Track market-moving stories before they get noisy

Investors looking for dividends will likely be disappointed by the yield of the S&P 500 index. In the wake of its long rally, the broad market index yields a paltry 1%. You calculate any investment's yield by dividing the payout by the investment's price. Hence, when the price grows faster than the dividend, the yield shrinks.

By contrast, in 1982, amid a severe recession, when share prices fell, the index yielded 6.2%. More recently, in January 2009, during the Great Recession, its yield rose to 3.2%.

Still, you can find individual stocks within the index today that have much higher yields as well as upside price potential. PepsiCo (PEP +1.37%), which has raised dividends annually for many years, belongs in that category.

Image source: Getty Images.

Price cuts are a positive sign After nine consecutive quarters of declining sales volumes, and facing broadening consumer irritation over its pattern of price hikes, the food and beverage company decided to alter its strategy early this year. Rather than continuing to raise prices, management began to cut them in a bid to increase consumer demand and keep competition from lower-priced private-label brands at bay.

You can see the positive results of that pivot already. PepsiCo's revenue grew 2.6% year over year in the first quarter, with rising volumes contributing slightly. Matters continued to head in the right direction in the second quarter, with higher sales volume accounting for about 1 percentage point of the company's 2.4% revenue gain.

That contrasts to last year, when price increases were solely responsible for its top-line increases. For all of 2025, revenue rose 2%, with higher prices adding 4 percentage points and lower sales volume subtracting 2 percentage points.

The business seems to be on a more solid footing. After all, a company can't continue raising prices while losing sales volume.

Secure dividends Meanwhile, investors who own PepsiCo can feel good about their dividends. In fact, earlier this year, the board of directors raised the payout by 4% to an annualized $5.92 per share. With a payout ratio (dividends divided by earnings) of 75%, PepsiCo can certainly afford the higher payout.

The latest increase made it 54 consecutive years that the company has increased payments. The streak has earned PepsiCo a spot as a Dividend King, a designation reserved for those rare companies that have raised their payouts for at least 50 straight years.

At the new annualized rate and the current share price, PepsiCo's stock has a 4.2% yield. That's quadruple the yield of the S&P 500.

Valuation remains attractive Though the business is heading in the right direction, the market seems to have adopted a wait-and-see attitude with regards to the stock. It has fallen 3.9% this year through Monday morning, in stark contrast to the S&P 500's 13.6% gain.

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However, that's made the valuation more compelling. PepsiCo's price-to-earnings (P/E) ratio has dropped from 24 to 18 this year. That's below its 10-year median of 26.

The shares also trade at a lower P/E multiple than the overall market. The S&P 500 has a P/E ratio of 30.

But PepsiCo won't stay a bargain forever. In light of its high dividend yield, secure payout, and compelling valuation, and with product sales volumes starting to recover thanks to management's actions, investors should view this as a narrow opportunity to purchase PepsiCo stock.

, /PRNewswire/ -- Dover Corporation (NYSE: DOV) today announced that it has signed a definitive agreement to acquire Leistung Engineering Pvt. Ltd. ("Leistung"), which will become part of OPW Fluid Transfer Solutions within Dover's Clean Energy & Fueling segment following the closing of the deal.

Headquartered in Ahmedabad, India, Leistung specializes in the design and manufacture of cryogenic valves, including globe, check and control valves engineered for liquefied natural gas, industrial gas, and other low-temperature applications, along with a complementary portfolio of diaphragm valves, filtration systems, and related products. Leistung has driven double-digit organic growth over the past three years through continuous research and development, new product introductions, and a talented engineering workforce.

Leistung's modern facility will serve as a highly strategic manufacturing hub for Dover in India and is well positioned to capitalize on robust investments in LNG terminals and natural gas pipeline infrastructure in the country, which are driving sustained demand for cryogenic flow control solutions. The facility has substantial capacity for future operational expansion opportunities.

"This acquisition strengthens our ability to serve the rapidly growing Indian market while expanding our global manufacturing footprint and advancing our capabilities in cryogenic solutions, positioning OPW to deliver greater value to customers worldwide," stated David Malinas, President of OPW.

The transaction is expected to close in the fourth quarter following satisfactory completion of customary closing conditions. The terms of the transaction were not disclosed.

About Dover:

Dover is a diversified global manufacturer and solutions provider with annual revenue of over $8 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 70 years, our team of approximately 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at dovercorporation.com.

Forward-Looking Statements:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the anticipated effects of the transaction. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions, and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, and our ability to realize synergies from newly acquired businesses. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements that may be contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the SEC, and on our website, www.dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:

Media Contact:

Jack Dickens

Adrian Sakowicz

Vice President – Investor Relations

Vice President – Communications

(630) 743-2566

(630) 743-5039

[email protected]

[email protected]

SOURCE Dover

, /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) announced that it has declared a quarterly cash dividend of $1.50 per share on its common stock. The dividend will be payable September 30, 2026, to shareholders of record at the close of business on September 1, 2026.

M&T has also declared a quarterly cash dividend of $99.38 per share (equivalent to $0.24845 per depositary share) on its Perpetual 6.625% Non-Cumulative Preferred Stock, Series L ("Series L Preferred Stock"). The preferred stock dividend will be payable September 15, 2026 to shareholders of record at the close of business on September 1, 2026.

About M&T
M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information about M&T Bank, visit www.mtb.com.

Equal Housing Lender. © 2026 M&T Bank. NMLS# 381076. Member FDIC. All rights reserved.

Investor Contact:
Rajiv Ranjan
Steve Wendelboe
(716) 842-5138

Media Contact:
Frank Lentini
(929) 651-0447

SOURCE M&T Bank Corporation

Key Takeaways Gilead's HIV business is gaining momentum, led by Biktarvy, Descovy and new Yeztugo sales. Yeztugo's twice-yearly dosing is driving uptake, with 2026 sales expected to reach about $1 billion.New lenacapavir-based regimens could expand Gilead's HIV treatment and prevention franchise. Gilead Sciences, Inc. (GILD - Free Report) has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy for treatment and Descovy for prevention.

Earlier this month, the company reported better-than-expected second-quarter results, driven by strong HIV breast cancer drug Trodelvy and liver disease drug Livdelzi sales.

HIV business continues to maintain momentum, driven by solid performance of Biktarvy and Descovy, and incremental contributions from Yeztugo.

Biktarvy continues to be a dominant player in the HIV treatment market, retaining its position as the most prescribed therapy for both treatment-naïve and switch patients across major markets.

Gilead’s HIV pre-exposure prophylaxis (PrEP) portfolio comprises daily oral Descovy and the first and only twice-yearly injectable Yeztugo.

Descovy’s performance continues to be strong, primarily driven by higher demand in HIV prevention.

The newly approved Yeztugo (lenacapavir) for PrEP has witnessed a robust uptake.  With a twice-yearly dosing schedule, the therapy offers meaningful adherence advantages over daily oral regimens and targets a broad patient population.

Gilead expects Yeztugo sales to reach approximately $1 billion in 2026, signaling the product’s potential to achieve blockbuster status in its first full year on the market.

Driven by a $4-billion annualized PrEP business and the continued strong performance of Biktarvy, Gilead raised its full-year HIV sales growth guidance to 9-10% from 8%.

Gilead expects continued HIV growth from its expanding treatment and prevention portfolio, including potential launches of bictegravir/lenacapavir and once-weekly islatravir/lenacapavir.

The FDA accepted Gilead’s new drug application for bictegravir/lenacapavir (BIC/LEN) for virologically suppressed people living with HIV under priority review, setting a target action date of Aug. 27, 2026.  A potential approval of BIC/LEN would further bolster its HIV portfolio.

GILD has also collaborated with Merck (MRK - Free Report) to advance its HIV pipeline further.

Gilead and Merck recently announced positive phase III results from the ISLEND-1 and ISLEND-2 studies, demonstrating the potential of the investigational once-weekly oral combination of islatravir and lenacapavir in virologically suppressed adults with HIV. These data will form the basis of regulatory submissions.

The investigational regimen combines Merck's islatravir, a next-generation nucleoside analog that inhibits HIV replication through multiple mechanisms, including reverse transcriptase translocation inhibition, with Gilead's lenacapavir.

Gilead’s expanding lenacapavir pipeline strengthens its long-term HIV growth prospects. The company is advancing once-weekly oral combinations into phase II, while a phase III twice-yearly regimen could create a differentiated treatment option with potential launch around 2030. In PrEP, the potential approval of once-weekly oral lenacapavir by February 2027, followed by a possible once-yearly option in 2028, could further expand Gilead’s prevention franchise and reinforce its leadership in the growing HIV market.

Competition for GILD’s HIV BusinessThe HIV treatment landscape is dominated by many bigwigs, such as GSK plc (GSK - Free Report) and Merck, apart from GILD.

HIV sales account for a major chunk of GSK’s Specialty Medicines portfolio. GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato. The solid growth from these drugs has helped GSK combat the decline in Triumeq sales.

MRK markets doravirine for treating adults with HIV-1 in the United States, either as a monotherapy under the brand name Pifeltro or as part of the single-tablet combination regimen under the brand name Delstrigo (doravirine/lamivudine/tenofovir disoproxil fumarate).

MRK won FDA approval for Idvynso, a once-daily, two-drug single-tablet regimen containing doravirine (100 mg) and islatravir (0.25 mg), for adults living with HIV-1 who are virologically suppressed on a stable antiretroviral regimen. The approval covers patients with no history of treatment failure and no known resistance-associated mutations to doravirine, allowing them to switch from their current HIV therapy.

GILD’s Price Performance, Valuation and EstimatesShares of GILD have gained 13.2% year to date compared with the industry’s growth of 4.3%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, GILD’s shares currently trade at 23.60X forward earnings, higher than its mean of 12.14X and the large-cap pharma industry’s 18.51X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pinned at a loss of 62 cents per share. The EPS estimate for 2027 has moved south to $9.65 from $9.71 in the past 60 days.

Image Source: Zacks Investment Research

While Gilead’s recent aggressive dealmaking strategy strengthens its long-term pipeline and growth potential, the sizable upfront payments and integration-related costs are pressuring near-term profitability.

Micron Technology
MU -6.98% 80

, the memory-chip powerhouse at the center of the AI infrastructure boom, dropped approximately 7% to $940.89 Tuesday morning as investors slammed the brakes on high-flying AI stocks. Rising Treasury yields triggered a broad risk-off move across semiconductors, with the Nasdaq and chip names taking the hit as investors questioned whether the AI trade had moved too far, too fast.

But here is the key point: Micron's business is not slowing down. The stock is falling because expectations are sky-high, not because the AI memory story is broken. Micron's fiscal third-quarter revenue surged to $41.46 billion, compared with $23.86 billion in the previous quarter and just $9.3 billion a year earlier. Operating cash flow jumped to $25.39 billion, while GAAP net income reached $28.24 billion. The numbers show a company riding one of the strongest memory cycles in its history.

The real battle is valuation. Micron shares have exploded more than 700% over the past year, according to Barron's, creating a stock that now demands near-perfect execution.

The GF Value chart tells the story: Micron trades at $941.49, roughly 60.62% above its GF Value estimate of $586.15. The market is already pricing in a massive AI-driven future. Micron may still have one of the best AI memory stories in the market, but after a historic rally, even great companies can face brutal pullbacks when investors decide the price has run ahead of reality.

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Taiwan Semiconductor Manufacturing
TSM -4.07% 97

is making progress with its U.S. manufacturing expansion, a development that Bank of America expects could keep the chipmaker's investment levels elevated.

BofA analyst Haas Liu kept a Buy rating and NT$3,100 price target on TSMC.

BofA said sales from TSMC's Arizona operations increased 17% from the previous quarter and 145% from a year earlier to NT$45 billion in the second quarter. The business represented about 4% of total company sales.

The bank also expects depreciation to rise at roughly a 20% compound annual rate between 2026 and 2028 as TSMC invests in advanced and specialty technologies. Its board recently approved about $29 billion in additional U.S. capital spending, nearly double the year-earlier level.

BofA expects TSMC's 2026 capital expenditures to reach the midpoint of its $62 billion target. If investment growth remains elevated, spending could reach $80 billion to $85 billion in 2027, compared with Wall Street's roughly $75 billion estimate.

Continued U.S. expansion and strong AI-related demand could support the company's growth outlook, though higher spending may increase depreciation costs.

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Key Takeaways VF Corporation's Vans revenue fell 9% in constant currency, offsetting growth at other major brands.VF Corporation raised fiscal 2027 revenue guidance as Outdoor segment sales increased 5% year over year.Vans' direct-to-consumer gains show progress, but wholesale and international weakness remain challenges. VF Corporation (VFC - Free Report) shares have dropped 14.2% in the past month, keeping pressure on a turnaround that still depends heavily on stabilizing Vans. The brand's revenues fell 9% in constant currency in first-quarter fiscal 2027, as global wholesale declines outweighed continued growth in Vans Americas direct-to-consumer sales.

The setback matters because VFC's broader recovery is gaining traction elsewhere. The North Face, Timberland and Altra grew in the quarter, and management raised fiscal 2027 revenue guidance to 2% or better in constant currency. The key question is whether Vans can stop offsetting those gains.

Vans remains the clearest execution risk. Constant-currency revenues fell 4% in the Americas, 17% in Europe, the Middle East and Africa, and 15% in Asia-Pacific in the first quarter. Management expects another roughly 9% decline in the second quarter, leaving the first half near a 9% drop. It still expects full-year Vans revenues to decline at a mid-single-digit rate, with the third and fourth quarters down 2% or better combined as wholesale assortments refresh.

There are signs of progress inside the brand. Americas direct-to-consumer sales increased again, e-commerce gained and almost 60% of U.S. comparable stores were flat or growing. New versions of Authentic, Slip-On and Old Skool are generating sell-through. The problem is scale. Wholesale partners are carrying fewer of the newer products, and the recovery outside the Americas remains uneven.

The rest of VFC is providing a buffer. Outdoor segment revenues increased 5% year over year, with The North Face up 4% and Timberland up 3% in constant currency. The company also kept its adjusted operating margin target at about 8% for fiscal 2027. Net debt fell $1.1 billion year over year, while free cash flow improved about $75 million in the quarter, including roughly $50 million of tariff refunds.

VFC trades at 12.2X forward 12-month earnings per share, below the Zacks sub-industry's 14.7X. The earnings estimate for the current fiscal year has declined 2.7% in the past four weeks, leaving valuation support alongside a softer near-term earnings revision trend.

Image Source: Zacks Investment Research

Crocs, Inc. (CROX - Free Report) offers a useful casual-footwear comparison. Its second-quarter 2026 revenues reached a record $1.18 billion, while the Crocs Brand topped $1 billion in quarterly revenues even as HEYDUDE revenues declined 5.7%.

Under Armour, Inc. (UAA - Free Report) is another consumer-brand turnaround facing uneven demand. Its first-quarter fiscal 2027 revenues declined 3%, footwear revenues fell 8% and the company lowered its full-year revenue outlook to a mid-single-digit decline while maintaining its profitability outlook.

The near-term setup for VFC remains mixed. Growth at The North Face and Timberland, a lower cost base and lower debt show that the turnaround is broader than Vans, but the company still needs Vans wholesale and international trends to improve materially in the second half. Until that happens, the brand remains the biggest test of the recovery.

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

Its VGM Score of B and Value Score of A point to favorable value characteristics, while the Growth Score of C is middling and the Momentum Score of F reflects weak near-term price trends. That mix supports a measured view while investors watch for clearer evidence that Vans is stabilizing.

Key Takeaways Ecolab shares gained 12.2% in three months as improving operating momentum supported the advance.High-Tech organic sales rose 29%, while Digital sales climbed 27% and Life Sciences advanced 15%.Ecolab raised 2026 adjusted EPS guidance to $8.05-$8.25, but higher debt and financing costs remain risks. Ecolab Inc. (ECL - Free Report) shares have gained 12.2% over the past three months, drawing attention to whether improving operating momentum can sustain the advance.

Faster growth in High-Tech, Digital and Life Sciences, firmer pricing and a higher 2026 earnings outlook support the case. Elevated debt, acquisition-related financing costs and macroeconomic uncertainty remain offsets.

Ecolab’s High-Tech Growth Strengthens the Bull CaseGlobal High-Tech organic sales rose 29% in the second quarter of 2026, while fixed-currency sales increased 139% with help from Ovivo Electronics. The platform is approaching $1.5 billion in annualized sales.

Management expects Global High-Tech, including Ovivo and CoolIT, to grow more than 25% annually and reach $4 billion in sales by 2030, with a 25% operating income margin. CoolIT also expands Ecolab’s data-center cooling capabilities.

ECL’s Digital and Life Sciences Engines Add MomentumEcolab Digital sales increased 27% in the second quarter, and management continues to target long-term growth above 20%. Connected monitoring and software broaden the company’s recurring technology opportunity across its installed base.

Global Life Sciences organic sales advanced 15%, while organic operating income surged 46% to $58.5 million. Share gains in bioprocessing and strength in pharmaceutical and personal-care applications added another faster-growing earnings stream.

Ecolab’s Pricing and Margins Support the AdvanceSecond-quarter organic sales increased 5%, supported by 4% pricing and 1% volume growth despite an approximately 1% headwind from Middle East customer disruptions. Organic operating margin expanded 40 basis points to 18.8%.

Management expects pricing of 5%-6% in the second half and an organic operating margin of about 20%. Productivity and One Ecolab savings should help offset higher commodity costs, although continued pricing execution remains important.

ECL’s Higher Debt Could Check Further UpsideTotal debt climbed to $13.18 billion at the end of the second quarter from $8.49 billion at the end of the first quarter. Net interest expense rose to $73.1 million from $63.2 million a year earlier.

The CoolIT acquisition increases Ecolab’s data-center exposure but also raises financing and integration risk. Competitive pressure remains relevant as Pentair plc (PNR - Free Report) operates across residential, commercial and industrial water solutions, while STERIS plc (STE - Free Report) provides infection-prevention products and services to healthcare and life-sciences customers.

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Ecolab’s Outlook Tests Whether the Rally Can ContinueEcolab raised its 2026 adjusted earnings guidance to $8.05-$8.25 per share, representing expected growth of 7%-10%. The company also projects 6%-7% organic sales growth in the second half.

Execution remains the key test. Geopolitical disruption, energy volatility, softer Heavy Water demand and pricing pressure could constrain results even as High-Tech and other growth engines gain scale.

ECL’s Cautious Rank Tempers the 12.2% RallyThe operating backdrop has improved, but the recent share-price gain now sits against higher leverage and near-term acquisition-related costs. That mix leaves the next phase of the rally dependent on continued sales growth and margin delivery.

Ecolab currently carries a Zacks Rank #4 (Sell). Its Momentum Score of A is the strongest Style Score, while the Value Score of F, Growth Score of C and VGM Score of D point to a less favorable value, growth and blended profile. Because Style Scores complement rather than override the Zacks Rank, the current setup remains cautious despite the stock’s recent momentum.

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

Key Takeaways Ecolab adds CoolIT's direct-to-chip cooling to broaden its data-center infrastructure offering.ECL targets more than 25% annual High-Tech growth and $4B in sales by 2030 after the CoolIT deal.Ecolab's debt rose to $13.18B, while higher interest and acquisition costs create near-term pressure. Ecolab Inc. (ECL - Free Report) has expanded its artificial intelligence infrastructure exposure with the $4.75 billion acquisition of CoolIT Systems. The deal gives Ecolab a larger role in data-center cooling as demand for high-density computing grows.

The strategic opportunity is sizable, but so is the financial commitment. Higher debt, increased interest expense and acquisition-related costs mean investors must weigh faster High-Tech growth against a more leveraged balance sheet.

Ecolab's CoolIT Deal Broadens Its AI Infrastructure BetCoolIT adds coolant distribution units, cold plates and direct-to-chip cooling technologies to Ecolab's existing water treatment, coolant chemistry and 3D TRASAR capabilities. Management plans to combine those assets into an integrated cooling platform for high-density data centers.

The broader offering is designed to manage cooling performance, water use, energy consumption and computing uptime. That expands Ecolab's role from individual water and chemistry applications toward a more complete data-center cooling solution.

Image Source: Zacks Investment Research

ECL Targets Faster High-Tech Growth Through 2030Global High-Tech is approaching $1.5 billion in annualized sales, compared with about $150 million in 2021. Including Ovivo Electronics and CoolIT, management expects the platform to grow more than 25% annually and reach $4 billion in sales by 2030.

Ecolab also targets a 25% operating income margin for the platform. Those goals are above its prior expectations of more than 20% growth and a 20% margin, reflecting management's higher expectations after adding CoolIT.

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Ecolab's Cooling Platform Could Lift Data Center SalesManagement estimates that adding CoolIT can increase Ecolab's sales opportunity in a data center by three to five times versus its legacy offering. The combination of hardware, water management, chemistry and digital monitoring gives the company more products and services to sell within each facility.

The theme also places Ecolab alongside other companies expanding liquid-cooling capacity. Vertiv Holdings Co. (VRT - Free Report) offers direct-to-chip liquid cooling within its data-center infrastructure portfolio, while nVent Electric plc (NVT - Free Report) is expanding manufacturing capacity for liquid-cooling solutions used in artificial intelligence and high-performance computing environments.

Image Source: Zacks Investment Research

ECL Takes on More Debt and Financing CostsThe acquisition strategy has raised Ecolab's financial burden. Total debt reached $13.18 billion at the end of the second quarter of 2026, up from $8.49 billion at the end of the first quarter as the company raised debt to fund recent acquisitions, including CoolIT.

Net interest expense increased to $73.1 million from $63.2 million a year earlier. Ecolab's 2026 earnings outlook also incorporates short-term non-cash amortization and financing costs tied to CoolIT, creating a near-term earnings offset to the deal's growth potential.

Ecolab's Core Risks Could Limit Deal PayoffHigh-Tech growth does not remove pressure elsewhere. Middle East disruption reduced companywide volume growth by about 1 percentage point in the second quarter, while Heavy Water organic sales fell 1% and Paper sales were flat amid softer industrial demand.

Energy and commodity volatility remain additional risks because Ecolab relies on pricing and productivity to protect margins. Integration adds another execution demand as the company works to scale CoolIT while maintaining performance across its existing businesses.

ECL's Underperform Signal Tempers the AI UpsideCoolIT gives Ecolab a larger addressable opportunity in data-center cooling, but higher leverage and acquisition-related costs raise the bar for execution. The long-term High-Tech targets are favorable, while the balance-sheet trade-off remains meaningful in the near term.

ECL currently carries a Zacks Rank #4 (Sell). Its Momentum Score of A is favorable, but the Value Score of F, Growth Score of C and VGM Score of D present a more mixed Style Score picture. Because Zacks Style Scores are intended to complement the Zacks Rank rather than override it, the current readings support a cautious view despite the AI-related growth opportunity.

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

Cinema United, a trade organization representing theater owners, on Tuesday ​appealed to California Attorney General Rob Bonta and Paramount Skydance (PSKY.O) to ‌discuss settling a lawsuit that seeks to block the $110 billion merger of the Hollywood studio with Warner Bros Discovery (WBD.O)
.

The trade group previously opposed the deal. Cinema United's call for California and the ​company to explore a resolution to the 11-state antitrust lawsuit came ​after the third-largest U.S. theater chain, Cinemark, joined the two biggest ⁠chains, AMC Theatres and Regal Cinemas, in supporting the merger.

The trade group urged a ​settlement in a letter to Bonta and Paramount CEO David Ellison and asked for "tangible ​and enforceable guardrails" that would protect theater owners and moviegoers.

"Since the outset, we have been open to steps that will protect the exhibition industry. This is the next step in ​that process to ensure a thriving industry for generations to come," a ​Cinema United spokesperson said.

Cinemark, AMC and Regal are part of Cinema United, which represents ‌30,000 ⁠movie screens in the U.S.

California and 11 states sued to block Paramount's acquisition of Warner Bros Discovery, alleging the deal would create a media behemoth with the power to raise prices in film and television.

States including New York, ​Arizona and Minnesota argued ​the deal ⁠would harm theaters and television distributors, raise prices for consumers and make wages less competitive for workers.

Cinema United on Tuesday ​sought a long-term commitment that Paramount would maintain or ​expand the ⁠number of films the studios offer in wide release, provisions that the merger would not increase the fees theater owners pay to exhibit films and continued access ⁠to ​the vast film libraries of Paramount and Warner ​Bros.

Neither Paramount nor Bonta could immediately be reached for comment.

MIAMI, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (Nasdaq: WRAP) (“WRAP” or the “Company”), a global public safety technology company delivering intelligent detection, orchestration and response solutions designed for the next generation of autonomous public safety, today announced it has closed its previously announced registered direct offering (the “Offering”) with a fundamental institutional investor and an existing investor of the Company, consisting of 8,571,609 shares of the Company’s common stock (or pre-funded warrants in-lieu thereof) at an offering price of $1.40 per share. The gross proceeds to the Company from the Offering were approximately $12.0 million before deducting placement agent fees and other Offering expenses. The Company intends to use the proceeds from the Offering for general corporate purposes and working capital, including for any future planned business expansion.

Maxim Group LLC acted as the sole placement agent in connection with the Offering.

The securities were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-291707), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 18, 2025. The Offering was made only by means of a prospectus supplement and the accompanying prospectus that form a part of such registration statement. A prospectus supplement relating to the Offering was filed by the Company with the SEC. Copies of the prospectus supplement and accompanying prospectus can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, via email at [email protected], or telephone at (212) 895-3500.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About Wrap Technologies, Inc.

Wrap Technologies, Inc. (Nasdaq: WRAP) is a global public safety technology and training company focused on developing tools, training and capabilities designed to support awareness, earlier intervention and more appropriate responses to challenging encounters.

Cautionary Note on Forward-Looking Statements - Safe Harbor Statement

This release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should”, “believe”, “target”, “project”, “goals”, “estimate”, “potential”, “predict”, “may”, “will”, “could”, “intend”, and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements include, but are not limited to, statements relating to the use of proceeds from the Offering, including any statements regarding any future planned business expansion. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ability to maintain compliance with the Nasdaq Capital Market's listing standards; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce products for its customers; the Company's ability to develop sales for its products; market acceptance of existing and future products; changes in law enforcement budgets, policies, procurement practices, and use-of-force standards; the availability of funding to continue to finance operations; the complexity, expense, and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company's product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations and changes in regulatory classifications or interpretations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for countries outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company's ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, or changes in its expectations.

Investor Relations Contact:

(800) 583-2652
[email protected]
wrap.com

Power producer NRG Energy (NRG.N) has been named as a potential suitor for a West Virginia coal plant that landed in bankruptcy last month with $13 million in cash ​and several profitable years ahead of it, a court filing shows.

A motion to ‌dismiss the case on Friday disclosed that NRG Energy is evaluating a potential acquisition of the coal plant or an ownership stake. NRG was not immediately available to comment on the filing.

A major question in the ​case is whether the Pleasants Power Station should even be in bankruptcy, given its ​cash position and future prospects.

The fight over control of the coal plant escalated ⁠on Friday when its owner asked a federal bankruptcy judge in Delaware to dismiss the ​Chapter 11 reorganization case. Omnis Energy, led by clean-tech entrepreneur Simon Hodson, argued the bankruptcy case ​is unjustified because Pleasants Power Station is on track to generate at least $466 million in revenue over the next four years while making an operating profit estimated at $286 million.

Hodson's group is battling a turnaround management team ​installed earlier this year by lenders.

The new management team said Hodson failed to convert the ​coal plant into a clean hydrogen power producer. As a result, Pleasants missed out on securing crucial capacity ‌payments from ⁠the PJM Interconnection, a grid operator for 67 million people in a territory that stretches from Washington, D.C. to Chicago, it said.

"From 2023 through mid-2025 ... Pleasants incurred significant operating losses caused by misconduct and mismanagement by prior leadership, inadequate working capital, deferred maintenance that caused significant generation ​outages that impaired the ​Plant's performance," David Hindman, ⁠the head of the management turnaround team, said in a July 27 declaration filed in bankruptcy court.

Hindman also said the U.S. Federal Energy ​Regulatory Commission began an investigation of the coal plant's operation in October ​2025.

Omnis denies ⁠any wrongdoing. Offers to purchase Pleasants Power Station range from $350 million to $400 million, more than 10 times the amount of its 2023 purchase price, and any sale would immediately pay in full all ⁠of the ​estimated indebtedness related to the plant, Omnis told the ​court.

Omnis contends the new management group was not authorized to file for bankruptcy protection. Omnis added that its attempt to ​settle outstanding obligations — with a $76 million payment — was rejected.

MOU establishes IonQ as a listed provider for the FABrIC Quantum Computing Sandbox, accelerating quantum research and enterprise adoption

TORONTO--(BUSINESS WIRE)--IonQ (NYSE: IONQ), the world’s leading quantum platform company, today announced a collaboration with Canadian Microelectronics Corporation, operating as CMC Microsystems. This collaboration integrates IonQ’s commercial trapped-ion quantum computing systems into Canada's FABrIC Quantum Computing Sandbox (QCS).

The framework for this initiative is covered under a newly signed memorandum of understanding (MOU), which designates IonQ as a listed cloud quantum computing access provider for the QCS. The QCS is operated through FABrIC, an initiative backed by funding from the Government of Canada's Strategic Response Fund (SRF) and managed by CMC Microsystems. The program aims to strengthen the nation's semiconductor and quantum industries by providing engineering support and cloud quantum computing access to Canadian academics and small-to-medium sized enterprises.

“Innovation moves faster when researchers and businesses can work with frontier quantum computing systems,” said Lisa Lambert, Vice President, Global Strategy & Managing Director, Canada at IonQ. “The FABrIC Quantum Computing Sandbox expands access to IonQ’s commercial technology so more Canadian researchers and businesses can start building quantum expertise and real capability now.”

“This is FABrIC's mandate in action: pairing a leading commercial quantum computing platform with the expertise to use it, so Canadian innovators can move from access to application,” said Gordon Harling, CEO of CMC Microsystems. “That's the outcome FABrIC was built to deliver."

About IonQ

IonQ, Inc. [NYSE: IONQ] is the world’s leading quantum platform and foundry - delivering integrated quantum solutions across computing, networking, sensing, and security. IonQ’s newest generation of quantum computers, the IonQ Tempo, is the latest in a line of cutting-edge systems. Earlier systems have helped customers and partners including Amazon Web Services, AstraZeneca, and NVIDIA achieve a 20x performance increase over previous quantum solutions and accelerate innovation in drug discovery, materials science, financial modeling, logistics, cybersecurity, and defense. In 2025, the company achieved 99.99% two-qubit gate fidelity, setting a world record in quantum computing performance.

Headquartered in College Park, Maryland, IonQ has operations in California, Colorado, Massachusetts, Tennessee, Washington, Italy, South Korea, Sweden, Switzerland, Canada, and the United Kingdom. Our quantum computing services are available through all major cloud providers, while we also meet the needs of networking and sensing customers across land, sea, air, and space. IonQ is making quantum platforms more accessible and impactful than ever before. Learn more at IonQ.com.

About CMC Microsystems

CMC Microsystems has been enabling advanced technology innovation in Canada for more than 40 years, managing federal and provincial investments to support research, accelerate commercialization, and strengthen Canada’s high‑tech ecosystem. With support from the Government of Canada, CMC leads FABrIC, a $217‑million initiative to build a vibrant and sustainable Canadian semiconductor ecosystem anchored by world‑class talent and global impact. www.cmc.ca | fabricinnovation.ca

IonQ Forward-Looking Statements

This news release contains forward-looking statements. All statements contained in this news release other than statements of historical fact are forward-looking statements, including statements regarding the anticipated benefits, scope, timing and outcomes of IonQ's collaboration with CMC Microsystems; IonQ's designation as a listed cloud quantum computing access provider for the FABrIC Quantum Computing Sandbox; the expected availability, capabilities, performance and deployment of IonQ's quantum computing systems, including through the Quantum Computing Sandbox; expectations regarding the adoption and use of quantum computing by Canadian academic institutions, researchers and small- and medium-sized enterprises; the expected funding, continuation, scope and objectives of the FABrIC program and the Quantum Computing Sandbox; the potential applications, advantages and commercial viability of quantum computing; and IonQ's business plans, strategy, market position and growth opportunities in Canada and globally. These statements are only predictions based on our expectations and projections about future events as of the date of this news release and are subject to a number of risks, uncertainties and assumptions that may prove incorrect, any of which could cause actual results to differ materially from those expressed or implied by such statements, including, among others, those described under the heading “Risk Factors” in our most recent filings with the Securities and Exchange Commission.

New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement we make. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made.

The memorandum of understanding described in this news release establishes a non-binding framework for collaboration. It does not obligate either party to enter into any definitive agreement, or to purchase, provide or deploy any products or services, and it may be terminated by either party. There can be no assurance that the memorandum of understanding will result in any definitive agreement, revenue, or any of the other benefits described in this news release.

Except as otherwise required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Record Q4 FY26 Bookings of $660 million grew 93.1% year-over-year; book-to-bill of 2.28Record Backlog of over $1.9 billion; up 38.4% year-over-yearRecord Q4 FY26 Revenue of approximately $290 million; up 6.1% year-over-yearGAAP net income of $1 million; adjusted EBITDA of $49 million and adjusted EBITDA margin of 16.7% ANDOVER, Mass., Aug. 18, 2026 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), reported operating results for the fourth quarter and fiscal year 2026, ended July 3, 2026.

“We delivered fourth quarter fiscal 2026 results that were ahead of our expectations, with record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow," said Bill Ballhaus, Mercury’s Chairman and CEO. “Based on our solid execution and strong demand signals, we enter fiscal year 2027 with enhanced visibility and are increasing our outlook for organic growth."

“In the fourth quarter we delivered record bookings of $660 million, up 93% year-over-year and nearly double our previous record bookings quarter; a 2.3 book-to-bill, resulting in a record backlog of approximately $1.9 billion; record revenue of $290 million, up 6.1% year-over-year; GAAP net income of $1 million; adjusted EBITDA of $49 million; adjusted EBITDA margin of 16.7%; cash flows provided by operating activities of $42 million; and free cash flow of $29 million."

Fourth Quarter Fiscal 2026 Results

Fourth quarter fiscal 2026 revenues were $290 million, compared to $273 million in the fourth quarter of fiscal 2025.

Total bookings for the fourth quarter of fiscal 2026 were $660 million, yielding a book-to-bill ratio of 2.28 for the quarter.

GAAP net income and diluted earnings per share for the fourth quarter of fiscal 2026 were $1 million and $0.01, respectively, compared to GAAP net income and diluted earnings per share of $16 million and $0.27, respectively, for the fourth quarter of fiscal 2025. Adjusted earnings per share (“adjusted EPS”) was $0.37 per share for the fourth quarter of fiscal 2026, compared to $0.47 per share in the fourth quarter of fiscal 2025.

Fourth quarter fiscal 2026 adjusted EBITDA was $49 million, compared to $51 million for the fourth quarter of fiscal 2025.

Cash flows provided by operating activities in the fourth quarter of fiscal 2026 were $42 million, compared to $38 million in the fourth quarter of fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $29 million for the fourth quarter of fiscal 2026 and $34 million for the fourth quarter of fiscal 2025.

Full Year Fiscal 2026 Results

Full year fiscal 2026 revenues were $984 million, compared to $912 million for full year fiscal 2025.

Total bookings for fiscal 2026 were $1.5 billion, yielding a book-to-bill ratio of 1.57 for the year.

GAAP net loss and loss per share for fiscal 2026 were $30 million, and $0.50, respectively, compared to GAAP net loss and loss per share of $38 million, and $0.65, respectively, for fiscal 2025. Adjusted EPS was $1.06 per share for fiscal 2026, compared to adjusted loss per share of $0.64 per share for fiscal 2025.

Fiscal 2026 adjusted EBITDA was $150 million, compared to $119 million for fiscal 2025.

Cash flows provided by operating activities in fiscal 2026 were $102 million, compared to $139 million in fiscal 2025. Free cash flow, defined as cash flows from operating activities less capital expenditures for property and equipment, was $68 million for fiscal 2026 and $119 million for fiscal 2025.

Backlog

Mercury’s total backlog at July 3, 2026 was over $1.9 billion, an approximate $540 million increase from a year ago. Of the July 3, 2026 total backlog, $1.0 billion represents orders expected to be recognized as revenue within the next 12 months.

Conference Call Information

Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on Tuesday, August 18, 2026, to discuss Mercury's quarterly financial results, business highlights and outlook. In addition, Company representatives may answer questions concerning business and financial developments and trends, the Company's view on earnings forecasts, and other business and financial matters affecting the Company, the responses to which may contain information that has not been previously disclosed.

To participate in the conference call Q&A as an analyst please register online at https://events.q4inc.com/analyst/603599389?pwd=RYGqad9c or dial +1 585 542 9983 by phone using Meeting ID: 603599389. The live listen-only webcast and replay will be available ir.mrcy.com/events-presentations. A replay of the webcast will be available two hours after the call and archived on the same web page for six months.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides adjusted EBITDA, adjusted income, adjusted earnings per share (“adjusted EPS”) and free cash flow, which are non-GAAP financial measures. Adjusted EBITDA, adjusted income, and adjusted EPS exclude certain non-cash and other specified charges. The Company believes these non-GAAP financial measures are useful to help investors understand its past financial performance and prospects for the future. However, these non-GAAP measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. Management believes these non-GAAP measures assist in providing a more complete understanding of the Company’s underlying operational results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. A reconciliation of GAAP to non-GAAP financial results discussed in this press release is contained in the attached exhibits.

Mercury Systems – Innovation that Matters®

Mercury Systems is a global leader in aerospace and defense electronics, providing breakthrough capabilities in signal and data processing. With a four-decade legacy of innovation that spans silicon to systems and radio frequency front ends to effectors, we accelerate commercial technology adoption to deliver powerful and secure mission-critical processing solutions to the edge. We are headquartered in Andover, Massachusetts, and have multiple locations worldwide. Our end-to-end processing ecosystem, the Mercury Processing Platform, is built on technologies we have developed and acquired over 40 years. Our technologies are available as standard products or custom solutions from silicon to system scale to ensure interoperability, reduced complexity, optimized performance and speed development. To learn more, visit mrcy.com. (Nasdaq: MRCY)

Investors and others should note that we announce material financial information using our website (www.mrcy.com), SEC filings, press releases, public conference calls, webcasts, and social media, including X (X.com/mrcy) and LinkedIn (www.linkedin.com/company/mercury-systems). Therefore, we encourage investors and others interested in Mercury to review the information we post on the social media and other communication channels listed on our website.

Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, cost increases, our inability to increase production and deliver products on time and with appropriate quality, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of increasingly volatile geopolitical events and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, including tariffs, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, failure to meet contractual performance specifications, adherence to required manufacturing standards, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, failure to achieve or maintain qualified business systems, such as those required by the DFARS, adverse findings in government audits or investigations, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, including the risks from heightened, persistent, and increasingly sophisticated nation-state level cyberattacks and emerging threats associated with agentic AI-enabled cyber tools, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the state law claim related to our settled federal securities class action lawsuit, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended July 3, 2026 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

Contact:
Tyler Hojo, CFA, Vice President of Investor Relations
Mercury Systems, Inc.
978-967-3676

Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and/or registered trademarks of their respective holders.

MERCURY SYSTEMS, INC.  UNAUDITED CONSOLIDATED BALANCE SHEETS  (In thousands)      July 3, June 27,  2026 2025     Assets    Current assets:    Cash and cash equivalents $214,306 $309,099Accounts receivable, net  69,222  109,588Unbilled receivables and costs in excess of billings, net  285,760  278,475Inventory  366,968  332,920Prepaid income taxes  2,258  457Prepaid expenses and other current assets  34,925  27,639Total current assets  973,439  1,058,178     Property and equipment, net  108,413  101,440Goodwill  942,419  938,093Intangible assets, net  175,820  210,611Operating lease right-of-use assets, net  47,713  52,264Deferred tax asset  67,188  69,016Other non-current assets  7,784  5,162Total assets $2,322,776 $2,434,764     Liabilities and Shareholders’ Equity    Current liabilities:    Accounts payable $91,041 $79,116Accrued expenses  32,991  35,264Due to factoring facility  391  7,879Accrued compensation  54,537  51,321Deferred revenues and customer advances  149,565  126,797Total current liabilities  328,525  300,377     Income taxes payable  3,487  4,046Long-term debt  441,500  591,500Operating lease liabilities  45,829  52,738Other non-current liabilities  5,977  12,642Total liabilities  825,318  961,303     Shareholders’ equity:    Preferred stock  —  —Common stock  596  590Additional paid-in capital  1,333,410  1,287,478Retained earnings  152,222  181,895Accumulated other comprehensive income  11,230  3,498Total shareholders’ equity  1,497,458  1,473,461Total liabilities and shareholders’ equity $2,322,776 $2,434,764        MERCURY SYSTEMS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net revenues $289,782  $273,106  $983,622  $912,020 Cost of revenues(1)   201,199   188,338   702,457   657,526 Gross margin  88,583   84,768   281,165   254,494          Operating expenses:        Selling, general and administrative(1)   47,848   37,714   175,031   154,412 Research and development(1)  16,157   11,913   59,736   67,647 Amortization of intangible assets  9,390   10,275   38,904   42,849 Restructuring and other charges  348   (15)  5,939   7,216 Acquisition costs and other related expenses  375   1,331   1,275   1,997 Total operating expenses  74,118   61,218   280,885   274,121          Income (loss) from operations  14,465   23,550   280   (19,627)         Interest income  1,541   1,367   7,723   3,607 Interest expense  (6,524)  (8,026)  (29,590)  (33,430)Other (expense) income, net  (1,689)  1,926   (7,302)  (974)         Income (loss) before income tax provision (benefit)  7,793   18,817   (28,889)  (50,424)Income tax provision (benefit)  6,995   2,447   784   (12,520)Net income (loss) $798  $16,370  $(29,673) $(37,904)         Basic net earnings (loss) per share $0.01  $0.28  $(0.50) $(0.65)         Diluted net earnings (loss) per share $0.01  $0.27  $(0.50) $(0.65)         Weighted-average shares outstanding:        Basic  59,552   58,924   59,460   58,746 Diluted  61,259   59,540   59,460   58,746          (1) Includes stock-based compensation expense, allocated as follows:Cost of revenues $1,011  $446  $5,584  $1,205 Selling, general and administrative $9,319  $653  $29,197  $17,809 Research and development $1,586  $1,318  $6,351  $6,005                   MERCURY SYSTEMS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Cash flows from operating activities:        Net income (loss) $798  $16,370  $(29,673) $(37,904)Depreciation and amortization  17,514   19,969   72,683   82,027 Other non-cash items, net  23,846   6,953   61,336   26,627 Changes in operating assets and liabilities  (5)  (5,217)  (1,958)  68,101          Net cash provided by operating activities  42,153   38,075   102,388   138,851          Cash flows from investing activities:        Purchases of property and equipment  (13,588)  (4,098)  (34,301)  (19,803)Acquisition of assets and businesses, net of cash acquired  —   (4,543)  (1,415)  (4,543)Proceeds from sale of manufacturing operations to Cicor Group  —   6,246   —   6,246 Other investing activities  —   —   —   4,600          Net cash used in investing activities  (13,588)  (2,395)  (35,716)  (13,500)         Cash flows from financing activities:        Proceeds from employee stock plans  2,690   2,169   5,418   3,661 Payments for retirement of common stock  —   —   (15,001)  — Payments under credit facilities  (150,000)  —   (150,000)  — Payments of deferred financing and offering costs  —   —   (3,156)  (2,249)         Net cash (used in) provided by financing activities  (147,310)  2,169   (162,739)  1,412          Effect of exchange rate changes on cash and cash equivalents  1,251   1,428   1,274   1,815          Net (decrease) increase in cash and cash equivalents  (117,494)  39,277   (94,793)  128,578          Cash and cash equivalents at beginning of period  331,800   269,822   309,099   180,521          Cash and cash equivalents at end of period $214,306  $309,099  $214,306  $309,099                   UNAUDITED SUPPLEMENTAL INFORMATION RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except per share data)

Adjusted EBITDA, a non-GAAP measure for reporting financial performance, excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends, and management uses these measures along with the corresponding GAAP financial measures to manage the Company’s business, to evaluate its performance compared to prior periods and the marketplace, and to establish operational goals. The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:

Other non-operating adjustments. The Company records other non-operating adjustments such as gains or losses on foreign currency remeasurement, investments and fixed asset sales or disposals among other adjustments. These adjustments may vary from period to period without any direct correlation to underlying operating performance.

Interest income and expense. The Company receives interest income on investments and incurs interest expense on loans, financing leases and other financing arrangements. These amounts may vary from period to period due to changes in cash and debt balances and interest rates driven by general market conditions or other circumstances which may be outside of the normal course of the Company’s operations.

Income taxes. The Company’s GAAP tax expense can fluctuate materially from period to period due to tax adjustments that are not directly related to underlying operating performance or to the current period of operations.

Depreciation. The Company incurs depreciation expense related to capital assets purchased to support the ongoing operations of the business. These assets are recorded at cost or fair value and are depreciated using the straight-line method over the useful life of the asset. Purchases of such assets may vary significantly from period to period and without any direct correlation to underlying operating performance.

Amortization of intangible assets. The Company incurs amortization of intangible assets primarily as a result of acquired intangible assets such as backlog, customer relationships and completed technologies but also due to licenses, patents and other arrangements. These intangible assets are valued at the time of acquisition or upon receipt of right to use the asset, amortized over the requisite life and generally cannot be changed or influenced by management after acquisition.

Restructuring and other charges. The Company incurs restructuring and other charges in connection with management’s decisions to undertake certain actions to realign operating expenses through workforce reductions and the closure of certain Company facilities, businesses and lines of business. The Company’s adjustments reflected in restructuring and other charges are typically related to acquisitions and organizational redesign programs initiated as part of discrete post-acquisition integration activities. Management believes these items are non-routine and may not be indicative of ongoing operating results.

Impairment of long-lived assets. The Company incurs impairment charges of long-lived assets based on events that may or may not be within the control of management. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

Acquisition, financing and other third party costs. The Company incurs transaction costs related to acquisition and potential acquisition opportunities, such as legal, accounting, and other third party advisory fees. The Company may also incur third party costs, such as legal, banking, communications, proxy solicitation, and other third party advisory fees in connection with engagements by activist investors or unsolicited acquisition offers. Although the Company may incur such third party costs and other related charges and adjustments, it is not indicative that any transaction will be consummated. Additionally, the Company incurs unused revolver and bank fees associated with maintaining its credit facility as well as non-cash financing expenses associated with obtaining its credit facility. Management believes these items are outside the normal operations of the Company’s business and are not indicative of ongoing operating results.

Fair value adjustments from purchase accounting. As a result of applying purchase accounting rules to acquired assets and liabilities, certain fair value adjustments are recorded in the opening balance sheet of acquired companies. These adjustments are then reflected in the Company’s income statements in periods subsequent to the acquisition. In addition, the impact of any changes to originally recorded contingent consideration amounts are reflected in the income statements in the period of the change. Management believes these items are outside the normal operations of the Company and are not indicative of ongoing operating results.

Litigation and settlement income and expense. The Company periodically receives income and incurs expenses related to pending claims and litigation and associated legal fees and potential case settlements and/or judgments. Although the Company may incur such costs and other related charges and adjustments, it is not indicative of any particular outcome until the matter is fully resolved. Management believes these items are outside the normal operations of the Company’s business, often occur in periods other than the period of activity, and are not indicative of ongoing operating results. The Company periodically receives warranty claims from customers and makes warranty claims towards its vendors and supply chain. Management believes the expenses and gains associated with these recurring warranty items are within the normal operations and operating cycle of the Company’s business. Therefore, management deems no adjustments are necessary unless under extraordinary circumstances.

Stock-based and other non-cash compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of cost of revenues, selling, general and administrative expense and research and development expense. The Company also incurs non-cash based compensation in the form of pension related expenses and matching contributions to its defined contribution plan. Although stock-based and other non-cash compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company’s shares, risk-free interest rates and the expected term and forfeiture rates of the awards, as well as pension actuarial assumptions. Management believes that exclusion of these expenses allows comparisons of operating results to those of other companies, both public, private or foreign, that disclose non-GAAP financial measures that exclude stock-based compensation and other non-cash compensation.

Mercury uses adjusted EBITDA as an important indicator of the operating performance of its business. Management excludes the above-described items from its internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to the Company’s board of directors, determining a portion of bonus compensation for executive officers and other key employees based on operating performance, evaluating short-term and long-term operating trends in the Company’s operations, and allocating resources to various initiatives and operational requirements. The Company believes that adjusted EBITDA permits a comparative assessment of its operating performance, relative to its performance based on its GAAP results, while isolating the effects of charges that may vary from period to period without direct correlation to underlying operating performance. The Company believes that these non-GAAP financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in its financial and operational decision-making. The Company believes that trends in its adjusted EBITDA are valuable indicators of its operating performance.

Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the adjusted EBITDA financial adjustments described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these costs are unusual, infrequent or non-recurring.

The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net income (loss) $798 $16,370  $(29,673) $(37,904)Other non-operating adjustments, net  69  (4,645)  2,963   (7,742)Interest expense, net  4,983  6,659   21,867   29,823 Income tax provision (benefit)  6,995  2,447   784   (12,520)Depreciation  8,124  9,694   33,779   39,178 Amortization of intangible assets  9,390  10,275   38,904   42,849 Restructuring and other charges  348  (15)  5,939   7,216 Impairment of long-lived asset  —  —   —   — Acquisition, financing and other third party costs  1,097  2,126   4,509   6,638 Fair value adjustments from purchase accounting  131  131   525   617 Litigation and settlement expense, net  1,820  4,062   13,451   13,010 Stock-based and other non-cash compensation expense  14,763  4,165   57,144   38,273 Adjusted EBITDA $48,518 $51,269  $150,192  $119,438                  Free cash flow, a non-GAAP measure for reporting cash flow, is defined as cash provided by operating activities less capital expenditures for property and equipment, which includes capitalized software development costs, and, therefore, has not been calculated in accordance with GAAP. Management believes free cash flow provides investors with an important perspective on cash available for investment and acquisitions after making capital investments required to support ongoing business operations and long-term value creation. The Company believes that trends in its free cash flow are valuable indicators of its operating performance and liquidity.

Free cash flow is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenditures similar to the free cash flow financial adjustment described above, and investors should not infer from the Company’s presentation of this non-GAAP financial measure that these expenditures reflect all of the Company's obligations which require cash.

The following table reconciles the most directly comparable GAAP financial measure to the non-GAAP financial measure.

  Fourth Quarters Ended Twelve Months Ended  July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025Net cash provided by operating activities $42,153  $38,075  $102,388  $138,851 Purchases of property and equipment  (13,588)  (4,098)  (34,301)  (19,803)Free cash flow $28,565  $33,977  $68,087  $119,048                   Adjusted income and adjusted earnings per share (“adjusted EPS”) are non-GAAP measures for reporting financial performance, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company’s underlying results and trends and allows for comparability with its peer company index and industry. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company’s business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income as income before other non-operating adjustments, amortization of intangible assets, restructuring and other charges, impairment of long-lived assets, acquisition, financing and other third party costs, fair value adjustments from purchase accounting, litigation and settlement income and expense, and stock-based and other non-cash compensation expense. The impact to income taxes includes the impact to the effective tax rate, current tax provision and deferred tax provision(1). Adjusted EPS expresses adjusted income on a per share basis using weighted average diluted shares outstanding.  

The following tables reconcile the most directly comparable GAAP financial measures to the non-GAAP financial measures.

  Fourth Quarters Ended  July 3, 2026 June 27, 2025Net income and earnings per share $798  $0.01 $16,370  $0.27Other non-operating adjustments, net  69     (4,645)  Amortization of intangible assets  9,390     10,275   Restructuring and other charges  348     (15)  Impairment of long-lived assets  —     —   Acquisition, financing and other third party costs  1,097     2,126   Fair value adjustments from purchase accounting  131     131   Litigation and settlement expense, net  1,820     4,062   Stock-based and other non-cash compensation expense  14,763     4,165   Impact to income taxes(1)  (5,662)    (4,576)  Adjusted income and adjusted earnings per share $22,754  $0.37 $27,893  $0.47         Diluted weighted-average shares outstanding    61,259    59,540         (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax provision or benefit related to the items.
             Twelve Months Ended  July 3, 2026 June 27, 2025Net loss and loss per share $(29,673) $(0.50) $(37,904) $(0.65)Other non-operating adjustments, net  2,963     (7,742)  Amortization of intangible assets  38,904     42,849   Restructuring and other charges  5,939     7,216   Impairment of long-lived assets  —     —   Acquisition, financing and other third party costs  4,509     6,638   Fair value adjustments from purchase accounting  525     617   Litigation and settlement expense, net  13,451     13,010   Stock-based and other non-cash compensation expense  57,144     38,273   Impact to income taxes(1)  (29,592)    (25,091)  Adjusted income and adjusted earnings per share(2) $64,170  $1.06  $37,866  $0.64          Diluted weighted-average shares outstanding    60,737     59,203  (1) Impact to income taxes is calculated by recasting income before income taxes to include the items involved in determining adjusted income and recalculating the income tax provision using this adjusted income from operations before income taxes. The recalculation also adjusts for any discrete tax provision or benefit related to the items.(2) Adjusted earnings per share is calculated using diluted shares whereas Net loss per share is calculated using basic shares. There was a $0.02 impact and a $0.01 impact to the calculation of adjusted earnings per share as a result of this for the twelve months ended July 3, 2026 and June 27, 2025, respectively.

Key Takeaways Howmet's defense aerospace revenues rose 11% in Q2 2026, reaching 15% of total revenues.Strong F-35 engine spare demand and fighter jet parts drove defense aerospace growth.Gas turbine revenues surged 38% year over year in Q2, adding another growth opportunity. Howmet Aerospace Inc. (HWM - Free Report) is poised to benefit from the expanding defense budget, which remains an important growth catalyst. Though commercial aerospace continues to be the company’s primary growth driver, the defense aerospace market has also gained momentum, supported by steady government funding. In the second quarter of 2026, revenues from the defense aerospace market increased 11% year over year, accounting for 15% of HWM’s total revenues. In 2025, revenues from this market surged 21% year over year.

The growth was driven by strong demand for engine spares for the F-35 program and spare parts for legacy fighter jets, including the F-15 and F-16. Howmet is also expanding its focus on new programs, particularly in the drone and collaborative combat aircraft markets. With military aircraft programs expected to benefit from increased funding, the company is well-positioned to capture additional defense opportunities and contracts.

In February 2026, the House of Representatives passed the fiscal year 2026 Defense Appropriations Act, providing a total discretionary allocation of $838.7 billion. The increase in military funding bodes well for Howmet’s defense aerospace business and could support top-line growth in the quarters ahead.

Howmet is also benefiting from strong demand for industrial gas turbines. Revenues from the gas turbines market grew 38% year over year in the second quarter, providing another growth opportunity for the company. Strong defense spending, growing demand across military programs and robust industrial gas turbine demand should support Howmet’s growth in the coming quarters.

HWM’s Peers in the Defense SpaceAmong its major peers, Textron Inc.’s (TXT - Free Report) defense businesses continue to benefit from military production, training demand and funded development programs. Textron’s Bell segment’s second-quarter 2026 revenues increased 6% year over year, driven largely by higher H-1 and MV-75 volume, while commercial helicopter deliveries rose to 36 from 32. Textron’s Bell segment completed the first two MV-75 wing structures, with labor hours declining across successive builds.

Its another peer, GE Aerospace’s (GE - Free Report) Defense & Propulsion Technologies business, is benefiting from the rising demand for its propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector. In the first half of 2026, GE Aerospace received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. GE Aerospace also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period.

HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 60% in the past year compared with the industry’s growth of 5.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.47X, above the industry’s average of 34.1X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HWM’s 2026 earnings has been on the rise over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways Martin Marietta's $13.5B Lhoist deal would add 20 facilities, 45 terminals and over 2B tons of reserves.The combined company is projected to generate $3.3B of adjusted EBITDA with a 36% margin.MLM expects 3.7X net leverage at closing and aims to reduce it below 2.5X within 24 months. Martin Marietta Materials, Inc. (MLM - Free Report) is pursuing its largest transaction to date with the proposed $13.5 billion combination with Lhoist North America. The deal would add scale in lime and limestone while extending the company beyond its core aggregates exposure.

The long-term opportunity is sizable, but so are the financing and integration demands. Investors must weigh a larger earnings and cash-flow base against higher leverage, execution risk and shareholder dilution.

MLM’s Lhoist Deal Expands Its Limestone PlatformMartin Marietta agreed on June 27 to combine with Lhoist North America in a transaction valued at approximately $13.5 billion. The consideration includes $7 billion in cash and $6.5 billion in stock, subject to customary adjustments.

Lhoist North America operates 20 quarries and production facilities and 45 distribution terminals. It also brings more than 2 billion tons of limestone reserves, adding long-lived mineral assets to Martin Marietta’s aggregates-led portfolio and expanding its upstream Specialties platform.

Martin Marietta Sees a Bigger Earnings Base After LhoistOn a 2026 pro forma basis, including run-rate synergies and New Frontier Materials, the combined business is indicated to generate about $3.3 billion of adjusted EBITDA from continuing operations compared with roughly $2.4 billion for Martin Marietta standalone. The indicated adjusted EBITDA margin rises to 36% from 33%.

Free-cash-flow conversion is indicated at 81% for the combined company compared with 76% standalone. That improvement is central to the strategic case because stronger cash conversion would help support deleveraging after closing while giving Martin Marietta more flexibility to reinvest across its expanded portfolio.

MLM’s Lhoist Exposure Broadens End-Market ReachThe transaction would broaden Martin Marietta’s exposure to industrial, infrastructure, manufacturing and environmental applications. Lhoist North America’s lime products serve markets including steel production, soil stabilization and water treatment, complementing Martin Marietta’s construction aggregates business.

The deal also fits a broader aggregates-led consolidation theme. Vulcan Materials Company (VMC - Free Report) , the nation’s largest producer of construction aggregates, remains centered on aggregates. CRH plc (CRH - Free Report) agreed in June to acquire Arcosa for about $8.5 billion, reinforcing its own U.S. aggregates platform and infrastructure exposure.

Martin Marietta Must Absorb Financing and Execution RiskThe cash component will increase the importance of balance-sheet management. Martin Marietta ended June with $112 million of unrestricted cash and $742 million of unused borrowing capacity, and it later secured a commitment for a new three-year, $1.5 billion senior unsecured term loan facility tied to the Lhoist transaction.

Management expects pro forma net leverage of about 3.7 times at closing and has stated a goal of reducing it below 2.5 times within 24 months. Risks include obtaining financing and regulatory approvals, integrating the businesses, realizing expected synergies and managing dilution from newly issued shares. The company’s existing 2026 adjusted EBITDA guidance of $2.36-$2.50 billion excludes Lhoist contributions.

MLM’s Mixed Style Scores Temper the Lhoist UpsideThe Lhoist transaction could strengthen Martin Marietta’s long-term earnings mix if the company realizes the expected synergies, cash conversion and end-market diversification. The near-term investment case is less straightforward because the deal introduces leverage and integration demands before those benefits are proven.

MLM currently carries a Zacks Rank #3 (Hold), a neutral near-term signal based on earnings estimate revisions. It has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Because the Zacks Style Scores are designed to complement the Zacks Rank, those weaker grades argue for balancing the transaction’s long-term potential against execution and valuation considerations rather than treating the deal as an automatic positive. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arm Holdings (NASDAQ:ARM | ARM Price Prediction) story is straightforward: a licensing business is turning into a data center silicon business. On the fiscal Q1 2027 call, CEO Rene Haas doubled the customer demand pipeline for the Arm AGI CPU to more than $2 billion across FY2027 and FY2028, up from the $1 billion opportunity flagged a quarter earlier. That is the AI signal driving this call.

Our 24/7 Wall St. price target for Arm is $284.95, pointing to modest upside from the current $271.43 price. That is a hold at 90% confidence. Arm is executing, but valuation already discounts much of the story.

24/7 Wall St. Price Target Summary Metric Value Current Price $271.43 24/7 Wall St. Price Target $284.95 Upside 4.98% Recommendation HOLD Confidence Level 90% From $109 to a June Blowoff and Back Arm has had a volatile 2026. Shares are up 148.31% year to date after starting at $109.31, peaked in June at $412.55, then gave back roughly a third of that move.

The most recent quarter reinforced the two-track story: revenue of $1.289 billion grew 22.4% and beat consensus, while GAAP EPS of $0.25 missed the $0.40 consensus estimate as R&D climbed to $838 million. Data center royalties again more than doubled year over year.

Why Bulls See a Breakout to $428 The bull case gets Arm to $428.74 in twelve months, a 57.96% total return. The mechanics: AGI CPU shipments crossing 10% of revenue, first-generation gross margins landing in the high 30% to low 40% range with a path to 50%, and continued royalty ramp from NVIDIA’s Vera, Google’s Axion, AWS Graviton 5, and Microsoft Cobalt.

Haas told investors that “AI is changing where and how compute happens, and Arm is at the center of it,” and pointed to a data center CPU TAM that peers now peg up to $200 billion. Analyst distribution supports this lean, with 27 buy or strong buy ratings against just two sells.

What Could Go Wrong The bear case takes Arm to $226.47, a -16.56% return. Smartphone royalty growth was cut to high teens from the prior 20% expectation as memory-driven BOM inflation pressures every handset tier.

The Qualcomm trial hits Q4 2026, and Arm China concentration plus U.S. export controls remain overhangs. Operating margin compressed to 7% from 11%. Bulls counter, fairly, that margin compression reflects deliberate R&D investment, with FY2026 non-GAAP R&D up 43% to fund the AGI CPU roadmap that just doubled its pipeline.

How Arm Compares to NVIDIA, Broadcom, and Qualcomm Arm’s forward P/E of 127 is the outlier of the AI silicon complex. NVIDIA (NASDAQ:NVDA) trades at 25 forward earnings with 85.2% revenue growth and a 65.6% operating margin. NVIDIA is both a customer and the yardstick, making Arm’s multiple hard to defend on pure growth.

Broadcom (NASDAQ:AVGO) is the closest custom-silicon comp, with 47.9% revenue growth and a 21 forward P/E. Qualcomm (NASDAQ:QCOM), Arm’s largest licensee and litigation counterparty, sits at 16 forward earnings. Against this field, our $284.95 target is generous and effectively assumes Arm’s AGI CPU narrative delivers.

Company Forward P/E Revenue Growth YoY Arm 127 22.4% NVIDIA 25 85.2% Broadcom 21 47.9% Qualcomm 16 -4.0% Arm Price Prediction 2026-2030 Hold at 90% confidence, with a 24/7 Wall St. price target of $284.95. The setup improves materially if AGI CPU shipments start disclosing at 10%+ of revenue with gross margin already in the low 40s.

The thesis weakens if Q2 royalty growth misses the low to mid teens guidance or the Qualcomm ruling breaks against Arm. The $2 billion signal is real. The stock is priced for it.

Year 24/7 Wall St. Price Target 2026 $272 2027 $285 2028 $305 2029 $325 2030 $340 These projections assume Arm executes on the AGI CPU roadmap and smartphone royalties normalize back to 20%+ growth by FY2028. Meaningful upside or downside could come from the Qualcomm verdict and the pace of NVIDIA Vera and AWS Graviton 5 deployments.

Contact [email protected] for any questions or corrections.

Key Takeaways IREN gained 11.7% in a month as AI cloud contracts and a customer acceptance milestone boosted momentum.$2.8B in new cloud contracts put about 85% of IREN's year-end 2026 AI Cloud revenue target under contract.Mining revenue fell 21.3% year over year, while IREN's higher valuation raises the bar for execution. IREN Limited (IREN - Free Report) shares have gained 11.7% in the past month as its shift from Bitcoin mining toward AI cloud infrastructure gathers commercial momentum. New contracts and a completed customer handoff have improved visibility around the transition.

The question for investors is whether delivery can keep pace with the expectations now embedded in the stock. Contracted demand is rising quickly, but legacy mining pressure and a richer valuation leave less room for execution delays.

IREN's AI Contracts Add Revenue VisibilityIREN signed $2.8 billion of new multi-year cloud services contracts in July. The agreements span bare metal and managed cloud services, and the portfolio's weighted average contract term is roughly four years.

Following those agreements, about 85% of IREN's year-end 2026 AI Cloud annualized run-rate revenue target was under contract. The company also raised that target to more than $4 billion from $3.7 billion, giving the expansion a clearer revenue bridge as new capacity comes online.

IREN's Delivery Milestones Bolster ExecutionMicrosoft Corporation (MSFT - Free Report) accepted Horizon 1 at IREN's Childress campus. Microsoft operates Azure AI infrastructure, and Horizon 1 is the first of four 50-MW deployments tied to IREN's five-year, $9.7 billion Microsoft agreement. Horizons 2-4 remain scheduled for 2026.

NVIDIA Corporation (NVDA - Free Report) separately awarded IREN Exemplar Cloud status for the GB300 NVL72 deployment at Horizon 1. NVIDIA describes GB300 NVL72 as a liquid-cooled rack-scale system built around 72 Blackwell Ultra GPUs, making the designation another marker of IREN's ability to bring advanced AI capacity into service.

IREN Still Faces a Mining Revenue Air PocketThird-quarter fiscal 2026 AI Cloud Services revenues increased to $33.6 million from $3.6 million a year earlier. The newer business is scaling rapidly, but Bitcoin mining still supplied most of the quarterly revenue base.

Bitcoin mining revenues fell 21.3% year over year to $111.2 million from $141.2 million. That gap highlights the transition risk as mining declines before the larger Microsoft and other GPU deployments are fully reflected in reported revenues.

IREN's Valuation Raises the Bar for ExecutionIREN trades at 4.59X forward 12-month sales, above the Zacks sub-industry's 2.58X and its own five-year median of 2.33X. The premium signals that investors are already assigning substantial value to the AI cloud ramp.

That makes delivery timing increasingly important. Further share-price gains may depend more on commissioned capacity, customer acceptance and recurring revenue conversion than on contract announcements alone.

Image Source: Zacks Investment Research

IREN's Mixed Style Signals Temper the RallyThe bottom line is that IREN's monthly gain now coincides with both contract wins and a completed customer acceptance milestone, but execution remains the central test. The stock currently carries a Zacks Rank #3 (Hold), which points to a more balanced short-term setup than the top-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

IREN has a Growth Score of B, supporting its growth profile, but a Value Score of D, Momentum Score of F and VGM Score of D. Those mixed Style Scores suggest the stock's growth characteristics are more favorable than its valuation and momentum profile, reinforcing the case for measured expectations as the AI cloud buildout advances.

Key Takeaways CLS expects AI-driven hyperscaler programs to lift enterprise revenue about 190% year over year.CLS raised its 2026 revenue forecast to $20.5 billion, up from $19 billion, or about 65% growth.AI/ML compute and networking demand is expected to continue supporting CLS's revenue growth. Celestica, Inc. (CLS - Free Report) is witnessing solid momentum in its Communications and Cloud Solutions (CCS) segment, backed by strength in AI networking and AI compute demand. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. Management expects AI-related demand to remain a significant contributor to growth in the coming quarter. For the third quarter, the company expects enterprise revenues to increase approximately 190% year over year, driven by the increase in hyperscaler AI/ML compute programs.

AI is strengthening the 2026 and 2027 growth outlook. The company has raised its 2026 revenue forecast to $20.5 billion from $19 billion, representing approximately 65% growth. Beyond AI compute, Celestica is also expanding its role in AI infrastructure through custom rack systems. The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.

AMD is expanding its AI infrastructure portfolio with the upcoming Helios platform to strengthen its position in the hyperscale AI market. Celestica is a key manufacturing and design partner in this initiative. The OpenAI and AMD collaboration brings a multibillion-dollar opportunity for CLS in the next several years.

Celestica continues to see strong demand for 800G Ethernet switches across hyperscaler customers. Management expects 800G shipments to keep growing in 2027 alongside the acceleration of 1.6T deployments. AI/ML compute and networking business will likely continue to propel revenues in upcoming quarters.

How Are Competitors Faring?Celestica faces competition from Jabil, Inc. (JBL - Free Report) and Flex LTD. (FLEX - Free Report) in the AI infrastructure space. Jabil boasts a comprehensive portfolio spanning computing, storage, networking, optics, power and cooling. Such an end-to-end product offering allows it to compete across several layers of the AI infrastructure buildout. Such broad exposure is translating into significant revenue growth. Jabil is expecting AI-related revenues of approximately $13.6 billion in fiscal 2026, up from $9 billion a year earlier.

Flex continues to deepen its exposure to AI infrastructure by combining compute integration, cooling and power capabilities. In first-quarter fiscal 2027, CPI (Cloud and Power Infrastructure) segment revenues rose 35% to $2.2 billion, backed by growing AI-related demand. Flex is developing high-density power solutions and cooling technologies for next-generation AI systems.

Celestica's Price Performance, Valuation & EstimatesCelestica shares have soared 84.3% over the past year compared with the industry’s growth of 85.4%.
 

Image Source: Zacks Investment Research

From a valuation standpoint, Celestica trades at a forward price-to-earnings ratio of 22.81, higher than the industry average of 22.33.
 

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Earnings estimates for both 2026 and 2027 have increased over the past 60 days.

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

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I hit the buy button on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) again last week, and I will hit it again next month. The stock is down 6.91% over the past year and roughly flat year to date, sitting at $480.35. That is exactly the window I have been waiting for. The consolidation is the invitation.

The Thesis in Plain English My conviction rests on a simple read: Microsoft is deep in the expensive phase of an AI infrastructure buildout, and the software monetization on the other side is already landing in the numbers. Once capacity catches up to demand, the operating leverage shows up in earnings. I want to own the shares before that.

The receipts are on the table. Azure crossed $100 billion in full-year revenue for the first time and grew 43% year over year in the June quarter. Microsoft 365 Copilot passed 30 million paid seats, and management guided Azure to roughly 45% growth for the September quarter. Microsoft is already collecting the AI checks.

Three Reasons the Position Keeps Growing First, the backlog. Commercial remaining performance obligations reached $678 billion, up 84% year over year, with a weighted average duration of 2.3 years. Long-term investors want visibility. That is visibility.

Second, the profitability profile. Operating margin sits at 46.78%, return on equity at 34.04%, and return on invested capital at 22.01%. Full-year fiscal 2026 net income was $133.75 billion, up 31.34%. That is what compounding looks like at scale.

Third, the execution rhythm. Microsoft has delivered five consecutive EPS beats, with full-year fiscal 2026 EPS of $17.28 against a $16.78 estimate. Paying 25x forward earnings for a business growing net income above 31% works for my time horizon.

Why Not Amazon or Alphabet The two names a reader might reach for first are Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). Both are serious cloud competitors. My money keeps landing on Microsoft because of the combination of that 46.78% operating margin, the 22.01% ROIC, and the $678 billion contracted backlog. The OpenAI relationship, with Microsoft’s IP rights extended through 2032 and OpenAI contracted for an incremental $250 billion in Azure services, is a moat I do not see replicated at either peer.

The Risk I Take Seriously Free cash flow fell 6.46% for the full year, and Q4 free cash flow dropped 23.19% as capex jumped 109.63% in the quarter to $35.80 billion. Management is guiding calendar 2026 capex to roughly $175 billion, and every dollar of that flows to the power, cooling, and networking suppliers we profiled in a free report on seven AI infrastructure names that are not chipmakers. If enterprise AI demand stalls, that spend becomes a millstone. I keep buying because CFO Amy Hood said on the call that “demand continues to exceed available supply” and because the RPO backlog is climbing faster than the capex line. Supply is the current constraint.

Why the Buy Button Stays Active The shares traded at $517.85 at the October filing and sit lower today after a strong month. Analyst consensus target is $569.56. I buy because a business earning 34% on equity, growing revenue 17.79%, and sitting on a $678 billion order book is exactly what I want funding the next stage of my retirement account. The consolidation will end. My cost basis will not.

Contact [email protected] for any questions or corrections.

Key Takeaways GE Aerospace shares gained 19.9% YTD, outpacing the S&P 500 and aerospace-defense industry.Commercial Engines & Services revenues jumped 27% as engine deliveries climbed 26% in Q2.GE Aerospace faces rising costs, $19.2B in borrowings and a 43.08X forward P/E valuation. GE Aerospace’s (GE - Free Report) investors have been witnessing some short-term gains from the stock of late. Shares of the leading manufacturer of jet engines have gained 19.9% in the year-to-date period, outpacing the S&P 500 composite’s and the industry’s growth of 13.3% and 6.9%, respectively. Other industry players, like Howmet Aerospace Inc. (HWM - Free Report) and Textron Inc. (TXT - Free Report) , have returned 41% and 0.5%, respectively, over the said time frame.

GE Outperforms the Industry & S&P 500
Image Source: Zacks Investment Research

Closing at $369.43 yesterday, the stock is trading below its 52-week high of $388.84 but significantly higher than its 52-week low of $263.80. The stock is trading above both its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.

GE Shares’ 50-Day and 200-Day SMA
Image Source: Zacks Investment Research

Factors Favoring the CompanyGE Aerospace is benefiting from a growing installed base and higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for the Commercial Engines & Services segment.

In the second quarter of 2026, GE Aerospace’s engine deliveries within this segment surged 26% from the prior-year quarter, indicating better throughput as it works through customer demand. The Commercial Engines & Services segment’s revenues and orders jumped 27% and 18%, respectively, on a year-over-year basis in the second quarter.

In the first six months of 2026, the company secured several major engine orders and service agreements. Among major awards, GE secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners. It also secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleet.

Growing popularity for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is driving the Defense & Propulsion Technologies segment’s performance. In the second quarter, revenues from GE’s Defense & Systems were up 12% on growth in both services and equipment, including unit deliveries rising 7%. Propulsion & Additive Technologies revenues grew 23%, led by Avio Aero.

In the first half of the year, it received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. The company also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period.

GE remains committed to rewarding its shareholders through dividends and share buybacks. In the first six months of 2026, GE paid dividends of $873 million and repurchased shares worth $4.2 billion. Also, the company raised its dividend by 30.6% to 36 cents per share in February 2026.

Near-Term Headwinds PrevailGE Aerospace has also been dealing with the adverse impacts of high costs and operating expenses. In second-quarter 2026, its cost of sales (comprising costs of equipment and services sold) surged 26.7% year over year to $8.7 billion. While selling, general and administrative expenses increased 10.9% to $1.1 billion, research and development expenses rose 28.1% to $460 million. In the quarter, the company’s operating profit margin contracted 130 basis points to 21.7%.

The rising debt level remains another concern. Exiting the second quarter, GE’s total borrowings were $19.2 billion. The figure comprised $2 billion of short-term borrowings and $17.2 billion of long-term borrowings.

Valuation Remains an OverhangGE Aerospace is trading at a forward 12-month price-to-earnings (P/E) ratio of 43.08X, higher than the industry average of 34.48X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

Image Source: Zacks Investment Research

While its peer, Textron, is trading cheaper compared with GE, Howmet Aerospace is trading at a premium. Notably, Textron and Howmet Aerospace are currently trading at 12.50X and 49.81X, respectively.

Earnings Estimate RevisionThe Zacks Consensus Estimate for GE’s 2026 earnings has increased 5.1% to $7.86 per share over the past 60 days, indicating year-over-year growth of 23.4%. The consensus mark for 2027 earnings increased 3.7% to $8.99 per share, indicating a year-over-year increase of 14.4%.

Image Source: Zacks Investment Research

Final Take on GEPersistent strength in the commercial and defense aerospace markets, driven by solid build rates and a robust defense budget, bode well for GE Aerospace in the quarters ahead. However, rising operating expenses, high debt levels and premium valuation are limiting this Zacks Rank #3 (Hold) company’s near-term prospects.

While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Low-income diners are spending less at McDonald's, Numerator found. Mario Tama/Getty Images McDonald's is losing ground to rivals among low-income fast-food diners, according to recent data.

Spending by low-income guests at the Golden Arches declined 2.4% year-over-year during the company's latest quarter, said consumer analytics company Numerator. The firm defines "low-income guests" as those from households making $40,000 or less a year.

The drop is McDonald's first quarterly decline with low-income guests in the past year and amounts to roughly $310 million in lost sales, Numerator said on Tuesday.

Rival fast-food chain Burger King, meanwhile, notched a 0.3% gain over the same period.

The data is the latest sign that McDonald's is struggling to attract diners, especially in a K-shaped economy.

While the chain long won over price-conscious diners with deals like its buy-one-get-one discount on sandwiches such as the Big Mac, it has had issues rolling out its latest value menu, which focuses on items priced $3 or less, CEO Chris Kempczinski said on an earnings call earlier this month.

"Although we've restored our overall value and affordability leadership, our restaurant-level results show that execution was inconsistent across the system," Kempczinski said.

McDonald's comparable US sales growth slowed to 0.8% during its second quarter, the company said. Rivals from Burger King to casual dining chain Chili's have posted stronger results while offering their own value menus and deals, Business Insider has reported.

Some McDonald's customers have told Business Insider they're now eating more at other chains or cooking more at home, due to higher costs.

Despite the company's struggles, some McDonald's offers are still drawing in diners of all income levels, Numerator found.

The chain's fried apple pie, an old menu item it brought back for America's 250th birthday this summer, has been purchased by 11.7% of US households, Numerator said.

Do you have a story idea about McDonald's? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.

Fast Food Restaurants Burger King More Income Inequality

Key Takeaways Lowe's Q2 revenue estimate is $26.14B, up 9.1%, while EPS is seen falling 2.5% to $4.22.Pro, online, home services and productivity initiatives could support Lowe's second-quarter sales.Weak discretionary DIY demand, housing pressure and elevated costs remain key concerns for Lowe's. As Lowe's Companies, Inc. (LOW - Free Report) prepares to unveil its second-quarter fiscal 2026 earnings on Aug. 19, before the opening bell, investors are eager to see if the company can beat market expectations.

The Zacks Consensus Estimate for revenues stands at $26.14 billion, implying 9.1% growth from the prior year. Meanwhile, the consensus mark for earnings per share has fallen by a penny to $4.22 over the past seven days, which suggests a 2.5% decline from the year-ago period.

LOW has a trailing four-quarter earnings surprise of 2.3%, on average. In the last reported quarter, this Mooresville, NC-based company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 2.4%.

Image Source: Zacks Investment Research

What the Zacks Model Says About LOW’s Q2 EarningsAs investors prepare for Lowe’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model does not conclusively predict an earnings beat for Lowe’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.

Lowe’s has a Zacks Rank #4 (Sell) and an Earnings ESP of -0.91%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Key Factors to Observe Ahead of LOW's Q2 EarningsLowe’s second-quarter performance is likely to have benefited from sustained demand, backed by focused merchandising and promotional execution. The company entered the quarter with strength in lawn and garden and other outdoor categories and planned to keep value and innovation at the center of its offers. A broad assortment of leading brands, healthy in-stock positions and convenient delivery options may have helped Lowe’s convert seasonal traffic across stores and digital channels. Management also highlighted the continued rollout of workwear and pet assortments, which could have provided an incremental sales opportunity during the quarter.

We believe continued momentum in Lowe’s Total Home strategy may also have supported the quarter. The Pro business remained a key area of strength, with small- and medium-sized professional customers continuing to engage in repair and maintenance projects despite the difficult housing backdrop. Investments in Pro Extended Aisle, localized assortments, improved fulfillment and digital tools have expanded the company’s ability to serve these customers while simplifying the purchasing process. At the same time, enhancements to online shopping, same-day delivery and the MyLowe’s loyalty platforms are likely to have encouraged customers.

Home services and operational improvements may have provided another layer of support. Lowe’s continued to gain traction with installation and replacement projects, particularly in categories where customers value speed, convenience and professional service. Appliances also remained well positioned because of the company’s broad brand assortment, omnichannel capabilities and fast delivery and installation network. Productivity initiatives across stores and the supply chain — including AI-enabled associate tools, faster replenishment and efforts to improve product availability — may have helped Lowe’s maintain service levels and capture demand more efficiently. The integration of Foundation Building Materials and Artisan Design Group also offered opportunities for procurement efficiencies and cross-selling while extending Lowe’s reach with professional and construction customers.

That said, Lowe’s is likely to have continued to face pressure from the broader home improvement environment. Elevated interest rates, high housing costs and subdued housing turnover have kept DIY demand under strain, particularly for larger discretionary projects, while lower-income consumers have remained cautious. These demand challenges were compounded by cost pressures, including higher transportation expenses and inflation in fuel and commodity-based products.

LOW Stock Price PerformanceLowe’s, which competes with The Home Depot, Inc. (HD - Free Report) and Floor & Decor Holdings, Inc. (FND - Free Report) , has seen its shares decline 0.6% over the past three months against the industry’s rise of 9.6%. Shares of Home Depot and Floor & Decor Holdings have advanced 12.1% and 28%, respectively.
 

Image Source: Zacks Investment Research

Does LOW Present a Strong Case for Value Investing?Lowe’s valuation remains discounted relative to the industry. The stock currently trades at a forward 12-month P/E multiple of 16.64, below the industry average of 19.63. LOW is also trading below its own 12-month median P/E of 18.66, suggesting that the stock remains attractively valued relative to the industry and its recent historical range.

Lowe’s is trading at a discount to Home Depot (with a forward 12-month P/E ratio of 21.59) and Floor & Decor (26.24).

Image Source: Zacks Investment Research

Final Words on Lowe’s StockLowe’s enters the second-quarter earnings release with a mixed setup. Strength in Pro, online, home services and ongoing productivity initiatives could support sales, while its relatively attractive valuation may appeal to long-term investors. However, persistent weakness in discretionary DIY demand, housing-market pressures and elevated operating costs remain meaningful concerns. More importantly, the current earnings setup does not point convincingly toward an earnings beat, which limits the case for taking an aggressive position ahead of the report.

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Few large-cap industrials have run harder in the past year than Caterpillar (NYSE:CAT | CAT Price Prediction). Shares are up 118.16% over the last 12 months, powered by a data center capex boom, record backlog, and margin expansion.

Our 24/7 Wall St. price target for Caterpillar is $1,026.19, implying 16.39% upside from the current price of $881.65. We rate CAT a buy with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $881.65 24/7 Wall St. Price Target $1,026.19 Upside 16.39% Recommendation BUY Confidence Level 90% A Historic Quarter Reset the Story CAT trades 9% below its 52-week high of $1,071.47 after cooling this summer, but momentum remains strong: up 5.26% on the week and 54.85% year to date.

The Q2 2026 report on August 4 was the catalyst. Revenue of $20.54 billion exceeded expectations and grew 24% year over year, the first $20 billion quarter in company history.

EPS of $8.17 exceeded expectations, operating margin expanded to 20.9%, and backlog swelled to $72 billion, up 92% year over year. Management raised full-year guidance to mid- to high-teens revenue growth.

The Case for $1,100 and Higher Our bull case sees CAT at $1,102.40 within 12 months. Power Generation sales grew 72% in Q2 on data center demand, and CEO Joe Creed told investors “no one is slowing down at the moment. In fact, if we can get more units out, they’re asking us to give them more units.”

Turbine capacity is being scaled to 2.5x 2024 levels with lead times extending into 2028 and 2029. PineBridge sees roughly 25% annual growth in data center equipment as effectively locked in (we profiled seven of these AI infrastructure suppliers, from power to cooling, in a free report you can grab here).

Construction Industries North America rose 50% and $6.5 billion in first-half buybacks support outperformance.

What Could Go Wrong Our bear case marks CAT down to $828.18. Full-year tariff costs of roughly $2.2 billion remain a live risk if IEEPA recoveries reverse. Asia Pacific grew just 4% in Q2, and dealer rental fleet loading could unwind if end-user demand softens.

Valuation is stretched at 37 trailing earnings against a 5-year average closer to the low 20s. Bulls fairly note the multiple reflects genuine earnings acceleration, with net income up 64.89% year over year.

How Caterpillar Compares to Deere and Cummins Deere (NYSE:DE) is the closest construction and heavy-equipment comparable. Deere carries a market cap of roughly $162 billion and management has flagged fiscal 2026 as “the bottom of the large ag cycle” with U.S. and Canada large ag industry sales guided down 15% to 20%. Deere’s cyclical trough contrasts sharply with CAT’s cycle high, supporting a premium for Caterpillar’s momentum.

Cummins (NYSE:CMI) is the sharper Power & Energy comp given its data center generator exposure. Cummins posted Q2 2026 revenue of $9.46 billion, up 9.4%, with Power Systems up 19%, and raised full-year revenue guidance to 10% to 13%. CAT’s Power & Energy grew 17% at more than 3x the revenue base, making CAT the scaled play on the same theme.

Caterpillar Price Prediction 2026-2030 The 24/7 Wall St. price target of $1,026.19 is a buy at 90% confidence. Backlog, margin expansion, and locked-in data center demand tip the scale.

The setup would strengthen if Q3 confirms broadening momentum outside power generation. Conviction would weaken if tariff recoveries reverse or dealer inventories build without matching end-user pull.

Year 24/7 Wall St. Price Target 2026 $1,026 2027 $1,130 2028 $1,246 2029 $1,340 2030 $1,432 These projections assume Caterpillar continues executing on backlog conversion and turbine capacity expansion. Significant upside or downside could come from AI-driven data center capex trajectory.

Contact [email protected] for any questions or corrections.

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Micron Technology (NASDAQ:MU | MU Price Prediction) closed the most recent session at $1,011.75, capping a 254.71% year-to-date run driven by an AI memory cycle that CEO Sanjay Mehrotra called a structural transformation of the industry.

Our 24/7 Wall St. price target for Micron is $964.63, implying -0.72% from here, and our recommendation is hold with high conviction.

24/7 Wall St. Price Target Summary Metric Value Current Price $1,011.75 24/7 Wall St. Price Target $964.63 Upside/Downside -0.72% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our 24/7 Wall St. price target of $964.63 sits just below current levels. Real upside could come from 16 Strategic Customer Agreements locking in roughly $100 billion of minimum-priced revenue, or from HBM4 ramping twice as fast as HBM3E. Consensus analyst targets sit far higher.

A 254% YTD Run, Then a Cooldown Micron has climbed 738.41% over one year and 17.51% in the past week, but shares sit about 20% below the 52-week high of $1,254.81.

Q3 FY26 results showed memory’s AI leverage: revenue of $41.46 billion beat consensus by 17.60%, non-GAAP EPS of $25.11 beat by 23.79%, and GAAP gross margin expanded to 84.6% from 37.7% a year earlier. Q4 guidance calls for record revenue of $50 billion and EPS of $31.

The Case for $1,500+ Bulls have real ammunition. The average analyst price target sits at $1,501.98, backed by 9 strong buy and 31 buy ratings against zero sells. The forward P/E on trailing consensus is just 6, a valuation that assumes memory profits collapse rather than compound.

Mehrotra told analysts floor prices in SCAs deliver “a very robust gross margin for Micron, well above our peak quarterly margins in any past cycle.”

Data center revenue already exceeds $25 billion quarterly, Micron has shipped over $1 billion in HBM4 revenue, and management sees tight supply persisting beyond calendar 2027. Our bull-case scenario points to $1,334.11 over 12 months.

What Could Go Wrong Memory cycles are memory cycles. CapEx of $7.83 billion in a single quarter and full-year fiscal 2026 spending near $27 billion leave little margin for demand slippage. Beta of 2.213 means a broad AI de-rate cuts deeper here than most names.

Our bear scenario targets $705.83. Counterfactual: much of that CapEx funds the Idaho and New York fabs plus $18 billion in customer cash deposits that offset the spend.

How Micron Compares to Western Digital and Sandisk Western Digital (NASDAQ:WDC) is the cleanest HDD-only peer, riding the same hyperscaler storage buildout. WDC trades at a trailing P/E of 15 and forward P/E of 18, with Q4 revenue of $2.6B up 9% YoY.

SanDisk (NASDAQ:SNDK) is the pure-play NAND comparable. Sandisk trades at a forward P/E of 26 with an analyst target of $2,107.70. Micron’s forward P/E of 6 is a fraction of both, which explains the analyst-versus-model gap. The peer group makes our 24/7 Wall St. price target look conservative on multiples but appropriate given cycle risk.

Company Forward P/E Trailing P/E Micron 6 22 Western Digital 18 15 Sandisk 26 22 Micron Price Prediction 2026-2030 The 24/7 Wall St. price target is $964.63, recommendation hold, confidence 90%. A pullback toward $850 would look more attractive if HBM4 yields and SCA cash deposits keep landing on schedule. The setup weakens if hyperscaler CapEx guides soften into 2027.

Year 24/7 Wall St. Price Target 2026 $965 2027 $1,050 2028 $1,120 2029 $1,180 2030 $1,250 These projections assume Micron executes on its SCA-backed pricing framework and HBM roadmap. Meaningful upside toward the bull scenario of $2,058.69 by 2031 depends on tight supply persisting.

Contact [email protected] for any questions or corrections.