Track market-moving stories before they get noisy

Boston, Massachusetts--(Newsfile Corp. - May 18, 2026) - Block & Leviton is investigating Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) for potential securities law violations.

Shares of Carnival (NYSE:CCL | CCL Price Prediction) are up 9% in midday trading Wednesday while Norwegian Cruise Line (NYSE:NCLH) is rallying 11%.

Hilltop houses and Greek Orthodox church dwarfed by cruise ship anchored offshore, Gialos (aka Yialos), Symi (aka Simi), Rhodes, Dodecanese Islands, South Aegean, Greece, Europe.

getty

With the busy summer travel season upon us, the average price of gas in the U.S. is approaching $4.50 per gallon, a four-year high. Travel costs in general — including flights, lodging, food, car rentals and more — have increased 9% year over year, according to NerdWallet’s proprietary index based on Bureau of Labor Statistics data.

Travel costs have surged 9% year-over-year

U.S. Global Investors

Despite these higher costs, a projected 45 million Americans were expected to travel at least 50 miles from home this Memorial Day weekend, setting a new record. Close to 40 million drove, while some 3.7 million flew.

Bank of America’s summer survey found that 77% of Americans are planning to travel this summer, up from 74% last year and 72% in 2024.

Meanwhile, data from Airlines Reporting Corp., which settles airline ticket transactions, shows that April travel agency ticket sales topped $10 billion, a 15% increase from the same month last year. Total passenger trips settled through ARC hit 26.4 million.

MORE FOR YOU

Total amount of air travel transactions settled through ARC

U.S. Global Investors

Those are more than domestic numbers. The International Air Transport Association reported that Asia-Pacific carriers posted an 11.5% jump in demand in March, while European carriers grew 7.7% and Latin Americans airlines surged 12.1%. Traffic between Europe and Asia alone skyrocketed more than 29% as travelers rerouted around the conflict in Iran.

The TSA, meanwhile, is gearing up to screen 18.3 million passengers in the week ahead. And that’s before the FIFA World Cup kicks off on June 11, an event expected to draw some 6 million visitors.

Cruise Lines Are Filling Up FastI want to mention the cruise industry because the momentum there is extraordinary. According to the Cruise Lines International Association, global cruise passengers hit a historic 37.2 million last year, and the projection for this year is 38.3 million, which would be an increase of 4%. Nearly 90% of cruisers say they plan to sail again.

Viking is a good case study. The Switzerland-based company reported first-quarter revenue of $1.05 billion, up 17.5% from the same period last year. Its 2026 sailings are 92% booked. Effectively, it’s sold out. And 2027 is already 31% ahead of last year in advanced bookings.

We’ve been very pleased with Viking’s performance this year. Amid weakness in the broader leisure travel industry due to higher fuel costs, shares of Viking have gained approximately 18% as of May 21.

Shares of Viking have gained this year

U.S. Global Investors

What I find remarkable is that demand persists despite the hantavirus and Ebola headlines that would have torpedoed bookings just a few years ago. Outbreaks on cruise ships are making news, but I don’t believe they’re likely to slow the industry’s growth. Indeed, the Bank of America survey I noted earlier found that over a third of Americans plan to take a cruise in the next 12 months, with Gen Z leading at close to 60%.

Why Travel Still Feels Worth ItI’ve always believed that travel is one of the best investments you can make — and not just financially, but in your own health and well-being.

That’s why I want to share with you the results from a recent study, which found that each additional vacation a person takes reduces their risk for metabolic syndrome — high blood pressure, blood sugar and cholesterol levels — by nearly a quarter. Participants who vacationed more frequently had a lower risk of contracting heart disease and diabetes.

When you combine this science with data showing that younger Americans are prioritizing travel, you get a demand profile that looks far more resilient than traditional consumer spending. On average, Americans expect to spend more than $2,800 on travel this summer.

Headwinds Are Real, But Airlines Keep Adding SeatsI’m not dismissing the challenges. Fuel prices are sky-high right now, and consumer behavior is already shifting: The share of Americans planning a road trip of two or more hours dropped from nearly 70% to 56%.

Hotel rates are climbing too. HotelHub data shows the global average rate per night rose over 7% to $189, with U.S. rates hitting $226. Bookings to the U.S. from abroad dropped nearly 12%.

Sadly, the hotel industry’s own outlook on the FIFA World Cup is cautious, with roughly 80% of respondents in one survey saying bookings are tracking below expectations, partly due to visa barriers and geopolitical concerns.

The good news is consumers don’t appear to be canceling plans. While the consumer price index for airline fares actually fell 3.5% from 2019 to 2025 in real terms, low-cost carriers like Breeze, Frontier and JetBlue are aggressively adding capacity in markets vacated by Spirit Airlines, keeping competitive pressure on pricing even as demand grows.

Unlike other travel expenses, airfares have declined

U.S. Global Investors

Why The Investment Case Is Hard To IgnoreRight now, airlines, cruise operators and travel-adjacent companies are operating in an environment where consumers are telling us, through their wallets, that they will pay more, adapt their plans and blend their work with their vacations before they’ll give up the trip entirely.

Both the tailwinds (infrastructure investment, America 250 celebrations, FIFA) and the headwinds (visa restrictions, energy costs, geopolitics) are shaping a travel landscape that rewards companies with scale and pricing discipline.

Americans — and, increasingly, travelers worldwide — are voting with their feet. Smart investors should pay attention.

Is the captain of Norwegian Cruise Line (NCLH +2.07%) signaling smooth sailing for the cruising industry's worst performer? CEO John Chidsey recently bought 153,000 shares of the weather-worn cruise line operator, investing roughly $2.5 million in his own company on Friday of last week.

As seasoned investors know, there are plenty of acceptable reasons for an insider to lighten a position. Executives might need to raise money. It could also be just part of the portfolio diversification process. However, there is usually only one reason for insider buying.

Is Chidsey signaling that Norwegian Cruise Line -- or NCL, for short -- has bottomed out? Let's take a closer look at the market's ugliest major cruise line operator.

Image source: Getty Images.

Taking on water NCL stock has had a challenging month and year. With the general market clawing higher in May, at least 14 analysts have slashed their price targets on the country's third-largest publicly traded cruise line operator. There was also one outright downgrade.

The markdowns are fair. NCL issued a disappointing financial update on May 4. The first quarter itself was mixed but solid. Adjusted earnings more than doubled, giving the cruise line operator its biggest bottom-line beat in more than a year. Revenue rose 10%, just shy of what analysts were targeting, but still a reasonable offset to the bottom-line win.

The problem was guidance. With rising fuel costs jacking up operating costs and the war in Iran eating away at future bookings, NCL hosed down its full-year earnings guidance. Even with the monster beat, it now expects to earn between $1.45 and $1.70 per share on an adjusted basis for all of 2026. Earlier this year, it was modeling adjusted net income of $2.38 a share.

NCL stock is down 6% in May and trading 23% lower year to date. The stock's 1% decline over the past year may not seem so bad until you consider that larger rivals Carnival (CCL +3.77%) and Royal Caribbean (RCL +2.23%) have delivered double-digit gains over the same period. River cruise leader Viking Holdings (VIK 1.00%) has now officially doubled.

The industry is cruising. NCL has been moving in the opposite direction.

Coming up for air The silver lining for the bronze medalist among the three mainstream ocean liners is that NCL trades at the lowest forward earnings multiple. Even with the substantial reduction to its adjusted earnings outlook, NCL is trading for 11 times the midpoint of this year's refreshed guidance and just 8 times next year's Wall Street profit target.

Looking out to 2027, Carnival stock is trading for 10 times projected earnings. Royal Caribbean's year-ahead multiple is 13. These are discounts to the overall market, but not NCL's single-digit multiple. Viking hit an all-time high after posting blowout results a week after NCL's disappointing update and understandably trades at a premium multiple to its peers, given its differentiated product and wealthy clientele that is better suited to absorb any pricing increases.

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This brings us back to Chidsey. NCL's CEO is making a statement with last week's substantial purchase. The industry headwinds are clearly there. Fuel costs keep rising, and the geopolitical climate isn't kind to folks planning to hop on an ocean getaway for a few days, if not longer.

Buying NCL just because it's the cheapest cruise line stock isn't the right thesis to hitch your portfolio to these days. As I pointed out earlier this month, NCL was also the cheapest stock a year ago. We know how well that played out. However, the insider buying is interesting.

The near-term forecast is gloomy. When NCL hosed down its full-year outlook, it also cut its net yield forecast. This is a popular industry metric that scores net revenue per available passenger cruise day, with certain variable expenses backed out. It's now negative, another contrast to its better-performing peers.

However, let's see how the stock performs now that there is a key milestone of insider buying. As long as NCL stock isn't trading even lower the next time Chidsey is buying -- if there is a next time -- this could have been a clear signal that NCL is finally too cheap to ignore.

Norwegian Cruise Line (NCLH - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this cruise operator have returned +2.1%, compared to the Zacks S&P 500 composite's +5.1% change. During this period, the Zacks Leisure and Recreation Services industry, which Norwegian Cruise Line falls in, has gained 1.1%. The key question now is: What could be the stock's future direction?

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

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.

Norwegian Cruise Line is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of -23.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -32.5%.

For the current fiscal year, the consensus earnings estimate of $1.68 points to a change of -20.4% from the prior year. Over the last 30 days, this estimate has changed -26.1%.

For the next fiscal year, the consensus earnings estimate of $1.97 indicates a change of +17.2% from what Norwegian Cruise Line is expected to report a year ago. Over the past month, the estimate has changed -19.3%.

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 Norwegian Cruise Line.

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

12 Month EPS

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

In the case of Norwegian Cruise Line, the consensus sales estimate of $2.62 billion for the current quarter points to a year-over-year change of +4.2%. The $10.14 billion and $10.82 billion estimates for the current and next fiscal years indicate changes of +3.2% and +6.7%, respectively.

Last Reported Results and Surprise HistoryNorwegian Cruise Line reported revenues of $2.33 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $0.23 for the same period compares with $0.07 a year ago.

Compared to the Zacks Consensus Estimate of $2.34 billion, the reported revenues represent a surprise of -0.5%. The EPS surprise was +53.33%.

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

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

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

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

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

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

J.P.Morgan analyst Matthew R. Boss hosted Norwegian Cruise Line (NYSE:NCLH) CFO Mark Kempa and Head of Investor Relations Sarah Inmon in London.

Key TakeawaysThe analyst says that management described the revised fiscal year 2026 net yield guidance of -3% to -5% constant currency (CC), updated from the prior flat CC outlook, as a deliberately conservative stance aimed at rebuilding forecast credibility under new leadership.

This provides additional flexibility amid macro uncertainty, including Middle East-related impacts on European demand, adds the analyst.

Notably, the leadership changes have been significant, with CEO Chidsey and roughly 90% of the Norwegian brand leadership team appointed within the last 8–10 months.

Management also highlighted that third and fourth quarter outcomes are increasingly influenceable through early initiatives, particularly marketing efficiency, strong visibility from already-booked demand, and solid onboard spending trends in line with expectations.

The analyst writes that management emphasized marketing as a key driver of the turnaround. The company sees potential long-term revenue upside of $1.0 billion–$1.5 billion through improved brand positioning and customer targeting.

2027: Somewhat of A Transition YearManagement highlighted that the 2027 booking curve is currently tracking below historical levels (as of the 5/4 call), reflecting a phase of stabilization in the industry.

This environment allows the use of "base" pricing in forward curves, with scope to re-rate pricing higher as demand strengthens, supported by early "green shoots" into 2027.

Also, the company says that FY27 is expected to be a transition year, with a second-half weighted recovery, as commercial initiatives take time to flow through fully.

Management noted that 60%–65% of forward bookings are typically already locked in at any point, limiting near-term flexibility but creating a clearer setup for 2H27 strength and beyond.

CFO Kempa also framed 2028 as the first fully "clean" year fully attributable "to this management team."

Cost Saving OpportunityManagement highlighted an incremental $300 million–$500 million cost savings opportunity over the next 12–24 months, implying a full FY28 annualized run-rate, with 90%–95% flow-through to the bottom line.

This includes the already identified $125 million in annualized savings, plus roughly $275 million of additional upside by FY28. Importantly, this is over and above the prior $300 million ship-side, three-year cost program completed earlier.

These savings are expected to significantly expand margins, with every $80 million–$90 million translating into ~100 bps of EBITDA margin improvement.

Overall, this supports a path to 39%+ EBITDA margins by FY28 (vs. ~34% in FY26) and a potential mid-40% long-term EBITDA margin profile, says the management.

Analyst's Estimates & RatingThe analyst maintained FY26 adjusted EBITDA at $2.617 billion (vs. Street $2.559 billion) and raised FY27 adjusted EBITDA to $2.825 billion (vs. Street $2.803 billion), based on +0.4% constant-currency net yield growth.

Also, Boss remained Neutral and raised the December 2026 price forecast to $20 (from $14).

NCLH Price Action: Norwegian Cruise Line shares were up 0.41% at $18.20 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock 

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Norwegian Cruise Line (NCLH - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this cruise operator have returned +11.6% over the past month versus the Zacks S&P 500 composite's -1.6% change. The Zacks Leisure and Recreation Services industry, to which Norwegian Cruise Line belongs, has lost 1.9% over this period. Now the key question is: Where could the stock be headed in the near term?

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

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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

For the current quarter, Norwegian Cruise Line is expected to post earnings of $0.39 per share, indicating a change of -23.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.7% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.68 points to a change of -20.4% from the prior year. Over the last 30 days, this estimate has changed -6.8%.

For the next fiscal year, the consensus earnings estimate of $1.98 indicates a change of +18% from what Norwegian Cruise Line is expected to report a year ago. Over the past month, the estimate has changed -4.3%.

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 Norwegian Cruise Line.

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

12 Month EPS

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

In the case of Norwegian Cruise Line, the consensus sales estimate of $2.62 billion for the current quarter points to a year-over-year change of +4.2%. The $10.14 billion and $10.82 billion estimates for the current and next fiscal years indicate changes of +3.2% and +6.7%, respectively.

Last Reported Results and Surprise HistoryNorwegian Cruise Line reported revenues of $2.33 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $0.23 for the same period compares with $0.07 a year ago.

Compared to the Zacks Consensus Estimate of $2.34 billion, the reported revenues represent a surprise of -0.5%. The EPS surprise was +53.33%.

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

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

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

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

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

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

Hewlett Packard Enterprise Company (HPE) Presents at Bank of America 2026 Global Technology Conference Transcript

Hewlett Packard Enterprise Today

HPE

Hewlett Packard Enterprise

$48.20 +1.40 (+2.99%)

As of 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$17.49▼

$64.25Dividend Yield1.18%

P/E Ratio45.04

Price Target$64.65

Hewlett Packard Enterprise's NYSE: HPE blowout Q2 earnings and accelerated long-term targets expose a severe valuation mismatch in the artificial intelligence (AI) hardware sector as enterprise adoption broadens beyond hyperscalers.

With agentic AI workloads rapidly migrating to the network edge, legacy OEMs are capturing hyper-growth market share previously assumed to belong solely to pure-play pioneers.

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This structural pivot signals a new phase in the AI infrastructure build-out, validating a lower-multiple catch-up trade while forcing established high-growth incumbents to aggressively pivot their product stacks to defend their dominance.

The market is beginning to price in a new reality in which the AI build-out is no longer just a cloud-based story, creating distinct opportunities for both established and emerging leaders.

From Value Trap to AI TitanThe market has aggressively discounted traditional OEMs in the AI race, an assumption directly challenged by Hewlett Packard Enterprise's latest results.

The technology giant's Q2 2026 earnings report served as a powerful catalyst, sending the stock to all-time highs amid extreme demand for AI servers. Revenue rose 40% year-over-year to $10.7 billion, beating the $9.79 billion consensus estimate. The Cloud and AI segment spearheaded this outperformance, with revenues climbing 22.9% to $7.7 billion.

Hewlett Packard Enterprise Company (HPE) Price Chart for Friday, June, 12, 2026

The more telling metric, however, was the forward-looking order book. Hewlett Packard Enterprise booked $1.8 billion in new AI system orders, bringing cumulative AI systems bookings to $16.4 billion and ballooning its total AI backlog to a record $5.9 billion. This is not simply deferred revenue; it is a clear indicator that enterprise-level AI adoption is accelerating.

President and CEO Antonio Neri reinforced this view, citing zero order cancellations and a significant pull-forward of long-term financial targets. Hewlett Packard Enterprise raised its fiscal 2026 revenue growth guidance to a range of 29% to 33% and boosted its free cash flow forecast by 75% to a minimum of $3.5 billion.

This operational excellence is directly translating into shareholder returns and is a fundamental underpinning for the stock's re-rating. The surge in cash flow from operations, which hit $1.4 billion for the quarter, provides robust support for Hewlett Packard Enterprise's $0.1425 quarterly dividend.

Hewlett Packard Enterprise Stock Forecast Today12-Month Stock Price Forecast:
$64.65
32.30% Upside

Moderate Buy
Based on 21 Analyst Ratings

Current Price$48.86High Forecast$80.00Average Forecast$64.65Low Forecast$26.00Hewlett Packard Enterprise Stock Forecast Details

For institutional investors, this combination of hyper-growth and a stable yield is a compelling proposition. The acquisition of Juniper Networks was a critical strategic move.

Enterprise AI is not just about compute; it requires a sophisticated, high-speed networking fabric to connect GPU clusters.

The Juniper integration positions Hewlett Packard Enterprise to offer a complete, end-to-end solution, a significant competitive advantage when dealing with large corporate clients that demand integrated architecture and support.

At a forward price-to-earnings multiple of just 15.6x, Hewlett Packard Enterprise presents a clear valuation disconnect compared to its peers, offering an asymmetric risk-reward profile for investors betting on the broadening of AI infrastructure.

Supermicro's Counter-Offensive: Defending the Moat at the EdgeSuper Micro Computer Today

SMCI

Super Micro Computer

$30.46 -1.51 (-4.72%)

As of 04:00 PM Eastern

52-Week Range$19.48▼

$62.36P/E Ratio16.12

Price Target$38.57

While the ascent of Hewlett Packard Enterprise captures the market's attention, it would be a mistake to discount the architect of the initial AI server boom, Super Micro Computer NASDAQ: SMCI. Supermicro remains a dominant force, but the competitive landscape is shifting.

The hardware innovator faces headwinds from both component cost pressures and a customer base increasingly evaluating next-generation platforms, which are delaying purchasing cycles. The encroachment from legacy OEMs like Hewlett Packard Enterprise puts direct pressure on Supermicro to innovate and defend its market leadership.

In response, Supermicro is executing a strategic pivot from a hyperscale hardware assembler to a full-stack infrastructure provider with a sharp focus on the network edge. This is a direct counter-offensive to capture the next wave of AI deployments in space-constrained enterprise environments such as retail, manufacturing, and logistics.

Supermicro recently launched new server lines powered by AMD EPYC 4005 processors, specifically designed for compact inferencing systems. The hardware specialist is also rolling out its self-contained Super AI Station, a liquid-cooled, all-in-one solution designed for departmental or edge deployments without traditional data center infrastructure.

Super Micro Computer Stock Forecast Today12-Month Stock Price Forecast:
$38.57
27.40% Upside

Hold
Based on 18 Analyst Ratings

Current Price$30.28High Forecast$64.00Average Forecast$38.57Low Forecast$24.00Super Micro Computer Stock Forecast Details

The market is increasingly acknowledging this strategic recalibration. In a move that appeared slightly behind the curve, Mizuho elevated its price target for Supermicro to $44, a figure already eclipsed by Supermicro's rapid stock price appreciation in the following sessions.

Short-term volatility is likely as analysts scramble to recalibrate their financial models to reflect these emerging sector dynamics; nevertheless, institutional participation remains elevated, indicating that sophisticated capital remains focused on Supermicro's structural evolution.

While Supermicro may cede some market share in large, generalized enterprise deals to players like Hewlett Packard Enterprise, its deep engineering expertise and speed to market with cutting-edge technology give it a strong advantage in specialized, high-performance, and edge-optimized systems.

The challenge for Supermicro is to maintain its growth trajectory while navigating potential margin compression as it competes more directly with diversified, high-margin OEMs.

A Tale of Value Vs. VelocityThe divergence between Hewlett Packard Enterprise and Supermicro highlights the maturation of the AI market. The first phase was a land grab for GPU capacity, dominated by hyperscalers and a few specialized hardware providers.

This new phase is about enterprise and edge deployment, where factors like integrated networking, global support, security, and total cost of ownership become paramount. This shift plays directly to the strengths of established players like Hewlett Packard Enterprise, which have spent decades building relationships and infrastructure to serve the Fortune 500.

The expanding total addressable market at the network edge suggests this is not a zero-sum game. Both challengers appear poised to benefit from durable, long-term tailwinds.

The key difference for investors lies in their valuation and risk profiles. Hewlett Packard Enterprise offers a value-oriented catch-up trade, backed by a solid dividend and accelerating free cash flow, as the market re-prices it from a legacy hardware name to an AI infrastructure leader. Supermicro offers continued exposure to hyper-growth but carries execution risk as it fends off new competition while successfully penetrating the edge market.

Investors looking to capitalize on this structural shift in the AI hardware market might consider the distinct theses for each name. Those prioritizing a margin of safety and income generation may find the fundamental momentum and valuation of Hewlett Packard Enterprise compelling. Growth-focused investors, on the other hand, could monitor Supermicro's traction with its new edge computing platforms as a key indicator of its ability to sustain its leadership position in a more competitive environment.

Should You Invest $1,000 in Hewlett Packard Enterprise Right Now?Before you consider Hewlett Packard Enterprise, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hewlett Packard Enterprise wasn't on the list.

While Hewlett Packard Enterprise currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.

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

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium also includes the Zacks Style Scores.

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

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

The Style Scores are broken down into four categories:

Value 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 is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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

That's where the Style Scores come in.

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

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.

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

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

Stock to Watch: Hewlett Packard Enterprise (HPE - Free Report) Headquartered in Spring, TX, Hewlett Packard Enterprise Company was formed as a result of the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.

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

Additionally, the company could be a top pick for growth investors. HPE has a Growth Style Score of B, forecasting year-over-year earnings growth of 29.9% for the current fiscal year.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.11 to $2.52 per share. HPE boasts an average earnings surprise of +16%.

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

Did you analyze how Hewlett Packard Enterprise (HPE - Free Report) fared in its international operations for the quarter ending April 2026? Given the widespread global presence of this information technology products and services provider, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

While delving into HPE's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The recent quarter saw the company's total revenue reaching $10.68 billion, marking an improvement of 40% from the prior-year quarter. Next, we'll examine the breakdown of HPE's revenue from abroad to comprehend the significance of its international presence.

Exploring HPE's International Revenue PatternsAsia Pacific and Japan generated $2.35 billion in revenues for the company in the last quarter, constituting 22% of the total. This represented a surprise of +16.44% compared to the $2.01 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific and Japan accounted for $1.99 billion (21.4%), and in the year-ago quarter, it contributed $1.59 billion (20.8%) to the total revenue.

Europe, Middle East and Africa accounted for 35.4% of the company's total revenue during the quarter, translating to $3.78 billion. Revenues from this region represented a surprise of +18.36%, with Wall Street analysts collectively expecting $3.19 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $3.49 billion (37.5%) and $2.74 billion (35.9%) to the total revenue, respectively.

Prospective Revenues in International MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Hewlett Packard Enterprise will post revenues of $11.95 billion, which reflects an increase of 30.8% the same quarter in the previous year. The revenue contributions are expected to be 18.7% from Asia Pacific and Japan ($2.23 billion), and 29.6% from Europe, Middle East and Africa ($3.53 billion).

For the full year, the company is expected to generate $45.03 billion in total revenue, up 31.3% from the previous year. Revenues from Asia Pacific and Japan and Europe, Middle East and Africa are expected to constitute 18.5% ($8.32 billion), and 29.3% ($13.19 billion) of the total, respectively.

Concluding RemarksThe dependency of Hewlett Packard Enterprise on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, Hewlett Packard Enterprise holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Hewlett Packard Enterprise's Recent Stock Market PerformanceOver the past month, the stock has seen an increase of 56.9% in its value, whereas the Zacks S&P 500 composite has posted an increase of 1.9%. The Zacks Computer and Technology sector, Hewlett Packard Enterprise's industry group, has ascended 3.7% over the identical span. In the past three months, there's been an increase of 128% in the company's stock price, against a rise of 8.5% in the S&P 500 index. The broader sector has increased by 19.2% during this interval.

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

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

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

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

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

How Style Scores Work with the Zacks Rank 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.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

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

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

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

Stock to Watch: Hewlett Packard Enterprise (HPE - Free Report) Headquartered in Spring, TX, Hewlett Packard Enterprise Company was formed as a result of the split of Hewlett-Packard Company into two separate entities – one focusing on the enterprise-facing hardware and service business and the other focusing on the consumer-facing computer and printer segments.

HPE is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 13.35; value investors should take notice.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.99 to $3.41 per share. HPE also boasts an average earnings surprise of +16%.

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

Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Hewlett Packard Enterprise (HPE) and Advanced Micro Devices (AMD). But which of these two stocks presents investors with the better value opportunity right now?

Key Takeaways PEP is restaging brands like Lay's and Tostitos, helping lift demand across its portfolio.PEP's gains are driven by shelf-space expansion, innovation and 2% North America Foods volume growth.PEP's gains are driven by shelf-space expansion, innovation and 2% North America Foods volume growth. PepsiCo, Inc. (PEP - Free Report) is betting on an extensive brand restaging strategy to reinvigorate demand and accelerate organic sales growth. The company has been refreshing key brands, enhancing value offerings, expanding shelf space and introducing innovative products across its snacks and beverages portfolio. Management noted that these initiatives are already yielding encouraging results, with North America Foods returning to volume growth and consumer engagement improving across several core brands.

PepsiCo’s strategy goes beyond pricing and focuses on a holistic approach to brand building. The company has revamped flagship brands such as Lay’s and Tostitos, increased investments in innovation and strengthened its presence in away-from-home channels. These efforts helped drive a 2% volume increase in North America Foods in the first quarter, while unit sales rose 4%, adding roughly 300 million consumption occasions compared with the prior-year period. Management also highlighted gains in household penetration and improving market-share trends, signaling that consumers are responding positively to the refreshed brand positioning.

Looking ahead, PepsiCo remains optimistic about its organic sales outlook as shelf resets, distribution gains and innovation rollouts continue through the remainder of the year. Management expects growth to trend toward the upper end of its 2%-4% organic revenue growth guidance range in the back half of 2026, supported by improving momentum in North America Foods, resilient international demand and continued progress in beverages. While macroeconomic uncertainty and competitive pressures remain challenges, the company believes its "Hungry for Growth" strategy, combined with stronger brand execution and consumer-focused innovation,  can drive sequential improvement in organic sales and support sustainable long-term growth.

KDP & KO Drive Growth Through Innovation and Brand StrengthKeurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) are driving organic growth through innovation, brand strength and expanded beverage portfolios in a highly competitive global market.

Keurig Dr Pepper is leveraging brand innovation, portfolio expansion and targeted marketing investments to support organic sales growth. The company continues to introduce new product offerings, strengthen its coffee and cold beverage platforms, and expand distribution across key markets. These initiatives are helping drive consumer engagement and market-share gains, positioning Keurig Dr Pepper to sustain growth despite a competitive and evolving beverage landscape.

Coca-Cola’s performance is relying on brand-building efforts, product innovation and premiumization strategies to fuel organic sales momentum. The company continues to refresh its portfolio through new product launches, expand its presence in high-growth beverage categories and invest in its iconic brands. Combined with its global distribution network and strong marketing capabilities, these initiatives are helping Coca-Cola strengthen consumer demand and support long-term revenue growth.

PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 13.8% in the past three months compared with the industry’s decline of 3.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 16.29X, below the industry’s average of 19.0X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.1% and 3.2%, respectively. The company’s EPS estimates for 2026 and 2027 have moved northward in the past seven days.

Image Source: Zacks Investment Research

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

If you have $1,000 that you can afford to invest in the stock market, dividend stocks can help make the most of your money, specifically those that are trading at low valuations. While buying Nvidia and investing in hot tech stocks can be alluring, they can also be volatile investments. You can set yourself up for safer returns by targeting much more reasonably priced options instead.

Three excellent dividend stocks that can make for more practical investments right now include PepsiCo (PEP +0.38%), AT&T (T +2.35%), and Pfizer (PFE +0.10%). Let's take a close look at these businesses and why these stocks look undervalued today.

Image source: Getty Images.

PepsiCo PepsiCo is a leader in the soft drink and snack market. Although it hasn't generated much growth of late, this is still a highly stable company to invest in. In each of the past three years, its revenue has been in excess of $90 billion, and earnings have been north of $8 billion.

This is also the 54th consecutive year that the company has increased its payout, which puts it in the category of a Dividend King. Not many stocks belong to the illustrious club, which features many of the safest income stocks to own. At 4.2%, PepsiCo also already offers a fairly high yield as it is; it's four times that of the S&P 500 average, which is just over 1%.

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While PepsiCo's stock has declined this year, it's an intriguing option to hold on to for the long term, given the value it possesses. Currently, it's trading at a forward price-to-earnings (P/E) multiple of 16, which is based on analysts' expectations of its future earnings.

AT&T Another excellent dividend stock to consider is AT&T. The telecom giant pays 4.5%, which is an even higher payout than PepsiCo. While the company hasn't raised its dividend in years, with AT&T's financials looking strong of late, it may only be a matter of time before it gets back to growing its payout. This year, the company projects its free cash flow to total at least $18 billion, which is far higher than the roughly $8.2 billion that it issues in dividends over the course of 12 months.

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At a forward P/E of just 11, the stock is incredibly cheap when compared to the average S&P 500 stock, which trades at 22 times its expected future earnings. With some great value and a high dividend, AT&T looks to be an underrated buy right now. This is a low-volatility investment you can safely hold on to, even amid uncertainty in the markets.

Pfizer Arguably, one of the best dividend stocks to own right now is Pfizer. At 6.7%, it's hard to find a payout this high without taking on high risk. The stock's payout ratio is over 100%, which is likely to spook investors, but that doesn't tell the whole story. This past year, the company incurred not only one-time acquisition-related expenses but also restructuring costs as it made its operations leaner and more efficient. Without those items, its financials would look much better, and the dividend would appear more sustainable.

Investors are, however, also concerned about what lies ahead for Pfizer due to patent cliffs around multiple drugs, which could weigh on its top line and thus result in an even worse bottom line. But with investments into growing its pipeline and adding valuable assets to expand its growth opportunities (hence the acquisitions), I believe the company is doing what is necessary to combat the challenges ahead.

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While its results remain stable right now, investors may be looking for further proof that the business is on the right track before buying the healthcare stock. But with it trading at a forward P/E of just under nine, there's some solid margin of safety that comes with this investment, which can make it worth the risk.

, /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP) today announced that it will issue its second-quarter 2026 (ending June 13) financial results and other related information on Thursday, July 9, 2026 by posting the following materials and links on the company's website at: www.pepsico.com/investors.

Form 10-Q, Press Release, Prepared Management Remarks at approximately 6:00 a.m. EDT Live question and answer session for analysts with Ramon Laguarta, Chairman and Chief Executive Officer, and Steve Schmitt, Chief Financial Officer at 8:15 a.m. EDT About PepsiCo 

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

SOURCE PepsiCo, Inc.

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Replacing $36,000 a year in income is roughly equivalent to generating the cash flow from a maximum Social Security benefit for a single retiree, or about $3,000 a month before taxes. A 66-year-old with $850,000 in a taxable brokerage account can build that income stream using five Dividend Aristocrats, relying on companies with decades-long records of raising dividends rather than reaching for yield through covered-call strategies, mortgage REITs, or other higher-risk income vehicles.

The math is straightforward: generating $36,000 annually from an $850,000 portfolio requires a blended yield of about 4.2%. That target falls comfortably within the conservative income tier and does not require exotic investments or aggressive assumptions.

The Five-Name Basket Each position is roughly $170,000, equal-weighted. The current yields, paired with the consecutive-increase streaks that earn each name its Aristocrat or Dividend King label:

Coca-Cola (NYSE:KO | KO Price Prediction) yields 2.6% with a 60-plus year streak. The quarterly payout just stepped up from $0.51 to $0.53. PepsiCo (NASDAQ:PEP) yields 3.9% after its 54th consecutive annual hike, a 4% raise that takes the quarterly to $1.42. Johnson & Johnson (NYSE:JNJ) yields 2.3%, a 64th straight increase, and FY 2025 free cash flow of $19.7 billion covering a $12.4 billion dividend bill 1.6 times over. Chevron (NYSE:CVX) yields 3.8% at $1.78 quarterly and has now returned over $5 billion to shareholders for 16 straight quarters. Altria (NYSE:MO) yields 5.8%, the high-yielder of the group, with FY 2026 EPS guided to $5.56 to $5.72. An equal-weighted blend lands near 3.5%, which on $850,000 produces closer to $30,000. Tilting the basket modestly toward Chevron, PepsiCo, and Altria (each held to roughly 20% of the portfolio, with Altria capped there because tobacco yield reflects real secular headwinds) pushes the blended yield to the 4.2% needed to clear $36,000. Every name carries a payout ratio screen of roughly 65% or below on free cash flow.

What the Other Yield Tiers Cost You The conservative path above requires the most capital. Step up the yield and the capital requirement drops fast.

Moderate tier (5% to 7%): preferred shares, REITs, covered-call equity funds. $36,000 divided by 0.06 equals $600,000. Dividend growth largely stalls and several of these vehicles cap your upside. Aggressive tier (8% to 14%): business development companies, mortgage REITs, leveraged option-income funds, high-yield bond funds. $36,000 divided by 0.10 equals $360,000. Distributions can be cut, principal often erodes, and the income rarely keeps pace with inflation. CPI just printed +0.6% month-over-month, so flat payouts lose ground in real terms. The Trade Most Retirees Underweight A portfolio yielding 3.5% and growing its income stream by 8% annually can double that income in roughly nine years. By contrast, a portfolio yielding 12% with no growth remains at the same income level and may ultimately produce less if distributions are reduced and net asset value declines over time. Coca-Cola’s quarterly dividend has increased from $0.35 in 2016 to $0.53 today, while Johnson & Johnson’s quarterly payout has risen from $0.75 to $1.34 over the same period. With the 10-year Treasury yielding about 4.5%, a basket of Dividend Aristocrats still offers a compelling combination of current income, dividend growth, and long-term capital appreciation that many static high-yield strategies struggle to match over a decade.

Three Things to Do Before You Build the Position Calculate your actual annual spending, not your salary. Many retirees discover they need to replace less than $36,000 once mortgage and payroll taxes drop off. Compare the 10-year total return of this Aristocrat basket against a 10% high-yield covered-call fund. JNJ alone returned 163% over ten years and CVX returned 176%; high-distribution funds rarely match that on total return. Hold the basket in a taxable account so the dividends qualify for the 15% to 20% rate. Most high-yield option-income products distribute ordinary income, which can cost a retiree in the 22% bracket several thousand a year versus this five-name approach.

PepsiCo has 41 trucks on the road in Arizona, Texas and Arkansas, bringing the technology into the mainstream.

PepsiCo is rated a strong buy, offering a 30% upside and a compelling 4.2% starting yield at current valuations. Recent quarters show accelerating organic growth, improved operating margins, and broad-based segment contributions despite prior underperformance. PEP trades at a discounted forward P/E of 15.4–16.3, well below its historical mean, while consensus EPS expectations continue to rise.

Pilot program integrates collaborations across industry partners to offset farmer investments in soil conservation practices

, /PRNewswire/ -- Compeer Financial is teaming up with PepsiCo (NASDAQ: PEP) and other industry partners to offer a pilot leasing program for strip-till equipment, helping offset upfront financial costs for farmers implementing soil conservation practices on their farms. Through RegenLend, Compeer Financial will lease the equipment to farmers, and PepsiCo will cover two annual lease payments to share the cost of investment with farmers. The Environmental Defense Fund (EDF) aided in the development of this program, and the Soil and Water Outcomes Fund (SWOF) are operational partners in its management and operations.

Through RegenLend equipment will be leased to farmers. PepsiCo will cover two annual lease payments to share the cost of investment with the farmers.

PepsiCo and Compeer Financial launch new pilot leasing program for farmers. "As a leading farm lender, we listen to the priorities and concerns of farmers we serve. Soil conservation practices continue to evolve and opportunities abound for farmers to learn about and improve soil health. RegenLend is a program designed to use supply chain incentives to help bridge the financial investment in soil health technology, such as new strip tillage systems, that can be a burden to farmers' bottom line," said Bryan Stanek, managing director of new markets with Compeer Financial. "We are proud to work with PepsiCo in creating unique programs like RegenLend as they are committed to supporting our farmers in their journey to realizing the long-term gains their land and operations can experience from improved soil health."

Strip-till can be an initial steppingstone for farmers exploring soil conservation practices to improve soil health on their farms. Strip tillage can improve soil health and contribute to long-term yield and water retention enhancements. The practice also can deliver fuel and labor cost savings on the farm through reduced trips across the field, improved efficiency in preparing the seedbed for planting and more precise fertilizer placement.

However, strip-till also comes with an upfront investment in equipment that can present a barrier to many farmers. The new RegenLend program addresses this barrier by leveraging a unique collaboration between the farmer, an ag lender and the food value chain.

"We are constantly looking for ways to collaborate with companies across the value chain to support farmers' efforts in producing a sustainable food supply. The RegenLend program is one example of how we are collaborating on unique programs that help farmers navigate rising costs and weather challenges so together we can build a more resilient food system," said Caitlin Colegrove, PepsiCo's sustainable agriculture lead for North America.

"Every farmer's conservation journey is different, and they need a variety of solutions to succeed," said Vincent Gauthier, senior manager of agriculture at EDF. "Financing that helps farmers invest in conservation equipment and technology is a critical part of that toolbox."

Using its expertise in innovative market-based sustainability solutions, EDF collaborated with Compeer Financial, SWOF and PepsiCo to develop the RegenLend pilot program to unlock investments and help farmers navigate the transition to conservation farming practices.

Dan Yeoman, managing director of SWOF, said, "Farmers are increasingly looking to practices like strip-till that improve soil health, reduce erosion, and preserve their land for the next generation. Innovative programs like RegenLend provide new, scalable pathways to support farmers through that transition — delivering long-term benefits for their operations, their watersheds, and the food supply chain."

In its initial pilot year, the RegenLend program is available to farmers interested in leasing strip-till equipment to implement soil conservation practices on at least 600 acres. More information is available at compeer.com/RegenLend.

Media Contact:
Rachel Kent
[email protected] 

About Compeer Financial
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural communities. The $36.1 billion organization provides loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the Upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America, while providing personalized service and expertise to clients and the agriculture industry.

Compeer Financial is the third largest cooperative of the Farm Credit System, a nationwide network of lending institutions supporting agriculture and rural communities with reliable, consistent credit and financial services.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About Soil and Water Outcomes Fund
The Soil and Water Outcomes Fund (SWOF) partners with public and private organizations to support farmer adoption of conservation practices that deliver measurable environmental outcomes within priority watersheds and partner supply sheds. Since 2020, SWOF has enrolled more than 3 million acres across 20 states, generating over 2.5 million metric tons of CO2e reductions and removals, over 20 million pounds of nitrogen runoff reductions, and 1.5 million pounds of phosphorus reductions. SWOF is a subsidiary of the Iowa Soybean Association.

About Environmental Defense Fund
With more than 3 million members, Environmental Defense Fund creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships to turn solutions into action. edf.org

Compeer Financial is an equal opportunity employer and provider, and an equal credit opportunity lender. This is not a commitment to lend, lease or extend credit. There is no guarantee that all applicants will qualify. Other restrictions, program and underwriting criteria apply. Terms, conditions and programs are subject to change without notice.

Contact:
Jill Carlson, Public Relations Strategist
[email protected] or (309) 502-2805

SOURCE PepsiCo, Inc.

Hilton Worldwide Holdings Inc. (HLT) Q1 2026 Earnings Call Transcript

Comerica Bank lessened its holdings in Hilton Worldwide Holdings Inc. (NYSE: HLT) by 38.8% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 40,991 shares of the company's stock after selling 25,950 shares during the period. Comerica Bank's

MCLEAN, Va.--(BUSINESS WIRE)--Hilton Worldwide Holdings Inc. (NYSE: HLT) (“Hilton”) announced today that its indirect subsidiary Hilton Domestic Operating Company Inc. (the “Issuer”) intends to offer $1 billion aggregate principal amount of the Issuer's Senior Notes due 2031 (the “Notes”). The Issuer intends to use the net proceeds of the offering to repay $450 million of borrowings under the Issuer's senior secured revolving credit facility, and the remainder for general corporate purposes. Th.

As Americans hit the road during the country’s 250th anniversary, Hilton is celebrating all summer long. Next week, Hilton is kicking off Hilton Honors America Experiences with a dozen unexpected and unforgettable road trip experiences for only 250 Hilton Honors Points per trip, Hampton by Hilton stays and gas included.

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Hampton by Hilton is the perfect travel partner for any road trip. In fact, when traveling on major U.S. highways, the nearest Hampton hotel is no more than 30 minutes away on average.

These road trip packages, available on a first-come, first-served basis, will drop on the Hilton Honors Experiences platform starting on May 26th. From gazing at the starry sky in Utah or spectacular fireworks over the nation’s capital to joining quirky fan festivals for UFO or pickle enthusiasts to discovering America during an ultimate two-week open road adventure – 2026 Jeep® Grand Cherokee included – new Hilton Honors America Experiences will be added throughout the summer.

“In this milestone year celebrating America’s 250th anniversary, the open road feels especially meaningful – and Hilton Honors is proud to put our members at the center of it,” said Mark Weinstein, chief marketing officer, Hilton. “Through Hilton Honors America Experiences, we’re offering once-in-a-lifetime moments for just 250 Points, honoring the timeless American tradition of road trips, shared discovery, and the kind of spontaneous adventures that happen when you pile into the car and see where the journey takes you – with a great stay along the way that helps you focus on what matters most.”

Hilton Honors, the award-winning guest loyalty program, is free to join, and 250 Points can be earned with just a single night’s stay at a Hampton, allowing nearly anyone the opportunity to redeem their Points for these limited Hilton Honors America Experiences.

With nearly 2,400 locations in the United States, Hampton is the perfect travel partner for any road trip and a natural fit for the Hilton Honors America Experiences. In fact, when traveling on major U.S. highways, the nearest Hampton hotel is no more than 30 minutes away on average.

“For generations of travelers, Hampton has offered a reliable, trusted home base that families – including their four-legged companions – can count on at the end of a long drive,” said Shruti Gandhi Buckley, senior vice president and global brand leader, Hampton by Hilton. “As the country marks its 250th anniversary, we are proud to play a role in a once-in-a-lifetime event that feels authentic to Hampton’s legacy as a trusted stop on the road. Wherever the road leads this summer, Hampton is here to provide the comfort, convenience and welcoming service that make every mile easier.”

Here’s a preview of some of the adventures hitting the Hilton Honors Experiences platform in the coming weeks:

The Ultimate “Pursuit of Happiness” Open Road Adventure
A 14-day, build-your-own journey that brings the classic American road trip to life, including a 2026 Jeep® Grand Cherokee and free bp fuel for a year*. Combine bucket-list landmarks with blink-and-you’ll-miss-it roadside stops and unexpected detours along the way with the help of GetYourGuide. With stays at roadside-favorite Hampton along your chosen route, this adventure offers new ways to explore both iconic destinations and lesser-known gems from sea to shining sea.

Flora-Bama Fishing Rodeo
For one unforgettable summer weekend in early June, all eyes (and lines) are on the Flora‑Bama Fishing Rodeo. One of the largest fishing tournaments in the country, it draws crowds by the thousands – think big catches, bigger personalities and stories that get better with every retelling. Guests will have the opportunity to chase their own headline-worthy catch in Flora-Bama for the daily weigh-ins, where every fish feeds the frenzy and every moment feels like part of the show.

The Great American Outdoor Adventure
This scenic road trip through Zion and Bryce Canyon delivers peak Southwest stunners – towering cliffs, endless vistas, and views that demand a camera roll clear-out this summer. The grand finale? A private, astronomer-led stargazing session under some of the darkest skies in the country, where the stars absolutely steal the show.

VIP (Very Important Pickle) at the Picklesburgh Festival
Get ready to relish every moment. For one unforgettable mid‑July weekend, Pittsburgh goes full brine as Picklesburgh transforms the city into a pickle lover’s playground – complete with pickle beer, pickle ice cream, pickle cocktails and more creative crunch than anyone saw coming. Enjoy VIP access to the festival’s most sought-after events, including a pickle tasting, entry into “if you dare” contests like pickle bobbing and pickle juice drinking and even a spin on the legendary mechanical pickle. Capped off with a year’s supply of festival‑favorite pickles, this getaway is a big dill.

Celebrating America’s Birthday
For those who love a celebration, Washington D.C. will turn into the world’s largest birthday party on July 4th This Hilton Honors America Experience will give elevated access to the Great American State Fair, which transforms the National Mall in Washington, D.C., into the country’s biggest celebration of all things Americana with food, exhibits and cultural showcases from all 50 states. From coast-to-coast flavors to hometown traditions, it’s the ultimate mash-up of what makes America, America, served up in one unforgettable setting. The next day, enjoy early access seating for the 4th of July fireworks extravaganza, a star-spangled‑way to celebrate Independence Day right where history happens.

The American Coaster Fast Lane Road Trip
Built for thrill seekers who measure vacations in first drops and final loops, this high-adrenaline Hilton Honors America Experience takes riders on a four-day sprint through some of the country’s most legendary amusement parks this summer. Guests will conquer record-breaking coasters and follow an enthusiast-level itinerary curated by American Coaster Enthusiasts (ACE), receive an ACE membership and a hands-free action camera to capture those adrenaline-filled days.

Roswell UFO Festival
Things get a little extraterrestrial in Roswell, N.M., where VIP access to the Roswell UFO Festival unlocks VIP fun at the International UFO Museum & Research Center and unforgettable moments at the can’t-miss drone show this July. The guest will dive headfirst into the action, serving as judge for the Pet and Human Costume Contests and then proudly joining the UFO parade.

Every trip includes accommodations at Hampton by Hilton hotels, a Hampton-themed road trip starter kit and a $250 bp fuel card.

How Hilton Honors America Experiences Work
Hilton Honors America Experiences will drop this summer on the Hilton Honors Experiences website, and when they do, they won’t last long. Members can visit Hilton Honors Experiences to explore upcoming experiences. To be among the first to know when new experiences go live, members can download the Hilton Honors app and enable push notifications. Drop announcements will also be shared across Hilton social channels. Terms and conditions apply.

Enrollment in the award-winning Hilton Honors program is free and immediately unlocks access to exclusive benefits, such as member-only discounts, Points toward free night stays, no blackout dates and access to once-in-a-lifetime experiences like these. The latest evolution of Hilton Honors makes earning status even more achievable and rewarding, opening the door for more travelers to enjoy added recognition, perks and flexibility on every stay. Members can also reach elite status faster, now making Hilton Honors Gold status the most valuable mid-tier, all while keeping the benefits Gold and Diamond members appreciate the most.

Hilton Celebrates America’s 250th Anniversary All Summer Long
Hilton is celebrating the nation’s 250th anniversary all summer long through a range of activations that highlight the joy of travel. In addition to the Hilton Honors America Experiences, Hilton is also bringing the milestone to life through on‑property activations and programming across its portfolio, creating meaningful moments that honor the people, places and stories that shape the thrill of travel from coast to coast.

*A year’s worth of bp® fuel, provided as a $5,000 bp® gift card(s), to be used toward fuel purchases at participating bp locations.

About Hilton
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 27 world-class brands comprising more than 9,200 properties and over 1.3 million rooms, in 144 countries and territories. Dedicated to fulfilling its founding vision to fill the earth with the light and warmth of hospitality, Hilton has welcomed over 4 billion guests in its more than 100-year history. Named as the No. 1 World’s Best Workplace by Great Place to Work and Fortune, Hilton aims to create the best culture for its 500,000 team members around the world. Hilton has introduced industry-leading technology enhancements to improve the guest experience, including Digital Key Share, automated complimentary room upgrades and the ability to book confirmed connecting rooms. Through the award-winning guest loyalty program Hilton Honors, the more than 250 million Hilton Honors members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy. With the free Hilton Honors app, guests can book their stay, select their room, check in, unlock their door with a Digital Key and check out, all from their smartphone. Visit stories.hilton.com for more information, and connect with Hilton on Facebook, LinkedIn, Instagram and YouTube.

About Hilton Honors
Hilton Honors is the award-winning guest loyalty program for Hilton’s world-class brands comprising 9,200 properties in 144 countries and territories, with more than 250 million members. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits – from the Points & Money slider and exclusive member discounts to no blackout dates and the Fifth Night Free perk on reward stays booked with all Points. Members can earn and redeem Points for free nights, purchases on Amazon, exclusive experiences and charitable contributions, including through select co-branded credit cards. Members also have access to contactless technology exclusively through the industry-leading Hilton Honors app, where they can check in, choose and access their room using Digital Key. The next evolution of the Hilton Honors program makes earning elite status even more achievable and rewarding and includes the introduction of the new Diamond Reserve tier. Hilton Honors is free to join, and travelers can enroll online at hiltonhonors.com. Learn more about the program at stories.hilton.com/hiltonhonors, and follow Hilton Honors on Facebook, X and Instagram.

About Hampton by Hilton
As the No. 1 ranked lodging franchise for the last 17 years by Entrepreneur®, Hampton by Hilton — including Hampton Inn by Hilton and Hampton Inn & Suites by Hilton — serves quality-driven and value-conscious travelers at more than 3,200 properties in 46 countries and territories around the globe. The brand continues to lead its segment by providing guests with high quality, thoughtfully designed accommodations and amenities, such as modern, spacious rooms and free hot breakfast featuring the signature Hampton Waffle. Hampton by Hilton is committed to delivering an exceptionally friendly and authentic service, all backed by the 100% Hampton Guarantee™. Experience a best-in-class stay at Hampton by Hilton by booking at hampton.com or through the industry-leading Hilton Honors app. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits. Learn more about Hampton by Hilton at stories.hilton.com/hampton, and follow the brand on Facebook, Instagram and X.

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