Track market-moving stories before they get noisy

Key Takeaways Axon's adjusted EBITDA margin rose 110 basis points to 26.8% in Q2 2026 despite rising operating expenses.AXON's revenues surged 35.3% to $904.4 million, fueled by strong product demand and software adoption.Axon targets a 28% adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.
Axon Enterprise, Inc. (AXON - Free Report) continues to face escalating operating costs. In the second quarter of 2026, its cost of sales rose 35.2% year over year to $357.9 million, while selling, general and administrative expenses increased 20.1% to $291 million. Research and development expenses also climbed 28.4% to $209 million.

Despite these cost pressures, Axon's adjusted EBITDA margin improved 110 basis points year over year to 26.8%, supported by robust revenue growth and global tariff refunds. In the second quarter, its total revenues jumped 35.3% to $904.4 million, surpassing the Zacks Consensus Estimate of $868.4 million. Strong demand for Dedrone, TASER 10 and Axon Body 4 products, along with increased adoption of software solutions, fueled the growth.

Axon is witnessing growing demand beyond U.S. state and local markets, with international bookings nearly tripling year over year in the second quarter. The company also secured major TASER 10 contracts across the Middle East and Europe.

Axon’s emphasis on cost discipline, sales growth and operational efficiency is expected to support margin expansion in the quarters ahead. For 2026, the company projects an adjusted EBITDA margin of approximately 25.5%, largely unchanged from the prior year. Moving ahead, Axon aims to achieve an adjusted EBITDA margin of about 28% by 2028, backed by annual revenues of $6 billion.

Peer’s Margin performanceAmong its major peers, Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is facing cost pressure. In the second quarter of 2026, its cost of product sales increased 33.2% year over year, while its SG&A expenses rose 35.5%. Nevertheless, Kratos Defense’s gross profit margin expanded 80 bps to 21.8% in the quarter. Kratos Defense’s higher margins were driven by 30.5% revenue growth generated during the quarter.

Teledyne Technologies Incorporated’s (TDY - Free Report) cost of sales rose 6.4% year over year in second-quarter 2026. The company’s SG&A expenses also increased 12.8% year over year. Despite the rise in costs, Teledyne Technologies’ adjusted operating margin increased 120 basis points to 23.4% in the quarter. The year-over-year increase was supported by Teledyne’s 9.8% revenue growth.

AXON’s Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research

Shares of Axon have gained 8.8% in the past six months against the industry’s decline of 16.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 42.01X, above the industry’s average of 31.63X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

Key Takeaways HHH shares fell 9.3% YTD as elevated financing costs and intense real estate competition took a toll.HHH's Q2 net new home sales rose 12%, while master-planned communities EBT grew 32% to $134.7M.HHH acquired Vantage for $2.1B to expand into insurance; Vantage's first-half net income grew 94%. Howard Hughes Holdings Inc. (HHH - Free Report) stock has plunged 9.3% in the year-to-date period, weighed down by elevated financing costs and intense competition.

Rivals like Sky Harbour Group (SKYH - Free Report) and Cyrela Brazil Realty (CYRBY - Free Report) are steadily broadening their services, challenging Howard Hughes’ dominance in real estate development. SKYH stock has gained 5.9%, while CYRBY has increased 27.4% in the year-to-date period.

Investors are now questioning whether Howard Hughes’s struggles represent a deeper problem or an opportunity to buy into a long-term recovery story. Let’s delve deeper into this.

Image Source: Zacks Investment Research

Why Do HHH Shares Fall?Howard Hughes’ shares have faced pressure partly amid concerns over its elevated cost of capital and capital-intensive real estate operations. Management acknowledged that the company’s non-REIT structure has constrained its ability to generate returns on certain real estate investments. Moreover, the company's second-quarter 2026 interest expenses increased 4.8% year over year to $45.8 million. Persistently high financing costs could limit financial flexibility, constrain development investments and weigh on profitability.

Intense competition in the real estate development market has also contributed partly to Howard Hughes’ stock decline. Competition from other master-planned community developers and residential projects pressures land pricing, home sales and development margins. Moreover, competing commercial properties constrain rental growth and occupancy rates.

HHH's Healthy Housing Demand and Land Sales Support GrowthNevertheless, Howard Hughes continues to benefit from healthy housing demand across its master-planned communities despite broader housing market challenges. In the second quarter of 2026, net new home sales increased 12% year over year across the portfolio. The Woodlands Hills recorded 34% growth, followed by Bridgeland at 17% and Summerlin at 2%. The improvement across these communities reflects continued homebuyer interest, providing a favorable backdrop for future residential land sales.

Supported by steady demand, Howard Hughes reported a 32% year-over-year increase in master-planned communities segment earnings before taxes (EBT) to $134.7 million in the second quarter of 2026. Land sales revenues increased to $170.9 million from $125 million, while residential land closings rose to 119.7 acres from 110.5 acres a year earlier. In the first half of 2026, the company sold 206.7 residential acres at an average price of $1.2 million per acre. With an estimated $5.7 billion in margin-adjusted residual land value across its wholly owned communities, the company remains well-positioned to generate future earnings from its land portfolio.

HHH's Vantage Acquisition Creates New Growth OpportunitiesHoward Hughes expanded its business through the $2.1 billion acquisition of Vantage in June 2026, establishing a second operating platform focused on specialty insurance and reinsurance. The acquisition creates opportunities to diversify earnings and support long-term growth beyond real estate.

Vantage reported strong business momentum, with second-quarter 2026 gross and net written premiums increasing 29% year over year to $473 million and $325 million, respectively. Net earned premiums also grew 22% to $295 million, reflecting continued business expansion. For the first half of 2026, Vantage’s net income increased 94% to $86 million, while underwriting income nearly doubled to $23 million.

The company is also strengthening Vantage's investment strategy with a $300 million capital infusion. As of Aug. 31, 2026, its investment portfolio reached approximately $3.6 billion, with 37% allocated to common equities and 62% to cash and short-term investments. This approach, combined with disciplined underwriting, could support higher long-term investment returns and profitable growth.

HHH Shares Trading at Premium ValuationHoward Hughes shares are trading at a premium. In terms of forward 12-month P/E, HHH stock is trading at 17.38X compared with the Zacks Real Estate Development Market industry’s 11.70X.

Image Source: Zacks Investment Research

HHH’s Estimate Revisions Exhibit Positive TrendHoward Hughes’ estimate revisions reflect a positive trend for full-year 2026. The Zacks Consensus Estimate for HHH’s 2026 earnings per share has moved 71.5% upward to $4.75 over the past month.

Image Source: Zacks Investment Research

How to Play the HHH Stock?Howard Hughes’ healthy housing demand, robust land sales and Vantage acquisition support its long-term growth prospects. Although elevated financing costs, competition and premium valuation remain concerns, the positive trend in earnings estimate revisions reinforces optimism about its outlook. Given these growth catalysts, the recent 9.3% decline in HHH shares presents an attractive buying opportunity for investors.

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

Key Takeaways ABM stock jumped 28.2% in six months, with FY26 revenues and EPS projected to grow 5.3% and 16.3% y/y.High-growth infrastructure revenues rose 26% organically, while WGNSTAR added $76.9M in FY26.ABM raised its FY26 free cash flow guidance to $210M, but debt and market softness pose risks.
ABM (ABM - Free Report) stock has gained 28.2% over the past six months, outpacing the industry's 2.4% dip. The Zacks S&P 500 Composite has rallied 12.4% over the same period.

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

The Zacks Consensus Estimate for ABM’s fiscal 2026 revenues is $9.2 billion, implying 5.3% year-over-year growth. For fiscal 2027, the anticipated growth rate is 3%.

The consensus mark for earnings per share (EPS) for fiscal 2026 is pinned at $4, suggesting a 16.3% year-over-year jump. The bottom line is expected to increase 7.5% to $4.3 in fiscal 2027.

Factors That Augur Well for ABM’s SuccessFootprints in High-Growth Infrastructure Markets: ABM is raising exposure to semiconductor, microgrid and data center markets. In the first nine months of fiscal 2026, these businesses generated nearly $775 million in revenues, representing more than 11% of the company’s top line. Revenues increased 26% organically year over year and about 40% including WGNSTAR, with double-digit blended operating margins. Semiconductor revenues rose 65% organically year over year, microgrids increased 17% and data centers grew 8%.

WGNSTAR Strengthens Semiconductor Capabilities: The WGNSTAR buyout contributed $76.9 million to revenues in the first nine months of fiscal 2026 after closing in February. Client-base expansions and the WGNSTAR acquisition resulted in M&D revenues increasing 17.6% year over year in the fiscal third quarter, comprising 7.8% organic growth and 9.9% acquisition-related growth.

Financial Flexibility: The free cash flow (FCF) was $199.6 million in the first nine months of fiscal 2026 compared with $42.4 million in the prior-year period, driven by improved working-capital management and ERP stabilization. Management increased the fiscal 2026 reported FCF guidance to $210 million from the previously provided $185 million. Leverage lowered sequentially to 2.9X in the fiscal third quarter from 3.2X in the second quarter, reaching the company’s below-3X target one quarter earlier than planned.

Risks Faced by ABMMacroeconomic Headwinds Could Limit Growth: ABM remains exposed to commercial real estate conditions and airline economics. Business & Industry revenues declined 2.6% year over year in the third quarter of fiscal 2026, reflecting the large U.K. client exit and continued West Coast softness. Management anticipates the revenue trend to persist in the fourth quarter and does not expect the segment to return to organic growth until around mid-fiscal 2027.

Higher Debt Lowers Flexibility: ABM ended the third quarter of fiscal 2026 with $1.8 billion in total borrowings, although this increased sequentially from $1.9 billion in the second quarter. Interest expenses increased year over year to $29.5 million from $25.3 million in the fiscal third quarter, reflecting higher average debt following WGNSTAR. For the first nine months, interest expenses increased 13.2% year over year to $81.6 million from $72.1 million.

ABM’s Zacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader Zacks Business Services sector include WEX (WEX - Free Report) and Concentrix (CNXC - Free Report) .These two companies presently have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WEX has a long-term earnings growth expectation of 11.3%. WEX delivered a trailing four-quarter earnings surprise of 4.3%, on average.

Concentrix has a long-term earnings growth expectation of 5.4%. CNXC delivered a trailing four-quarter earnings surprise of 1.9%, on average.

Key Takeaways REYN leverages its presence in 95% of U.S. households and leading brands to drive growth.Pricing actions and lower operating costs boosted REYN's adjusted EBITDA in Q2 despite soft retail volumes.REYN targets cost savings through manufacturing efficiency, procurement and supply-chain upgrades. Reynolds Consumer Products Inc. (REYN - Free Report) continues to focus on strengthening its established brands, expanding product innovation and improving operational efficiency amid a challenging consumer environment. Pricing actions, productivity initiatives and disciplined cost management remain central to its growth strategy. The company is also leveraging its strong retail relationships and broad household penetration to reinforce its market position and support long-term profitability.

Brand strength and product innovation remain important growth drivers. Reynolds Consumer has a presence in approximately 95% of U.S. households, with leading brands such as Reynolds Wrap and Hefty. The company continues to invest in these brands, develop products that address changing consumer needs and strengthen its value proposition through retail partnerships. Innovation across cooking, food storage, waste management and disposable tableware provides opportunities to reinforce customer loyalty and support category growth.

Pricing and revenue management are also playing an important role in protecting profitability. The company has implemented pricing actions to recover higher commodity costs, particularly aluminum, while working to limit the impact on consumer demand. In the second quarter of 2026, pricing actions and lower operating costs helped support adjusted EBITDA growth, despite lower retail volumes and higher selling, general and administrative expenses. However, the ability to maintain pricing without further weakening demand remains important to its growth outlook.

REYN is also emphasizing manufacturing efficiency, procurement savings, waste reduction and supply-chain improvements. These initiatives are intended to generate sustainable cost savings and create room for continued investments in brand building, innovation and other strategic priorities. In addition, the company realigned its business segments in 2026 to improve operating efficiency, sharpen its innovation focus and pursue better opportunities in adjacent categories.

Reynolds Consumer is balancing near-term cost pressures and softer retail volumes with investments aimed at strengthening its competitive position. Continued execution on pricing, productivity and innovation will be critical to sustaining earnings growth and improving profitability over the long term.

REYN’s Price Performance, Valuation and EstimatesReynolds Consumer’s shares have gained 3.3% in the past six months compared with the industry’s 1.9% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, REYN trades at a forward price-to-earnings ratio of 13.45X compared with the industry’s average of 14.12X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for REYN’s 2026 earnings per share (EPS) indicates a year-over-year decline of 3.1%, while that of 2027 EPS shows growth of 3.8%. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days. 

Image Source: Zacks Investment Research

Reynolds Consumer currently carries a Zacks Rank #3 (Hold).

Key Picks in the Consumer Discretionary SpaceDuluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see see the complete list of today’s Zacks #1 Rank stocks here.

Duluth Holdings delivered a trailing four-quarter earnings surprise of 122.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 18.6% from the year-ago number.

Columbia Sportswear (COLM - Free Report) engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, and currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 1.9% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 36%, on average.

Ralph Lauren Corporation (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2.

RL delivered a trailing four-quarter earnings surprise of 8.7%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 7.6% from the year-ago number.

Recognition Highlights Company's Leadership in Enabling Advanced Heterogeneous Integration and AI-Driven Semiconductor Innovation

FORT WASHINGTON, Pa., /PRNewswire/ -- Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S" or the "Company") today announced that it has been selected as the recipient of the 2026 SEMI Award for North America, one of the semiconductor industry's highest honors recognizing exceptional technical and commercial contributions to semiconductor manufacturing.

The award recognizes Kulicke & Soffa's pioneering formic acid in-situ bonding technology, an innovative Fluxless Thermo Compression bonding (FTC) solution that addresses critical interconnect scaling challenges and is actively enabling the next generation of heterogeneous integration architectures supporting artificial intelligence, high-performance computing, and advanced photonics applications.

Presented during the CEO Summit Keynotes at SEMICON West, the award underscores the growing industry adoption and significance of K&S's advanced packaging portfolio, including its industry-leading APTURA™ platform.

"As semiconductor performance is now critically dependent on advanced packaging and heterogeneous integration, the industry's ability to scale interconnect density efficiently and economically becomes more important than ever," said Raj Talluri, Chief Executive Officer of Kulicke & Soffa. "We are honored to receive this recognition from SEMI. This award reflects the ingenuity, dedication, and relentless execution of our global teams, who continue to develop innovative solutions which enable customers to overcome the industry's most complex manufacturing challenges."

Traditional Thermo-Compression bonding often requires a post-bond flux cleaning processes that becomes increasingly difficult at finer interconnect pitches. At the same time, hybrid bonding solutions, while highly capable, can introduce significant manufacturing complexity and cost. Kulicke & Soffa's proprietary Fluxless Thermo-Compression bonding technology combines advanced plasma pre-cleaning and in-situ formic acid oxide reduction to deliver high-yield, ultra-fine-pitch interconnect capabilities while simplifying the manufacturing processes and reducing production costs.

FTC technology has become a foundational element of the Company's advanced packaging roadmap and enables customers to pursue interconnect pitches below 10 microns while supporting applications across wafer-level, substrate-level, and panel-level manufacturing environments.

"This recognition validates our innovation-driven strategy of selecting differentiated technologies that solve real customer challenges," said John Molnar, VP & General Manager, Advanced Solutions. "By enabling hybrid-bonding-class performance with more accessible manufacturing, we are accelerating the adoption of advanced packaging solutions required for next-generation AI, high-performance computing, silicon photonics, and other rapidly growing semiconductor markets."

The award further reinforces Kulicke & Soffa's position as a leading provider of semiconductor interconnect solutions. The company's advanced packaging portfolio spans thermocompression bonding, hybrid bonding enablement technologies, wedge bonding, and vertical interconnect solutions that support some of the industry's most complex heterogeneous applications.

As semiconductor complexity continues to increase, interconnect and packaging innovations are now a requirement in delivering system-level performance across the semiconductor space. This award highlights the critical role Kulicke & Soffa is playing to shape the industry's future.

About Kulicke & Soffa

Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity.

About SEMI

SEMI® is the global industry association connecting over 4,000 companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more. 

Contacts

Kulicke & Soffa
Marilyn Sim
Public Relations
P: +65-6880-9309
[email protected]

Kulicke & Soffa  
Joseph Elgindy
Investor Relations
P: +1-215-784-7500
[email protected]

SOURCE Kulicke & Soffa Industries, Inc.

Social media giant Meta Platforms (META +2.74%) has rallied 15% this year as it looks to be on track to hit a new all-time high. The business has done well despite adversity and legal challenges relating to the addictiveness of its platforms.

The company generates billions in revenue from advertisers, and the hope is that its new artificial intelligence (AI) assistant, Muse, could drive even more revenue growth. Despite a market cap of around $2 trillion, the stock doesn't look overpriced and may still have more upside. Could it hit $1,000 in the near future?

Image source: Getty Images.

Meta's stock doesn't look expensive, based on its expected growthAlthough Meta's stock is approaching $800, in terms of earnings, its valuation is not enormous. It's trading at 28 times its trailing earnings. But based on analyst projections of how profitable the business will be in the year ahead, it's at a forward price-to-earnings (P/E) multiple of 22.

A key metric growth investors look at is the PEG multiple, which takes into consideration the earnings multiple and the future earnings growth that analysts expect over the next five years. A PEG of less than 1.0 suggests the stock is a good buy when considering future growth. Meta is just under that cutoff right now.

However, analyst expectations can change over time. If Muse proves to be a big moneymaker for the business, the company's outlook may be more promising, leading to greater returns for shareholders.

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Is Meta's stock worth buying today?Despite the optimism around the business, the consensus analyst price target for Meta's stock is around $796, suggesting it's unlikely to rise much higher. However, the most bullish forecast does project it will reach $1,000. Price targets are typically the levels analysts expect a stock to reach over the next 12 to 18 months.

Meta has a strong business, but I'm not convinced it's worth investing in at its current share price. Its Muse assistant may open up more growth opportunities, but there's also likely to be considerable competition in the space as more companies develop AI assistants. Whether consumers will truly need them and see value in paying for them is also debatable.

The social media stock may hit $800 within a few weeks or even days, but I don't think $1,000 is on the horizon just yet, maybe in the long run. I'd take a wait-and-see approach with the stock first to gauge how well Muse is doing before buying Meta's stock, as its future gains may hinge heavily on how successful its AI strategy proves to be.

Your vibe-coded applications can now be easily run on Android smartphones without having to first go public on the Google Play Store, the tech giant announced on Tuesday. A new feature will allow users to launch their own personal apps on their device via Google Play using their standard Google account, but they will remain completely private.

These personal apps won’t show up in Google Play’s search or listing pages, and won’t be shared with anyone except for the app’s creator.

The idea comes as more people are experimenting with building their own applications via AI for specific, personal needs. However, being able to use that app on their own Android device has meant publishing to Google Play, making it accessible to the Play Store’s some 3 billion users. That led many to limit their vibe-coding efforts to web apps that could run on any device instead of something built natively for Android.

Now, Google says Android device owners can vibe-code an app using Google AI Studio, then launch it for their own use.

Image Credits:Google These apps are still required to comply with Google Play’s existing policies but allow users to experiment more directly with building apps for Android.

Initially, the feature will be available to users in the U.S., age 18 and up.

“That’s why the future of apps on Google Play is personal, secure, and built by everyone — and it’s why Play is leading the charge and moving from ‘there’s an app for that’ to ‘there’s an app for me,’” said Sam Bright, Google’s VP and GM for the Google Play and Developer Ecosystem, in a press briefing ahead of Tuesday’s launch. “We started Google Play with a simple goal: to connect you with the apps you love. But after today, we hope it’s clear: Play has evolved to become so much more than that.”

In the months ahead, the company said that users will be able to share their vibe-coded creations with a network of trusted friends. That means the apps you built for family or friends, or maybe your child’s T-ball league, could be used with a small group of people, without having to go public on the Play Store.

And if the app ever really becomes popular, there will be a way to shift the personal app to one that’s published on the Google Play Store for everyone to try, after completing the trust and safety reviews.

Related to AI’s impact on app development, Google said it’s also building better ways to curate the Google Play experience — for instance, by leveraging Google’s AI to create a personalized game recommendation engine, called Game Finder. The feature, first available in the U.S. in English, will be based on what the user likes to play combined with Google’s knowledge derived from its game community’s 1.2 billion players.

Image Credits:Google Google will also allow users to curate their own lists of games, post questions about games to a new Community Posts section, and join new 48-hour gaming challenges called Sprints, among other gaming-related feature updates.

Image Credits:Google Plus, the Play Store’s built-in AI assistant, Ask Play, is being updated to offer comparisons, allowing users to see the key differences between similar applications. Google Play apps and games will also be more deeply integrated into Gemini’s conversations.

The changes are rolling out alongside Google Play’s new support for an age-range feature that allows parents to share their child’s age range, but not their exact birthdate, with developers to get an age-appropriate experience.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

You can contact or verify outreach from Sarah by emailing [email protected] or via encrypted message at sarahperez.01 on Signal.

Ray Dalio warned the world that AI looks like a classic bubble, then quietly kept Nvidia as Bridgewater's single largest stock holding. When a legendary investor's words and his money point in opposite directions, following the money changes everything.

I keep adding to my NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) position, and the latest push came from a source I didn’t expect: Ray Dalio. At the Forbes Global CEO Conference in Singapore, Dalio said the AI boom resembles a “classic bubble” and that we are nearing one. Then I looked at his portfolio. NVIDIA is Bridgewater Associates’ single largest individual stock holding and third-largest position overall. When a famous investor’s warnings and his holdings disagree, I go with the holdings.

Demand It Can’t Fill Keeps Pulling Me Back
The full AI factory NVIDIA sells includes GPUs, CPUs, networking and the CUDA software that ties them together. My whole thesis rests on one line from the latest earnings call: “NVIDIA Compute is fully utilized across every cloud we serve.” Management expects revenue to grow approximately 70% in fiscal 2028, and it calls that number supply-constrained, because “customers’ forecasts point to our growth doubling next year.”

Three Receipts Behind Every Purchase
First, the growth is speeding up. Revenue for the second quarter of fiscal 2027 hit $96.22 billion, up 105.8% year over year, and Data Center revenue reached $89.02 billion (+117%). Growth sped up for the fourth consecutive quarter, and third-quarter guidance calls for $108.0 billion.

Second, the profitability is elite and the balance sheet is close to bulletproof. Net margin stands at 55.60%, return on invested capital at 92.21%, debt-to-equity at 0.073, and interest coverage at 503x. Fiscal 2026 free cash flow came to $96.58 billion.

Third, the price still works for me, and so does the cash coming back to owners. At a P/E of 46, I’m paying a reasonable multiple for a company that doubled its revenue. NVIDIA returned $26.0 billion to shareholders last quarter, raised its quarterly dividend to $0.25 from $0.01 in May 2026, and still has about $99.0 billion left on its buyback authorization. The 0.018% yield is token income. I own NVIDIA for compounding, and over five years the stock has gained 985.59%.

Why My Money Skips AMD and Broadcom
AMD (NASDAQ:AMD) trades at roughly 224 times earnings with an operating margin of 10.66%. NVIDIA’s operating margin is 60.38%. I’d pay the lower multiple for the far higher margin every time. In its latest quarter, Broadcom (NASDAQ:AVGO) grew revenue 85.5%, a strong number that still trails NVIDIA. Broadcom also lists its indebtedness and reliance on a limited number of large customers as risks.

Risk That Could Actually Hurt Me
NVIDIA has $279 billion in supply commitments, and it caps guarantees to AI cloud partners at $108.5 billion. Days sales outstanding extended to 60 days from 45. China is gone from guidance, and Q1 brought $4.5 billion in H20 charges. If AI spending stalls, those commitments turn into a burden. The stock fell 5.27% last week as Barron’s flagged a warning in its chart.

My thesis holds because the spending keeps climbing. Top hyperscaler capex should reach nearly $800 billion in 2026 and $1.3 trillion in 2027, and management expects supply to stay the constraint at least through the end of fiscal year 28.

What Keeps My Buy Button Active
Vera Rubin carries $40 billion per gigawatt of revenue opportunity, up from Blackwell’s $25 billion, and management expects it to be “the fastest product ramp in NVIDIA’s history.” On top of that, NVIDIA’s new neocloud revenue-sharing model means it gets “paid twice, once on the hardware sale and again through the share of rental revenue.”

Dalio can call it a bubble from the stage. I’ll keep reading his filings, and I’ll keep buying. Riding a mania is fine as long as you plan the exit, and we covered both sides in a free bubble survivor’s handbook.

Contact [email protected] for any questions or corrections.

Netflix NFLX said it secured the rights to broadcast the 2030 World Cup in Spain, which is co-hosting the tournament, and Andorra. It's the company's first broadcast of a major men's international tournament in Spain, where national channel TVE aired the 2026 edition. Netflix didn't disclose financial terms. Netflix shares rose 0.71% as of 10:00 a.m. ET.

The deal reaches beyond Netflix's paying subscribers. One game per matchday will be free to watch in Spain, and Netflix will offer a national free-to-air channel carrying a package that includes all of Spain's games, both semifinals and the final. It hasn't named the channel. Spain won this year's World Cup and will co-host the 2030 edition with Portugal and Morocco.

The rights extend a Netflix push into sports. The current lineup already includes the NFL, MLB, WWE, boxing and MMA. Netflix also holds U.S. and Canadian rights to the 2027 and 2031 Women's World Cups. It reports third-quarter results on October 20.

More and more people are turning to artificial intelligence (AI) chatbots in search of not only answers to queries, but also shopping recommendations. And one thing that analysts have uncovered is that chatbots really like Walmart (WMT +0.25%), with it often being the go-to recommendation.

The company may benefit from this trend, and it could prove to be an underrated catalyst for the retail stock.

Image source: Getty Images.

Being the preferred retailer among AI chatbots could unlock more growth for WalmartAI chatbots can make researching product decisions much quicker and easier for consumers. Increasingly, shoppers are becoming comfortable relying on them for advice on what to buy and where to buy it.

According to a recent survey by Gartner, approximately 34% of consumers in the U.S. would be very willing to use AI to get recommendations for holiday gift purchases. And that’s potentially great news for Walmart, as chatbots appear to gravitate toward it.

Analysts at UBS studied AI tools and found that Walmart was often the "default answer for everyday consumption.” It’s important to remember, however, that AI models evolve over time, and while Walmart may appear to be the preferred option today, it doesn't mean that it will remain the case several months from now.

It does, however, reinforce the strong brand that Walmart has built up over the years, which many consumers and now AI chatbots as well recognize as being synonymous with value.

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Walmart's stock could use a boost, but AI chatbots might not offer enough of a sparkThus far in 2026, Walmart's stock has generated underwhelming returns, up around just 2% and trailing the broader market. The challenge these days is that it's become too expensive over the years, and the stock now trades at more than 40 times its trailing earnings. For Walmart to remain a compelling buy at that level, its growth rate needs to be well into double digits, which it isn’t.

While AI chatbots may help drive more traffic to its stores, I don't think it'll be enough to drastically boost Walmart’s sales and profit numbers. The company has generated more than $730 billion in revenue over the trailing 12 months; it'll take a lot of additional revenue to meaningfully impact its growth rate.

Walmart's stock is expensive, but for investors who are looking to hang on for several years, potentially decades, the good news is that it can make for a solid investment to buy and hold, as it still has plenty of growth opportunities to tap into over the long haul.

ExxonMobil (XOM.N) has told Guyana it will need more offshore gas to ​maximize oil production than the government had expected, potentially leaving less for liquefied natural gas production and exports, two people close ‌to the talks said.

Guyanese officials are now weighing whether to shrink a planned LNG project or skip exports altogether and use the gas for domestic power and petrochemical facilities only. It would deal a blow to the South American nation's ambitions to become a regional energy powerhouse as it continues to grow oil and gas output.

Guyana has been pushing ​a consortium led by Exxon, which controls all of the country's crude and gas production, to deliver as much gas as possible ​so that the nation can monetize its reserves, which rank among the largest in the region.

But the Exxon group, ⁠which also includes Chevron (CVX.N) and China's CNOOC (600938.SS), is forecasting it will need about 2 billion cubic feet per day (bcfd) of gas for reinjection into oilfields ​so it can meet crude output targets at its government-approved projects, the people said.

That required volume would constrain supplies for any gas export projects, including ​a floating LNG facility proposed by Fulcrum LNG, the US developer the government chose in 2024 to build and operate gas infrastructure in the country.

Instead of the 6 million metric tons per annum (mtpa) of capacity initially planned, the project may now have to start with up to 3 mtpa and expand later, the people said.

Exxon has been working to ​determine how much gas its fields can produce and supply, at what cost and on what timeline, one of the people said.

Guyana has been ​seeking greater clarity from Exxon on available gas supplies, Natural Resources Minister Vickram Bharrat told Reuters in an interview earlier this year. He declined to comment this week on ‌the status ⁠of talks.

The government has yet to make a final decision on what it will do with the reduced amount of available gas, frustrating potential investors, the people said. Scaling back the LNG project is the most likely plan, they added.

President Irfaan Ali's administration is focused on getting a much-needed gas-fired power plant running soon, one of the people said. Other industrial projects are likely on the back burner for now, including a proposed bauxite-to-alumina refinery, fertilizer production ​and large data centers.

"We're working with ​the government of Guyana on development ⁠plans that maximize resource recovery and value to the country," an ExxonMobil spokesperson told Reuters on Monday.

Gas development in Guyana requires supply and demand to be developed at the same time, the spokesperson added.

Fulcrum did not respond ​to a request for comment.

With a base of almost 11 billion barrels of oil equivalent in recoverable resources ​and plans for up ⁠to eight offshore developments by 2030, Exxon's Stabroek block in Guyana is the crown jewel of its portfolio and a major engine of growth for the economy of Guyana, among Latin America's least developed countries.

The country has emerged as a notable oil and gas producer in recent years following the discovery of large offshore fields ⁠in the ​last decade.

Exxon's fifth floating output facility arrived in Guyana in August, which is expected to ​begin operations before year-end. In May, the group applied for government approval for Haimara, its ninth project in the country, which along with the eighth project, Longtail, is expected to develop non-associated ​gas and condensate.

PepsiCo (PEP +0.24%) has been a top dividend stock to own for decades. It's been growing its payout and offering investors some great value. But the business hasn't been in great shape of late, and recently it cut its guidance.

Its yield is fairly high at around 4.7%, as the stock has fallen by more than 15% in the past 12 months. With the company facing some greater adversity these days, can investors still depend on its dividend for the long haul, or is it in danger of being cut?

Image source: Getty Images.

The company is facing challengesPepsiCo's business has been growing this year, but it has been at a fairly modest rate. Revenue in its most recent quarter, which ended on Sept. 5, totaled $25.3 billion and was up nearly 6% year over year. But organically, its top line grew by just 3%. Its core earnings per share (EPS) also only rose by a modest 2%.

The company was previously expecting between 5% to 7% growth in core EPS for the full year, but has now reduced that to a range of 2.5% to 3.5%.

With the business making investments into its operations to improve performance and strengthen its future growth, that can adversely impact cash flow, which in turn, may put pressure on the company's dividend.

PepsiCo raised its dividend again this yearIn May, PepsiCo announced a 4% increase to its dividend, boosting it to $1.48 per share each quarter, or $5.92 over the course of a full year. Currently, its payout ratio is at around 70%, which is a healthy rate, suggesting that not only is the dividend safe, but there is room for more increases in the future, even if its growth rate is modest.

PepsiCo is a Dividend King, as it has raised its dividend for 54 consecutive years. While that kind of track record does suggest safety, past performance is not a predictor of the future, and things can change. The good news for investors is that even amid adversity, the dividend still looks safe right now.

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Is PepsiCo stock a bargain buy right now?As a result of the decline in its share price, investors can buy PepsiCo's stock at a discount right now. It's currently trading at a forward price-to-earnings multiple of just under 15, which is based on analyst expectations of how it will do in the year ahead. That's far below the S&P 500 average of 20.

For income investors, this can be a potentially underrated dividend stock to buy right now, with PepsiCo having a tremendous track record for dividend growth. Its business is facing challenges, but it is still growing. As a long-term investment, PepsiCo could make for a good buy today.

Key Takeaways M&T Bank's Q3 earnings are expected to rise 2.3% y/y to $4.98 per share.MTB's net interest income is projected to grow 2.5% to $1.81 billion, supported by lending activity.Higher expenses, declining mortgage revenues, and increased loan-loss reserves may weigh on results. M&T Bank Corporation (MTB - Free Report) is slated to report third-quarter 2026 results on Oct. 16, before the opening bell. The company is expected to have registered year-over-year increases in quarterly revenues and earnings.

In the last reported quarter, the company’s results were supported by higher net interest income (NII) and non-interest income, along with loan growth. However, higher expenses acted as a headwind.

The company has an impressive earnings surprise history. Its earnings surpassed estimates in the trailing four quarters, with an average surprise of 8.95%.

Factors to Influence M&T Bank’s Q3 ResultsLoans & NII: Following solid lending activity in the first half of 2026, loan growth momentum likely moderated in the to-be-reported quarter. Per the Fed’s latest data, commercial and industrial loan demand remained healthy in the third quarter, while consumer and real estate lending stayed steady. This is likely to have supported M&T Bank’s lending activity and growth in average interest-earning assets in the to-be-reported period.

The Zacks Consensus Estimate for average interest-earning assets is pegged at $197.2 billion, indicating a year-over-year rise of 3.3%.

In September 2026, the Federal Reserve raised interest rates by 25 basis points to 3.75-4.00%, citing persistently elevated inflation. As interest rates remained unchanged for most of the quarter, the recent hike is less likely to have a significant impact on MTB’s NII and margin in the third quarter of 2026.

The Zacks Consensus Estimate for NII is pegged at $1.81 billion, indicating an increase of 2.5% from the year-ago reported number.

Fee Income: MTB’s average total deposits are expected to have declined in the third quarter of 2026. This is expected to have adversely impacted revenues from service charges on deposit accounts.

The Zacks Consensus Estimate for the metric is pegged at $108.8 million, indicating a 22.8% decline from the year-ago quarter’s reported figure.

The third quarter was challenging for the mortgage banking business as mortgage rates hovered around 7% and affordability was low. Both origination volume and refinance activity faced persistent headwinds from inventory constraints and a higher-for-longer rate regime. As a result, M&T Bank's mortgage banking revenues are likely to have witnessed a decline in the quarter to be reported.

The Zacks Consensus Estimate for mortgage banking revenues is pegged at $145 million, indicating a 1.4% decline from the year-ago quarter’s reported level.

The consensus estimate for brokerage services income of $42 million implies a 3% increase from that reported in the third quarter of 2026.

The Zacks Consensus Estimate for trust income of $190.3 million suggests a 23.5% rise from the year-ago quarter’s actual.

The Zacks Consensus Estimate for total non-interest income is pegged at $714.5 million, indicating a decline of 4.9% from the year-ago quarter's reported figure.

Expenses: Despite ongoing cost-control initiatives, the company’s expenses are expected to have been elevated in the third quarter of 2026, reflecting continued investments in strengthening its franchise.

Asset quality: After setting aside a decent amount for potential loan losses in the first half of 2026, M&T Bank is likely to have increased reserve building in the to-be-reported quarter, as the recent Fed rate hike and expectations of another hike later this year could weigh on borrowers’ repayment capacity.

What Our Quantitative Model Predicts for MTBOur proven model predicts an earnings beat for M&T Bank this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for M&T Bank is +0.73%.

Zacks Rank: M&T Bank currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for MTB’s third-quarter earnings has been revised downward to $4.98 per share over the past seven days. The figure indicates an increase of 2.3% from the year-ago quarter’s actual.

The consensus estimate for revenues is pegged at $2.54 billion, implying a rise of 1% from the year-ago reported level.

Other Stocks That Warrant a LookHere are a couple of other bank stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:

The PNC Financial Services Group (PNC - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 15. The company has a Zacks Rank #3 and an Earnings ESP of +0.80% at present.

Quarterly earnings estimates for PNC Financial have been revised lower to $4.97 over the past week.

The Earnings ESP for Prosperity Bancshares (PB - Free Report) is +0.22% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2026 results on Oct. 28.

Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been revised lower to $1.63 per share.

Key Takeaways Intuitive Surgical submitted a next-generation flexible robotic endoscope to the FDA for 510(k) clearance.The GI platform draws on da Vinci and Ion expertise, but remains noncommercial and at an early stage.Regulatory progress, clinical evidence and physician adoption will determine the platform's growth potential. Intuitive Surgical (ISRG - Free Report) is exploring a new growth avenue in gastrointestinal (GI) care, extending its robotic-assisted technology beyond core soft-tissue surgery and lung diagnostics. On its second-quarter 2026 earnings call, management disclosed that the company had submitted a next-generation flexible robotic endoscope system to the FDA for 510(k) clearance. Designed for placement in the GI tract, the initiative remains in the early stages of development and is not expected to generate revenues in the near term.

The proposed platform reflects Intuitive Surgical’s strategy of applying its robotics expertise to additional disease areas. CEO David Rosa said the company is combining learnings from its da Vinci surgical systems and Ion lung biopsy platform to inform its GI development efforts.

Ion’s commercialization experience is particularly relevant because it demonstrates Intuitive Surgical’s ability to expand beyond traditional soft-tissue surgery into another clinical application. Management has also engaged with GI physicians and care teams to identify areas where robotics could improve therapeutic outcomes and care-team experiences.

The potential market opportunity could be meaningful if the platform progresses successfully through regulatory review and clinical development. Management emphasized that the initiative remains early, with clinical evidence generation and regulatory review still ahead.

For investors, the GI platform represents long-term growth prospects rather than a near-term earnings catalyst. Successful development could allow Intuitive Surgical to extend its established technology, clinical expertise and commercial infrastructure into a new treatment area. The company continues to invest in robotics, instrumentation, imaging and other technologies to reach more patients across additional disease states.

Ultimately, the GI opportunity will depend on regulatory progress, clinical value and physician adoption. While the financial potential remains unquantified, the initiative illustrates how Intuitive Surgical is seeking to broaden its addressable market beyond its existing surgical and lung-diagnostic platforms.

Peer UpdatesStereotaxis (STXS - Free Report) is expanding its market opportunity through innovations spanning robotic navigation, proprietary catheters and digital operating-room solutions. The U.S. launch of MAGiC, following its FDA approval in January, is strengthening Stereotaxis’ electrophysiology offering. Robotic catheter revenues increased nearly 300% sequentially as early adoption progressed.

FDA-cleared Synchrony introduces workflow enhancements, remote connectivity and AI capabilities, with potential applications in non-robotic operating rooms. Meanwhile, GenesisX aims to reduce installation barriers by supporting compatibility with standard X-ray systems. Over the longer term, innovations targeting interventional cardiology, neurointervention and automated stroke treatment could expand Stereotaxis’ addressable market beyond its existing electrophysiology business.

Globus Medical (GMED - Free Report) is using product innovation to strengthen its competitive position across spine, trauma and enabling technologies. The company launched three products during the second quarter, including RELINE ONE, designed to simplify screw placement, and two trauma solutions addressing fixation and surgical workflow. Its FDA-cleared SCRIPT patient-specific spacers and rods could further differentiate Globus Medical by integrating customized implants with Excelsius navigation and planning technology.

Management also highlighted more than 60 development projects and investments in data analytics and AI to improve patient selection and surgical execution. Combined with an expanded sales force, these innovations could deepen market penetration and create opportunities for Globus Medical across additional unmet clinical needs.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 24.5% so far this year compared with a 5.7% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.53, above the industry average. But it is significantly lower than its five-year median of 67.32. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Eli Lilly trades at a premium multiple, yet its revenue growth dwarfs every major pharma peer by a wide margin. Whether that gap justifies buying shares near all-time highs depends on one critical assumption about Lilly's pipeline.

Our 24/7 Wall St. price target for Eli Lilly (NYSE:LLY | LLY Price Prediction) is $1,378.50. That points to 17.83% upside from the current $1,169.93. Our model rates the stock a buy, with high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $1,169.93 Price Target from 24/7 Wall St. $1,378.50 Upside/Downside 17.83% Recommendation BUY Confidence Level 90% Lilly trades at 24x forward earnings while revenue grew 47.7% year over year last quarter. For a stock with a trillion-dollar market cap, that multiple looks modest against the growth. Management has raised 2026 revenue guidance twice, to $85B-$87B, and plans to submit retatrutide in Q1 2027.

Lilly Climbs Back Toward Its Highs After Another Guidance Raise Shares are up 1.81% over the past week, 4.16% over the past month, 9.46% year to date and 39.3% over the past year. The stock sits about 9.5% below its 52-week high of $1,292.65 and 50.2% off its low of $778.94.

Q2 revenue reached $22.97B, ahead of the $20.69B estimate. EPS of $8.38 beat the $6.58 consensus. Mounjaro brought in $9.94B (+91%) and Zepbound $4.93B (+46%).

Since the report, the FDA has approved the once-weekly insulin Onswik and expanded Jaypirca’s label into previously untreated CLL. Lilly has also broken ground on a Houston plant, one of ten U.S. manufacturing sites announced since 2020.

Why Bulls See $1,437 and Beyond Lilly’s pipeline goes well past Mounjaro and Zepbound. In Q2, Foundayo prescribers grew from about 8,000 to 36,000. Medicare’s GLP-1 Bridge Program now covers 20 million eligible Americans at $50 per month.

Analysts expect 2027 EPS of $47.5925, and the high estimate reaches $54.94. The consensus target is $1,330.25, supported by 6 Strong Buy ratings plus 19 Buy ratings. In our bull scenario, the stock reaches $1,437.

Pricing Pressure Is the Risk Worth Watching Lilly’s U.S. price fell 9% in Q2 when rebate estimate adjustments are excluded. Management says rising volume will more than offset lower prices, calling the decline “very much embedded in our guide.” Acquired IPR&D charges of $3.03 per share also cut into Q2 EPS.

Those charges came from one-time deals that added to the pipeline. Retatrutide’s filing pathway still faces litigation over how the drug is classified. Analysts include 1 Sell and 1 Strong Sell rating. The bear case is $1,175.26.

How Lilly Compares to Novo Nordisk and AbbVie Novo Nordisk (NYSE:NVO) is Lilly’s direct GLP-1 rival. The stock trades at 12x forward earnings, but its revenue grew just 2.1% last quarter, and earnings declined 20.6%.

AbbVie (NYSE:ABBV) is a large pharma name with a strong immunology franchise. The shares trade at 16x forward earnings on 10.2% revenue growth.

Company Forward P/E Quarterly Revenue Growth YoY Eli Lilly 24x 47.7% Novo Nordisk 12x 2.1% AbbVie 16x 10.2% Lilly’s premium multiple comes with several times the revenue growth of either peer. Against that background, the 24/7 Wall St. price target looks reasonable.

Growth Outruns the Multiple, So Lilly Rates a Buy Our 24/7 Wall St. price target of $1,378.50 carries a buy rating with 90% confidence. What tips the scale for me is earnings momentum.

The case gets stronger if Foundayo keeps gaining share and retatrutide is filed on schedule. It weakens if price cuts start to outpace volume growth. On the current data, I think Lilly’s valuation understates its growth.

Here is where our model projects Lilly could trade at each year-end if current growth trends and market conditions hold.

Year Price Target from 24/7 Wall St. 2026 $1,221.61 2027 $1,417.01 2028 $1,596.31 2029 $1,747.66 2030 $1,853.50 The projections rest on Lilly continuing to execute its current strategy. Retatrutide’s approval, or deeper GLP-1 price cuts, could move the stock well above or below these figures.

Contact [email protected] for any questions or corrections.

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Lisbon , Portugal - 12 November 2025; Jesse Zhang, Co-founder & CEO, Decagon AI on Centre Stage during day two of Web Summit 2025 at the MEO Arena in Lisbon, Portugal. (Photo By Shauna Clinton/Sportsfile for Web Summit via Getty Images) Shauna Clinton/Sportsfile for Web Summit via Getty Images Buzzy AI agent startup Decagon could be the latest company swept up in a growing wave of AI dealmaking.

The company, which was last valued at $4.5 billion earlier this year, has hired a bank to evaluate acquisition interest, according to people familiar with the matter.

Decagon has held early discussions with cloud software giant ServiceNow and additional companies, the people said. If a deal does not materialize, Decagon could instead raise a new funding round.

The interest in Decagon represents a new shift in the AI boom: after years of huge venture rounds and soaring valuations, tech companies are increasingly looking to buy their way into promising AI markets. Hugging Face was recently acquired by Nvidia for 12.9 billion, and OpenRouter was snapped up by Stripe for around $8 billion.

Growing AI-related businesses are often getting offers at a significant premium to their last valuation, so if Decagon were to accept an offer, it could be considerably higher than its previous $4.5 billion value.

Founded in July 2023 by Jesse Zhang and Ashwin Sreenivas, Decagon uses generative AI to automate customer support for enterprise customers, including Delta, Snapchat, and Ticketmaster. The company has raised over $400 million from a roster of well-known Silicon Valley investors, including Andreessen Horowitz, Index Ventures, Bain Capital Ventures, and Accel. It competes with industry veteran Bret Taylor's Sierra, which was valued at $15.8 billion earlier this year.

A deal would also come as ServiceNow looks to reassure investors that it can adapt to AI’s threat to traditional software businesses. Its shares tumbled earlier this year during the so-called SaaS-pocalypse, when investors feared AI could erode software companies’ profit margins.

It was also punished for making a $7 billion acquisition of the security business Armis, a deal announced late last year. The stock has since rebounded as ServiceNow continues to invest heavily in AI and reshape parts of its business.

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Katie is Editor at Large for Business Insider and also a Global Reporter for the Axel Springer Global Reporters Network, working with sister publications including Politico and The Telegraph. She has been a frequent television commentator and on-stage moderator. She is an LA Press Club award winner for her reporting on SpaceX and has broken more than 1,000 stories, which also earned her the TBPN accolade "scoop athlete of the century."

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Shares of AGNC Investment (AGNC -1.44%) have tumbled amid a surge in the 10-year Treasury yield, which recently hit a 24-year high. The mortgage REIT is currently down nearly 30% from its 52-week high. That has driven up its dividend yield from about 12% to around 16.5% recently.

Here's a look at how much dividend income you'd collect each month if you invested $10,000 at its current yield.

Image source: The Motley Fool.

A lucrative monthly income stream (but there's a catch)AGNC Investment recently traded at around $8.75 per share. A $10,000 investment would buy you almost 1,143 shares at that price. The mortgage REIT currently pays a monthly dividend of $0.12 per share. At that rate, you'd collect $137.16 of dividend income each month, or $1,645.92 each year.

That's a lot more income than if you bought shares at its 52-week high of $12.19. At that price, a $10,000 investment would have only purchased 820 shares. That investment would generate about $98.40 of dividend income each month or $1,180.80 each year, 28% less than you'd collect from the same investment today.

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These examples showcase one of the risks of investing in AGNC. Its stock typically declines when rates rise, as investors demand higher compensation for its higher risk profile relative to lower-risk investments like the 10-year Treasury. That volatility isn't the only risk. Unlike a 10-year Treasury that pays a fixed rate each year, AGNC's dividend payment isn't fixed. The REIT has cut its dividend several times, most recently in 2020 (from $0.16 per share each month to the current $0.12 monthly rate). Despite the volatility and dividend cuts, AGNC's dividend income has more than offset the decline in its stock price over the years.

AGNC Investment currently offers a much higher dividend yield than it has over the past year. However, that's not a guaranteed income stream. Its stock can also be volatile, as we've seen in the past year. As a result, investors need to have a very high risk tolerance before buying AGNC for income.

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 | Source: Applied Materials, Inc.

Company expects strong multi-year growth as global AI infrastructure buildout fuels demand for leading-edge foundry-logic, DRAM and advanced packaging – areas where Applied has built market leadershipExpects wafer fab equipment (WFE) spending to grow faster through 2030 than over the past decade; targets more than 2 percentage points of WFE share gain from calendar 2025 to 2030Targets higher profitability through 2030 with non-GAAP gross margin target of approximately 54 percent and non-GAAP operating margin target of approximately 40 percentCommitted to distribute 80 to 100 percent of free cash flow to shareholders over time SAN FRANCISCO, Oct. 13, 2026 (GLOBE NEWSWIRE) -- At its 2026 SEMICON West Investor Breakfast Presentation held today, Applied Materials, Inc. presented its longer-term growth expectations and outlined how its leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.

“The global buildout of AI infrastructure is driving a new era of growth for wafer fab equipment,” said Gary Dickerson, President and CEO of Applied Materials. “Applied Materials has built leadership in the fastest growing areas of the market that have the greatest impact on AI computing performance, power efficiency and cost, and our advanced services offerings enable chipmakers to increase yield and fab output. Our industry-leading capabilities position Applied for continued growth and outperformance in the years ahead.”

The race for AI computing leadership requires tremendous technology innovation and capacity expansion to support infrastructure scaling, which is fueling sustained WFE investments – bigger than any of the industry’s past growth drivers. The growth and diversity of AI applications from generative to agentic and physical AI require increasing amounts of silicon. Applied expects leading-edge foundry-logic, DRAM and advanced packaging to drive around 75 percent of WFE growth from 2025-2030. Applied has strong number-one process equipment positions in all three areas and is targeting to gain more than 2 percentage points of WFE market share from calendar 2025 to 2030.

To support the industry’s capacity expansion, Applied is utilizing its unique eBeam technology and advanced service solutions to help chipmakers accelerate the ramp of new process nodes and optimize yield, output and cost in high-volume manufacturing. With the industry’s highest resolution and fastest imaging capabilities, Applied’s eBeam equipment portfolio is expected to generate $2 billion in revenue in calendar year 2026. The company is expecting service revenue to grow more than 20 percent this calendar year and to exceed $12 billion in revenue by calendar year 2030, representing a mid-teens compound annual growth rate.

“For the past 10 years, Applied Materials has been making strategic investments to build the industry’s most enabling portfolio for AI computing,” said Brice Hill, Senior Vice President and CFO. “As AI drives wafer fab equipment growth, we are focused on further increasing profitability and operating leverage while investing in R&D programs that will fuel our outperformance into the future.”

Based on the company’s expectations for semiconductor industry growth, Applied is investing to more than double its R&D lab and manufacturing capacity from current levels by 2030. The company yesterday unveiled its new Equipment and Process Innovation and Commercialization (EPIC) Center in Silicon Valley, the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. To date, Applied has announced 15 EPIC Center partnerships with leading chipmakers, systems companies, equipment partners and universities. Applied has also recently expanded its manufacturing infrastructure in Austin, Texas, Singapore and Treviso, Italy.

Non-GAAP Financial Measures
Forward-looking non-GAAP gross margin and non-GAAP operating margin targets for 2030 assume non-GAAP adjustments as applicable for future periods, which we are unable to predict without unreasonable efforts due to their inherent uncertainty. Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less capital expenditures. Management uses non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied’s ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, our business outlook, expectations for our financial performance for calendar year 2026, our business and financial targets for 2030, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

Key Takeaways PBF Energy shares surged 189.4% in a year, outperforming industry peers and the sub-industry's 137% return.PBF's Martinez refinery restart, stronger diesel margins and cost savings support its earnings recovery.PBF's 2026 earnings are projected to skyrocket 698%, while its 5.69X EV/EBITDA trails the industry's 6.25X. PBF Energy Inc. (PBF - Free Report) has delivered an impressive performance over the past year, with shares skyrocketing 189.4%. The stock comfortably outperformed Delek US Holdings, Inc. (DK - Free Report) and HF Sinclair Corporation (DINO - Free Report) , which have surged 123.7% and 133.9%, respectively. PBF also surpassed the sub-industry’s 137% return during the same period.

Image Source: Zacks Investment Research

The strong rally raises a key question: does PBF still offer an attractive buying opportunity? Before concluding, let us examine the company’s operating outlook, earnings prospects and valuation.

Can Stronger Refining Margins Offset Higher Oil Prices?Elevated crude oil prices, driven by Middle East conflicts and supply disruptions, present both challenges and opportunities for PBF. Per the U.S. Energy Information Administration (EIA), WTI crude prices are projected to average $88.21 per barrel in 2026, up from $65.40 in 2025. Since PBF Energy purchases crude oil to manufacture gasoline, diesel and other fuels, higher oil prices increase its feedstock costs.

However, refining profitability depends primarily on crack spreads, the difference between refined-product prices and crude oil costs, along with throughput, crude sourcing and operating expenses. Rising gasoline and diesel prices can support earnings when they increase sufficiently relative to input costs. PBF identifies favorable crack spreads and crude oil differentials as important drivers of refining margins.

The EIA expects tight distillate supplies to keep diesel crack spreads elevated through 2027, supporting PBF’s earnings. Capturing that opportunity will depend on reliable refinery operations and effective cost management.

Restored Operations Strengthen PBF’s Earnings PotentialPBF restarted the fire-affected units at its Martinez refinery in May 2026, restoring production of its full product slate. West Coast throughput increased to 269,900 barrels per day in the second quarter from 203,500 a year earlier. The recovery gives PBF greater operating capacity to capture favorable regional refining margins.

This improvement is particularly relevant in California, where the company estimated gasoline imports at 250,000 barrels per day, representing nearly one-third of demand. Such dependence on imported fuel reinforces the competitive importance of PBF’s operating California refineries when international product supplies are constrained.

Cost Improvements Provide Additional SupportPBF’s Refining Business Improvement initiative offers another potential earnings catalyst. The company reported a 20% reduction in purchased natural gas on a per-barrel, price-adjusted basis compared with the 2024 baseline. The company also expects $60 million in annual procurement savings through contract renegotiations and rebidding.

Lower energy consumption and purchasing costs could improve profitability per barrel and strengthen PBF’s competitiveness across refining cycles. Meanwhile, moving the scheduled fourth-quarter turnarounds at Toledo and Chalmette into 2027 preserves operating availability during late 2026. Martinez’s hydrocracker turnaround was scheduled to finish in October, while Paulsboro’s crude-unit turnaround remained planned for late fall.

Strong Earnings Growth Expected in 2026The Zacks Consensus Estimate for PBF’s 2026 earnings stands at $24.69 per share, indicating 698% whopping year-over-year growth. This projected improvement adds support to the company’s investment appeal as restored production and cost initiatives strengthen its earnings capacity.

PBF’s expected earnings growth also exceeds that of its peers. The Zacks Consensus Estimates for Delek and HF Sinclair indicate surges of 135.6% and 258.7%, respectively.

Image Source: Zacks Investment Research

PBF’s Valuation Remains AttractiveDespite its substantial share-price appreciation, PBF continues to trade at a discount to the industry and its peers. The stock carries a trailing 12-month enterprise value-to-earnings before interest, taxes, depreciation and amortization (EV/EBITDA) multiple of 5.69X, below the industry average of 6.25X.

HF Sinclair and Delek trade at trailing 12-month EV/EBITDA multiples of 6.67X and 6.13X, respectively. PBF’s lower multiple, combined with its projected earnings recovery, strengthens its relative valuation appeal.

Image Source: Zacks Investment Research

Should Investors Buy PBF Stock?PBF’s restored Martinez operations, ongoing cost improvements and exposure to potentially favorable diesel crack spreads support its earnings outlook. Although higher feedstock costs and refinery maintenance remain factors to watch, the company’s strong projected earnings growth and discounted valuation provide compelling reasons to consider the stock.

With these operating and valuation advantages, investors should consider buying PBF Energy, which currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 | Source: Uniti Group Inc.

LITTLE ROCK, Ark., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Uniti Solutions, the leading provider of telecom infrastructure solutions, has launched an “AI Security” offering, powered by Cato Networks, to help business customers combat a new landscape of cyber risks created internally by unsecured employee AI use.

AI is rapidly becoming part of everyday business operations, but much of its use remains difficult for organizations to govern. OpenAI reports that more than 2 million* business customers now use its tools, while Microsoft and LinkedIn found that 78%** of AI users bring their own AI tools to work.

While AI use creates opportunities for innovation and efficiency, it can also introduce new security threats that organizations cannot afford to ignore. This includes the practice of “Shadow AI,” which is the use of AI applications, models, or agents that have not been approved or governed by their organization’s IT and security teams. Unsecured activity can lead to employees leaking company data, as well as AI tools inadvertently exposing sensitive company information such as intellectual property (IP), source code, financial records, and customer information.

“Shadow AI is becoming one of the largest unmanaged risks in the modern enterprise.  It’s already happening at scale, spreading faster than most IT teams can identify; it leads to new blind spots that traditional cybersecurity solutions can’t solve for,” said Mike Flannery, president of Uniti Solutions. “We’re committed to helping our customers stay ahead of today’s threats and tomorrow’s challenges. With Cato AI Security, we’re giving businesses access to advanced protection to help them embrace AI with greater confidence while strengthening their overall security posture.”

AI Security is designed to protect and govern AI interactions, from third-party AI usage and homegrown AI applications to autonomous agents. Cato’s cloud-native solution offers one platform with the complete range of functionality, so businesses can secure the AI they use, protect the AI applications they build, and control their AI agents operating across their network.

AI Security differs from traditional firewalls as it offers visibility into employee AI usage, oversees hundreds of AI tools, understands and inspects prompts and response entered into these tools, enforces real-time guardrails, and identifies and isolates data leaks. For Uniti customers, the service provides visibility into sanctioned and unsanctioned AI usage and enables security teams to apply real-time controls to AI interactions.

Capabilities include:

Discover Shadow AI functions: The tool can automatically inventory every sanctioned and unsanctioned AI app, model, and agent in use across all users and sites, internally.Analyze prompts: The tool can read the intent of prompts, responses, and actions in real time to catch sensitive data and risky behavior, beyond keywords.Enforce real-time guardrails: The tool can block misuse and redact sensitive data inline, so employees keep working and the organization’s data stays where it belongs. To keep up with AI's rapid advancements, AI Security offers businesses a way to reduce the risk of data exposure, improve their compliance posture, protect user IP, and encourage more responsible AI adoption among employees.

“AI adoption is expanding the enterprise attack surface and organizations cannot afford to let security lag behind,” said Lior Cohen, vice president, product management, Security and AI at Cato Networks. “Securing AI requires visibility into how agents and applications access and use enterprise data, control over AI usage, and defenses against AI-targeted threats and data exfiltration. These capabilities are essential to protecting sensitive information, reducing risk, and meeting evolving compliance requirements. Cato AI Security delivers the visibility, control, and protection organizations need today to adopt AI at scale with confidence and strengthen their defenses as threats evolve.”

AI Security is being offered as an add-on service for Uniti Solutions customers who use its Managed Secure Access Service Edge (MSASE) service, powered by the Cato SASE Platform.

Uniti Solutions was just named an “Advanced Partner” by Cato, joining fewer than 2% of Cato’s global partners to achieve this designation.  Find more information on Uniti Solutions and AI Security here.

About Uniti Solutions 
Uniti Solutions, a business unit of Uniti (NASDAQ: UNIT), delivers customized, cloud-enabled connectivity, communications and a full suite of managed connectivity, collaboration, and network security solutions reaching nearly 95% of business, state and local government and education customer locations in the U.S. Additional information about Uniti Solutions is available at solutions.uniti.com. Engage with us on LinkedIn. 

Media Contact:   
Megan Krtek  
[email protected] 

* https://cdn.openai.com/pdf/7ef17d82-96bf-4dd1-9df2-228f7f377a29/the-state-of-enterprise-ai_2025-report.pdf

**https://www.microsoft.com/en-us/worklab/work-trend-index/ai-at-work-is-here-now-comes-the-hard-part

JOHNS CREEK, Ga., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Saia Inc. (NASDAQ: SAIA), a leading provider of less-than-truckload (LTL) transportation services, announced the opening of its newest terminal in Deer Park, New York, further expanding the company’s growing network across the Northeast. The new Long Island facility enhances Saia’s ability to serve customers throughout Long Island and the greater New York metropolitan area while providing additional capacity to support growing shipping demand.

Strategically located in Deer Park, the terminal strengthens connectivity between Long Island businesses and Saia’s nationwide network, helping improve service efficiency, freight movement and market coverage throughout the region. The facility also positions Saia to better support customers operating in one of the country’s most densely populated and economically significant markets.

“Long Island is an important market for our customers, and this investment reflects our ongoing commitment to expanding our network where service, capacity and connectivity matter most,” said Executive Vice President and Chief Customer Officer Ray Ramu. “This new terminal strengthens our presence in the Northeast and enables us to deliver the reliable service, and operational excellence customers expect from Saia.”

The opening continues Saia’s long-term strategy of investing in network growth to increase density in key markets and create more efficient transit times across the country. As the carrier’s network expands, customers continue to benefit from the ongoing improvement of transit times, stronger service coverage and enhanced connectivity across Saia's network. By expanding its geographic footprint, Saia is able to provide customers with greater flexibility, enhanced service and stronger nationwide coverage.

“As we continue to grow, our focus remains on creating a network that delivers value for our customers today while supporting future demand,” added Ramu. “Every terminal investment helps strengthen our ability to connect businesses with the markets they need to reach.”

For more information about Saia and its freight and logistics capabilities, visit Saia.com.

About Saia, Inc.

Saia, Inc. (NASDAQ: SAIA) is a full-service freight and logistics provider with a national footprint built to deliver reliable, flexible shipping solutions. With industry-leading operations and a strong emphasis on the customer experience, the company helps keep freight - and businesses - moving. Saia offers customers a wide range of less-than-truckload, brokered truckload, expedited transportation, and other logistics services. Headquartered in Johns Creek, Georgia, the company operates 219 terminals providing national service. Saia has repeatedly been recognized for its people-centric, safety-driven, and sustainability-minded focus. For more information on Saia, Inc., visit Saia.com. For more information, contact:

Jeannie S. Jump
Saia Corporate Communications
Phone: 770-232-4069 · E-mail [email protected]

 | Source: Verisk Analytics, Inc.

BOSTON, Oct. 13, 2026 (GLOBE NEWSWIRE) -- The Catastrophe and Risk Solutions business at Verisk (Nasdaq: VRSK), a leading strategic data analytics and technology partner to the global insurance industry, estimates insured industry losses to onshore property from Hurricane Isaias will range from USD 1 billion to USD 2 billion. The estimate includes losses from wind and privately insured storm surge resulting from Isaias' landfall in the Florida Panhandle. Wind is expected to account for the vast majority of insured losses.

Meteorological Summary

Hurricane Isaias made landfall near Destin, Florida, at approximately 8:30 p.m. CDT on Oct. 9 as a Category 2 hurricane with maximum sustained winds of 105 mph and a minimum central pressure of 971 mb. The storm weakened rapidly after moving inland and transitioned into a post-tropical cyclone over Alabama early the following morning.

Isaias became the ninth named storm of the 2026 Atlantic hurricane season after developing over the Gulf. The storm steadily intensified over exceptionally warm waters, reaching Category 3 strength with maximum sustained winds of 120 mph before weakening prior to landfall.

Several factors contributed to Isaias' rapid intensification, including near-record sea-surface temperatures for early October, a compact wind field and core structure favorable for strengthening, and slower-than-anticipated development of damaging wind shear. Although increasing shear weakened the storm before landfall, Isaias reached the Gulf Coast as a significant hurricane and generated damaging wind impacts across portions of Florida, Alabama and Georgia.

Putting Damage in Perspective

The most severe wind damage occurred west of Isaias' landfall location, particularly in Florida’s Santa Rosa and northeastern Escambia counties. Reported impacts included roof damage, structural damage, downed trees and widespread debris. In Okaloosa County, the most common damage mechanism was trees falling onto residential structures. Overall, the event was characterized primarily by wind-related damage, including fallen trees, damaged roofs, fencing losses and debris impacts.

Power outages were widespread across the Florida Panhandle, with some counties reporting outages affecting a majority of residents. Additional impacts were reported in Alabama and Georgia, where the weakening storm and its remnants caused downed trees and further power disruptions.

Modeling Insights

The insured industry loss estimate includes losses to onshore residential, commercial and industrial properties and automobiles for building, contents and time-element coverages. The modeled scenarios include losses from wind and storm surge. Losses from precipitation-induced flooding are not expected to be significant for this event.

The estimate does not include:

Losses from precipitation-induced floodingLosses paid by the National Flood Insurance ProgramLosses exacerbated by litigation, fraudulent assignment of benefits or social inflationStorm surge leakage losses paid on wind-only policies due to government interventionLosses to inland marine, ocean-going marine cargo and hull, and pleasure boatsLosses to uninsured propertiesLosses to infrastructureLosses from extra-contractual obligationsLosses from hazardous waste cleanup, vandalism or civil commotion, whether directly or indirectly caused by the eventLosses resulting from the compromise of existing defenses, including natural and man-made leveesLoss adjustment expensesOther non-modeled losses, including those resulting from tornadoes spawned by the stormLosses for U.S. offshore assets and non-U.S. property Verisk continues to monitor the impacts of Hurricane Isaias and assess insured losses as additional claims and damage information become available.

About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, catastrophic events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work. For more, visit Verisk.com and the Verisk Newsroom.

Contact Data Mary Keller Verisk 339-832-7048 [email protected]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering BILL Holdings (BILL - Free Report) , which belongs to the Zacks Internet - Software industry.

When looking at the last two reports, this payment processing software company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 22.69%, on average, in the last two quarters.

For the most recent quarter, BILL Holdings was expected to post earnings of $0.69 per share, but it reported $0.84 per share instead, representing a surprise of 21.74%. For the previous quarter, the consensus estimate was $0.55 per share, while it actually produced $0.68 per share, a surprise of 23.64%.

Price and EPS Surprise

For BILL Holdings, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

BILL Holdings has an Earnings ESP of +0.15% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Earlier this year, Nvidia CEO called Marvell Technology (MRVL -0.21%) the next trillion-dollar business. At around $230 billion, Marvell is a fraction of the size of Nvidia, whose market cap is well over $5 trillion. But the business has been doing exceptionally well, and its share price is up around 200% this year.

Recently, Marvell’s management gave investors more reasons to remain bullish, revealing some promising guidance for the future.

Image source: Getty Images.

Marvell projects revenue to reach $80 billion by fiscal 2031Artificial intelligence (AI) has unlocked massive growth opportunities for Marvell, as it has for other tech companies. In its most recent fiscal year, which ended in January, the company's revenue totaled $8.2 billion, which was up an impressive 42% year over year.

However, in the longer run, by fiscal 2031, management expects revenue to be around $80 billion. With a significantly larger business, it's not difficult to see why Huang is so bullish about Marvell's upside. At about 10 times the size, its valuation could conceivably be 10 times larger as well, which could lead to Marvell blowing past the $1 trillion mark on the way to $2 trillion.

The assumption, of course, is that it continues to trade at multiples similar to those it trades at today and that its margins are comparable. But with so much growth on the horizon, there is clearly a lot of upside for Marvell's stock.

Premium Feature

Moneyball Superscore

88/100

Today's Change

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-0.21

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-0.57

Current Price

$

265.29

Is Marvell's stock a no-brainer buy right now?As demand for custom chips grows due to AI, Marvell is in an excellent position to benefit from those growth opportunities. Its valuation is elevated today, with the stock trading at close to 90 times its trailing earnings, but the company's recent forecast highlighted why it may still be worth buying. With so much more growth in the long run, there's reason to remain bullish that, although the stock may look pricey right now, its valuation may still rise a lot higher in the future.

The caveat, however, is that in five years, a lot could change with respect to AI and the broader tech sector. There may be more competition as well. There's always going to be some risk when looking that far out, as forecasts can change. And that's something investors should consider.

Marvell's stock isn't cheap, and it does price in a lot of future growth already, but for investors who are prepared to hang on for at least five-plus years, this may be one of the better tech stocks to buy right now.

Key Takeaways Quanta shares surged 64.6% YTD, fueled by strong infrastructure demand and improving earnings.Quanta's record $53.4B backlog and strategic acquisitions support its revenue growth outlook.PWR's 36.92X forward P/E exceeds the industry's 23.67X, raising valuation concerns after its rally. Quanta Services, Inc. (PWR - Free Report) has delivered impressive stock market performance in 2026, supported by accelerating investments in electric infrastructure, power generation, data centers and grid modernization. Strong project demand, record backlog and improving profitability have strengthened investor confidence. However, following its substantial rally, the stock's elevated valuation raises questions about the sustainability of further gains.

Quanta's shares have surged 64.6% year to date (YTD), significantly outperforming the Zacks Engineering - R and D Services industry's 17.3% growth. The stock has also outpaced the Zacks Construction sector, which declined 2.3%, and the S&P 500 Index, which advanced 13.8% during the same period.

PWR Stock’s YTD Price Performance

Image Source: Zacks Investment Research

PWR is trading above its 50-day and 200-day moving averages, indicating sustained positive momentum. The rally reflects improving earnings expectations and confidence in Quanta's ability to capitalize on expanding infrastructure spending.

PWR Trades Above 50-Day, Above 200-Day SMAs

Image Source: Zacks Investment Research

Infrastructure Investment Strengthens Quanta's Growth ProspectsQuanta continues to benefit from increasing electricity demand, aging transmission infrastructure and investments in grid reliability. Utilities are expanding generation capacity, upgrading transmission networks and investing in grid modernization to accommodate electrification and growing power requirements.

Demand from artificial intelligence (AI), hyperscale data centers and advanced manufacturing facilities is creating additional opportunities. These projects require extensive electrical, mechanical and power infrastructure, supporting Quanta's expanding presence in technology and large-load markets.

The company's Electric Infrastructure Solutions segment reported 44% year-over-year revenue growth in second-quarter 2026, with operating margin reaching 11.5%. Its Underground Utility and Infrastructure Solutions segment recorded 31% revenue growth, with operating margin improving to 9.1%. These results highlight strong demand and operational execution.

Quanta's total backlog reached a record $53.4 billion at June 2026-end, including $32.3 billion scheduled within 12 months. Electric Infrastructure backlog stood at $43.8 billion, strengthening visibility into future revenues. The company also expects substantial opportunities from multi-year utility and power generation programs.

Acquisitions and Operating Strength Support Further ExpansionStrategic acquisitions are another important growth driver. During the second quarter and July 2026, Quanta acquired Phalcon, Enerfab, Percheron and PSD, strengthening its electrical, mechanical, fabrication and engineering capabilities.

These businesses broaden Quanta's geographic presence and improve its ability to execute complex infrastructure projects. Management expects the acquisitions to contribute approximately $1.2-$1.4 billion in revenues and $120-$140 million in adjusted EBITDA during 2026.

Quanta's self-performing workforce provides additional advantages by improving project execution, resource utilization and scheduling reliability. Its growing manufacturing capabilities, including the Hyosung HICO joint venture for high-voltage circuit breakers, should also strengthen supply-chain support.

Strong second-quarter performance prompted management to raise its full-year 2026 revenue guidance to $39.3-$39.7 billion and adjusted earnings per share (EPS) expectations to $16.45-$16.95. Free cash flow guidance is expected to be between $2 and $2.5 billion, providing financial flexibility for continued expansion.

Higher Earnings Estimates Reinforce PWR's OutlookAnalysts have become increasingly optimistic about Quanta's earnings prospects. Over the past 60 days, the Zacks Consensus Estimate for 2026 EPS has increased to $16.70 from $16.43, while the 2027 estimate rose to $19.41 from $19.23.

PWR’s EPS Estimate Revision Trend

Image Source: Zacks Investment Research

The revised estimates imply year-over-year earnings growth of 55.4% in 2026 and 16.2% in 2027. The Zacks Consensus Estimate for revenue indicates growth of 38.4% and 14.8% for 2026 and 2027, respectively. Importantly, the absence of downward EPS revisions during this period indicates improving confidence in the company's growth trajectory.

Wall Street sentiment remains favorable. Quanta has an average brokerage recommendation of 1.29, with 24 of 28 brokerage firms assigning Strong Buy recommendations. The average price target of $803.67 indicates potential upside of 15.7% from the last closing price.

Image Source: Zacks Investment Research

Premium Valuation and Execution Risks Warrant CautionDespite these favorable developments, Quanta's substantial share price appreciation has pushed its valuation to elevated levels.

PWR currently trades at 36.92X forward 12-month earnings, considerably above the industry's 23.67X multiple and its five-year median of 28.58X. Although the valuation remains within its five-year range of 17.01X-61.73X, the premium suggests that investors have already priced in considerable earnings growth.

PWR Valuation vs Industry - P/E (F12M)

Image Source: Zacks Investment Research

The company also faces execution-related challenges. Large infrastructure projects involve regulatory approvals, permitting requirements, weather disruptions and potential supply-chain constraints. Skilled labor shortages, wage inflation and higher material costs could pressure margins.

Furthermore, acquisition integration and the growing complexity of large-scale projects introduce operational risks. Management expects seasonal moderation in Electric Infrastructure margins during the fourth quarter, highlighting potential quarterly variability.

How Does Quanta Compare With Its Competitors?Quanta competes with MasTec (MTZ - Free Report) , MYR Group (MYRG - Free Report) and Primoris Services (PRIM - Free Report) across several infrastructure markets.

MasTec provides electric transmission, renewable energy and communications infrastructure services. MasTec shares have lost 4.8% YTD, significantly underperforming Quanta. MasTec trades at 17.33X forward earnings, indicating a substantial valuation discount.

MYR Group specializes in electrical construction, transmission, distribution and substation projects. MYR Group shares have gained 43.3% YTD, reflecting favorable utility infrastructure demand. However, MYR Group has trailed Quanta's rally. MYR Group trades at 22.88X forward earnings, below Quanta's multiple.

Primoris Services operates across power delivery, utility infrastructure, renewable energy and pipeline construction. Primoris Services shares have plunged 33.3% YTD, indicating weaker stock performance. Primoris Services trades at 18.75X forward earnings, also considerably below Quanta.

While Quanta has delivered stronger shareholder returns, its valuation premium relative to all three competitors increases the importance of sustained earnings growth.

PWR vs Peer Price Performance (YTD)

Image Source: Zacks Investment Research

Should Investors Hold PWR Stock After Its Rally?Quanta remains well-positioned to benefit from sustained infrastructure investment, expanding electricity requirements and growing data center demand. Record backlog, strategic acquisitions, improving earnings estimates and strong project execution support its medium-term growth outlook.

However, the stock's elevated valuation, substantial YTD gains and exposure to execution risks limit its near-term risk-reward appeal. Although favorable infrastructure demand could support additional upside, much of the expected growth appears reflected in the share price.

Given these competing factors, Quanta's Zacks Rank #3 (Hold) supports maintaining existing positions rather than aggressively pursuing the stock following its sharp rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.