Track market-moving stories before they get noisy

Booking Holdings built a massive Airbnb competitor.

The S&P 500 and Nasdaq Composite indexes have come roaring back from first-quarter lows, but rising tides have not lifted all boats. Some excellent stocks remain underwater through the first five months of the year and are hovering near 52-week lows.

These two are scraping the bottom right now, but look ready to launch off their lows.

Image source: Getty Images.

1. McGraw Hill You may remember McGraw Hill (MH 4.85%) as the leading publisher of textbooks or from when it owned Standard & Poor's. The company went private in 2012 after spinning off Standard & Poor's Global, but it returned to the public markets last July in a slightly different iteration.

The business is still a publisher of educational materials, but instead of textbooks, it offers digital, subscription-based educational content for students of all ages, from pre-K to high school, college, and adult learning.

It is now very much an AI stock, as its vast amount of educational content, which it walls off from outside AI agents and chatbots, is AI-enabled, helping students learn. Its data and protection of said data and content are its biggest advantages.

That's because it's considered higher-value data than chatbots can produce and is designed to help students learn, but not do the work for them. So, it can command higher prices because of the quality of walled-off data and content it produces.

McGraw Hill had its initial public offering (IPO) at about $17 per share last July and is off 30% to around $12 right now. It has had a rough start due to a high amount of debt from leveraged buyouts when it was a private company. This costly debt load contributed to a net loss in the most recent quarter.

The company also took a hit from the overblown sell-off earlier this year in subscription-based software companies for fear of AI disruption. And a recent data breach spooked investors.

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But analysts are bullish on McGraw Hill as it digs out from its debt and grows its pipeline, with remaining performance obligations of $1.7 billion.

The stock has a dirt cheap valuation with a forward price-to-earnings ratio (P/E) of 9. And 92% of analysts rate McGraw Hill stock a buy with a median price target of $19, which suggests nearly 60% upside.

2. Booking Holdings Booking Holdings (BKNG +0.80%) is the largest travel company in the world, with properties like Booking.com, Priceline, Kayak, OpenTable, and many more.

The stock has been a steady winner over the years, averaging a 3-year annualized return of 13%, and 5- and 10-year annualized returns of about 12%. Currently, the stock is down about 28% year to date, reaching a 52-week low of $154 on May 18. That's adjusted for the huge 25-for-1 stock split in April.

Booking stock has plummeted in part because of the threat of a software-as-a-service AI disruption earlier this year, which in Booking's case appears entirely overblown. In fact, AI chatbots are expected to help sites like Booking by funneling searches there and generating higher conversion rates, analysts say.

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The major problems have been geopolitical conflicts and higher gas prices, which have led to expectations of a temporary pullback in travel. Booking even lowered its guidance due to the conflict in the Middle East and its projected impacts on travel.

Still, Booking expects travel to rebound in the second half of the year and projects fiscal-year revenue growth in the low single-digits and adjusted earnings-per-share growth in the low to mid-teens.

This sell-off has brought the valuation of this market leader down to a very attractive level, trading at just 15 times forward earnings. Looking further out, it is even more attractive, as Booking has a five-year price/earnings-to-growth ratio of 0.72, which means it is undervalued relative to long-term earnings projections.

Wall Street remains bullish on Booking stock. Some 83% of analysts rate it as a buy with a median price target of $220. That would represent a 42% return over the next 12 months.

Things could remain choppy until the situation in the Middle East is settled, but the opportunity to get the market-share leader at such a low price is not one that investors should overlook.

KAYAK data shows travelers prioritizing value, proximity, and flexibility as airfare fluctuates

Nearly half of the most-searched flight destinations for U.S. travelers this summer are trending under $500

, /PRNewswire/ -- KAYAK, a leading travel search engine, released its Summer 2026 Travel Report, revealing where Americans are headed this summer, how travel habits are shifting, and where travelers can still find value and book with confidence despite rising prices.

The report shows that while airfare remains unpredictable, Americans are still prioritizing travel and looking for smarter ways to make their summer trip happen. According to new KAYAK data, overall flight interest is up 4% year over year, with domestic travel searches climbing 7% as travelers look to stay a bit closer to home while still making the most of summer. International travel interest also remains strong, particularly for Europe, which continues to rank as the most-searched international region for summer travel.

"Airfares are especially unpredictable this summer, which can make planning trickier, but with some flexibility and the right tools to compare options, travelers can still find affordable ways to get away," said Kayla DeLoache, travel trends expert at KAYAK. "At KAYAK, we want travelers to feel confident they're making smart decisions, whether that means finding a better fare, comparing travel options, or discovering destinations that fit their budget."

Proximity and Value are Driving Summer Travel Trends

Travelers are increasingly gravitating toward destinations that are easier (and often cheaper) to reach, with closer-to-home international escapes seeing some of the biggest spikes in interest year over year.

According to KAYAK data, Santiago de los Caballeros, Dominican Republic (+29%) and Santo Domingo (+24%) rank among this summer's fastest-growing destinations, highlighting strong search interest for warm-weather international trips that don't require a long-haul flight or luxury-level budget.

Domestic destinations are also seeing major momentum, with Valparaiso, Florida (+27%) and Asheville, North Carolina (+24%) among the top trending spots this summer. Meanwhile, World Cup host cities are getting a boost as well, with Kansas City (+25%) and San Francisco (+23%) both seeing significant increases in search interest ahead of this year's matches. Even better for travelers, average airfare to all four destinations is currently coming in under $500 roundtrip, making them standout options for travelers looking to maximize value this summer.

Timing Your Trip Could Save Hundreds

Choosing where to go is only part of the equation this summer, when you travel can make just as big of a difference on your wallet. According to KAYAK data, travelers can save up to 9% on domestic flights and approximately 42% on international flights by booking their travel now and flying between mid-August and early September instead of peak summer weeks. Travelers can unlock even more savings by flying midweek or earlier in the day, traveling on the holidays themselves (like July Fourth), or using KAYAK's Flex Dates tool, which helps identify the cheapest days to fly through calendar-based fare comparisons.

Europe Remains the Most-Searched International Region for Summer Travel

Even as travelers look for ways to save, international travel searches remain strong, especially for Europe. London, Paris, Rome, and Madrid all rank among KAYAK's most-searched international destinations this summer, reinforcing Europe's staying power as a top summer region for U.S. travelers.

Meanwhile, nearby destinations such as Toronto, Mexico City, and Cancún continue to offer some of the lowest international airfares, while European cities including Reykjavik, Dublin, Shannon, and Stockholm are still averaging fares below $900. Even for bucket-list destinations, travelers who compare options and stay flexible can still find strong airfare value this summer.

Smart Travel Tools Helping Travelers Stretch Budgets Further

To help travelers navigate rising costs and changing prices, KAYAK offers several tools designed to uncover savings and simplify planning:

Trip Calculator. As gas prices rise at a faster rate than flight prices, KAYAK's trip calculator compares the cost of flying versus driving using real-time airfare and gas price data. Price Alerts. In this environment, tracking real-time price changes matters more than trying to predict them. Tools like KAYAK's Price Alerts help travelers monitor fares and act when prices drop or stabilize. Explore helps travelers discover destinations that fit their budget based on departure airport and travel dates. Ask AI allows travelers to search and compare trips conversationally. "Flexibility, timing, and having the right travel tools can help travelers plan smarter and feel more confident about the value they're getting this summer."

About KAYAK 
KAYAK, part of Booking Holdings (NASDAQ: BKNG), is a leading travel search engine. With billions of queries across our platforms, we help people find their perfect flight, stay, rental car and vacation package. Trusted by millions of travelers, the KAYAK app makes travel planning seamless on iOS and Android and we also support business travelers with our corporate travel solution.

Methodology 
Full methodology for summer travel trends can be found here.

SOURCE KAYAK

Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and BookingBooking NASDAQ: BKNG Holdings CEO and President Glenn Fogel said the online travel company remains focused on long-term product investment and market-share gains, even as the travel industry faces near-term uncertainty from geopolitical conflict and macroeconomic concerns.

Speaking at an investor conference, Fogel said he continues to view travel as a durable growth market, citing a long-term history of travel spending outpacing global GDP by 1% to 2%. He said rising wealth around the world remains a structural tailwind, particularly because “about half the people on this earth” still cannot afford to travel.

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MarketBeat Week in Review – 04/13 - 04/17 Fogel also pointed to continued migration from offline to digital travel booking as another long-term driver for Booking Holdings. He estimated that roughly one-third of travelers still do not buy travel digitally, creating additional opportunity for the company’s platforms, which include Booking.com, Priceline, Agoda, KAYAK and OpenTable.

“For us, the bigger issue to me is not the secular industry,” Fogel said. “It’s how do we continue to gain share?”

Fogel Emphasizes Long-Term Investment Booking Holdings Down 15%, Is It Time to Buy?Asked about current travel demand and near-term headwinds, Fogel declined to provide incremental short-term commentary beyond the company’s earnings call. Instead, he emphasized that management is focused on building the franchise for long-term returns.

Fogel said Booking Holdings should not allow short-term volatility to derail investment in strategic products and services. He cited the company’s variable cost structure as an advantage, noting that even in 2020, which he described as the worst year ever for travel because of the pandemic, Booking Holdings generated just under $900 million in EBITDA.

“If there’s no demand, I ain’t going to spend a lot of money on performance marketing when there’s no demand,” Fogel said. He said that flexibility allows the company to avoid cutting back on important long-term projects when demand weakens.

AI Seen as a Net Positive Fogel said Booking Holdings sees artificial intelligence as “an absolute net benefit” to the company’s future, though he cautioned that the industry remains in the early stages of understanding how AI will affect travel discovery and booking behavior.

He said consumers are already using AI chatbots for travel discovery and exploration, but that direct booking through those tools is not yet broadly available. Booking Holdings is working with multiple large language model providers globally, Fogel said, while also building AI capabilities into its own products.

Fogel said 65% of users currently come directly to Booking.com, and he wants that figure to increase. He said the company’s direct relationship with customers, its Genius loyalty program, and its supplier relationships provide data and offers that outside search providers or AI platforms may not have.

“Google knows everything about you,” Fogel said. “They don’t know what I can offer to you because you are a Genius Level 3.”

Fogel also described internal AI use cases, including software development and customer service. He said AI can lower customer service costs per contact, reduce overall contacts and in some cases improve customer satisfaction. He gave examples of AI voice interactions that can answer customer inquiries more quickly and at lower cost than traditional call center models.

Connected Trip Still in Early Stages Fogel said Booking Holdings remains in the early stages of developing its “Connected Trip” strategy, which aims to combine accommodations, flights, rental cars, attractions, restaurants and other services into a more integrated travel experience.

The conference moderator noted that connected transactions grew in the high teens in the first quarter and now represent a low double-digit percentage of Booking.com’s overall transactions. Fogel said he is proud of the progress, but believes the opportunity remains largely untapped.

He highlighted the company’s flight business, saying Booking Holdings had no flights offering a few years ago and posted a 28% increase last quarter. Excluding Ctrip.com’s domestic flights, Fogel said Booking may now be the largest third-party seller of flight tickets.

Fogel said OpenTable remains an underused opportunity within the Connected Trip strategy. He described a potential scenario in which Booking.com knows a traveler is staying in an expensive London neighborhood, while OpenTable knows that traveler likes restaurants, allowing the company to present targeted dining offers.

“That’s just one little opportunity,” Fogel said. “It’s so big.”

He said the Genius loyalty program can further enhance Connected Trip by allowing suppliers across verticals to make special offers to high-value travelers in a closed user group.

Margins, Capital Returns and M&A Asked about margins after several years of EBITDA margin expansion, Fogel said the company has flexibility but must balance growth investments with discipline. He said lower marketing costs from higher loyalty and direct traffic could support margins, while expansion into non-hotel verticals may pressure margin profile because those businesses generally carry lower margins than hotels.

Fogel said Booking Holdings’ capital allocation priorities remain investing in the business, pursuing M&A where management has high confidence in returns, and returning excess cash to shareholders. He said the company has bought back about 40% of its outstanding shares over the past dozen years and emphasized that repurchases have reduced the share count.

“If we don’t” see strong internal or M&A opportunities, Fogel said, the company should return cash to shareholders “because they can deploy it better than you can.”

Long-Term Growth Targets Fogel reiterated confidence in Booking Holdings’ long-term ambitions for 8% constant-currency gross bookings growth, 8% revenue growth and 15% adjusted EPS growth, while stressing that results will be volatile over shorter periods.

He said the confidence is based on expected global GDP growth, continued growth in travel, further digital adoption, product improvement, efficiency gains from technology and share repurchases. He also cited recent U.S. performance, saying the company has increased its U.S. growth rate for four quarters and recently reported low-teens growth.

“In the long term, yeah,” Fogel said of the growth goals. “It’s almost, why should I not be?”

About Booking NASDAQ: BKNGBooking Holdings Inc is a global online travel company that operates a portfolio of consumer brands and technology platforms that facilitate the search for and booking of travel services. The company's businesses focus on accommodations, transportation and related travel services through consumer-facing websites and apps as well as partner distribution channels. Booking Holdings was originally founded as Priceline in the late 1990s and adopted the Booking Holdings name in 2018; it is headquartered in Norwalk, Connecticut.

Its core offerings include online reservations for hotels, vacation rentals and other lodging; flight and car rental search and booking; and ancillary services that support travel planning and on-property experiences.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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

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Netflix (NFLX 1.20%) and Booking Holdings (BKNG +0.80%) are two of the most prominent corporations on Wall Street that conducted stock splits over the past year. This hasn't helped either company beat the market. Both have significantly lagged broader equities over this period. However, Netflix and Booking Holdings have qualities that may allow them to turn things around and deliver competitive returns over the next decade, making them attractive buys on the dip. Here's the rundown.

Image source: The Motley Fool.

1. Netflix A lot has happened with Netflix over the past year. The company tried -- and failed -- to acquire Warner Bros., an attempt that some investors, analysts, and lawmakers opposed. It also raised its prices once again, which wasn't well received. Elsewhere, Netflix's co-founder, former CEO, and executive chairman, Reed Hastings, announced that he will not seek reelection to the board of directors, marking the first time since Netflix's founding that he will not have a role within the company.

Before all that, though, Netflix conducted a 10-for-1 stock split, which took effect on Nov. 17. The stock is currently trading at around $88 per share, down 25% over the past 12 months. Netflix's most recent financial results have a lot to do with that. When announcing its first-quarter update on April 16, the company's guidance came in below expectations, sending the stock price sharply lower.

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Can Netflix bounce back? I believe so. The company still has a massive addressable market in the streaming industry, which commands less than 50% of television viewing time in the U.S., according to Nielsen. Netflix's basic blueprint hasn't changed, but the company has evolved. It is increasingly entering corners of the streaming market, such as live sports and long-form video podcasts, that it doesn't yet dominate. Netflix's strong brand name could help it capture significant market share here and boost engagement on its platform.

The company also continues to scale its advertising business, which could turn into an attractive long-term growth driver. Lastly, Netflix should continue creating winning content to strengthen the network effect of its platform, driving growing subscriptions, revenue, and earnings, along with a strong stock performance. At below $90 per share, Netflix looks like an attractive long-term bet.

2. Booking Holdings Booking Holdings performed a 25-for-1 stock split. Shares began trading on a split-adjusted basis on April 6. The move was a bit surprising, given that Booking Holdings CEO Glenn Fogel had previously said he "did not want" the kind of investor who was turned off by the high share price. Nevertheless, given that shares were trading above $4,000 each, the split was well received by many investors.

The company is facing some challenges, though. Notably, some people are increasingly worried that artificial intelligence (AI) will disrupt Booking Holdings' services. Moreover, recent financial results, although not terrible, haven't been as strong as the market wanted. Still, there are reasons why Booking Holdings may perform well over the next decade. First, the company sees significant growth opportunities worldwide, particularly in Asia, which it considers the world's fastest-growing travel market.

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Second, Booking Holdings benefits from a strong moat from network effects. The company's ecosystem includes several websites that partner with hotels, airlines, car rental services, activities, etc. The more travelers use its platform, the more attractive it becomes to companies offering a range of travel services and accommodations, and vice versa. Booking Holdings is one of the leaders in its niche, and its moat makes it likely to remain so.

Third, Booking Holdings is increasingly looking to improve its services through AI. The company has launched various AI tools across its websites that make it easier for its customers to find what they want, for instance. Booking Holdings' shares are down 25% over the past year, but given its attempts to improve its business, its strong competitive edge, and the vast addressable market ahead, the stock could still deliver solid returns over the next decade.

Booking Holdings: Managing Seasonal Revenue CyclesBooking (BKNG +0.80%) provides travel and restaurant online reservation services globally, offering consumers options for flights, rental cars, and hotel distribution.

It recently executed a stock split, and for the quarter ended March 31, 2026, it reported approximately 20% net income margin.

Airbnb: Expanding Global Accommodation OptionsAirbnb (ABNB +1.08%) operates a global online marketplace that connects hosts offering private rooms or vacation homes with guests seeking accommodations.

It established a rewards partnership with Delta Air Lines, while for the quarter ended March 31, 2026, it reported approximately 6% net income margin.

Why Revenue Matters for Retail InvestorsRevenue represents the total sales a business generates before any operating expenses are subtracted. Understanding this top-line figure helps investors evaluate the fundamental demand for a business's core offerings.

Image source: The Motley Fool.

Quarterly Revenue for Booking and AirbnbQuarter (Period End)Booking RevenueAirbnb RevenueQ2 2024 (June 2024)$5.9 billion$2.7 billionQ3 2024 (Sept. 2024)$8.0 billion$3.7 billionQ4 2024 (Dec. 2024)$5.5 billion$2.5 billionQ1 2025 (March 2025)$4.8 billion$2.3 billionQ2 2025 (June 2025)$6.8 billion$3.1 billionQ3 2025 (Sept. 2025)$9.0 billion$4.1 billionQ4 2025 (Dec. 2025)$6.3 billion$2.8 billionQ1 2026 (March 2026)$5.5 billion$2.7 billionData source: Company filings.

Foolish TakeExamining the revenue trends for Booking and Airbnb reveal key insights. Clearly, the third quarter provides a significant sales bump to both as a result of the summer travel season. Moreover, each company is enjoying year-over-year sales growth, indicating they are experiencing business expansion.

Although Booking’s revenue towers over its rival, Airbnb’s rate of revenue growth is faster. In Q1, Airbnb’s $2.7 billion in sales represented an 18% year-over-year increase while Booking’s $5.5 billion equated to 16% growth.

This suggests Airbnb’s efforts to expand beyond its marketplace for owner-operated travel lodgings are working. The company has added hotels to its offerings, and partnered with other businesses to provide services such as grocery delivery as part of a customer’s vacation stay.

Meanwhile, Booking’s stock has been hammered, dropping to a 52-week low of $150.14 on May 20, due to the U.S. conflict with Iran, which the company cited as a headwind to its business in the region. Consequently, Booking forecasted Q2 revenue to rise between 4% and 6% year over year, a far cry from its 16% Q1 growth.

A month has gone by since the last earnings report for Booking Holdings (BKNG - Free Report) . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

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

Booking Holdings Q1 Earnings & Revenues Beat Estimates, Rise Y/YBooking Holdings reported first-quarter 2026 adjusted earnings of $1.14 per share, beating the Zacks Consensus Estimate by 3.64%. The figure increased 14% year over year.

Revenues of $5.53 billion edged past the Zacks Consensus Estimate by 0.61% and increased 16% year over year and about 10% on a constant currency (cc) basis.

 Revenues as a percentage of gross bookings were 10.3% in the first quarter of 2026, up about 10 basis points year over year, driven by the estimated impact of the situation in the Middle East.

BKNG’s Q1 Top Line in DetailMerchant revenues were $3.70 billion (66.8% of total revenues), up 26.7% year over year. Agency revenues were $1.53 billion (27.6% of total revenues), down 2.3% year over year. Advertising & Other revenues were $306 million (5.5% of total revenues), up 9.3% year over year. The mix underscores the company’s continued scale in its payments-enabled model, which management highlighted as a contributor to revenue growth in the quarter.

First-quarter room nights of 338 million grew 6% year over year, even as the company cited headwinds tied to the Middle East conflict.

Alternative accommodation room nights at Booking.com grew 5.5% year over year, with total listings reaching 8.8 million, up 9% year over year.

Merchant gross bookings grew 24.3% year over year to $38.7 billion, representing 72% of total gross bookings.

Total gross bookings rose 15% year over year to $53.8 billion, with management noting a meaningful foreign-exchange benefit and modest constant-currency accommodation ADR gains.

Approximately 21 million airline tickets were booked across Booking Holdings' platforms in the first quarter, witnessing a 28.5% year-over-year increase.

BKNG’s Q1 Operating ResultsMarketing expense, a highly variable expense line, increased 16.4% year over year. Marketing expense as a percentage of gross bookings was 3.8% in the first quarter of 2026, which was four basis points higher year over year, driven primarily by the situation in the Middle East, as certain bookings sourced through paid channels were subsequently canceled.

Sales and other expenses were $804 million, up 14.6% year over year. As a percentage of total gross bookings, sales and other expenses were 1.5%, similar to the first quarter of 2025. General and administrative expenses declined 29.3% year over year to $100 million, while information technology expenses rose 19.7% to $240 million. Personnel expenses increased to $893 million in the first quarter, up approximately 28.8% year over year.

Adjusted fixed operating expenses increased 14% year over year due to adverse FX changes and $53 million in one-time benefits in the first quarter of 2025.

Profitability reflected operating discipline. Operating income was $1.27 billion, an increase of 19.7% year over year. Net income margin improved to 19.6% compared to 7.0% a year-ago quarter.

Adjusted EBITDA rose 19% year over year to approximately $1.29 billion. Adjusted EBITDA margin was 23.3%, expanded 50 basis points year over year, with the company pointing to leverage in adjusted fixed operating expenses as a key driver of the adjusted profit expansion.

BKNG’s Q1 Balance Sheet & Cash FlowAs of March 31, 2026, the company's cash and investments totaled $16.8 billion, down from $17.8 billion as of Dec. 31, 2025.

Booking Holdings had $15.4 billion of total long-term debt, down from $16.9 billion as of Dec. 31, 2025.

Free cash flow was $3.1 billion, up compared with $1.4 billion reported in the previous quarter.

Shareholder payouts also included a quarterly cash dividend of $0.42 per share. Separately, the company noted that it effected a 25-for-1 stock split on April 2, 2026, and that per-share figures have been retroactively adjusted to reflect the split.

Booking Holdings’ Q2 & 2026 GuidanceFor the second quarter of 2026, room night growth is expected between 2% and 4%. Gross bookings, revenues and adjusted EBITDA are each projected to grow 4% to 6%. Constant-currency gross bookings growth expected at 2% to 4%.

For full-year 2026, BKNG expects gross bookings growth in the high-single-digit to low-double-digit range, constant-currency gross bookings growth in the high-single-digit range, and constant-currency revenue growth in the mid-to-high-single-digit range. Adjusted EBITDA growth is expected to be slightly faster than revenue growth, while adjusted earnings growth is projected in the low-to-mid-teens.

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

The consensus estimate has shifted -7.97% due to these changes.

VGM ScoresCurrently, Booking Holdings has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Booking Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Booking Holdings (BKNG - 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.

Over the past month, shares of this online booking service have returned -2.1%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Internet - Commerce industry, which Booking Holdings falls in, has lost 6.9%. 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, Booking Holdings is expected to post earnings of $2.48 per share, indicating a change of +11.7% 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 $10.44 points to a change of +14.5% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $12.35 indicates a change of +18.3% from what Booking Holdings is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 #3 (Hold) for Booking Holdings.

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 Booking Holdings, the consensus sales estimate for the current quarter of $7.19 billion indicates a year-over-year change of +5.7%. For the current and next fiscal years, $29.4 billion and $32.08 billion estimates indicate +9.2% and +9.1% changes, respectively.

Last Reported Results and Surprise HistoryBooking Holdings reported revenues of $5.53 billion in the last reported quarter, representing a year-over-year change of +16.2%. EPS of $1.14 for the same period compares with $0.99 a year ago.

Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of +0.61%. The EPS surprise was +3.64%.

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.

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.

Booking Holdings 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 Booking Holdings. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

In the latest trading session, Booking Holdings (BKNG - Free Report) closed at $160.59, marking a -2.07% move from the previous day. This move lagged the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.

The online booking service's shares have seen an increase of 2.14% over the last month, surpassing the Retail-Wholesale sector's loss of 6.71% and the S&P 500's loss of 0.03%.

The investment community will be paying close attention to the earnings performance of Booking Holdings in its upcoming release. It is anticipated that the company will report an EPS of $2.48, marking a 11.71% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.19 billion, reflecting a 5.74% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.44 per share and a revenue of $29.4 billion, indicating changes of +14.47% and +9.23%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Booking Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Booking Holdings is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Booking Holdings currently has a Forward P/E ratio of 15.71. This represents a discount compared to its industry average Forward P/E of 16.72.

Meanwhile, BKNG's PEG ratio is currently 0.98. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 0.98 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

After its blockbuster Q1 2026 earnings report that caused shares to gain 9.8%, pharmaceutical behemoth Eli Lilly and Company NYSE: LLY continues to rack up wins. These include a Food and Drug Administration (FDA) proposal that would pressure compounders, as well as strong clinical results for its oral GLP-1, Foundayo.

Eli Lilly and Company Today

LLY

Eli Lilly and Company

$1,137.01 -23.94 (-2.06%)

As of 03:59 PM Eastern

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

52-Week Range$623.78▼

$1,182.73Dividend Yield0.61%

P/E Ratio40.39

Price Target$1,227.74

Now, the company is back in the news with a key development that highlights its strong position in the GLP-1 arena. Lilly has reached an agreement with CVS Health NYSE: CVS, the owner of the nation’s largest pharmacy benefit manager (PBM), Caremark. The agreement will extend coverage of Lilly’s top GLP-1s, allowing patients to access them through their existing insurance.

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Clearly, this is a positive as it should increase demand for Lilly’s products. However, it also weakens Lilly’s biggest competitor, as CVS backtracks on its prior move to cut Lilly out of its coverage.

CVS Reunites With Lilly After Backing NovoWith this announcement, all three of the United States' largest PBMs will soon cover Lilly’s entire portfolio of approved obesity medications. Express Scripts, owned by Cigna Group NYSE: CI, and Optum Rx, owned by UnitedHealth Group NYSE: UNH, already covered the drugs. Caremark will begin to cover Foundayo on June 1, while coverage will begin on Oct. 1 for Zepbound.

However, what makes this announcement particularly interesting is the context. Just over a year ago, CVS struck a deal with Lilly’s main competitor, Novo Nordisk A/S NYSE: NVO. This made Novo’s Wegovy CVS’s preferred GLP-1 treatment and excluded Zepbound from its coverage. Combined with its slightly disappointing earnings report on May 1, 2025, this power move between Lilly’s top rival and the largest PBM sent LLY shares down almost 12%.

Now, CVS has reneged on that decision that delivered a real blow to Lilly shares. According to a CVS spokesperson, “What this change means is that, for those clients that do (choose to provide coverage), they will have equal access to both the Novo and Lilly products, and consumers will have the same co-pays for each.” In other words, if an employer covers GLP-1s for obesity, their employees can access Novo and Lilly’s products equally and for the same co-pay.

This should largely reverse the negative effect of CVS’s initial decision—limiting access to Lilly’s drugs and hurting demand. Additionally, it removes the advantage that Novo had of being the only available option to CVS clients.

Timing is another positive aspect of this decision, as Lilly is looking to increase demand for Foundayo. Its oral GLP-1 has fallen behind Novo’s Wegovy pill—which received FDA approval several months earlier. By now being on equal footing with Novo within Caremark, Lilly may have an easier time catching up. Lilly shares gained by 4% on the day of this announcement as investors noticed the positive implications for the company.

Zooming in on Valuation Amid Lilly’s ReboundDespite the many positive developments that Lilly has seen in late 2026, the stock has underperformed overall. Shares are down around 1% compared to the S&P 500’s gain of over 10%. This comes as its latest earnings really kicked off the recovery—prior to the report, shares were down nearly 21% in 2026. Now, Lilly trades less than 5% below its all-time high. Given this, it is worth examining the stock’s valuation to get a more complete understanding of the outlook for LLY shares.

Currently, the stock trades at a forward price-to-earnings (P/E) ratio near 29x. This is substantially above the S&P 500’s forward P/E near 21x, and even further above the S&P 500 healthcare sector’s forward P/E near 17x. Based on these measures, Lilly’s valuation looks fairly elevated.

However, when compared to Lilly’s own history, that is not the case. Over the past three years, Lilly’s average forward P/E is nearly 43x. Thus, its current level is around 33% below this average—a much more favorable comparison. When looking over the past 52 weeks, Lilly’s average forward P/E is around 30x, just slightly above its current level.

Lilly’s forward P/E has also come down meaningfully from 32x—when the stock traded near its current price in February. This signals that earnings estimates have caught up with the stock price a bit—a positive signal. Overall, Lilly is certainly not a cheap stock, and it will need to continue putting up strong growth in order to maintain its valuation. However, these metrics show that it is also not a name that necessarily screams "overvalued."

Eli Lilly and Company Stock Forecast Today12-Month Stock Price Forecast:
$1,227.74
7.12% Upside

Moderate Buy
Based on 30 Analyst Ratings

Current Price$1,146.19High Forecast$1,400.00Average Forecast$1,227.74Low Forecast$850.00Eli Lilly and Company Stock Forecast Details

Analysts Remain Constructive on Lilly’s Upside PotentialThe outlook for Lilly shares, according to Wall Street analyst price targets, remains positive. The MarketBeat consensus price target on the stock currently sits near $1,227, implying about 15% upside in shares.

The average of targets updated after the company’s earnings report is moderately higher at $1,239.

Among these updates, Rothschild & Co Redburn’s $900 target is the most bearish. Meanwhile, Barclay’s $1,400 target is the most bullish.

Should You Invest $1,000 in Eli Lilly and Company Right Now?Before you consider Eli Lilly and Company, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Eli Lilly and Company wasn't on the list.

While Eli Lilly and Company currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about CVS Health (CVS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

CVS Health currently has an average brokerage recommendation (ABR) of 1.32, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.32 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 20 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 80% and 8% of all recommendations.

Brokerage Recommendation Trends for CVS

Check price target & stock forecast for CVS Health here>>>

The ABR suggests buying CVS Health, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

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.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

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.

Is CVS a Good Investment?In terms of earnings estimate revisions for CVS Health, the Zacks Consensus Estimate for the current year has increased 4.1% over the past month to $7.44.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar 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 #2 (Buy) for CVS Health. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for CVS Health may serve as a useful guide for investors.

Despite Eli Lilly's (LLY 2.05%) dominance in the weight management market, the company has encountered several obstacles in this field, including spotty insurance coverage for its anti-obesity medicine, Zepbound. If Eli Lilly could make headway in that area, it could boost the already fast-growing sales of this medicine. That's why recent news from CVS Health (CVS +1.47%) was so important. Let's look deeper into it.

Image source: The Motley Fool.

CVS Health does a 180 On May 28, CVS Caremark, the pharmacy benefits manager (PBM) under CVS Health's umbrella, announced it would start covering Zepbound on Oct. 1. This news is especially important, as CVS had previously removed the medicine from its formulary. So, this is quite the reversal. Further, CVS Health will also cover Eli Lilly's new GLP-1 pill, Foundayo, effective June 1.

These developments allowed Eli Lilly to catch up to its biggest competitor, Novo Nordisk, whose competing subcutaneous and oral weight loss medicines were already covered by CVS Caremark. Also, as Eli Lilly noted, this decision means the three largest PBMs in the U.S. will cover Zepbound and Foundayo. CVS's decision will help more patients access these medicines at reasonable prices. The expanded access may also help Eli Lilly fend off the threat posed by some telemedicine companies that have built a business model around offering cheaper, knockoff versions of Zepbound.

Today's Change

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Is Eli Lilly stock a buy? Can Eli Lilly continue riding the weight loss tailwind over the next few years, even as competition intensifies? Yes, it can. The drugmaker's coverage progress and early success with Foundayo -- which was only approved in April -- highlight that the anti-obesity market is far from having peaked. Some 80% of Foundayo's patients had never taken GLP-1s before, perhaps because they didn't like injections.

Eli Lilly's broad portfolio can help address the needs of many others who are still sitting on the sidelines. Meanwhile, the company's revenue and earnings are growing much faster than those of its similarly sized peers and continue to impress Wall Street. In the first quarter, Eli Lilly's sales jumped by 56% year over year to $19.8 billion, while its adjusted net earnings per share soared to $8.55, up 156% from the year-ago period.

Further, Eli Lilly has a meaningful lineup and pipeline beyond its core diabetes and weight loss products. Over the next five years, the company should ramp up sales of non-GLP-1 drugs while launching several new ones. Some might argue that, although Eli Lilly is performing well, its shares are far too expensive. They are trading at 29.3x forward earnings, versus an average of 16.9x for healthcare stocks. But Eli Lilly has earned a premium given its fantastic results and strong pipeline. That's why the stock remains attractive at current levels.

Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly. The Motley Fool recommends CVS Health and Novo Nordisk. The Motley Fool has a disclosure policy.

It has been about a month since the last earnings report for CVS Health (CVS - Free Report) . Shares have added about 8.5% in that time frame, outperforming the S&P 500.

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

CVS Health Tops Q1 Earnings and Revenue EstimatesCVS Health Corporation delivered first-quarter 2026 adjusted earnings of $2.57 per share, up 14.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of $2.21 by 16.38%.

Total revenues rose 6.2% year over year to $100.43 billion, topping the consensus mark of $94.37 billion by 6.41%. Operating execution improved across the enterprise, while days claims payable ended the quarter at 42.9 days.

CVS Posts Higher Revenues on Broad Segment Gains

CVS generated revenue growth across all three operating segments in the first quarter. Health Services remained the largest contributor, with segment revenues of $48.24 billion, up 11% year over year, reflecting pharmacy drug mix and brand inflation.

Health Care Benefits revenues increased 3.3% to $35.97 billion, supported by strength in the Government business. Pharmacy & Consumer Wellness revenues were essentially flat at $31.99 billion, as prescription growth and mix benefits were largely offset by regulatory-related price reductions and reimbursement pressure.

CVS Health Expands Consolidated Margins on Operating Leverage

CVS Health’s consolidated profitability improved as operating income rose faster than the top line. Operating income increased 38.7% year over year to $4.68 billion, supported by higher segment contributions and the absence of items recorded in the prior-year period.

From a margin standpoint, gross profit (total revenues less cost of products sold and health care costs) increased to $15.62 billion from $14.40 billion a year ago. Gross margin expanded 40 basis points (bps) to 15.6%, while operating margin improved 110 bps to 4.7%.

Adjusted operating income rose 12.5% to $5.15 billion. Adjusted operating margin also improved 30 bps year over year, reaching 5.1%, aided by lower operating expenses of $10.94 billion compared with $11.02 billion last year.

CVS Health’s Cash Build Offsets Ongoing Debt Obligations

CVS Health ended the quarter with cash and cash equivalents of $9.54 billion, up from $8.45 billion at year-end 2025. Net cash provided by operating activities was $4.25 billion in the first quarter, supporting capital returns and balance sheet actions.

During the quarter, the company repaid $1.52 billion of long-term debt and paid $847 million in dividends. Long-term debt stood at $60.53 billion as of March 31, 2026, leaving continued deleveraging and disciplined capital deployment as important watch items alongside the operating recovery underway across the portfolio.

CVS Raises 2026 Outlook as Costs Stay Elevated

Management raised full-year 2026 targets following the quarter’s performance. CVS lifted its GAAP diluted earnings per share outlook to a range of $6.24-$6.44 (previously $5.94-$6.14) and boosted adjusted earnings guidance to the band of $7.30-$7.50 (earlier $7.00-$7.20). Going by the Zacks Consensus Estimate, adjusted earnings per share for 2026 is forecasted at $7.14.

Meanwhile, revenues for the year are projected to be at least $405 billion. The Zacks Consensus Estimate for the same stands at $406.01 billion.

The company also increased its cash flow from operations outlook to at least $9.5 billion (earlier at least $9.0 billion). CVS said that the update reflects increases in the Health Care Benefits and Pharmacy & Consumer Wellness segments while maintaining a cautious view for the remainder of the year, given elevated cost trends and potential macro headwinds.

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

VGM ScoresCurrently, CVS Health has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

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

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise CVS Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerCVS Health is part of the Zacks Medical Services industry. Over the past month, Avantor, Inc. (AVTR - Free Report) , a stock from the same industry, has gained 14.6%. The company reported its results for the quarter ended March 2026 more than a month ago.

Avantor reported revenues of $1.58 billion in the last reported quarter, representing no change year over year. EPS of $0.17 for the same period compares with $0.23 a year ago.

Avantor is expected to post earnings of $0.19 per share for the current quarter, representing a year-over-year change of -20.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

Avantor has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

The Dow’s industrial-era anchors are quietly outpacing the broader market. Over the past year, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) returned 24.37%, and the Dow tracker returned 20.22%. Three “old economy” Dow components have left both benchmarks in the dust, and they share more than just a ticker on the same index.

What unites them:

Hard-asset moats (industrial machinery and dealer networks, a global capital franchise, a national pharmacy and insurance footprint) B2B and cycle sensitivity (construction and power, dealmaking and trading, healthcare utilization and PBM volumes) Dominant market positions with steep scale barriers. Each is also leveraging the AI buildout to drive recent earnings beats. Here is the countdown.

3. CVS Health CVS Health (NYSE: CVS | CVS Price Prediction) shares have advanced 52.1% over the past year to $95.93. The Q1 2026 report delivered adjusted EPS of $2.57 against a $2.21 consensus, a 16.47% beat, on revenue of $100.43 billion. Aetna led the way, with Health Care Benefits adjusted operating income surging 52.6% to $3.04 billion as the medical benefit ratio improved to 84.6%.

Management raised FY26 adjusted EPS guidance to $7.30 to $7.50 and launched Health100, a health tech subsidiary built on Google Cloud AI. Aetna now processes 83% of prior authorizations in real time. The analyst consensus target sits at $103.04. Forward P/E of 13x keeps the valuation modest. Risks include pharmacy reimbursement pressure, drug pricing regulation, and a $5.72 billion goodwill impairment last year that still hangs over the Health Care Delivery unit.

2. Goldman Sachs Goldman Sachs (NYSE: GS) trades at $1,038.68, up 71.4% over the past year. Q4 2025 EPS came in at $14.01 versus an $11.76 estimate, a 19.13% beat, capping a year of four consecutive double-digit earnings beats. Full-year EPS was $51.32 on net income of $17.18 billion, the second-highest annual result on record.

Advisory fees jumped 41% year over year in Q4, Equities financing hit a record $2.13 billion, and AUM reached $3.61 trillion. CEO David Solomon said the firm expects momentum to accelerate in 2026, “activating a flywheel of activity across our entire firm.” The “One GS 3.0” AI productivity push, a 12.5% dividend hike to $4.50, and $12.36 billion in 2025 buybacks underscore the capital-return story. The consensus target of $947.60 is already below the current quote, and ratings skew toward Hold.

The shares may be pricing in much of the M&A revival Goldman’s own outlook flags, with a 15% expected increase in completed U.S. M&A deals in 2026.

1. Caterpillar Caterpillar (NYSE: CAT) is the runaway leader here. Shares trade at $904.28, up 159.1% over the past year and 57.9% year to date. Q1 2026 EPS of $5.54 beat the $4.64 consensus by 19.30%, on revenue of $17.42 billion (+22.2% year on year).

The engine is Power Generation, which grew 41% in Q1 on data center demand for large reciprocating engines and turbines. Jim Cramer recently called CAT “infrastructure money, construction money and data center money,” noting “CAT generators to back up the usual power sources” as a hidden data center opportunity. CEO Joe Creed pointed to a “record backlog” as a foundation for momentum. Buybacks totaled $5.0 billion in Q1 alone. The consensus target is $936.99, with 14 Buy and 11 Hold ratings. Forward P/E of 37x is rich for a cyclical, and Q4 carried $1.03 billion in tariff-driven manufacturing costs. The bull case rests on Vanguard’s projection that AI spending will add another $450 billion in investment in the coming year.

The Common Thread The opening premise is borne out by the data. Each name pairs an irreplaceable physical or franchise moat with cycle-leveraged B2B exposure and a dominant competitive position, then layers an AI-era growth vector on top. Caterpillar sells the picks and shovels of the data center buildout, Goldman is monetizing the dealmaking flywheel while running AI through its own back office, and CVS is wiring Aetna and Caremark into a Google Cloud AI platform. Investors weighing fresh entries should respect the cyclical reversal risk, tariff drag, and healthcare regulatory pressure that still underlie these stories. These old-economy stocks are leading the market.

CVS Health faced intense investor scrutiny in 2024 and 2025 amid efforts to recover from a downturn but has since turned things around. Q1 2026 results showed that the insurance business is exploding for CVS. CVS also posted other positive signs of growth, such as improved retail pharmacy market share.

CVS Health execs discuss how the company is using AI and other technologies to reduce administrative burdens and deliver more proactive care experiences.

Have you been paying attention to shares of CVS Health (CVS - Free Report) ? Shares have been on the move with the stock up 3.4% over the past month. The stock hit a new 52-week high of $100.55 in the previous session. CVS Health has gained 26.6% since the start of the year compared to the -3.6% move for the Zacks Medical sector and the -6.8% return for the Zacks Medical Services industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.

For the current fiscal year, CVS Health is expected to post earnings of $7.44 per share on $409 in revenues. This represents a 10.22% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $425.13 in revenues. This represents a year-over-year change of 12.5% and 3.94%, respectively.

Valuation MetricsThough CVS Health has recently hit a 52-week high, what is next for CVS Health? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 13.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.4X. On a trailing cash flow basis, the stock currently trades at 6.7X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 0.98. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health passes the test. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.

How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Labcorp Holdings Inc. (LH - Free Report) . LH has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Labcorp Holdings Inc. beat our consensus estimate by 3.91%, and for the current fiscal year, LH is expected to post earnings of $18.00 per share on revenue of $14.71 billion.

Shares of Labcorp Holdings Inc. have gained 4.4% over the past month, and currently trade at a forward P/E of 14.73X and a P/CF of 10.68X.

The Medical Services industry is in the top 44% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVS and LH, even beyond their own solid fundamental situation.

Key Takeaways Prologis posted Q1 2026 core FFO of $1.50 per share, topping estimates on strong leasing activity.PLD raised its 2026 cash same-store NOI outlook after 66.7M square feet of leases commenced.Prologis started $1.3B in build-to-suit data center projects to expand beyond logistics real estate. Prologis, Inc. (PLD - Free Report) remains a scaled owner of infill logistics facilities that are central to modern distribution networks. Development, disciplined capital recycling and new strategic capital ventures extend the growth runway, while data centers and energy broaden the platform.

Last month, PLD posted first-quarter 2026 core funds from operations (FFO) per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%. Results were supported by robust leasing activity, while net earnings per share rose to $1.05 from 63 cents in the year-ago quarter.

While shares of this Zacks Rank #2 (Buy) REIT have rallied 15.6% over the past six months, outperforming the industry's growth of 7.9%, there is still room for further appreciation.

Image Source: Zacks Investment Research

Factors That Make Prologis Stock a Solid PickHealthy Operating Performance: Prologis’ infill portfolio remains attractive to distribution users because many sites are near major airports, seaports and ground transportation corridors. In first-quarter 2026, 66.7 million square feet of leases commenced across the owned and managed operating and development portfolio, and management described logistics lease signings of about 64 million square feet as a quarterly record.

Retention was 75.8%, and both average and period-end occupancy were 95.3%. Rent capture stayed positive, with net effective rent change of 31.9% and cash rent change of 16.8% on the Prologis share portfolio in the first quarter of 2026. Cash same-store NOI grew 8.8% in the quarter, and management raised its 2026 cash same-store NOI outlook to 6.25%-7%, supporting continued rent roll-up as leases reset.

Acquisitions & Development: Prologis continues to deploy capital through a mix of acquisitions, development and recycling, allowing it to shift spending as market pricing and funding costs change. In first-quarter 2026, Prologis’ share of acquisitions was $268 million at a 4.7% stabilized cap rate, while development starts were $1.78 billion and stabilizations were $1.11 billion at a 7.6% estimated yield and 34.8% estimated margin.

For 2026, management raised its outlook for development starts to $3.50-$4.50 billion and maintained acquisitions at $1.00 to $1.50 billion. Dispositions are still expected at $1.75 to $2.25 billion, which supports funding for new projects while limiting balance sheet strain.

Data Center Diversification: Prologis is expanding beyond traditional logistics real estate by scaling digital infrastructure that can be paired with its existing land positions. In first-quarter 2026, the company started $1.3 billion of build-to-suit data center developments, and management highlighted this activity as a step forward in building the platform. Data center demand is being shaped by cloud adoption and higher computing intensity. Management’s 2026 capital deployment plan includes data centers within development activity, reinforcing its commitment to scale this business line to diversify earnings.

Balance Sheet Strength and ROE: Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2026, this industrial REIT had a total available liquidity of $6.7 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.3%, with a weighted average term of 8.1 years. Debt to adjusted EBITDA was 4.8X. The company’s credit ratings as of were A2 (Outlook Stable) from Moody’s and A (Outlook Stable) from Standard & Poor’s, enabling PLD to borrow at an advantageous rate.

This REIT’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 6.47% compares favorably with the industry’s 2.2%, reflecting that PLD is more efficient in using shareholders’ funds than its peers. Given its balance sheet strength and prudent financial management, the company is well-poised to capitalize on growth opportunities.

Dividend: Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In February 2026, the company’s board hiked its quarterly dividend by 5.9% to $1.07 per share from $1.01 paid earlier, taking the annualized dividend to $4.28 per share. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 11.09%. Given the company’s solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable over the near term. Check Prologis’ dividend history here.

Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT (CLDT - Free Report) and American Tower (AMT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.27, which indicates year-over-year growth of 24.5%.

The consensus estimate for AMT’s full-year FFO per share is pinned at $10.95, which calls for a 1.8% increase from the year-ago period.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced that Dan Letter, chief executive officer, and Tim Arndt, chief financial officer, will present at REITWeek 2026 on Tuesday, June 2, at 11:00 a.m. ET.

Prologis' presentation will be broadcast live via audio webcast and an audio replay will be available thereafter. The live broadcast and replay can be accessed on https://ir.prologis.com/events-presentations.

About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one – not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

Key Takeaways Prologis is seen as the better REIT pick now, offering a stronger blend of quality and growth.Prologis had record leasing: 64M sq ft signed; cash same-store NOI 8.8%; occupancy 95.3%.Realty Income: 98.9% occupancy, 103.4% rent recapture, and 6.6% YoY AFFO/share growth in Q1. Realty Income (O - Free Report) and Prologis (PLD - Free Report) are two of the best-known REITs, but they give investors very different kinds of real estate exposure. Realty Income, often called “The Monthly Dividend Company,” is built around long-term net leases, a large retail-heavy portfolio and a steady monthly payout. Prologis, on the other hand, is the global leader in logistics real estate, with warehouses, distribution assets, data center opportunities and energy-related growth tied to modern supply chains.

This is a useful comparison for investors looking beyond the broad REIT label. Realty Income offers stability, diversification and income dependability. Prologis offers exposure to logistics demand, digital infrastructure and a development platform that can create value over time.

Both have scale, strong tenant relationships and access to capital, but their growth profiles are not the same. The better choice depends on whether an investor wants a steadier income story or a stronger long-term growth engine.

The Case for Realty IncomeRealty Income’s biggest strength is still its dependable business model. The company owned or held interests in more than 15,500 properties at the end of the first quarter of 2026, leased to 1,786 clients across 92 industries. This level of diversification helps reduce reliance on any single tenant, property type or market. Compared with Prologis, which is more focused on logistics real estate, Realty Income gives investors broader exposure across retail, industrial, gaming and other net lease categories.

The company also continues to deliver steady operating performance. In the first quarter, Realty Income reported 98.9% portfolio occupancy, a rent recapture rate of 103.4% on re-leased properties and 6.6% year-over-year AFFO per share growth. Those are solid numbers for a large, mature REIT. Realty Income also raised its 2026 AFFO per share guidance and increased its full-year investment volume outlook to $9.5 billion, showing that management still sees room to deploy capital at scale.

Another positive is Realty Income’s dividend record. The company has declared hundreds of consecutive monthly dividends and has increased its dividend for more than 31 straight years as a public company. For investors who mainly want predictable income, that consistency is hard to ignore. Prologis also pays a dividend, but Realty Income’s identity is more clearly built around monthly cash returns and a long history of dividend growth.

However, Realty Income’s growth profile is not as exciting as Prologis’. Same-store rental revenues increased only 0.8% in the first quarter, and its 2026 AFFO per share growth guidance points to a low-single-digit growth rate. Its private capital partnerships with Apollo and GIC, along with its U.S. Core Plus fund, could help over time, but the business still looks more like a steady income compounder than a faster-growing real estate platform.

The Case for PrologisPrologis stands out because it sits at the center of global logistics. The company owns or has investments in properties and development projects expected to total about 1.3 billion square feet across 20 countries, serving roughly 6,500 customers. Compared with Realty Income’s more diversified net lease model, Prologis has a sharper focus on warehouses and supply chain infrastructure, which remain critical to e-commerce, retail distribution, manufacturing and business-to-business activity.

Its first-quarter results showed that demand is still healthy. Prologis delivered record leasing, with 64 million square feet of lease signings and 66.7 million square feet of leases commenced across its operating and development portfolio. Occupancy was 95.3%, retention was 75.8%, and cash same-store NOI grew 8.8%. These figures compare well with Realty Income’s steadier but slower same-store rental revenue growth, and they point to stronger internal growth from Prologis’ existing portfolio.

Prologis also has a stronger development engine. During the quarter, it started $1.78 billion of development on its share, with an estimated value creation of $571 million from development starts. Its build-to-suit activity is especially important because it shows that large customers are still willing to commit to new space. Its broader platform includes logistics assets, data centers and energy. The data center angle is especially important, as Prologis has been advancing power-secured sites and build-to-suit projects tied to major technology demand. Realty Income is also deploying capital at scale, but Prologis has a more visible path to creating value through development.

The balance sheet and capital platform add another layer to the case. Realty Income has a solid balance sheet, supported by $3.9 billion of available liquidity, net debt to adjusted EBITDAre of 5.2X and strong investment-grade ratings. Prologis looks even stronger, with $6.7 billion of liquidity, debt-to-adjusted EBITDA of 4.8X, a 3.3% weighted average interest rate and an 8.1-year debt term. Both are well-positioned, but PLD has better financial flexibility.

Prologis also expanded its Strategic Capital platform through partnerships with GIC and La Caisse. Like Realty Income, Prologis is using private capital to grow, but PLD’s platform appears more directly tied to high-growth logistics, data center and energy opportunities.

How Do Estimates Compare for Realty Income & Prologis?The Zacks Consensus Estimate for Realty Income’s 2026 and 2027 sales implies year-over-year growth of 8.55% and 7.33%, respectively. The consensus mark for 2026 and 2027 funds from operations (FFO) per share suggests a year-over-year increase of 3.74% and 3.28%, respectively. Over the past month, estimates for O’s 2026 and 2027 FFO per share have been tweaked southward.

For Realty Income:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Prologis’ 2026 and 2027 sales calls for year-over-year growth of 4.92% and 3.39%, respectively. The consensus estimates for both 2026 and 2027 FFO per share have been revised marginally upward over the past seven days. The figures suggest a year-over-year increase of 6.37% and 7.28%, respectively.

For Prologis:

Image Source: Zacks Investment Research

Price Performance and Valuation of O & PLDSo far in the year, Realty Income shares have risen 9.4%, while Prologis stock has rallied 14.1%. In comparison, the S&P 500 composite has advanced 10.4% in the same time frame. 

Image Source: Zacks Investment Research

O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.70X, which is above its three-year median.

Meanwhile, PLD is presently trading at a forward 12-month price-to-FFO of 22.94X, which is also above its three-year median of 20.81X. Both O and PLD carry a Value Score of D.

Image Source: Zacks Investment Research

Conclusion: PLD Has the EdgeRealty Income remains a strong REIT for investors who value monthly income, high occupancy and a diversified net lease portfolio. It is steady, proven and built for dependable cash flow. However, Prologis looks like the better stock to consider now for investors seeking a stronger blend of quality and growth. Its record leasing, stronger same-store NOI growth, global logistics footprint, development pipeline, and expanding data center and energy opportunities give it more ways to compound over time. Realty Income is the steadier income play, but Prologis has the more compelling long-term growth setup. Estimate revisions also suggest that Prologis stands out as the better REIT pick currently.

While PLD carries a Zacks Rank #2 (Buy), O has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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The First Trust S&P REIT Index Fund (NYSEARCA:FRI) gives investors exposure to American commercial real estate cash flow without picking between malls, warehouses, and senior living towers. Because REITs must distribute at least 90% of taxable income, FRI’s payout rises and falls with rent collected by underlying companies. The question for income investors is whether those rent rolls, concentrated in a handful of large names, can sustain payouts in a 4.4% 10-year Treasury world where refinancing rates sit in the 86th percentile of the past year.

How the rent flows into your account FRI is a plain pass-through vehicle with no options overlay, leverage, or synthetic credit reach. Its distribution equals whatever REIT holdings pay, net of a small expense drag. Dividend safety collapses into one question: are payouts from top constituents covered by real cash flow, and can those balance sheets absorb the current refinancing curve, which now prices 10-year money near 4.5% and 30-year money near 5%? Coverage and leverage drive the verdict.

The six names that carry the distribution Welltower (NYSE:WELL | WELL Price Prediction) is the heaviest weight at roughly $152 billion. Q1 normalized FFO of $1.47 per share against a $0.74 quarterly dividend yields roughly 2x coverage, and management declared its 220th consecutive quarterly payment while raising 2026 FFO guidance to $6.21 to $6.35. Senior management bought shares in February under long-term plans, 33 acquisitions against 2 disposals. This dividend carries minimal risk.

Prologis (NYSE:PLD) covers its $1.07 quarterly dividend with $1.50 Q1 Core FFO, debt-to-EBITDA improved to 4.8x from 5.3x, and a 5.6GW data center power pipeline that monetizes the same land base twice. Simon Property Group (NYSE:SPG) raised its quarterly payout 7% to $2.25, with Real Estate FFO of $3.17 per share and mall occupancy at 96%. Digital Realty Trust (NYSE:DLR) generated $2.04 Core FFO against a $4.88 annual dividend, with the largest hyperscale AI inference lease ever signed behind the guide raise. Coverage is comfortable across all three.

The two names worth scrutinizing are the leveraged ones. Realty Income yields 5.2% and trades at a forward earnings multiple of 39, but the income story rests on AFFO of $1.13 per share covering an annualized $3.25 dividend, roughly 1.4x. Net debt to EBITDA of 5.2x, interest coverage of 1.47x, and $471 million in 2025 impairments mean cushion is real but thin. The monthly cadence holds at 670 consecutive payments, but a rerun of 2022’s rate shock would compress the spread between new investments and borrowing costs that fund the raises.

Iron Mountain is the structural outlier. AFFO covers the $0.86 quarterly dividend at about 1.68x, and data center revenue grew 47%. The balance sheet carries negative stockholders equity of $938 million, $17.1 billion in debt, and interest expense up 15% year over year. CEO William Meaney sold over 256,000 shares on March 1 alone at $108. The dividend is covered today; refinancing math is the variable.

Price versus payout Total return has done the heavy lifting. Welltower is up 18% year to date, Digital Realty up 27%, and Iron Mountain up 53%. Only Realty Income lagged the cohort with a 1.5% one-month decline. Investors are not collecting yield from a sinking NAV, which matters because FRI’s income story dies when capital losses overwhelm the distribution.

The verdict FRI’s distribution looks safe in 2026. All six largest constituents raised full-year guidance, each covers its dividend with FFO or AFFO, and the Fed’s 75 basis points of cuts since September 2025 have eased refinancing pressure. The real risk lives at the tail: Realty Income’s leverage spread and Iron Mountain’s negative equity make the back end of the index more rate-sensitive than the headline yield suggests. For investors focused on diversified REIT income, FRI spreads single-name balance sheet risk across the cohort; investors more focused on dividend growth quality will find that concentration sits in Welltower, Prologis, and Simon.

Prologis, Inc. (PLD) Presents at Nareit REITweek: 2026 Investor Conference Transcript

Prologis (PLD - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Prologis basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Prologis, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for PrologisFor the fiscal year ending December 2026, this industrial real estate developer is expected to earn $6.18 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Prologis. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Prologis to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) will host a webcast and conference call with senior management to discuss its second quarter results, current market conditions and future outlook on Thursday, July 16, 2026, at 9:00 a.m. PT/12:00 p.m. ET.

To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.

A telephonic replay will be available July 16 - July 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."

About Prologis
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

Forward-Looking Statements
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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The Columbia Research Enhanced Real Estate ETF (NYSEARCA:CRED) pays a 3.64% distribution funded by the dividends of its underlying REITs, and that yield is the entire reason most income investors are looking at it. CRED is a small, rules-based fund that has paid quarterly since its April 28, 2023 inception, and the question worth answering is whether the income stream behind that 3.6% number is actually durable.

How CRED Generates Its Distribution CRED is a passive ETF that tracks the FTSE NAREIT All Equity REITs Index methodology after screening out the bottom performers, which leaves it concentrated in the largest, highest-quality U.S. REITs. The fund’s distribution is simply the pass-through of dividends paid by its holdings, minus the 0.33% expense ratio. There are no options premiums, no leverage, and no return-of-capital gimmicks. If the underlying REITs keep paying, CRED keeps paying.

That means dividend safety here is really a question about four or five companies. The top weights are Prologis at 12%, Equinix at 10%, Simon Property Group at 8%, American Tower at 8%, and Digital Realty at 6%. Together they drive roughly 45% of CRED’s income.

What the Top Holdings Are Actually Paying With Prologis (NYSE:PLD | PLD Price Prediction) is the cleanest piece of the portfolio. Q1 2026 Core FFO came in at $1.50 per share against a $1.07 dividend, a payout ratio near 70%. Management raised full-year guidance to $6.07 to $6.23, leverage improved to 4.8x debt-to-EBITDA, and same-store NOI grew 9%. The dividend has risen every year from $0.48 quarterly in 2018 to $1.07 today. This is as safe as REIT income gets.

Equinix is the wrinkle. The data center REIT just raised its dividend 10% to $5.16 quarterly, its 11th straight year of growth, and 2026 AFFO per share guidance of $41.93 to $42.74 covers the roughly $20.64 annualized payout almost twice over. Yet free cash flow was negative $2.57 billion in 2025 because Equinix is spending more than $4 billion a year building AI-driven capacity, and total debt climbed to $21.4 billion from $17.6 billion. AFFO covers the dividend; the growth is being funded with capital markets access. If credit conditions tighten meaningfully, that calculus changes.

American Tower raised its dividend to $1.79 in Q1, with 2026 AFFO guidance of $10.90 to $11.07 per share against an annualized $7.16 payout, a roughly two-thirds payout ratio. 4.9x net leverage leaves modest cushion at current rates, but Q1 free cash flow of $941 million easily funds the distribution.

Simon Property Group just lifted its dividend 7% to $2.25, with 2026 Real Estate FFO guidance of $13.10 to $13.25. Occupancy is 96% and tenant sales hit $819 per square foot. The retail-tenant risk is real in a downturn, but coverage today is comfortable at a 68% payout.

Top Holdings at a Glance Prologis — industrial/logistics REIT with the strongest coverage in the portfolio. Equinix — data center REIT; AFFO covers dividend but capex is heavy. American Tower — cell towers plus data centers; two-thirds AFFO payout. Simon Property Group — mall/retail REIT; comfortable coverage with cyclical risk. Digital Realty — data center REIT rounding out the top weights. Total Return Reality Check A 3.6% yield does not matter if NAV erodes. CRED has held up: shares are up 12% year-to-date and total return since inception is about 33%. The 10-year Treasury near 4.5% is the main pressure point, since higher rates compress REIT valuations and raise refinancing costs.

The Verdict CRED’s distribution is safe in the sense that matters: every major holding generates FFO or AFFO that comfortably covers its dividend, and most are still raising payouts. The structural caveat is that CRED’s $3.38 million in AUM is extremely small, which raises closure risk independent of dividend safety. Income investors who want the same exposure with deeper liquidity should look at Vanguard Real Estate ETF (NYSEARCA:VNQ), which holds many of the same names at a lower expense ratio. CRED’s income is durable. The fund itself is the smaller question.