’s easy to forget about Broadcom (NASDAQ:AVGO | AVGO Price Prediction) as its momentum slows to a pace such that it can’t keep up with all of the “new new” AI stocks out there, from Elon Musk’s Space Exploration Technologies (NASDAQ:SPCX) to South Korean memory chip heavyweight SK Hynix (NASDAQ:SKHY). With more AI IPOs with potential to command valuations well north of the $1 trillion mark, 2026 really is the year of the mega AI IPO. And size doesn’t seem to be a limiting factor when it comes to growth in these early days of the AI boom.
Just because there are a lot of new and more exciting names in the mega-cap tech scene doesn’t mean it’s time to forget about the old firms that have been firing on all cylinders. Of course, these massive IPOs, with Anthropic on the way, are going to cause significant capital flows from elsewhere in the market.
Much of the capital could flow out of the wrong areas. Broadcom stands out as a terrific value for investors looking to play the other side of the trade, as investors rotate away from proven firms towards something that’s a bit more exciting.
Broadcom stock’s starting to get cheap again Now down more than 18% after suffering a quarterly result that saw AI guidance come in a bit lighter than expected, I do think there’s a golden opportunity in the AI bargain bin when it comes to Broadcom, especially after extending a long-term deal with Apple (NASDAQ:AAPL) — a firm that’s quietly rising up the ranks of AI with minimal spend.
Add uncertainties surrounding the rise of competitors, including Taiwan’s MediaTek, into the equation, and it feels like there are more exciting, less concerning names riding the AI tailwind to bet on these days.
Despite the growing list of reasons to sell or hold off on buying more, one big-name analyst over at Morgan Stanley (NYSE:MS) recently had encouraging things to say about the now-underperforming semiconductor stock, going as far as to call it a “core” AI winner. These are big words at a time when some Broadcom shareholders might be on the fence about whether or not it’s time to take gains after the weak relative performance in 2026.
Could $502 be in the cards? This pro seems to think so With a $502 price target, Morgan Stanley’s Joseph Moore sees “continued strength” while also noting that the narrative surrounding the “eventual displacement [from MediaTek for Google’s business] as premature.” I couldn’t agree more. While MediaTek ought to be on the radar, I still view Broadcom as having what it takes to keep moving at high speed.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
Looking into the second half, it’s going to be exciting to see how OpenAI’s Jalapeno inference chips do as the custom silicon effort picks up traction. As more hyperscalers allocate a greater portion of their budgets towards custom silicon in a bid to cut GPUs out of the equation, one has to think that Broadcom is positioned to land on its feet as the AI boom moves ahead.
Of course, Broadcom’s AI narrative might be nothing new, but it’s one that’s working and could overshoot expectations that were recently lowered following that post-earnings plunge earlier in the year.
Given Broadcom’s history of guiding fairly conservatively, I do like the firm’s chances as it looks to overdeliver after underpromising and being punished harshly for it, following a quarter that was actually quite decent.
The bottom line The custom silicon boom is still on the table, and as more firms get serious about investing in more efficient inference chips, perhaps the setup couldn’t be much better for Broadcom.
At this juncture, I view Joseph Moore’s $502 target, which entails close to 28% in upside from here, as entirely realistic.
At this juncture, the big question should be whether the firm can make a run past the $600 mark (a 52% gain), a level that some of the bigger bulls are setting their sights on. If VMWare powers margins and OpenAI’s Jalapeno is a hit, maybe investors will start bidding up the stock again as they look to diversify away from Google.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
SummaryBroadcom's multi-year AI partnerships with Apple, Meta, OpenAI and Google create durable revenue visibility through 2029-2031 with high switching costs.Apple extended its partnership through 2031 in a deal exceeding $30 billion, supporting over 15 billion U.S.-made chips and manufacturing expansion.Wall Street expects Q3 revenue to surge nearly 85% year over year to $29.43 billion, including almost $16 billion from AI semiconductors.Broadcom's diversified AI exposure across hyperscalers reduces customer concentration risk while strengthening its competitive moat and long-term earnings visibility.Premium valuation remains the key risk, as elevated expectations leave little room for execution missteps despite Broadcom's strong long-term fundamentals. MF3d/iStock via Getty Images
Investment Thesis Broadcom's (AVGO) multi-year partnership for the development of custom silicon and networking with companies like Apple, Meta, OpenAI and Google means that the company is integrated into customers' AI infrastructure, hence resulting in high switching costs
17.32K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AVGO over 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.
In its upcoming report, The Charles Schwab Corporation (SCHW - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.53 per share, reflecting an increase of 34.2% compared to the same period last year. Revenues are forecasted to be $6.84 billion, representing a year-over-year increase of 16.9%.
The current level reflects an upward revision of 2.2% 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.
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 use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Charles Schwab metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Net Revenues- Other' of $266.56 million. The estimate points to a change of +2.5% from the year-ago quarter.
Analysts expect 'Net Revenues- Bank deposit account fees' to come in at $313.67 million. The estimate indicates a year-over-year change of +27%.
Analysts forecast 'Net Revenues- Net interest revenue' to reach $3.28 billion. The estimate indicates a year-over-year change of +16.1%.
Analysts' assessment points toward 'Net Revenues- Asset management and administration fees' reaching $1.81 billion. The estimate indicates a year-over-year change of +15.4%.
The consensus among analysts is that 'Total client assets' will reach $12434.78 billion. The estimate is in contrast to the year-ago figure of $10757.30 billion.
The average prediction of analysts places 'Clients? Daily Average Trades (DATs)' at 9.84 million. Compared to the current estimate, the company reported 7.57 million in the same quarter of the previous year.
Analysts predict that the 'Average Interest Earning Assets' will reach $446.13 billion. The estimate is in contrast to the year-ago figure of $422.73 billion.
It is projected by analysts that the 'Average Client Assets - Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)' will reach $840.56 million. Compared to the present estimate, the company reported $661.79 million in the same quarter last year.
Based on the collective assessment of analysts, 'Average Client Assets - Total managed investing solutions' should arrive at $847.44 million. The estimate compares to the year-ago value of $715.93 million.
According to the collective judgment of analysts, 'Average Client Assets - Schwab money market funds' should come in at $702.69 million. Compared to the current estimate, the company reported $644.81 million in the same quarter of the previous year.
The consensus estimate for 'Average Client Assets - Mutual Fund OneSource and other no-transaction-fee funds' stands at $467.70 million. Compared to the present estimate, the company reported $350.49 million in the same quarter last year.
The combined assessment of analysts suggests that 'Assets in client accounts - Fixed income securities' will likely reach $810.91 billion. Compared to the present estimate, the company reported $788.00 billion in the same quarter last year.
View all Key Company Metrics for Charles Schwab here>>>
Over the past month, Charles Schwab shares have recorded returns of +8.8% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #1 (Strong Buy), SCHW will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Fastenal Company (NASDAQ:FAST) on Tuesday reported in-line earnings for the second quarter.
Earnings per share of 33 cents were in line with analyst expectations, while sales rose 14.7% year over year to $2.387 billion, beating the $2.338 billion estimate.
The company continues to expect 2026 capital spending of $310 million to $330 million. It now expects Digital Footprint sales to represent 63%–64% of annual sales and targets 27,000–29,000 weighted device signings.
Management said broader market conditions continued to improve, while it remained focused on pricing neutrality and managing the effects of tariffs.
Fastenal shares rose 2.8% to trade at $46.64 on Thursday.
These analysts made changes to their price targets on Fastenal following earnings announcement.
Barclays analyst Guy Hardwick maintained the stock with an Equal-Weight rating and lowered the price target from $47 to $46. Morgan Stanley analyst Chris Snyder maintained Fastenal with an Equal-Weight rating and raised the price target from $48 to $52. Considering buying FAST stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
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.
It also includes access to 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 ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
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.
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: Republic Services (RSG - Free Report) Republic Services is a leading provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. As of Dec 31, 2024, the company operated through 367 collection operations, 248 transfer stations, 208 active landfills, 75 recycling centers, two treatment, recovery and disposal facilities, 23 treatment, storage and disposal facilities, 14 deep injection wells, 1 polymer center and 5 saltwater disposal wells, across the United States and Canada.
RSG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Business Services stock. RSG has a Momentum Style Score of A, and shares are up 4.8% over the past four weeks.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $7.29 per share. RSG boasts an average earnings surprise of +5.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RSG should be on investors' short list.
, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE:ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced Aalo Atomics, the company building fully modular nuclear plants to power modern AI data centers, has selected Rockwell as the control platform provider for its Aalo-X test reactor.
Aalo Atomics' Aalo-X test reactor, supported by Rockwell Automation's control platform technology. Photo credit: Aalo Atomics The collaboration supports Aalo's participation in the U.S. Department of Energy Reactor Pilot Program, an initiative to accelerate the development, authorization and validation of advanced nuclear technologies. Aalo reached criticality on its pilot reactor two weeks ago, ahead of its July 4, 2026, deadline, marking a significant milestone for next-generation nuclear deployment in the United States.
Rockwell Automation provides integrated control and information solutions, including its ControlLogix® platform, to support reactor operations, system reliability and accelerated development timelines. The platform is designed to deliver safe, scalable control for a first-of-its-kind reactor system across the full lifecycle, from design to operation.
"This collaboration highlights the growing need for proven industrial control systems to enable new energy technologies at scale," said Brian Holte, VP, Global Industry Sales at Rockwell Automation. "By supporting Aalo's path to first criticality, we're demonstrating how flexible, resilient platforms can accelerate the commercialization of advanced reactor designs."
Aalo's Aalo-X test reactor serves as a testbed for rapid innovation in modular reactor technology, allowing real-world validation of system performance and operational readiness. Through the DOE pilot program, Aalo has demonstrated a streamlined pathway to advance next-generation nuclear capabilities in a live environment.
"Rockwell brings deep expertise in mission-critical control systems that are essential for achieving our accelerated program milestones," said Yasir Arafat, President & CTO, Aalo Atomics. "Having a trusted automation partner is key to executing safely and efficiently and will help us pave the way towards commercial power."
The project positions Rockwell as a key enabler of emerging nuclear technologies and reinforces its role in supporting energy transition efforts through advanced automation and digital solutions. The companies will continue to collaborate as the program advances, with the Aalo-X test reactor serving as a foundation for future commercial deployments.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com
About Aalo Atomics
Aalo Atomics is developing next-generation small modular reactor technologies designed to enable safe, scalable and cost-effective nuclear energy. Through participation in the U.S. Department of Energy Reactor Pilot Program, Aalo advances rapid reactor development and testing to support the future of clean energy.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The 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 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 ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Rockwell Automation (ROK - Free Report) Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a wide network spanning more than 100 countries. The United States generates around 50% of the company’s total sales. Outside the United States, the company’s primary markets are Canada, China, Mexico, Italy, and the United Kingdom.
ROK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. ROK has a Momentum Style Score of A, and shares are up 0.7% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.26 to $13.06 per share. ROK also boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROK should be on investors' short list.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers 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 like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
It can be very profitable to buy stocks with rising earnings estimates, as stock prices respond to revisions. By adding Focus List stocks, there's a great chance you'll be getting into companies whose future earnings estimates will be raised, which can lead to price momentum.
Focus List Spotlight: Prologis (PLD - Free Report) Prologis, Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on the efficient movement of goods through the global supply chain.
PLD, a #2 (Buy) stock, was added to the Focus List on June 3, 2020 at $95.46 per share. Since then, shares have increased 50.24% to $143.42.
For fiscal 2026, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased to $6.17. PLD boasts an average earnings surprise of 2.1%.
Earnings for PLD are forecasted to see growth of 6.2% for the current fiscal year as well.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Prologis (PLD - Free Report) came out with quarterly funds from operations (FFO) of $1.63 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to FFO of $1.46 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +6.54%. A quarter ago, it was expected that this industrial real estate developer would post FFO of $1.48 per share when it actually produced FFO of $1.5, delivering a surprise of +1.35%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
Prologis, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $2.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.68%. This compares to year-ago revenues of $2.03 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
Prologis shares have added about 12.4% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for Prologis?While Prologis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Prologis was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $1.57 on $2.16 billion in revenues for the coming quarter and $6.17 on $8.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, InvenTrust Properties Corp. (IVT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.
This company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +11.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
InvenTrust Properties Corp.'s revenues are expected to be $79.56 million, up 8.2% from the year-ago quarter.
Omega Healthcare (OHI) is a structurally advantaged healthcare REIT focused on skilled nursing and senior-care facilities, rated Buy for double-digit AFFO growth prospects. OHI benefits from an aging population, diversified operator base, and long lease terms, positioning it for sustained demand and rental income growth. Recent AFFO guidance was raised, with Q2 expectations for a 9% y/y AFFO/share increase and a consistent track record of modest quarterly beats.
Key Takeaways AvalonBay entered Q2 with occupancy above 96% and improving leasing momentum across its markets.AVB benefited from strong demand, low turnover and firmer renewal pricing as new supply slowed.Higher interest expense is expected to rise 8.9% in Q2, offsetting some operating improvements. AvalonBay Communities, Inc. (AVB - Free Report) , a leading real estate investment trust (“REIT”) specializing in the development, acquisition and management of multifamily properties, is set to announce its second-quarter 2026 results after the closing bell on July 22.
In the last reported quarter, this residential REIT delivered a positive surprise of 1.07% in terms of core funds from operations (“FFO”) per share. Results reflected higher same-store occupancy at 96.1%, underscoring steady demand heading into the peak leasing season. However, higher interest expenses undermined the performance to an extent.
Over the past four quarters, AvalonBay’s earnings surpassed the Zacks Consensus Estimate on three occasions and missed on the other. The graph below depicts the surprise history of the company:
As we approach the release of AvalonBay's second-quarter 2026 earnings report, it is important to examine how this residential REIT is likely to have performed amid the current market conditions.
U.S. Apartment Market in Q2The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth.
According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory.
Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin, Charleston, Savannah, Huntsville, Salt Lake City and Colorado Springs recorded some of the largest quarterly vacancy declines.
Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, Toledo, Reno and Boise also posted strong gains.
High-supply markets remained softer, with rents still declining in Austin and Sarasota, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink.
Factors to Consider Ahead of AVB's Q2 ResultsAgainst this improving industry backdrop, AvalonBay is expected to benefit from healthy occupancy, resilient demand and stronger pricing power in its predominantly coastal markets.
The company reported same-store residential occupancy of 96.1% in the first quarter, and occupancy remained above 96% entering the peak leasing season. Asking rents have increased in the high-4% range since the beginning of the year, supported by low resident turnover and a limited number of available units. Leasing trends also strengthened through the quarter, with April blended rent growth approaching 2% and renewal offers during May and June ranging between 5% and 5.5%.
A favorable supply environment should remain a key tailwind. New apartment deliveries across AvalonBay's core markets are projected to have remained near historically low levels, while elevated homeownership costs continue to keep many households in the rental market, limiting move-outs and supporting occupancy. In addition, recently completed development communities are expected to have contributed meaningfully to property-level earnings as leasing activity accelerates.
However, elevated borrowing costs remain a headwind. Higher interest expenses are likely to have partially offset operating gains, with our estimate calling for an 8.9% year-over-year increase in interest expense during the second quarter of 2026.
Projections for AVBWe expect second-quarter same-store revenues to increase 1.7% year over year, while same-store net operating income is estimated to have grown marginally. Physical occupancy is expected at 96.2%.
The Zacks Consensus Estimate of $778.72 million for second-quarter revenues indicates a 2.44% year-over-year increase. For the second quarter of 2026, the company projected core FFO per share in the range of $2.72-$2.82.
Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly core FFO per share has remained unchanged at $2.80 over the past two months. It implies a year-over-year marginal decline.
Here Is What Our Quantitative Model Predicts for AVB:Our proven model does not conclusively predict a beat in terms of FFO per share for AvalonBay this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
AvalonBay currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — SL Green Realty (SLG - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
SL Green is slated to report quarterly numbers on July 22. SLG has an Earnings ESP of +7.20% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Roblox Corporation ("Roblox" or the "Company") (NYSE: RBLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Roblox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 7, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Roblox securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On April 30, 2026, Roblox announced its 2026 first quarter results, allegedly reporting declines in revenue guidance and projected annual bookings growth, as well as reductions in communication engagement, app store ratings, and organic sign-ups as a result of the rollout of the Company's age-verification process.
On this news, Roblox's stock price fell more than 18%, damaging investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SAN MATEO, Calif.--(BUSINESS WIRE)--Roblox Corporation (NYSE: RBLX) today announced Build, a new mobile-first creation tab within the Roblox app, and a new suite of AI-powered tools for creators of every level. Build allows anyone to turn a text prompt into a basic game directly in the Roblox app. A creator could type: "Let's make a cozy adventure game set in a dense forest with environmental obstacles." Build would then create a playable starting point for the creator to iterate on, playtest,.
Key Takeaways PPG launched Aeroview, a web-based tool for customizing and visualizing aircraft paint colors.The platform offers real-time colors and 3D renderings across a range of aircraft models.Users can save, share and archive designs while speeding approvals and supporting maintenance planning. PPG Industries, Inc. (PPG - Free Report) has launched the PPG Aeroview virtual aircraft painter, a web-based digital tool that enables business and general aviation customers to customize aircraft paint colors by helping visualize with precision and ease. The tool allows users to choose from a range of aircraft models and apply colors from PPG's library in real time.
Currently available for U.S. aerospace coatings products, the platform is designed to improve visibility and accessibility of PPG's aerospace coatings while reducing dependence on traditional physical color brochures. It offers 3D renderings that help designers, fleet managers, maintenance planners and aviation enthusiasts to select aircraft coatings with confidence.
According to PPG, the Aeroview virtual aircraft painter can help reduce design uncertainty, minimize costly repaint errors and speed up project approvals. Users can also save, share and archive designs for future reference or maintenance planning. The platform integrates with PPG LiveryLab Studio, which supports the livery design service.
PPG’s shares have lost 0.6% over the past year against the industry’s 3.9% growth.
Image Source: Zacks Investment Research
PPG’s Zacks Rank & Other Key PicksPPG currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Kronos Worldwide, Inc. (KRO - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Albemarle Corporation (ALB - Free Report) .
While KRO and CRS sport a Zacks Rank #1 (Strong Buy) at present, ALB carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KRO’s 2026 loss is pinned at 33 cents per share, indicating a 65.63% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the rest. KROshares have gained 3.8% over the past year.
The Zacks Consensus Estimate for CRS’ 2026 earnings is pegged at $10.56 per share, indicating a rise of 41.18% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.95%.
The Zacks Consensus Estimate for ALB’s current fiscal-year earnings is pinned at $13.06 per share, indicating a 1,753% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing it in one, with an average surprise of 74.5%. ALB’s shares have gained 64.7% over the past year.
PITTSBURGH--(BUSINESS WIRE)--The Board of Directors of PPG (NYSE:PPG) today approved a 3-cents-per-share increase in the company's dividend, declaring a regular quarterly dividend of 74 cents per share, payable Sept. 11 to shareholders of record Aug. 10. This marks the company's 512th consecutive dividend payment. Through the ongoing dedication and engagement of its workforce, the company has paid uninterrupted annual dividends since 1899. “We are proud of our heritage of rewarding shareholders.
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 includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To 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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Nucor (NUE - Free Report) Headquartered in Charlotte, NC, Nucor Corporation is a leading producer of structural steel, steel bars, steel joists, steel deck and cold finished bars in the United States. It also produces direct reduced iron (“DRI”) that is used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Also, most of its operating facilities and customers are located in North America.
NUE is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.4; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.32 to $17.68 per share. NUE boasts an average earnings surprise of +8.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, NUE should be on investors' short list.
Analysts on Wall Street project that Chubb (CB - Free Report) will announce quarterly earnings of $6.60 per share in its forthcoming report, representing an increase of 7.5% year over year. Revenues are projected to reach $15.89 billion, increasing 7.3% from the same quarter last year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% 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 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.
Bearing this in mind, let's now explore the average estimates of specific Chubb metrics that are commonly monitored and projected by Wall Street analysts.
The combined assessment of analysts suggests that 'Net premiums written- North American Personal P&C Insurance' will likely reach $2.04 billion. The estimate suggests a change of +5.3% year over year.
It is projected by analysts that the 'Adjusted Net investment income- Overseas General Insurance' will reach $308.52 million. The estimate suggests a change of +11% year over year.
Analysts expect 'Adjusted Net investment income- Global Reinsurance' to come in at $95.41 million. The estimate suggests a change of +12.2% year over year.
Based on the collective assessment of analysts, 'Net premiums written- Total P&C' should arrive at $13.01 billion. The estimate indicates a change of +5% from the prior-year quarter.
The consensus among analysts is that 'Loss and loss expense ratio' will reach 58.5%. Compared to the present estimate, the company reported 59.0% in the same quarter last year.
According to the collective judgment of analysts, 'Combined ratio' should come in at 85.6%. Compared to the present estimate, the company reported 85.6% in the same quarter last year.
The collective assessment of analysts points to an estimated 'North America Agricultural Insurance - Combined ratio' of 89.3%. Compared to the current estimate, the company reported 89.1% in the same quarter of the previous year.
Analysts predict that the 'North America Agricultural Insurance - Loss and loss expense ratio' will reach 82.1%. Compared to the current estimate, the company reported 80.8% in the same quarter of the previous year.
The average prediction of analysts places 'North America Commercial P&C Insurance - Combined ratio' at 84.9%. Compared to the present estimate, the company reported 83.5% in the same quarter last year.
The consensus estimate for 'North America Commercial P&C Insurance - Loss and loss expense ratio' stands at 64.0%. The estimate is in contrast to the year-ago figure of 62.9%.
Analysts' assessment points toward 'Overseas General Insurance - Combined ratio' reaching 87.2%. Compared to the present estimate, the company reported 90.3% in the same quarter last year.
Analysts forecast 'Overseas General Insurance - Loss and loss expense ratio' to reach 51.2%. Compared to the current estimate, the company reported 54.2% in the same quarter of the previous year.
View all Key Company Metrics for Chubb here>>>
Over the past month, Chubb shares have recorded returns of +2.9% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #3 (Hold), CB 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 >>>> .
State Street Corporation (STT - Free Report) came out with quarterly earnings of $3.65 per share, beating the Zacks Consensus Estimate of $3.3 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.61%. A quarter ago, it was expected that this company would post earnings of $2.6 per share when it actually produced earnings of $2.84, delivering a surprise of +9.23%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
State Street, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $4.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.95%. This compares to year-ago revenues of $3.45 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
State Street shares have added about 44.6% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for State Street?While State Street has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for State Street was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.41 on $3.91 billion in revenues for the coming quarter and $12.75 on $15.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Northern Trust Corporation (NTRS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 22.
This company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +25.8%. The consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level.
Northern Trust Corporation's revenues are expected to be $2.2 billion, up 10.1% from the year-ago quarter.
State Street has surged ~80% in the past year, driven by cost discipline, market appreciation, and a favorable rate environment. Q2 earnings exceeded expectations, with revenue up 17% and EPS at $3.65, but shares dipped post-earnings amid valuation concerns. STT's fee revenue growth lags AUC due to compression, but strong ETF flows, FX trading, and securities lending offset weaknesses in software services.
State Street Corporation (STT - Free Report) reported $4.05 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 17.4%. EPS of $3.65 for the same period compares to $2.53 a year ago.
The reported revenue represents a surprise of +3.95% over the Zacks Consensus Estimate of $3.89 billion. With the consensus EPS estimate being $3.30, the EPS surprise was +10.61%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how State Street performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Basel III Advanced Approaches - Tier 1 Leverage Ratio: 5.3% versus the three-analyst average estimate of 5.4%.Net interest margin (FTE): 1.1% versus 1.1% estimated by three analysts on average.Average balance - Total interest-earning assets: $305.41 billion compared to the $294.79 billion average estimate based on two analysts.Basel III Standardized Approach - Tier 1 capital ratio: 13.2% versus 13.9% estimated by two analysts on average.Assets under Management (AUM): $6,278.00 billion versus $6,182.00 billion estimated by two analysts on average.Net Interest Income: $860 million versus the three-analyst average estimate of $833.83 million.Total fee and other revenue: $3.19 billion compared to the $3.06 billion average estimate based on three analysts.Net Interest Income - fully taxable-equivalent basis: $860 million compared to the $833.83 million average estimate based on three analysts.Software services: $166 million versus $177.62 million estimated by two analysts on average.Other fee revenue: $138 million versus the two-analyst average estimate of $116 million.Management fees: $772 million versus the two-analyst average estimate of $747.55 million.Servicing fees: $1.47 billion versus $1.48 billion estimated by two analysts on average.View all Key Company Metrics for State Street here>>>
Shares of State Street have returned +9.1% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways State Street beat Q2 earnings estimates as record revenues, AUC/A and AUM supported strong results.STT's fee revenues rose 17.2% y/y and NII increased 18%, while no credit-loss provision boosted earnings.State Street's AUC/A reached a record $57.86T and AUM hit $6.28T, driven by market gains and inflows. State Street’s (STT - Free Report) second-quarter 2026 earnings of $3.65 per share surpassed the Zacks Consensus Estimate of $3.30. The bottom line increased 68.2% from the prior-year quarter.
Results were aided by year-over-year growth in net interest income (NII) and fee revenues, along with nil provisions. Also, the company witnessed improvements in the total assets under custody and administration (AUC/A) and assets under management (AUM) balances to record levels. However, higher expenses acted as a spoilsport.
Net income available to common shareholders (GAAP basis) was $1.03 billion, surging 62.9% from the year-ago quarter.
STT’s Revenues Improve, Expenses RiseTotal revenues were a record $4.05 billion, which increased 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $3.89 billion.
NII was $860 million, up 18% year over year.
The net interest margin expanded 17 basis points year over year to 1.13%.
Total fee revenues increased 17.2% year over year to $3.19 billion. The rise was driven by an increase in all fee income components, except for software services fees.
Non-interest expenses were $2.66 billion, up 5.1% from the prior-year quarter. The rise was due to an increase in all cost components, except for occupancy costs.
The company did not record any provision for credit losses in the quarter, as against $30 million in the prior-year quarter.
The Common Equity Tier 1 ratio was 10.8% as of June 30, 2026, compared with 10.7% in the corresponding period of 2025. The return on average common equity was 16.7% compared with 10.8% in the year-ago quarter.
Asset Balances Increase for State Street to Record LevelsAs of June 30, 2026, the total AUC/A was a record $57.86 trillion, up 18.1% year over year. The rise was driven by higher quarter-end equity market levels, client flows and net new business.
AUM was a record $6.28 trillion, up 22.7% year over year, led by higher quarter-end market levels and net inflows.
STT’s Share Repurchase UpdateIn the reported quarter, State Street repurchased shares worth $400 million.
Our Take on State StreetSTT’s strategic buyouts, rising AUM balance and solid business servicing wins are expected to keep supporting its financials. However, persistently rising expenses and concentrated fee-based revenues are concerning.
State Street currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other BanksThe Bank of New York Mellon Corporation’s (BNY - Free Report) second-quarter 2026 adjusted earnings of $2.46 per share handily surpassed the Zacks Consensus Estimate of $2.20. The bottom line increased 26.8% from the year-ago quarter.
BNY’s results primarily benefited from a rise in fee revenues and NII. Also, the company recorded a provision benefit in the quarter, which was a tailwind.
Bank of America’s (BAC - Free Report) second-quarter 2026 earnings of $1.21 per share handily surpassed the Zacks Consensus Estimate of $1.13. The bottom line grew 34.4% year over year.
BAC recorded an improvement in trading numbers for the 17th straight quarter. The company’s investment banking performance was solid this time as well. These, along with higher NII, drove Bank of America’s total revenues. While provisions declined in the quarter on a year-over-year basis, non-interest expenses increased, which hurt the results to some extent.
Key Highlights ONDO’s value increased approximately 5% following the announcement of Ondo Finance’s involvement in DTCC’s historic tokenization project The platform introduced the first tokenized equity representations supported by DTC tokenized entitlements Major collaborators include BlackRock, J.P. Morgan, Goldman Sachs, Nasdaq, and the New York Stock Exchange Trading volume surged 51.7% in a single day coinciding with the price appreciation Critical resistance levels are positioned around $0.336, with higher targets at $0.70 and $1.12 Ondо Finance revealed its launch of the inaugural tokenized equity representations utilizing DTC tokenized entitlements. This development propelled the ONDO token upward by approximately 5% within a 24-hour period while simultaneously boosting daily trading activity by 51.7%.
Ondo Price This project forms a critical component of the DTCC Tokenization Service. The Depository Trust & Clearing Corporation handled approximately $4.7 quadrillion worth of U.S. securities transactions throughout 2025, establishing its role as the fundamental infrastructure for U.S. post-trade operations.
We’re excited to announce that Ondo has launched the first tokenized stock representations based on DTC tokenized entitlements to DTC-held securities generated through the DTCC Tokenization Service.
The Depository Trust & Clearing Corporation (DTCC) is the premier post-trade… pic.twitter.com/r7KcGmDqa9
— Ondo Finance (@OndoFinance) July 15, 2026
Ondо Finance now stands among distinguished partners including BlackRock, J.P. Morgan, Goldman Sachs, Nasdaq, and the New York Stock Exchange. According to the firm, this represents DTCC’s most expansive tokenization undertaking to date.
Ian De Bode, the company’s CEO, stated: “Ondo is the only company simultaneously building all pathways for US securities tokenization. Today’s initiative with DTCC demonstrates that Ondo Stocks infrastructure is purpose-built to interoperate with institutional market infrastructure, not to compete with it.”
Through Ondo’s infrastructure, tokenized entitlements connected to securities like CRCL and SPY function as digital equivalents supporting CRCLon and SPYon. These digital assets enable seamless transitions between conventional and tokenized structures.
This framework enhances versatility and unlocks fresh liquidity channels throughout exchanges, digital wallets, and decentralized finance ecosystems.
Technical Analysis Insights ONDO rebounded from a significant upward trendline and recovered toward its 50-day exponential moving average. A decisive breakthrough above this threshold might pave the way toward $0.70, with potential extension to $1.12 if momentum continues.
Conversely, inability to overcome the EMA could retest the ascending trendline support. Breaking below that support zone would leave the token vulnerable to additional downward pressure.
A descending triangle formation has emerged on the daily timeframe. While the $0.31 area has provided support since June, bulls have encountered difficulty surpassing the $0.336 local resistance barrier.
Both the Chaikin Money Flow and On-Balance Volume metrics have failed to validate sustained accumulation. This creates a somewhat uncertain technical outlook despite the favorable fundamental developments.
Expert Commentary Cryptocurrency analyst Michaël van de Poppe, recognized on X as @CryptoMichNL, mentioned he had been monitoring ONDO for multiple weeks. He acknowledged the DTCC collaboration news and observed that ONDO had gained 18% during the day when he posted. Van de Poppe expressed confidence that the rally would continue and anticipated additional upward movement.
Currently, the $0.343 price point, which corresponds to the 50% retracement level, represents the crucial threshold separating premium and discount territories for swing trading strategies.
Ondo Finance has launched the first tokenized equity representations utilizing DTC tokenized entitlements, driving ONDO’s price up approximately 5% within a single day and sparking a surge in trading volume by 51.7%.
Ondo participates in DTCC’s landmark tokenizationThe rollout marks Ondo Finance’s role in the Depository Trust & Clearing Corporation’s (DTCC) Tokenization Service, which is considered a cornerstone for post-trade processing in U.S. financial markets. DTCC processed around $4.7 quadrillion in U.S. securities transactions during 2025, reinforcing its position as the essential clearing institution for Wall Street.
With this development, Ondo Finance is now collaborating alongside leading financial players, including BlackRock, J.P. Morgan, Goldman Sachs, Nasdaq, and the New York Stock Exchange. This initiative is recognized as DTCC’s most expansive tokenization effort to date.
Through Ondo’s infrastructure, tokenized entitlements connected to assets such as CRCL and SPY serve as digital equivalents, supporting instruments known as CRCLon and SPYon. Investors can use these to move assets between traditional holdings and blockchain-based representations securely and efficiently.
Mini dictionary: DTCC (Depository Trust & Clearing Corporation) is a US-based financial services company that provides post-trade clearing and settlement for the US securities industry, ensuring that transactions between buyers and sellers are completed smoothly and efficiently.
Ian De Bode, CEO of Ondo Finance, stated that Ondo is uniquely constructing all pathways for US securities tokenization, emphasizing that the new initiative with DTCC demonstrates its infrastructure is designed for interoperability with institutional market frameworks.
The introduction of tokenized equities and entitlements is expected to boost flexibility across exchanges and digital wallets, as well as open new liquidity channels for decentralized finance participants.
ProjectMain RoleKey PartnersOndo FinanceTokenized equity platformBlackRock, J.P. Morgan, Goldman Sachs, Nasdaq, NYSEDTCCUS post-trade clearing and settlementAll major Wall Street firmsPrice action and technical outlookFollowing the announcement, ONDO rebounded from an uptrend line to approach its 50-day exponential moving average (EMA). Market analysts suggest that a sustained move above this level could pave the way toward targets of $0.70 and possibly $1.12. However, resistance remains at $0.336, with the $0.31 support level signaling the lower boundary of a descending triangle chart pattern.
Michaël van de Poppe, a market analyst recognized on X as @CryptoMichNL, noted the surge in ONDO’s value after the DTCC partnership was made public. He highlighted that ONDO had climbed 18% on the day and said he expected further gains ahead.
Despite bullish fundamental drivers, technical indicators such as Chaikin Money Flow and On-Balance Volume have not shown clear signs of sustained accumulation, adding a layer of uncertainty to the short-term outlook.
Currently, the $0.343 price level—which represents the 50% Fibonacci retracement—acts as the dividing line between premium and discount areas for short-term strategies.
Outlook for tokenization and ONDOOndo Finance, a platform focused on bridging traditional assets and blockchain-based solutions, is positioning itself at the forefront of the tokenization trend in U.S. securities. With support from major Wall Street institutions and the rollout of live products, industry observers are watching closely to see how price momentum and adoption unfold in the months ahead.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Ondo (ONDO) climbed to a one-month high after a sharp rally driven by the debut of the first tokenized stocks backed by DTC Tokenized Entitlements.
The altcoin surged as much as 17% over the past 24 hours to an intraday high of $0.37. This marked its strongest level since June 18.
The rally also propelled ONDO to the top of CoinGecko’s list of the day’s biggest cryptocurrency gainers. The surge stood out against a flat market, with Bitcoin (BTC) little changed over the same period.
Ondo (ONDO) Price Performance. Source: BeInCrypto MarketsFollow us on X to get the latest news as it happens
Ondo Debuts First DTC-Backed Tokenized StocksOndo’s tokenized stocks are backed by DTC Tokenized Entitlements to securities held at The Depository Trust Company (DTC). The design ties on-chain tokens directly to shares inside Wall Street’s core custody system.
The company called it a first for tokenized equities. The tokens represent Circle (CRCL) stock and the SPDR S&P 500 ETF (SPY) on-chain. Ondo issues them as CRCLon and SPYon, each fully backed by the underlying security.
“Under this model, DTC tokenized entitlements to DTC-held securities are generated through the DTCC Tokenization Service, and the DTC Tokenized Entitlements associated with CRCL and SPY serve as digital twins of the securities underlying existing CRCLon and SPYon tokens (Ondo’s tokenized versions of the stocks),” the team explained.
Ondo is connected to the DTC participant network through Alpaca Markets. The underlying shares stay within DTC custody throughout the process, according to the firm.
“Ondo joins more than a dozen leading TradFi and DeFi firms — including BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and NYSE — participating in DTCC’s largest tokenization initiative to date, representing an important step toward the broader adoption of tokenized securities,” the blog read.
How Ondo’s Tokenized Stocks Work. Source: OndoDTCC’s Tokenization Push Gains TractionThe launch comes as the Depository Trust & Clearing Corporation (DTCC) completed the tokenization of assets held at The Depository Trust Company. More than 30 firms participated in the initiative.
The transactions covered collateral pledges, securities lending, and equity settlements. DTCC ran them across its private HyperLedger Besu network and the public Canton network.
The platform plans to launch its full tokenization service in October 2026. That milestone arrived seven months after the SEC granted DTC a No-Action Letter to tokenize custodied assets.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
