VANCOUVER, British Columbia, July 13, 2026 (GLOBE NEWSWIRE) -- (TSXV: PTF): Pender Growth Fund Inc. (the “Company” or “PTF”) is pleased to report that the business combination of long-time holding General Fusion Inc. (“General Fusion”) with Spring Valley Acquisition Corp. III (“SVAC”) (the “Business Combination”), closed on July 10, 2026.
On closing, Spring Valley Acquisition Corp. III was renamed “General Fusion Group Ltd”. The combined company’s shares and warrants commenced trading on the Nasdaq on July 13, 2026 under the ticker symbols “GFUZ” and “GFUZW” respectively.
General Fusion's Nasdaq listing comes at an important moment in the evolution of fusion energy. For decades, fusion energy has been regarded as one of science's greatest engineering challenges. Today however, it is increasingly emerging as a strategic priority for governments, the private sector and long-term investors. While commercialization remains a long-term objective, General Fusion's transition to the public markets represents an important milestone not only for the company, but for the broader fusion ecosystem. It reflects growing confidence that fusion technologies are beginning to attract the capital required to accelerate their path toward commercial deployment.
At Pender, we invested in General Fusion because we believe meeting the world's future energy needs will require breakthrough technologies alongside continued improvements to today's energy infrastructure. As artificial intelligence, electrification and digital infrastructure drive unprecedented growth in global electricity demand, the world will require abundant, reliable sources of carbon-free baseload power alongside renewables.
General Fusion's continued technical progress, including the 8.4 million degrees Celsius plasma heating milestone announced last month, provides tangible evidence that fusion has the potential to advance to commercial application. While significant technical challenges remain, we believe milestones such as these demonstrate that fusion is progressing from scientific research toward practical energy solutions. As global electricity demand continues to accelerate, we believe fusion has the potential to become an important component of tomorrow's energy infrastructure, supporting both energy security and the broader energy transition.
A news release issued by General Fusion provides further information and can be found here: https://www.globenewswire.com/news-release/2026/07/13/3326335/0/en/general-fusion-becomes-first-publicly-listed-fusion-company
About Pender Growth Fund Inc.
The Company’s objective is to achieve long-term capital appreciation for its investors. The Company utilizes its small capital base and long-term horizon to invest in unique situations, primarily small cap, special situations, and illiquid public and private companies. The Company trades on the TSX Venture Exchange under the symbol “PTF”. The Company posts its Reporting NAV on its website, generally within five business days of each month end. Please visit www.pendergrowthfund.com.
For further information, please contact:
Melanie Moore
Vice President of Marketing
PenderFund Capital Management Ltd. [email protected]
(604) 688-1511
Toll Free: (866) 377-4743
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release may contain “forward-looking information” (within the meaning of applicable Canadian securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as “believe”, “anticipate”, “project”, “expect”, “intend”, “plan”, “will”, “may”, “estimate” and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the following (collectively, the “Forward Looking Items”): the anticipated growth in global electricity demand driven by artificial intelligence, electrification and digital infrastructure, and the expectation that meeting future energy needs will require abundant, reliable sources of carbon-free baseload power alongside renewables; the expectation that fusion technologies will continue to attract the capital required to accelerate their path toward commercial deployment; the potential for fusion technology, including General Fusion's technology, to advance from scientific research to commercial application and practical energy solutions; and the anticipated long-term potential of fusion energy to become an important component of future energy infrastructure, supporting energy security and the broader energy transition.
The forward-looking statements in this news release are based on various assumptions (collectively, the “Forward Looking Assumptions”), including, without limitation, assumptions that each of the Forward Looking Items will occur or be achieved as described above. The forward-looking information herein is not a guarantee of future performance and involve risks and uncertainties that are difficult to control or predict.
A number of factors could cause actual results to differ materially from those discussed in the Forward Looking Items, including, without limitation, the risk that any of the Forward Looking Items will not occur as anticipated. Additional risk factors are discussed under the heading “Risk Factors” in the Company's annual information form available under its issuer profile on SEDAR+ at www.sedarplus.ca. There can be no assurance that the forward-looking information herein will prove to be accurate as actual outcomes and results may differ materially from those expressed in this news release. Readers, therefore, should not place undue reliance on any such forward-looking information. Further, the forward-looking information herein is made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking information herein, whether as a result of new information, future events or otherwise.
Key Takeaways GE is expected to report Q2 revenues of $11.9 billion, up 16.8% year over year, with stable EPS estimates.GE has topped earnings estimates in each of the past four quarters, averaging a 13.6% surprise.GE expects growth from commercial and defense markets, despite cost and supply-chain issues. GE Aerospace (GE - Free Report) is scheduled to release second-quarter 2026 results on July 16, before market open. The Zacks Consensus Estimate for quarterly earnings is currently pegged at $1.86 per share on revenues of $11.9 billion.
GE’s second-quarter earnings estimates have been stable over the past 60 days. The bottom-line projection indicates an increase of 12.1% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 16.8%.
Image Source: Zacks Investment Research
Earnings Surprise HistoryGE Aerospace has an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 13.6%. In the last reported quarter, it delivered an earnings surprise of 15.5%.
Earnings Whispers for GEOur proven model predicts an earnings beat for GE this time around. 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. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: GE Aerospace has an Earnings ESP of +2.79% as the Most Accurate Estimate is pegged at $1.91, higher than the Zacks Consensus Estimate of $1.86.
Zacks Rank: GE presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Likely to Shape GE Aerospace’s Q2 Results?The growing installed base and the higher utilization of engine platforms across commercial and defense end markets are expected to have benefited GE Aerospace in the second quarter. Solid demand for LEAP, GEnx & GE9X engines and related services, supported by growth in air traffic, fleet renewal and expansion activities, is likely to have benefited the Commercial Engines & Services business. Also, the company’s progress under its FLIGHT DECK lean model, including supplier improvements, is expected to have driven its performance. The consensus estimate for the segment’s second-quarter revenues is pinned at $9.13 billion, indicating robust 14.2% growth on a year-over-year basis.
The Defense & Propulsion Technologies business is anticipated to have performed strongly, backed by robust demand for the company’s defense products amid heightened geopolitical tensions and positive airline & airframer dynamics. The growing popularity of GE’s propulsion & additive technologies, critical aircraft systems and aftermarket services is anticipated to have boosted the segment’s performance in the second quarter. The consensus mark for the segment’s revenues is pegged at $3.19 billion, indicating strong 24.6% year-over-year growth.
GE has been making investments to expand and upgrade manufacturing facilities in the United States and overseas. These investments are likely to have enabled the company to boost its operational capacities and cater to the increased demand from its commercial and defense customers. This, along with its focus on operational execution, robust backlog (more than $210 billion at the end of first-quarter 2026) and aim to generate healthy free cash flow, is likely to have bolstered its second-quarter performance.
GE’s multi-year portfolio restructuring actions to rebalance its portfolio toward the aerospace sector allowed it to achieve better operational focus on its core business and financial flexibility. This is expected to have driven its margins and profitability in the to-be-reported quarter.
However, high costs and operating expenses owing to certain projects and research and development activities are likely to have weighed on the company’s margin performance. Supply-chain challenges and labor shortages, especially in the aerospace and defense markets, are likely to have been a spoilsport for the delivery of its LEAP engines.
GE’s Price PerformanceGE Aerospace’s shares are up 12.9% in the past three months against the Zacks Aerospace - Defense industry’s 5.3% decline and the S&P 500’s 8.6% growth. Its peers, Northrop Grumman (NOC - Free Report) and Howmet Aerospace Inc. (HWM - Free Report) , have lost 20.7% and gained 4.9%, respectively, over the same period.
Three-Month Price Performance
Image Source: Zacks Investment Research
GE Aerospace’s ValuationGE is trading at a forward 12-month price-to-earnings (P/E) ratio of 44.30X, higher than the industry average of 32.86X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with GE’s valuation, Northrop Grumman is trading cheaper, while Howmet Aerospace is trading at a premium. Notably, Northrop Grumman and Howmet Aerospace are currently trading at 18.53X and 49.37X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment ThesisGE Aerospace's robust and diversified portfolio, encompassing commercial engines, propulsion and additive technologies, along with its strength in the defense aerospace market, is likely to drive its performance. For 2026, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago level.
To add to its strengths, GE continues to reward shareholders with substantial dividends and share repurchases, supported by a strong cash flow and operational excellence.
How Should You Play GE Aerospace Pre-Q2 Earnings?GE Aerospace's strong foothold and solid momentum in the commercial and defense aerospace markets, driven by solid build rates, wide-body aircraft recovery and robust defense budget, bode well for growth. Given the strength in most of its served markets, the company has built a sound liquidity position that supports its shareholder-friendly policies.
Despite its expensive valuation, given the positive analyst sentiment and its growth prospects, the time appears right for potential investors to bet on this company.
Key Takeaways Goldman sees AI adding to inflation before long-term productivity gains emerge.Chips, software and power demand are fueling the next wave of inflation.ETFs such as QUAL, VTV and VIG could help cushion the impact. Inflation remains one of the biggest concerns for investors in 2026, though the catalyst behind the fears has changed over time. Earlier this year, investors were focused on the risk of oil-driven inflation as the Middle East conflict pushed energy prices higher. However, as the conflict de-escalated, diplomatic efforts gained momentum, oil prices retreated and the concerns gradually eased.
Now, a new inflation narrative has emerged, with economists increasingly warning that the global AI boom could create fresh price pressures. Goldman Sachs (GS - Free Report) cautions that the rapid adoption of AI is likely to fuel inflation globally as supply struggles to keep pace with soaring demand for critical AI components, including memory chips and semiconductors.
According to a Business Insider article, as cited by Yahoo Finance, the Wall Street giant expects the United States to be hit hardest by AI-driven inflation. Goldman forecasts that AI is already adding roughly 20 basis points annually to U.S. core Personal Consumption Expenditures (PCE) inflation. That contribution is expected to more than double to 50 basis points by year-end as AI adoption accelerates and supply constraints persist.
Understanding the Drivers of AI-Driven InflationHigher memory chip prices, software costs and electricity expenses are fueling the next wave of AI-driven inflation. As AI adoption gathers pace, Goldman expects software and accessories prices in the United States to climb sharply, with prices projected to rise about 30% year over year by November. The category also carries greater weight in the U.S. inflation basket, accounting for roughly 1% of core PCE inflation, more than double its share in other developed economies.
The investment bank also expects memory-related inflation to be more pronounced in the United States than in other countries.
Beyond rising chip and software costs, energy is emerging as another major source of inflationary pressure. As AI adoption accelerates, the rapid expansion of data centers is driving a sharp increase in electricity demand. At the same time, sustained increases in energy prices could push up electricity generation costs, further amplifying the broader inflationary pressures associated with the AI buildout.
The outlook is further complicated by geopolitical developments. Renewed tensions in the Middle East, following the collapse of the ceasefire, have reignited concerns over higher oil prices. If energy costs remain elevated while electricity demand from AI infrastructure continues to climb, the combination could intensify price pressures across the economy.
However, there is a silver lining. While AI is expected to generate near-term inflationary pressures, its long-term productivity gains could ultimately help bring inflation lower. The timing, however, remains uncertain, as it is unclear how long the initial price pressures will persist before those disinflationary benefits begin to emerge.
Stay Ahead of Rising Inflation With These ETFsRising inflation headwinds are likely to weigh on investor finances, encouraging a more cautious, risk-aware approach and a reassessment of portfolios. Below, we have highlighted a few ETF areas that investors may consider expanding their exposure to, as the risk of inflation increases.
Quality ETFsAmid market uncertainty, quality investing emerges as a strategic response, providing a buffer against potential headwinds. Investing in such high-quality companies can mitigate volatility for investors.
Investors can look at funds like iShares MSCI USA Quality Factor ETF (QUAL - Free Report) , Invesco S&P 500 Quality ETF (SPHQ - Free Report) and JPMorgan U.S. Quality Factor ETF (JQUA - Free Report) .
Value ETFsInvestors can leverage value investing, a strategy particularly compelling in today’s economic environment. Value investing through ETFs offers investors an easy and accessible way to follow this strategy. Value ETFs focus on stocks characterized by strong fundamentals and robust financial health, which trade below their intrinsic value.
Investors can consider Vanguard Value ETF (VTV - Free Report) , Avantis U.S. Large Cap Value ETF (AVLV - Free Report) and Vanguard Small Cap Value ETF (VBR - Free Report) .
Dividend ETFsDividend-paying securities serve as primary sources of reliable income for investors, particularly during periods of equity market volatility. These stocks offer dual advantage safety, in the form of payouts, and stability in the form of mature companies that are less volatile to large swings in stock prices. Companies offering dividends often act as a hedge against economic uncertainty.
Investors can consider Vanguard Dividend Appreciation ETF (VIG - Free Report) , Schwab US Dividend Equity ETF (SCHD - Free Report) and Vanguard High Dividend Yield Index ETF (VYM - Free Report) , with dividend yields of 1.50%, 3.23% and 2.25%, respectively.
Intel (INTC) shares fell about 3% on Monday even after the chipmaker said it has begun a â¬5 billion ($5.7 billion) investment to expand and modernize its manu
Shopify (SHOP) rose 3.15% in premarket after Jefferies upgraded the e-commerce platform to Buy from Hold and raised its price target to $160 from $140. The stoc
This is a fair market value price provided by Massive. Learn more.
52-Week Range$155.33▼
$239.10Dividend Yield1.26%
P/E Ratio115.97
Price Target$234.72
The aging of America has made healthcare stocks an evergreen investment theme. It's also a reason for investors to consider looking at real estate investment trusts (REITs) focused on this area. REITs are commonly seen as vehicles for income-oriented investors.
Welltower Inc. NYSE: WELL is a great example. This is the world’s leading residential wellness and healthcare infrastructure company.
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The company has a portfolio of over 2,500 senior and wellness housing communities spanning the United States, the United Kingdom, and Canada.
As of July 13, Welltower had a market cap of over $165 billion, over $100 billion larger than its closest rival, Ventas Inc. NYSE: VTR.
Senior Housing Demand Is Creating a Powerful Growth TailwindSince being interrupted in 2020 by a global pandemic, demand for senior housing has been surging, making REITs in this sector a solid choice for both growth and income.
WELL is up over 160% in the last five years and has delivered a total return (which includes its dividend) of over 230% in the last three years. There’s likely to be more growth ahead. The percentage of the population aged 80+ is expected to accelerate by a compound annual growth rate (CAGR) of 5.4% between 2026 and 2030. That's up from the 1.8% CAGR between 2010 and 2025.
Welltower Inc. (WELL) Price Chart for Monday, July, 13, 2026
This is the shift that patient investors have been waiting on for over a decade. However, with the company having shown such strong growth, it’s fair for investors to wonder if this is a time to buy or wait for a better entry point.
Breaking Down the Numbers Behind Welltower StockIn terms of valuation metrics, REITs have their own language. Two terms matter most for Welltower: net operating income (NOI) and normalized funds from operations (NFFO).
Net Operating Income (NOI) measures how the buildings themselves are performing. Think of it as rent collected minus the cost of running the property (i.e., staff, utilities, maintenance, food service). It excludes corporate overhead, interest payments, and taxes. NOI answers a simple question: Is this real estate portfolio actually making money before any financial engineering happens on top of it?
Welltower's same-store NOI (a comparison using only properties owned during both periods, so acquisitions don't distort the picture) grew 16.4% year-over-year in the first quarter of 2026. The senior housing segment alone grew 22.1%. This marked the 14th straight quarter of 20%-plus growth for that segment.
Normalized funds from operations (NFFO) is the REIT industry's substitute for "earnings per share." Regular net income assumes buildings lose value every year through depreciation, the same way a company would write down aging factory equipment.
But real estate often holds or gains value over time. NFFO adds depreciation back into net income, then strips out one-time items like gains from property sales, so investors can get a fair comparison from quarter to quarter.
Welltower reported NFFO of $1.47 per share in the first quarter, up 23% year-over-year. That's the growth rate management uses to justify the stock's premium. Full-year guidance was also raised, with the midpoint moving to $6.28 per share from $6.17.
REIT investors price the stock against NFFO instead. On that basis, Welltower trades closer to 30-40 times forward earnings, depending on where the stock sits. That's still a premium to healthcare REIT peers in the mid-teens to low-20s. Which means that investors have to be counting on enough growth to justify that premium.
How Housing Trends Could Affect Welltower StockWelltower's bet is that the 80-plus population boom starting later this decade will fill its buildings faster than new supply can be built. But that story assumes seniors will actually move into senior housing when the time comes. Research on aging in America suggests that's a more complicated transition than the demographic charts imply.
A Harvard Joint Center for Housing Studies analysis found that most seniors want to age in place, and that the U.S. faces an acute shortage of housing options that let them do it, whether that means staying in an existing home or moving to something smaller within their own community.
That distinction matters. "Aging in place" doesn't automatically mean senior housing—often it means retrofitting a current home or downsizing nearby, not relocating into a managed community.
AARP's 2024 national survey backs this up with numbers: 75% of adults 50 and older want to stay in their current homes as they age, and 73% want to stay in their communities specifically. Cost is the biggest obstacle. Nearly half of respondents expect to move eventually for financial reasons, driven primarily by rising mortgage or rent payments, maintenance costs, and property taxes.
Higher Mortgage Rates Are Slowing Senior Housing MovesMillions of older homeowners are sitting on mortgage rates locked in below 4% from the pandemic-era low-rate window. Selling that home to finance a move into senior housing means giving up a historically cheap mortgage payment for market-rate financing on whatever comes next. Even if the new living arrangement itself doesn't require a mortgage, the psychological and financial "sunk cost" of an ultra-cheap rate makes staying put feel safer.
Roughly half of homeowners with mortgages are sitting on rates far enough below current market levels that moving has become financially irrational. That dynamic has kept existing home sales running near 1990s-era volumes despite full employment and rising household income. It's a market where staying put pays.
However, there are early signs that this is loosening. Real estate agents surveyed in Spring 2026 reported that mortgage rate lock-in is becoming less of a factor in sellers' decisions, with sellers increasingly listing due to life circumstances rather than timing the market. But even an aggressive round of Fed rate cuts would likely leave the rate gap for the median locked-in borrower wider than 200 basis points.
Why Both Bulls and Bears Have a Case on WelltowerFor Welltower, this cuts two ways. The bear case: if seniors and their families delay a move because selling the family home feels like giving up cheap financing, occupancy gains could arrive more slowly than the demographic math implies.
The bull case: once a move becomes unavoidable (e.g., health decline, widowhood, a fall), the lack of affordable, accessible alternative housing pushes more of that unavoidable demand toward professionally operated senior housing rather than a DIY solution like an in-law suite or home retrofit, because those alternatives are themselves scarce and expensive to build.
Should You Invest $1,000 in Welltower Right Now?Before you consider Welltower, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Welltower wasn't on the list.
While Welltower currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Quantum computing is stepping out of the lab and into Washington D.C., with a high-profile industry showcase putting some of the market’s most speculative — and potentially transformative — names back on the radar.
NVDA stock is moving. See the chart and price action here. The event, hosted by the Quantum Economic Development Consortium, aims to connect policymakers with companies racing to commercialize next-generation computing.
For investors, the gathering is about signaling — policy support, federal funding priorities and long-term positioning in what could become a multi-decade technology cycle.
IBM, Nvidia Anchor the NarrativeIBM remains one of the most credible incumbents in the space. The company has steadily expanded its quantum roadmap while integrating the technology into enterprise and cloud offerings. Its presence underscores how legacy tech is attempting to bridge near-term monetization with long-term research.
Nvidia, while not a pure quantum play, is increasingly tied to the theme. Its GPUs are essential for quantum simulation and hybrid computing models, giving it exposure without the binary risk attached to early-stage quantum hardware firms.
Pure-Play Quantum Names Drive VolatilityThe real volatility — and potential upside — sits with smaller names like D-Wave, Rigetti and QCi. These stocks tend to trade on headlines, partnerships and government visibility rather than fundamentals.
Events such as the Capitol Hill showcase can act as short-term catalysts, particularly if they coincide with policy commentary around funding, national security or technological competitiveness with China.
The broader backdrop matters. Quantum technology is increasingly framed as a national security priority, which could unlock more federal dollars and procurement pathways, similar to what defense and chip stocks have already seen.
Still, investors should separate narrative from timeline. Commercially viable quantum computing remains years away, and most publicly traded names in the space are pre-profit and capital-intensive.
Tuesday’s Capitol Hill event is best viewed as a sentiment driver — a reminder that quantum is moving up the Trump administration’s policy agenda and staying firmly on the market’s speculative watchlist.
Photo: NESPIX / Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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MGM Resorts (MGM) is experiencing an uptick in its stock price following a report that it is in talks with Barry Diller's People Inc. (PPLI). Diller proposed o
Key Takeaways Construction Industries delivered $7.16B in Q1 2026 revenues, up 38% year over year.Caterpillar targets 1.25x Construction Industries sales to end users by 2030 vs. 2024. CAT is investing in autonomous equipment, AI-enabled solutions and digital services. Caterpillar Inc.’s (CAT - Free Report) Construction Industries segment generated around $25.1 billion in 2025 sales, accounting for roughly 37% of its total revenues. Its momentum accelerated in the first quarter of 2026, when revenues climbed 38% year over year to $7.16 billion, driven by higher sales volumes and favorable pricing. The segment contributed roughly 41% to the company's total revenues during the quarter.
The company views the segment as its backbone, reflecting more than a century of expertise in construction equipment. While machinery sales continue to drive growth, Caterpillar is increasingly expanding the segment's value proposition through rental offerings, digital capabilities and advanced technology solutions. This strategy aims to generate stronger customer engagement and create recurring revenue opportunities beyond the initial equipment sale.
The segment supports customers using machinery in infrastructure and building construction activities. The segment’s revenues have witnessed a CAGR of 8.2% over 2020-2025 and it serves more than 700,000 customers across more than 190 countries.
Looking ahead, Caterpillar has set a goal of increasing Construction Industries' sales to end users by 1.25 times by 2030 compared with 2024 levels. The company expects more than a 25% increase in global construction spend over 2024-2034.
Caterpillar continues to see attractive opportunities in both mature markets such as North America, Europe, Japan, Australia and New Zealand, as well as faster-growing regions across Asia (excluding Japan), Latin America, the Middle East, Africa and Eurasia. This balanced geographic footprint allows the company to capitalize on replacement demand in developed markets while benefiting from rising infrastructure investment and urbanization in emerging economies.
Caterpillar’s competitive advantages extend well beyond its product portfolio. Its extensive dealer network, connected equipment base and expanding digital ecosystem enable customers to improve machine utilization, lower operating costs and enhance productivity. The company is investing in autonomous equipment, AI-enabled jobsite solutions, machine automation and operator assistance technologies that improve efficiency and safety. These capabilities should become increasingly valuable as contractors face skilled labor shortages, rising project complexity and pressure to improve productivity.
Overall, the Construction Industries segment appears well-positioned for sustained growth, supported by global infrastructure spending, increasing equipment replacement demand, expanding digital services, autonomous technologies and a growing installed machine base. Although construction equipment demand remains cyclical and can be affected by interest rates and economic slowdowns, Caterpillar's diversified end markets, extensive dealer network, recurring services revenues and technology investments should help the segment deliver resilient performance over the long term.
Its peer, Komatsu Ltd. (KMTUY - Free Report) , is pursuing a similar strategy centered on automation, smart construction and electrification. Komatsu continues to expand its Smart Construction platform, autonomous equipment portfolio and digital services while benefiting from global infrastructure spending and mining investments. Like Caterpillar, the company expects software-enabled solutions and connected equipment to become increasingly important revenue contributors beyond traditional machinery sales.
Another close competitor is Deere & Company (DE - Free Report) , whose Construction & Forestry segment is emphasizing precision construction technologies, machine guidance systems and autonomous capabilities. Deere is investing heavily in digital workflows that improve jobsite efficiency, while also expanding aftermarket and technology-driven recurring revenues. Similar to Caterpillar, Deere views intelligent equipment, connected fleet and software integration as key long-term growth opportunities.
CAT’s Price Performance, Valuation & EstimatesCaterpillar shares have gained 49.6% in the past six months, outperforming the manufacturing - construction and mining industry's 42.2% growth.
Image Source: Zacks Investment Research
CAT is currently trading at a forward 12-month P/E of 34.03X, a premium compared with the industry’s 31.91X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 29.6%, while the 2027 estimate implies a growth of around 25%.
Image Source: Zacks Investment Research
Earnings estimates for both years have moved up over the past 60 days.
Image Source: Zacks Investment Research
Caterpillar stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Chord Energy Corporation (CHRD - Free Report) , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, could be a great candidate to consider.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.76%.
For the last reported quarter, Chord Energy Corporation came out with earnings of $4.56 per share versus the Zacks Consensus Estimate of $3.35 per share, representing a surprise of 36.12%. For the previous quarter, the company was expected to post earnings of $1.17 per share and it actually produced earnings of $1.28 per share, delivering a surprise of 9.40%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Chord Energy Corporation lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Chord Energy Corporation has an Earnings ESP of +3.52% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
I keep hitting the buy button on Salesforce (NYSE:CRM | CRM Price Prediction) and I am not sorry about it. The stock is down 38.06% year to date and down 39.45% over the last year, and every red day makes me want to add more. Wall Street has decided that single-digit growth in the legacy Sales and Service clouds is the whole story. I think Wall Street is staring at the wrong dashboard.
What Keeps Pulling Me Back The reason I keep buying is simple. Salesforce quietly turned itself into the plumbing for enterprise agentic AI, and the numbers finally show it. Agentforce ARR hit $1.2 billion, up 205% year over year, and Agentforce plus Data 360 combined ARR reached roughly $3.40 billion, up 200%. Customers delivered 3.8 billion Agentic Work Units, up 111% quarter over quarter, and more than half of Agentforce and Data 360 bookings came from existing customers. Marc Benioff summed it up on the call: “Salesforce has never been more essential.” I believe him because the pipeline data agrees.
Three Reasons the Thesis Holds First, valuation. I am buying a business at a trailing P/E of 18 and a forward P/E of 12, with a free cash flow yield near 10.77% and a PEG of 0.747. That is a software utility priced like a cyclical.
Second, the cash machine keeps compounding. FY26 free cash flow came in at $14.40 billion, gross margins run around 77%, and non-GAAP operating margin is guided to 34.3%. Management is using that cash the way I want them to. A $25 billion accelerated share repurchase knocked the share count from 970 million to 871 million in a single year, and a new $50 billion repurchase authorization sits behind it. Jim Cramer flagged it on Mad Money: “Salesforce is fighting back too. With a $50 billion buyback and half of that being done on accelerated repurchase basis.”
Third, the earnings pattern. Q1 FY27 posted EPS of $3.88 against a $3.1271 estimate, the fifth consecutive EPS beat, on revenue of $11.133 billion, up 13.27%. Forward visibility is stacked: current RPO of $33.6 billion, up 14%, on top of roughly $72 billion in total remaining performance obligations.
The Risk I Refuse to Wave Off The real risk is the one Wall Street keeps circling. Core subscription growth has settled into the single digits, and to fund the buyback Salesforce loaded up: noncurrent debt climbed from $10.4 billion to $39.3 billion. If Agentforce monetization stalls, that debt turns from fuel to friction. Retail sees it too. One r/investing post with 278 upvotes argued Salesforce is “down a third this year on AI disruption fears”. I take the concern seriously. I still buy, because interest coverage sits at 27.5x, the Platform and Other segment grew 25%, and Public Sector Cloud ARR crossed $2 billion, up 23%. Those are the tells of a moat widening.
Why the Buy Button Stays Active Management raised FY27 revenue guidance to $45.90 billion to $46.20 billion and lifted the FY30 revenue target to $63 billion. The analyst target price of $246.80 tells me the professional crowd already knows the math, even while the stock does not. When a 77% gross margin cloud utility trades at a free cash flow yield you would expect from a pipeline company, and it happens to own the leading agentic CRM, I am going to keep pressing buy until the market notices.
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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Commerce Bancshares (CBSH - Free Report) . This company, which is in the Zacks Banks - Midwest industry, shows potential for another earnings beat.
When looking at the last two reports, this bank holding company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.07%, on average, in the last two quarters.
For the last reported quarter, Commerce came out with earnings of $0.96 per share versus the Zacks Consensus Estimate of $0.94 per share, representing a surprise of 2.13%. For the previous quarter, the company was expected to post earnings of $0.99 per share and it actually produced earnings of $1.01 per share, delivering a surprise of 2.02%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Commerce. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Commerce has an Earnings ESP of +3.37% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 16, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Stocks fell and oil prices rose near $80 a barrel Monday after President Trump announced a new blockade and tolls on the Strait of Hormuz while investors remained jittery about tech stocks – signaling more bouts of choppy trading could be in store.
The Dow Jones Industrial Average fell 152 points, or 0.3%, by approximately 12:50 p.m. ET, while the S&P 500 and Nasdaq slid 0.6% and 1.3%, respectively – led by steep declines in chipmakers and AI-exposed stocks.
In a Truth Social post Monday morning, Trump said the strait is open – but announced, “We are reinstating the [sic] THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving.”
Stocks fell and oil prices rose near $80 a barrel Monday. Getty Images “The USA will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped.”
The announcement – after the US and Iran exchanged fresh rounds of strikes over the weekend – reheated fears that the world’s worst-ever energy supply disruption could last for weeks or months longer without a permanent peace deal, driving prices higher.
Brent crude oil rose 5.5% to $80.15 a barrel, while West Texas Intermediate jumped 5.1% to $75.08.
National average gasoline prices were $3.87 a gallon as of Monday, down from highs of $4.56 a gallon this spring – but the decline in gasoline has slowed over the past few weeks as the US and Iran disagree over the control of the strait.
Meanwhile, chipmakers extended their losses – and SpaceX and SK Hynix saw declines after their record-breaking IPOs – as investors worry companies may be overspending on the new tech, creating an “AI bubble.”
“I expect choppier trading in AI and semiconductor stocks over the next several weeks,” Scott Martin, partner at Kingsview Wealth Management, told The Post – nodding to dual pressures from tensions in the Strait of Hormuz and an AI trade coming off an extraordinary run.
However, he argued investors should not necessarily take the downturn as a sign that the AI trade is doomed.
Smoke rises from a port near the Strait of Hormuz following a reported US strike on July 8. Social Media via REUTERS “Markets that reach record highs rarely move in a straight line, and profit-taking after a rally like this is healthy, not necessarily troublesome,” Martin said. “I don’t view this as the beginning of a broad market collapse, but investors should expect more volatility as earnings season unfolds.”
The major question top of mind for investors, he said, is not whether AI spending can eventually lead to long-term growth, but whether current earnings can justify how much and how fast companies are spending.
US-listed shares of SK Hynix fell 6.8% after soaring 13% on Friday in their debut on the Nasdaq. South Korean shares in the company also plunged.
Shares of SpaceX – which last month broke the record for the largest-ever IPO – slipped for a second trading day, falling 4.3% to $139.02 – nearing its initial $135 price.
President Trump announced a new blockade and tolls on the Strait of Hormuz. AP Photo/Alex Brandon Chipmakers including Micron, Sandisk, AMD, Intel and Samsung slumped 5.2%,12.2%, 3.7%, 5.9% and 10.7%, respectively.
Ahead of what is expected to be a blowout earnings week, US banks including JPMorgan, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo dipped 0.7%, 1%, 1.2%, 0.7%, 1.7% and 0.2%, respectively.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? NextEra Energy (NEE - Free Report) , which belongs to the Zacks Utility - Electric Power industry, could be a great candidate to consider.
This parent company of Florida Power & Light Co. has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.56%.
For the last reported quarter, NextEra came out with earnings of $1.09 per share versus the Zacks Consensus Estimate of $0.98 per share, representing a surprise of 11.22%. For the previous quarter, the company was expected to post earnings of $0.53 per share and it actually produced earnings of $0.54 per share, delivering a surprise of 1.89%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for NextEra. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
NextEra currently has an Earnings ESP of +2.44%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 24, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CNBC’s America’s Top States for Business 2026, the 20th edition of the annual study by Scott Cohn published July 13, 2026, ranked the 10 strongest state economies in the country. Texas came in second, behind North Carolina. In the full study, weighed down by quality-of-life factors, Texas finished #4 overall.
North Carolina at #1 North Carolina posted the country’s best economy despite its legislature failing to pass a budget for more than a year. The state ran on its old spending plan until Governor Josh Stein signed the new budget this week. Underneath the dysfunction: 2025 GDP of $682.4 billion, up 2.7%, a Moody’s Aaa rating, $5.26 billion in foreign direct investment in 2024, and a net gain of 84,100 residents in 2025, the most in the nation. The corporate anchors are defensive and cash-generative: Bank of America (NYSE:BAC | BAC Price Prediction), Duke Energy, and Labcorp. The one soft spot: nearly 40% of state spending depends on federal funding, the 12th-highest exposure in the country.
Texas: The Economic Juggernaut With a Housing Problem CNBC called Texas “an economic juggernaut year after year.” The state posted 2025 GDP of $2.27 trillion, up 2.5%, and pulled in $22.1 billion in foreign direct investment in 2024, the largest of any top-10 state. It leads the nation in exports per capita. The headquarters roster keeps growing: Oracle (NYSE:ORCL) in Austin, Tesla (NASDAQ:TSLA) at Gigafactory Texas, and AT&T (NYSE:T) in Dallas. On June 16, 2026, NVIDIA’s Jensen Huang broke ground on Coherent’s advanced manufacturing facility in Sherman, Texas.
For real estate owners and buyers: the housing market is stagnating, price appreciation has stalled, and foreclosures are rising. That breaks from the last decade’s pattern. Tariff risk is a second overhang: international goods trade equals 29.3% of nominal GDP, the highest share of any top-10 state, at $850.2 billion, still exposed to duties not invalidated by February’s Supreme Court ruling. And quality of life ranked #49 out of 50, which is why Texas ranks #4 overall despite the #2 economy.
The Rest of the Top 10 California ranked #3, with the nation’s largest GDP at $3.38 trillion and unemployment at 5.3%, the highest in the country. The state’s nonpartisan Legislative Analyst’s Office warned in May that a $25 billion tax windfall is “not sustainable”. New York came in #4 on 2.9% GDP growth, offset by out-migration of college-educated workers. Washington, South Carolina, Delaware, Minnesota, Ohio, and Wisconsin rounded out the list, with South Carolina posting 3.1% GDP growth, tied with Florida for best in the nation.
What to Do With It The macro backdrop is friendlier than expected. Bank of America Global Research forecasts US real GDP growth of 2.1% in 2026 and 2.3% in 2027, and a year ago more than half of economists in the CNBC Fed Survey predicted a recession that never arrived. Infrastructure, not economy, was the #1 weighted category this year, reflecting corporate demand for power and water to run data centers and advanced manufacturing.
For businesses, Texas remains the cleanest pure business case: #2 economy, Aaa credit, no state income tax. For homeowners and real estate investors in Texas, stalled prices and rising foreclosures signal genuine risk repricing. For anyone weighing a move, North Carolina is the sleeper: top-ranked economy, Aaa credit, and the biggest in-migration in the country. For equity investors, the map itself is the trade. California’s AI names, Texas’s corporate transplants, and North Carolina’s financials and healthcare anchors each represent a different bet on which state economy compounds fastest from here.
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Shares of Oracle (NYSE:ORCL | ORCL Price Prediction) are trading at $132.27 in Monday afternoon action, down 6% on the day and touching a fresh 52-week low below the $134.10 prior floor.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Buffalo, M&T Bank Corporation (MTB - Free Report) is a Finance stock that has seen a price change of 20.28% so far this year. The company is currently shelling out a dividend of $1.50 per share, with a dividend yield of 2.48%. This compares to the Banks - Major Regional industry's yield of 2.72% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $6.00 is up 5.3% from last year. Over the last 5 years, M&T Bank Corporation has increased its dividend 3 times on a year-over-year basis for an average annual increase of 5.36%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. M&T Bank's current payout ratio is 33%, meaning it paid out 33% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MTB for this fiscal year. The Zacks Consensus Estimate for 2026 is $18.81 per share, with earnings expected to increase 9.36% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MTB presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Key Takeaways M&T Bank's Q2'26 earnings are estimated to be $4.66 per share, up 8.9% year over year.Revenues are projected to be $2.48 billion, reflecting 3.4% growth from the prior-year quarter.Higher NII and decent lending activity may support results, while expenses and credit costs remain headwinds. M&T Bank Corporation (MTB - Free Report) is slated to report second-quarter 2026 results on July 15, before the opening bell. The company is expected to have registered year-over-year increases in quarterly revenues and earnings.
In the last reported quarter, the company’s results were supported by higher net interest income (NII) and non-interest income, along with modest loan growth. However, a decline in deposits, higher expenses and increased provisions for credit losses acted as headwinds.
The company has an impressive earnings surprise history. Its earnings surpassed estimates in the trailing four quarters, with an average surprise of 6.7%.
Factors to Influence M&T Bank’s Q2 ResultsLoans & NII: Per the Fed’s latest data, demand for commercial and industrial, real estate and consumer loans was decent in the second quarter of 2026. This is likely to have supported M&T Bank’s lending activity and growth in average interest-earning assets in the to-be-reported period.
The Zacks Consensus Estimate for average interest-earning assets is pegged at $194.8 billion, indicating a year-over-year rise of 1.2%.
The Federal Reserve kept interest rates unchanged in the second quarter of 2026, while noting that economic activity continued to expand at a solid pace despite elevated uncertainty and inflation remaining above its 2% target. Hence, a stable rate environment, along with decent loan demand, is expected to have supported M&T Bank’s NII growth.
The Zacks Consensus Estimate for NII (on a tax-equivalent basis) is pegged at $1.79 billion, indicating an increase of 1.8% from the year-ago reported number.
Fee Income: MTB’s average total deposits are expected to have remained relatively stable in the second quarter of 2026. This is expected to have provided some support to revenues from service charges on deposit accounts.
The Zacks Consensus Estimate for the metric is pegged at $142.3 million, indicating a 2.3% rise from the year-ago quarter’s reported figure.
In the second quarter of 2026, mortgage rates hovered in the mid-6% range, with affordability continuing to weigh on homebuying demand. While purchase activity remained subdued due to elevated borrowing costs and limited housing inventory, refinancing activity improved during the quarter. As a result, M&T Bank's mortgage banking revenues are likely to have received some support.
The Zacks Consensus Estimate for mortgage banking revenues is pegged at $129.8 million, indicating a 2.2% rise from the year-ago quarter’s reported level.
The consensus estimate for brokerage services income of $36.1 million indicates a 3% increase from that reported in the second quarter of 2025.
The Zacks Consensus Estimate for trust income of $190.3 million indicates a 4% rise from the year-ago quarter’s actual.
The Zacks Consensus Estimate for total non-interest income is pegged at $672.8 million, indicating a decline of 2.3% from the year-ago quarter's reported figure.
Expenses: Despite ongoing cost-control initiatives, the company’s expenses are expected to have remained elevated in the second quarter of 2026, reflecting continued investments in strengthening its franchise.
Asset quality: The operating environment continued to remain challenging in the second quarter of 2026, weighed down by persistent geopolitical uncertainty and elevated inflation. Additionally, the Fed’s June policy statement indicated the possibility of a rate hike, which could pressure borrowers’ repayment capacity. Against this backdrop, M&T Bank is expected to have maintained a cautious approach and built higher provisions for potential credit losses in the second quarter of 2026.
What Our Quantitative Model Predicts for MTBOur proven model predicts an earnings beat for M&T Bank 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. That is exactly the case here.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for M&T Bank is +0.13%.
Zacks Rank: M&T Bank currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for MTB’s second-quarter earnings has remained unchanged at $4.66 per share over the past seven days. The figure indicates an increase of nearly 8.9% from the year-ago quarter.
The consensus estimate for revenues is pegged at $2.48 billion, implying a rise of 3.4% from the year-ago reported level.
Other Stocks That Warrant a LookHere are a couple of other bank stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Earnings ESP for JPMorgan Chase & Co. (JPM - Free Report) is +0.49% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to report second-quarter 2026 results on July 14, 2026. Over the past seven days, the Zacks Consensus Estimate for JPM's quarterly earnings has been revised upward to $5.55 per share.
U.S. Bancorp (USB - Free Report) is also scheduled to announce second-quarter 2026 results on July 16, 2026. The company has an Earnings ESP of +0.34% and a Zacks Rank #2 at present.
Quarterly earnings estimates for USB have been revised upward to $1.28 per share over the past week.
I love technology stocks -- even before the artificial intelligence boom, I was a big fan of Alphabet, Microsoft, Nvidia, and the rest of the tech world. But what I don't love about them is their stingy (or nonexistent) dividend payouts.
I get it. Most tech companies are investing heavily in developing new products, scaling up their businesses, or building infrastructure such as chips and computing capacity. But if you're seeking a regular source of passive income along with your investments, it's hard to get excited about Alphabet's 0.25% yield, or Microsoft's 0.95%, or Nvidia's 0.5%.
Fortunately, there are a lot of other stocks that you can turn to for a reliable payout. And they can be found in all sorts of sectors, which provides a great way to diversify if you feel your portfolio is getting a little too heavy with tech stocks.
Let's look at three examples with yields greater than 2%, each representing a different part of the market: Realty Income (O +1.22%), Coca-Cola (KO +1.10%), and AbbVie (ABBV 0.53%).
Image source: Getty Images.
1. Realty Income: The real estate pick Realty Income is a real estate investment trust, meaning it holds a broad portfolio of commercial real estate. REITs were created by Congress to allow investors to earn income from commercial real estate -- and Realty Income, in my opinion, is the best of the bunch.
Realty Income has about 15,500 properties across 92 industries, located in all 50 U.S. states as well as nine countries in Europe. Its holdings are most heavily concentrated in grocery stores, at 11%, but Realty Income also has convenience stores, restaurants, dollar stores, home improvement locations, and automotive garages.
Today's Change
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That means Realty Income is as diversified a real estate company as you can find. Its top client is Dollar General, which accounts for only 3.3% of Realty Income's annualized contracted rent. So if any one client were to suddenly go out of business, the REIT wouldn't suffer.
Revenue in the first quarter was $1.54 billion, up from $1.38 billion a year ago, and net income per share rose from $0.28 to $0.33. Realty Income has paid a monthly dividend for 673 consecutive months, or more than 56 years, and its current yield is 5.1%.
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2. Coca-Cola: The consumer goods pick Coca-Cola is the leading seller of carbonated soft drinks in the U.S., but it also sells an impressive array of coffee, juices, sports drinks, water, and teas. The company managed to increase its market share in all of its markets in the first quarter, thanks in part to global campaigns that linked the brand to culturally meaningful occasions:
an AI-enabled campaign in China that allowed consumers to create portraits around Coca-Cola packaging for the Chinese New Year a digital campaign in Türkiye that encouraged consumers to share recipes a campaign centered around its Fanta brand to celebrate Ramadan in Indonesia a campaign in Brazil centered around Sprite to promote Carnival and summer festivals Coca-Cola Segment
Q1 2026 Sales Increase
Q1 2026 Net Revenue Increase
Europe, Middle East, and Africa
5%
5%
Latin America
7%
14%
North America
11%
12%
Asia Pacific
10%
6%
Bottling investments
11%
12%
Consolidated
8%
12%
Data source: Coca-Cola press release.
The company has raised its dividend for 65 consecutive years and is still going strong. The current yield for Coca-Cola stock is 2.5%.
3. AbbVie: The pharmaceutical pick AbbVie is perhaps best known for its drug Humira, a treatment for inflammatory diseases which generated billions of dollars in revenue for the company and its shareholders. But regulatory exclusivity doesn't last forever, and Humira lost its exclusive status in 2023, opening the door to more competition.
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Fortunately for shareholders, AbbVie had a deep bench of drugs to turn to, and those drugs more than made up for Humira, especially Skyrizi and Rinvoq. Skyrizi, a treatment for psoriasis and Crohn's disease, generated $4.48 billion in revenue in the first quarter, up 30.9% from a year ago. Rinvoq, which treats dermatitis, arthritis, and other ailments, brought in $2.12 billion in the quarter, up 23.3%. And the company is still getting money from Humira, which generated $688 million in sales, although that was down 38.6%.
Overall, AbbVie's first-quarter revenue totaled $15 billion, up 12.4% from a year ago. AbbVie stock has a current dividend yield of 2.8%.
SSR Mining (SSRM) is now a pure-play Americas gold and silver producer with $2.1B net cash after divesting Çöpler. SSRM's four operating mines generate robust free cash flow, supporting a 10% FCF yield and ongoing capital deployment opportunities. The stock trades at 0.7x NAV with a Buy rating and $40 price target, reflecting confidence in management's acquisition strategy.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) CEO Satya Nadella published an X essay titled “The Reverse Information Paradox” that has become one of the most-discussed pieces of AI strategy writing of the year. His argument reframes what enterprises buy when adopting frontier AI and points investors toward companies that help customers keep data inside their own walls.
Nadella starts with economist Kenneth Arrow’s classic Information Paradox: a seller of knowledge risks giving it away by describing what’s for sale. He argues AI inverts that setup: the buyer now pays twice, once in dollars and again in the proprietary know-how they must reveal to make a model useful. Prompts, tool calls, corrections, and evals become training exhaust that leaks institutional expertise to whoever owns the learning infrastructure.
His prescription is a hard enterprise trust boundary, with customers owning their data, traces, evals, adapted weights, and memory. The framework he offers runs on five words: Control, Capability, Choice, Cost, and Compound, with the orchestration layer decoupled from any single model. That’s a clear invitation to look at Microsoft, Palantir Technologies (NASDAQ:PLTR), and Snowflake (NYSE:SNOW).
Microsoft: Selling the Shovels and the Fence Microsoft stock has struggled in 2026 and is down 19% year to date (YTD), with shares recently at $392.68. Yet, the underlying AI business keeps scaling: Nadella disclosed that Microsoft’s AI annual revenue run rate surpassed $37 billion, up 123% year over year, with commercial remaining performance obligations of $627 billion.
On Microsoft’s Q3 FY2026 call, Nadella described Agent 365 as “a control plane that extends companies’ existing governance, identity, security, and management frameworks to agents.” That’s the same trust-boundary language from the X essay, productized. Microsoft plans roughly $190 billion in calendar 2026 CapEx.
Investors can note the tension: Nadella benefits from framing the trade this way. Microsoft’s deep OpenAI partnership also means it sits on the other side of this critique.
Palantir: Owning the Means of Production Nadella explicitly quotes Palantir CEO Alex Karp in the essay: “What the technical customers want is control over their compute, their models, their data stack, and their alpha. They want to know they own the means of production, and it’s not being transferred to someone else.” Palantir’s AIP is built around that pitch: keep the customer’s data, ontology, and workflows inside the customer’s boundary.
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The numbers back the momentum. Palantir Technologies’ Q1 FY2026 revenue grew 85% year over year to $1.63 billion, U.S. commercial revenue jumped 133%, and the Rule of 40 score hit 145%. Palantir stock is down 29% YTD, so the valuation reset has been sharp even as fundamentals accelerate.
Snowflake: The Governed Data Layer Snowflake positions itself as the neutral data foundation enterprises can build agents on without shipping context to a model vendor. On the Q1 FY2027 call, Snowflake CEO Sridhar Ramaswamy stated that “With Cortex Code and Snowflake Intelligence, we are extending from the trusted foundation for enterprise data and context to become the control plane for the Agentic Enterprise.”
The uptake looks real. Snowflake’s product revenue rose 34% year over year to $1.33 billion, net revenue retention held at 126%, and 13,600+ accounts now use Snowflake AI capabilities. Snowflake shares are up 24% YTD, making it the standout performer of the three stocks.
How to Position Around the Thesis Nadella’s essay is both intellectually serious and, most likely, commercially motivated. His argument that value should accrue to knowledge creators rather than infrastructure owners is compelling and neatly describes products Microsoft already sells.
For investors drawn to the data-sovereignty theme, Microsoft stock offers scale and cash flow, Palantir stock offers the purest operational-AI expression, and Snowflake stock offers the governance layer beneath both. All three carry rich multiples relative to broader software, so this is a positioning call rather than a valuation bargain.
Investors could watch upcoming earnings from all three names for confirmation that agentic workloads keep compounding. The next Microsoft earnings report may show whether the “reverse paradox” framing is turning into billable revenue or remains a well-crafted narrative.
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Palantir is back on every screen this month, up 14.55% in a single week as retail traders pile back into the AI infrastructure trade that briefly wobbled in June. But here is what you should actually be watching.
Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) now trades at a trailing P/E of 145 and a forward P/E of 89, with a price-to-sales multiple of 59. That reads like a lottery ticket. The company’s $309.9 billion market cap is being underwritten by $5.22 billion in trailing revenue and CEO Alex Karp’s assertion that “Palantir’s Rule of 40 score has soared to 145%”. Even after the recent bounce, the stock sits 25.43% lower year to date and 17.5% below its June 1 level, and Reddit engagement has cooled to predominantly neutral chatter across investing forums. The story is intact. The math is stretched.
Now look at Salesforce (NYSE:CRM), which the same market has punished to $165.65, off 37.14% year to date and 38.61% over the last twelve months. Contrarian setups like this are rare.
Three reasons Salesforce screens better on valuation 1. Real earnings at a real multiple. Salesforce trades at a trailing P/E of 19 and a forward P/E of 12, backed by $8.64 in trailing EPS and a PEG ratio of 0.779. Fifth consecutive quarterly EPS beat: $3.88 versus a $3.13 estimate, a 24.08% beat. Revenue reached $11.13 billion, up 13.3% year over year. The analyst target of $246.44 implies a gap the market has yet to close.
2. Cash returned to shareholders. Salesforce returned $27.5 billion to shareholders in Q1 alone, anchored by a $25 billion accelerated share repurchase that took the diluted share count from 970 million to 871 million. Free cash flow was $6.556 billion in a single quarter. Palantir, by contrast, pays no dividend and continues to lean on $201.6 million of quarterly stock-based comp that pushes dilution the other direction.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
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Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
3. The same AI catalyst, at a fraction of the price. Agentforce ARR hit $1.2 billion, up 205% year over year, and combined Agentforce plus Data 360 ARR reached nearly $3.4 billion, up more than 200%. Salesforce processed 28.6 trillion tokens to date and delivered 3.8 billion agentic work units. Marc Benioff called it “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow”. Same agentic AI story Palantir sells. Attached to a 77.68% gross margin, a 21.8% operating margin, and current RPO of $33.6 billion.
Why Wall Street has not caught up yet Retail is still sifting the wreckage. One Reddit post that gathered 807 upvotes and 308 comments in late June asked, “Salesforce down 30% in 14 straight red days at 10.5x forward earnings… What is anyone actually doing here?” When a mega-cap software leader with 36.73% net income growth and a $63 billion FY30 revenue target gets discussed like a burning house, the mispricing is nearly finished.
The retirement-focused investor does not need another parabolic chart. Put Salesforce on the top of your research list and read the Q1 FY27 filing before the next earnings report reprices it.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Palantir (NASDAQ:PLTR | PLTR Price Prediction) and Snowflake (NYSE:SNOW) both delivered blockbuster earnings reports this spring, and the results tell two very different AI stories.
Palantir reported 85% revenue growth anchored by defense and enterprise AIP wins. Snowflake countered with its strongest sequential dollar quarter ever, powered by Cortex adoption. One is scaling profits fast. The other is scaling consumption faster.
Government Muscle Lifts Palantir. Cortex Lifts Snowflake. Palantir’s Q1 FY2026 landed with $1.63 billion in revenue and an adjusted EPS of $0.33, both comfortably ahead of the Street. U.S. commercial revenue jumped 133% to $595 million as AIP kept displacing legacy stacks. CEO Alex Karp told investors, “Palantir’s Rule of 40 score has soared to 145%.” That is a genuinely rare number in enterprise software.
Snowflake’s Q1 FY2027 came in at $1.39 billion in revenue, with product revenue up 34% year over year and non-GAAP EPS of $0.39. Sridhar Ramaswamy framed the quarter as an inflection: “With Cortex Code and Snowflake Intelligence, we are extending from the trusted foundation for enterprise data and context to become the control plane for the Agentic Enterprise.” Roughly 13,600 accounts now touch Snowflake AI features.
Business Driver Palantir Snowflake Core Growth Engine AIP + U.S. Government Cortex + AI Data Cloud GAAP Profitability $754M operating income -$326M operating loss Guidance Move Raised to 71% growth Raised to 31% growth An Ontology Bet Versus a Data Gravity Bet Palantir’s pitch is control. CTO Shyam Sankar called tokens “the new coal” and positioned AIP as the governance layer that stops what Karp bluntly calls AI slop. The Ship OS work with the Navy reportedly cut a manufacturing bill of materials approval from 200 hours to 15 seconds. That is the kind of receipt defense buyers reward with sticky contracts.
Snowflake’s bet is gravity. Data sits in the warehouse, so agents and models come to it. Ramaswamy has leaned into partnerships to reinforce that, including a $6 billion multi-year AWS agreement, a deepened OpenAI collaboration, and the pending Natoma acquisition for AI agent connectivity. Net revenue retention of 126% suggests existing customers keep spending more as workloads expand.
The market has noticed the split. Since its report, Palantir shares are down 13.18%, while Snowflake has climbed 49.18%. Valuation gravity is real, even for winners.
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General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
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With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
The Next Test Is Whether the Multiples Hold For Palantir, I want to see whether U.S. commercial can keep printing triple-digit growth against a harder compare, and whether stock-based compensation of $201.6 million eases as headcount scales.
For Snowflake, the questions are GAAP losses, consumption variability, and whether Cortex Code and Intelligence convert to durable committed spend rather than experimental credits.
Why I Lean Toward Snowflake Right Now Personally, I like Snowflake more here. The valuation reset over the past two years has been brutal, but the reacceleration to 34% product growth, a raised operating margin outlook of 13.5%, and $300 million in buybacks feel like a fundamentals-led rerating.
Palantir is an extraordinary business, and Karp is right that few peers can match a 145% Rule of 40. But shares still trade near a a large market cap, and Reddit sentiment has already turned, with one widely upvoted post calling it a “dying horse” just three weeks after earnings.
For readers focused on defensive AI compounding, Palantir screens well. For those tracking reasonably priced reacceleration, Snowflake is the more compelling story right now.
Meet America's Newest $1b Unicorn (Sponsor) A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here's why there's so much interest: EnergyX's patented tech can recover up to 3X more lithium than traditional methods. That's a big deal, as demand for lithium is expected to 5X current production levels by 2040. Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
The agency assigned a Prescription Drug User Fee Act target action date of May 13, 2027, with the filing supported by positive Phase 3 SUCCESSOR-2 trial results.
• Bristol-Myers Squibb stock is building positive momentum. Why are BMY shares climbing?
FDA Accepts Mezigdomide ApplicationMezigdomide is an oral cereblon E3 ligase modulator (CELMoD), being developed to treat multiple myeloma.
The NDA seeks approval of the combination regimen, known as MeziKd, for patients with relapsed or refractory disease.
He noted Bristol Myers Squibb now has two separate agents under FDA review for relapsed or refractory multiple myeloma, adding that the company continues to advance its CELMoD pipeline across blood cancers and solid tumors.
Phase 3 SUCCESSOR-2 Trial ResultsThe NDA is based on data from the Phase 3 SUCCESSOR-2 study, which evaluated MeziKd against the standard regimen of carfilzomib and dexamethasone (Kd).
According to the company, the combination delivered a clinically meaningful and statistically significant improvement in progression-free survival.
Median progression-free survival reached 18.0 months compared with 8.3 months for the control arm, translating to a 52% reduction in the risk of disease progression or death (HR: 0.48).
The benefit was observed in patients with relapsed or refractory multiple myeloma, including those receiving treatment after a prior anti-CD38 monoclonal antibody and lenalidomide.
Safety Profile and Next StepsBristol Myers Squibb said the safety profile of MeziKd was consistent with findings from previous mezigdomide studies and aligned with the known safety profiles of the individual medicines included in the regimen.
The company also acknowledged the patients and investigators who participated in the Phase 3 SUCCESSOR-2 trial.
BMY Stock Price Activity: Bristol-Myers Squibb shares were up 2.29% at $58.90 at the time of publication on Monday, according to Benzinga Pro data.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Samsung is one of the most important memory manufacturers in the world, as evidenced by its market share in the dynamic random-access memory (DRAM) and NAND flash storage markets.
Counterpoint Research notes that Samsung dominates both these memory niches. It is the top vendor of NAND flash memory, with a market share of 29%, and enjoys a similar position in the global DRAM market, with a 38% share. This massive dominance translated into a phenomenal 19x year-over-year increase in Samsung's second-quarter operating profit when it released its preliminary report last week.
However, Samsung stock has dropped 20% since releasing its preliminary report on July 7. What's more, Samsung's pullback has also created concerns about the prospects of high-flying chipmaker Micron Technology (MU 5.33%). Let's see why that has been the case.
Image source: Micron Technology.
Samsung's results indicate that investors are expecting bigger beats from memory manufacturers Though Samsung's sales more than doubled year over year and its operating profit was higher than analysts' expectations, it looks like the market was expecting a bigger jump. Additionally, analysts are expecting a gradual slowdown in memory price growth. According to Citi Research, the price of DRAM and NAND flash jumped by 44% and 53%, respectively, on a sequential basis in Q2.
For comparison, the sequential price growth was much stronger in Q1, with DRAM average selling price (ASP) rising in the mid-60% range and NAND flash ASP increasing in the mid-70% range, according to SK Hynix. This slower increase in memory prices last quarter is the reason why Samsung's earnings beat wasn't bigger, and that's bad news for Micron investors.
Micron stock has slipped 19% from the 52-week high it reached last month. Even record results for the third quarter of fiscal 2026 (which ended May 28), which Micron released on June 24, haven't been enough to arrest the stock's slide. What's worth noting is that Micron's earnings jumped by a whopping 13x year over year in the previous quarter to $25.11 per share.
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Its guidance of $31.00 in earnings per share for the current quarter points to a potential year-over-year jump of more than 10x. That would represent a smaller increase from the earnings growth Micron reported last quarter, but it is still phenomenal. Clearly, Micron's performance is solid enough to warrant further upside in its stock price. However, that hasn't been the case recently, which is why investors may be wondering whether they should start booking profits.
Micron's phenomenal growth warrants a higher valuation There is no harm in expecting a bigger earnings beat from memory makers like Micron, especially considering the favorable demand-supply dynamics in this market. After all, memory has proved to be a key bottleneck in AI infrastructure, which is why the demand for these chips is predicted to significantly exceed supply until 2030.
However, the market isn't rewarding Micron with a valuation that reflects its exponential earnings growth and terrific potential. It trades at just 22 times earnings, lower than the S&P 500 index's earnings multiple of 25.4. However, Micron's earnings are growing significantly faster than the S&P 500's.
Specifically, S&P 500 companies are expected to deliver average earnings growth of 24% this year and 18% next year. Micron's earnings, meanwhile, are forecasted to grow at a significantly stronger pace.
Data by YCharts
So, Micron needs to be rewarded with a higher earnings multiple, ideally paving the way for further upside in this AI stock. That's why it would be a good idea to continue holding Micron shares, or even buy more, given that it has become a more attractive investment following the recent pullback.
Remember when spending billions on chip fabs and AI data centers was the hottest thing in tech? That was last week. By Monday morning, investors had moved on to companies that make money without building small cities full of servers.
The tech-heavy Nasdaq Composite (^IXIC 1.42%) index fell 0.7% by 11:16 a.m. ET, while the broader S&P 500 (^GSPC 0.74%) and Dow Jones Industrial Average (^DJI 0.31%) held their losses to 0.3% and 0.2%, respectively.
^DJI data by YCharts
Two themes dominated this morning's headlines. Chip stocks extended losses following a historic collapse in Korean markets, while President Trump proposed charging a 20% toll on ships passing through the Strait of Hormuz.
Circuit breakers in Seoul and renewed Hormuz blockage The semiconductor sell-off began overnight in Seoul, where SK Hynix plunged 15% in its worst day on record. The broader KOSPI index fell 5.5%, triggering circuit breakers for the 35th time this year. That's more than the 26 times Korean markets halted trading during the entire 2008 financial crisis.
U.S.-listed shares of SK Hynix (SKHY 6.72%) fell 8.4%, dropping below Friday's $149 IPO price. American memory chip rival Micron Technology (MU 5.33%) fell 4.3%, connecting the Korean crash to U.S. indexes. Most semiconductor stocks are down and only a handful of software names are trending up. As a result, 17 of the 20 largest Nasdaq Composite moves are printed in red ink right now.
Image source: Getty Images.
Apple (AAPL +0.50%) gained 0.9%, one of the few mega-caps providing bullish support, but its $44 billion in additional market cap couldn't offset larger cap losses from Micron, Nvidia, and Space Exploration Technologies.
In the Iranian conflict, the ceasefire has collapsed and negotiations have stalled. Both sides are claiming full control of the Strait of Hormuz, shipping traffic through this critical area is essentially zero, and oil prices are up more than 3% today. Energy stocks are up, data center construction plays are fizzling today, and the Dow is quite balanced. I see 15 upticks and 15 downticks among its 30 hand-picked components.
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Earnings season arrives at an awkward moment The semiconductor sell-off leads up to the start of third-quarter earnings season. Major banks including JPMorgan Chase (JPM 0.59%), Bank of America (BAC 0.60%), and Goldman Sachs will report their second-quarter results this week. Netflix (NFLX +1.44%), Johnson & Johnson (JNJ +0.38%), and UnitedHealth Group (UNH +1.06%) are also prepping their financial statements. Tech giants will follow over the next couple of weeks.
The timing is either perfect or terrible, depending on your perspective. If chip companies report strong results and optimistic guidance, the ongoing downturn could reverse quickly. If they disappoint or sound cautious about future spending, things will get uglier.
For now, investors seem content to wait for actual data. This volatile moment doesn't look like a good time to bet on billion-dollar data center spending that hasn't proven its economic value yet.
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Anders Bylund has positions in Micron Technology, Netflix, Nvidia, and UnitedHealth Group. The Motley Fool has positions in and recommends Apple, JPMorgan Chase, Micron Technology, Netflix, and Nvidia. The Motley Fool recommends Johnson & Johnson and UnitedHealth Group. The Motley Fool has a disclosure policy.
SummaryMicron Technology, Inc. was my best investment of 2025 and generated nearly 1,400% return since April 2025 when I rated it a Strong Buy.MU has been one of my key holdings ever since. And I've been adding regularly.Now, the stock price has just dropped ~20% from its ATH. And it left investors wondering whether it's a time to sell or buy even more.I think it's the latter. MU has just shared some game-changing news and financials that in my eyes, will keep the ride going.At the same time, MU's low P/E multiple shows how fast the business is growing and that it can still generate strong returns for investors. JHVEPhoto/iStock Editorial via Getty Images
I made my largest investment in Micron Technology, Inc. (MU) in April 2025, when I published my best-returning MU article. I rated it a Strong Buy.
Since then, I've been happy to see MU skyrocket
5.19K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MU, NVDA, AMD, MRVL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
South Korea's stock market has climbed around 80% this year to a series of record highs, but the rally has created an unusual investment backdrop as valuations
The South Korean memory-chip powerhouse SK Hynix (SKHY 6.72%) made a splashy arrival on American markets last Friday, raising $26.5 billion in a Nasdaq share offering that ranks among the largest of all time.
The company sold 177.9 million American depositary receipts -- a way for U.S. investors to own a foreign stock in dollars, with every 10 receipts representing one Seoul-listed share -- at $149 apiece. Demand was ferocious; orders reportedly ran to roughly seven times the shares on offer, and early indications pointed to the stock opening about 17% above its offering price.
So is it too late to get in or is this still a good opportunity for investors? Let's have a look.
Image source: Getty Images.
A record-breaking debut For a company that most American investors have never traded directly, this is a remarkable entrance. The deal stands as the biggest first-time U.S. listing ever by a foreign company, eclipsing Alibaba's landmark 2014 debut, and it trails only a small handful of the largest share sales in history, including last month's blockbuster listing from Space Exploration Technologies, known as SpaceX.
What I find more interesting than the raw size, though, is what it signals. SK Hynix has effectively reopened an Asia-to-Wall-Street pipeline that had gone quiet for years. Tokyo-based memory maker Kioxia Holdings is reportedly lining up its own U.S. receipts, and bankers expect more Asian technology names to weigh the same move. American listings tend to command richer valuations -- Taiwan Semiconductor Manufacturing trades at a notable premium to its Taiwan shares -- and that gap is a powerful lure.
Why SK Hynix matters to the AI trade The reason this listing is a must-watch comes down to one product: high-bandwidth memory, or HBM. Think of an AI accelerator like a chef in a busy kitchen. It doesn't want to run to the pantry for every ingredient; it wants the most-used items stacked right next to the stove. HBM is that countertop. It is specialized memory placed alongside the processor, so data moves almost instantly, which helps keep power-hungry AI models from stalling.
SK Hynix is the leader in making it, controlling more than half the HBM market by its own account, and it's a crucial supplier to Nvidia. Only two other companies compete at the top tier, Samsung Electronics and Micron Technology, and all three count Nvidia as a customer. That tight, three-player structure is part of why memory has been one of 2026's hottest corners of the chip world.
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The awkward timing: a memory bear market Here's the twist that makes this debut so intriguing. Just days before SK Hynix rang the opening bell, memory stocks tumbled into a bear market. Micron, Samsung, and SK Hynix's own Seoul-listed shares all fell from their recent highs, and roughly $1.5 trillion in chip-sector value evaporated in a couple of weeks. The strange part is that the sell-off arrived the same week Samsung reported one of its best quarters ever, a reminder that in deeply cyclical industries, investors often sell on great news because they're already looking ahead to the next slowdown.
The counterpoint is that this looks more like a healthy reset within a longer memory up cycle than the start of a real downturn. The HBM shortage that's squeezing everyone from data center builders to game console makers is expected to persist into 2027, keeping the fundamental story intact even as stocks wobble.
The takeaway for investors SK Hynix's arrival hands U.S. investors direct access to the clear leader in AI memory, and that's a genuinely useful addition to the market. But access is not the same as a green light. Memory is a boom-and-bust business, and this stock's Seoul-listed shares have already soared several hundred percent over the past year -- the kind of run that leaves little cushion if sentiment sours.
The bear market that greeted the listing is a live example of how quickly this group can turn. My honest suggestion is to watch how the new shares actually trade for a while (similar to the guidance on SpaceX's IPO), understand that you're buying into a cyclical industry near a euphoric moment, and let the business results, not the debut-day headlines, guide any decision.
A record-setting IPO is exciting, but excitement has never been a substitute for doing the homework.
Two Nvidia Suppliers, One AI OpportunityBoth companies are key suppliers of high-bandwidth memory (HBM), the specialized chips powering Nvidia Corp.‘s (NASDAQ:NVDA) latest AI accelerators.
Both are benefiting from soaring demand for AI servers. Both have become trillion-dollar companies. And both are investing aggressively to expand production as hyperscalers race to build more AI infrastructure.
The question for investors is no longer whether AI memory is a compelling theme. It’s which stock offers the better way to play it.
How the Valuations CompareAt first glance, the two companies look more evenly matched than many investors might expect.
Source: Benzinga Pro data
*P/E figures for SKHynix calculated using publicly available EPS and market data, as Benzinga Pro does not currently display these metrics for this comparison.
The comparison shows just how closely the market is valuing the two AI memory leaders. Micron trades at a slightly lower trailing earnings multiple and price-to-sales ratio, while SK Hynix carries the lower EV-to-EBITDA multiple.
Where Micron Has the EdgeMicron remains one of Wall Street’s strongest AI momentum stories.
Its Value score of 27.85, however, suggests investors are already paying a premium for that growth story.
What SK Hynix Brings to the TableSK Hynix arrives on Nasdaq with a different advantage.
The company is widely viewed as the global leader in high-bandwidth memory and has established itself as one of Nvidia’s most important HBM suppliers. Its U.S. listing gives American investors direct access to that business without buying shares on the Korea Exchange.
While Benzinga Edge rankings are not yet available following the company’s U.S. listing, its valuation metrics suggest investors are assigning a premium comparable to Micron’s rather than treating it as a discounted alternative.
The AI Memory Trade Just Got More CompetitiveSK Hynix’s Nasdaq debut isn’t just another semiconductor IPO. It expands the investment universe for one of AI’s fastest-growing markets.
Micron still offers the familiarity of an established U.S.-listed AI winner with strong momentum and a forward earnings multiple of roughly 6.3x.
SK Hynix, meanwhile, gives investors exposure to one of the industry’s dominant HBM manufacturers at valuation levels that are remarkably similar to Micron’s.
For investors, that may be the biggest takeaway. The AI memory trade is no longer a one-stock story. It has become a two-stock debate, with Wall Street now weighing whether execution, valuation or market leadership will matter most as AI spending enters its next phase.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
Two chip names are absorbing the capex dollars that hyperscalers are hemorrhaging: NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Micron Technology (NASDAQ:MU). Which one better fits a retirement-focused portfolio right now?
Bank of America projects that NVIDIA, Micron, Broadcom, and Applied Materials will generate a record $430 billion in combined free cash flow over the next 12 months, more than triple what they produced two years ago. Meanwhile the combined FCF of Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Meta (Nasdaq: META), Microsoft (NASDAQ:MSFT), and Oracle (Nasdaq: ORCL) is projected to turn negative for the first time on record, reversing a +$260 billion peak in 2024. The cash is moving. The question is which chipmaker deserves the retirement dollar.
Growth Trajectory: Micron Has the Hotter Hand Micron’s most recent quarter shattered every expectation. Revenue hit $41.46 billion versus a $35.25 billion estimate, and diluted EPS of $25.11 crushed the $20.28 consensus. Revenue rose 345.7% year over year off a $9.30 billion base. Guidance for the next quarter calls for $50 billion, +/- $1 billion, in revenue and roughly 86% gross margin.
NVIDIA is still growing at scale most companies would envy. Q1 FY27 revenue hit $81.61 billion, up 85.2% year over year, and diluted EPS of $1.87 versus a $1.77 estimate. Impressive, but the growth rate is decelerating while Micron’s is exploding.
Valuation: Micron Looks Cheaper NVIDIA trades at a trailing P/E of 32 and a forward P/E of 24, with a PEG of 0.649. Rich for a $5 trillion market cap company, though defensible given the growth.
Micron is priced like the market does not believe the earnings will last. Trailing P/E is 22, and the forward multiple sits at just 6x with a PEG of 0.144. Analyst target price of $1,486 versus a recent $979 quote implies significant upside. On paper, this is the cheaper stock by a wide margin.
Strength and Risk: NVIDIA Wins by a Landslide This is where a retirement portfolio lives or dies. As of early 2026, NVIDIA runs a 71.07% gross margin, 60.38% operating margin, and 101.5% return on equity, with interest coverage of 503x and a debt/equity ratio of 0.073. The company’s CUDA platform software stack is a genuine moat. Jensen Huang described the setup plainly: “AI is growing faster and will be larger than any platform shifts before, including the Internet, mobile, and cloud.”
Micron’s latest gross margin is extraordinary by memory-industry standards, with fiscal Q3 gross margin above an impressive 84% and fiscal Q4 guidance near 86%. Those are elite numbers, but they are also peak-cycle numbers in a historically brutal commodity business. Memory pricing does not move in a straight line forever. The 683.4% one-year return is thrilling and terrifying in equal measure. NVIDIA’s 24.43% one-year gain looks pedestrian by comparison, but the underlying business is less cyclical and supported by a deeper software moat.
The Verdict For a retirement-focused investor, NVIDIA wins. The combination of a software moat, structurally elite margins, a fortress balance sheet, and an $80 billion buyback authorization makes it the more appropriate holding for capital that cannot afford a memory downcycle. NVIDIA is the compounder. (Investors mapping the broader AI supply chain can review our AI Power Seven report for the picks-and-shovels names positioned alongside it.)
Micron wins for a different investor: someone in accumulation mode, comfortable with cyclicality, and willing to trade volatility for one of the cheapest forward multiples in large-cap tech. If HBM4 demand holds through 2027 as Sanjay Mehrotra guided, Micron could re-rate sharply higher. If hyperscaler CapEx blinks, Micron falls first and hardest. That is a growth trade, not a retirement anchor.
NVIDIA fits the retirement account profile. Micron suits investors who can stomach the ride.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Micron (MU - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this chipmaker is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Micron is 15%, investors should actually focus on the projected growth. The company's EPS is expected to grow 791% this year, crushing the industry average, which calls for EPS growth of 57.1%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Micron is 101.9%, which is higher than many of its peers. In fact, the rate compares to the industry average of 23.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 14.7% over the past 3-5 years versus the industry average of 10.2%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Micron have been revising upward. The Zacks Consensus Estimate for the current year has surged 23.1% over the past month.
Bottom LineMicron has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Micron well for outperformance, so growth investors may want to bet on it.
Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in these class actions at (215) 638-4847 or by email to [email protected].
BitGo Holdings, Inc. (NYSE: BTGO)
Class Period: January 22, 2026 – May 13, 2026
Lead Plaintiff Deadline: August 7, 2026
The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants understated the scope and severity of the risk that declining digital asset prices posed to Company’s business and financial performance; (2) consequently, Defendants’ statements regarding, inter alia, BitGo’s financial performance and business prospects as a public company lacked a reasonable basis; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Via Transportation, Inc. (NYSE: VIA)
Class Period: September 2025 IPO
Lead Plaintiff Deadline: August 10, 2026
The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s ARR per customer was declining and that existing regulatory issues would hinder its “land and expand” strategy in Germany; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Zillow Group, Inc. (NASDAQ: Z, ZG)
Class Period: February 11, 2025 – May 7, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) Zillow’s agreement with Redfin was not a “partnership,” but rather an acquisition of Redfin’s business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
ADMA Biologics, Inc. (NASDAQ: ADMA)
Class Period: August 9, 2024 – March 25, 2026
Lead Plaintiff Deadline: August 10, 2026
The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) ADMA engaged in an undisclosed related party transaction; (2) ADMA used channel stuffing to create an appearance of revenue; (3) ADMA lacked adequate internal controls; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847 [email protected]
www.howardsmithlaw.com
New York, New York--(Newsfile Corp. - July 13, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of Class A or Class C common stock of Zillow Group, Inc. (NASDAQ: ZG) (NASDAQ: Z) between February 11, 2025 and May 7, 2026, both dates inclusive (the "Class Period"), of the important August 10, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.
SO WHAT: If you purchased Zillow common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 10, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304975
Source: The Rosen Law Firm PA
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Taiwan Semiconductor Manufacturing (TSM) posted stronger than expected Q2 revenue as surging demand for advanced AI chips kept its growth engine running.Revenue
Taiwan Semiconductor (TSM) is experiencing a decline in its stock price despite reporting impressive June revenue of NT$442.68 billion. This figure marks a 6.2%
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Eli Lilly (NYSE:LLY | LLY Price Prediction) has whipsawed shareholders in 2026, but the setup heading into the second half looks compelling. Our 24/7 Wall St. price target for Eli Lilly is $1,336.12, implying 12.41% upside from the current $1,188.58 quote. We rate the stock a buy with high confidence, driven by the incretin franchise, a raised 2026 outlook, and the Foundayo launch.
24/7 Wall St. Price Target Summary Metric Value Current Price $1,188.58 24/7 Wall St. Price Target $1,336.12 Upside 12.41% Recommendation BUY Confidence Level 90% The Q1 Blowout That Reset the Story Lilly closed at $1,188.58 on July 10, off 2.09% for the week but up 10.97% year to date and 51.38% over the last year. Shares sit roughly 1% below the $1,249.45 52-week high and well above the $619.40 low.
Q1 2026 was the reset. Revenue landed at $19.80 billion, growing 55.5% year over year and beating consensus by 11.25%. Non-GAAP EPS of $8.55 cleared estimates by 25.88%. Mounjaro more than doubled to $8.66 billion, Zepbound grew 80%, and management raised full-year revenue guidance to $82.0 to $85.0 billion with EPS of $35.50 to $37.
Why Bulls See a Breakout Toward $1,395 The bull case rests on Foundayo. Orforglipron is the only approved GLP-1 pill that can be taken any time of day without food or water restrictions, and it delivered superior blood sugar and weight loss versus oral semaglutide in a head-to-head Phase 3 trial published in The Lancet.
Pair that with retatrutide’s Phase 3 win, Taltz plus Zepbound in psoriasis, and four bolt-on acquisitions announced in Q1, and the pipeline looks stacked. Our bull scenario models a $1,395.55 price a year out, a 17.41% return.
The Risks Worth Watching Prices are the pressure point. Realized prices fell 13% in Q1 as rebates, cash-pay cuts on Zepbound, and China’s NRDL listing for Mounjaro reset the curve. Q1 also absorbed $584 million in acquired IPR&D charges and $279 million in litigation-related items. Insider activity has skewed toward selling, and composite prediction sentiment sits at 38.89, tilted bearish.
Lilly is investing aggressively behind those charges, with new manufacturing sites and four acquisitions targeting cell therapy, sleep-wake disorders, in vivo CAR-T, and myelofibrosis. Our bear scenario points to $1,102.52, a 7.24% drawdown.
How Lilly Compares to Novo Nordisk and Merck Novo Nordisk (NYSE:NVO) is the natural GLP-1 comp. Novo trades at a forward P/E of just 15, versus Lilly’s 33, but Novo’s revenue grew only 24% last quarter against Lilly’s 55.5%. That growth gap explains why the market underwrites Lilly’s premium.
Merck (NYSE:MRK) offers a large-cap pharma counterpoint. Merck trades at a forward P/E near 24 with quarterly revenue growth of just 4.9% and earnings that contracted year over year. Lilly’s growth rate is roughly ten times Merck’s, making the higher multiple defensible. Against this peer set, our $1,336.12 target looks reasonable.
Eli Lilly Price Prediction 2026-2030 The 24/7 Wall St. price target of $1,336.12 and buy rating carry 90% confidence. Growth acceleration tips the scale. The bull path hinges on Foundayo scripts ramping as expected and 2026 EPS landing at the high end of the raised $35.50 to $37 range. The setup weakens if realized price declines widen beyond the current 13% drag or a pharma tariff surprise reprices the sector.
Extending our model out, here is where our projects Lilly could trade, assuming Foundayo scales and incretin growth normalizes into the high teens.
Year 24/7 Wall St. Price Target 2026 $1,336 2027 $1,455 2028 $1,570 2029 $1,675 2030 $1,778 These projections assume Lilly continues executing on the incretin buildout and pipeline diversification. Meaningful upside or downside could come from oral GLP-1 penetration, tariff outcomes, or biosimilar timing.
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 Union Pacific (UNP - 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. Union Pacific currently has a Zacks Rank of #2 (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? In order to see if UNP is a promising momentum pick, let's examine some Momentum Style elements to see if this railroad holds up.
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's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For UNP, shares are up 1.67% over the past week while the Zacks Transportation - Rail industry is up 2% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.23% compares favorably with the industry's 4.32% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Union Pacific have risen 14.26%, and are up 22.06% in the last year. In comparison, the S&P 500 has only moved 11.35% and 21.86%, respectively.
Investors should also take note of UNP'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 UNP is averaging 2,391,458 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with UNP.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost UNP's consensus estimate, increasing from $12.54 to $12.56 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that UNP is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Union Pacific on your short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Toronto, Royal Bank (RY - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 23.81%. Currently paying a dividend of $1.18 per share, the company has a dividend yield of 2.24%. In comparison, the Banks - Foreign industry's yield is 2.8%, while the S&P 500's yield is 1.35%.
Looking at dividend growth, the company's current annualized dividend of $4.72 is up 9.9% from last year. Over the last 5 years, Royal Bank has increased its dividend 5 times on a year-over-year basis for an average annual increase of 5.79%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Royal Bank's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.
RY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $11.45 per share, representing a year-over-year earnings growth rate of 11.17%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, RY is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
At current prices: JPMorgan Chase (NYSE:JPM | JPM Price Prediction) at $336.47 looks fully valued, Morgan Stanley (NYSE:MS) at $222.28 appears stretched, and Bank of America (NYSE:BAC) at $59.67 screens as the most attractive on valuation. Big-bank earnings power has expanded meaningfully into 2026, but the three sit at very different points on the risk-reward curve.
All three posted strong Q1 2026 results. JPMorgan grew EPS 17% year over year to $5.94, Morgan Stanley delivered record revenue of $20.58B with 27.1% ROTCE, and Bank of America grew EPS 25% to $1.11.
What separates them is valuation, analyst positioning, and how much good news is already priced in.
JPMorgan: Priced For Its Own Perfection The bull case is clean. JPMorgan compounds book value while returning $12.2 billion in quarterly capital, Markets revenue hit a record $11.60B, and IB fees rose 28% as advisory activity re-accelerated. At a trailing P/E of 16 and forward P/E of 15, the multiple is reasonable for a bank earning 16.5% ROE.
The bear case: the stock has done the work already. Shares are up 18.97% over one year and sit near the 52-week high of $341.91. Consensus analyst target is $352.76, implying modest upside, and ratings skew cautious: 4 Strong Buy, 8 Buy, and 12 Hold.
At $336.47, JPMorgan screens as fully valued in our research view. The franchise is best-in-class, but with YTD gains of 5.89% and the target barely above spot, risk-reward looks symmetric. Existing holders may collect the 1.76% yield while monitoring for a pullback.
Morgan Stanley: Great Business, Stretched Stock Morgan Stanley is executing beautifully. Wealth Management client assets reached $7.34T, equity trading grew 25%, and advisory revenue jumped 74%. EPS has beaten estimates in all five most recent quarters.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and JPMorgan Chase didn't make the cut. Grab the names FREE today.
The problem: the market has priced all of it. Shares are up 26.55% YTD and 59.08% over one year, outrunning the broader market. Consensus analyst target of $216.48 now sits below current price, and ratings carry 1 Sell and 1 Strong Sell, unusual for a mega-cap bank. At a P/E of 20 and price-to-book of 3.4, Morgan Stanley is the most expensive of the three.
At $222.28, Morgan Stanley looks stretched in our research view. When analyst consensus prints a lower target than spot, when P/B pushes above 3x for a bank, and when a single soft Wealth quarter could reset the multiple, the setup argues for caution. A re-entry point closer to $190 looks more compelling on the numbers.
Bank of America: The Cheapest Compounding Story Bank of America is the mirror image of Morgan Stanley. NII grew 9% to $15.74B, deposits notched an 11th straight quarter of growth, card charge-offs improved to 3.64%, and management guided FY2026 NII growth of 5% to 7%. The stock trades at a forward P/E of 13 and price-to-book of just 1.536.
Shares are up 10.47% YTD and 30.76% over one year, yet still leave room to run. Consensus target of $65.79 implies further upside, and ratings are the most bullish of the group: 6 Strong Buy, 15 Buy, 3 Hold, zero Sells. Goldman’s outlook backs the setup, noting “the US banking sector remains sound” with benign asset quality trends heading into 2026.
At $59.67, Bank of America screens as the most attractive of the three on valuation. It offers double-digit implied upside, the widest analyst support, an improving efficiency ratio of 61%, and a 1.86% dividend while investors wait. The main risk is a sharp rate cut, where 100bps would reduce NII by $2.0B, and it is a well-telegraphed sensitivity. Cheapest bank, best setup on the numbers.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and JPMorgan Chase didn't make the cut. Grab the names FREE today.
Why: Rosen Law Firm, a global investor rights law firm, announces a class action lawsuit on behalf of purchasers of securities of Intuit Inc. (NASDAQ: INTU) between August 22, 2025 and May 20, 2026, inclusive (the "Class Period"). A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than September 8, 2026.
So What: If you purchased Intuit securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
What to do next: To join the Intuit class action, go to https://rosenlegal.com/cases/intuit-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than September 8, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Details of the case: According to the lawsuit, throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose that: (1) they had overstated Intuit's competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (2) in reality, Intuit was losing significant business in its tax-related business, particularly in its Turbo Tax business, as a result of, inter alia, increasing competitive and pricing pressures; (3) accordingly, Intuit's previously issued full year ("FY") 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (4) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Intuit class action, go to https://rosenlegal.com/cases/intuit-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827 [email protected]
www.rosenlegal.com
A securities fraud class action lawsuit has been filed on behalf of Intuit investors after its stock plummeted over 20% because Intuit allegedly misled investors regarding TurboTax’s purported competitive advantages and growth prospects.
NEW YORK--(BUSINESS WIRE)--Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Intuit Inc. (NASDAQ:INTU) and certain of the company’s senior executives for securities fraud after significant stock drops resulting from potential violations of the federal securities laws.
A securities fraud class action lawsuit has been filed on behalf of Intuit investors after its stock plummeted over 20% because Intuit allegedly misled investors regarding TurboTax’s purported competitive advantages and growth prospects.
Share If you invested in Intuit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
Key Details of the Intuit ($INTU) Class Action:
Lead Plaintiff Deadline: September 8, 2026 Class Action Allegations: Securities fraud alleging that Intuit misled investors regarding TurboTax’s purported competitive advantages and growth prospects Largest Alleged Stock Drop: May 21, 2026 – 20.02% Stock Drop Court: U.S. District Court for the Northern District of California Action: Contact BFA Law to discuss your rights Investors have until September 8, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Intuit securities. The class action is pending in the U.S. District Court for the Northern District of California. It is captioned Baldwin v. Intuit Inc., et al., No. 26-cv-7086.
Why is Intuit Being Sued for Securities Fraud?
Intuit is a financial technology platform that serves consumers, small and mid-market businesses, and accountants through its offerings, which include TurboTax, Credit Karma, and QuickBooks.
During the relevant period, Intuit told investors it had significant “momentum” across its business segments, including TurboTax. Intuit attributed its “momentum” to purportedly significant competitive advantages, including integration of AI in its business and operations. Intuit also told investors that the 2026 tax season was “off to a strong start” as the company was poised to deliver the “best price for our customers.”
In truth, as alleged, the company was facing pressure among the most price-sensitive DIY tax filers and was not competitive on price in this segment.
Why did Intuit’s Stock Drop?
On May 20, 2026, before market hours, Reuters published an article titled “Intuit to cut 17% of global jobs to streamline operations, memo shows.” Reuters reported that Intuit was “laying off about 17% of its workforce” and was “winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams[.]” This news caused the price of Intuit stock to decline $15.78 per share, or 3.95%, from a closing price of $399.71 per share on May 19, 2026, to $383.93 per share on May 20, 2026.
Also on May 20, 2026, after market hours, Intuit released its fiscal Q3 2026 financial results, which included its 2026 tax season revenue. Intuit stated that it “did not have the overall tax season we expected” and that it “faced pressure among the most price-sensitive DIY filers.” Intuit stated that “[w]e [lost] on price.” Intuit also announced that TurboTax online paying units were expected to grow by only 2% as total IRS filers were expected to decline by approx. 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.” This news caused the price of Intuit stock to decline $76.86 per share, or 20.02%, from a closing price of $383.93 per share on May 20, 2026, to $307.07 per share on May 21, 2026.
Click here for more information: https://www.bfalaw.com/cases/intuit-class-action-lawsuit.
What Can You Do?
If you invested in Intuit, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
Broadcom (AVGO) disclosed insider stock sales totaling about $10.2 million, with two executives reducing their holdings through transactions reported in U.S. Se
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Allentown, Air Products and Chemicals (APD - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 21.26%. The seller of gases for industrial, medical and other uses is paying out a dividend of $1.81 per share at the moment, with a dividend yield of 2.42% compared to the Chemical - Diversified industry's yield of 1.66% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $7.24 is up 1.7% from last year. Over the last 5 years, Air Products and Chemicals has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Air Products and Chemicals's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for APD for this fiscal year. The Zacks Consensus Estimate for 2026 is $13.23 per share, representing a year-over-year earnings growth rate of 9.98%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, APD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Stag Industrial (STAG - Free Report) is headquartered in Boston, and is in the Finance sector. The stock has seen a price change of 6.04% since the start of the year. The industrial real estate investment trust is currently shelling out a dividend of $0.39 per share, with a dividend yield of 3.98%. This compares to the REIT and Equity Trust - Other industry's yield of 3.95% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $1.55 is up 4% from last year. Over the last 5 years, Stag Industrial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 0.70%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Stag's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, STAG expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.64 per share, representing a year-over-year earnings growth rate of 3.53%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, STAG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Archer Daniels Midland (ADM - Free Report) . This company, which is in the Zacks Agriculture - Operations industry, shows potential for another earnings beat.
This agribusiness giant has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.20%.
For the most recent quarter, ADM was expected to post earnings of $0.66 per share, but it reported $0.71 per share instead, representing a surprise of 7.58%. For the previous quarter, the consensus estimate was $0.83 per share, while it actually produced $0.87 per share, a surprise of 4.82%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for ADM lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
ADM has an Earnings ESP of +12.50% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SummaryS&P Global is now a leaner, post-spin company focused on Ratings, Indices, Energy, and Market Intelligence.SPGI targets margin expansion, driven by higher-than-expected debt issuance and surging API call volumes linked to AI adoption.API usage is scaling non-linearly, signaling a structural shift to programmatic data consumption and potentially stickier, higher-growth revenues.I remain bullish on SPGI, raising my FY27 EPS estimate and setting a $500 price target, implying 15% upside.Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More » pichet_w/iStock via Getty Images
Introduction S&P Global (SPGI) completed the Mobility Global (MBGL) spin-off on July 1, and a few days later, the leaner SPGI published the pro forma FY25 results ex-Mobility.
We just analyzed Mobility Global and ended up stating that it is
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPGI, MBGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Strategy can sell Bitcoin to build reserves, fund payouts and repurchase shares or preferred securities.The framework may reduce poorly timed stock issuance and help protect Bitcoin per share in weak markets.Strategy remains expensive, below key moving averages and exposed to Bitcoin, dilution and cash obligations. Strategy Inc. (MSTR - Free Report) is changing how investors should view its Bitcoin treasury. Its new monetization program permits selective Bitcoin sales to support cash reserves, preferred dividends, interest payments and share repurchases. That marks a shift from its former image as a one-way Bitcoin buyer while giving management more tools to protect the balance sheet during difficult markets.
The stock has faced heavy pressure. MSTR closed at $94.64 on July 10 and had fallen roughly 37.7% so far in the year. MARA Holdings, Inc. (MARA - Free Report) and Riot Platforms, Inc. (RIOT - Free Report) have also been volatile. The moves confirm that MSTR, MARA and Riot trade as high-beta crypto plays, although their underlying business models and funding structures differ.
The central issue is whether limited Bitcoin sales can improve liquidity without damaging the long-term case. Strategy still treats Bitcoin as its main treasury asset, but investors must balance that exposure against preferred dividends, dilution and the risk of selling coins during weak markets.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Why the New Framework Matters for MSTRThe June 29 framework is broader than a simple Bitcoin sale plan. Strategy set a minimum USD reserve equal to 12 months of current expected annual preferred stock dividend payments and interest, raised STRC’s annual dividend rate to 12% and authorized up to $1 billion each for preferred-security and MSTR buybacks. It also approved Bitcoin sales to add as much as $1.25 billion to the cash reserve or fund payments and repurchases when management believes that is better than issuing common stock.
That flexibility is a positive for MSTR holders. Selling a limited number of coins could reduce the need to issue shares when MSTR trades near its Bitcoin net asset value, helping protect Bitcoin per share. Buybacks could also become useful when the stock trades below management’s estimate of intrinsic value.
In effect, Strategy is moving from constant capital raising to a two-way model that can issue securities in strong markets and retire them in weak ones. It may also improve investor trust by making the conditions for Bitcoin sales clearer, rather than leaving the market to guess when management might act.
The Bull Case for MSTR Still Depends on BitcoinStrategy’s scale remains its biggest advantage. It held about 845,000 Bitcoin as of early June 2026. The company has raised many billions of dollars through equity and preferred offerings since early 2026, underscoring strong market access.
Those strengths separate MSTR from MARA and Riot, whose results depend more directly on mining production, electricity costs and network difficulty. The new policy may also improve confidence in Strategy’s preferred securities. A larger cash buffer and the ability to monetize Bitcoin can support dividend payments through a downturn. If the framework stabilizes STRC and lowers future funding costs, Strategy could continue increasing Bitcoin per share without relying as heavily on common-stock issuance.
The Risks Have Not Disappeared for MSTRThe main risk is that monetization becomes recurring rather than occasional. Strategy’s expected annual preferred dividends and interest were about $1.76 billion when the framework was announced. If Bitcoin stays weak, cash obligations could force more sales at unattractive prices, reducing the reserve and limiting upside when Bitcoin rebounds.
Accounting results will remain highly volatile. Strategy posted a $14.5 billion operating loss and a $12.8 billion net loss in the first quarter, largely because Bitcoin’s fair value fell. MARA and Riot offer different crypto exposure through mining assets, so some investors may prefer them when Bitcoin rises. However, MSTR’s funding structure remains under pressure.
Strategy’s Rich Valuation Raises ConcernsFrom a valuation standpoint, Strategy remains highly expensive, trading at a forward 12-month price-to-sales ratio of 66.23, which is far above the sector's average. Its Value Score of F reinforces concerns that the stock is significantly overvalued.
Even peers trade at substantially lower multiples. MARA trades at 5.55X forward sales, Riot Platforms at 10.91X. This suggests that Strategy continues to command a steep premium despite operational and financial risks.
Price/Sales Ratio (F12M)
Image Source: Zacks Investment Research
MSTR Trades Below 50-Day and 200-Day SMAsStrategy shares are currently trading below both the 50-day and 200-day moving averages, indicating weak momentum and a bearish near-term trend.
Image Source: Zacks Investment Research
ConclusionStrategy’s Bitcoin monetization plan improves financial flexibility, but it does not remove the stock’s core risks. The company can now strengthen cash coverage, avoid some poorly timed equity issuance and repurchase securities when prices are attractive.
Still, MSTR remains tied to Bitcoin’s direction, while preferred obligations and possible coin sales could limit gains. Its scale and capital-market access remain strong. It is prudent for existing investors to hold MSTR while watching Bitcoin prices, reserve coverage, share issuance and the pace of future monetization before adding exposure.
At present, MSTR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
