Track market-moving stories before they get noisy

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Chord Energy Corporation (CHRD - Free Report) . CHRD is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.01, while its industry has an average P/E of 11.35. Over the last 12 months, CHRD's Forward P/E has been as high as 12.38 and as low as 6.26, with a median of 8.29.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CHRD has a P/S ratio of 1.5. This compares to its industry's average P/S of 1.96.

Investors could also keep in mind SM Energy (SM - Free Report) , another Oil and Gas - Exploration and Production - United States stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.

SM Energy also has a P/B ratio of 0.64 compared to its industry's price-to-book ratio of 3.50. Over the past year, its P/B ratio has been as high as 1.30, as low as 0.53, with a median of 0.79.

These are just a handful of the figures considered in Chord Energy Corporation and SM Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHRD and SM is an impressive value stock right now.

© Panchenko Vladimir / Shutterstock.com

The Amplify Energy & Natural Resources Covered Call ETF (NYSEARCA:NDIV) sells call options against a basket of energy and natural resources equities to convert commodity volatility into monthly cash distributions. Investors hold NDIV for the income, but covered-call funds live and die by two things: the dividends and option premiums coming in, and whether NAV holds up underneath. NDIV closed at around $35, after a 34% year-to-date gain, so the distribution story is currently being underwritten by one of the strongest commodity tapes in years.

How NDIV Turns Commodities Into Cash The fund collects two income streams. The first is the underlying dividends paid by gold miners, oil and gas producers, and midstream operators it owns. The second comes from writing call options on those positions, which generates premium upfront in exchange for capping upside if the stocks rally past the strike. When volatility is elevated, premiums fatten. When prices rip higher, the calls get exercised and NDIV gives up the gains above the strike.

The CBOE Volatility Index sits at 17.39, down 28% over the past month from a March spike to 31.05. Premium income is moderating from earlier-2026 highs, though sector-specific volatility in energy names remains elevated.

The Dividend Engine Inside the Fund Start with the gold miners. Agnico Eagle Mines (NYSE:AEM | AEM Price Prediction) raised its quarterly payout to $0.45 per share for June 2026, a 13% increase after holding $0.40 for four years. With trailing EPS of $10.63 against $1.65 in annual dividends, the payout consumes a fraction of earnings. Q1 free cash flow of $732 million and a $2.92 billion net cash position mean the dividend is among the safest in the holdings list.

Alamos Gold (NYSE:AGI) lifted its quarterly dividend to $0.04 from $0.025, a 60% bump backed by Q1 adjusted earnings of $232 million versus $59.8 million a year earlier. The yield is small, roughly 0.3%, so AGI contributes more to NDIV through option premium and price appreciation than dividend cash.

The energy side is where sustainability questions sharpen. Chord Energy (NASDAQ:CHRD) has paid a $1.30 base quarterly dividend for five straight quarters. The company guides to roughly $1.4 billion in 2026 adjusted free cash flow at $80 WTI. With WTI at around $110, coverage is comfortable. The risk is mechanical: oil sat at around $55 in mid-December 2025, and Chord historically slashed special dividends fast when prices fell. The base looks defensible, but anyone counting on prior-year totals should anchor expectations to the $1.30 floor.

Antero Midstream (NYSE:AM) yields 4.1% and has held its $0.225 quarterly distribution since 2021. Q1 adjusted EBITDA rose 5%, and 2026 guidance points to $330 to $390 million in free cash flow after dividends. The HG Energy acquisition pushed leverage near 3x, but coverage is solid.

Total Return Versus the Yield NDIV is up 45% over the trailing year, a rare result for a covered-call fund and a sign the calls have not capped all the upside in this commodity rally. Underlying winners outran NDIV: AEM gained 62%, CHRD 61%, and AGI 57%. That gap is the cost of the income overlay.

The Verdict NDIV’s distribution looks well supported today. Gold producers are flush, midstream cash flow is contracted, and Chord’s base dividend clears coverage at current oil. The real risks are cyclical: a drop in WTI toward $60, a fade in gold, and a VIX retreat below 15 would all compress income simultaneously. Investors who want exposure to energy and resources with a richer income stream than the underlyings provide can rely on NDIV’s distribution in this environment, provided they accept that NAV will track commodities downward when the cycle turns.

Chord Energy remains undervalued despite a 40% share price increase, offering substantial value at normalized $70 WTI crude pricing. CHRD consistently generates over 20% free cash flow yields at current prices, driven by improved supply-demand dynamics in crude oil. The 4-mile well development program has unlocked 4% year-over-year production growth within a CAPEX budget set at $60 WTI.

AUSTIN, Texas, May 20, 2026 (GLOBE NEWSWIRE) -- MaverickX announced today that it has closed a strategic capital round with Chord Energy, the largest exploration and production company in the Bakken. In addition, MaverickX has secured additional investment Olive Tree Capital, an existing MaverickX investor.

The strategic investment will support continued development and optimization of PetroX Boost™, MaverickX’s production enhancement solution designed to increase oil recovery from shale wells. As part of the investment, Chord has committed to multiple early field deployments of PetroX Boost across its operated assets.

Chord Energy is actively evaluating PetroX Boost as a potential solution to address one of shale’s core challenges: lower recovery factors, where a sizable portion of hydrocarbons remain trapped underground despite modern completion techniques.

“We are constantly evaluating the newest technologies in the market, and PetroX from MaverickX is one of the more promising solutions we’ve seen,” said Jason Swaren, Senior Vice President of Production at Chord Energy. “PetroX has a real chance to materially impact recovery factors in shale, and we are excited to invest in and work with MaverickX as they advance this technology in the field. It is one of the more unique solutions I have seen.”

MaverickX’s early results with PetroX Boost on core samples have increased recovery factors by up to 20%. PetroX Boost is engineered and intended to enhance production from existing wells by increasing hydrocarbon mobility and improving reservoir performance – a critical opportunity in mature shale plays where incremental recovery can drive outsized returns. It’s an advanced permeability enhancer for tight formations, breaking down illite, smectite, and other silicate clays responsible for swelling and flow restriction in shale reservoirs.

“This investment validates the need for new, scalable technologies that can unlock more value from existing wells,” said Eric Herrera, CEO and Co‑founder of MaverickX. “Having Chord Energy – one of the most technically sophisticated operators in the Bakken – team up with us strategically is a powerful endorsement of PetroX Boost and our broader technology platform. Coupled with Olive Tree’s continued support, this round positions MaverickX for its next phase of commercial scale‑up.”

Beyond capital, the collaboration with Chord provides MaverickX with direct operational collaboration, data feedback, and deployment opportunities that will accelerate product optimization and commercialization.

“This round was intentionally structured as strategic capital,” said Jesse Evans, COO and Co‑founder of MaverickX. “Chord brings not only investment, but deep operational expertise and real‑world deployment opportunities that help us refine PetroX Boost faster and more effectively. With recovery factors in shale still remarkably low, we believe PetroX Boost can play a meaningful role in reshaping how producers think about production enhancement and long‑term value creation.”

This funding builds on recent milestones for MaverickX, including expanded production capacity (announced its new production facility in Pleasanton, Texas, earlier this month) and accelerating commercial demand for its PetroX product line across multiple oil‑producing basins.

For more information about MaverickX visit: MaverickX.com.
To learn more about the PetroX product line, visit: https://www.maverickx.com/oil-gas.

About MaverickX
MaverickX is an Austin, Texas-based technology company developing advanced chemistry and enzymatic solutions to decarbonize and modernize resource extraction. MaverickX is focused on turning stranded and depleted wells into productive, low-impact sources of both hydrocarbons and critical metals by combining PetroX with LithX green chemistry extraction platform.

About Chord Energy
Chord Energy Corporation is an independent exploration and production company with quality and sustainable long-lived assets primarily in the Williston Basin. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States. For more information, please visit the Company's website at www.chordenergy.com.

Media Contact
Tad Druart
Pierpont Communications
(512) 448-4950
[email protected]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Chord Energy Corporation (CHRD - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Chord Energy Corporation currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for CHRD that show why this company shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For CHRD, shares are up 8.76% over the past week while the Zacks Oil and Gas - Exploration and Production - United States industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 14.12% compares favorably with the industry's 2.56% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Chord Energy Corporation have risen 42.63%, and are up 58.14% in the last year. In comparison, the S&P 500 has only moved 7.46% and 24.67%, respectively.

Investors should also take note of CHRD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CHRD is averaging 739,322 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CHRD.

Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CHRD's consensus estimate, increasing from $6.81 to $19.11 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that CHRD is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Chord Energy Corporation on your short list.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Chord Energy Corporation (CHRD - Free Report) . CHRD is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CHRD has a P/S ratio of 1.46. This compares to its industry's average P/S of 1.91.

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

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Chord Energy Corporation (CHRD - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Chord Energy Corporation is a member of the Oils-Energy sector. This group includes 238 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Chord Energy Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CHRD's full-year earnings has moved 328.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that CHRD has returned about 51.1% since the start of the calendar year. Meanwhile, the Oils-Energy sector has returned an average of 28.3% on a year-to-date basis. As we can see, Chord Energy Corporation is performing better than its sector in the calendar year.

Another Oils-Energy stock, which has outperformed the sector so far this year, is Crescent Energy (CRGY - Free Report) . The stock has returned 45.4% year-to-date.

For Crescent Energy, the consensus EPS estimate for the current year has increased 100.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Chord Energy Corporation is a member of the Oil and Gas - Exploration and Production - United States industry, which includes 34 individual companies and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have gained about 26.5% so far this year, so CHRD is performing better this group in terms of year-to-date returns.

Crescent Energy, however, belongs to the Alternative Energy - Other industry. Currently, this 50-stock industry is ranked #105. The industry has moved +17.7% so far this year.

Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Chord Energy Corporation and Crescent Energy as they could maintain their solid performance.

Macy's, Inc. (NYSE:M) reported first quarter results that beat Wall Street expectations for both earnings and revenue, while also raising its full-year guidance, which saw its shares edge about 1% higher on Wednesday.

For Q1, the company reported adjusted diluted earnings per share of $0.13, compared with analyst estimates of $0.03. Net sales totaled $4.68 billion, versus expectations of $4.61 billion.

Macy’s said comparable sales increased 3.0% in the quarter, driven by gains across all three of its main banners.

Macy’s comparable sales rose 1.6%, Bloomingdale’s increased 10.2%, and Bluemercury climbed 6.4%. Net sales rose 1.8% year over year to approximately $4.7 billion.

The company also raised its full-year outlook, increasing guidance for net sales, comparable sales, and adjusted EPS. Macy’s now expects full-year adjusted earnings per share of $2.00 to $2.20, up from $1.90 to $2.10 previously, and net sales of $21.5 billion to $21.75 billion.

“We’re off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our Bold New Chapter strategy continues to build momentum,” Macy’s CEO Tony Spring said in a statement.

“Customers are responding – driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury. 

Jefferies analysts wrote that the results represented a “strong beat” with a raised fiscal 2026 guide, pointing to continued strength at Bloomingdale’s, positive Macy’s comparable sales, and accelerating performance at Bluemercury.

The firm noted that Macy’s banner comps improved from the prior quarter, while Bloomingdale’s maintained double-digit growth and Bluemercury showed further acceleration.

They highlighted that while full-year guidance was raised, second-quarter EPS guidance of $0.29 to $0.34 came in below consensus expectations of $0.36 at the midpoint, even as comparable sales guidance for the quarter remained positive. Jefferies suggested this could reflect a conservative outlook, with implied second-half performance roughly flat.

Jefferies also pointed to Macy’s maintained its adjusted EBITDA margin outlook of 7.7% to 7.9%, noting offsetting pressures from higher fuel costs and lower tariff assumptions. The firm added that expectations had already improved into the print but still sees potential upside to estimates and valuation going forward.

Macy's, Inc. (M) Q1 2026 Earnings Call Transcript

The conglomerate appears to be betting on Macy's shrinking competition and its new leadership focused on the store experience.

Shares of Macy's (M +1.32%) stock rose 11% in May, according to data provided by S&P Global Market Intelligence. It got a boost from Berkshire Hathaway's new stake, and it reported a solid earnings beat.

Changing with the times Macy's owns the largest department store in the world in Herald Square in New York City, but while massive stores used to generate massive sales, the retail climate has drastically changed in recent years. The advent of e-commerce and the shift to smaller, more agile shopping venues have been a major drag on Macy's sales, and it has struggled to stay relevant.

Image source: Macy's.

It has been trying to pump oxygen into the business for years, with muted success. It has closed a significant percentage of stores to allocate resources to the better-performing ones, it has renovated stores that remain open, and it has shifted focus to e-commerce and omnichannel shopping. Management calls its strategy the "Bold new chapter," and it also involves becoming more efficient through technology.

There's been progress, and adjusted earnings per share (EPS) came in at $0.13 in the 2026 fiscal first quarter (ended May 3), a full dime higher than the $0.03 expected by Wall Street analysts. Comparable sales (comps) were up 3% year over year, the best result in four years, driven by an oustanding 10.2% increase at Bloomingdale's; Macy's also owns cosmetics retailer Bluemercury, which was also strong with a 6.4% comps increase.

The company reported a comps increase for the full 2025 after several years of declines, and it's expecting positive comps in 2026 as well.

Too cheap to ignore? Macy's stock has been slammed over the past few years as sales declined and it seemed to be on the way to irrelevance. But Greg Abel is Warren Buffett's disciple, and part of the Buffett way is to find undervalued stocks. Macy's still has plenty of assets, and its new strategy is breathing life into the business, which means it could be primed for a comeback.

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The stock is 70% off its high from a decade ago, and it's trading at less than nine times trailing 12-month earnings. It's easy to see why this combination could look compelling if you believe Macy's has a way forward.

Berkshire Hathaway's stake is only a tiny fraction of its portfolio, and it accounts for 1.2% of Macy's stock, so investors should take this with a grain of salt. Macy's does pay an attractive dividend, though, that yields 3.4% at the current price.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

Key Takeaways Macy's Q1 adjusted EPS was $0.13, up y/y from $0.11, as net sales rose 1.8% to $4.682B.Macy's comps rose 3%, with Bloomingdale's up 10.2% and Bluemercury up 6.4% in the quarter.Macy's raised its FY26 view to net sales of $21.5-$21.75B and adjusted EPS of $2-$2.20. Macy’s, Inc. (M - Free Report) reported first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, both metrics increased from the year-ago quarter.

The company delivered its strongest fiscal first-quarter comparable-sales performance in four years, supported by positive sales growth across all three nameplates — Macy’s, Bloomingdale’s and Bluemercury. Management highlighted that the company’s Bold New Chapter strategy continues to gain traction, driving broad-based operational and financial improvements.

Encouraged by the strong fiscal first-quarter performance and positive second-quarter trends, management raised its fiscal 2026 outlook for net sales, comparable sales and adjusted earnings per share, reflecting confidence in the momentum of its go-forward business.

More on Macy’s Q1 ResultsThe company reported adjusted earnings of 13 cents per share, comfortably surpassing the Zacks Consensus Estimate of 2 cents and improving from adjusted earnings of 11 cents in the year-ago quarter. Earnings per share were 23 cents compared with 13 cents in the prior-year period.

Net sales of $4,682 million surpassed the Zacks Consensus Estimate of $4,623 million. The top line increased 1.8% year over year, benefiting from positive comparable sales across all three nameplates. Comparable sales rose 3%, marking the company’s strongest fiscal first-quarter comparable-sales performance in four years. We expected comparable sales to increase 1% in the quarter under review.

M’s go-forward business comps, including go-forward locations and digital platforms across Macy’s, Bloomingdale’s and Bluemercury, increased 3.1% on an owned-plus-licensed-plus-marketplace basis.

Net credit card revenues were $172 million, up 11.7% year over year, driven by the company’s healthy credit portfolio and prudent management of net credit card losses. The metric represented 3.7% of net sales compared with 3.3% in the year-ago quarter.

Macy’s Media Network revenues were $38 million, down 5% year over year, indicating the timing of advertising spending on a year-over-year basis. The metric represented 0.8% of net sales compared with 0.9% in the prior-year quarter.

Update on M’s Brand PerformanceComps across the Macy’s brand increased 1.6% year over year on an owned-plus-licensed-plus-marketplace basis. Reimagine 200 locations continued to outperform, with comps rising 2.4%, marking positive comparable-sales growth in eight of the last nine quarters.

At the Bloomingdale’s brand, comps increased 10.2% on an owned-plus-licensed-plus-marketplace basis, marking its seventh consecutive quarter of growth and delivering the highest first-quarter sales volume in the brand’s 154-year history.

Comps at the Bluemercury brand rose 6.4% on an owned-plus-licensed-plus-marketplace basis, driven by strength in makeup, dermatological skincare and fragrance categories. New and remodeled stores continued to outperform during the first quarter.

Insight Into Macy’s Margins & ExpensesThe gross margin in the fiscal first quarter was 38.9%, which beat our estimate of 38.6%. This represented a year-over-year decline of 30 basis points. Management indicated that tariffs negatively impacted the gross margin by approximately 30 basis points, and excluding this impact, the gross margin would have been flat with the prior-year period.

The Zacks Rank #4 (Sell) company reported selling, general and administrative (SG&A) expenses of $1.95 billion, up 2% year over year. The increase reflected continued investments in the Bold New Chapter strategy, including Reimagine 200 locations, Bloomingdale’s and digital capabilities across nameplates. These investments were partially offset by ongoing cost-management efforts. As a percentage of total revenues, SG&A expenses remained flat at 39.9% compared with the prior-year quarter. We estimated SG&A expenses to increase 2.4% year over year in the fiscal first quarter.

Macy’s reported adjusted EBITDA of $290 million, down from $304 million in the year-ago quarter. The adjusted EBITDA margin was 5.9% of the total revenues compared with 6.3% in the prior-year period, representing a year-over-year decline of 40 basis points.

M’s Financial Snapshot: Cash, Inventory & Equity OverviewThe company ended the first quarter of fiscal 2026 with cash and cash equivalents of $1.29 billion, and total debt of $2.43 billion. Macy’s also had $2 billion of available borrowing capacity under its asset-based credit facility. The company does not face any material long-term debt maturities until 2030, underscoring its strong liquidity position.

Merchandise inventories increased 3.6% year over year. Management stated that both the composition and level of inventory are well-positioned heading into the summer season, supported by increased newness across price points and lower aged inventories relative to last year.

During the fiscal first quarter, the operating cash flow was an inflow of $292 million against an outflow of $64 million in the prior-year quarter. The free cash flow was an inflow of $140 million against an outflow of $203 million a year ago, reflecting significantly improved cash generation. Capital expenditure totaled $177 million, while monetization proceeds were $25 million.

Through its capital-return program, Macy’s returned $100 million to shareholders during the quarter, including $50 million in dividends and $50 million in share repurchases. The company repurchased 2.6 million shares for $50 million during the quarter. As of the end of the fiscal first quarter, $1.1 billion was available under its $2-billion share repurchase authorization.

Macy’s Q2’26 OutlookFor the second quarter of fiscal 2026, Macy’s expects net sales of $4.75-$4.80 billion. The outlook incorporates the impacts of fiscal 2025 store closures, which contributed roughly $35 million to sales during the comparable prior-year period. Comparable sales are projected to be flat to up 1% on an owned-plus-licensed-plus-marketplace basis.

The company expects the adjusted EBITDA margin between 6.9% and 7.2%, while adjusted earnings per share are forecast to be 29-34 cents. Management noted that tariffs and fuel costs are expected to remain a headwind in the fiscal second quarter, with the combined impacts anticipated to reduce earnings by 3-4 cents per share and pressure the gross margin by 20-40 basis points.

Sneak-Peek Into Macy’s FY26 GuidanceFollowing its better-than-expected fiscal first-quarter performance, Macy’s raised its fiscal 2026 outlook. Management noted that the updated guidance reflects stronger-than-anticipated fiscal first-quarter results and a modest increase in expected sales for the remainder of the year.

The company continues to acknowledge macroeconomic and geopolitical uncertainties that could influence discretionary spending and has maintained flexibility within its business model to respond to changes in the competitive landscape and external environment. The outlook assumes a larger tariff impact in the first half of the year than in the second half and does not include any tariff refunds. The guidance also reflects continued investments in Reimagine 200 locations and the company’s luxury nameplates to support long-term growth.

Macy’s expects net sales of $21.5-$21.75 billion, up from the previously mentioned $21.4-$21.65 billion. The outlook continues to reflect the impacts of fiscal 2025 store closures, which reduced annual net sales by approximately $145 million. The company also expects other revenues of $920 million.

Comparable sales (owned-plus-licensed-plus-marketplace) are projected to increase 0.5-1.2% compared with the prior stated range of a decline of 0.5% to growth of 0.5%. The improved outlook reflects continued momentum across the company’s go-forward business and positive customer response to its strategic initiatives.

The gross margin is anticipated to be 38.4-38.6%, indicating a 20-30 basis-point headwind from tariffs and fuel costs. SG&A expenses are expected to increase 1-2% on a dollar basis compared with fiscal 2025, with the expense rate anticipated to be in line with the prior year in the fiscal second and fourth quarters, and higher in the third quarter due to the timing of growth investments.

M Stock Past 3-Month Performance

Image Source: Zacks Investment Research

The adjusted EBITDA margin is expected between 7.7% and 7.9%. Adjusted earnings per share are anticipated to be $2.00-$2.20, up from the previously mentioned $1.90-$2.10. This incorporates an estimated 10-20-cent combined impact of tariffs and fuel costs. The outlook does not include the impacts of any future share repurchases under the company's existing authorization.

M shares have gained 14.8% in the past three months compared with the industry’s 2.2% growth.

Stocks to ConsiderWe have highlighted three better-ranked stocks in the retail space, namely, Tapestry, Inc. (TPR - Free Report) , Dillard's Inc. (DDS - Free Report) and Ross Stores Inc. (ROST - Free Report) .

Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.

Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Dillard's current fiscal-year earnings and sales suggests growth of 6.3% and 2.1%, respectively, from the year-ago actuals. DDS delivered a trailing four-quarter average earnings surprise of 27.9%.

Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company has a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 15.6% and 8.2%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.

Macy's Inc. NYSE: M kicked off the first quarter of 2026 with better-than-expected performance across the board, offering further evidence that the retailer's Bold New Chapter turnaround strategy is gaining traction.

The strong results also prompted the department store chain to raise its full-year outlook. Despite the good news, Wall Street's reaction was muted, with shares closing slightly higher following the report.

Get Macy's alerts:

Q1 Beat Fueled by Strength Across BrandsMacy's Q1 adjusted earnings came in at 13 cents per share, down from 16 cents a year ago but well ahead of Wall Street expectations of 2 cents per share. Revenue of $4.89 billion increased 1.8% year over year, topping analyst estimates of $4.61 billion.

Macy's Today

M

Macy's

$25.40 +0.37 (+1.46%)

As of 03:59 PM Eastern

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

52-Week Range$10.54▼

$25.65Dividend Yield3.03%

P/E Ratio10.50

Price Target$20.30

Growth was broad-based across Macy's portfolio. Performance at Bloomingdale's was particularly strong, with comparable sales (comps) rising 10.2% year over year, marking the best first quarter in the brand's history. Comps at the Macy's nameplate rose 1.6%, though the retailer's reimagined stores, which account for roughly 60% of the store base, saw comps grow 2.4%. At Bluemercury, which sells luxury beauty brands, comps increased 6.4%.

"In the first quarter, we delivered enterprise-wide growth, better than expected performance across all key metrics, and our best comparable sales in four years with all nameplates and channels positive," Chief Executive Tony Spring said on the earnings call.

He added, "These broad-based operational and financial improvements reflect the strength and viability of the Bold New Chapter strategy."

Macy's Raises Full-Year OutlookMacy's issued second-quarter guidance and raised its full-year outlook, citing better-than-expected first-quarter earnings and revenue results, as well as a modest increase in its sales expectations for the remainder of the year.

For the second quarter, the company expects net sales of approximately $4.75 billion to $4.8 billion, with comparable sales ranging from roughly flat to up 1%. Adjusted diluted earnings are expected to be between 29 cents and 34 cents per share.

For the full year, Macy's now anticipates net sales of $21.5 billion to $21.75 billion, up from its previous forecast of $21.4 billion to $21.65 billion. Comparable sales are expected to increase 0.5% to 1.2%, compared with prior guidance of down 0.5% to up 0.5%. Adjusted diluted earnings are now projected to be between $2 and $2.20 per share, up from the previous range of $1.90 to $2.10.

Macy's said the updated outlook reflects revised tariff and fuel assumptions, which it expects will have a roughly net-neutral impact on results this year. The guidance also provides flexibility to account for potential changes in the competitive landscape, as well as ongoing macroeconomic and geopolitical uncertainty.

Wall Street Reaction Remains MutedDespite the strong quarter and optimistic outlook, Wall Street's reaction was relatively muted following the report, with shares closing up just 0.4% to $21.76.

Investors may be taking a breather after the stock's strong run over the past year. Fueled by a series of better-than-expected earnings reports that have bolstered confidence in the company's turnaround strategy, shares had already gained roughly 90% over the prior 12 months.

Macy's, Inc. (M) Price Chart for Friday, June, 12, 2026

After reaching a 52-week intraday high above $24 in December, the stock pulled back during the first few months of 2026. Momentum appeared to return in March after Macy's delivered stronger-than-expected fourth-quarter results, giving shares a boost. However, the company's outlook prompted some analysts to lower their price targets. Still, over the three months leading up to the Q1 release, the stock rose 19%.

Macy's Stock Forecast Today12-Month Stock Price Forecast:
$20.30
-20.09% Downside

Reduce
Based on 14 Analyst Ratings

Current Price$25.41High Forecast$27.00Average Forecast$20.30Low Forecast$9.00Macy's Stock Forecast Details

Analysts Remain Cautious Despite Turnaround ProgressDespite signs that Macy's turnaround strategy is working, Wall Street remains cautious on the stock. The consensus rating is Reduce, with two Sell ratings, 11 Hold ratings, and one Buy rating. The average price target is approximately $19.90, roughly 15% below the current share price. The highest price target on Wall Street is $27, while the remaining targets range from $9 to $23.

The cautious stance may reflect concerns about whether Macy's can sustain its momentum, as well as broader uncertainty surrounding consumer spending and the macroeconomic environment.

Short Interest Climbs as Some Investors Remain SkepticalShort interest in the stock has also risen over the last several months. As of May 15, roughly 33.5 million shares, or 12.8% of the float, were sold short. That is up from approximately 21.1 million shares, or 8.2% of the float, on Jan. 15.

From a valuation standpoint, Macy's looks inexpensive relative to the broader retail industry. The stock currently trades at roughly 10X earnings, below the retail industry average of 11.3X. On a price-to-sales basis, shares trade at 0.27X compared with the industry average of 0.84X.

Although Wall Street remains cautious, Macy's latest quarter clearly highlighted continued progress in its turnaround efforts. Investors will be watching closely to see whether the company can continue to build on that progress in the quarters ahead.

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

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In partnership with the U.S. Soccer Foundation, Macy’s is helping expand access to the game across New York City

NEW YORK--(BUSINESS WIRE)--This summer, Macy’s brings the world’s game to life with Macy's World Soccer HQ – a dynamic, omnichannel experience designed to connect fans to the sport through product, storytelling and community.

As soccer’s popularity surges across the U.S., access to the sport has not kept pace - particularly in under-resourced neighborhoods. Across New York City, thousands of young people still lack safe, accessible places to play, contributing to what organizations call “soccer deserts.”

Macy’s is addressing this gap by partnering with the U.S. Soccer Foundation, turning its World Soccer HQ platform into a vehicle for both engagement and impact - connecting customers to the sport while supporting increased access for local youth.

Rooted in the belief that soccer is more than a game, Macy’s World Soccer HQ brings together commerce, culture and community. Through immersive retail experiences, storytelling and youth-focused initiatives, the campaign invites fans not only to celebrate the sport, but to be part of growing it.

“We’re honored to celebrate this global sport by bringing Macy’s World Soccer HQ to life, a one-stop destination where fans can discover everything they need to show their passion for the sport,” said Daniel Leppo, SVP, Merchandising, Men’s and Kids, Macy’s. “Featuring assortments from Nike, adidas, Puma and more, this experience reflects our belief that Celebrations Start at Macy’s, offering customers a place to shop, connect and support something bigger than the game itself.”

A Destination for Every Fan

At Macy’s Herald Square flagship, guests can step into an immersive world soccer marketplace inspired by the energy and global spirit of the game. The space brings together vibrant, country-driven displays, full-family assortments, and interactive moments in one cohesive experience.

Visitors can explore a curated collection spanning soccer jerseys, training apparel, accessories and collectibles from leading global brands, alongside lifestyle pieces influenced by soccer’s impact on fashion and culture. The destination also comes to life through a range of engaging in-store elements - including athlete-inspired photo opportunities, immersive tunnel moments, and digital activations - creating a social, high-energy environment where fans can shop and celebrate.

Macy’s World Soccer HQ extends beyond Herald Square to Macys.com and select stores nationwide, making the assortment accessible to fans everywhere. The assortment also serves as a Father’s Day gifting destination, with options ranging from official team kits to everyday fan essentials.

Macy’s Partners with U.S. Soccer Foundation

Through its partnership with the U.S. Soccer Foundation, Macy’s is supporting efforts to expand access to the sport in underserved communities. The initiative includes a kick-start donation to the Foundation and a dedicated soccer experience for local youth, helping introduce and grow the game at the grassroots level while raising awareness of soccer deserts across New York City.

“We’re thrilled to partner with Macy’s to expand access to soccer for young people,” said Diana Martin, Chief External Relations Officer at the U.S. Soccer Foundation. “By creating more safe places to play and connecting youth with trained coach-mentors, we’re helping more kids thrive—on and off the field.”

To expand access to the game in under-resourced communities, the U.S. Soccer Foundation has installed 88 mini-pitches across the greater New York City metro area. Made possible through a range of partnerships since 2015, these spaces provide safe places for youth to play and grow. The Foundation has also reached more than 571,000 young people in the region through its proven school-based and after-school programs and has trained 3,000 coach-mentors to deliver high-quality youth programming.

Celebrations Start at Macy’s

Macy’s is extending the excitement nationwide through a series of retail experiences and community activations that bring fans closer to the game.

On Saturday, June 13, Macy’s Celebration Saturdays will serve as a cornerstone of the program, featuring athlete appearances, live entertainment and on-site product customization, alongside curated offerings highlighted in Macy’s Father’s Day Gift Guide to inspire fans shopping for the occasion.

On Saturday, June 20, fans in Atlanta, Miami and the New York Metro area, will have the opportunity to win tickets to their local world soccer playoff by entering to win in-store at Macy’s Lenox Square, Macy’s Aventura and Macy’s Garden State Plaza. There is no purchase necessary to enter the sweepstakes. Official Rules will be available in store.

About Macy’s

Macy’s, the largest retail brand of Macy’s, Inc. (NYSE: M), helps customers celebrate – from everyday moments to life’s biggest occasions – with a curated assortment across apparel, home, beauty, accessories and more. Each year, Macy’s brings the nation together through two of its most beloved traditions: Macy’s Thanksgiving Day Parade and Macy’s 4th of July Fireworks, entertaining millions. Celebrate big and small moments in stores nationwide, at macys.com, or on the Macy’s app. For more information on Macy’s, Inc., visit www.macysinc.com.

About the U.S. Soccer Foundation

As the national leader for sports-based youth development in under-resourced areas, the U.S. Soccer Foundation is on a mission to let soccer do what it does: change absolutely everything. Founded as a legacy of the 1994 FIFA World Cup, the Foundation provides underserved communities access to innovative play spaces and evidence-based soccer programs that instill hope, foster well-being, and help youth achieve their fullest potential. Headquartered in Washington, D.C., the U.S. Soccer Foundation is a 501(c)(3) organization. For more information visit www.ussoccerfoundation.org or follow us on LinkedIn and Instagram.

NEW YORK--(BUSINESS WIRE)--Macy's, Inc. to Participate in Jefferies Consumer Conference.

Malls and department stores are seen by many as fading relics of the past, but don't tell that to Macy's (M +1.32%).

The clothing retail store chain just had its best first quarter in years, and its stock price is up 85% over the past 12 months. It even caught the attention of Berkshire Hathaway (BRKA +0.76%) (BRKB +0.55%), which added its first-ever stake in Macy's in the first quarter.

Revenue increased 2% in the quarter to $4.9 billion, while its comparable (or same-store) sales rose 3%. Macy's store comp sales were up 1.6%, but the company's Bloomingdale stores saw comp sales surge 10.2% while its beauty property, Blue Mercury, saw same-store sales jump 6.4%.

Net income rose 66% to $63 million while earnings per share increased 77% to $0.23 per share.

Image source: Getty Images.

The retailer has now had two straight quarters of earnings growth after declining earnings for much of the previous three years. Here are three reasons why Macy's stock is headed in the right direction.

1. A bold new chapter Much of the improvement stems from its Bold New Chapter initiative, launched two years ago. It focused on cutting costs by reducing the number of underperforming stores and focusing on a core group of 350 stores. That meant closing roughly 150 locations.

At the same time, the plan called for opening new locations of its luxury brands, Bloomingdale's and Blue Mercury, as both have been in high demand. We watched that play out in Q1 as these two brands saw comp sales surge.

The target was low single-digit sales growth, expenses rising by less than 2% to 3%, mid-single digit adjusted annual EBITDA growth, and free cash flow back to pre-pandemic levels. Macy's is hitting its sales and expense targets, and still progressing toward EBITDA and free-cash flow targets.

2. Reimagined stores As part of the Bold New Chapter strategy, Macy's plans to reimagine 200 stores to improve the customer experience. Initially, the company planned to open 125 reimagined stores, but it has been so successful that management upped the number to 200.

The 200 reimagined Macy's locations posted comparable sales increases of 2.4%, higher than the 1.6% comp sales increase for Macy's overall in Q1.

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The first quarter's success led Macy's to raise sales and earnings guidance for this fiscal year. The chain now expects $21.5 to $21.75 billion in net sales, up from the previous guidance of $21.4 to $21.65 billion. Further, comp sales are slated to increase 0.5% to 1.5% this fiscal year, up from the previous range of -0.5% to 0.5%.

In addition, adjusted earnings are targeted at $2.00 to $2.20 per share, up from a range of $1.90 to $2.10 per share.

3. A cheap stock price The turnaround plan caught the attention of Berkshire Hathaway, and I'm certain Macy's low valuation was a major reason why Berkshire Hathaway opened a new position.

Macy's stock is trading at 9 times earnings and 10 times forward earnings, making it dirt cheap. Further, the price-to-sales ratio is just 0.27, so Macy's stock is extremely attractive from a valuation standpoint.

As an added bonus, Macy's stock offers a strong dividend yielding 3.45%.

New York, New York--(Newsfile Corp. - May 29, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into The Gap, Inc. ("The Gap, Inc.") (NYSE:GAP) concerning potential violations of the federal securities laws.

The Q1 results fell short across key segments. Old Navy, which represents roughly half of Gap's total revenue, delivered comparable sales growth of just 1% -- well below the 3% consensus estimate that matched last year's quarterly performance. Management acknowledged the shortfall on the May 28 earnings call, stating the company was "not starting out as strongly as we anticipated." Athleta's quarter was described by CEO Richard Dickson as "disappointing," with an ongoing inventory-clearance process "taking longer than anticipated" resulting in additional "pressure on sales." As a result, management cut its 2026 full-year net sales guidance.
JPMorgan responded on May 29 by downgrading GAP from Overweight to Neutral and slashing its price target from $35 to $27. The analyst action compounded selling pressure that had already driven shares down more than 14% in after-hours trading the prior evening. Trading volume spiked to several times the 30-day average.

If you suffered a loss on your The Gap, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212)363-7500
Fax: (212)363-7171

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299469

Source: Levi & Korsinsky, LLP

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Gap Inc CEO Richard Dickson said the turnaround at Athleta is taking longer than expected, but the retailer remains committed to rebuilding the struggling activewear brand.

"Athleta is an important brand in the portfolio," Dickson said on CNBC's "Mad Money" on Friday. "We are in the rebuild year."

On Thursday, Gap reported weaker-than-expected results for Athleta, where first-quarter sales fell 12% to $270 million and comparable sales declined 11%. On the company's earnings call, management described Athleta as a "slower rebuild," warning second-quarter trends are expected to remain similar to the first quarter. Athleta's comp sales also were down 10% and 11% in the fourth and third quarters of last fiscal year, reflecting its challenges.

Athleta's woes aren't the only problem facing Gap right now.

Shares of the retailer plunged 17% Friday after weakness at Old Navy — Gap's largest brand by revenue — overshadowed strength elsewhere in the portfolio. Old Navy posted 1% comparable sales growth in the quarter, below analyst expectations of 3%, as softer demand in seasonal categories like dresses weighed on results and prompted Gap to lower its full-year sales outlook.

Still, Dickson said Gap sees a path to recovery for Athleta under the brand's CEO Maggie Gauger, who joined last August and has been leading an overhaul of the business. During the pandemic era, Athleta had been a buzzy growth driver for Gap, which also owns Old Navy and its namesake brand.

"She streamlined the assortment considerably, which is resulting in better [average unit retail], better margins, even with a challenging top line," Dickson said.

Gap has also reshaped leadership, improved creative execution and begun rolling out new merchandise that management believes is resonating better with shoppers.

"We've gotten some new merchandise in. It's checking really well," Dickson said. "It's small, they're early reads, but we do believe that this brand has strength to deliver."

Athleta, which ranks as the fifth-largest activewear brand in the category, remains an important long-term growth opportunity for Gap, according to Dickson.

"It's on us to prove that," Dickson said, adding that the company expects "slight improvement" in the second half of the year.

"We believe we'll continue to chip away at this and find the growth pattern for Athleta," he said.

watch now

Athleta's expected recovery has been pushed out for three straight years, as an attempt to widen its appeal ended up “appealing to no one in particular.”

The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. (“Gap” or “the Company”) (NYSE: GAP) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap’s Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.

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

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20260531916899/en/

Gap Inc. offers compelling value after a ~15% YTD and ~25% 12-month decline to a single-digit P/E multiple. I reiterate my buy rating on GAP, seeing margin improvement and a fundamental reset despite a disappointing Q1 and lowered top-line guidance. GAP is shifting from heavy discounting to improved supply planning, aiming to reduce inventory gluts and support healthier pricing.

, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.

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

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

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

CONTACT:

The Schall Law Firm 
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com

SOURCE The Schall Law Firm

NEW YORK, June 09, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Gap Inc. (“Gap” or the “Company”) (NYSE: GAP). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Gap and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 28, 2026, Gap reported its financial results for the first quarter of 2026, including revenue of $3.5 billion, which represented an increase of only 1% year-over-year and fell short of analyst expectations. The results fell short across key segments, including Old Navy and Athleta, and prompted management to cut 2026 full-year net sales guidance. 

On this news, Gap’s stock price fell $3.85 per share, or 15.4%, to close at $21.15 per share on May 29, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT: 
Danielle Peyton 
Pomerantz LLP 
[email protected] 
646-581-9980 ext. 7980

, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of The Gap, Inc. ("Gap" or "the Company") (NYSE: GAP) for violations of the securities laws.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Gap's Q1 results fell short of consensus estimates in several key segments. The Company stated the year was "not starting out as strongly as we anticipated" on its earnings call on May 28, 2026. The Company also cut its full-year net sales guidance. Based on this news, shares of Gap fell sharply.

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

We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].

The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.

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

CONTACT:

The Schall Law Firm 
Brian Schall, Esq.
310-301-3335
[email protected]
www.schallfirm.com

SOURCE The Schall Law Firm

Summer is considered peak season for the cruise line industry. Families typically have a summer break from school. The warm ocean waters are that much more inviting.

Carnival Corp. (CCL +3.61%) knows all about the waves. Nearly a third of its annual revenue and most of its fiscal 2025 profit were generated in the fiscal third quarter, which starts again next week.

Carnival stock has risen 21% over the past year, outpacing its two closest publicly traded rivals. This isn't a regatta, but bragging rights are cool. I think things can get better for Carnival from here.

Let's go over three reasons to consider going on this Carnival ride.

Image source: Getty Images.

1. It's an earnings sensation June is usually a quiet time for financial updates, but with its fiscal second quarter ending this week, Carnival will announce its latest results in late June. Carnival's stock has risen enough to attract attention, but not enough to fear a sell-off even if results are decent.

If recent history is any indication, the fresh numbers should be decent. Expectations are low. Analysts see revenue rising 6% while earnings growth remains flat. The $0.34-a-share profit that Carnival is expected to deliver in four weeks is just below the $0.35 a share it served up a year earlier.

Rising fuel and food costs should weigh on margins, but Carnival has an ace up its sleeve. It has consistently trounced quarterly bottom-line expectations for almost three years.

PeriodEPS EstimateActual EPSSurpriseFiscal Q3 2023$0.75$0.8615%Fiscal Q4 2023($0.13)($0.07)46%Fiscal Q1 2024($0.18)($0.14)22%Fiscal Q2 2024($0.02)$0.11650%Fiscal Q3 2024$1.15$1.2710%Fiscal Q4 2024$0.07$0.1494%Fiscal Q1 2025$0.02$0.13485%Fiscal Q2 2025$0.35$0.2446%Fiscal Q3 2025$1.32$1.439%Fiscal Q4 2025$0.25$0.3439%Fiscal Q1 2026$0.18$0.209% Data source: Yahoo! Finance. EPS = earnings per share ( adjusted ).

This isn't just a streak of 11 straight positive earnings surprises. The beats have come in at least 9% above Wall Street pros' models. What's more likely to happen, stretching this run to 12 in June or imploding under the whirlpool of inflation rising and consumer confidence taking on water? I like Carnival's chances to go for an even dozen beats in June.

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2. The value gap is real Carnival is the largest cruise line by trailing revenue, but it doesn't wear the market cap crown. That regal accessory belongs -- fittingly enough -- to Royal Caribbean (RCL +2.23%).

Carnival's market capitalization is just shy of $39 billion, about half Royal Caribbean's $76 billion market cap. Zoom out to enterprise value to account for each cruise line operator's net debt, and Royal Caribbean still leads, $97 billion to $64 billion.

The valuation disparity grows even more interesting when you consider that Carnival's trailing revenue of $27 billion is well above Royal Caribbean's top line of $18.4 billion. As a Royal Caribbean investor, I'll point out that there are good reasons for the valuation premium. Royal Caribbean has historically grown faster and delivered healthier margins. However, Carnival is starting to get its act together.

Earlier this year, Carnival reinstated its dividend. Its board authorized $2.5 billion in stock repurchases. These are moves for a company that has figured it out and is ready to return money to its shareholders. It could close the valuation gap if it maintains its recent bullish momentum.

3. It's not just the inside cabins that are cheap The third and perhaps best reason to buy Carnival in June is that it's a cheap stock in a largely overvalued market. The stock is trading for a reasonable 13 times this fiscal year's earnings estimate and only 11 times next year's bottom-line forecast.

A lot can go wrong for the industry as a whole and for Carnival in particular. However, bookings remain strong for Carnival's future sailings. Like a pool deck after a limbo party comes to an end, this story is no longer about how low it can go.