Track market-moving stories before they get noisy

For years, Moderna, Inc‘s (NASDAQ:MRNA) biggest challenge wasn’t developing new medicines — it was convincing investors that it could thrive after COVID-19. The company’s vaccine transformed it into one of the world’s most recognizable biotech names, but as the pandemic demand faded, so did its revenue and stock price.

Now, a breakthrough in cancer treatment may finally give Moderna the second act investors have been waiting for.

COVID Turned Moderna Into a Biotech Powerhouse, Then Came the Hard PartRevenue climbed to nearly $19 billion in 2021 and $20 billion in 2022 from just about $800 million in 2020, in the wake of its COVID-19 vaccine, turning the once little-known biotech into one of the industry’s biggest success stories. Once the COVID-19 hype died down, revenue again stalled back to about $7 billion in 2023 and is being reported lower each year. In 2025, Moderna fell short of breaching $2 billion in annual revenue.

This drop left investors questioning whether the company could build another meaningful business beyond the COVID-19 vaccine. While the company continued investing billions of dollars across vaccines and therapeutics, Wall Street largely viewed it as a business searching for a successor to its pandemic blockbuster.

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The Cancer Breakthrough Changes the ConversationThat narrative shifted this week.

Moderna and Merck & Co Inc. (NYSE:MRK) announced that their personalized mRNA cancer vaccine met the primary endpoints in a Phase 3 melanoma trial, marking the first mRNA-based cancer treatment to demonstrate success in a Phase 3 trial. The treatment is designed by analyzing a patient’s tumor and creating a customized vaccine that helps the immune system recognize and attack remaining cancer cells after surgery.

More importantly for investors, the melanoma result is about more than one drug. It provides Moderna with its strongest clinical evidence yet that its mRNA platform could have applications beyond infectious diseases. The company is already studying the same personalized approach in other cancers, including lung, bladder and kidney, giving investors a glimpse of a much larger opportunity if the technology continues to deliver.

Investment TakeawayThe market’s reaction wasn’t simply a celebration of a promising melanoma treatment. It reflected a broader shift in how investors may begin to value Moderna. For the first time since the pandemic boom faded, the company has a compelling answer to the question that has defined its investment story: what comes next?

The Phase 3 success does not guarantee commercial success, and investors will still want to see detailed trial data and progress in other cancers. But if this breakthrough proves to be the first validation of a broader oncology platform, COVID-19 may be remembered as the chapter that made Moderna famous — while cancer becomes the one that defines its future.

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Iraq has a bold ambition for its oil industry. The country recently sent a delegation to Saudi Arabia seeking a higher production quota from OPEC, aiming to boost its output to between 8 million and 10 million barrels per day (bpd) within the next six years. That's more than double the 4 million bpd it produced before the war with Iran slowed oil flows through the Strait of Hormuz.

This move could have a major impact on Chevron (CVX -0.03%), which recently signed memorandums of understanding (MOUs) with the Iraqi government to enter two oil fields in the country. Here's a look at the leading role Chevron could play in Iraq's oil resurgence.

Image source: The Motley Fool.

Chevron could be crucial to Iraq's plansLast month, Chevron signed MOUs with Iraq regarding the West Qurna 2 and Nassiriya oilfields. The first potential deal would see it assume operational control of one of the world's largest oil fields. West Qurna 2 currently produces 460,000 bpd, accounting for nearly 10% of Iraq's output and 0.5% of global supply. Iraq nationalized the field earlier this year due to U.S. sanctions on its previous operator (Russia's Lukoil). The field holds an estimated 13 billion barrels of oil. Iraq has previously stated that it wants to boost production in this field to between 750,000 and 800,000 bpd after Chevron takes over operations.

Meanwhile, Chevron initially signed an agreement in principle with Iraq for the Nassiriya project in 2025, which includes four exploration blocks and the development of producing fields. Nassiriya is a much smaller field today, but it has significant long-term growth potential. Iraq is targeting an initial production capacity of 600,000 bpd for this project within seven years of starting work.

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While Iraq has several state-owned oil companies, including Basra Oil Company, which is temporarily operating West Qurna 2, it needs assistance from major global oil companies to provide the technical expertise and capital required to develop its fields to their full potential. In addition to Chevron, fellow oil giants TotalEnergies and BP have also recently signed new deals with Iraq. Meanwhile, ConocoPhillips bought an interest in BP Energy Company of Kirkuk to help support the ongoing redevelopment of four large-scale producing fields in the Kirkuk region of Northern Iraq. These deals provide major oil companies with the opportunity to invest in one of the world's largest oil-producing countries.

Lots of promise and riskWhile Iraq had been producing 4 million bpd before the U.S. and Israel launched military strikes against Iran, its output cratered after Iran retaliated by attacking ships trying to pass through the Strait of Hormuz. At one point, its production tumbled to only 1.4 million bpd.

That's leading Chevron to simultaneously evaluate bypass pipeline options. While Chevron and its partners considered rebuilding an old pipeline system damaged by previous wars, that option no longer appears plausible. As a result, they would likely need to build a new pipeline through Syria, which would cost at least $15 billion and likely take four years to build. Even if built, the new pipeline likely wouldn't have enough initial capacity to handle all of Iraq's production, especially at double its pre-war level. That would leave Chevron with meaningful exposure to potential future disruptions to the Strait of Hormuz.

A higher risk, high-reward moveChevron is working to secure commercial terms with Iraq that would give it control of one of the world's largest oil fields and another one with significant potential. It would add another major long-term growth driver for the oil giant. However, this move adds risk as Iraq currently relies almost entirely on the Strait of Hormuz to export its oil. Still, given Chevron's broad global production base, this seems worth the risk because it's such a rare opportunity to add two potentially world-class resources to its portfolio. It would enhance the long-term investment case that already makes Chevron one of the top oil stocks to buy.

Key Takeaways T-Mobile's service revenues rose 9% to $19.0B, while postpaid service revenues jumped 13% to $15.9B.More than 60% of customers on new accounts are choosing premium tiers, supporting ARPA growth.T-Mobile's focus on network quality and customer experience is helping drive acquisition and retention. T-Mobile, US, Inc. (TMUS - Free Report) is benefiting from sustained momentum in its service business. In the second quarter of 2026, total service revenues increased 9% year over year to $19 billion, while postpaid service revenues jumped 13% to $15.9 billion.

A major contributor is the continuous expansion of T-Mobile’s postpaid account base. Postpaid accounts reached 34.7 million in the second quarter, up from 31.5 million a year earlier. The acquisitions of UScellular and Metronet have also increased the number of customers. The company also reports that postpaid average revenue per account rose to $152.91, up 2% year over year. There are several factors driving the ARPA. Continued adoption of 5G broadband is raising customers per account. Its business vertical is benefiting from the growing demand for 5G Advanced networks and associated enterprise solutions.

Another positive factor is customer migration toward higher-value plans. Management said more than 60% of customers on new accounts are selecting premium rate-plan tiers. This is also supporting ARPA growth.

The company’s strong focus on improving network and customer experience remains an important driver for customer acquisition and retention. Its customer-centric approach is also evident from the company’s recent disaster response efforts. It has proactively deployed network resources, backup power and connectivity solutions to support its customers during harsh weather conditions. Such initiatives can strengthen customer trust and boost retention. These factors are driving the service revenue growth.

How Are Competitors Faring?The company faces competition from AT&T, Inc. (T - Free Report) and Verizon Communications, Inc. (VZ - Free Report) . In the second quarter of 2026, AT&T added more than 1 million Advanced Connectivity customers, including 646,000 Internet net adds and 432,000 postpaid phone net adds. Advanced home Internet revenues rose 27.3% year over year, and 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan. AT&T continues to invest in fiber and fixed wireless to expand advanced Internet reach and deepen household convergence with wireless.

Verizon continues to broaden its addressable market through fiber expansion and broadband growth, while strengthening convergence opportunities. In second-quarter 2026, Verizon added 348,000 broadband subscribers, including continued contributions from fixed wireless access and fiber, increasing total fixed wireless access and fiber broadband connections to approximately 17.1 million.

TMUS’ Price Performance, Valuation & EstimatesT-Mobile has declined 28% over the past year against the industry’s growth of 74.7%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 14.68, lower than the 37.54 for the industry.

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TMUS’ earnings estimates for 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

T-Mobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Globe Life (GL - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Globe Life due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Globe Life Inc. before we dive into how investors and analysts have reacted as of late.

Globe Life Q2 Earnings Miss Estimates on Escalating Expenses

Globe Life Inc. reported second-quarter 2026 net operating income of $3.61 per share, which missed the Zacks Consensus Estimate of $3.67 by 1.6%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income. The quarter benefited from higher premium revenues, stronger insurance underwriting income, and increased investment income. Higher premium revenues reflected continued strength across the company’s life and health insurance businesses.

GL Benefits From Premium Growth Across Insurance BusinessTotal premium revenues increased 7% year over year to $1.30 billion. Life insurance premiums rose 3% to $860.8 million, while health insurance premiums climbed 16% to $436.9 million, supported by strong growth at United American and Family Heritage. Operating revenues increased 8% year over year to $1.60 billion, driven by higher premium income, stronger net investment income and realized investment gains. The top line surpassed the Zacks Consensus Estimate by 0.6%.

Globe Life Posts Higher Underwriting and Investment IncomeInsurance underwriting income increased 5% year over year to $370.3 million. Life underwriting income rose 6% to $359.4 million, while health underwriting income edged up 1% to $99.3 million. Net investment income rose 4% year over year to $293.8 million. Excess investment income, a key profitability measure, rose 10% to $38.3 million as higher investment income more than offset increased required interest on policy liabilities.

Administrative expenses were up 6.2% year over year to $91.4 million.
Total benefits and expenses increased 6.5% year over year to $1.2 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, interest expense and other operating expense.

GL's Distribution Channels Deliver Mixed ResultsLife insurance premium growth was led by the American Income division, where premiums increased 5% year over year to $466.3 million. Liberty National premiums rose 3%, while Direct to Consumer premiums slipped 1%. Overall life net sales declined 3% to $149.6 million as weaker Direct to Consumer sales more than offset Liberty National's gains.

Health insurance continued to outperform. United American health premiums surged 29% year over year to $211.4 million, while Family Heritage premiums increased 9%. Total health net sales improved 2% to $70.4 million, supported by double-digit growth at United American despite softer performance at Liberty National and American Income.

Globe Life Strengthens Capital PositionBook value per share increased 18% year over year to $78.18. Excluding accumulated other comprehensive income (AOCI), book value per share rose 11% to $100.04. Net income return on equity was 18.4% for the first six months of 2026, down 40 basis points year over year. Net operating income return on equity, excluding AOCI, was 14.3%, down 10 basis points year over year. During the reported quarter, Globe Life repurchased 1.1 million shares for $175 million at an average price of $154.28 per share, continuing its shareholder return strategy.

GL Raises 2026 Earnings OutlookGlobe Life raised its full-year 2026 net operating income guidance to a range of $15.55-$15.95 per share, suggesting a 10-cent increase at the midpoint from its prior outlook.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

VGM ScoresCurrently, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Globe Life has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways TSMC raises 2026 CapEx to $60B-$64B, with most targeting advanced process technologies.TSMC plans an additional $100B Arizona investment spanning fabs and advanced packaging.TSMC expects its 2026 dividend to rise to TWD 24 per share, up 33% year over year. Taiwan Semiconductor Manufacturing Company (TSM - Free Report) , or TSMC, continues to see strong structural demand from customers, as the use of 5G, artificial intelligence (AI) and high-performance computing (HPC) rapidly expands. The emerging Agentic AI market adds further growth opportunities, prompting the company to continue investing to support its customers’ growth. Reflecting this, management raised the 2026 capital expenditure (CapEx) budget to $60 billion-64 billion from the April guidance of $52-56 billion.

TSMC plans to direct about 70%-80% of its 2026 capital spending toward advanced process technologies. Specialty technologies will receive about 10%, while advanced packaging, testing, mask-making and other areas will account for another 10%-20%.

The company is also expanding its presence in Arizona with an additional $100 billion investment. The plan includes several wafer fabs for 2-nanometer and below technologies as well as advanced packaging fabs. TSMC expects the investment to strengthen the U.S. semiconductor ecosystem and supply chain while supporting high-tech jobs. In Taiwan, the company plans to build 13 leading-edge and advanced packaging fabs over the next several years.

At the same time, the company is focused on steadily increasing its cash dividend on both an annual and quarterly basis. In 2025, TSMC paid New Taiwan Dollar (TWD) 467 billion in cash dividends, with shareholders receiving TWD 18 per share, up 28.6% year over year. In 2026, the dividend is expected to increase to TWD 24 per share, up another 33% year over year.

TSM’s Peer UpdatesGlobalFoundries (GFS - Free Report) spent $408 million on capital expenditures in the second quarter, net of proceeds from government grants, or roughly 23% of revenue. Management expects full-year CapEx to come in toward the higher end of its 15%-20% range, with investments in additional capacity expected to support growing demand. At the second quarter of 2026-end the company’s cash, cash equivalents and marketable securities totaled approximately $3.3 billion. On July 14, GlobalFoundries paid its first-ever quarterly cash dividend of $0.12 per share, reflecting confidence in its future cash-generating capacity.

Intel (INTC - Free Report) is raising its 2026 CapEx outlook on strong customer demand signals and now expects spending to exceed $20 billion, significantly above its initial expectations for the year. The company is also moving quickly to secure tool purchase orders from vendors, accelerate clean room build-outs and secure supplies of substrates and memory. The vast majority of 2027 capital spending is expected to go toward its U.S. network. Management stated that from 2021 through 2026, the company’s total spending on tools and space in the United States is approaching $100 billion, significantly more than any other semiconductor company over that period.

The Zacks Rundown for TSM StockOver the past 12 months, TSMC shares have rallied 78.5% compared with the industry’s 76.8% growth.

Image Source: Zacks Investment Research

TSM currently trades at a forward, five-year Price/Sales (P/S) of 10.90X compared with its historical median of 8.12X and the industry average of 10.81X.

Image Source: Zacks Investment Research

TSMC’s 2026 and 2027 earnings estimates have seen upward revisions over the past 90 days. 

Image Source: Zacks Investment Research

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

A month has gone by since the last earnings report for ServiceNow (NOW - Free Report) . Shares have added about 41.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ServiceNow due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

NOW Q2 Earnings Beat Estimates, Revenues Rise Y/YServiceNow reported second-quarter 2026 earnings of 90 cents per share, up 11.1% year over year. The figure beat the Zacks Consensus Estimate by 4.65%.

Revenues of $3.99 billion rose 24% year over year and surpassed the consensus mark by 1.65%. Results benefited from strong subscription demand, while current remaining performance obligations (cRPO) reached $13.20 billion.

NOW Gains From Broad Subscription MomentumSubscription revenues increased 24.5% year over year to $3.88 billion. At constant currency (cc), subscription revenues rose 23%, 150 basis points (bps) above the high end of management’s guidance.

Professional services and other revenues advanced 8.5% to $110 million.

ServiceNow attributed the subscription outperformance to stronger net new annual contract value (NNACV) and a higher on-premise revenue mix, primarily from U.S. federal demand that shifted some revenues from the third quarter into the second quarter.

ServiceNow Builds Backlog and Expands Large DealsIn the second quarter of 2026, cRPO, or contracted revenues expected to be recognized within 12 months, grew 21% year over year. At cc, the metric increased 21.5%, exceeding guidance by 200 bps. Total remaining performance obligations (RPO) rose 21% year over year to $29 billion, or 22% at cc.

NOW recorded 123 transactions exceeding $1 million in NNACV, up nearly 40% year over year. The company ended the quarter with 658 customers generating more than $5 million in annual contract value, an increase of roughly 23%.

NOW’s AI and Workflow Portfolio Gains TractionServiceNow AI annual contract value crossed $1 billion. Net new AI annual contract value grew more than 40% sequentially, while deals containing at least five ServiceNow AI products increased 5.5 times year over year. The number of customers with Agentic AI in production expanded ninefold over the past nine months.

Demand was broad across workflows. ITSM appeared in 15 of the top 20 deals, ITOM in 18 and security and risk solutions in 16. CRM and industry workflows were also included in 16 of the top 20 deals, supported by momentum in configure-price-quote and sales and order management.

ServiceNow’s Operating DetailsNon-GAAP total gross margin was 78%, down from 81% a year earlier. Subscription gross margin contracted 250 bps to 80.5%.

Non-GAAP operating income rose 22.8% year over year to $1.17 billion. Operating margin was unchanged at 29.5% and came in 300 bps above guidance due to revenue outperformance and the timing of spending, mainly in marketing.

NOW Generates Cash and Maintains LiquidityServiceNow ended the second quarter of 2026 with $2.50 billion in cash and cash equivalents. Current and long-term marketable securities totaled $4.20 billion.

Net cash provided by operating activities was $587 million, compared with $716 million in the year-ago quarter. Free cash flow increased to $634 million from $535 million, while free cash flow margin slipped 50 bps to 16%.

ServiceNow Raises 2026 Subscription OutlookFor the third quarter of 2026, NOW expects subscription revenues between $3.975 billion and $3.980 billion, implying 20.5% year-over-year growth and 20% growth at cc. cRPOs are projected to increase 19.5%, or 20% at cc. Non-GAAP operating margin is expected to be 31%.

For 2026, ServiceNow raised its subscription revenue guidance to $15.76-$15.78 billion from $15.735-$15.775 billion. The midpoint increased by $15 million. The updated range represents 22.5% year-over-year growth and 21% growth at cc.

The company continues to expect an 81% non-GAAP subscription gross margin, a 31.5% non-GAAP operating margin and a 35% free cash flow margin for 2026.

ServiceNow noted that stronger AI adoption and greater use of hyperscaler partnerships are reflected in the gross-margin outlook.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -6.01% due to these changes.

VGM ScoresAt this time, ServiceNow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise ServiceNow has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Shares of Marvell Technology (MRVL -6.50%) shot higher following the news this week that Alphabet (GOOGL +1.30%) (GOOG +1.27%) would extend a partnership with Marvell related to its tensor processing units (TPUs). Meanwhile, Broadcom (AVGO +0.54%), which is Alphabet's main design partner for TPUs, saw its shares sink on the announcement.

As part of the deal, Marvell will provide Alphabet with a variety of components within its TPU architecture. These include things like AI inference accelerators, storage controllers, network interface controllers (NICs), and near-memory compute. In return, Marvell has given Alphabet warrants to buy 58.97 million shares of its stock at a price of $206.65 per share. The warrants vest in tranches based on every $500 million the cloud computing and search giant spends with it.

Despite the deal, Broadcom still looks like the better buy among these two semiconductor stocks.

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Broadcom helped Alphabet develop its TPUs more than a decade ago, and it has been the company's main chip design partner ever since. Earlier this year, it signed a contract with the company to remain its primary design partner through 2031. The two companies also later agreed to a deal to supply Anthropic with TPUs, as well.

The Marvell deal will not impact this, but Alphabet has clearly been adding other partners to its TPU ecosystem. For upcoming TPU iterations, the company has already decided on two versions of its chips, with one for high-performance training and another version for inference. Broadcom is the main partner for the former, while MediaTek has taken the lead for the inference chips. Given the components involved, Alphabet's deal with Marvell should impact MediaTek more than Broadcom.

It's also been rumored that Alphabet is working with Advanced Micro Devices, capitalizing on its central processing unit (CPU) expertise for another future TPU version for agentic AI workloads. If true, Alphabet is looking to really broaden its TPU ecosystem. That ultimately should be good for Broadcom, as it is still a major supplier of networking components, like high-bandwidth Ethernet and optical interconnects.

At the same time, Broadcom still has a huge TPU opportunity in front of it, and it is helping other major AI data center players including Meta Platforms and OpenAI to develop their own custom chips. Broadcom management expects its custom chip business to contribute over $100 billion in revenue in fiscal 2027, and anticipates that business continuing to grow strongly in the year to come.

Trading at a forward P/E of around 18.5 times fiscal 2027 estimates, Broadcom stock looks like a bargain given its expected growth.

Image source: The Motley Fool

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Marvell has been one of the hottest large-cap tech stocks in the market over the past year, with its shares more than tripling. However, its performance has largely been due to excitement around its connectivity business, as optical interconnects are starting to replace copper wires within AI data centers. It projects its interconnect revenue will surge 70% this year, with overall revenue climbing 40%.

The company's custom chip business has also been strong, largely due to its role in Amazon's Trainium chips. However, there has been speculation that it will lose its lead role with Amazon to Taiwanese semiconductor company AIchip in future iterations. This deal with Alphabet, along with one with Microsoft for its new Maia chip, could help replace any lost Amazon revenue or compensate for reduced growth elsewhere.

Marvell is a solid stock, and the company's optical interconnect business should continue to see strong growth. However, the stock reached a pretty frothy valuation, trading at a forward P/E ratio of 57.5 and 37 times next year's expected earnings.

With Broadcom trading at a much cheaper valuation and still anticipating strong growth that should not be materially impacted by the Marvell-Alphabet agreement, the stock looks like the better buy in my view.

Geoffrey Seiler has positions in Advanced Micro Devices, Alphabet, Amazon, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Broadcom, Marvell Technology, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

Key Takeaways SYK delivered 9% organic sales growth in Q2, with strength across MedSurg, Neurotechnology and Orthopaedics.Mako adoption is expanding, with more than 2.5 million procedures and launches in shoulders and RPS.Cybersecurity and supply disruptions remain risks, while temporary tariff benefits complicate margin gains. Stryker (SYK - Free Report) entered 2026 facing an unexpected cyber disruption, yet underlying demand, robotics adoption and international momentum remained strong. While a robust capital pipeline and active acquisition strategy support long-term growth, execution risks tied to recovery efforts, margin pressures and expanding exposure to new markets could shape the company’s performance over the coming quarters.

This Zacks Rank #3 (Hold) company’s shares have lost 6.7% so far this year compared with the industry’s 15.2% decline. The S&P 500 Index has appreciated 11.2% in the same time frame.

Stryker is a global leader in medical technology with a portfolio spanning Orthopaedics, MedSurg and Neurotechnology. The company has a market capitalization of $125.7 billion.

SYK’s bottom line is anticipated to improve 10.4% over the next five years. Its earnings beat estimates in three of the trailing four quarters and missed once, delivering a negative average surprise of 0.73%.

Image Source: Zacks Investment Research

Let’s delve deeper.

Factors Driving SYK’s ProspectsBroad-Based Organic Growth Demonstrates Strong Underlying Demand: Stryker delivered 9% organic sales growth in the second quarter of 2026, with both MedSurg & Neurotechnology and Orthopaedics posting high-single-digit growth. MedSurg & Neurotechnology increased 9.2%, led by strong performances in Instruments, Endoscopy and Medical, while Orthopaedics grew 8.6%. International sales also remained robust at 8.9%, supported by markets including Australia, Germany, Canada, India and Brazil. The breadth of growth is particularly encouraging because it indicates that demand remains resilient across multiple procedure categories rather than being concentrated in a single product franchise. This provides Stryker with a solid foundation for sustaining its 2026 growth outlook.

Mako Robotics Continues to Expand Competitive Advantage: Mako remains a critical growth engine for Stryker, with more than 2.5 million procedures performed globally and systems installed across 47 countries. U.S. knee sales increased 6.2%, supported by continued Mako adoption, while Ortho Tech grew 9.2% on robust Mako installations. The full commercial launch of Mako Shoulder and Mako RPS further expands the platform's addressable procedure base and strengthens Stryker's ability to compete across knees, hips and shoulders. As robotic-assisted surgery gains acceptance, the installed base should create recurring opportunities for implants, instruments and capital equipment, reinforcing Stryker's ecosystem-based competitive moat.

Margin Expansion and Cost Discipline Encouraging: Stryker's second-quarter performance showed meaningful operating leverage, with adjusted EPS rising 17.9% to $3.69. Adjusted gross margin expanded 60 basis points to 66%, and adjusted operating margin increased 170 basis points to 27.4%. Management attributed the improvement to favorable business mix, cost discipline and lower SG&A as a percentage of sales. This is important because the company continues to absorb costs associated with cybersecurity remediation and manufacturing recovery. Stronger margins suggest that Stryker's operational initiatives are offsetting some of these temporary expenses. If revenue momentum persists, incremental sales should increasingly flow through earnings, supporting management's full-year EPS outlook of $14.95-$15.10.

DownsidesCybersecurity Incident Continues to Impact Performance: Although Stryker has largely recovered from its cybersecurity incident, the event continues to weigh on 2026 financial performance. The disruption temporarily shut manufacturing facilities, resulting in lost production absorption and idle costs. Management also expects continued spending on cybersecurity remediation and stabilization throughout the year. The company acknowledged that these costs contribute to a wider EPS guidance range and could limit earnings conversion despite strong revenue growth. While production has been ramped and management believes the recovery is progressing, the episode demonstrates the vulnerability of a highly integrated global manufacturing network. Any additional disruption or slower-than-expected normalization could create further costs, supply constraints and pressure on margins.

Peripheral Vascular Supply Disruptions Are Limiting Near-Term Growth: Stryker's Peripheral Vascular business remains a significant near-term weakness following a supply disruption at a manufacturing facility supporting the Inari portfolio. The issue created a meaningful backlog and resulted in lost sales during the second quarter, offsetting otherwise strong U.S. growth. Management expects backorders to reach manageable levels by the end of the third quarter, but the disruption highlights execution risks within a strategically important growth market. Importantly, management estimated the shortfall was meaningful enough to potentially represent roughly 50-75 basis points of organic growth drag. Until production normalizes, Peripheral Vascular is likely to remain a constraint on consolidated growth despite favorable long-term market fundamentals.

Macro Headwinds Could Pressure Earnings: Stryker's second-quarter margin performance benefited from a net tariff benefit, making the underlying sustainability of margin expansion more complicated. Management noted ongoing pressure from oil and other raw materials while also highlighting continued cybersecurity-related expenses and broader macroeconomic uncertainty. Although the tariff benefit supported second-quarter gross margin, these favorable effects are not necessarily recurring, meaning future quarters could face less favorable comparisons. The company expects strong sales growth to provide earnings leverage, but higher input costs could absorb part of that benefit. Consequently, investors should distinguish between structural productivity gains and temporary cost benefits when assessing the durability of Stryker's 2026 margin trajectory.

Estimate TrendSYK has been witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has increased 3 cents to $15.02 per share.

The consensus mark for third-quarter 2026 revenues is pegged at $6.66 billion, indicating a 10% improvement from the year-ago reported actuals. The bottom-line estimate is pinned at $3.63, implying year-over-year growth of 13.8%.  

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways SPGI's Q2 adjusted EPS rose 23% y/y to $4.83 as operating margin expanded 200 basis points to 54.3%.S&P Global trades at 22.3X forward earnings, above its sub-industry's 21X and the S&P 500's 20.6X.SPGI's 2026 earnings estimate fell 4.5% y/y in four weeks, while Market Intelligence faces execution risk. S&P Global Inc. (SPGI - Free Report) is showing stronger profitability after the Mobility spin-off, supported by recurring revenues, benchmark strength and productivity gains. Those positives improve the long-term earnings case.

The near-term setup is less clean. A premium valuation, falling earnings estimates, elevated obligations and a Market Intelligence reset argue for patience until the risk-reward becomes more favorable.

SPGI's Q2 Profit Growth Strengthens the Bull CaseAdjusted earnings in the second quarter of 2026 rose 23% to $4.83 per share and beat the Zacks Consensus Estimate by 7.6%. Pro forma revenues increased 11% year over year, while recurring revenues advanced 8%.

Adjusted operating profit climbed 15%, and adjusted operating margin expanded 200 basis points to 54.3%. That leverage shows SPGI can convert revenue growth and productivity into faster profit growth.

S&P Global Still Trades at a PremiumSPGI trades at 22.3X forward 12-month earnings, above the 21X Securities and Exchanges sub-industry multiple and the S&P 500's 20.3X. The multiple is below SPGI's five-year median of 28.4X, but the relative premium still leaves less room for execution misses.

                                                                       Image Source: Zacks Investment Research

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Intercontinental Exchange, Inc. (ICE - Free Report) reported 8% growth in fixed-income and data-services revenues in the second quarter of 2026, with recurring revenues in that segment up 10%. Nasdaq, Inc. (NDAQ - Free Report) posted 15% net-revenue growth and 11% growth in annualized recurring revenue, showing healthy peer growth across capital-markets data and infrastructure.

SPGI Faces Liquidity and Execution PressureAt June 30, current liabilities of $9.13 billion exceeded current assets of $8.71 billion. Short-term debt rose to $2.57 billion and long-term debt reached $12.60 billion, although cash increased to $4.13 billion and management expects cash, operating cash flow and credit availability to cover foreseeable recurring needs.

Market Intelligence adds execution risk. Its larger Platforms operation is growing only in the low single digits organically, while management is consolidating technology, simplifying operations and redirecting investment toward faster-growing data and AI opportunities. The payoff depends on disciplined execution without disrupting customer value.

S&P Global's 2027 Estimates Offer a Growth ResetThe Zacks Consensus Estimate calls for 2027 revenues of $15.63 billion and earnings of $20.25 per share. Those figures point to renewed growth beyond 2026 and provide a path for the stock to grow into its valuation.

The revision trend remains the near-term test. The Zacks Consensus Estimate for 2026 earnings has fallen 4.5% over the past four weeks and 9.5% over 12 weeks, so stabilization or upward revisions would strengthen the case that expectations have reset sufficiently.

SPGI Buybacks Add Per-Share SupportManagement raised its 2026 share-repurchase target to more than $7 billion after buying back $1.5 billion in the first half. A lower share count can amplify earnings growth if operating performance remains solid.

SPGI also maintains a quarterly dividend of 97 cents per share. Capital returns are supportive, but their durability still rests on cash generation as the company balances repurchases, investment and an elevated debt load.

SPGI's Signals Still Favor CautionFor now, the evidence favors waiting rather than buying SPGI at the current setup. Margin expansion, recurring revenues and 2027 growth expectations are constructive, but valuation, estimate revisions and Market Intelligence execution leave limited room for disappointment.

The stock currently carries a Zacks Rank #4 (Sell), which reflects an unfavorable near-term earnings-estimate revision backdrop.

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

SPGI’s VGM Score of D, Value Score of D and Growth Score of D reinforce the weaker valuation and growth setup. A Momentum Score of B is a relatively bright spot, but the Zacks Rank remains the primary timing signal and supports a cautious stance.

Key Takeaways ADP stock gained 13.4% in a month, outperforming the industry's 1.6% growth and S&P 500's 2.4%.ADP's Q4 adjusted EBIT rose 13% to $1.37B, while its margin expanded 140 basis points to 25.1% y/y.ADP ended fiscal 2026 with $4.2B in cash and paid $2.6B in dividends, supporting shareholder value. ADP (ADP - Free Report) stock has gained 13.4% in a month, outperforming the industry’s 1.6% growth and the Zacks S&P 500 Composite's 2.4% return.

1-Month Share Price Performance
                                                                    Image Source: Zacks Investment Research

Let us delve deeper into the factors that have contributed to the company’s outperformance.

ADP’s Innovation Initiatives Attract InvestorsADP continues to accelerate its DataCloud penetration and increase investments in inside sales, mid-market migrations and service alignment initiatives through its ongoing transformation initiatives. These initiatives enabled the company to innovate, improve operations, expand margins and enhance its operational capabilities. The results are visible as ADP reported that its adjusted EBIT increased 13% year over year to $1.37 billion in the fourth quarter of 2026. The adjusted EBIT margin expanded 140 basis points to 25.1% in the same time frame, while adjusted net earnings rose 14% y/y to $1.05 billion, reflecting ADP’s successful conversion of revenue growth into stronger operating leverage and expanded profitability. Such results boost shareholder confidence in the company's profit growth.

ADP’s Cash Profile Bolsters LiquidityThe company had a cash balance of $4.2 billion at the end of the fourth quarter of fiscal 2026 against a total long-term debt of just $4.9 billion. The figure is substantially lower than the operating cash flow of $5.4 billion for the same period, indicating sufficient cash flow to pay off its debt. This solid cash position provides ADP with sufficient flexibility to pursue growth opportunities without straining its short-term debt position.

Moreover, ADP had a current ratio of 1.05 during the same time frame. Though the figure is lower than the industry benchmark of 1.93, a metric above 1 indicates greater efficiency to meet short-term obligations, which bolsters investor morale.

Consistent Dividend PayoutIn fiscal 2023, 2024, 2025 and 2026, the company distributed $1.6 billion, $1.7 billion, $1.9 billion and $2.6 billion in dividends, respectively. Such moves reflect ADP’s dedication to enhancing shareholder value. This also underlines its confidence in the business's long-term potential and makes the stock appear highly attractive for income-seeking investors.

ADP’s Zacks Rank & Stocks to ConsiderADP currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .

Analog Devices carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 31%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ADI delivered a trailing four-quarter earnings surprise of 4.8%, on average.

Applied Materials also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 36.7%.

AMAT beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 5.5%.

As Bitcoin (BTC) price pumped by more than 24% over the past seven days, Strategy Inc. (NASDAQ: MSTR), under Executive Chairman Michael Saylor, has seen its holdings record more than $12.9 billion in unrealized profits.

On August 21, Strategy held 840,447 Bitcoin, after acquiring 167,947 coins year-to-date (YTD), according to its official data. With BTC price having climbed by approximately $15,400 per coin over the past seven days, this company’s Bitcoin holdings recorded roughly $12,942,883,800 in paper profits during this period. 

BTC/USD 7-day chart. Source: Finbold However, Strategy’s average Bitcoin cost was around $75,385 at the time of publication. As such, the company’s net unrealized gains were about $2,407,880,655, at the time of reporting. 

The significant Bitcoin price rally above $75,385 has pushed Saylor’s company into profit, for the first time since May 26, 2026. Notably, Strategy’s Bitcoin trove sat on an unrealized loss of over $14.17 billion on July 1, 2026, as BTC price retested its 2026 bear market bottom.

What’s next for Strategy amid Bitcoin price rebound? As Strategy faced intense criticism of a potential liquidity crunch amid the bear market turmoil in the first half of 2026, as Finbold highlighted, this company has since increased its focus on building its cash reserves. Earlier this week, Saylor announced that Strategy had added $150 million to its USD Reserve and repurchased $132 million of STRC, one of the company’s perpetual preferred stock.

As a result, this company lifted its cash reserves to $4.8 billion, without any Bitcoin sale or purchase. YTD, Strategy has sold nearly 6,948 BTC, according to an 8-k filing with the United States Securities and Exchange Commission (SEC).

With the company’s BTC holdings already in net profit amid its reduced sales to bolster cash reserves, Bitcoin price is well positioned to experience further bullish sentiment.

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Key Takeaways HP's Q3 revenues are expected to rise 4.8% to $14.60 billion, while EPS is projected to decline 12%.AI PCs, premium systems and Windows 11 refresh demand are expected to support HP's Personal Systems business.Rising memory, resin and transportation costs could weigh on HP's Q3 profitability and Print margins. HP Inc. (HPQ - Free Report) is slated to release third-quarter fiscal 2026 results on Aug. 26.

The Zacks Consensus Estimate for revenues is pegged at $14.60 billion, suggesting an improvement of 4.8% from the prior-year quarter.

HP expects non-GAAP earnings per share between 61 cents and 71 cents for the fiscal second quarter. The Zacks Consensus Estimate for earnings has remained unchanged at 66 cents over the past 30 days, suggesting a year-over-year decline of 12%.

In the trailing four quarters, HPQ’s earnings matched the Zacks Consensus Estimate in one of the trailing four quarters and surpassed thrice, with an average surprise of 6.7%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence HPQ’s Q3 ResultsHP’s fiscal third-quarter performance is likely to have been supported by continued momentum in the Personal Systems business, particularly from AI PCs, premium PCs and higher-margin attached services. In the second quarter, Personal Systems revenues increased 13% year over year, with AI PCs, advanced compute solutions and workforce solutions delivering double-digit revenue growth. Strength in the AI PC category, driven by Windows 11 refresh cycles and increased adoption of AI PC, is likely to have boosted top-line growth.

The ongoing Windows 11 refresh cycle and demand for AI at the edge are also expected to have supported HPQ’s prospects in the fiscal third quarter. Management noted that around 30% of the installed PC base was still on Windows 10 at the end of the fiscal second quarter, leaving room for additional refresh activity. HP also expects structural demand for AI PCs and premium PCs to remain strong as customers increasingly move AI workloads toward the edge for benefits such as lower latency, privacy and lower costs.

Growing customer adoption of gaming experiences is expected to have aided the fiscal third-quarter performance. The company’s wide portfolio of gaming gear, which includes OMEN MAX 16 Gaming Laptop, OMEN 32x Smart Gaming Monitor, HyperX Pulsefire Saga Pro Wireless Gaming Mouse, HyperX Pulsefire Saga Gaming Mouse and OMEN AI, is likely to have boosted HPQ’s gaming sales, contributing to the top line in the to-be-reported quarter.

However, rising memory prices are likely to have weighed on HP’s profitability in the fiscal third quarter. Memory and storage solution providers are redirecting their resources toward high-margin memory used in AI servers and data centers. This shift has tightened supply for standard DRAM and NAND for laptops and desktops, which has pushed memory prices sharply higher. Since memory accounts for a meaningful portion of a PC’s total build cost, rising prices are eroding PC vendors’ margins.

HP expects inflationary pressures beyond memory and storage, including higher oil prices and related transportation costs. In Print, rising resin and transportation costs are expected to have pressured margins in the fiscal third quarter, while incremental hardware placements and normal seasonality are also likely to have weighed on profitability. Management expects Print operating margins to be near the lower end of its long-term range in the third quarter of fiscal 2026.

Earnings Whispers for HPQOur proven model does not conclusively predict an earnings beat for HP this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

HPQ has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1. The Zacks Consensus Estimate for DELL’s second-quarter earnings is pegged at $4.88 per share, down by a penny over the past 30 days, indicating a rise of 110.3% from the year-ago quarter’s reported figure.

Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.

Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2. The Zacks Consensus Estimate for HPE’s third-quarter earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 113.6% from the year-ago quarter’s reported figure.

Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.

Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25. The Zacks Consensus Estimate for INTU’s fourth-quarter earnings is pegged at $3.59 per share, unchanged over the past 30 days, indicating a rise of 30.6% from the year-ago quarter’s reported figure.

Key Takeaways Trade Desk expects Q3 revenues of at least $650 million and adjusted EBITDA of about $160 million.Macro pressure in CPG and autos is weighing on Trade Desk's near-term visibility.CTV, retail media, AI and international growth remain key long-term opportunities for Trade Desk. The Trade Desk (TTD - Free Report) delivered muted second-quarter 2026 results and issued a cautious third-quarter outlook, reflecting macroeconomic pressures and execution challenges.

Quarterly revenues increased 3% year over year to $715 million. Adjusted EBITDA totaled $241 million, representing a margin of 34%. For the third quarter, management expects revenues of at least $650 million and adjusted EBITDA of approximately $160 million.

Trade Desk highlighted ongoing pressure in key verticals such as Food & Drink and Home & Garden as consumer-packaged goods (“CPG”) brands face geopolitical tensions, inflation and consumer softness. While automotive is an “area of strength overall”, it is also impacted by tariffs, added management. CPG and autos together account for about 25% of platform spend, increasing exposure to cautious enterprise budgets. The company also admitted execution gaps that contributed to the underperformance.

Near-term visibility remains challenging as management's third-quarter guidance assumes no meaningful improvement in the macro backdrop.

Nonetheless, Trade Desk retains long-term opportunities in CTV, retail data and international expansion. In the second quarter, video — which includes CTV — represented a low-50s percentage share of the total business. The shift from linear TV to CTV is still in early stages, providing a long runway for growth. CTV revenues in both EMEA and APAC increased more than 50% year over year, showing that adoption is broadening beyond the United States.

The company had 217 clients with joint business plans in the second quarter, up 38% year over year. Revenues under those plans grew at six times the company’s overall revenue growth rate.

Beyond CTV, retail media has emerged as one of the fastest-growing areas in the digital advertising space. Trade Desk highlighted that participating retailers represented more than 80% of U.S. retail sales. The company also renewed its partnership with Walmart.

Trade Desk is leaning into AI and measurement that tie media to outcomes. Its new measurement framework is currently in alpha and is built to assign value across the customer journey, added Trade Desk. Further, Trade Desk is ramping Audience Unlimited, which is now moving to open beta. Management also plans to launch the Zuma upgrade (for platform usability) in August 2026 to streamline navigation, workflows and troubleshooting while enhancing user experience.

While these initiatives provide potential growth catalysts, weaker visibility, macroeconomic pressures and execution issues suggest that TTD's near-term growth trajectory remains challenging. Compounding the issues is the intensifying competition in the ad tech space from the likes of walled gardens like Amazon (AMZN - Free Report) and smaller rivals like Magnite (MGNI - Free Report) .

Mapping the Competitive TerrainMagnite’s core growth engine, CTV business, continues to deliver strong performance. Second-quarter 2026 CTV contribution ex-TAC of $97 million was up 36% year over year, now accounting for 51% of total contribution ex-TAC.

Magnite noted that the top 10 CTV accounts grew in the mid-to-high 40% range. MGNI works with some of the biggest names in the industry, such as Roku, Netflix, VIZIO, Walmart and Warner Bros. Discovery. Momentum in its ClearLine platform and the SpringServe (CTV ad serving and SSP platform) bode well. Like Trade Desk, MGNI is also embedding AI across its platform to improve pricing, campaign execution, decision-making and workflow automation.

Amazon’s advertising business has gradually emerged as a strong contender in the digital advertising space, leveraging its first-party data.  At the center of Amazon’s ad business lies its DSP platform. AMZN’s DSP platform enables advertisers to plan, activate and measure full-funnel investments.

Advertising revenues jumped 26% year over year to $19.8 billion in the second quarter, with Sponsored Products remaining its key growth driver. Amazon is also witnessing continued growth and engagement in Prime Video ads and live sports, with inventory across NBA, WNBA, Thursday Night Football and NASCAR selling out. The company is strengthening its advertising capabilities through AI-powered tools such as Ads Agent, which reduces campaign setup and targeting time.

TTD Price Performance, Valuation and EstimatesShares of TTD have declined 24.2% in the past month, while the Zacks Internet – Services industry has inched up 0.2%.

Image Source: Zacks Investment Research

In terms of forward price/earnings, TTD’s shares are trading at 7.23X, lower than the Internet Services industry’s ratio of 20.13X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TTD’s earnings for 2026 has been significantly revised downward over the past 60 days.

Image Source: Zacks Investment Research

TTD currently carries a Zacks Rank #4 (Sell).

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

Key Takeaways WDAY launched AI Research to build reliable, trustworthy and efficient enterprise AI systems.Workday's selective AI memory improved precision by 12%, quality by 8% and speed by around 31%.WDAY found specialized AI agents raised decision-making accuracy 5.8% while meeting constraints. Workday, Inc. (WDAY - Free Report) has launched Workday AI Research, a dedicated technical research team focused on developing reliable, trustworthy and efficient enterprise artificial intelligence (AI). The initiative aims to address key challenges associated with deploying AI agents across business operations, including memory, accuracy, privacy, explainability and governance.

Workday’s researchers are focusing on key areas such as AI memory, multi-agent collaboration, recommendation systems, AI training and resource optimization. Its research has been accepted at several leading global AI and technology conferences. To further strengthen its research efforts, the company has introduced an AI Research PhD Fellowship that offers $50,000 in annual funding, mentorship and opportunities to collaborate with its researchers.

The company’s recent research found that a selective AI memory system can help agents retain important information while filtering outdated or unreliable data, improving precision by 12%, overall quality by about 8% and speed by around 31%. It also found that multiple specialized AI agents can improve decision-making, increasing accuracy by 5.8% while ensuring responses met defined constraints.

Workday’s research also highlights the need for effective data deletion, as information removed from an AI agent’s memory may remain in previous summaries. The company’s investment in AI research reflects its focus on building reliable, transparent and well-governed AI systems that can improve automation.

How Are Competitors Advancing in Enterprise AI?Workday faces competition from Oracle Corporation (ORCL - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) . Oracle is expanding its enterprise AI efforts through Oracle Cloud Infrastructure and AI-powered Fusion Cloud Applications. The company is adding AI agents to automate workflows and support business operations across finance, HR and supply chain functions. Oracle is bringing Google’s Gemini models to its enterprise applications, giving customers more options for building and deploying AI agents.

ADP is strengthening its enterprise AI capabilities through ADP Assist, which provides AI agents for HR and payroll functions. The company introduced an AI agent that identifies payroll variances, suggests corrective actions and helps resolve issues before errors occur. ADP is using AI to deliver workforce insights, automate routine tasks and support decision-making while maintaining human oversight and governance.

Workday’s Price Performance, Valuation & EstimatesWorkday shares have lost 13.3% over the past year compared with the industry’s decline of 13.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, Workday trades at a forward price-to-sales ratio of 4.31, above the industry average of 3.87.

Image Source: Zacks Investment Research

Earnings estimates for fiscal 2027 have increased 0.6% to $10.81 over the past 60 days, while the same for fiscal 2028 have decreased 0.1% to $12.66.

Image Source: Zacks Investment Research

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

Key Takeaways MED's enhanced compensation plan prioritizes Executive Director development and stronger field performance.Active earning coaches fell 48.7% to about 11,700 amid rapid GLP-1 adoption in traditional weight loss.Average revenue per active earning coach rose 41% to $6,529, signaling improved coach productivity. Medifast, Inc.’s (MED - Free Report) has made substantial progress by advancing several key initiatives across the business. These include the introduction of an enhanced compensation plan designed to strengthen the company’s focus on developing and expanding its network of Executive Directors, which management identifies as the single greatest driver of sustainable business growth.

The new structure was informed by the success of the EDGE program and is intended to encourage stronger leadership development across the field. By prioritizing the development of Executive Directors, the company aims to build stronger leadership capabilities and support healthier field performance. The impact of the EDGE program is reflected in the company’s field leadership progress, with the percentage of active earning coaches at the Executive Director level or above remaining above the 10% benchmark for a healthy and scalable organization.

The company ended the second quarter of 2026 with approximately 11,700 active earning coaches, down 48.7% year over year, reflecting the continued impact of rapid GLP-1 medication adoption across the traditional weight loss category. In response, MED is reshaping its coach leadership structure by deprioritizing less productive coaches and developing a network of high-performing Executive Director organizations.

Despite the decline in coach numbers, average revenue per active earning coach increased 41% to $6,529, indicating improving coach productivity both year over year and sequentially.

Overall, if the new compensation plan successfully builds a stronger base of Executive Directors and sustains the recent improvement in coach productivity, it could support coach growth over time and, in turn, help Medifast drive revenue growth.

The Zacks Rundown for MEDThe company's shares have gained 9.6% in the past six months against the industry’s decline of 2.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, MED trades at a forward price-to-sales ratio of 0.48, lower than the industry’s average of 0.83. MED currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MED’s current fiscal year earnings implies a year-over-year decline of 140.2%, whereas the same for next fiscal year earnings implies 4.1% growth year over year.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Darling Ingredients Inc. (DAR - Free Report) develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 38.9%, on average.

The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1.

The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Bunzl plc (BZLFY - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. BZLFY currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for BZLFY’ current fiscal-year sales and earnings implies growth of 6.9% and 4.2%, respectively, from the year-ago actuals.

Key Takeaways KEYS revenues rose 36% to $1.85B, while non-GAAP EPS surged 79% to $3.07 in fiscal Q3.Keysight's wireline orders more than doubled as AI infrastructure and high-speed transitions drove demand.KEYS projects fiscal Q4 revenues of $1.93B-$1.95B and non-GAAP EPS of $3.34-$3.40. Keysight Technologies, Inc. (KEYS - Free Report) is benefiting from accelerating investments across artificial intelligence (AI) infrastructure, next-generation communications, semiconductors and defense markets, as exemplified by solid third-quarter fiscal 2026 results. The company’s growth momentum is likely to continue, backed by an expanding portfolio and improving operating leverage.

Keysight’s revenues were $1.85 billion, up 36% year over year, while non-GAAP earnings surged 79% to $3.07 per share. Orders increased to $2.09 billion from $1.34 billion in the year-ago quarter, marking the second consecutive quarter with orders above $2 billion.

AI Infrastructure: Key Growth CatalystThe rapid expansion of AI infrastructure is one of the key growth drivers for Keysight. Rising investments in AI data centers are increasing the complexity of computing and networking architectures, creating demand for Keysight’s design, emulation and testing solutions.

Wireline orders more than doubled year over year in the fiscal third quarter, benefiting from AI infrastructure scaling, higher-speed technology transitions, silicon photonics and system-level emulation. Keysight is participating across the AI development lifecycle, spanning pre-silicon design, chip and component validation, data-center rack and cluster emulation and manufacturing testing.

Increasing adoption of 800-gig and 1.6-terabit optical transceivers is another positive. Moreover, Keysight’s deeper engagement with hyperscalers and semiconductor companies should expand its addressable opportunity as AI architectures become increasingly complex. Management believes AI adoption remains in its early stages, indicating a potentially long runway for the company.

6G Investments Lend SupportKeysight is well-positioned to benefit from the transition toward 6G. With the initial 6G standard targeted for March 2029, customers are gradually moving from exploratory research toward funded development programs.

Emerging technologies such as AI-powered radio access networks, integrated sensing and communication and non-terrestrial networks are expanding Keysight’s growth opportunities. Its broad portfolio of radio-channel, network, device and satellite emulation solutions should help customers test new 6G architectures and applications. Management expects the 6G opportunity to be larger than the 5G cycle.

Semiconductor and Industrial Demand Adds MomentumKeysight’s Electronic Industrial Solutions Group is another important growth engine. Segment revenues jumped 21% year over year to a record $501 million in the fiscal third quarter, driven by growth across semiconductor, general electronics, automotive and energy markets.

Semiconductor demand is benefiting from capacity expansion related to advanced process nodes, high-bandwidth memory and silicon photonics. AI-related computing growth is also increasing test requirements for increasingly complex electronic components.

Software-defined vehicles, automotive cybersecurity, EV charging, energy storage and infrastructure validation are creating additional opportunities for Keysight’s test and measurement solutions.

Price PerformanceKeysight has gained 89.6% over the past year compared with the sector’s growth of 29.2%. It has, however, lagged peers like Aehr Test Systems, Inc. (AEHR - Free Report) and Advantest Corporation (ATEYY - Free Report) . While Advantest has gained 190.6%, AEHR is up a stellar 485.4% over this period. 

One-Year KEYS Stock Price Performance

Image Source: Zacks Investment Research

Robust Outlook Bodes Well for KEYSThe strong demand environment prompted Keysight to provide an upbeat fiscal fourth-quarter outlook. Revenues are projected between $1.93 billion and $1.95 billion, implying approximately 37% year-over-year growth at the midpoint. Non-GAAP earnings are expected between $3.34 and $3.40 per share. For fiscal 2026, management expects revenues and earnings to increase approximately 32% and 60%, respectively.

Keysight has a long-term earnings growth expectation of 19.4%. It delivered a trailing four-quarter average earnings surprise of 15.1%. Keysight currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With a favorable Zacks Rank and healthy fundamentals, KEYS appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.

Key Takeaways Kratos Defense's backlog reached $2.08B, while Q2 bookings totaled $492.2M and the pipeline hit $15B.Kratos Defense plans 3,000 small jet engines in 2027 and about 40 Valkyrie aircraft annually from 2028.Heavy investments may pressure cash flow as KTOS manages supply constraints, hiring and production ramps. Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is entering an important stage of its growth story as rising defense demand begins translating into higher production volumes.

The bigger opportunity is Kratos Defense’s expanding backlog and pipeline. Consolidated backlog increased to $2.08 billion, while bookings reached $492.2 million in the second quarter. Over the last 12 months, bookings totaled $1.99 billion, resulting in a 1.3x book-to-bill ratio. Its bid and proposal pipeline also increased to $15 billion, providing a substantial opportunity set beyond current contracted revenues.

Kratos Defense is now investing ahead of expected demand. The company plans to ramp production to 3,000 small jet engines in 2027 and approximately 40 Valkyrie aircraft annually beginning in 2028. It is also expanding facilities for hypersonics, advanced manufacturing, microwave electronics, engines, space and unmanned systems.

These investments are pressuring near-term cash generation, with Kratos Defense forecasting $125-$135 million of 2026 capital expenditures and $250-$275 million of total investments. However, management expects higher production volumes to create operating leverage as fixed infrastructure is utilized more efficiently.

The main risk is execution: Kratos Defense must manage significant investments, supply-chain constraints, parts shortages, hiring and production ramps. Still, the second-quarter results indicate that the company is increasingly transitioning from a defense technology developer into a scaled production platform, creating a potentially attractive multi-year growth opportunity.

Defense Companies Benefiting From Similar TrendsOther defense companies positioned to benefit from rising spending on autonomous systems, missile defense, propulsion, hypersonics and next-generation military technologies include:

Lockheed Martin (LMT - Free Report) remains one of the largest U.S. defense contractors, with significant exposure to missile defense, advanced aircraft, hypersonic systems and space programs.

RTX Corporation (RTX - Free Report) has strong exposure to missile systems, propulsion, radar and air-defense technologies, areas that remain important as military modernization priorities evolve.

KTOS Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share indicates an increase of 50.91% year over year.

Image Source: Zacks Investment Research

KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price-to-sales (P/S) is 5.15X, a discount to the industry’s average of 8.64X.

Image Source: Zacks Investment Research

KTOS Stock’s Price PerformanceIn the past month, the company’s shares have risen 17.3% compared with the industry’s 2.8% growth.

Image Source: Zacks Investment Research

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

Key Takeaways LNG raised 2026 adjusted EBITDA guidance to $7.9-$8.4 billion as operating trends improved.LNG volumes rose 22.2% year over year, helping lift adjusted EBITDA 27.4% to $1.8 billion.LNG's expansion pipeline adds growth potential, while capital needs and valuation raise execution risks. Cheniere Energy, Inc. (LNG - Free Report) shares have gained 16.1% in the past three months, leaving investors to weigh improving operating trends against a richer valuation. Higher LNG volumes, stronger margins and raised 2026 guidance support the fundamental case.

Image Source: Zacks Investment Research

The expansion pipeline adds another potential growth leg, but capital spending, regulatory dependencies and rising global LNG supply limit room for execution mistakes.

Cheniere's Rally Meets Stronger 2026 FundamentalsCheniere raised its 2026 consolidated adjusted EBITDA guidance to $7.9-$8.4 billion from $7.25-$7.75 billion. Distributable cash flow guidance increased to $5.3-$5.8 billion from $4.75-$5.25 billion.

Management tied the revision to improved reliability, accelerated Stage 3 train start-ups, higher marketing margins and optimization gains. Those developments help frame the optimism surrounding the shares without establishing a direct cause for the three-month advance.

LNG Volume Growth Supports Cheniere's Operating MomentumSecond-quarter LNG volumes loaded reached 672 trillion British thermal units, up 22.2% year over year, while 184 cargoes were exported versus 154 a year earlier. Cheniere also posted quarterly production records at both Corpus Christi and Sabine Pass.

Higher volumes and stronger margins lifted consolidated adjusted EBITDA to $1.8 billion from $1.42 billion, an increase of 27.4%. The combination of higher throughput and margin improvement gives the recent operating momentum a firmer earnings base.

Cheniere's Brownfield Projects Add a Growth RunwayCorpus Christi Stage 3 was 98.4% complete at June 30, with the first six midscale trains operational and Train 7 in construction and commissioning. Train 7 was expected to reach substantial completion in the second half of 2026.

Midscale Trains 8 and 9 were 48.3% complete and remain targeted for the second half of 2028. At Sabine Pass, Phase 1 is designed to add more than 6 million tons per annum through Train 7 and a boil-off gas reliquefaction unit, extending Cheniere's brownfield growth runway.

LNG Valuation Leaves Less Room for Execution SlipsThe rally has pushed Cheniere to 2.57X forward 12-month sales, above its five-year median of 2.08X.

Image Source: Zacks Investment Research

That premium leaves less room for construction delays, weaker project economics or softer contracting conditions.

Expansion is also capital intensive. Cheniere invested about $1.1 billion of growth capital in the second quarter, while key expansion projects still depend on regulatory approvals and acceptable commercial arrangements. Industry competition is increasing as Venture Global, Inc. (VG - Free Report) advances CP2 LNG and NextDecade Corporation (NEXT - Free Report) builds five Rio Grande LNG trains with about 30 million tons per annum of expected capacity.

Cheniere's Momentum Score Backs a Balanced ViewCheniere's operating progress and expansion visibility remain constructive, but the current valuation and execution requirements argue against treating the recent rally as a one-way signal. The setup supports a balanced assessment of further upside.

The stock currently carries a Zacks Rank #3 (Hold), along with a VGM Score of B. Its Momentum Score of A is consistent with favorable recent price trends, while the Value Score of C and Growth Score of C point to a less clear-cut case on valuation and growth characteristics. Together, those readings support a measured stance after the three-month advance. You can see the complete list of today’s Zacks #1 Rank stocks here.

It has been about a month since the last earnings report for Otis Worldwide (OTIS - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Otis Worldwide due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

OTIS Q2 Earnings Beat Estimates, Revenues Up on Strong Service GrowthOtis Worldwide reported mixed second-quarter 2026 results, wherein earnings beat the Zacks Consensus Estimate but declined year over year. Meanwhile, net sales surpassed the consensus mark and increased from the prior year's reported figure.

Despite continued strength in the Service business, the company reduced full-year adjusted EPS, adjusted operating profit and free cash flow guidance

Otis' second-quarter performance reflected continued momentum in its Service business, driven by strong modernization and repair activity, accelerating maintenance trends and robust backlog growth. However, higher investments in Service initiatives and continued weakness in the New Equipment business weighed on profitability.

Inside OTIS' Q2 HeadlinesOTIS reported adjusted earnings per share (EPS) of $1.01, beating the Zacks Consensus Estimate of $1.00 by 1%. In the year-ago quarter, it reported adjusted EPS of $1.05.

Net sales of $3.86 billion surpassed the consensus mark of $3.72 billion by 3.7% and increased 7.3% from $3.60 billion reported in the year-ago quarter. Organic sales increased 6% year over year, led by continued strength in the Service segment. Modernization orders increased 9% at constant currency, while modernization backlog expanded 24% year over year, highlighting healthy demand across the business.

Adjusted operating margin contracted 180 basis points (bps) year over year to 15.2%, reflecting unfavorable segment performance and ongoing investments in strategic Service growth initiatives, partly offset by a favorable business mix.

Segment Details of OTISService: Net sales from the segment increased 11% year over year to $2.58 billion. Organic sales rose 9%, driven by broad-based strength across maintenance, repair and modernization activities. Our model estimated organic sales for the segment to grow 5.4%.

Organic maintenance and repair sales increased 6%, while organic modernization sales jumped 24% from the prior-year quarter.

Segment operating profit increased to $599 million from $578 million a year ago. However, segment operating margin contracted 170 bps year over year to 23.2% as higher labor costs, ongoing investments in strategic Service initiatives, productivity headwinds, material costs and unfavorable mix more than offset higher volume and favorable pricing.

New Equipment: Net sales from the segment were $1.28 billion, flat year over year. Organic sales decreased 1%, reflecting a high-teens decline in China and a mid-single-digit decline in EMEA, partly offset by approximately 10% organic growth in the Americas and low single-digit growth in Asia Pacific. Our model predicted organic sales for the New Equipment segment to decrease 3.3%.

New Equipment orders declined 5% at constant currency, while backlog increased 3% at actual currency and 4% at constant currency.

Segment operating profit declined to $40 million from $68 million in the year-ago quarter. Segment operating margin contracted 220 bps year over year to 3.1%, primarily due to lower volume, unfavorable pricing and adverse mix.

Financial Position of OtisNet cash provided by operating activities totaled $267 million during the second quarter compared with $215 million in the prior-year period.

Free cash flow improved to $223 million from $179 million a year ago, while adjusted free cash flow increased to $290 million from $243 million. During the quarter, the company repurchased approximately $400 million of shares, underscoring its continued focus on returning capital to shareholders.

OTIS Revises 2026 GuidanceOtis reaffirmed its 2026 net sales outlook of $15.1-$15.3 billion, implying approximately 4.6-6% year-over-year growth. Organic sales growth is also still expected in the low to mid-single-digit range.

Organic New Equipment sales are now expected to range from down low single digits to flat, compared with the previous outlook of flat to low single digits. Organic Service sales guidance remained unchanged at mid to high-single-digit growth.

The company lowered its adjusted operating profit outlook to approximately $2.4 billion from the previous expectation of approximately $2.5 billion. Adjusted EPS is now expected in the range of $4.01-$4.05, down from the prior outlook of $4.20-$4.24.

Otis also reduced its adjusted free cash flow guidance to $1.50-$1.55 billion from the previous $1.60-$1.65 billion.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -5.09% due to these changes.

VGM ScoresAt this time, Otis Worldwide has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Otis Worldwide has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Key Takeaways Dollar Tree is set to report Q2 results with expected revenue and earnings growth from a year ago.DLTR's sales may benefit from category strength, market share gains and store portfolio optimization.Tariffs, freight costs and higher operating expenses remain key pressures ahead of the Q2 results. Dollar Tree, Inc. (DLTR - Free Report) is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.85 billion, indicating growth of 6.3% from the prior-year quarter’s reported figure.

The consensus estimate for earnings is pegged at $1.11 per share, suggesting an increase of 44.2% from the year-ago period’s reported figure. The consensus mark has been unchanged in the past 30 days.

DLTR has a trailing four-quarter earnings surprise of 32.1%, on average. In the last reported quarter, the Chesapeake, VA-based company’s earnings surpassed the Zacks Consensus Estimate by 13.7%.

Trends to Watch Before Dollar Tree’s Q2 ReleaseDLTR’s fiscal second-quarter performance is expected to have benefited from growth across categories and market share gains. Dollar Tree’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings appears encouraging. Such factors have been driving the company's comps for a while now.

The company is expected to have witnessed a strong performance, driven by sales growth across categories and market share gains. Dollar Tree has made significant progress over the years in optimizing its store portfolio through store openings, renovations, re-banners and closings. The expanded multi-price assortment, continued strength from higher-income customers, and a healthy balance between traffic and ticket continue to support comps growth.

Strong performance from store conversions, openings, improved distribution center flow and the early traction of the Uber Eats partnership should have provided incremental support to second-quarter fiscal 2026 revenues.

For the second quarter of fiscal 2026, the company projects net sales from continuing operations between $4.8 billion and $4.9 billion, supported by expected comparable-store sales growth of 2.5-3.5%. Adjusted earnings per share are anticipated to be $1-$1.15.

Our model projects year-over-year sales growth of 6.2% and adjusted earnings per share of $1.10 for the second-quarter fiscal 2026.

However, Dollar Tree’s second-quarter fiscal 2026 results are expected to reflect the environment of uncertainty that management emphasized on the latest earnings call. Despite strong discretionary and consumable spending, management has taken a cautious stance, given the volatile macroeconomic backdrop and rising financial pressures on lower-income consumers, who continue to face elevated living costs across categories.

Dollar Tree has been witnessing pressure on SG&A expenses in recent quarters due to higher operating costs and strategic business investments. Another major factor weighing on the company’s performance is likely to have been the timing of tariff impacts. Tariff-related pressures have been leading to higher costs and remain concerning.

On the margin front, our model predicts the gross margin to be flat year over year at 34.4% in the fiscal second quarter. Benefits from improved markdowns and merchandising execution are likely to have been offset by tariffs and higher freight costs.

Dollar Tree’s Zacks Model FindingsOur proven model does not predict an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Dollar Tree currently has an Earnings ESP of 0.00% and a Zacks Rank of 2.

DLTR’s Stock Price & Valuation PictureFrom a valuation perspective, Dollar Tree shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.36X, below the five-year median of 17.74X and the Retail-Discount Stores industry’s average of 30.2X, the company’s shares offer compelling value for investors seeking exposure to the sector.

Image Source: Zacks Investment Research

Recent market movements show that Dollar Tree’s shares have rallied 35.2% in the past three months against the industry’s 2.4% decline.

Image Source: Zacks Investment Research

Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:

Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.

Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for FIVE’s quarterly revenues is pegged at $1.2 billion, which indicates a 17.9% rise from the figure reported in the prior-year quarter.

The consensus mark for Five Below’s quarterly earnings has been unchanged in the past 30 days at $1.28 per share. The consensus estimate indicates an increase of 58% from the year-ago quarter’s actual. FIVE has an average trailing four-quarter earnings surprise of 70.1%.

Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +0.41% and a Zacks Rank of 3. ULTA is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.97 billion, which indicates 6.5% growth from the prior-year quarter’s actual.

The consensus estimate for earnings has moved up 0.3% in the past seven days to $6.19 per share, which implies 7.1% growth from the year-ago quarter's actual. ULTA has an average trailing four-quarter earnings surprise of 10%.

A month has gone by since the last earnings report for RPM International (RPM - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is RPM International due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for RPM International Inc. before we dive into how investors and analysts have reacted as of late.

RPM International Q4 Earnings & Sales Beat, Both Up Y/YRPM International reported strong fourth-quarter fiscal 2026 results, with adjusted earnings and net sales topping the Zacks Consensus Estimate and increasing on a year-over-year basis.

The quarterly results were driven by increased demand for engineered solutions for high-performance buildings and infrastructure projects, acquisitions, positive pricing and favorable foreign currency translation. These tailwinds were partly offset by soft demand in do-it-yourself markets.

Inside RPM International’s HeadlinesThe company’s adjusted earnings per share of $1.89 topped the Zacks Consensus Estimate of $1.84 by 2.7%. In the prior-year quarter, RPM reported adjusted earnings of $1.72 per share.

Net sales of $2.23 billion also surpassed the consensus mark of $2.19 billion by 2.1% and increased 7.2% year over year. Net sales rose 2.5% organically during the quarter year over year. Acquisitions net of divestitures and favorable foreign currency translation aided sales by 3.5% and 1.2%, respectively.

Geographically, sales climbed 11.1% in Europe, which represented 15% of the fiscal fourth quarter’s total sales, compared with the prior-year quarter, primarily driven by acquisitions. North American sales, accounting for 77% of total sales, increased 5.1% year over year due to strength in turnkey and system solutions for high-performance buildings.

Sales in Latin America, representing 4% of total sales, rose 18.9% year over year. Sales in Africa, the Middle East and other foreign markets increased 14.5% year over year, while Asia-Pacific sales surged 39.4% year over year. Emerging-market growth benefited from demand for engineered solutions for high-performance buildings and infrastructure projects.

RPM’s Operational DiscussionSelling, general and administrative expenses were $635.3 million compared with $592.8 million in the prior-year quarter. As a percentage of net sales, the metric remained unchanged at 28.5%.

Adjusted EBIT increased 7.7% year over year to a record $338.6 million. Adjusted EBIT margin expanded 10 bps to 15.2%. Higher volumes improved fixed-cost utilization, while operational-efficiency initiatives helped offset increased healthcare and insurance expenses and inflation.

Segmental Details of RPM InternationalConstruction Products Group: In the reported quarter, the segment’s net sales increased 8.8% year over year to $904.2 million, owing to 5.7% organic sales growth, a 1.6% contribution from acquisitions net of divestitures and a 1.5% favorable foreign currency translation impact.

Adjusted EBIT of $175.1 million increased 14.6% year over year, and adjusted EBIT margin expanded 100 bps to 19.4%. Results benefited from broad-based strength led by concrete admixtures, roofing restoration systems and labor-saving wall systems for high-performance buildings, including data centers.

Performance Coatings Group: The segment’s net sales grew 5% year over year to $562.8 million. Sales increased 2.2% organically, while acquisitions and favorable foreign currency translation added 1.5% and 1.3%, respectively.

Adjusted EBIT rose 10.6% year over year to $84.9 million, and adjusted EBIT margin increased 80 bps to 15.1%. Strength in fireproofing systems, infrastructure projects and food coatings and ingredients was partly offset by a $3.2-million bad-debt expense related to a customer bankruptcy.

Consumer Group: Net sales in the segment increased 7% year over year to $764.8 million. Organic sales declined 0.8%, while acquisitions and favorable foreign currency translation contributed 7.2% and 0.6%, respectively.

The segment’s adjusted EBIT increased 2.6% year over year to $123.3 million. Adjusted EBIT margin contracted 70 bps to 16.1%. Acquisitions, pricing and operational improvements more than offset lower volumes, inflation and reduced fixed-cost absorption.

RPM’s Fiscal 2026 HighlightsFor fiscal 2026, RPM reported adjusted earnings of $5.53 per share, up 4.3% year over year from $5.30. Net sales of $7.86 billion increased 6.7% year over year from $7.37 billion.

Adjusted EBIT increased 4.4% year over year to a record $1.02 billion. Growth was supported by higher sales, improved fixed-cost leverage and benefits from operational-improvement initiatives.

RPM International’s Balance SheetAt the fiscal 2026-end, RPM International had total liquidity of $1.09 billion compared with $969.1 million at the fiscal 2025-end. This includes cash and cash equivalents of $315.2 million compared with $302.1 million at the fiscal 2025-end.

Total debt at the fiscal 2026-end was $2.53 billion, down from $2.65 billion at the fiscal 2025-end, as the company used a portion of its strong operating cash flow to reduce debt.

Cash provided by operating activities amounted to $898.7 million in fiscal 2026, up from $768.2 million in the prior year.

In fiscal 2026, capital expenditures were $223.5 million compared with $229.9 million in fiscal 2025. The company returned $349.2 million to stockholders through cash dividends and share repurchases, up 7.3% year over year from $325.6 million.

RPM’s Fiscal 2027 OutlookFor the first quarter of fiscal 2027, RPM expects consolidated sales to increase in the mid-single-digit range year over year. Sales across the Construction Products, Performance Coatings and Consumer groups are also projected to grow in the mid-single-digit range year over year.

Consolidated adjusted EBITDA is expected to increase in the mid-single-digit range year over year. For fiscal 2027, management expects sales growth of 3% to 7% and adjusted EBITDA growth of 5% to 10% year over year.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresAt this time, RPM International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, RPM International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Bloom Energy (BE -2.21%) stock is more than 40% off its 2026 highs reached in June. That doesn't mean shareholders have had a bad year, though. Bloom shares are still up by about 125% year to date as of this writing.

That juxtaposition makes it even more timely to examine why shares sank 13.5% this week as of Friday morning, according to data provided by S&P Global Market Intelligence. Let's look at whether the drop gives investors who felt they missed out a great chance to own shares now.

Image source: Getty Images.

Bloom introduced a new deployment system for its fuel cell systems this week. The company said its new Power Connect system can reduce the time required for on-site power installations by more than 40%. That will help data center operators bring new capacity online sooner, generating revenue and driving higher returns on investment.

One might think such a development would boost the stock, rather than the double-digit drop seen this week. But investors have already bid the stock higher, anticipating growing future business. Bloom Energy expects to generate about $4 billion in revenue this year, doubling last year's sales. But the company is already valued at close to $60 billion, implying strong growth beyond 2026.

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Some investors are locking in gains rather than waiting for the company to grow into its valuation. But long-term investors can think differently. Bloom Energy is boosting capacity, envisioning a growing order backlog. That makes the recent pullback a reasonable opportunity to invest in a name that has become a popular choice for data center operators needing reliable power.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.

Key Takeaways MOS launches Enzara to accelerate crop residue decomposition and enable plant ready field conditions sooner.Enzara's enzyme technology works at low temperatures, unlike microbial-based solutions.MOS' Enzara can cut residue and fuel use while mixing with fertilizers and herbicides to avoid another pass. The Mosaic Company’s (MOS - Free Report) Mosaic Biosciences unit recently launched Renuvis Enzara, a new residue management solution designed to accelerate crop residue decomposition and help growers with plant-ready field conditions sooner.

The product addresses challenges associated with increasing residue levels resulting from higher-yielding hybrids, no-till practices and continuous corn production. Heavy residue can add tillage passes, reduce planting capacity and contribute to uneven emergence and inconsistent seed depth.

Enzara uses endoglucanase enzyme technology to target the structural fibers holding crop residue together. Unlike microbial-based solutions that require time to colonize, the enzyme begins working even under cold conditions, including temperatures as low as 32 degrees Fahrenheit. By creating more entry points for naturally occurring soil microbes, the product is designed to manage more residue.

The solution can also complement current residue management practices by reducing residue, lowering fuel consumption and can be applied in fall or spring and is compatible with fertilizer and herbicide tank mixes, eliminating the need for an additional application pass. The launch expands Mosaic Biosciences' product portfolio and highlights the company's focus on technology-driven solutions that can improve farm productivity and operational efficiency.

MOS’ shares have lost 28.3% over the past year compared with the industry’s 45.1% decline.

Image Source: Zacks Investment Research

MOS’ Zacks Rank & Key PicksMOS currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks in the Basic Materials space are Neo Performance Materials Inc. (NOPMF - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avient Corporation (AVNT - Free Report) .

While NOPMF currently sports a Zacks Rank #1 (Strong Buy), CRS and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NOPMF’s 2026 earnings is pinned at $1.4 per share, indicating a 185.71% year-over-year increase. NOPMF’sshares have gained 94.3% over the past year.

The Zacks Consensus Estimate for CRS’ fiscal 2027 earnings is pegged at $12.92 per share, indicating a rise of 20.07% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.39%.

The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 16.5% over the past year.

The Zacks Building Products - Air Conditioner & Heating industry continues to benefit from several favorable trends in 2026. Rapid data center development is driving demand for specialized and energy-efficient cooling systems, while electrification and tighter efficiency standards are supporting heat pumps and other advanced HVAC solutions. Rising adoption of smart controls and connected systems, along with steady service and aftermarket demand, provides further support.

On the downside, weakness in single-family construction and cautious consumer spending continue to limit residential HVAC demand, increasing dependence on replacement activity. Tariffs, commodity and freight inflation also create cost pressures, while investments in new manufacturing capacity can weigh on margins through start-up costs and lower initial utilization. Despite these challenges, companies such as Comfort Systems USA (FIX - Free Report) , Carrier Global Corporation (CARR - Free Report) and SPX Technologies, Inc. (SPXC - Free Report)  are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.

Industry Description The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.

4 Trends Shaping the Future of the Air Conditioner & Heating Industry Data Center Boom Fuels Commercial HVAC Demand: Rapid investment in AI, cloud computing and hyperscale data centers is emerging as a major growth driver for the U.S. Air Conditioner and Heating industry. These facilities require large, reliable and energy-efficient cooling systems to manage increasingly dense computing workloads. Demand is expanding across air- and water-cooled chillers, custom air handlers, cooling towers, dry and adiabatic cooling systems and related equipment. Strong project pipelines are also encouraging manufacturers to expand production capacity and improve throughput. Importantly, hyperscale and colocation projects generally provide greater forward visibility because cooling equipment must be secured well before facilities become operational, supporting a favorable multiyear demand outlook.

Electrification, Efficiency Upgrades and Smart HVAC Drive Growth: Electrification, tighter efficiency standards and smart-building adoption are supporting U.S. HVAC industry growth in 2026. Demand for electric heat pumps, high-SEER air conditioners and low-GWP refrigerant systems is rising as customers seek lower energy use and compliance with stricter regulations. Federal and state incentives are helping offset upgrade costs, while aging equipment supports resilient replacement demand.

Meanwhile, HVAC systems are becoming more connected through intelligent controls, smart thermostats, humidification systems and actuated valves, improving efficiency, performance and operational visibility. This shift toward higher-value, connected equipment is also expanding service and aftermarket opportunities across residential and commercial markets.

Housing Weakness Limits Residential HVAC Recovery: Residential HVAC demand remains under pressure from persistent weakness in the U.S. housing market. New single-family construction continues to face challenges, while cautious consumer spending is restraining discretionary repair and remodeling activity. A meaningful recovery in residential construction is not expected in 2026, limiting demand for HVAC systems tied to new homes. Although earlier channel destocking is fading, underlying demand remains subdued and increasingly reliant on replacement activity rather than new installations. These conditions could keep residential HVAC volumes under pressure and make the segment more vulnerable to housing affordability constraints, elevated borrowing costs and continued consumer caution.

Tariffs, Inflation and Capacity Costs Pressure Margins: Cost pressures remain a key challenge for the U.S. Air Conditioner and Heating industry in 2026. Tariffs are raising costs for certain materials and components, while commodity, freight and other inflationary pressures add uncertainty to the price-cost equation. Pricing actions can offset some of these pressures, but tariff-related price increases do not necessarily translate into higher margins.

At the same time, manufacturers are rapidly expanding capacity to meet strong commercial and data center demand. New facilities and production lines can initially generate start-up costs, lower utilization and operating inefficiencies. Higher utilization, sourcing improvements and productivity gains will therefore be important for margin improvement.

Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since June 2026, the industry’s earnings estimates for 2026 and 2027 have increased to $5.11 per share (from $4.91) and $5.95 per share (from $5.70), respectively.

We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.

Industry Outperforms Sector, Lags S&P 500 The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector but lagged the Zacks S&P 500 Composite over the past year.

In the same time frame, the industry has gained 16.7% compared with the broader sector’s 6.5% rise. Meanwhile, the Zacks S&P 500 Composite has gained 23.4% during the period.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 23.87X compared with the S&P 500’s 20.55X and the sector’s 19.99X.

Over the past five years, the industry has traded as high as 30.77X, as low as 15.87X and at a median of 23.97X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

3 Air Conditioner and Heating Stocks to Buy Now Below, we have discussed three stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.

Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems is benefiting from strong demand across technology and other industrial markets, supported by continued data center construction and rising needs for complex mechanical and electrical infrastructure. Direct relationships with hyperscalers provide visibility into future projects, while sustained customer demand supports further expansion of its modular operations.  The company is also broadening its modular customer base through opportunities with frontier labs and colocation providers.  Strong institutional demand, disciplined project selection and skilled tradespeople further support execution. Meanwhile, the growing installed base of data centers creates a longer-term opportunity to expand recurring service and maintenance work.

 Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 142.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $45.86 from $43.05 over the past 30 days. The estimated figure indicates 58.8% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 34.6%. Again, Comfort Systems’ trailing 12-month return on equity of 53.6% is better than its peer group average of 16.9%. It has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here. .

Price and Consensus: FIX

SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies is benefiting from robust demand for data center cooling solutions, supported by hyperscaler, colocation and neocloud customers. Capacity expansions, improved production flow, lean initiatives and higher throughput are strengthening its ability to meet this demand.  The Neptronic acquisition adds another growth avenue by broadening SPX’s HVAC portfolio with intelligent controls, electric heating, humidification and actuated valves, while expanding its addressable markets.  Strong customer relationships and global distribution channels provide cross-selling opportunities. Meanwhile, healthy project activity, innovation and synergy initiatives in Detection & Measurement, along with an active acquisition pipeline, should support further growth.

SPX Technologies currently carries a Zacks Rank #2. The stock has gained 7.4% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $8.41 from $8.06 over the past 30 days. The estimated figure indicates 24.4% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 8.6%. Again, SPXC’s trailing 12-month return on equity is 16.5%.

Price and Consensus: SPXC

Carrier: Headquartered in Palm Beach Gardens, FL, Carrier provides intelligent climate and energy solutions worldwide. Carrier has been benefiting from robust commercial HVAC demand, particularly from data centers, supported by growing hyperscaler and colocation investments and capacity expansion. Growing adoption of liquid cooling provides another opportunity as AI infrastructure becomes more power intensive. The recovery in residential and light commercial HVAC, supported by replacement demand and improving channel conditions, adds momentum. In Europe, heat-pump adoption, supportive subsidies, high natural-gas prices and new product launches remain favorable. Carrier is also benefiting from expanding aftermarket opportunities, while the 75F acquisition strengthens its intelligent-building, AI-enabled controls and systems-integration capabilities, broadening its addressable markets.

Carrier currently carries a Zacks Rank #2 (Buy). The stock has lost 11.2% over the past year. Carrier has seen an upward estimate revision for 2026 EPS to $2.85 from $2.79 over the past 30 days. The estimated figure indicates 10% year-over-year growth in 2026. Carrier surpassed earnings estimates in three of the trailing four quarters and missed on the other, with the average surprise being 8.5%.

Price and Consensus: CARR

Key Takeaways Home Warranty revenues rose 3% to $113.8 million, while pretax income increased 9% to $24.2 million. The segment's pretax margin grew 21.3%, supported by favorable claims experience and lower claim frequency. Renewal-based warranty policies offer recurring revenues that cushions FAF when real estate activity weakens. First American Financial Corporation’s (FAF - Free Report) Home Warranty business can support long-term growth by providing recurring revenues, strong profitability and greater earnings diversification beyond its cyclical title-insurance operations.

Home Warranty generates relatively recurring revenues from customers seeking protection against unexpected home-system and appliance repair costs. This provides FAF with a more stable earnings stream than its transaction-sensitive title business. In the second quarter of 2026, Home Warranty generated $113.8 million of revenues, up 3% year over year, while pretax income increased 9% to $24.2 million. The pretax margin improved to 21.3% from 20.2%, reflecting solid profitability.

The segment’s claims experience also remains favorable. Its claim loss rate declined to 40% from 41% in the second quarter of 2026, primarily due to lower claim frequency, although higher claim severity partly offset the improvement. Continued control over claim frequency and severity should be important for maintaining margins.

Home Warranty also strengthens FAF’s business diversification by expanding its exposure to the broader homeownership and home-maintenance ecosystem, rather than relying primarily on real-estate transactions. When housing activity or mortgage originations weaken, the segment can help cushion FAF’s earnings because its revenues are not directly dependent on title order volumes.

Furthermore, renewal-based warranty policies can provide a more predictable source of revenue between real-estate transaction cycles. This recurring earnings stream can complement FAF’s title-insurance operations and improve the overall resilience of its business model.
Overall, Home Warranty could become an increasingly important stabilizing earnings engine for FAF. Its recurring revenues, strong margins and favorable claims trends can help offset volatility in the title business and support sustainable long-term profitability, provided FAF continues to manage claim costs effectively.

What About Other Players?    Fidelity National Financial, Inc. (FNF - Free Report) operates its Home Warranty business through Fidelity National Home Warranty, which protects against unexpected repair or replacement costs for major home appliances and systems. Home Warranty is included within FNF’s Title segment, alongside title insurance, escrow and other title-related services. The business also complements FNF’s core real-estate operations by providing an additional service to homeowners and real-estate customers.

Old Republic International Corporation (ORI - Free Report) operates its Home Warranty business through Old Republic Home Warranty, a subsidiary that has been part of ORI since 1982. The business provides home warranty plans that cover the repair or replacement of major home systems and appliances when they fail because of normal wear and use, including heating, air conditioning, plumbing, electrical systems and kitchen appliances. The business serves both homeowners and real-estate professionals, making its warranties particularly relevant during home-buying and selling transactions. It also offers optional coverage that allows customers to tailor plans to their specific needs.

FAF’s Price PerformanceShares of FAF have gained 8.3% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

FAF’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.3, lower than the industry average of 1.41. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for FAFThe Zacks Consensus Estimate for FAF’s third-quarter and fourth-quarter 2026 EPS has moved up 6.8% and 2.8%, respectively, in the past 30 days. The same for the full-year 2026 and 2027 EPS has moved up 5.5% and 3.6%, respectively, in the past 30 days.

Image Source: Zacks Investment Research