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Agility Robotics’ SPAC Deal Opens a Rare Door Into Humanoid AIMorgan Stanley NYSE: MS reported record second-quarter 2026 results, with executives citing strong client activity across institutional securities, wealth management and investment management, as well as continued benefits from the firm’s integrated business model.

Chairman and Chief Executive Officer Ted Pick said the firm generated more than $21 billion in quarterly revenue and earnings per share of $3.46, contributing to what he called an “exceptional first half” of 2026. Chief Financial Officer Sharon Yeshaya said second-quarter revenue was $21.3 billion, return on tangible common equity was 26.6%, and the firm’s year-to-date efficiency ratio was 65%.

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3 Top Financial Institutions Announce Over $70 Billion in Share RepurchasesAcross wealth and investment management, total client assets reached $10 trillion, a strategic milestone Pick said the firm had fulfilled. He said Morgan Stanley is seeking over time to grow standalone wealth assets from the current $8 trillion to $10 trillion.

Institutional Securities Posts Record Revenue Morgan Stanley’s institutional securities segment delivered record revenue of $11 billion and record pre-tax profit of $4.3 billion, according to Yeshaya. She said results were driven by the firm’s equities franchise and supported by investment banking.

Robinhood Wants a Bigger Role in IPOs—Here's Why It MattersInvestment banking revenue rose 58% from the prior year to $2.4 billion, reflecting stronger activity across advisory, equity underwriting and fixed income underwriting. Advisory revenue increased to $798 million on higher completed activity, with contributions across industrials, technology and healthcare. Equity underwriting revenue was $851 million, supported by what Yeshaya described as a robust IPO market and strong follow-on and convertible activity. Fixed income underwriting revenue reached a record $788 million, driven by bond issuance from both investment-grade and non-investment-grade companies.

Yeshaya said the investment banking outlook remains “constructive,” with healthy pipelines and broad-based client dialogue. While year-to-date activity has been led by the Americas, she said global activity is building.

Equities revenue reached a record $6.3 billion, with increases across products and regions. Yeshaya said Asia was strong, with activity broadening across the region. Prime brokerage revenue rose from the prior year on higher average client balances and strong activity in Asia, while cash equities benefited from active client engagement and higher market volumes in the Americas. Derivatives results were also described as very strong.

Fixed income revenue was $2.5 billion. Yeshaya said macro results were roughly flat from the prior year, as resilience in rates offset weaker foreign exchange activity in an environment where volatility traded near historic lows. Micro results increased year over year, driven by credit corporates, primary issuance and growth in securitized product lending balances.

Wealth Management Benefits From IPO-Related Flows Wealth management generated record revenue of $8.9 billion and pre-tax profit of $2.7 billion, with a pre-tax margin of 30.5%. Total client assets in the business stood at $8 trillion.

The business recorded $148 billion in net new assets, which Yeshaya said was a record. Fee-based flows were $39 billion, and fee-based assets totaled $3 trillion. Stock plan IPO flows represented just over half of overall net new assets during the quarter, more than offsetting seasonal tax-related outflows.

Yeshaya said the results demonstrated the strength of Morgan Stanley’s workplace channel and the firm’s client acquisition funnel. She said the firm has relationships with about 70% of the top 100 unicorns by market capitalization in its workplace pipeline and now has 20 million “touch points” through workplace and related client relationships.

In response to analyst questions, Yeshaya said workplace-related flows will vary by IPO timing, vesting schedules and other factors. She emphasized that the firm is focused on retaining clients who enter through the workplace channel and moving them toward advice-based relationships where appropriate.

Pick said the wealth management margin has exceeded 30% several times, but added that management is not “solving for” a particular margin number. Instead, he said the firm is focused on driving pre-tax profit growth while continuing to invest in areas that support long-term wallet share gains.

Wealth management net interest income increased to $2.3 billion, supported by higher-than-expected sweep balances and strong loan growth. Yeshaya said the firm expects a modest sequential increase in net interest income in the third quarter.

Investment Management Reaches $2 Trillion in AUM Investment management assets under management reached a record $2 trillion. The segment reported $1.6 billion in revenue, up 6% from the prior year, driven by higher asset management and related fees tied to higher average AUM.

Long-term net inflows were $7.5 billion in the quarter, led by alternatives and solutions, including Parametric, as well as fixed income strategies. Yeshaya said Parametric remains a key differentiator for Morgan Stanley, with more than $760 billion in AUM.

Capital Position Supports Buybacks and Dividend Increase Morgan Stanley ended the quarter with a standardized common equity tier 1 ratio of 14.8%. Yeshaya said total spot assets grew to $1.7 trillion, while standardized risk-weighted assets increased to $590 billion as the firm supported higher client activity.

The firm repurchased $1.5 billion of common stock during the quarter and announced a 15-cent increase in its quarterly dividend, bringing the payout to $1.15 per share. Pick said Morgan Stanley has accreted $18 billion of CET1 capital over the last 10 quarters and has a capital cushion of at least 300 basis points.

During the question-and-answer session, Pick said there is strong demand for the firm’s capital across investment banking, fixed income, equities and wealth management clients. He also said management continues to evaluate potential bolt-on acquisitions, but emphasized that the firm’s bias remains toward organic investment.

Executives Highlight AI, Geopolitics and Deal Activity Pick reiterated two themes he said have come into sharper focus in 2026: the accelerating adoption of artificial intelligence and the return of geopolitics as a major force in the global economy. He said AI-related capital spending expectations continue to rise, citing internal research that projects data center capital expenditures of about $850 billion in 2026, $1.3 trillion in 2027 and potentially $1.5 trillion in 2028.

Pick said the firm’s role in that environment is to advise, finance and allocate capital for clients, though he cautioned that the AI investment cycle remains early and subject to uncertainty from technology, supply chain, geography and nation-state involvement.

On merger and acquisition activity, Pick said the backdrop is favorable, citing what he characterized as a normalization of regulation, strong economic conditions and pent-up activity after prior periods of disruption. Yeshaya said the investment banking cycle began with debt issuance, has broadened into equity activity, and could see additional momentum from financial sponsors.

Pick said Morgan Stanley enters the second half of 2026 “from a position of strength,” with clients seeking advice on complicated global markets and interest in new products and innovation.

About Morgan Stanley NYSE: MSMorgan Stanley NYSE: MS is a global financial services firm headquartered in New York City. Founded in 1935 by Henry S. Morgan and Harold Stanley, the company provides a broad range of investment banking, securities, wealth management and investment management services to corporations, governments, institutions and individual investors. Leadership has been guided by a senior executive team and board of directors; James P. Gorman has served as the company's chief executive and chairman in recent years.

The firm's primary business activities are organized around three principal businesses: Institutional Securities, Wealth Management and Investment Management.

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].

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For the quarter ended June 2026, Morgan Stanley (MS - Free Report) reported revenue of $21.35 billion, up 27.1% over the same period last year. EPS came in at $3.46, compared to $2.13 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $19.6 billion, representing a surprise of +8.9%. The company delivered an EPS surprise of +19.72%, with the consensus EPS estimate being $2.89.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Morgan Stanley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Book value per common share: $67.80 versus the three-analyst average estimate of $67.51.Return on average common equity: 20.7% compared to the 17.6% average estimate based on three analysts.Net revenues- Institutional Securities: $11.04 billion versus $9.29 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +44.5% change.Revenues- Wealth Management- Net interest income: $2.25 billion versus the three-analyst average estimate of $2.2 billion. The reported number represents a year-over-year change of +18%.Revenues- Institutional securities- Investment banking: $2.44 billion versus the three-analyst average estimate of $2.09 billion. The reported number represents a year-over-year change of +58.3%.Net revenues- Investment Management: $1.65 billion versus $1.62 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.1% change.Net revenues- Wealth Management: $8.86 billion versus the three-analyst average estimate of $8.59 billion. The reported number represents a year-over-year change of +14.1%.Revenues- Wealth Management- Asset management: $5.26 billion versus the two-analyst average estimate of $5.12 billion. The reported number represents a year-over-year change of +19.3%.Net interest Revenue: $2.78 billion versus the two-analyst average estimate of $2.62 billion. The reported number represents a year-over-year change of +18.5%.Revenues- Institutional securities- Other: $-152 million versus $97 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -175.3% change.Revenues- Institutional securities- Sales and trading- Equity: $6.3 billion versus the two-analyst average estimate of $4.42 billion. The reported number represents a year-over-year change of +69.3%.Revenues- Investment Management- Performance-based income and other: $130 million compared to the $90.45 million average estimate based on two analysts. The reported number represents a change of +10.2% year over year.View all Key Company Metrics for Morgan Stanley here>>>

Shares of Morgan Stanley have returned +3.1% over the past month versus the Zacks S&P 500 composite's +1.6% 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.

FTSE 100 down 17 points at 10,512 Miners fall on weaker China GDP Barratt Redrow, ICG, B&M, NextEnergy Solar publish updates  4.22pm: Oil prices soften Oil prices have continued to soften despite Iran threatening to halt all energy exports from the Middle East, following the restarting of tjhe US blockade of its ports and ships earlier troday.

"Regional energy exports are either shared by all or denied to all," Iran’s Islamic Revolutionary Guard Corps (IRGC) said in a statement.

It says the Strait will remain closed until the "end of America’s evils".

But Brent crude is now down 1% today at under $84 a barrel.

Shares in Shell and BP are down 0.5% and 1.6%.

Miners Fresnillo, Anglo American, Endeavour and Antofagasta remain the biggest fallers on the index, along with telecoms companies Vodafone, Airtel Africa and BT, tech fund Scottish Mortgage and Polar Cap Tech. 

3.45pm: US tech gains fade Early gains in the Nasdaq have faded as a sharp sell-off in storage and semiconductor stocks gathered pace, with SanDisk falling 13%, while Western Digital, Seagate and Micron all post 8-9% losses.

The weakness has spread across the broader chip sector, dragging down names including Marvell, AMD, Lam Research and Applied Materials, weighing on the tech-heavy index.

This is despite ASML, the European chip-equipment giant, climbing slightly after raising sales forecasts.

3.23pm: Water mess One of the biggest UK business stories today is about unlisted Thames Water, which increased bonus payments to senior managers last year despite warning of "material uncertainty" over its future, saying funding is due to dry up by November and meeting just 55% of its regulated performance targets.

Britain's biggest water company increased bonuses from £2.8 million to £4.1 million in the year to March. Chief executive Chris Weston also received a rise in basic pay and a previously deferred bonus of £99,000, as he was blocked from receiving a new one by the government's bonus ban.

Thames warned that it needs to complete a recapitalisation, as net debt climbed to £19.7 billion from £17.7 billion a year earlier, with talks ongoing with creditors, regulators and the government on a rescue plan.

Further funding from lenders is expected to depend in part on the stance of incoming prime minister Andy Burnham, who has indicated he is considering bringing the utility into temporary public ownership.

Failure to agree a refinancing package is likely to push the group into a 'special administration regime', which could pave the way for nationalisation.

2.50pm: US stocks open higher, PayPal and Blackrock in lead Wall Street has opened on the front foot, with investors digesting more earnings.

The Nasdaq has added 0.4% in initial trades, while the S&P 500 and the Dow both are up 0.3%.

PayPal has leapt 14.5% on a reported bid from that payments company Stripe and private equity firm Advent.

BlackRock is among the standout S&P performers, jumping more than 7% after the world's largest asset manager reported a record US$15 trillion of assets under management.

The group attracted US$192 billion of net inflows during the second quarter as investors continued to pour money into exchange-traded funds.

Elsewhere, uniform supplier Cintas rose 4.7%, while software groups Adobe and Workday were also among the leading gainers in the Nasdaq 100.

2.07pm: Oil calm despite new US-Iran strikes Oil prices are remaining relatively sanguine despite new daylight strikes by the US on Iran. 

Brent crude has eased back towards US$85 a barrel after earlier touching about US$86.50, although prices remained elevated compared to two weeks ago.

US Central Command said it had completed another round of strikes on Greater Tunb Island, near the Strait of Hormuz, targeting coastal defence systems and cruise missile storage and launch sites.

The operation was "designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz", it said.

The latest strikes followed an earlier wave launched during daylight hours, marking a departure from previous US operations, which had taken place overnight.

Iran has vowed a "decisive response" after local media reported that seven military personnel were killed in a US strike on a military base in Bampur in the country's south-east, with several others wounded.

1.19pm: Ed Miliband no longer favourite to be Chancellor Prediction markets are still struggling to settle on who will become Britain's next chancellor.

On Polymarket, the favourite is now Shabana Mahmood, with an implied probability of 43.8% for the current Home Secretary, ahead of former home secretary Yvette Cooper on just over 35%.

Former Labour leader Ed Miliband is a distant third on 17%, having been favourite a week ago at over 65% implied probability, while previous favourite Wes Streeting is rated an outsider at 3.5%.

The market has been volatile over the past 24 hours, with Cooper briefly overtaking Mahmood before the latter regained the lead.

The market is likely to have turned amid Westminster reports that senior allies of Burnham believe they have succeeded in blocking Miliband from the Treasury, on concerns he would become a lightning rod for criticism of the government.

Elsewhere, a Bloomberg survey of market participants showed Miliband is investors’ least favoured choice, with Mahmood not far behind him. Wes Streeting is by far the most market-friendly choice, apparently.  

12.13pm: European stocks in the red, US futures green London's blue-chips and those in other European financial centres remain under pressure at midday trading, although losses have eased slightly, with the pan-European Stoxx 600 only down 0.1%

Germany's DAX continued to lag with a 0.8% decline, with falls of 0.5-0.6% in Madrid and Milan, while in Paris the CAC 40 is down 0.2%.

Wall Street looked set for a slightly more sanguine start, led by the tech sector, with Nasdaq futures up 0.5%, S&P 500 futures rising 0.1% and those for the Dow little moved.

Summing up yesterday's Wall Street session, market analyst Kenny Polcari of SlateStone Wealth said investors were able to look through IBM's record one-day share price drop thanks to stronger-than-expected bank earnings and easing US inflation.

"The banks steal the show as they kick off the earnings season," he says, with five of the largest banks in the country together earning roughly $49 billion in profits, a 39% annual increase, inclduing JPM and Goldman Cash posting the best quarters in their history.

Today's earnings include ASML Holding, Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS), BlackRock and BNY Mellon.

11.53am: Save our stock market Ahead of Andy Burnham being confirmed as the new PM, which is expected on Friday, the Association of Investment Companies has drawn up its wish list to "save our stock market".

Top of it is a familiar demand from the City: scrap the UK's 0.5% stamp duty on share purchases.

The trade body for the investment trust sector argues the tax is making UK equities less attractive at a time when London is already losing listed companies to overseas buyers and struggling to attract new flotations.

AIC chief executive Richard Stone points to Peel Hunt analysis showing the value of takeover bids for UK-listed companies was 27 times greater than the value of IPOs in the first half of 2026.

He also wants Burnham to reverse the cut in venture capital trust tax relief from 30% to 20%, arguing it risks starving fast-growing businesses of funding before they reach the stock market.

Stone warned that London's challenges could intensify as blockbuster US listings continue to dominate global markets, citing the recent flotation of SpaceX and expected IPOs from Anthropic and OpenAI, which could further increase the weighting of US shares in global equity indices.

"The situation on the London market is now so serious that it requires bolder interventions to save our stock market," Stone says, adding that abolishing stamp duty "would give the biggest financial return to the UK economy by encouraging more investors to buy UK equities and drive economic growth."

He notes that investment trusts make up 36% of the FTSE 250 and seven constituents of the FTSE 100, saying they are subject to "onerous double taxation given that the trusts themselves pay stamp duty when they buy UK shares, then investors have to pay stamp duty on the shares of the investment trusts".

11.16am: Netflix earnings tomorrow  One of the first US tech companies stepping up to the plate is Netflix, though it's more media that tech.

Chris Beauchamp at IG says the Q2 numbers "are an opportunity for the company to stop the year-long decline in its shares that have seen them lose over 45%".

Cash flow and margins are holding up, "but in a world of growing competition and the inevitable creep of AI, Netflix has to show that it can retain the engagement of its subscribers", he says.

"That is a long and never-ending task, so while tomorrow's numbers provide a chance to tell that story, it won't be a one-and-done.

"Alongside progress on that front, investors will want to see how the firm can squeeze more cash out of advertising from its cheaper tiers - ad revenue is only 6% of sales, so there is more to be done.

"The current rout in the shares is nowhere near as bad as 2022 yet, but unless Netflix can convince shareholders that it has a workable plan, then more losses seem likely."

10.59am: PayPal is 'dirt cheap' The reported bid for PayPal from Stripe would put the payments group "out of its misery" after years of miserable share price performance, says Dan Coatsworth at AJ Bell.

"The payments sector has long been a hive of activity for takeover activity, and one must wonder why PayPal hasn’t already been picked off," he says, following its acquisition by eBay in 2002 for about US$1.5 billion then being spun back out in 2015.

The payments group was "merrily on its way to greatness when suddenly Apple Pay and Google Pay took off and grabbed some of PayPal’s market share", Coatsworth says, and has seemed to be further "left behind" in a busy market that has also seen the likes of Stripe, Block and Adyen become challengers.

"If the bid rumours are true, Stripe and Advent obviously see an opportunity to buy a company that’s down but not out," he says.

"The brand still has considerable trust among the public and business community, and it makes a decent profit. It is plugged into many of the hot payment themes including mobile payments, digital wallets and buy now, pay later. For Stripe, it provides a consumer-facing brand.

"Importantly, PayPal is dirt cheap. At its peak, the shares traded on more than 60 times earnings. They’re now on less than nine times which is the sort of rating that’s rarer than hen’s teeth in the payments sector."

10.43am: NextEnergy Solar sale process  Shares in NextEnergy Solar Fund are shining 5% brighter after the investment trust launched a formal sale process.

Jefferies analyst Matthew Hose says a sale "appears to be the best way forward", based on the valuation implied by Drax's offer for Bluefield Solar Income Fund as evidence of what solar assets are worth to trade buyers.

A sale would allow NextEnergy to repay its preference shares, Hose adds, avoiding potential dilution to ordinary shareholders at a later stage.

It might not be the simplest process, with the analyst flagging several complications in sourcing bids, though on the plus side the notice period under the management contract is only 12 months

10.27am: PayPal bid reported Across the pond, PayPal shares have surged 16% in pre-market trading after reports that Irish-US payments startup Stripe has teamed up with private equity firm Advent International to make a joint $53 billion takeover bid.

According to Reuters, Stripe and Advent have offered US$60.50 a share, representing a 28% premium to PayPal's closing share price on Tuesday.

A proposal was submitted earlier this month, the report said, following an initial approach in early April.

10.15am: ICG is top riser Alternative asset manager ICG is now top of the Footsie leaderboard, after a Q1 trading update. 

The private credit investor reported fundraising of $4.1 billion, towards management's guidance for the full year to be below last year's $17 billion.

Analyst Abid Hussain at Panmure Liberum said this was "strong" and realisations were ahead of expectations at $1.98 billion, compared to his forecast of $1.68 billion.

Fee-earning AUM was in line at $88.1 billion, with total AUM at $126 billion versus his $127 billion estimate. 

"Overall a solid, low drama quarter from management," Hussain said, with the shares trading on a nine-times two-year forward PE and the stock down 13%, "derating alongside the sector despite solid underlying performance, leaving today's numbers reinforcing what we see as a widening valuation opportunity".

10am: China thoughts Various thoughts on China are appearing in my inbox, after GDP growth slowed to 4.3% in the second quarter, its slowest pace since 2023, below the official target range of 4.5-5% for this year.

Construction was the main drag, with growth in industrial output and construction slipping to 3.0% from 4.9% in Q1, while services sector growth was steady.

Retail sales rose 1.0% in June, after falling 0.5% in May, with sales of autos, household appliances and construction materials all posted double-digit falls.

Duncan Wrigley at Pantheon Macroeconomics says: "We had expected accelerated local government bond issuance in June to drive a modest improvement in infrastructure investment, but this has yet to appear".

Manufacturing output surged 6.0% y/y in June, up from 4.4% in May, as strong export demand outweighing sluggish domestic demand, he notes.

"Policymakers will see a ‘K’-shaped economy: vibrant high-tech manufacturing and exports in stark contrast with anaemic domestic demand, dull traditional industries and falling construction activity."

He adds: "We are hopeful of fresh thinking to tackle the underlying causes of weak consumption activity, namely the soft jobs market, the prolonged property sector downturn and people’s worries about future outlays as they age.

"More targeted property market support is likely. Meaningful social security reform, however, remains a longer-term project."

Laurence Booth, market analyst at CMC Markets, says: "Markets are trying to reconcile two very different signals. China's weaker growth figures point to softer global demand, while rising oil prices are putting inflation back on investors' radar.

"Until recently, markets were becoming more comfortable with the idea that inflation was steadily moving lower. Higher energy prices now challenge that view, particularly in Europe and the UK, where central banks remain wary of second-round inflation effects.

"That leaves investors in an uncomfortable position. Slower global growth would normally support the case for lower interest rates, but if energy prices remain elevated, policymakers may have less room to ease than markets currently expect."

9.19am: FTSE down, DAX down further The FTSE 100 was down more than 80 points a short while ago, but has cut that deficit to around 35 points now. 

Miners are being hit by weaker-than-expected Chinese GDP, with concerns about economic growth generally immediately seen by investors as likely to hit demand from the world's biggest consumer of industrial metals.

China's economy grew 4.3% in the second quarter, down from 5.0% in the first three months of the year and marking its weakest pace of expansion in three years, prompting investors to sell mining shares.

Precious metals also gave back some of the previous day's gains as risk appetite improved and rate expectations eased following softer US inflation. 

A drop of 0.3% for London blue-chips compares to a 0.9% fall for Germany's DAX, which is the worst performing of the European markets this morning. 

The DAX is underperforming due to falls for semiconductor group Infineon Technologies (XETRA:IFX, OTC:INFNNY), online retailer Zalando and defence contractor Rheinmetall, while chemicals groups BASF and Bayer also declining possibly reflecting the China growth angle.

This is despite Dutch semiconductor equipment maker ASML raising its 2026 guidance for a second time.

After yesterday's mildly positive session, European shares are lower this morning as the US continued to launch strikes on Iran overnight.

Crude oil prices are a bit firmer, with Brent up 1.5% to $86 a barrel, "though oil prices are trading a range and not taken out yesterday’s one-month high after Trump rowed back threats to impose 20% tolls on ships transiting the Strait," says market analyst Neil Wilson at Saxo. "Classic TACO Tuesday I guess."

After the softer CPI reading, Wilson also picks up on Fed chair Kevin Warsh's message that it is not mission accomplished yet.

After Warsh reiterated that the Fed has "no tolerance for persistently elevated inflation", Wilson wonders if this is "the Mario Draghi ‘whatever it takes’ approach or does it mean July is still live". 

8.57am: B&M shares fall despite 'solid' quarter B&M shares are down 4% after the Q1 trading update, but analyst Jonathan Pritchard at Peel Hunt says it was a "solid" quarter.

He says that the 2.3% UK LFL decline "is in line with forecasts, following the shape of the weather, up against a huge prior-year comparative from April last year (+10.9%)".

Overall, he sees B&M entering Q2 "with less seasonal volatility and a more stable base", with France (+5.3%) and Heron Foods (+2.6%) both ahead of his forecasts.

"In conclusion, it was a solid first quarter, with performance in keeping with our forecasts, and the wider market, and we expect consensus is likely to be largely unchanged following today’s update."

8.33am: Barratt Redrow - what analysts are saying Some analysis of the Barratt Redrow numbers.

Clyde Lewis at Peel Hunt notes that completions were slightly ahead of the guided range, with adjusted PBT expected to be in line with the current City consensus forecast, and the order book is "only modestly lower" than the prior year.

With the planning backdrop continuing to pose difficulties, minimal growth in house prices and build cost inflation likely to be 3-4%, the business is "likely to see further gross margin pressure in FY27E", he reckons.

With admin costs and interest charges guided to increase by circa £40-45 million, this implied downgrades to its current PBT forecast of £568 million.

But Charlie Campbell at Stifel sees the outlook is "broadly where consensus is already" and growth "not predicated on better sales rates". Build cost inflation of around 3-4% compares to consensus at around 4%.

The shares trade at 0.6x book value, an 8% discount to the sector, "and only a little up on its lowest valuation since May 2012", Campbell says. 

"We expect the shares to perform well in the next twelve months if the UK's inflation shock is short and sharp rather than prolonged."

8.15am: FTSE 100 opens lower as miners weigh The FTSE 100 has dropped 65 points to 10,464 in opening trades, led by the mining sector. 

Precious metals miners Fresnillo and Endeavour, along with copper-focused Antofagasta, make up the bottom three, with Anglo American and Rio Tinto a little behind. Gold, silver and copper are down 0.6-0.3% this morning. 

Also among the bigger fallers are telecoms pair BT and Vodafone, along with defence and aerospace names Melrose, Babcock and BAE Systems.

Topping the leaderboard is Barratt Redrow, up just over 4% as its results impressed. Sector peer Persimmon is carried up 1.5% from read-across. 

Only 15 of the index are in positive territory so far this morning. 

7.57am: B&M mixed B&M European Value Retail has reported first-quarter sales growth of 2% as strong trading in France and steady growth at Heron Foods helped lift the top-line revenue despite continuing soft trading in its core UK business.

The discount retailer said revenue rose to £1.43 billion in the 13 weeks to 27 June from a year earlier.

Revenue at B&M UK increased 0.3% to £1.14 billion, although like-for-like sales, which measure performance at stores open for at least 14 months, fell 2.3%. The decline was said to reflect a comparison with a stronger start to the garden season last year.

7.46am: Barratt bets on buybacks over dividends Barratt Redrow has pledged to return £400 million to shareholders after deciding buybacks represent better value than paying larger cash dividends, as the housebuilder reported annual profits in line with expectations.

The FTSE 100 group completed 17,667 home sales in the year to 28 June, at the top end of its guidance range and up from 16,826 a year earlier.

There was net cash of £772 million at year-end, well ahead of the £550-650 million range it guided to in April, helped by lower land spending and delayed building safety remediation payments.

Looking ahead, completions are seen increasing to 17,700-18,200 in the new financial year, with "minimal" house price inflation but 3-4% build cost inflation. 

7.28am: Rates in focus The boost to the market from the US CPI inflation is not likely to last long, reckons market analyst Ipek Ozkardeskaya at Swissquote.

A softening in the annual rate of CPI and a month-on-month fell tamed hawkish Federal Reserve expectations, leading to a sharp pullback at the short end of the US Treasury yield curve.

The US two-year yield, which best captures Fed rate expectations, fell 10 basis points yesterday, with Fed funds futures now pricing out a July hike and sending the probability of a September rate hike down to 60% from 77% before the CPI release.

"But because the drop in US inflation was largely driven by the sharp pullback in energy prices, the inflation relief will probably not last long," Ozkardeskaya says. 

"Middle East tensions are escalating. The US President walked back his latest – and perhaps one of the most absurd proposals yet – to charge a 20% fee on all ships transiting the Strait of Hormuz (we did the math yesterday: it would amount to a $30–34 million fee per oil tanker and would be against international law).

"Yet strikes in the region continue, energy infrastructure is being damaged, and oil and gas prices are rising. US crude is consolidating its rebound near $80 per barrel, Brent is trading near $85pb. NYMEX natural gas remains stable below $3, yet European TTF futures are up more than 30% since the June dip."

Deutsche Bank's Jim Reid notes that the 10-year US Treasury yield traded low as 4.521% post-CPI but it then climbed somewhat, "in part as Fed chair Kevin Warsh continued to strike a tough note on inflation as he delivered his first testimony as Chair before the House Financial Services Committee".

Reid says Warsh refrained from any direct policy guidance, but stressed that the softer CPI print did not mean "mission accomplished".

The central bank chief also said that "members of our Committee have no tolerance for persistently elevated inflation". 

In all, says Reid, "the new Chair looked to cement inflation-fighting credibility. But he was fortunate to be making these tough remarks in a day of soft CPI, with the inflation data easing the pressure for any immediate policy tightening".

FTSE 100 Live pre-open London and European shares are predicted to struggle on Wednesday morning, in contrast to gains for most Asian and US stocks after a shift in rate expectations following US inflation data yesterday. 

The FTSE 100 is expected to open around 40 points lower, according to the futures market, more than erasing the 31 points added yesterday when the index closed at 10,529.39.

Wall Street enjoyed a positive session overnight, following the biggest monthly fall in US CPI inflation for six years, which boosted hopes that the Federal Reserve may not need to raise interest rates this month.

The Nasdaq led the gains, climbing 0.9% as semiconductor stocks rallied, while the S&P 500 added 0.4% and the Dow Jones edged up just 10 points, held back by a big fall for IBM.

Asian markets are mostly higher, led by the tech sector, with Korea's Kospi jumping 7.3% and Japan's Nikkei up 1.45%, with US futures also positive, again led by the tech-powered Nasdaq, up 0.8% currently. 

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

Pre-market futures are gathering steam following this morning’s slew of economic data, which was quite encouraging overall. Wholesale inflation and another round of Q2 earnings results, along with a New York manufacturing index, has seen the blue-chip Dow up from +99 points to +140 at this hour. The S&P 500 is +10 at this hour, and the Nasdaq is +150. The small-cap Russell 2000 is +4 points.

PPI for June Better than Expected: -0.3%, +5.5%Following Tuesday’s retail inflation numbers from the Consumer Price Index (CPI), which showed pressures on the economy abating, this morning’s Producer Price Index (PPI) for June — the wholesale inflation print — brings us more of the same: -0.3% on month-over-month headline, lower than both the 0.0% expected, and the half-point downward revision for May to +0.6%. This is the steepest drop since August of last year, which is the last negative print on month-over-month PPI.

We know that the easing of oil prices last month has pushed both PPI and CPI inflation numbers lower for June. But stripping out volatile food and energy costs, we only swing up to +0.2% for the month, 10 basis points (bps) below expectations, with the prior month’s revisions ratcheting down considerably, as well.

Year over year PPI pulls back to +5.5% — 100 bps lower than last month’s initial print, which has been revised down another half a point to +6.0%. Core year over year reduces to +4.7%, further demonstrating less of an inflationary strain on the economy than we saw a month ago. Ex-food, energy and trade was still the highest in more than three years at +5.1%, but that’s still lower than analysts had been projecting.

The opening of the Strait of Hormuz last month (which is presently in jeopardy considering news reports out of the Middle East this morning, making these PPI numbers potentially a mere fleeting relief) sent Energy prices down -6.4% on wholesale inflation, with Diesel hurtling -18% downward. Overall, Goods dropped -1.4% and Food was -0.6%. Pre-market futures, as we saw above, are happy with these numbers, regardless.

Q2 Earnings Today: Morgan Stanley, BlackRock Ahead of the BellInvestment giant Morgan Stanley (MS - Free Report) reported Q2 earnings ahead of today’s opening bell, with big beats on both top and bottom lines. Earnings of $3.46 per share zoomed past the $2.89 in the Zacks consensus for a +19.7% positive surprise. Revenues also impressed: $21.38 billion were +8.9% higher than expected. Shares are selling the news a bit, however, as the stock had already risen +28% year to date prior to the print.

Wall Street competitor BlackRock (BLK - Free Report) also outperformed estimates ahead of the open this morning, with earnings of $13.91 per share well ahead of the $12.67 projected and $12.05 per share reported a year ago. Revenues of $7.08 billion beat consensus by +3.75%, and towers above the $5.42 billion in revenues the company posted for Q2 of last year. Shares are up +5.6% on the news, pushing the stock into positive territory year to date.

Outside the world of Big Finance, Johnson & Johnson (JNJ - Free Report) outpaced earnings estimates by 6 cents to $2.90 per share this morning, for a +2.1% positive surprise. Revenues of $25.31 billion surpassed the Zacks consensus by +0.53%. Household goods and pharmaceuticals typically don’t bring the gaudy margins the AI firms or big investment houses do, though the stock is still up more than +20% year to date, despite this morning’s slight selloff on the Q2 news.

After today’s close, we’ll see earnings from United Airlines (UAL - Free Report) . Earnings are expected to come in -51% from a year ago — higher fuel costs took a bite out of the airlines last quarter — on +16% gains in revenues. The company carries a Zacks Rank #2 (Buy) rating into this afternoon’s print, and has beaten earnings estimates in the past four quarters by an average of +5%.

SAN DIEGO, July 15, 2026 (GLOBE NEWSWIRE) -- Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Intuit Inc. (NASDAQ: INTU) securities between August 22, 2025 and May 20, 2026. Intuit provides financial management, payments and capital, compliance, and marketing products and services in the U.S.

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

What is the class period? August 22, 2025 – May 20, 2026

What are the allegations? Robbins LLP is Investigating Allegations that Intuit Inc. (INTU) Misled Investors Regarding the Company's Sustainability and Growth

According to the complaint, during the class period, defendants failed to disclose to investors 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 Turbo Tax business, as a result of, inter alia, increasing competitive and pricing pressures; and (iii) accordingly, Intuit’s previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic.

Plaintiff alleges that the truth began to emerge on May 20, 2026, when 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, 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 announced disappointing fiscal third quarter 2026 results. Following the news, Intuit’s stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.

What Now: You may be eligible to participate in the class action against Intuit Inc. Shareholders who wish to serve as lead plaintiff for the class must submit their papers to the court by September 8, 2026. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.

To be notified if a class action against Intuit Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

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

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

Intuit currently has an average brokerage recommendation (ABR) of 1.69, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.69 approximates between Strong Buy and Buy.

Of the 32 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 68.8% and 6.3% of all recommendations.

Brokerage Recommendation Trends for INTU

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

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

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

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

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

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

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is INTU Worth Investing In?Looking at the earnings estimate revisions for Intuit, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $23.86.

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

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

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

The market expects Reliance (RS - Free Report) 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 is important in assessing the company's earnings picture, but a powerful factor that might influence 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 22. 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 metals service-center company is expected to post quarterly earnings of $5.33 per share in its upcoming report, which represents a year-over-year change of +20.3%.

Revenues are expected to be $4.16 billion, up 13.7% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 Reliance?For Reliance, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.10%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Reliance 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 Reliance would post earnings of $4.63 per share when it actually produced earnings of $5.16, delivering a surprise of +11.45%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

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.

Reliance 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.

A Broadcom logo and a computer motherboard appear in this illustration created on August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

CompaniesBRUSSELS, July 14 (Reuters) - The Cloud Infrastructure Services Providers in Europe (CISPE) has joined forces with four other trade groups to ​urge EU antitrust regulators to suspend some business practices of ‌U.S. chipmaker Broadcom (AVGO.O), opens new tab, according to a joint letter seen by Reuters.

CISPE , which has nearly 50 members across Europe and counts Microsoft (MSFT.O), opens new tab and Amazon (AMZN.O), opens new tab as associate ​members, in March asked for an interim measure on its own ​after Broadcom last year revamped its VMware cloud service provider ⁠ecosystem, which it acquired in 2023.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

CISPE's complaint prompted the European ​Commission, which acts as the EU competition enforcer, to question the VMware licensing ​changes.

Belgium's association of digital business users Beltug, and its counterparts France's Cigref, Germany's VOICE and CIO Platform Nederland, have now joined in, accusing Broadcom of imposing ​steep price increases on VMware's virtualisation platform users and excluding ​thousands of providers from deploying and purchasing it.

"We therefore urge you, in the strongest ‌possible ⁠terms, to act swiftly and impose interim measures now," CISPE said in their joint letter dated July 10.

They asked EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunen to ensure a ​transition period of ​at least three ⁠years while regulators continue their investigation into Broadcom.

Broadcom said it disagreed with CISPE's allegations, calling it an ​organisation funded by large cloud service providers, or ​hyperscalers, which ⁠misrepresent the realities of the market.

"We continue to be committed to investing significantly in our European VMware Cloud Service Provider partners (VCSPs) helping them ⁠offer ​alternatives to the hyperscalers and meet the ​evolving needs of European businesses and organisations," a Broadcom spokesperson said.

The European Commission confirmed ​receipt of the letter.

Reporting by Foo Yun Chee, editing by Andrei Khalip

Our Standards: The Thomson Reuters Trust Principles., opens new tab

An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

Key Takeaways Snowflake is growing its customer base and seeing rapid adoption of its AI products across enterprises. AVGO is benefiting from strong AI chip demand, record bookings and long-term hyperscaler agreements. Broadcom stands out in AI revenue growth and long-term earnings visibility over Snowflake. Snowflake (SNOW - Free Report) and Broadcom (AVGO - Free Report) are major players in the enterprise AI boom. Snowflake provides AI-powered cloud data platforms and analytics, while Broadcom supplies the AI networking, custom silicon, and infrastructure technologies that enable large-scale AI deployments across enterprises and hyperscale data centers.

Snowflake or Broadcom — Which of these Enterprise AI stocks has the greater upside potential? Let’s find out.

The Case for SNOW StockSnowflake is benefiting from strong adoption and growing usage of its platform, as reflected in a net revenue retention rate of 126% in the first quarter of fiscal 2027. In the same quarter, Snowflake reported 13,912 total customers and added 616 net new customers, up 38% year over year. The company now has 779 customers spending more than $1 million annually, up 29% year over year, and the number of customers spending more than $10 million annually increased to 64.

The company’s rapid adoption of its new AI products, Snowflake Intelligence and Cortex Code (CoCo), has been a key catalyst. These products are seeing the fastest uptake in company history, with CoCo already in use by more than 7,100 accounts.

Snowflake Intelligence offers business users a natural language interface to enterprise data, while CoCo empowers builders to create applications, pipelines and agents directly on the platform using natural language.

Snowflake’s partnerships with AWS, OpenAI and SAP further strengthen its position as the go-to platform for enterprise AI. The company expanded collaboration with AWS through a new $6 billion multi-year agreement, highlighted ongoing work with OpenAI, and noted that capabilities from its SAP partnership reached general availability. Snowflake also signed a definitive agreement to acquire Natoma in May 2026 to strengthen secure connections for AI agents across tools and workflows.

The Case for AVGO StockBroadcom is benefiting from the accelerating adoption of enterprise AI, driven by rising AI semiconductor demand, led by custom XPUs and AI networking. In second-quarter fiscal 2026, AI semiconductor revenues jumped 143% year over year to $10.8 billion, surpassing management’s expectations. Growth was driven by strong demand for custom AI accelerators (XPUs) and networking products used in large-scale computing environments. The company’s bookings for AI semiconductors exceeded $30 billion in the fiscal second quarter of 2026, far outpacing shipments.

The company’s technology leadership in both AI compute (XPUs) and networking is another major advantage. Broadcom is shipping industry-leading 100 terabit Ethernet switches and is preparing to launch next-generation 200 terabit switches. Its networking solutions, which represented almost 40% of fiscal second-quarter 2026 AI revenues, are essential for connecting and scaling AI clusters across data centers.

A key factor in AVGO’s success is its deep partnerships with leading AI platform providers, including Google, Anthropic, OpenAI and Meta. These companies rely on Broadcom’s advanced XPUs, TPUs and networking chips to power their AI workloads, which enterprises then consume via tokens and APIs. In April 2026, Broadcom entered into long-term agreements to supply multiple generations of TPUs and AI networking to Google and has secured multi-gigawatt commitments from Anthropic and OpenAI for the coming years.

Broadcom expects AI semiconductor revenues to double in the second half of 2026 and projects full-year AI semiconductor revenues of $56 billion, up approximately 180% from fiscal 2025. The company reiterates guidance for AI semiconductor revenues to exceed $100 billion in 2027, with continued growth into 2028. With record bookings and long-term customer agreements, AVGO appears well-positioned to capture further upside as enterprise AI adoption accelerates globally.

Price Performance and Valuation of SNOW and AVGOIn the trailing 12-month period, SNOW shares have gained 30.2%, underperforming Broadcom shares, which have risen 38.5%. Broadcom’s outperformance can be attributed to its rising AI revenues, driven by strong demand for custom AI accelerators (XPUs).

The underperformance of SNOW can be attributed to lower gross margins from new AI products like Cortex Code compared with Snowflake’s core platform. Integration and hiring tied to acquisitions also weigh on free cash flow margins. Stiff competition also remains a concern.

SNOW and AVGO Stock Performance
Image Source: Zacks Investment Research

Both SNOW and Broadcom shares are currently overvalued, as suggested by a Value Score of F and D, respectively.

In terms of forward 12-month Price/Sales, SNOW shares are trading at 14.19X, higher than Broadcom’s 12.18X.

SNOW and AVGO Valuation
Image Source: Zacks Investment Research

How Do Earnings Estimates Compare for SNOW & AVGO?The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.96 per share, unchanged over the past 30 days. This indicates a 56.80% increase year over year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2026 earnings is pegged at $11.73 per share, unchanged over the past 30 days. This indicates a 71.99% increase year over year.

ConclusionWhile both Snowflake and Broadcom are well-positioned to benefit from the enterprise AI boom, Broadcom stands out as the better pick thanks to its faster AI revenue growth, strong hyperscaler partnerships and greater long-term earnings visibility.

Despite SNOW’s robust portfolio, the company suffers from challenging macroeconomic uncertainties and variability of consumption as customers optimize spending on AI products that carry lower gross margins than the core platform.

Currently, Broadcom has a Zacks Rank #2 (Buy), making the stock a stronger pick than Snowflake, which has a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways SCHW is expected to post higher Q2 earnings and revenues, with results due on July 21 before market open.Schwab may see trading revenues rise on strong client activity and elevated market volatility.SCHW's net interest revenues and asset management fees are expected to benefit from higher assets and loans. Charles Schwab (SCHW - Free Report) is scheduled to report second-quarter 2026 earnings on July 21, before market open. The company’s quarterly earnings and revenues are expected to have increased on a year-over-year basis.

Schwab’s first-quarter 2026 earnings outpaced the Zacks Consensus Estimate, driven by the solid performance of the asset management business and higher trading revenues. Higher net interest revenues (NIR) and solid brokerage account numbers were other positives.

The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 3.8%.

Before we take a look at what our quantitative model predicts, let us check the factors that are likely to have impacted Schwab’s second-quarter performance.

Factors Likely to Influence Schwab’s Q2 EarningsTrading Revenues: Client trading activity remained strong in the second quarter of 2026, driven by elevated market volatility amid shifting expectations for artificial intelligence, persistent inflation, ongoing geopolitical tensions and a more hawkish Federal Reserve. These factors fueled increased activity across equities, fixed income, foreign exchange and commodities markets.

Schwab continued to expand its client base, with new brokerage account openings rising in the first two months of the quarter and core net new assets increasing year over year.

Backed by healthy client engagement and a favorable trading backdrop, Schwab is expected to have delivered solid growth in trading revenues. The Zacks Consensus Estimate for trading revenues is pegged at $1.14 billion, indicating a 19.7% year-over-year increase.

NIR: The consensus estimate for SCHW’s average interest-earning assets for the to-be-reported quarter is $446 billion, indicating a year-over-year rise of 5.4%.

In the quarter, the Fed kept interest rates unchanged, while signaling a hike later in the year because of persistently high inflation. This is expected to have created a favorable backdrop for SCHW. Thus, supported by growth in loans and stabilizing funding/deposit costs, the company’s NIR is expected to have been positively impacted.

SCHW’s continued focus on repaying high-cost bank supplemental funding balances is expected to have further supported growth.

The Zacks Consensus Estimate for second-quarter NIR is pegged at $3.28 billion, indicating a rise of 16.1% from the prior-year quarter’s actual.

Asset Management & Administration Fees: Schwab’s asset management and administration fees are expected to have benefited from higher average client assets in the second quarter, supported by favorable equity market performance and continued growth in advisory solutions. In April and May, Schwab’s client assets receiving ongoing advisory services grew from the prior-year periods.

The consensus estimate for asset management and administration fees for the to-be-reported quarter is pegged at $1.81 billion, which implies year-over-year growth of 15.4%.

Expenses: Schwab’s operating expenses have been elevated in the past few quarters. Due to persistent regulatory spending and strategic acquisitions, marketing and advertising, and efforts to enhance business efficiency, expenses are likely to have increased in the to-be-reported quarter. Also, the company’s plan to expand its branch network and hire for branch-related positions is expected to have led to higher expenses.

What the Zacks Model Reveals for SchwabAccording to our quantitative model, the chances of Schwab beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Schwab is +2.30%.

Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Q2 Earnings & Sales Estimates for SCHWIn the past seven days, the Zacks Consensus Estimate for second-quarter earnings has been revised marginally higher to $1.52 per share. The figure indicates a 33.3% rise from the year-ago quarter.

The consensus estimate for quarterly sales is pegged at $6.75 billion, which suggests a 15.4% increase from the prior-year quarter. Management expects second-quarter 2026 revenues to increase 16-17% year over year.

Other Finance Stocks Worth Betting onHere are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:

Zions Bancorporation (ZION - Free Report) is scheduled to announce second-quarter 2026 results on July 20. The company carries a Zacks Rank #2 (Buy) at present and has an Earnings ESP of +0.53%.

Quarterly earnings estimates for Zions have been unchanged at $1.57 per share over the past week.

The Earnings ESP for Prosperity Bancshares (PB - Free Report) is +1.76%, and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2026 results on July 29.

Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been unchanged at $1.54 per share.

, /PRNewswire/ -- Air Products (NYSE: APD) will hold a conference call to discuss its fiscal 2026 third quarter financial results on Thursday, July 30, 2026 at 8:00 a.m. ET. The teleconference will be open to the public and the media in listen-only mode by telephone and Internet broadcast.

APD Q3FY26 live teleconference: 646-769-9200
Passcode: 7872000

Internet broadcast/slides: Available on the Event Details page on Air Products' Investor Relations website.

Internet replay: Available on the Event Details page on Air Products' Investor Relations website.

About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 85 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global hydrogen supplier, Air Products develops, engineers, builds, owns and operates some of the world's largest hydrogen projects. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.

Air Products had fiscal 2025 sales of $12.0 billion from operations in approximately 50 countries. For more information, visit airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.

SOURCE Air Products

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When Ford CEO Jim Farley returned from a factory tour in China, he described what he saw as “the most humbling thing I’ve ever seen”. He told interviewers that Chinese vehicles’ cost and quality are “far superior to what I see in the West” and warned, “We are in a global competition with China, and it’s not just EVs. And if we lose this, we do not have a future at Ford.” China, he added, has “enough capacity in China with existing factories to serve the entire North American market, put us all out of business.”

Octopus Energy chief Greg Jackson recounted touring a fully automated Chinese phone factory with virtually no human involvement. Fortescue founder Andrew Forrest said his own China trip led him to abandon plans to build EV powertrains in-house. What rattled all three was the same thing: the “dark factory,” a fully automated plant that needs no lighting because no humans work the floor.

The Scale Of China’s Lead The numbers explain the C-suite panic. China operated more than 1.75 million industrial robots as of 2023, roughly 51% of global robot demand, with a robot density of 470 per 10,000 manufacturing workers, ahead of Germany and the United States. That is the installed base American manufacturers are working to catch.

The US Race Is Just Beginning No fully automated dark factory exists yet in the US. Analysts cited by Automotive News predict at least one fully automated automotive assembly line, in the US or China, by 2030. In the meantime, twelve of the world’s top 25 automakers are running advanced robotic pilot programs, including humanoid robots, on production lines.

The most concrete US data point sits in Hayward, California, where 1X Technologies, backed by OpenAI, has launched full-scale production at a 58,000-square-foot NEO humanoid robot factory, described as the most vertically integrated humanoid robot facility in the US, targeting 10,000 units in its first year and scaling toward 100,000 units by the end of 2027. That plant builds robots; it is not itself a dark factory. Hyundai has announced plans to build 30,000 Atlas humanoid robots per year by 2028 for its own factories, and Tesla is producing Optimus robots on a limited scale in California.

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The Reality Check Executives at automation consultancies warn against overnight transformation. Daryl Edwards of Agent Impact and Craig Melrose of Htec argue that most US manufacturers are pursuing gradual, hybrid automation rather than building dark factories from scratch, because US plants are being retrofitted rather than built new, unlike China and Japan. Alex Shikany of the Association for Advancing Automation said roughly a quarter of robot units ordered in North America in a recent quarter were collaborative robots, or “cobots,” designed to work alongside humans, not replace them.

Who Sells The Picks And Shovels Rockwell Automation (NYSE:ROK | ROK Price Prediction) has posted double-digit year-over-year sales growth in its industrial automation segment, driven partly by autonomous mobile robot adoption across automotive, food and beverage, and data center customers. Teradyne (NASDAQ:TER) owns Universal Robots and MiR, and its robotics division reported revenue growth in recent quarters tied to demand for collaborative robots and physical AI applications. NVIDIA (NASDAQ:NVDA) has expanded robotics partnerships in 2026, including with LG and Doosan in South Korea and with Unitree Robotics on the Isaac GR00T platform and Jetson Thor computing hardware. Robotics-segment results shift every earnings cycle and should be confirmed against each company’s own releases.

The more useful frame for investors is the shared supply chain. Both sides need the same controllers, test equipment, and AI compute to get there. The dark factory is a 2028 to 2030 story. The supply chain feeding it is already booking orders.

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Contact [email protected] for any questions or corrections.

Have you been paying attention to shares of CVS Health (CVS - Free Report) ? Shares have been on the move with the stock up 5.4% over the past month. The stock hit a new 52-week high of $106.93 in the previous session. CVS Health has gained 33.8% since the start of the year compared to the -1.1% gain for the Zacks Medical sector and the -0.7% return for the Zacks Medical Services industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.

For the current fiscal year, CVS Health is expected to post earnings of $7.46 per share on $409 in revenues. This represents a 10.52% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.39 per share on $425.13 in revenues. This represents a year-over-year change of 12.49% and 3.94%, respectively.

Valuation MetricsCVS Health may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 14.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.9X. On a trailing cash flow basis, the stock currently trades at 7.1X versus its peer group's average of 10.3X. Additionally, the stock has a PEG ratio of 1.04. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.

Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health fits the bill. Thus, it seems as though CVS Health shares could have a bit more room to run in the near term.

How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Labcorp Holdings Inc. (LH - Free Report) . LH has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of D.

Earnings were strong last quarter. Labcorp Holdings Inc. beat our consensus estimate by 3.91%, and for the current fiscal year, LH is expected to post earnings of $18.00 per share on revenue of $14.71 billion.

Shares of Labcorp Holdings Inc. have gained 4.1% over the past month, and currently trade at a forward P/E of 15.31X and a P/CF of 11.1X.

The Medical Services industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CVS and LH, even beyond their own solid fundamental situation.

Key Takeaways Prologis reports second-quarter 2026 results on July 16 before the opening bell.PLD is expected to post $2.14 billion in Q2 revenues and FFO of $1.53 per share.Prologis has topped FFO estimates in three of the past four quarters, with an average beat of 2.09%. Prologis (PLD - Free Report) is slated to report its second-quarter 2026 results on July 16, before the opening bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.

In the last reported quarter, this leading industrial REIT posted core funds from operations (FFO) per share of $1.50, up 5.6% from a year ago. The figure beat the Zacks Consensus Estimate by 1.49%. Results were supported by robust leasing activity.

Over the trailing four quarters, Prologis beat the Zacks Consensus Estimate for FFO per share on three occasions and met in the remaining period, with the average beat being 2.09%. This is depicted in the graph below:

US Industrial Real Estate Market in Q2The U.S. industrial real estate market strengthened further in the second quarter of 2026. According to a Cushman & Wakefield report, national vacancy declined to 6.9%, suggesting the market has moved beyond its cyclical peak. Net absorption increased 21% from the prior quarter to 62.1 million square feet, bringing first-half demand to 113.6 million square feet — the strongest first-half performance since 2023.

Occupiers continue to favor buildings with higher clear heights, stronger power capacity and infrastructure suited for automation and AI systems. Dallas–Fort Worth, Phoenix, Atlanta and several Midwest logistics hubs performed well, while port markets, including Houston, New Jersey, Los Angeles and Savannah, GA, also posted healthy demand.

Leasing activity accelerated despite longer transaction timelines. Year-to-date leasing reached a four-year high, up 16% from a year earlier, with Dallas–Fort Worth, the Inland Empire and Chicago leading the country. Third-party logistics companies and manufacturers accounted for more than 55% of leasing volume as businesses expanded and adjusted their supply chains.

Supply remained relatively controlled. Second-quarter deliveries totaled 62 million square feet, down 16% year over year, while first-half completions were 19.2% below the same period in 2025. At the same time, the construction pipeline increased to 305.1 million square feet, up 18% from a year earlier. More than one-third of the pipeline is build-to-suit, reducing the risk of excessive speculative supply. Asking rents rose to $10.32 per square foot, up 2.9% year over year and an improvement from the first quarter’s growth rate.

Factors at Play and Projections for PLD’s Q2 ResultsPrologis’ earnings should benefit from strong leasing, high occupancy and continued rent roll-up as older leases reset at higher rates. Positive cash rent growth, solid retention and management’s increased same-store NOI outlook support further growth in recurring rental income.

Earnings could also be aided by profitable development, build-to-suit projects, strategic capital fees and joint ventures that expand investment capacity with less balance sheet pressure. Growth in data centers, solar and energy infrastructure provides additional development income and longer-term earnings diversification.

The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $2.14 billion, which indicates a 5.71% year-over-year increase.

Prologis’ activities during the to-be-reported quarter were not adequate for gaining analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has been revised southward over the past month, and it currently stands at $1.53. However, it implies a 4.79% increase year over year.

What Our Quantitative Model Predicts for PLDOur proven model predicts a surprise in terms of FFO per share for Prologis 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 the case here.

Prologis currently has an Earnings ESP of +1.47% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two other 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 also 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 carries 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.

NEW YORK, July 15, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Roblox Corporation (NYSE: RBLX) 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 Roblox securities between October 30, 2025 and April 30, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/RBLX.

Roblox Case Details

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:

(1)  Defendants overstated Roblox’s organic growth potential and the Company’s ability to sustain “tremendous organic growth” following the rollout of its age verification features;
(2)  Defendants downplayed and failed to adequately disclose the severity and certainty of headwinds associated with the age verification rollout, including a slowdown in user enrollment, reduced on-platform communication, and associated negative impacts on app store ratings;
(3)  as a result of these undisclosed trends, Roblox’s growth rates were expected to decline more sharply than represented; and
(4)  as a result of the foregoing, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading at all relevant times.

What's Next for Roblox 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/RBLX. 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 Roblox you have until August 7, 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 Roblox 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 Roblox 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.

Contact Info

Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]

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Prior results do not guarantee similar outcomes.

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Nucor (NUE - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Nucor is a member of the Basic Materials sector. This group includes 275 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Nucor is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for NUE's full-year earnings has moved 43.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, NUE has returned 43.6% so far this year. Meanwhile, the Basic Materials sector has returned an average of 7.2% on a year-to-date basis. As we can see, Nucor is performing better than its sector in the calendar year.

One other Basic Materials stock that has outperformed the sector so far this year is Teck Resources Ltd (TECK - Free Report) . The stock is up 25.5% year-to-date.

Over the past three months, Teck Resources Ltd's consensus EPS estimate for the current year has increased 32.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nucor belongs to the Steel - Producers industry, a group that includes 17 individual stocks and currently sits at #72 in the Zacks Industry Rank. On average, stocks in this group have gained 31.3% this year, meaning that NUE is performing better in terms of year-to-date returns.

On the other hand, Teck Resources Ltd belongs to the Mining - Miscellaneous industry. This 85-stock industry is currently ranked #206. The industry has moved +13.6% year to date.

Investors with an interest in Basic Materials stocks should continue to track Nucor and Teck Resources Ltd. These stocks will be looking to continue their solid performance.

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

Over the past month, shares of this business software company have returned -20.5%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Financial - Miscellaneous Services industry, which Strategy falls in, has lost 1.9%. The key question now is: What could be the stock's future direction?

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

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

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

For the current quarter, Strategy is expected to post earnings of $52.04 per share, indicating a change of +59.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $57.47 points to a change of +477.4% from the prior year. Over the last 30 days, this estimate has changed -50.8%.

For the next fiscal year, the consensus earnings estimate of $38.99 indicates a change of -32.2% from what Strategy is expected to report a year ago. Over the past month, the estimate has changed -47.8%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Strategy.

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

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Strategy, the consensus sales estimate of $126.95 million for the current quarter points to a year-over-year change of +10.9%. The $503.9 million and $498 million estimates for the current and next fiscal years indicate changes of +5.6% and -1.2%, respectively.

Last Reported Results and Surprise HistoryStrategy reported revenues of $124.3 million in the last reported quarter, representing a year-over-year change of +11.9%. EPS of -$38.25 for the same period compares with -$16.49 a year ago.

Compared to the Zacks Consensus Estimate of $124.6 million, the reported revenues represent a surprise of -0.24%. The EPS surprise was -1021.7%.

Over the last four quarters, Strategy surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

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

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Strategy. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring 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, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

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

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

The Style Scores are broken down into four categories:

Value 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 ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

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

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

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.

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 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.

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: Southern Copper (SCCO - Free Report) Phoenix, AZ-based Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals. The company conducts exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.

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

Additionally, the company could be a top pick for growth investors. SCCO has a Growth Style Score of A, forecasting year-over-year earnings growth of 46.6% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.71 to $7.68 per share. SCCO also boasts an average earnings surprise of +9.1%.

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

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

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

Marathon Digital currently has an average brokerage recommendation (ABR) of 1.91, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 14 brokerage firms. An ABR of 1.91 approximates between Strong Buy and Buy.

Of the 14 recommendations that derive the current ABR, eight are Strong Buy, representing 57.1% of all recommendations.

Brokerage Recommendation Trends for MARA

Check price target & stock forecast for Marathon Digital here>>>

The ABR suggests buying Marathon Digital, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

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

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

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

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

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

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

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

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

Is MARA a Good Investment?Looking at the earnings estimate revisions for Marathon Digital, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at -$4.98.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Marathon Digital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Marathon Digital.

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Wages arrive on an employer’s schedule. Dividends arrive on a corporate board’s schedule and keep arriving whether markets are open or closed. That distinction defines income investing: cash flow that shows up in your brokerage account without negotiating a raise, selling an asset, or clocking in.

We screened our 24/7 Wall St. dividend equity research database and found a collection of companies that, combined, can generate over $7,000 a year in passive annual income if you invest $16,666 in each stock at the time of this writing.

Stock #6: Realty Income Yield: 5.10% Shares for $16,666: 261.36 Annual Passive Income: $850 Realty Income (NYSE:O | O Price Prediction) is a net-lease REIT trading at $63.77 with a $0.271 monthly payout that annualizes to $3.252 per share. Its portfolio of retail, industrial, and gaming properties runs at 98.9% occupancy, and REIT rules require it to distribute 90% of taxable income.

The company has raised its dividend for 114 consecutive quarters and paid 670 consecutive monthly dividends. Management raised 2026 investment guidance to $9.5 billion and formed a joint venture with Apollo, signaling continued deployment.

Stock #5: Enterprise Products Partners Yield: 5.94% Shares for $16,666: 441.74 Annual Passive Income: $989 Enterprise Products Partners (NYSE:EPD) is a Houston-based midstream MLP with a distribution just raised to $0.56 per quarter, or $2.24 annualized. As an MLP, EPD passes cash through to unitholders without entity-level tax, structurally supporting a higher payout than a C-corp peer.

The business runs NGL, crude oil, natural gas, and petrochemical pipelines under fee-based contracts, insulating cash flow from commodity swings. Q1 2026 adjusted EBITDA rose 10% to $2.69 billion, with $5.3 billion in growth projects under construction and a $5 billion buyback authorized. Insiders hold 32.98% of units, unusually high alignment for a company this size.

Stock #4: Altria Yield: 6.04% Shares for $16,666: 237.55 Annual Passive Income: $1,007 Altria (NYSE:MO) is the Marlboro-maker and a Dividend King, having lifted its quarterly payout to $1.06 in Q4 2025 from $1.02. Trailing 12-month dividends total $4.24 per share. Mature tobacco cash flows and declining reinvestment needs let management funnel earnings straight back to shareholders.

The stock returned 28.93% over the past year, and $1.8 billion in Q1 2026 dividends paired with a $2 billion buyback reflects Altria’s classic capital-return template.

Stock #3: Verizon Communications Yield: 6.66% Shares for $16,666: 392.43 Annual Passive Income: $1,111 Verizon Communications (NYSE:VZ) pays $0.7075 quarterly, or $2.83 annualized. The company closed its Frontier Communications acquisition on January 20, 2026, pushing fiber broadband connections up 41.9% year over year to roughly 10.8 million.

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Management raised 2026 guidance to adjusted EPS of $4.95 to $4.99 and free cash flow above $21.5 billion, with more than $3 billion earmarked for buybacks. Nineteen straight years of dividend increases make Verizon a rare high-yield telecom with an Aristocrat-caliber history (worth pairing with our Never Touch the Principal research).

Stock #2: Main Street Capital Yield: 8.10% Shares for $16,666: 313.93 Annual Passive Income: $1,350 Main Street Capital (NYSE:MAIN) is an internally managed BDC focused on lower middle-market lending and equity. It pays a $0.265 monthly regular dividend plus a $0.30 quarterly supplemental, driving the trailing 12-month total to $4.30 per share. BDCs distribute roughly 90% of taxable income to keep their tax status.

The June 2026 supplemental marked the 19th consecutive quarterly special payment. NAV per share edged up to $33.46, non-accruals sit at just 1.2% at fair value, and the internally managed structure keeps operating costs below externally managed BDC peers.

Stock #1: Ares Capital Yield: 10.22% Shares for $16,666: 887.00 Annual Passive Income: $1,703 Ares Capital (NASDAQ:ARCC) is the largest publicly traded BDC. Its $0.48 quarterly dividend annualizes to $1.92, and the payout has held steady for eight consecutive quarters. The portfolio is 73% first-lien senior secured with a weighted-average debt yield of 10.3%, matching the payout to underlying loan economics.

Non-accruals stand at 2.1% at amortized cost, well inside historical norms for middle-market credit.

The Combined Income Picture Combined, these six positions generate $7,010 in annual passive income on a $100,000 investment, a blended yield of 7.01%. Ares Capital contributes $1,703, Main Street Capital adds $1,350, Verizon delivers $1,111, Altria kicks in $1,007, Enterprise Products Partners pays $989, and Realty Income rounds out the portfolio with $850.

Ticker Annual Income Share of Total ARCC $1,703 24.3% MAIN $1,350 19.3% VZ $1,111 15.9% MO $1,007 14.4% EPD $989 14.1% O $850 12.1% Reinvesting these payments accelerates the math: at a 7% blended yield, dividends alone rebuild roughly one share of ARCC every couple of months without new capital. That is the quiet compounding engine income investors are buying, running on a schedule no employer controls.

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Contact [email protected] for any questions or corrections.

Key Takeaways Biogen presented CELIA data at AAIC, confirming that diranersen missed the phase II primary endpoint.BIIB confirmed the lowest 60mg dose showed the largest numerical slowing across cognitive measures.Biogen has still not disclosed a timeline to begin phase III development for diranersen. Shares of Biogen (BIIB - Free Report) were down 8.2% yesterday after the company presented data from the phase II CELIA study evaluating its experimental tau-targeting Alzheimer’s disease (AD) drug, diranersen, at the Alzheimer’s Association International Conference (AAIC).

The AAIC data confirmed that CELIA did not meet its primary endpoint, which assessed the dose-response for change from baseline at week 76 on the Clinical Dementia Rating–Sum of Boxes (CDR-SB) score, a widely used clinical scale that measures cognitive and functional decline in AD patients.

More on BIIB’s Data PresentationWhile the investigational tau-targeting therapy demonstrated meaningful reductions in cognitive decline across multiple measures—including a 26% slowing on CDR-SB, 42% on ADAS-Cog13 and 50% on MMSE at the 60 mg dose — along with robust reductions in cerebrospinal fluid tau and brain tau pathology, the study failed to meet its primary endpoint of demonstrating a dose-response relationship because higher doses did not produce greater clinical benefit.

Importantly, in May 2026, Biogen had already confirmed that CELIA failed to meet its primary endpoint and the latest data presentation did not alter that outcome.

The lowest dose (60 mg every six months) generated the strongest clinical results, while the two higher-dose regimens showed progressively smaller benefits. In the press release, Biogen did confirm that “higher doses were not associated with greater slowing of decline.” The 60 mg regimen slowed CDR-SB decline by 26%, while the two 115 mg regimens, given every six months and every three months, showed only 14% and 9% slowing, respectively. Similar variability appeared across other cognitive measures.

Also, it can be inferred that investors seemed more worried about Biogen’s plans to advance diranersen into confirmatory phase III development, as the study failed to demonstrate the expected dose-dependent clinical benefit. The stronger efficacy observed with the lowest dose than with higher doses may have added to the uncertainty surrounding the drug's late-stage prospects.

Biogen has still not disclosed a timeline for initiating the late-stage development program for diranersen.

BIIB’s Stock PerformanceShares of Biogen have risen 9% year to date compared with the industry’s 2.9% growth.

Image Source: Zacks Investment Research

More on Biogen’s Development Activities With DiranersenDiranersen remains among the more advanced tau-targeting therapies currently in development for AD, an area many researchers believe could complement existing amyloid-focused treatments or potentially provide improved disease-modifying benefits.

Biogen is developing diranersen in collaboration with Ionis Pharmaceuticals (IONS - Free Report) .

Biogen currently markets AD therapy Leqembi, which has been developed in collaboration with Japan-based Eisai, with the latter leading the clinical development and regulatory submissions.

Unlike Leqembi, which targets amyloid-beta plaques, diranersen is designed to reduce the production of tau, which is strongly linked to AD progression and cognitive decline.

Another marketed amyloid-targeting AD therapy is Eli Lilly’s (LLY - Free Report) Kisunla. Eli Lilly is also developing experimental candidates targeting tau as interest in alternative AD mechanisms continues to grow across the industry.

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

Fortinet is better positioned than Palo Alto to capture the AI-driven cybersecurity opportunity, supported by more justifiable valuation ratios and a stronger product portfolio. Fortinet's Q2 2026 TTM P/S is 32% lower and P/E is 80% lower than Palo Alto, despite similar revenue and FCF growth, indicating greater upside potential. Fortinet offers broader product breadth, more network security features, and superior competitive metrics, while Palo Alto leads in AI-related patents and strategic acquisitions.

Shares in Pentair plc are selling off following the departure of its CFO and the release of preliminary results which included a guidance cut. PNR stock was already down nearly 30% prior to the news. With PNR shares trading at the lowest price in years, the valuation looks attractive at first glance.

SAN DIEGO, July 15, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating Pentair plc (NYSE: PNR) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.

If you purchased Pentair securities and suffered losses on your investment, you are encouraged to contact Johnson Fistel to learn more about the investigation. Click here to join the investigation. For more information, contact Jim Baker at [email protected] or (619) 814-4471. There is no cost or obligation to you.

On April 28, 2026, Pentair projected that second-quarter sales would increase approximately 1% and that full-year sales would grow approximately 2% to 4%. During the accompanying earnings call, management acknowledged that Pool channel partners could reduce purchases during the second and third quarters but stated that the Company had evaluated a wider range of Pool revenue and income scenarios and incorporated those assumptions into its updated guidance. Management further stated that it had reflected the expected second- and third-quarter sell-in pressure in its guidance.

On July 14, 2026, after the market closed, Pentair disclosed that preliminary second-quarter sales were expected to be approximately $930 million, representing a year-over-year decline of approximately 17%, compared with its previous forecast of approximately 1% year-over-year growth. Pentair attributed the results primarily to the adverse impact of Pool channel inventory and estimated that Pool inventory destocking reduced second-quarter Pool sales by approximately $170 million and Pool segment income by approximately $105 million. The Company stated that the inventory realignment with major channel partners was “more pronounced” than previously estimated.

Pentair also substantially reduced its full-year outlook. The Company now expects annual sales to decline approximately 4% to 7%, compared with its previous forecast of 2% to 4% growth, and reduced its adjusted earnings-per-share guidance to approximately $4.60 to $4.80 from approximately $5.30 to $5.40. Pentair estimated that Pool channel destocking and inventory right-sizing would reduce full-year Pool sales by approximately $250 million and Pool segment income by approximately $155 million. The Company separately announced that Chief Financial Officer Nicholas Brazis had departed on July 10, 2026, and that former Pentair CFO Bob Fishman had been appointed interim CFO.

Following the disclosure, Pentair shares declined approximately 22% in premarket trading on July 15, 2026, after closing at $75.68 on July 14.

Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. The attorney responsible for this communication is Frank J. Johnson.

Contact:

Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations
(619) 814-4471
[email protected]