Procter & Gamble (PG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this world's largest consumer products maker have returned -1.7%, compared to the Zacks S&P 500 composite's +4.3% change. During this period, the Zacks Consumer Products - Staples industry, which P&G falls in, has gained 1.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, P&G is expected to post earnings of $1.42 per share, indicating a change of -4.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.4% over the last 30 days.
The consensus earnings estimate of $6.89 for the current fiscal year indicates a year-over-year change of +0.9%. This estimate has changed -0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.05 indicates a change of +2.4% from what P&G is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, P&G is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For P&G, the consensus sales estimate for the current quarter of $21.43 billion indicates a year-over-year change of +2.6%. For the current and next fiscal years, $87.12 billion and $89.56 billion estimates indicate +3.4% and +2.8% changes, respectively.
Last Reported Results and Surprise HistoryP&G reported revenues of $21.24 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $1.59 for the same period compares with $1.54 a year ago.
Compared to the Zacks Consensus Estimate of $20.51 billion, the reported revenues represent a surprise of +3.52%. The EPS surprise was +1.92%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
P&G is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about P&G. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
JNJ is set to report second-quarter results on July 15 as investors weigh strong growth drivers, new launches and patent headwinds shaping its long-term outlook.
Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) and Coca-Cola (NYSE:KO) both delivered Q1 2026 beats and both are being crowded into by capital rotating out of tech. JNJ has broken out past $259, while KO just tagged an all-time high near $84.14. That backdrop makes this a real premium-defensive showdown.
Pharma Pipeline Muscle Meets Beverage Brand Muscle JNJ posted $24.062 billion in revenue, up 9.9% year over year, with adjusted EPS of $2.70. The portfolio mix tells the real story. DARZALEX pulled $3.964 billion (+22.5%) and TREMFYA jumped 68.3% to $1.608 billion, mopping up share from STELARA, which fell 59.7% under biosimilar pressure. CEO Joaquin Duato called it “a strong start to 2026”, and management raised guidance to $100.3B to $101.3B in revenue.
Coca-Cola came in cleaner on the top line. Revenue rose 12.1% to $12.472 billion, with EPS of $0.86 beating by 5.87%. Organic revenue grew 10%, and Zero Sugar volumes climbed 13% across every region. New CEO Henrique Braun credited “staying close to the consumer, executing locally and managing complexity.” Operating margin widened to 35.0% from 32.9%. That is beverage pricing power at its cleanest.
Where the Defensive Bets Really Split Lens JNJ KO Growth engine Oncology and MedTech Zero Sugar and pricing Forward P/E 23 26 Dividend streak 64 years 63 years YTD price move +26.71% +20.26% JNJ carries the messier story. Net income fell 52.4% on $330M in litigation charges, and free cash flow dropped hard. But the pipeline is doing the heavy lifting, with 28 separate billion-dollar platforms and a planned Orthopaedics spin. KO looks pristine, yet volume only grew 3%. Most of the growth is price. That works until it does not.
The Next Catalysts Are Asymmetrical For JNJ, I am watching TREMFYA and DARZALEX absorb the last of STELARA erosion, plus the December 8 Enterprise Business Review. Polymarket traders currently price a 92% probability of another JNJ earnings beat. For KO, the tests are volume durability outside pricing and the Africa bottling divestiture in H2 2026, which trims a few points of reported revenue.
Why I Lean JNJ For The Next Twelve Months On the numbers, JNJ screens more attractively here. A 23 forward multiple for double-digit oncology growth and a raised outlook feels underpriced next to KO paying 26 times forward earnings for mid-single-digit organic growth. If you are a strict income investor who wants zero drug-pipeline risk, KO’s 2.53% yield and brand moat still fit. I would only pivot to KO if input costs settle and volumes actually reaccelerate. Until then, JNJ looks like the better risk-reward premium anchor.
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The Zacks Media Conglomerates industry is flourishing, driven by the consumer shift toward over-the-top (OTT) content. Major players like Disney (DIS - Free Report) , Sphere Entertainment Co. (SPHR - Free Report) , Lionsgate Studios Corp. (LION - Free Report) and Reservoir Media (RSVR - Free Report) are aggressively investing in developing original music, shows and fresh content to captivate and retain Gen Z and millennial subscribers. Moreover, the industry's prospects are bolstered by the availability of cost-effective alternative packages, such as skinny bundles, designed to entice consumers with lower prices compared to traditional offerings. Conversely, the industry grapples with waning broadcast television ratings and diminishing demand for home entertainment sales of theatrical content. Furthermore, advertisers' tepid spending amid rampant inflation and elevated interest rates poses a formidable concern for industry players.
Industry Description The Zacks Media Conglomerates industry encompasses companies engaged in creating and distributing various content forms, from entertainment to educational materials. These firms also offer travel and consumer products. The industry is adapting to the shift toward OTT content, both subscription-based and ad-supported. Advertising remains a key revenue source, while the metaverse presents new opportunities. Subscription price increases, driven by growing subscriber numbers, offer potential revenue growth. However, the industry faces challenges that include declining broadcast TV ratings, reduced demand for home entertainment versions of theatrical releases, and increasing cord-cutting trends. Despite these obstacles, media conglomerates continue to evolve, leveraging new technologies and consumer preferences to maintain their market position.
3 Trends Shaping the Future of the Media Industry Original Content Driving Growth: Media companies' capacity to generate advertising revenues beyond traditional TV platforms, such as websites and other digitally consumed channels, unlocks increased opportunities for targeted advertising. The growing consumer preference for subscription services over linear pay-TV and rental or outright purchases has compelled industry players to adapt their business models. Media companies are innovating with original content to attract and retain subscribers.
High-Speed Internet Demand Acting as a Key Catalyst: The burgeoning demand for high-speed Internet, including broadband, has benefited the media industry participants. Improving Internet speed has fueled the demand for high-quality videos and the trend of binge-watching. Furthermore, a strengthening broadband ecosystem in international markets, coupled with the proliferation of smart TVs, is expected to drive growth.
Cord-Cutting and Matured PayTV Industry Hurting Prospects: The media television industry is undergoing a rapid evolution of distribution platforms, embracing new players and advanced technologies. The declining profitability of residential video services due to rising programming costs and retransmission fees has made survival challenging for traditional companies. Additionally, the heightened demand for on-demand content has led to the mushrooming of streaming service providers, making it increasingly difficult for traditional media television companies to maintain their viewer base.
Zacks Industry Rank Indicates Bright Prospects The Zacks Media Conglomerates industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #74, which places it in the top 30% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. 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 position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the Sector, S&P 500 The Zacks Media Conglomerates industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year.
The industry has declined 23.3% in the abovementioned period compared with a 15.5% drop in the broader sector. The S&P 500 has risen 24.2% during the same time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of the trailing 12-month P/S, a commonly used multiple for valuing media companies, we see that the industry is currently trading at 1.24X compared with the S&P 500’s 6.13X and the sector’s 1.56X.
Over the past five years, the industry has traded as high as 3.45X and as low as 1.15X, with a median of 1.5X, as the charts below show.
Trailing 12-Month Price-to-Sales (P/S) Ratio
4 Media Stocks to Buy Lionsgate Studios is well-positioned heading into fiscal 2027, with momentum building across both segments. Three tentpole motion pictures — Michael, The Hunger Games: Sunrise on the Reaping, and Resurrection of the Christ — anchor a franchise-heavy theatrical slate poised to generate substantial box office and ancillary revenues. The Television Production segment is set to nearly double scripted episodic deliveries after renewing 12 of 13 current series. The 20,000-plus title library sustains more than $1 billion in the trailing 12-month revenues, while a $1.3 billion contractual backlog — with 90% converting in 24 months — provides near-term visibility. Management has guided for significant adjusted OIBDA and free cash flow growth in fiscal 2027. This Zacks Rank #1 (Strong Buy) company's July-September 2026 corporate fact sheet signals continued confidence in this trajectory. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the company’s fiscal 2027 earnings has moved north by 69.2% to 44 cents per share over the past 60 days. LION shares have returned 50% in the past six-month period.
Price and Consensus: LION
The Walt Disney Company offers a favorable near-term setup, underpinned by management guidance and content-driven catalysts. For fiscal 2026, Disney targets approximately 12% adjusted EPS growth excluding the 53rd week, rising to 16% when included, alongside at least $8 billion in share repurchases. Entertainment SVOD margins are on track for 10%, with double-digit segment OI growth skewed to the second half. Experiences target high-single-digit OI growth with Walt Disney World bookings up 5%. Fiscal 2027 guidance adds another double-digit EPS target. In July 2026, Toy Story 5 claimed the biggest global opening of 2026 and the second-biggest domestic animated debut ever. The June 2026 Disney Celebrates America initiative integrates parks, streaming and broadcast, widening near-term revenue and earnings visibility for this Zacks Rank #2 (Buy) stock.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings has moved north by 0.9% to $6.86 per share over the past 60 days. DIS shares have lost 15.8% in the past six-month period.
Price and Consensus: DIS
Sphere Entertainment is building momentum across multiple growth pillars. The Wizard of Oz at Sphere crossed $400 million in ticket sales with more than three million tickets sold since its August 2025 debut, confirming sustained audience demand. Sphere Studios' June 2026 announcement of The Rocky Horror Picture Show, slated for 2027, deepens the original content pipeline. A five-year F1 Las Vegas Grand Prix partnership extension through 2030, announced in July 2026, ensures multi-year revenue visibility through Exosphere activations. Metallica's 24-concert residency beginning in October 2026 and the Backstreet Boys' 56-night run further densify the event calendar. With Sphere Abu Dhabi confirmed at Yas Island and National Harbor in development, the global rollout adds a structural growth layer underpinning investor sentiment.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2026 bottom line is pegged at a loss of $2.52 per share, steady over the past 60 days. SPHR shares have risen 50.8% in the past six-month period.
Price and Consensus: SPHR
Reservoir Media's fiscal 2027 guidance of $186-$191 million in revenues and $75-$79 million in adjusted EBITDA signals continued momentum, underpinned by a diversified and expanding catalog. The company's fiscal 2026 operating cash flow of $50.1 million, up $4.9 million year over year, and total available liquidity of $117.1 million provide meaningful flexibility for further acquisitions. Recent strategic moves reinforce the growth trajectory: in June 2026, Reservoir launched a joint venture with Latin music publisher TU Publishing, extending its presence in a high-growth market segment. That same month, the company signed Jady frontman Jarrett Doherty through a newly established joint venture with Tinman. In July 2026, a publishing deal with Grammy-winning hip-hop icon T.I. — spanning back catalog and future works — further diversifies the company's portfolio and expands its commercial reach.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s fiscal 2027 earnings has moved north by 18.2% to 13 cents per share over the past 60 days. RSVR shares have returned 36.2% in the past six-month period.
Delta Air Lines CEO Ed Bastian says oil prices will stay "sticky for longer," but the carrier will still do "just fine." He says there is still strong demand for premium and international travel.
Ford Motor Company (F - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned -5.7%, compared to the Zacks S&P 500 composite's +4.3% change. During this period, the Zacks Automotive - Domestic industry, which Ford Motor falls in, has gained 6.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Ford Motor is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of -5.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.64 for the current fiscal year indicates a year-over-year change of +50.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.83 indicates a change of +11.8% from what Ford Motor is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Ford Motor is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Ford Motor, the consensus sales estimate of $45.44 billion for the current quarter points to a year-over-year change of -3.2%. The $175.77 billion and $174.79 billion estimates for the current and next fiscal years indicate changes of +1% and -0.6%, respectively.
Last Reported Results and Surprise HistoryFord Motor reported revenues of $39.82 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $0.66 for the same period compares with $0.14 a year ago.
Compared to the Zacks Consensus Estimate of $39.34 billion, the reported revenues represent a surprise of +1.21%. The EPS surprise was +230%.
Over the last four quarters, Ford Motor surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Ford Motor is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ford Motor. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways Ford reached a tentative three-year Unifor deal covering more than 5,000 Canadian workers.Ford Pro grew EBIT by $376 million as software subscriptions jumped 30% to 879,000 in Q1.Ford targets recovering half of lost truck volume as Novelis ramps production in late 2026. Ford (F - Free Report) is heading into the back half of 2026 with one less risk on the table. It has announced a tentative three-year agreement with Unifor covering more than 5,000 Canadian workers, with talks centered on better pay, benefits and job protections. The deal still needs member ratification, but landing it well ahead of the Sept. 20 contract expiration matters. That takes strike risk off the table at a time when the auto industry is already grappling with the electric vehicle (EV) transition and shifting demand.
Ford is up 9% year to date, outpacing the industry’s loss over the same period. The stock has also outperformed its closest peers, General Motors (GM - Free Report) and Stellantis (STLA - Free Report) , which witnessed their shares decline over the same timeframe.
YTD Price Performance Comparison Image Source: Zacks Investment Research
The stock is trading at 8.05X forward earnings (at a huge discount relative to the industry), with a Value Score of A. Yes, there are a few challenges in Ford’s path, including losses in its EV business, ongoing recalls and tariff costs, but there are various factors working in favor of the stock.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Ford’s 2026 and 2027 EPS implies year-over-year growth of 50% and 12%, respectively. The consensus mark for 2026 and 2027 EPS has moved up over the past 60 days.
Image Source: Zacks Investment Research
Here are four key reasons why we are bullish on Ford stock.
Ford Pro Is the Key Growth EngineFord's commercial vehicle and services unit, Ford Pro, is turning into the company's most important segment. Even with wholesale volumes down 10% in the last reported quarter due to supply issues, the unit still grew EBIT by $376 million year over year and held an 11.4% margin — a sign the business is getting structurally stronger, not weaker. Software subscriptions jumped 30% year over year to 879,000 in the first quarter, and the ServiceTitan partnership is deepening Ford's digital lock-in with commercial customers. Management expects $6.5-$7.5 billion in EBIT from Ford Pro this year.
Ford Energy Adds a New Growth LegFord is building an energy storage business beyond vehicles. The company plans to invest $1.5 billion in 2026 toward 20 GWh of battery storage capacity by 2027, split across its Kentucky and Michigan facilities. This isn't just an EV side-project — it's a real attempt to diversify revenues using Ford's existing manufacturing scale. The unit landed its first major customer in May, a five-year battery storage supply deal with EDF Power Solutions North America.
Ford’s Novelis Supply Problem Is ResolvingA major drag on Ford's results has been the aluminum shortage caused by fires at supplier Novelis's Oswego, NY, plant, which supplies material for F-Series trucks. That disruption cost Ford roughly 100,000 trucks in 2025 and around $2 billion in losses. The good news is that Novelis restarted operations at Oswego last month, and Ford is targeting recovery of about half the lost truck volume as production ramps in the second half of 2026. Both Ford Pro and Ford Blue should benefit as truck output normalizes.
Ford’s Balance Sheet StrengthFord closed the first quarter of 2026 with $22 billion in cash and $43.1 billion in total liquidity— a strong cushion while it funds EV development, energy storage and software simultaneously. That gives management room to execute even if the macro backdrop worsens. On top of that, Ford's dividend yield sits above 4%, more than triple the S&P 500 average, boding well for income investors.
Last WordFord's story is shifting from a legacy automaker weighed down by EV losses to a diversified industrial platform with real margin drivers. Labor stability, a recovering supply chain, and two emerging high-margin businesses in Ford Pro and Ford Energy give the stock multiple paths to upside that the market hasn't fully priced in. Trading at a steep discount to the industry while paying a 4%+ dividend, Ford offers a rare combination of value, growth and income. We recommend buying Ford stock at current levels.
The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Begins trading on Nasdaq under the ticker symbol “GFUZ” July 13, 2026 11:00 ET | Source: General Fusion
VANCOUVER, British Columbia, July 13, 2026 (GLOBE NEWSWIRE) -- General Fusion Group Ltd. (“General Fusion” or the “Company”) (NASDAQ: GFUZ), a leader in the global race to commercialize fusion energy, today began trading on the Nasdaq under the ticker symbol “GFUZ,” following the completion of its previously announced business combination with Spring Valley Acquisition Corp. III (“Spring Valley”).
General Fusion is entering the public markets with approximately US$150 million in cash, inclusive of net transaction proceeds from the private placement and trust capital, to advance its practical fusion energy technology. This capital is expected to fund General Fusion’s Lawson program through several key technical milestones, which the Company aims to complete in 2028, with the goal of demonstrating and de-risking its Magnetized Target Fusion (“MTF”) technology in a commercially relevant way.
“At General Fusion, we are dedicated to our vision of bringing practical, clean, and abundant fusion energy to the world,” said Greg Twinney, Chief Executive Officer of General Fusion. “We bring more than 20 years of real-world testing, demonstration, and results to the development of commercial fusion energy. We are excited about this next chapter and grateful to Spring Valley and our shareholders for joining us in our commitment to this mission.”
General Fusion is advancing on multiple fronts, combining real technical progress with growing global recognition, experienced governance, and strategic collaboration:
Real machines, real results: Over the past two decades, General Fusion has built and operated dozens of testbeds, prototypes, and demonstrations, completing more than 200,000 plasma experiments. This work has culminated in Lawson Machine 26 (“LM26”), the Company’s MTF demonstration machine operating at a commercially relevant scale at its Vancouver facility. General Fusion recently announced significant progress toward its next major technical milestone with LM26, 1 keV electron temperature. The results show meaningful plasma heating to electron temperatures of approximately 8.4 million degrees Celsius, or 0.72 keV, driven by the compression of a plasma with a lithium liner. This is a key indicator of success for the Company’s practical approach to fusion energy. Global recognition: General Fusion was recently ranked first on TIME’s prestigious list of the World’s Top GreenTech Companies of 2026 for its leadership in fusion energy.Experienced Board of Directors: Building on General Fusion’s seasoned leadership, the Company announced key appointments to strengthen its Board of Directors. Wendy Kei, Board Chair of Ontario Power Generation, serves as Audit Committee Chair. Thomas Boehlert, former CFO of US Strategic Metals, brings more than three decades of experience across the industrial, natural resources, agribusiness, power generation, and energy transition sectors and serves as Chair of the Nominating and Governance Committee. Chris Sorrells, Chairman and CEO of Spring Valley and a former partner at NGP Energy Technology Partners, also joined the Board, bringing more than three decades of experience in the energy and decarbonization sectors.Collaboration for fusion deployment: General Fusion and Renexia S.p.A., a Toto Group company specializing in renewable energy, announced a milestone-based framework agreement to collaborate on the potential commercial deployment of the Company’s fusion energy technology in Italy. Quick Facts:
General Fusion’s MTF is designed to solve significant barriers to commercializing fusion energy at a time when electricity demand is surging and nations around the world are racing to commercialize fusion power.
As a technology, MTF aims to achieve fusion in a practical and economical way, avoiding superconducting magnets and high-powered lasers while enabling the use of existing materials for durable machines.
In early 2025, General Fusion announced that it had designed, built, and begun operating its LM26 fusion demonstration machine in under two years. LM26 is the first MTF demonstration machine to be built at a commercially relevant scale. It mechanically compresses plasma with a lithium liner at 50% commercial-scale diameter, based on current design parameters.
LM26 aims to achieve key fusion technical milestones: plasma heating to 1 keV (10 million degrees Celsius), then 10 keV (100 million degrees Celsius), and ultimately the Lawson criterion, the combination of fusion parameters that can produce net fusion energy in the plasma. About General Fusion
General Fusion is pursuing a practical approach to commercial fusion energy and is headquartered in Vancouver, Canada. The Company was established in 2002 and has been funded by a global syndicate of leading energy venture capital firms, industry leaders, and technology pioneers. Learn more at www.generalfusion.com.
Certain statements included in this document are not historical facts but are forward-looking statements within the meaning of the U.S. federal securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical facts contained in this news release are forward-looking statements. Any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are also forward-looking statements. In some cases, you can identify forward-looking statements by words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “strategy,” “future,” “opportunity,” “may,” “target,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” “preliminary,” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements include, without limitation, statements regarding the outlook for the business of General Fusion, including its ability to commercialize MTF or any other fusion technology on its expected timeline or at all; the net proceeds available to the Company, and statements regarding the current and expected results of the LM26 program; as well as any information concerning possible or assumed future results of operations or financial position of the Company.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of the Company. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that the Company is unable to maintain the listing of its securities on Nasdaq; the risk that the price of the Company’s securities may be volatile due to a variety of factors outside of the Company’s control, the risk that the Company never generates revenue, the risk that the Company fails to commercialize MTF on a cost-effective basis, on the expected timeline or at all, the risk that the Company fails to achieve the objectives of the LM26 program, the risk that additional capital needed by the Company may not be raised on favorable terms, or at all, including as a result of the restrictions agreed to in connection with the private placement the Company closed on July 10, 2026; the risk that fusion energy does not gain public acceptance, the risk that the scientific and technical assumptions upon which MTF technology is based do not prove to be correct, the risk that our competitors develop viable fusion technology sooner than we do, the risk of supply chain disruptions, the risk that key technical material and service inputs may not be available when required on reasonable terms or at all, the risk that we are unable to attract and retain qualified personnel with highly technical expertise, the risk that we are subject to negative publicity, the risk that our assessment of the total addressable market for fusion energy is incorrect, the risk of changes in the laws and regulations governing the Company’s research and development activities and in the regulation of fusion energy; the risk of fluctuations in currency markets; the risk that the Company is unable to complete and successfully integrate any future acquisitions; the risk of increased competition in the fusion industry; the risk of accidents, earthquakes, fires, floods and other natural disasters, the risk that our information technology fails, the risk that our operating expenses are materially higher than forecast, the risk that we are unable to remediate material weaknesses in our internal controls or identify additional material weaknesses in the future, the risk that we are unable to adequately protect or enforce our intellectual property rights, the risk of third-party claims that we are infringing or violating another person’s intellectual property rights, the risk that our intellectual property applications are not granted, the risk of a cyber event or privacy breach resulting in an interruption in operations or financial loss, the risk that government reduces or delays funding of government programs in which we participate, the risk that future sales by existing shareholders could cause our stock price to decline, and the risk that we are unable to establish and maintain effective internal controls to produce accurate and timely public disclosure.
These forward-looking statements are based on certain assumptions, including that none of the risks identified above materialize; that there are no unforeseen changes to economic and market conditions, and that no significant events occur outside the ordinary course of business.
The foregoing list is not exhaustive, and there may be additional risks that the Company does not know or currently believes are immaterial. You should carefully consider the foregoing factors, any other factors discussed herein and in the other filings by the Company with the U.S. Securities and Exchange Commission, including those described under the heading “Risk Factors.” The Company does not undertake to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required in accordance with applicable laws.
Investor Relations Contact:
You can contact General Fusion’s Investor Relations team by email at: [email protected].
If you are based in North America, you may also leave a toll-free voicemail at +1 (833) 717-1519. Callers outside North America can reach us at +1 (236) 253-6968.
GE Aerospace stock has rallied strongly over the past year, gaining about 43% as robust demand for commercial aviation and sustained defense spending in the United States and other key markets continued to support growth. The stock was trading at around $359 in pre-market trading, with investors awaiting the company's earnings report for fresh insight into its financial performance and whether it can justify its premium valuation.
GE Aerospace, one of the biggest industrial companies in the United States, has done well in the past few years, helped by its growing market share in the civil aviation and defense spending in the US and other allied countries.
The company will publish its financial results later this week, shedding more color on its business during the quarter. Data compiled by Yahoo Finance shows that the average estimate among analysts is that its revenue jumped by 16.7% in the second quarter to $11.85 billion.
Analysts also suspect that earnings per share (EPS) is expected to jump to $1.85 from the previous $1.66. Historically, the company has a long track record of doing better than what analysts expect.
Most notably, GE Aerospace’s annual revenue is expected to continue growing, with the annual figure expected to come in at $48.8 billion, followed by $53.76 billion next year.
A potential catalyst for the company is that it received some orders during President Donald Trump's trip to China. Chinese companies ordered 200 Boeing aircraft and related equipment, with many of them being powered by CFM, a joint venture of GE and Safran.
Valuation concerns remain A major concern among analysts and investors is that the company has become highly overvalued, with most metrics being much higher than other companies, including fast-growing companies like NVIDIA, AMD, and Micron.
SeekingAlpha data shows that the company has a forward price-to-earnings ratio of 47, higher than the sector median of 20. Including growth, the forward PEG ratio is 3.14, also higher than the sector median of 1.68.
The same valuation figure is also visible when using the discounted free cash flow (DCF) approach. A report by Simply Wall St. estimates that the company’s fair value is $248, meaning that it is 44.6% overvalued.
As such,the company will need to provide strong revenue, earnings, and backlog numbers to justify the valuation.
Analysts are largely optimistic about the company, with Susquehanna’s Charles Minervino hiking the target from $380 to $430. Sheila Kahyaoglu, a top analyst from Jefferies, hiked the target from $365 to $455, while Citigroup hiked to $431.
GE Aerospace stock chart | Source: TradingView
The daily chart shows that the GE Aerospace stock jumped to a high of $383 on July 2nd, and then pulled back to the current $359.
This price remains slightly above the important support of $347, its highest point on February 24. It was the upper side of the cup-and-handle pattern, a common bullish continuation sign in technical analysis.
Therefore, the most likely scenario is where the stock drops and retests the support at $347, and then resumes the uptrend. In the future, despite the valuation concerns, the stock may jump to the key resistance level of $400.
READ MORE: GE stock falls 4% despite earnings beat on fuel costs, weak outlook
Analysts on Wall Street project that GE Aerospace (GE - Free Report) will announce quarterly earnings of $1.86 per share in its forthcoming report, representing an increase of 12.1% year over year. Revenues are projected to reach $11.86 billion, increasing 16.8% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain GE metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Total Revenues- Commercial Engines & Services' to come in at $9.13 billion. The estimate points to a change of +14.2% from the year-ago quarter.
The combined assessment of analysts suggests that 'Total Revenues- Defense & Propulsion Technologies' will likely reach $3.19 billion. The estimate suggests a change of +24.6% year over year.
The consensus among analysts is that 'Segment profit- Defense & Propulsion Technologies' will reach $389.93 million. The estimate compares to the year-ago value of $362.00 million.
The consensus estimate for 'Segment profit- Commercial Engines & Services' stands at $2.43 billion. The estimate compares to the year-ago value of $2.23 billion.
View all Key Company Metrics for GE here>>>
Over the past month, shares of GE have returned +7.2% versus the Zacks S&P 500 composite's +4.3% change. Currently, GE carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. GE Aerospace (GE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
GE Aerospace is a member of our Aerospace group, which includes 77 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. GE Aerospace is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for GE's full-year earnings has moved 0.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, GE has moved about 16.6% on a year-to-date basis. At the same time, Aerospace stocks have gained an average of 2.4%. This means that GE Aerospace is performing better than its sector in terms of year-to-date returns.
Another stock in the Aerospace sector, Curtiss-Wright (CW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 36.9%.
For Curtiss-Wright, the consensus EPS estimate for the current year has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, GE Aerospace belongs to the Aerospace - Defense industry, a group that includes 39 individual stocks and currently sits at #100 in the Zacks Industry Rank. On average, stocks in this group have lost 0.6% this year, meaning that GE is performing better in terms of year-to-date returns.
Curtiss-Wright, however, belongs to the Aerospace - Defense Equipment industry. Currently, this 37-stock industry is ranked #58. The industry has moved +9.6% so far this year.
Investors interested in the Aerospace sector may want to keep a close eye on GE Aerospace and Curtiss-Wright as they attempt to continue their solid performance.
GE Aerospace (NYSE:GE | GE Price Prediction) is having a moment. The stock is up 16.95% year to date through July 10, 2026, orders nearly doubled last quarter, and every aviation Twitter thread seems to end with someone kicking themselves for not buying it at $250. Maybe that someone is you.
Relax. You didn’t miss anything.
Over the exact same stretch, the Industrial Select Sector SPDR Fund (NYSEARCA:XLI), a plain-vanilla industrials ETF, actually edged GE. XLI returned 17.89% from December 31, 2025 through July 10, 2026. Same window, better number, no need to stare at one ticker every morning.
Same Window, Same Story From the last trading day of 2025 through July 10, 2026, GE Aerospace climbed 16.95%. XLI climbed 17.89%. The fund quietly finished a nose ahead of the stock.
A hypothetical $10,000 in XLI on New Year’s Eve turned into roughly $11,789 by the second week of July. No earnings-day white knuckles. No obsessive checking of the ex-dividend calendar. Just a broad basket of industrial companies doing what they do.
The Rising Tide Under Both Here is the part that matters. GE Aerospace did not sprint on its own. It is riding a full-blown commercial aerospace supercycle, defense budgets are expanding, and the wider industrial complex is in the middle of a capex, reshoring, and aftermarket-services boom. Aging engine fleets need MRO work, LEAP deliveries are hitting records, and widebody renewals are stacking up backlogs.
That is an industrials story at its core. The company happens to be one of the biggest and cleanest expressions of it, which is why revenue jumped 24.7% year over year last quarter and orders grew 87%. CEO Larry Culp put it plainly on the April call: “GE Aerospace had a strong first quarter with orders growing 87% and revenue up 29% supporting double-digit growth in earnings and free cash flow.”
XLI, for its part, tracks the Industrial Select Sector Index, a basket of roughly 70 industrial names pulled from the S&P 500. Aerospace and defense, machinery, railroads, logistics, building products. When the tide behind GE lifts, this fund floats with it, because the tide is the sector.
The Real Trade-Off Yes, in some parallel window, GE could have run away from the pack. Individual stocks do that. GE’s one-year return of 42.97% smokes XLI’s 22.23% over the trailing 12 months. Single names can and do stretch further than the sector.
They can also collapse. Boeing spent years reminding investors what an aerospace “sure thing” looks like when the wheels come off. A safety issue, a labor strike, a botched delivery target, and a stock that everyone was piling into becomes the one everyone is trying to explain away. Concentration cuts both ways, and it cuts hard on the way down.
XLI spreads that risk across roughly 70 holdings for a 0.08% expense ratio, which is about as cheap as diversification gets. You gave up the chance to brag about picking GE at $250. You also gave up the chance to explain to your spouse why you put the college fund in one aerospace ticker.
Process Beats Prediction The FOMO framing is that hot stocks are a puzzle you were supposed to solve. The reality is that the puzzle solves itself if you own the theme. GE is trading around 44 times earnings with a forward multiple of 48, and it is a great business, but you did not have to hand pick it to participate in what its industry is doing right now.
Chasing tickers is stock picking with extra regret attached. Owning the sector is what most of us actually signed up for when we said we “believe in industrials.” Next time a name goes vertical on your feed, before you feel the pang, check what the sector fund did. You may find you were already there.
Process over prediction. Every time.
Contact [email protected] for any questions or corrections.
Key Takeaways Verizon will provide 5G Standalone and LTE connectivity for newly built BMW Group vehicles in the U.S.VZ's network will support ConnectedDrive with telematics, infotainment and secure data transmission.Verizon expands its automotive portfolio through a stronger KDDI partnership and 5G Standalone rollout. Verizon Communications (VZ - Free Report) has partnered with KDDI Corporation (KDDIY - Free Report) to provide connectivity for newly manufactured BMW Group vehicles in the United States. The agreement strengthens the company’s position in enterprise wireless services while expanding its presence in the connected vehicle market.
Under the agreement, Verizon will provide 5G Standalone and LTE connectivity for new BMW, MINI and other BMW Group vehicles in the United States, supporting the automaker's ConnectedDrive platform. Its nationwide 5G infrastructure will power advanced telematics, remote functions, digital infotainment and app-based services. In collaboration with KDDI's Global Communications Platform, Verizon’s network will ensure secure, reliable data transmission, helping the automaker efficiently manage its vehicle connectivity services.
The collaboration also introduces Verizon's nationwide 5G Standalone offering for connected vehicles. Newly manufactured BMW Group vehicles will be the first to operate on the platform, powered by its 5G core and built-in 3GPP Release 16 industry standards. It further strengthens Verizon’s long-standing relationship with KDDI and expands its automotive portfolio, which includes telematics services for Volkswagen Group brands.
As vehicles become increasingly software-driven, Verizon's advanced wireless network capabilities are expected to enable connected services, real-time communication and next-generation mobility solutions.
How Are Competitors Advancing in the Automotive Industry?Verizon faces stiff competition from AT&T, Inc. (T - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . AT&T has expanded its automotive business by bringing 5G connectivity to Rivian's upcoming R2 electric vehicle. The company has partnered with Mitsubishi Motors to bring 5G connectivity to the Outlander. AT&T continues to expand its Connected Car platform, helping automakers deliver seamless in-vehicle connectivity, infotainment and digital services through its 5G network.
T-Mobile is strengthening its presence in the automotive sector with 5G and IoT solutions for connected vehicles. The company works with automakers to support telematics, over-the-air software updates, and in-car infotainment through its nationwide 5G network. T-Mobile is advancing its 5G Standalone technology to enable faster and more reliable connectivity for future vehicles.
VZ’s Price Performance, Valuation & EstimatesVerizon’s shares have gained 1.3% over the past year compared with the industry’s 94.8% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.24, below the industry average of 47.66.
Image Source: Zacks Investment Research
Earnings estimates for 2026 and 2027 have remained static at $4.96 and $5.25 per share, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Home Depot (HD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this home-improvement retailer have returned +4.5% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Retail - Home Furnishings industry, to which Home Depot belongs, has gained 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Home Depot is expected to post earnings of $4.71 per share, indicating a change of +0.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $15.01 points to a change of +2.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $16.21 indicates a change of +8% from what Home Depot is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Home Depot is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Home Depot, the consensus sales estimate for the current quarter of $47.5 billion indicates a year-over-year change of +4.9%. For the current and next fiscal years, $171.65 billion and $178.54 billion estimates indicate +4.2% and +4% changes, respectively.
Last Reported Results and Surprise HistoryHome Depot reported revenues of $41.77 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $3.43 for the same period compares with $3.56 a year ago.
Compared to the Zacks Consensus Estimate of $41.49 billion, the reported revenues represent a surprise of +0.67%. The EPS surprise was +0.88%.
Over the last four quarters, Home Depot surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Home Depot is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Home Depot. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Key Takeaways McDonald's shares are down 9.1% year to date and trade nearly 20% below their 52-week high.McValue helped win back some lower-income customers and lift market share across nearly all top markets.Cost inflation, falling lower-income traffic and weak U.S. restaurant margins may limit near-term upside. Shares of McDonald's Corporation (MCD - Free Report) have lost 9.1% year to date against the Zacks Retail - Restaurants industry's 3.5% rise. The stock closed at $274.60 on Friday, nearly 20% below its 52-week high of $341.75 (attained on March 2, 2026). Meanwhile, the S&P 500 has advanced 11.5% year to date, highlighting MCD’s sharp underperformance relative to the broader market.
The pullback has brought the stock’s valuation to a more moderate level, drawing attention to whether the current discount provides an attractive entry point.
McDonald’s retains several structural advantages, including global scale, strong brand recognition, a predominantly franchised business model and a substantial restaurant-development pipeline. However, continued pressure on lower-income consumers, elevated operating costs and weaker profitability at U.S. company-operated restaurants temper the near-term investment case.
MCD YTD Price Performance
Image Source: Zacks Investment Research
MCD Stock Trades at a DiscountMcDonald’s is trading at a forward 12-month price-to-earnings ratio of 20.28, below the Zacks industry multiple of 23.01. This represents a discount of nearly 12% to the industry.
The lower multiple provides a more favorable valuation framework for investors seeking exposure to a globally scaled restaurant operator. However, the discount alone does not make MCD an outright buy. Consumer pressure, franchisee profitability and U.S. company-operated restaurant performance remain important considerations when assessing the stock.
MCD P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The key question is whether McDonald’s value strategy, menu innovation and international expansion can support traffic and earnings growth despite pressure on restaurant-level economics. Let us examine the factors shaping the investment case.
McDonald’s Value Strategy Supports Its Competitive PositionValue and affordability remain central to McDonald’s customer strategy. In the United States, the company expanded the McValue platform to include an everyday affordable-price menu featuring individual items below $3 and a $4 breakfast meal. These offerings complement the existing $5 McChicken and $6 McDouble meal deals.
The platform combines entry-level prices with bundled meal options across dayparts. McDonald’s stated that an effective value architecture requires both components: individually priced items for budget-conscious consumers and meal bundles centered on core menu offerings. The company has applied a similar approach across most of its major international markets. The United Kingdom offers Meal Deal Plus, while Germany’s McSmart platform and Australia’s McSmart Meals and Loose Change menu provide locally tailored value options.
McDonald’s reported improved value and affordability perceptions following these initiatives. The company also indicated that its value platform helped recapture some lower-income customers and supported market-share gains across nearly all of its top 10 markets.
MCD’s Marketing and Beverage Push Drive Customer EngagementMcDonald’s is pairing its value platform with culturally relevant marketing and focused menu innovation. Campaigns tied to Friends, The Super Mario Galaxy Movie and KPop Demon Hunters demonstrate the company’s ability to develop promotions for different customer groups and scale selected concepts across its global system.
The FIFA World Cup provides another major marketing platform. McDonald’s has maintained a relationship with the tournament for more than three decades and has planned promotional activity across the United States, Canada and Mexico for the 2026 event.
Beverages are also becoming a more prominent part of the company’s menu strategy. McDonald’s has introduced refreshers and crafted sodas under the McCafe brand in the United States, while Germany and Canada have launched beverage platforms of their own. The company also plans to introduce additional flavors and Red Bull-infused energy drinks later in the year.
McDonald’s Restaurant Expansion Extends Its Growth RunwayRestaurant expansion remains a key component of McDonald’s long-term strategy. The company continues to target approximately 50,000 restaurants by the end of 2027. China is expected to account for a significant portion of development activity. McDonald’s remains on track to open approximately 1,000 restaurants in the market during 2026.
At the same time, the company is maintaining a returns-focused approach to capital deployment. McDonald’s is reassessing parts of its development pipeline as supply-chain disruption and higher construction costs affect project economics. The company has emphasized that development decisions will depend on expected returns for both McDonald’s and its franchisees rather than the pursuit of an absolute unit-growth target.
MCD’s Concerns: Lower-Income Traffic & Cost InflationThe lower valuation is not without cause. McDonald’s expects second-quarter comparable-sales growth in the United States and International Operated Markets to decelerate meaningfully from the first quarter. April comparable sales were slightly negative in both segments as the company lapped the highly successful Minecraft promotion from the prior year.
Consumer conditions also remain uncertain. Higher-income customers continue to spend at resilient levels, but visits from lower-income consumers are still declining. Elevated gasoline prices and broader inflationary pressure could further constrain discretionary spending among this group, despite McDonald’s improving value perception.
Profitability presents another concern. McDonald’s described its U.S. company-operated restaurant margins as unacceptable. The weakness was tied partly to additional labor investment and restrained menu pricing. The company is evaluating whether certain restaurants would generate stronger returns under franchisee ownership.
Franchisee profitability is also under pressure from beef inflation and other operating costs. McDonald’s expects low- to mid-single-digit food and paper inflation in the United States and mid-single-digit inflation across International Operated Markets. Although hedging and supplier relationships should help the company manage 2026 pressures, cost inflation could intensify toward the end of 2026 and into 2027.
MCD's Competitive Landscape Remains IntenseMcDonald’s operates in a competitive restaurant market, with peers investing in value, menu innovation, loyalty and unit expansion. Chipotle Mexican Grill, Inc. (CMG - Free Report) is advancing restaurant execution, rewards engagement and menu innovation, while Starbucks Corporation (SBUX - Free Report) is strengthening service, beverage platforms and digital frequency through its Back to Starbucks plan. Shake Shack Inc. (SHAK - Free Report) is also expanding its premium menu, technology capabilities and restaurant footprint.
McDonald’s global scale, franchise network and established value platform remain important advantages. Nonetheless, continued execution across McValue, beverages and chicken will likely be necessary to sustain traffic and market share as competitors increase investment across similar growth areas.
MCD Stock Valuation InsightsOver the past 60 days, the Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) has declined 0.7%. During the same period, Starbucks’ estimate has increased 0.4%, while Shake Shack’s estimate has fallen 7.3%. The consensus estimate for Chipotle’s EPS has remained unchanged at $1.13 in the same time frame.
MCD’s Earnings Estimate Trend
Image Source: Zacks Investment Research
Is It Time to Buy MCD Stock?McDonald’s recent underperformance has brought its valuation below the industry average, but the discount does not signal a clear near-term earnings inflection. The company’s scale, brand strength, franchise-heavy model and value-led strategy continue to support market-share resilience and long-term stability, justifying a Zacks Rank #3 (Hold) stance for existing investors. However, persistent pressure on lower-income traffic, elevated cost inflation, weaker U.S. company-operated restaurant margins and intense competition may constrain upside in the near term.
With valuation more attractive but operating visibility still limited, MCD’s risk-reward profile appears balanced at current levels. Long-term investors may remain invested, supported by the company’s durable business model and global development runway. Prospective investors may remain selective, given the balanced risk-reward profile and limited near-term earnings visibility.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Starbucks (SBUX +2.02%) has decided it can build better software than Microsoft (MSFT +1.55%) and IBM (IBM +1.65%). If nothing else, it wants to save costs with a homemade version of some high-priced enterprise software platforms.
That is either visionary cost-cutting or a case study in corporate hubris waiting to happen.
According to an internal Starbucks presentation reviewed by Bloomberg News, the coffee chain is developing AI-powered tools to replace a Microsoft inventory-tracking system and an IBM maintenance management platform. Starbucks spends about $400 million a year on software, and Chief Technology Officer Anand Varadarajan told employees there are "clear opportunities to reduce the spend."
The market took notice. Microsoft fell 2.4% and IBM dropped 5.2% as the Bloomberg article was published on Thursday morning. Starbucks rose more than 3% on the potentially cost-saving news. Toast (TOST +2.93%) shares enjoyed a short-lived 2.3% spike at the same time.
Image source: Getty Images.
The "we'll just build it ourselves" phase Every company goes through this. The software bills pile up, someone in the C-suite discovers that AI can write code now, and suddenly the business plan includes "proprietary platform development."
But easier to build does not mean easier to maintain. Enterprise-scale systems require ongoing security updates, integration work, and dedicated engineering headcount. Starbucks recently gave up on an AI-powered inventory tracking system and reverted to manual asset counts. That's a stark reminder that internal development comes with its own failures and costs.
To be fair, Starbucks has the scale and resources to pull this off. The grand cost-cutting plan aims to slash annual costs by more than $2 billion, and software is just a small part of this effort.
The long-term question is whether companies that pursue in-house AI builds will eventually seek out modern, vertically integrated platforms once the maintenance burden rears its ugly head.
That's where Toast comes in.
Toast is playing a different game Toast operates a cloud-based platform for restaurants that combines point-of-sale hardware, payment processing, and operational software. Wherever data or software is involved in running a single restaurant or a whole chain, Toast has integrated that issue into its comprehensive system.
The company ended Q1 2026 with 171,000 live locations, up 22% year over year, and has been expanding aggressively into enterprise accounts. Recent wins include Hungry Howie's (500 units), Papa Murphy's, and Preferred Hotels.
"We continue to see strong growth, and with the pipeline in front of us, I am confident enterprise will be a meaningful growth driver for years to come," CEO Aman Narang said in May's Q1 earnings call. "For 14 years, we have evolved from a point-of-sale solution into a comprehensive system of record, helping customers manage operations, employees, guests, and suppliers."
Image source: The Motley Fool.
Why the Starbucks situation matters for Toast investors Toast is not going to win the Starbucks account tomorrow, and probably not ever. Starbucks has a firmly established mobile app, a massive loyalty program, and the kind of global complexity that would make any outside vendor nervous. Maybe it takes a giant like IBM or Microsoft to handle the chain's inventory management.
But the Starbucks news highlights two dynamics that seem to favor specialists like Toast over the long term:
Legacy software vendors are vulnerable. Oracle (ORCL 4.30%) Simphony, the point-of-sale (POS) system Starbucks has been trying to replace for years, represents the kind of modular enterprise software that can be replaced. Large enterprises are willing to spend to solve operational pain points. The $400 million Starbucks spends annually on software represents the scale of tech operations budgets that could eventually flow to modern third-party platforms. Right now, that experiment is AI-assisted in-house development. In a few years, when the maintenance bills arrive and the original developers have moved on, some of those companies should start shopping for integrated platforms built by specialists. You know, with built-in support and maintenance contracts.
That is where Toast wants to be. The company has been embedding AI throughout its operations in recent years. As a result, Toast's engineering velocity (aka software development efficiency) is up 60%, and AI now handles 40% of customer support interactions. Toast IQ, the company's analytics and agent platform, has 40,000 weekly active locations. Pilot users of its AI marketing agent reported an 8% average increase in sales.
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The investment case The stock trades at about 45 times trailing earnings, which is not exactly cheap. But Toast has been profitable since 2024, has grown revenue at least 24% every year for the past six years, and just posted 21% GAAP operating margins.
The Starbucks news is not necessarily a reason to buy Toast today. But investors should watch the enterprise software market and consider which companies are positioned to benefit when the in-house AI experiments run their course.
Toast has a seat at that table. Whether it gets served remains to be seen.
Royal Caribbean Cruises Ltd. RCL is currently trading at a discount compared with the Zacks Leisure and Recreation Services industry, the broader Zacks Consumer Discretionary sector and the S&P 500 Index, with a forward 12-month price-to-earnings (P/E) ratio of 15.29X.
HOUSTON--(BUSINESS WIRE)--HPE (NYSE: HPE) today announced the publication of its 11th annual Living Progress Report, detailing the company’s Fiscal Year 2025 (FY25) progress against its Living Progress strategy. The report highlights how HPE enables customers to operate effectively as rising demand for compute-intensive workloads like AI place greater pressure on energy, resources, regulation, and trust.
Living Progress is HPE's business strategy to advance the way people live and work, by embedding responsible business practices across its value chain. The report shows how these efforts are translating into customer value, from minimizing energy use and infrastructure complexity to strengthening cyber resilience, data visibility, and trust.
“AI is transforming enterprises around the world at a pace unlike any technology before it,” said Antonio Neri, president and CEO of HPE. “The success of the next phase of AI adoption will depend on organizations’ ability to use creativity and focus to deploy AI securely, efficiently, and responsibly at scale. HPE is helping customers confidently build trusted technology that protects data, navigates complexity, and turns innovation into real outcomes, unlocking opportunities that were just not possible a few years ago.”
Advancing responsible technology
As AI adoption accelerates, customers need greater confidence that the technologies they deploy are secure, reliable, efficient, and governed responsibly. In FY25, HPE strengthened internal product and governance approaches and continued to mature its AI Governance model through internal risk assessments, an AI Governance and Enablement Hub, and targeted team member training, including on the company’s AI Ethical Principles.
HPE also advanced responsible solutions for customers, like HPE Private Cloud AI and HPE Private Cloud Enterprise air-gapped solutions, which support secure, disconnected deployments for sensitive workloads.
These capabilities are increasingly important as organizations deploy AI in highly regulated and security-sensitive environments. For instance, Siemens Energy is deploying a dedicated global platform through HPE’s GreenLake platform to support engineering-driven high-performance computing across sites in the United States and Germany. The platform is designed to accelerate AI-enabled simulation and digital twin workflows while helping Siemens Energy maintain oversight of data and systems under strict export control requirements. It demonstrates how AI can be deployed responsibly in critical industries such as energy, where demand for new infrastructure is rising rapidly.
Growing demand for energy efficient IT solutions
Demand for HPE’s IT sustainability-related offerings keeps increasing as customers continue to evaluate infrastructure decisions through the combined lens of performance, cost, energy use, and resilience. In FY25, $4.4 billion of total net revenue reflected customers' propensity to purchase products with sustainability attributes after learning about HPE's IT sustainability offerings and expertise.
Energy efficiency and resilience are key challenges facing customers today. HPE’s solutions deliver the performance customers need while aiming to minimize the energy and resources required to run their IT estates.
New generations of compute and storage, such as HPE ProLiant Compute Gen12 servers, can reduce data center footprints by up to 96% and use up to 87% less power compared to earlier generations.1 HPE Alletra Storage MP B10000 has also been shown to deliver up to a 45% reduction in energy consumption.2 And, across its networking portfolio, HPE’s AI-driven automation and analytics, including HPE Mist Networking Data Center Assurance, are optimizing operations with real-time power and carbon visibility to reduce unnecessary energy consumption.
In addition, HPE also expanded the use of direct liquid cooling (DLC) to support higher-density AI and high-performance computing workloads across its portfolio, including HPE ProLiant Compute and HPE Cray systems, helping minimize cooling-related carbon footprint and costs for customers by up to 86% annually.3 In high-performance computing, HPE had four systems ranked in the top 10 Green500 list of the world’s most energy-efficient supercomputers.
One of those systems is Isambard-AI, built by HPE for the University of Bristol. The UK’s most powerful AI supercomputer and ranked fourth most energy-efficient in the world as of 2026, Isambard-AI was delivered through an HPE modular data center that achieved an estimated 72% reduction in facility construction emissions compared with traditional construction methods. The system is helping UK researchers access advanced AI capabilities sooner, accelerating work across drug discovery, climate research, and industry.
In addition, HPE has built an end-to-end supply chain- from sourcing to manufacturing to delivery, installation, and servicing- that prioritizes energy and resource efficiency. And, through HPE Financial Services, customers can extend asset life, recover value, and modernize more sustainably.
Sustainability leadership recognitions
HPE continues to receive external recognition tied to its sustainability, ethics, and workforce efforts. HPE was recognized in Fortune’s 100 Best Companies to Work For list for the 5th year in a row. HPE also made CDP’s Climate A-List and received the EcoVadis Platinum Medal – putting it in the top 1% of companies with the highest sustainability performance. Reflecting its efforts to operate responsibly, HPE was named by Ethisphere as one of the World’s Most Ethical Companies for the 8th consecutive year and ranked #2 against the 45 largest global Information and Communications Technology (ICT) companies in the 2025 KnowTheChain ICT Benchmark.
To learn more and read the full FY25 Living Progress Report, visit: https://www.hpe.com/us/en/living-progress/report.html
About HPE
HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.
HPE (NYSE: HPE) today announced the publication of its 11th annual Living Progress Report, detailing the company's Fiscal Year 2025 (FY25) progress against its
Qualcomm (QCOM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this chipmaker have returned -10.7% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Electronics - Semiconductors industry, to which Qualcomm belongs, has gained 7.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Qualcomm is expected to post earnings of $2.21 per share for the current quarter, representing a year-over-year change of -20.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The consensus earnings estimate of $10.77 for the current fiscal year indicates a year-over-year change of -10.5%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.96 indicates a change of +1.8% from what Qualcomm is expected to report a year ago. Over the past month, the estimate has changed +1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Qualcomm is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Qualcomm, the consensus sales estimate of $9.7 billion for the current quarter points to a year-over-year change of -6.5%. The $42.62 billion and $43.55 billion estimates for the current and next fiscal years indicate changes of -3.4% and +2.2%, respectively.
Last Reported Results and Surprise HistoryQualcomm reported revenues of $10.6 billion in the last reported quarter, representing a year-over-year change of -2.2%. EPS of $2.65 for the same period compares with $2.85 a year ago.
Compared to the Zacks Consensus Estimate of $10.62 billion, the reported revenues represent a surprise of -0.19%. The EPS surprise was +3.11%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Qualcomm is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Qualcomm. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On Episode 438 of the Retire SMART Podcast, titled “Political Insider Trading,” the host laid out a frustration that cuts across party lines: “I’d go to jail if I traded on inside information. I’d lose my license. I’d get fined. Yet Congress does this all the time.”
The numbers behind that frustration are hard to wave away.
The episode cited an analysis of publicly disclosed congressional stock trades. it found that 56% of trades, or 6,170 of 11,016 total purchases over 16 months, involved companies in industries or sectors those same members were about to vote on. The marquee example was Representative Ro Khanna of San Jose, California. Khanna is described as “the most active trader in Congress,” with more than 4,900 stock trades in the past year. And a net worth that grew from roughly $800,000 when he first ran for office to over $30 million.
What the Latest Filings Actually Show The pace has not slowed. Between March 31 and July 2, 2026, House members filed 84 trades. The most recent transaction is dated June 16, 2026. Representative Daniel Meuser of Pennsylvania filed five separate partial sales of NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) stock during that window. The chipmaker has remained central to every AI export-control debate on Capitol Hill.
Representative Sara Jacobs, who sits on the House Armed Services and Foreign Affairs Committees, disclosed a $500,001 to $1,000,000 partial sale of QUALCOMM (NASDAQ: QCOM) stock on May 6, 2026. The chipmaker is deeply entangled in the same semiconductor and China export-policy fights that those committees oversee. Representative Chip Roy of Texas reported a $100,001 to $250,000 partial sale of Atlas Energy Solutions (NYSE: AESI) on May 13, 2026. The company is a Texas frac-sand producer directly exposed to federal energy and public-lands policy.
The STOCK Act permits lawmakers up to 45 days to disclose. Meuser’s May 27 sale was not filed until July 2, a 36-day gap. Jacobs’s much larger Qualcomm trade cleared in 14 days. By the time the public sees the trade, the associated vote is often already in the rear-view mirror.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The Nebraska Reform Push The podcast highlighted a reform effort out of Nebraska. Senator Pete Ricketts introduced the Stop Insider Trading Act in the Senate, and Senator Deb Fischer signed on as a cosponsor in March 2026. The House companion, carried by Chairman Bryan Steil of the Committee on House Administration, would prohibit members, spouses, and dependent children from purchasing individual publicly traded stocks. Diversified funds and qualified blind trusts would still be permitted.
Dozens of similar bills have piled up in the 119th Congress. The host’s plea to “stop this left versus right” framing and apply “logic and common sense” captures why the issue keeps surviving election cycles even when the legislation stalls in committee.
Using the Data as an Investor Signal For individual investors, congressional trading disclosures are a public dataset worth watching. They map where regulatory attention is concentrating, even when they reveal nothing about what any given lawmaker privately knows. When a committee member repeatedly trims a position in a sector their subcommittee oversees, that is worth noting. When multiple members across parties rotate out of the same industry in the same month, that is worth noting.
Two practical habits: track the House Clerk disclosure portal directly rather than through second-hand summaries. Pair any political trade signal with the underlying company’s own filings. The SEC’s EDGAR system lets you line up a lawmaker’s timing against a company’s 8-K disclosures on the same days — for example, NVIDIA’s 8-K filings on EDGAR.
Reform tends to move when constituents on both sides make the same phone call. Until that happens, the disclosures themselves remain the best publicly available window into where Washington thinks the risk, and the money, is heading next.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Intel (INTC 5.67%) stock slid 4.3% through 11:35 a.m. ET as investors caught a case of the Mondays -- and resumed worrying about the market for memory chips used in the artificial intelligence industry.
Image source: Getty Images.
SK Hynix: coming to America South Korea's SK Hynix (SKHY 8.84%), now trading on Nasdaq, may be the catalyst. SK shares soared 14% on their Nasdaq debut before turning tail this morning and selling off by more than 6%. Now, Intel stock is following SK stock lower.
At first glance, this may not make much sense. SK Hynix specializes in computer memory -- high-bandwidth memory composed of DRAM memory chips primarily, where SK holds a 50%-plus market share, but also DRAM in general, where its market share is 29%, and NAND flash memory, too, where its market share is about 20%.
Intel doesn't play a big role in any of these markets, being primarily a CPU specialist.
However, in a memory market facing potentially its "worst-ever supply shortage," Intel has been exploring entering memory production, announcing in February a partnership with tech giant Softbank Group (SFTBF 2.66%) to develop a new kind of memory technology.
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What this means for Intel stock Although it's early days in the Intel-Softbank partnership, the companies are said to be developing a "high capacity, high bandwidth, and low power consumption" chip that could put Intel in competition with SK Hynix -- which just got a $26.5 billion cash injection from its Nasdaq listing, making it a stronger competitor.
How bad is this news for Intel investors? Honestly -- probably not very bad. We don't even know if anything will come of the Softbank partnership after all. Still, with Intel stock costing 900x earnings today, it's probably best to be safe, and today's news seems a fine excuse to sell Intel stock.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool has a disclosure policy.
Pondělní obchodování zakončil index DAX v kladném teritoriu. Nejvíce posílily akcie společností Brenntag (+3,6 %), Deutsche Boerse (+3,0 %) a Siemens Healthineers (+2,80 %). Opačným směrem zamířily akcie Infineon Technologies (-2,9 %), MTU Aero (-2,4 %) a Fresenius (-2,1 %). Evropský index STOXX600 uzavřel seanci na zelené nule. Z jednotlivých sektorů se dařilo energiím (+2,96 %), komunikačním službám (+2,0 %) a utilitám (+1,0 %). Největší pokles zaznamenaly sektory technologií (-1,1 %), průmyslu (-0,41 %) a zdravotní péče (-0,38 %).
Index DAX +0,19 % na 25114,25 b. Nejsilnější akcie Změna Nejslabší akcie Změna Brenntag (BNR) +3,6 % Infineon Technologies (IFX) -2,9 % Deutsche Boerse (DB1) +3,0 % MTU Aero (MTX) -2,4 % Siemens Healthinees (SHL) +2,8 % Fresenius (FRE) -2,1 % BASF (BAS) +2,7 % Vonovia (VNA) -1,5 % Fresenius Medical Care (BNR) +2,4 % Rheinmentall (RHM) -1,3 % Zdroj: Bloomberg
Adobe Systems (ADBE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this software maker have returned +9.6% over the past month versus the Zacks S&P 500 composite's +4.3% change. The Zacks Computer - Software industry, to which Adobe belongs, has lost 6.9% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Adobe is expected to post earnings of $6.08 per share, indicating a change of +14.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $24.3 points to a change of +16.1% from the prior year. Over the last 30 days, this estimate has changed +3.7%.
For the next fiscal year, the consensus earnings estimate of $27.41 indicates a change of +12.8% from what Adobe is expected to report a year ago. Over the past month, the estimate has changed +3.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Adobe is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Adobe, the consensus sales estimate of $6.67 billion for the current quarter points to a year-over-year change of +11.4%. The $26.52 billion and $28.88 billion estimates for the current and next fiscal years indicate changes of +11.6% and +8.9%, respectively.
Last Reported Results and Surprise HistoryAdobe reported revenues of $6.62 billion in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $5.96 for the same period compares with $5.06 a year ago.
Compared to the Zacks Consensus Estimate of $6.46 billion, the reported revenues represent a surprise of +2.5%. The EPS surprise was +2.23%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Adobe is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Adobe. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
AI memory is still top of mind for inventors and analysts, seen in Citi's price target hikes for Seagate (STX) and Western Digital (WDC). Diane King Hall explains why the firm remains bullish despite stellar surges in stock price.
Key Takeaways HUBS emerges as the better buy, supported by stronger growth prospects and a lower valuation.HubSpot's 2026 sales and EPS are projected to rise 18.3% and 35.1%, respectively.IBM benefits from hybrid cloud and AI demand but faces pricing pressure and rising competition. HubSpot, Inc. (HUBS - Free Report) and International Business Machines Corporation (IBM - Free Report) provide AI-powered software solutions for business enterprises. HubSpot specializes in AI-enabled CRM, marketing, sales and customer service software. The integration of Clearbit, a B2B data provider for marketing intelligence, has facilitated the development of more powerful, advanced and accurate AI capabilities. The adoption of advanced AI tools, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers.
IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud and AI services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for HubSpotHubSpot's AI, which includes cutting-edge features such as AI assistance, AI agents, AI insights, and ChatSpot, is driving more value to customers. HubSpot has integrated HubSpot AI across its entire product suites and customer platform, enabling users to leverage AI features at no additional cost. Pricing optimization and the transition to a seat pricing model are expected to drive customer growth. The seat pricing model lowers the barrier for customers to get started with HubSpot and mitigates pricing friction for upgrades. The model intends to encourage more clients to adopt HubSpot services and expand their usage over time. It is anticipated to lead to healthier customer cohorts and is expected to contribute to the company's growth over time.
The company is embedding generative AI into its CRM, marketing and sales automation tools. The buyout of Frame AI, an AI-powered conversation intelligence platform, has enabled HUBS to unify structured and unstructured data to transform conversations into actionable intelligence. The One HubSpot initiative is a key growth driver. In addition, HubSpot's App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses.
However, HubSpot’s lower-priced starter offerings and seat-based pricing transition may continue affecting average subscription revenue growth in the near term. Although the revised pricing structure supports customer acquisition and upgrade flexibility, lower-priced packages could cannibalize premium offerings. Future pricing increases may also increase cancellation risks or push smaller customers toward free products, limiting monetization opportunities. Moreover, growing investments in data center infrastructure, sales & marketing and research & development continue to strain margins. Despite the increasing top line, mounting losses do not augur well for investor confidence. Reduced spend from small and medium-sized businesses amid a challenging business environment and macroeconomic headwinds remains a concern.
The Case for IBMIBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long term. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management, translating into a healthy demand for IBM hybrid cloud solutions.
IBM has integrated the open-source Mixtral-8x7B large language model into its watsonx AI and data platform. Mixtral-8x7B's incorporation underscores IBM's dedication to cutting-edge AI research and development. Built on innovative Sparse modeling and the Mixture-of-Experts technique, this model excels in rapid data processing and contextual analysis. Its ability to efficiently handle vast datasets makes it a valuable asset for businesses seeking actionable insights. The optimized version of Mixtral-8x7B, developed by Mistral AI, showcases impressive performance gains. Internal tests reveal a remarkable improvement in throughput compared to the standard model. By leveraging quantization techniques to reduce the model size and memory requirements, IBM anticipates significant reductions in latency, potentially boosting its top-line growth.
Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon.com, Inc.’s (AMZN - Free Report) AWS and Microsoft Corporation’s (MSFT - Free Report) Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company faces a potent threat from AI firm Anthropic as the latter’s Claude Code tool can modernize legacy COBOL systems — a foundational programming language deeply embedded in IBM’s mainframe ecosystem. With Claude Code proposing to substantially automate code exploration, documentation, refactoring and security analysis, it threatened to reduce enterprises’ reliance on specialized legacy service providers like IBM, bringing its sustenance at stake.
How Do Zacks Estimates Compare for HUBS & IBM?The Zacks Consensus Estimate for HubSpot’s 2026 sales suggests year-over-year growth of 18.3%, while that for EPS implies a rise of 35.1%. The EPS estimates have trended up 0.3% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IBM’s 2026 sales and EPS indicates year-over-year growth of 6% and 7.4%, respectively. The EPS estimates have trended up 0.4% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of HUBS & IBMOver the past year, HubSpot has plunged 61.5% compared with the industry’s decline of 11.6%. IBM has gained 1.3% over the same period.
Image Source: Zacks Investment Research
HubSpot looks more attractive than IBM from a valuation standpoint. Going by the price/sales ratio, HubSpot’s shares currently trade at 2.65 forward sales, lower than 3.68 for IBM.
Image Source: Zacks Investment Research
HUBS or IBM: Which is a Better Pick?HubSpot carries a Zacks Rank #2 (Buy), while IBM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their earnings and revenues to improve in 2026. HubSpot is trading relatively more cheaply than IBM in terms of valuation metrics. With a superior Zacks Rank, HubSpot seems to have an edge over IBM and is therefore a better investment option at the moment.
IBM (IBM +1.65%) may still look like a boring dividend stock, but its quantum strategy could be changing the story. With enterprise adoption, government support, and a profitable business under it, IBM may offer a more stable way to follow the quantum race.
Stock prices used were the market prices of July 3, 2026. The video was published on July 12, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
At $292.59, International Business Machines (NYSE:IBM | IBM Price Prediction) is a Buy, echoing Jim Cramer’s call on Mad Money after a viewer asked for a verdict on the stock. Cramer called IBM inexpensive, praised CEO Arvind Krishna’s execution, and told viewers to buy some now and add on any panic dips.
IBM sits at the intersection of enterprise software, hybrid cloud, and mainframe infrastructure, with 96% of its software portfolio classified as enabling infrastructure, not applications. Big Blue has methodically become an AI infrastructure supplier for global corporations, and Krishna has spent years reshaping the portfolio for this moment. The stock has rebounded from early-year lows but still trails the broader market, which is the setup Cramer is pointing at.
Why the Bulls See a Cheap AI Infrastructure Compounder IBM’s Q1 2026 results strengthen the bull case. Non-GAAP EPS came in at $1.91 versus $1.81 expected, the fourth straight quarterly beat, on revenue of $15.917B, up 9.5% year over year. Software revenue rose 11.3% with Red Hat up 13% and Data up 19%, while IBM Z mainframe revenue surged 51% and infrastructure segment margin expanded from 8.6% to 15.8%.
Krishna is monetizing AI at the silicon layer. A fully populated mainframe can now run “about 450 billion inferences [operations] a day”, letting banks apply fraud models to every transaction instead of a 10% sample. The generative AI book of business finished 2025 above $12.5B inception-to-date. Meanwhile, management maintained guidance for more than 5% constant currency revenue growth and roughly $1 billion of incremental YoY free cash flow in 2026. At a forward P/E of 23, that is a growth business trading like a legacy one.
Why the Bears Say the Rerating Has Already Happened IBM traded as low as $212.34 in the past year and now sits near $292.94 against a 52-week high of $332.46. Consulting, roughly a third of revenue, grew just 1% in constant currency, a soft spot bears argue will worsen as clients redirect budgets toward hyperscaler-native AI stacks.
Leverage is climbing. Total debt sits at $66.4 billion after the acquisition of data-streaming platform Confluent, while cash, restricted cash, and marketable securities fell to $11.8 billion from $14.5 billion. Free cash flow did not crack in Q1. It rose to $2.2 billion, up $0.3 billion year over year, even as IBM absorbed acquisition-related spending. The bear case is balance-sheet pressure, with cash down from year-end and debt elevated after another large software deal. Composite sentiment has slid 16.59 points over seven days, and Reddit discussion has cooled from bullish readings of 65 in late June to a bearish range of 36 to 42 in early July, with one r/stocks thread framing IBM as a “forgotten” tech name.
Why Patience Has a Real Case Too The Wall Street consensus analyst target sits at $294.57, essentially where IBM stock already trades. Q2 results land soon. Polymarket assigns a 90% probability of an earnings beat but only a 48.5% probability of software revenue clearing $8.2B, leaving room for a mixed earnings report that stalls the stock.
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Patient investors can watch three things: software acceleration toward the 10% plus full-year target, whether consulting inflects above 1% constant currency, and Confluent integration progress.
What the Numbers Say About the Setup IBM trades at $292.72 against an average analyst target of $294.57, implied upside of roughly 1.6%, across 23 analysts. The ratings skew bullish: 3 Strong Buy, 12 Buy, 7 Hold, 0 Sell, and 1 Strong Sell.
Valuation is 25 trailing and 23 forward, with a 2.28% dividend yield resting on 31 consecutive years of increases. IBM is down 1.64% year to date and up 2.62% over one year, while the S&P 500 is up 10.71% year to date and 20.63% over one year.
Why the Bull Case Holds at This Price Trading above $290, the bull case leans on three catalysts over the next 12 months. Q2 results later this month are the near-term trigger, with prediction markets pricing a 90% probability of a beat. Behind it sits a software segment that management expects to grow above 10% for the full year, and a mainframe cycle where Z17 hardware placement value ran more than $1 billion ahead of Z16’s first year. Together, those catalysts give IBM two ways to rerate: stronger earnings and a higher multiple.
Buying a business growing revenue 9.5% and free cash flow 13% at a forward multiple of 23 leaves margin for error that hyperscalers do not offer. Krishna is executing on a portfolio he built for this moment, telling analysts “this is a tailwind because of the model that we picked”. The thesis breaks if software growth stalls below 8%, consulting turns negative, or the Confluent integration slips.
Cramer’s framing captures it vividly: this is a high-quality operator being priced like a legacy laggard, and the market has not caught up.
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UnitedHealth Group stock has been in a strong rally this year as investors cheered its turnaround efforts and the Trump administration’s decision to boost Medicare Advantage payments by a larger-than-expected rate.
UNH jumped and peaked at $434 last week, up by 66% from its lowest point this year. This surge mirrored that of other health insurance companies like CVS, Humana, and Elevance Health.
There are signs that this rally is about to end as the UNH stock has flashed some highly bearish chart patterns ahead of its earnings report.
The daily chart shows that UNH stock has been in an uptrend in the past few months. Recently, however, this momentum has slowed, resulting in the stock forming a rising wedge pattern.
This pattern is made up of two ascending and converging trendlines, whose two lines are now nearing their confluence. In most cases, this pattern normally leads to a bearish breakout, especially when the two lines are about to converge.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bearish divergence pattern. This is a situation where an asset is rising, while the oscillators are moving downwards.
In this case, the RSI is approaching the neutral zone of 50, while the PPO Indicator is about to cross the zero line.
Therefore, the most likely scenario is where UnitedHealth shares make a bearish breakout after earnings this week. If this happens, the next key level to watch will be at $400.
The bearish outlook will become invalid if it jumps above the psychological level of $450. Such a move will invalidate the bearish outlook and point to further gains ahead.
UNH stock chart | Source: TradingView
UnitedHealth Group stock has jumped in the past few months as the management has implemented a turnaround strategy. This approach included management changes and a full independent review on its business operations.
The stock continued its strong rally after the Trump administration hiked Medicare Advantage payouts by over 2%, higher than what it proposed in January this year. This addition is worth over $13 billion, a notable amount since UNH has a big market share in the industry.
The company also published strong financial results and hiked its annual guidance. As a result, this week’s earnings report will provide more hints on its business and whether the changes are having results.
Yahoo Finance data shows that the expectation is that its revenue softened by 71 basis points to $110 billion. The guidance for its third quarter is expected to be $110.89 billion, with the annual revenue coming in at $444.1 billion.
There are signs that UnitedHealth has become a bit overvalued, meaning that its earnings need to be significantly higher than expected. The forward price-to-earnings ratio stands at 24.80, higher than the five-year average of 25. This likely explains why Warren Buffett’s Berkshire Hathaway decided to sell the shares.
Additionally, UNH stock is slightly higher than the consensus among analysts. This consensus is $417, higher than the current $424. In a recent note, Sidharth Sahoo, an HSBC analyst, placed his target for the stock at $380. Other analysts, including those from RBC and Morgan Stanley, hiked their targets to over $460.
Analysts on Wall Street project that UnitedHealth Group (UNH - Free Report) will announce quarterly earnings of $4.84 per share in its forthcoming report, representing an increase of 18.6% year over year. Revenues are projected to reach $110.05 billion, declining 1.4% from the same quarter last year.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific UnitedHealth metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenues- Premiums' should arrive at $85.93 billion. The estimate suggests a change of -2.2% year over year.
The average prediction of analysts places 'Revenues- Investment and other income' at $1.03 billion. The estimate indicates a year-over-year change of -7.3%.
Analysts expect 'Revenues- Products' to come in at $13.68 billion. The estimate indicates a change of +0.9% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Services' reaching $9.55 billion. The estimate points to a change of +5.6% from the year-ago quarter.
Analysts forecast 'Operating Statistics - Medical Care Ratio' to reach 88.6%. The estimate compares to the year-ago value of 89.4%.
The collective assessment of analysts points to an estimated 'UnitedHealthcare Customer Profile - People Served - Total Commercial - Domestic' of 29.53 million. The estimate compares to the year-ago value of 29.97 million.
The consensus among analysts is that 'UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Risk-based' will reach 7.26 million. The estimate compares to the year-ago value of 8.44 million.
The consensus estimate for 'UnitedHealthcare Customer Profile - People Served - Commercial - Domestic - Fee-based' stands at 22.27 million. Compared to the present estimate, the company reported 21.53 million in the same quarter last year.
It is projected by analysts that the 'UnitedHealthcare Customer Profile - People Served - Total Community and Senior' will reach 18.70 million. Compared to the present estimate, the company reported 20.15 million in the same quarter last year.
According to the collective judgment of analysts, 'UnitedHealthcare Customer Profile - People Served - Community and Senior - Medicare Advantage' should come in at 7.43 million. The estimate compares to the year-ago value of 8.35 million.
Analysts predict that the 'UnitedHealthcare Customer Profile - People Served - Community and Senior - Medicare Supplement (Standardized)' will reach 4.27 million. The estimate compares to the year-ago value of 4.31 million.
The combined assessment of analysts suggests that 'UnitedHealthcare Customer Profile - People Served - Medicare Part D stand-alone' will likely reach 2.68 million. The estimate is in contrast to the year-ago figure of 2.80 million.
View all Key Company Metrics for UnitedHealth here>>>
Over the past month, shares of UnitedHealth have returned +3.9% versus the Zacks S&P 500 composite's +4.3% change. Currently, UNH carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UnitedHealth Group (UNH - Free Report) UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 23.18; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $18.32 per share. UNH also boasts an average earnings surprise of +0.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, UNH should be on investors' short list.
Key Takeaways Merck secured expanded FDA approval for Keytruda plus Padcev in muscle-invasive bladder cancer.MRK's KEYNOTE-B15 study showed a 47% reduction in event-free survival risk versus chemotherapy.Keytruda plus Padcev is the first approved PD-1 plus ADC regimen for MIBC regardless of cisplatin eligibility. Merck (MRK - Free Report) announced that the FDA has approved its blockbuster PD-L1 inhibitor, Keytruda (pembrolizumab), and its subcutaneous (SC) formulation, Keytruda Qlex, each in combination with Pfizer’s (PFE - Free Report) antibody-drug conjugate ("ADC"), Padcev (enfortumab vedotin-ejfv), for expanded use in a bladder cancer indication.
The FDA has now approved Keytruda and Keytruda Qlex, each in combination with Padcev, as neoadjuvant treatment and then continued after cystectomy as adjuvant treatment in adult patients with muscle-invasive bladder cancer (MIBC).
Following the latest nod, the Keytruda+Padcev regimen became the first and only PD-1 inhibitor plus ADC combination to be approved for patients with MIBC, regardless of cisplatin eligibility. The latest FDA approval for the Keytruda+Padcev regimen was based on data from the phase III KEYNOTE-B15 study, conducted in collaboration with Pfizer and Astellas.
The FDA approved the Keytruda plus Padcev regimen, as neoadjuvant treatment and then continued after cystectomy as adjuvant treatment, in adult patients with MIBC who are ineligible for cisplatin-based chemotherapy last November. This approval was based on data from the phase III KEYNOTE-905 study.
MRK’s Price PerformanceYear to date, shares of Merck have rallied 19.1% while those of Pfizer have gained 0.4% compared with the industry’s increase of 12.1%.
Image Source: Zacks Investment Research
More on the Latest FDA Nod for MRK & PFE’s Keytruda+Padcev ComboData from the KEYNOTE-B15 study showed that treatment with Keytruda plus Padcev, given before and after surgery, led to a statistically significant improvement in event-free survival (EFS), reducing the risk of EFS events by 47% in patients with MIBC who are eligible for cisplatin-based chemotherapy compared to neoadjuvant chemotherapy (gemcitabine and cisplatin) and surgery.
In April 2026, the FDA accepted and granted priority review to MRK’s supplemental biologics license applications (sBLAs) seeking approval for Keytruda and Keytruda Qlex, each in combination with Padcev, for treating MIBC in patients who are eligible for cisplatin-based chemotherapy. The decision was due on Aug. 17, 2026
The latest FDA approval, which comes a month ahead of the scheduled date, marks a significant advancement in the treatment of MIBC. The Keytruda-Padcev regimen is likely to provide a new perioperative treatment option for eligible patients with this disease.
Last month, the European Commission approved the Keytruda-Padcev regimen as neoadjuvant treatment and then continued after radical cystectomy as adjuvant treatment in adult patients with resectable MIBC who are ineligible for cisplatin-based chemotherapy.
Merck’s biggest revenue driver, Keytruda, is approved for different types of cancer indications. The drug generated $8.03 billion in sales in the first quarter of 2026, up 8% year over year.
Pfizer’s Padcev, added from the December 2023 Seagen acquisition, generated sales worth $591 million in the first quarter of 2026, up 39% on a year-over-year basis.
As both companies prepare to report their second-quarter results next month, investors are expected to closely watch the sales performance of Keytruda and Padcev, especially in light of their recent approvals.
MRK & PFE Zacks RankBoth Merck and Pfizer currently carry a Zacks Rank #3 (Hold).
Stocks to ConsiderSome better-ranked stocks in the biotech sector are Amarin (AMRN - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Amarin’s 2026 loss per share have narrowed from $15.20 to 65 cents. Over the same period, loss per share estimates for 2027 have narrowed from $13.00 to 51 cents. AMRN shares have increased 6.6% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 50.02%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.10 to $3.02, while estimates for 2027 have increased from $4.14 to $4.92 during the same time. LQDA shares have surged 126% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
Key Takeaways Chevron will supply 46 petajoules of gas to Alinta Energy from 2027 through 2032.CVX will source gas from Gorgon, Wheatstone and the North West Shelf Project.Chevron said Gorgon and Wheatstone supply about 40% of Western Australia's domestic gas needs. Chevron Corporation’s (CVX - Free Report) Australian affiliate, Chevron Australia Pty Ltd, has signed a new long-term natural gas supply agreement with Alinta Energy, reinforcing its commitment to supporting Western Australia's (WA) energy security. Beginning in July 2027, Chevron will supply 46 petajoules of natural gas over five years from its interests in the Gorgon and Wheatstone facilities, as well as the North West Shelf Project.
The agreement extends a partnership spanning more than four decades and ensures a reliable source of natural gas for households, businesses and industrial customers across Western Australia. It also highlights the growing importance of long-term supply contracts as the state balances rising energy demand with the transition to a lower-carbon future.
Five-Year Agreement Secures Reliable Gas SupplyUnder the agreement, Chevron will provide Alinta Energy with 46 petajoules of natural gas between 2027 and 2032. The supply will come from three of Western Australia's most significant gas assets — Gorgon, Wheatstone and the North West Shelf Project.
The long-term contract provides Alinta Energy with greater certainty over its fuel portfolio while helping ensure stable energy supplies for its retail and commercial customers.
CVX Is Supporting Western Australia's Energy SecurityChevron emphasized that its major LNG developments continue to play a vital role in the state's domestic energy market. According to the company, the Gorgon and Wheatstone facilities together supply approximately 40% of Western Australia's domestic gas needs.
Reliable natural gas remains essential for electricity generation, mining operations and other energy-intensive industries. By securing long-term supply, the agreement supports the continued availability of dependable and affordable energy throughout the state.
A Partnership Built Over Four DecadesThe latest agreement builds on a long-standing relationship between Chevron and Alinta Energy that has existed for more than 40 years. Both companies highlighted the importance of trusted partnerships in maintaining consistent gas supplies and supporting customers during an evolving energy landscape.
For Alinta Energy, access to long-term production from established projects strengthens its ability to serve households, businesses and industrial users while adapting to changing energy demands.
A Long-Term Commitment to Reliable Gas SupplyThe new agreement demonstrates Chevron's continued focus on maximizing the value of its Australian gas portfolio while supporting domestic energy needs. At the same time, it provides Alinta Energy with greater supply certainty from proven gas projects.
As Western Australia continues to require reliable energy alongside its transition toward lower-emission sources, partnerships like this are expected to remain an important part of maintaining energy security and supporting economic activity across the region.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Currently, CVX carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Suncor Energy Inc. (SU - Free Report) , Par Pacific Holdings, Inc. (PARR - Free Report) and Imperial Oil Limited (IMO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alberta-based Suncor Energy is Canada's premier integrated energy company. The company's operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. The Zacks Consensus Estimate for SU’s 2026 earnings indicates 114.2% year-over-year growth.
Houston, TX-based Par Pacific Holdings is a growth-oriented energy company supplying conventional and renewable fuels across the western United States. Its integrated platform sources crude, refines transportation fuels and distributes products. The Zacks Consensus Estimate for PARR’s 2026 revenues indicates 123.8% year-over-year growth.
Calgary-based Imperial Oil is one of the largest integrated oil companies of Canada, mainly engaged in oil and gas production, petroleum products refining and marketing and chemical business. The Zacks Consensus Estimate for IMO’s 2026 earnings indicates 69.2% year-over-year growth.
Newmont Corporation (NEM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this gold and copper miner have returned -4.9%, compared to the Zacks S&P 500 composite's +4.3% change. During this period, the Zacks Mining - Gold industry, which Newmont falls in, has gained 0.4%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Newmont is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of +52.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -3%.
The consensus earnings estimate of $9.32 for the current fiscal year indicates a year-over-year change of +35.3%. This estimate has changed -5.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $10.34 indicates a change of +11% from what Newmont is expected to report a year ago. Over the past month, the estimate has changed -3.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Newmont is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Newmont, the consensus sales estimate of $6.19 billion for the current quarter points to a year-over-year change of +16.4%. The $26.74 billion and $28.65 billion estimates for the current and next fiscal years indicate changes of +18% and +7.1%, respectively.
Last Reported Results and Surprise HistoryNewmont reported revenues of $7.31 billion in the last reported quarter, representing a year-over-year change of +45.8%. EPS of $2.9 for the same period compares with $1.25 a year ago.
Compared to the Zacks Consensus Estimate of $6.36 billion, the reported revenues represent a surprise of +14.88%. The EPS surprise was +40.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Newmont is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Newmont. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Carnival operates 19 ships and eight lodges in Alaska, supporting integrated land-and-sea vacations.CCL is investing in Alaska destination assets to enhance guest experiences and pricing power.Alaska complements Carnival's long-term strategy with differentiated offerings and disciplined expansion. Carnival Corporation Ltd.’s (CCL - Free Report) Alaska business is increasingly becoming an important pillar of its long-term growth strategy. While the company continues to invest heavily in Caribbean destinations, management highlighted Alaska as one of the strongest competitive advantages due to its unmatched scale, integrated offerings and decades-long presence in the region.
The company operates in Alaska through five cruise brands, deploying 19 ships across four embarkation ports. This extensive network has helped Carnival secure preferred access to key ports, an advantage that is becoming more valuable as demand for Alaska cruises remains healthy. Unlike most competitors, Carnival also combines cruise vacations with land-based experiences through the network of lodges, rail operations and motor coaches, enabling it to offer higher-value land-and-sea vacation packages.
Management's continued investment underscores its confidence in the region. Carnival is expanding its most popular Denali lodge while maintaining eight lodge properties across Alaska, reflecting strong guest demand and expectations for sustained growth. These investments complement the company's broader strategy of strengthening destination-led experiences rather than relying solely on fleet expansion.
The Alaska business also fits well with Carnival's disciplined capital allocation approach. By enhancing existing destination assets and integrated vacation offerings, the company can improve pricing power, generate higher onboard and land-based spending, and strengthen customer loyalty without significantly increasing ship capacity.
Although near-term geopolitical issues have affected parts of Carnival's European business, management remains confident that differentiated destination portfolios, including Alaska, will support stronger earnings, cash flow and long-term shareholder value. If demand continues to build, Alaska could become an increasingly meaningful contributor to Carnival's growth.
Rivals Are Also Expanding Premium Alaska ExperiencesCarnival faces strong competition in Alaska from Royal Caribbean Cruises Ltd. (RCL - Free Report) and Norwegian Cruise Line Holdings (NCLH - Free Report) , both of which are investing to capitalize on rising demand for scenic and adventure-focused itineraries.
Royal Caribbean continues to strengthen its Alaska presence by deploying larger, feature-rich ships and emphasizing immersive shore excursions. Its focus on onboard innovation and premium guest experiences appeals to travelers seeking both adventure and entertainment, making Royal Caribbean a formidable competitor during the Alaska cruise season.
Norwegian Cruise Line is also expanding its footprint in the region through flexible itineraries, extended port stays and the "Freestyle Cruising" concept. The company complements its Alaska sailings with curated land excursions and nature-focused experiences that resonate with travelers looking for customized vacations.
Despite this competition, Carnival maintains a meaningful edge through its integrated land-and-sea platform, extensive lodge network, rail operations and long-standing relationships across Alaska. These assets allow the company to offer differentiated vacation packages that are difficult for rivals to replicate, reinforcing its position in one of the industry's most attractive cruise markets.
CCL’s Price Performance, Valuation and EstimatesShares of Carnival have declined 11.1% in the past six months compared with the industry’s decrease of 4.9%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 10.96X, below the industry average of 16.82X.
P/E (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CCL’s 2026 sales and earnings implies a year-over-year uptick of 3.9% and a decline of 1.8%, respectively. EPS estimates for fiscal 2026 have decreased in the past 30 days.
Image Source: Zacks Investment Research
CCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Geopolitical instability often affects markets, but the most severe supply chain disruptions often unfold deep within the industrial ecosystem. The global semiconductor industry is facing a severe, inelastic bottleneck that threatens the expansion of artificial intelligence infrastructure. AI relies on physical computing hardware, and that hardware requires a raw material flow that is rapidly evaporating. The broader market is waking up to the reality that software scale is strictly bound by physical chemistry.
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The 3-Front Geopolitical ShockChina, Russia, and Qatar have simultaneously restricted global exports of helium, a non-substitutable industrial gas required for advanced microchip fabrication. On July 10, China's Ministry of Commerce enforced an immediate temporary ban on helium exports.
Beijing enacted this embargo to safeguard domestic reserves, providing no destination exemptions or transition periods for existing contracts. This defensive posture stems from escalating military conflicts in the Middle East, which disrupted QatarEnergy's operations and severed a maritime route that historically supplies one-third of the global helium market. Concurrently, Russian export controls have capped Asian market quotas for the year to a fraction of previous levels.
The Unforgiving Physics of FabricationTo understand the severity of this supply deficit, investors need to examine the physics of modern semiconductor manufacturing. Helium possesses unique physical properties, primarily its chemical inertia and ability to remain liquid near absolute zero.
Advanced node fabrication requires extreme ultraviolet lithography, plasma etching, and chemical vapor deposition. These foundry processes generate immense heat and require absolute thermal control. Lacking a continuous flow of liquid helium for wafer cooling, fabrication plants face unavoidable yield degradation or total operational halts. Despite this, heavy hardware manufacturers reliant on uninterrupted gas flows currently maintain relatively high market valuations despite mounting supply chain risks.
The disconnect between equity valuations and a deteriorating raw material supply chain highlights a specific vulnerability in hardware production models. Corporate leadership anticipated this chokehold prior to the official Chinese export embargo.
Semiconductor executives publicly identified helium availability as a highly significant bottleneck for global artificial intelligence expansion earlier in the summer, preempting the exact deficit now materializing. Capital markets are signaling that securing the raw elements of infrastructure is now as strategically critical as securing the computing hardware itself.
Profiting From the Geopolitical VacuumA severe shortage in a critical global commodity creates a highly favorable environment for the industry's most dominant suppliers. Global helium spot prices reflect severe market imbalances, registering sustained surges of 20% to 50% across major trading hubs. Inside China, the price of imported high-purity tube-trailer helium rose by more than 130% from pre-conflict levels just weeks before the export ban took effect.
Linde Today
$523.75 -6.04 (-1.14%)
As of 12:21 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$387.78▼
$548.20Dividend Yield1.22%
P/E Ratio34.78
Price Target$541.75
Suppliers operating outside disrupted geopolitical zones demonstrate robust capital appreciation and immense pricing leverage. Linde PLC NASDAQ: LIN provides a prime example of utilizing a diversified extraction network to capture market share. While competitors face heavy exposure to the Middle East, Linde PLC operates primary helium production and storage facilities in the United States and other insulated geographic regions. This diversification provides a critical shield against regional geopolitical shocks.
Linde PLC commands a market capitalization of roughly $244 billion and trades near $530 per share.
The company maintains a highly efficient net margin of over 20% and has delivered 28 consecutive quarters of earnings-per-share beats.
Investors benefit from a 1.21% dividend yield supported by a conservative 42.5% payout ratio, signaling stability and room for future growth. The broader analyst consensus aligns with a premium pricing environment for Western-based industrial gas providers, with firms like UBS Group maintaining aggressive price targets based on the sector's proven capability to pass inflationary costs directly to inelastic buyers.
Capital Flows in a Pressurized MarketInstitutional capital exhibits a bifurcated approach to the current supply chain shock, aggressively reallocating assets to navigate the geopolitical risk premium. Recent financial filings from industrial gas leaders demonstrate a marked reallocation of capital expenditures. Entities are diverting assets toward North American extraction and storage facilities, effectively pricing in the risk of sustained disruptions to Middle Eastern and Asian supply.
Options chain data for major semiconductor indices reveal elevated implied volatility. Put/call ratios are heavily skewed toward downside protection for late summer expirations. Institutional capital is actively hedging against imminent supply-side shocks ahead of second-quarter earnings reports.
The upcoming earnings calls, particularly for major equipment providers, will serve as the sector's definitive stress test. Management forward guidance will reveal the true margin impact of the helium export bans and detail how foundries plan to mitigate potential yield degradation.
Conversely, short interest across Western industrial gas suppliers has steadily contracted over the trailing 30 days. This capitulation signals broad institutional consensus regarding the sustained duration of the sector's newly acquired pricing power. Market participants recognize that high-value technology sectors view the price of helium as a rounding error compared to the catastrophic cost of a factory shutdown.
Breathing Through the Supply Chain ShockThe synchronized restriction of global helium exports fundamentally alters the foundational supply chain of the technology sector. A regional conflict and subsequent trade protectionism have triggered a verifiable supply crisis, shifting immense pricing power to geographically insulated industrial gas suppliers.
Investors evaluating technology holdings might want to review their portfolio exposure to heavy hardware manufacturers that rely on Asian raw material flows. Those seeking structural arbitrage in the current macro environment could consider researching Western-based extraction assets and industrial gas suppliers positioned to capture margin expansion during this prolonged supply squeeze.
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Tesla, Nvidia, and Google helped shape the last era of market growth, but the next wave could come from a new group of companies. Inside this report, you’ll find 7 stocks that could play a major role in the next tech-driven market boom.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Emerson Electric (EMR - Free Report) .
Emerson Electric currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.6% and 3.6% of all recommendations.
Brokerage Recommendation Trends for EMR
Check price target & stock forecast for Emerson Electric here>>>
While the ABR calls for buying Emerson Electric, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in EMR?Looking at the earnings estimate revisions for Emerson Electric, the Zacks Consensus Estimate for the current year has declined 0.1% over the past month to $6.49.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Emerson Electric. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Emerson Electric with a grain of salt.
After reaching an important support level, Parker-Hannifin (PH - Free Report) could be a good stock pick from a technical perspective. PH surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of PH have been moving higher over the past four weeks, up 6.4%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that PH could be poised for a continued surge.
The bullish case solidifies once investors consider PH's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PH for more gains in the near future.
In its upcoming report, Commerce Bancshares (CBSH - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.04 per share, reflecting a decline of 8.8% compared to the same period last year. Revenues are forecasted to be $488.01 million, representing a year-over-year increase of 9.5%.
The current level reflects an upward revision of 1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Commerce metrics that are commonly monitored and projected by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 57.6%. Compared to the current estimate, the company reported 54.8% in the same quarter of the previous year.
Analysts' assessment points toward 'Net Interest Margin (Net yield on interest earning assets)' reaching 3.7%. The estimate compares to the year-ago value of 3.7%.
The average prediction of analysts places 'Tier I risk-based capital ratio' at 17.3%. Compared to the current estimate, the company reported 17.2% in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Average total interest earning assets' will likely reach $34.02 billion. The estimate compares to the year-ago value of $30.63 billion.
Based on the collective assessment of analysts, 'Total risk-based capital ratio' should arrive at 18.1%. Compared to the present estimate, the company reported 17.9% in the same quarter last year.
Analysts expect 'Book value per common share' to come in at $30.89 . Compared to the present estimate, the company reported $27.43 in the same quarter last year.
The consensus estimate for 'Fully-taxable equivalent net interest income' stands at $311.81 million. The estimate compares to the year-ago value of $282.43 million.
According to the collective judgment of analysts, 'Total Non-Interest Income' should come in at $178.28 million. Compared to the current estimate, the company reported $165.61 million in the same quarter of the previous year.
It is projected by analysts that the 'Deposit account charges and other fees' will reach $28.58 million. The estimate compares to the year-ago value of $26.25 million.
Analysts forecast 'Net Interest Income' to reach $309.28 million. The estimate compares to the year-ago value of $280.15 million.
The consensus among analysts is that 'Trust fees' will reach $71.88 million. Compared to the current estimate, the company reported $55.57 million in the same quarter of the previous year.
Analysts predict that the 'Bank card transaction fees' will reach $46.79 million. The estimate is in contrast to the year-ago figure of $46.36 million.
View all Key Company Metrics for Commerce here>>>
Over the past month, Commerce shares have recorded returns of +4.6% versus the Zacks S&P 500 composite's +4.3% change. Based on its Zacks Rank #3 (Hold), CBSH will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
SummaryFounded in 1977, Oracle is now a $404 billion (by market cap) tech behemoth employing around 140,000 people.Oracle’s scaled positioning is impressive, as is its consistent ability to pivot and execute in a space that is constantly changing and evolving.Oracle has increased its dividend for 17 consecutive years. The 10-year dividend growth rate of 12.8% is quite solid. Mesut Dogan/iStock Editorial via Getty Images
Oracle Corp. (ORCL) is an American multinational technology company. Founded in 1977, Oracle is now a $404 billion (by market cap) tech behemoth employing around 140,000 people. Oracle is one of the world’s largest providers of enterprise software
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Oracle stock is taking a hit today. Why are ORCL shares down? Oracle Stock In FocusToday’s pullback fits a broader "risk-off" tape in growth-oriented names, with Technology ranking last among the 11 sectors. With the stock sitting near its 52-week low zone, small shifts in sentiment are translating into outsized moves as traders focus on downside levels.
Oracle is underperforming its Technology sector on Monday, down about 3% versus XLK down 1.24%—a gap of roughly 1.83 percentage points. Zooming out, the sector is down 4.42% over the past 30 days but up 23.92% over the past 90 days, which suggests this is a pullback inside a broader recovery window. Oracle in particular has reached oversold territory, which can often signal some relief buying is due.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $264.64. Recent analyst moves include:
Bernstein: Outperform (Raises Target to $325.00) (June 11) RBC Capital: Sector Perform (Maintains Target to $190.00) (June 11) TD Cowen: Buy (Maintains Target to $300.00) (June 11) What Does Oracle Do?Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world’s largest companies for high-volume online transaction processing workloads.
Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing. That mix makes the stock sensitive to both enterprise IT spending cycles and investor sentiment around cloud infrastructure demand.
Oracle’s Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for Oracle, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Oracle’s Benzinga Edge signal reveals a growth-heavy profile that’s currently being held back by weak momentum and only modest value support. For longer-term bulls, the setup improves if price stabilizes above the $135 area and starts reclaiming the 20-day/50-day averages, signaling the downtrend is easing.
ORCL Shares Move Lower MondayORCL Price Action: Oracle shares were down 3.36% at $135.91 at the time of publication on Monday, according to Benzinga Pro. The stock is nearing its 52-week low of $134.57 after the recent pullback. It has a 52-week high of $345.72, which puts the depth of the slide in perspective.
From a longer-term trend perspective, Oracle remains in a clear downtrend: the stock is trading 30% below its 200-day SMA and 25.2% below its 50-day SMA, with the 20-day SMA also below the 50-day SMA. Momentum is the key near-term story, with RSI at 29.52 pushing into oversold territory after the recent swing low.
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Key Takeaways Nasdaq Leads Markets Lower on SK Hynix NewsHalfway Through the MOU, U.S.-Iran Attacks Re-emergeQ2 Earnings from Big Banks Join June CPI Ahead of Tuesday Open Monday, July 13th, 2026
Pre-market futures are down at this hour, led by the tech sector on the Nasdaq, which has shed -372 points at this hour, -1.24%. The Dow is -97 points, -0.18%, the S&P 500 -33, -0.43%. The small-cap Russell 2000 is -12 points lower currently, -0.41%, and the only index of the four not to have made gains on Friday.
News from South Korea’s newly minted SK Hynix (SKHY - Free Report) stock is sending shares down -10% presently, and taking memory-chip makers like SanDisk (SNDK - Free Report) down -6% with them. SK Hynix CEO Kwak Noh-Jung announced today that 2027 is expected to bring the most severe memory shortage in the industry’s history, which would bring a real bottleneck to the free-flowing AI trade. SK Hynix happens to be the top memory provider for top AI stock NVIDIA (NVDA - Free Report) .
Elsewhere, the war in Iran heated up over the weekend, with the U.S. bombing targets in Iran for a second-straight night. Sources say bombs have dropped inland of the Strait of Hormuz region of Iran. The Islamic state has responded by launching bombs at neighboring Gulf states and working to re-close the Strait of Hormuz (while President Trump insists the U.S. "will probably be running" the Strait).
Traffic through the Strait has reportedly decreased more than -50% already since this latest bout of aggression. We’re only half-way through the 60-day Memorandum of Understanding (MOU) peace agreement between the two countries, by the way.
Spot oil prices are up as a result, as one might expect: $74 per barrel (/bbl) on WTI and $79/bbl on Brent crude. WTI oil prices were at pre-conflict lows ($67/bbl) one short week ago. Bond yields are climbing as well: +4.58% on the 10-year and +4.23% on the 2-year, which happens to be an 18-month high on the shorter bond yield. The yield curve has now tightened again, after looking like it was moving back toward 40 bps.
Big-News Tuesday Ahead: Big Bank Earnings, CPI Inflation Rate
Q2 earnings season begins in earnest Tuesday morning, when no fewer than five of the nation’s top financial institutions reports quarterly results. These include Zacks Rank #2 (Buy)-rated JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , and Zacks Rank #3 (Hold)-rated Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) . Citi is expected to bring the highest earnings growth of the group, while BofA is expected to have grown +15.7% on the top line.
The Consumer Price Index (CPI) for June also comes out ahead of Tuesday’s opening bell — expected to bring to bear something we haven’t seen since the Covid pandemic: a negative month-over-month Inflation Rate. Expectations are for headline CPI to come in at -0.2% from +0.5% posted for May. Clearly this is a result of the mid-June reopening of the Strait of Hormuz, which brought the cost of crude oil -21% — -10% at the gas station. Year over year is expected to come back below +4%, where it breached in May for the first time in three years.
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Published in inflation interest-rate oil-energy semiconductor
Pre-market futures are down at this hour, led by the tech sector on the Nasdaq, which has shed -372 points at this hour, -1.24%. The Dow is -97 points, -0.18%, the S&P 500 -33, -0.43%. The small-cap Russell 2000 is -12 points lower currently, -0.41%, and the only index of the four not to have made gains on Friday.
News from South Korea’s newly minted SK Hynix (SKHY - Free Report) stock is sending shares down -10% presently, and taking memory-chip makers like SanDisk (SNDK - Free Report) down -6% with them. SK Hynix CEO Kwak Noh-Jung announced today that 2027 is expected to bring the most severe memory shortage in the industry’s history, which would bring a real bottleneck to the free-flowing AI trade. SK Hynix happens to be the top memory provider for top AI stock NVIDIA (NVDA - Free Report) .
Elsewhere, the war in Iran heated up over the weekend, with the U.S. bombing targets in Iran for a second-straight night. Sources say bombs have dropped inland of the Strait of Hormuz region of Iran. The Islamic state has responded by launching bombs at neighboring Gulf states and working to re-close the Strait of Hormuz (while President Trump insists the U.S. "will probably be running" the Strait).
Traffic through the Strait has reportedly decreased more than -50% already since this latest bout of aggression. We’re only half-way through the 60-day Memorandum of Understanding (MOU) peace agreement between the two countries, by the way.
Spot oil prices are up as a result, as one might expect: $74 per barrel (/bbl) on WTI and $79/bbl on Brent crude. WTI oil prices were at pre-conflict lows ($67/bbl) one short week ago. Bond yields are climbing as well: +4.58% on the 10-year and +4.23% on the 2-year, which happens to be an 18-month high on the shorter bond yield. The yield curve has now tightened again, after looking like it was moving back toward 40 bps.
Big-News Tuesday Ahead: Big Bank Earnings, CPI Inflation RateQ2 earnings season begins in earnest Tuesday morning, when no fewer than five of the nation’s top financial institutions reports quarterly results. These include Zacks Rank #2 (Buy)-rated JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , and Zacks Rank #3 (Hold)-rated Citigroup (C - Free Report) , Bank of America (BAC - Free Report) and Wells Fargo (WFC - Free Report) . Citi is expected to bring the highest earnings growth of the group, while BofA is expected to have grown +15.7% on the top line.
The Consumer Price Index (CPI) for June also comes out ahead of Tuesday’s opening bell — expected to bring to bear something we haven’t seen since the Covid pandemic: a negative month-over-month Inflation Rate. Expectations are for headline CPI to come in at -0.2% from +0.5% posted for May. Clearly this is a result of the mid-June reopening of the Strait of Hormuz, which brought the cost of crude oil -21% — -10% at the gas station. Year over year is expected to come back below +4%, where it breached in May for the first time in three years.
Analysts on Wall Street project that U.S. Bancorp (USB - Free Report) will announce quarterly earnings of $1.28 per share in its forthcoming report, representing an increase of 15.3% year over year. Revenues are projected to reach $7.62 billion, increasing 8.7% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific U.S. Bancorp metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Total nonperforming assets' should arrive at $1.63 billion. Compared to the current estimate, the company reported $1.68 billion in the same quarter of the previous year.
The consensus among analysts is that 'Total nonperforming loans' will reach $1.57 billion. The estimate is in contrast to the year-ago figure of $1.64 billion.
The collective assessment of analysts points to an estimated 'Average Balances - Earning assets' of $633.73 billion. The estimate is in contrast to the year-ago figure of $613.34 billion.
The average prediction of analysts places 'Book value per common share' at $38.68 . The estimate is in contrast to the year-ago figure of $35.06 .
Analysts forecast 'Efficiency Ratio' to reach 57.2%. The estimate compares to the year-ago value of 59.2%.
The consensus estimate for 'Tier 1 Capital Ratio' stands at 12.3%. Compared to the present estimate, the company reported 12.3% in the same quarter last year.
The combined assessment of analysts suggests that 'Leverage ratio' will likely reach 8.9%. The estimate compares to the year-ago value of 8.5%.
It is projected by analysts that the 'Total Noninterest Income' will reach $3.28 billion. The estimate compares to the year-ago value of $2.92 billion.
Analysts' assessment points toward 'Net interest income (taxable-equivalent basis)' reaching $4.36 billion. The estimate compares to the year-ago value of $4.08 billion.
According to the collective judgment of analysts, 'Mortgage banking revenue' should come in at $163.00 million. The estimate compares to the year-ago value of $162.00 million.
Analysts expect 'Other- noninterest income' to come in at $128.08 million. The estimate is in contrast to the year-ago figure of $192.00 million.
Analysts predict that the 'Net Interest Income' will reach $4.34 billion. The estimate compares to the year-ago value of $4.05 billion.
View all Key Company Metrics for U.S. Bancorp here>>>
Over the past month, shares of U.S. Bancorp have returned +5.9% versus the Zacks S&P 500 composite's +4.3% change. Currently, USB carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Costco's June net sales rose 10.6% to $29.24 billion, while comparable sales increased 8.8%.Digitally enabled comparable sales climbed 20.9%, reinforcing growth beyond Costco's warehouses.Costco trades at 41.30 times forward earnings, well above the industry's 30.05 multiple. Costco Wholesale Corporation's (COST - Free Report) valuation remains among the highest in the retail sector, leaving little room for operational missteps. That makes monthly sales updates closely monitored by investors. June's sales results once again highlighted resilient consumer demand, decent comparable sales growth and strong digital momentum, but are these trends enough to support the stock's premium multiple going forward?
A Closer Look at Costco's June SalesFor a retailer trading at a premium multiple, the quality and consistency of growth matter as much as the pace. Costco’s June report certainly provided encouraging evidence. Net sales increased 10.6% year over year to $29.24 billion during the five weeks ended July 5, 2026. Comparable sales rose 8.8% companywide, while adjusted comparable sales, excluding gasoline price and foreign exchange impacts, advanced 7%. Those figures point to broad-based demand rather than growth driven solely by external factors.
Although June comparable sales remained strong, they moderated from the 12.5% and 11.6% growth recorded in May and April, respectively. The sequential slowdown does not undermine Costco's performance, but it highlights the broad-based growth needed to support its premium valuation.
Digital performance remained another bright spot. Costco's digitally enabled comparable sales climbed 20.9% on a reported basis and 21.5% after adjusting for fuel and currency effects. Sustained online growth of this magnitude complements warehouse traffic and reinforces the company's ability to expand sales beyond its physical footprint without compromising its value proposition.
Do Costco’s Latest Metrics Justify Its Premium Valuation?Costco trades at a forward 12-month price-to-earnings ratio of 41.30, well above the industry’s ratio of 30.05. The premium reflects investors' confidence in the company's membership-driven business model, recurring fee income, resilient sales growth and disciplined execution. Even so, the multiple remains below its 12-month median of 46.32, indicating that valuation has moderated from historical levels.
The premium is even more evident when compared with mass-merchandise retailers. Costco continues to command a meaningful premium over Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) . Costco is trading at a premium to Dollar General (forward 12-month P/E of 15.53) and Target (15.73).
Image Source: Zacks Investment Research
Why Has Costco Stock Pulled Back?Despite another month of resilient sales growth, Costco shares have dropped 6.5% over the past month, modestly underperforming the industry's 5.6% decline. The softness may be tied to the stock’s rich valuation rather than to any deterioration in underlying fundamentals. The moderation in June’s comparable sales growth from the stronger gains recorded in May and April may have also tempered investor enthusiasm.
Over the same period, shares of Dollar General have gained 2.2%, while Target has advanced 1.5%.
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How Are Costco's Earnings Estimates Trending?The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 8 cents to $20.38 and $22.47, respectively, over the past 60 days. The upward revisions suggest that analysts remain confident in Costco's ability to deliver steady earnings growth.
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Can Costco Continue to Command a Premium?Costco’s June sales once again reinforced the strength of its membership-driven business model, supported by healthy comparable sales growth and continued digital momentum. Improving earnings estimates further lend support. However, given its significant premium to the industry, Costco will need to sustain strong execution to justify its valuation and drive the stock higher.
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consumer advocate Clark Howard has long pointed out an oddity about Costco that almost no other big-box retailer can match: the company frequently sells inventory before it even has to pay the supplier for it. That is a genuine cash flow superpower, and it sits underneath the pricing model that has made Costco (NASDAQ:COST | COST Price Prediction) the most unusual retailer in America.
The Pricing Secret Hiding in Plain Sight Costco makes its money on membership fees, using razor-thin retail margins on merchandise to lock members in. Trailing profit margin sits at just 3.01% and operating margin at 3.67%, yet return on equity is 29.1%. That combination only works because inventory turns fast enough to fund itself.
CEO Ron Vachris said it plainly on the fiscal Q3 2026 call: “Our goal is to be the first to lower prices and last to raise them.” He backed it up with specific Kirkland Signature cuts, including Crispy Wings from $16.99 to $14.99 and king-size sheets from $89.99 to $79.99. CFO Gary Millerchip added that new Kirkland items offer “savings of at least 15% to 20% to the national brand equivalent with equal or better quality.”
Why the Cash Flow Angle Matters When a retailer sells a pallet of Kirkland detergent before the supplier invoice is due, the working capital cycle inverts. Suppliers effectively finance the shelves. That is why Costco can afford to run a reported gross margin of just 11.04% in Q3 2026 while net income still rose 15.19% to $2.19 billion on revenue of $70.53 billion, up 11.58% year over year.
The membership engine is the other half of the trick. Membership fee income hit $1.37 billion in Q3, up 10.7%, with 82.9 million paid members and a 92.2% U.S. and Canada renewal rate. Executive memberships grew 9.6% to 41.2 million and now drive roughly three quarters of sales. For investors watching pattern-recognition setups in long-duration compounders, the loyalty math is the real moat.
What Investors Should Watch Next June 2026 net sales came in at $29.24 billion, up 10.6%, with digitally-enabled comps up 20.9%. RBC Capital Markets initiated with a Sector Perform and a $1,000 price target, praising the model but flagging valuation at roughly 37 times fiscal 2028 EPS. Shares closed at $921.31 on July 10, down 6.83% over the past month but up 6.55% year to date.
The bear case is valuation compression. The bull case is that Costco keeps cutting Kirkland prices while total U.S. retail sales sit at $763.7B in May, in the 90.9th percentile of the trailing year. As long as members keep renewing near 90% and suppliers keep floating the inventory, the pricing secret keeps compounding.
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