American Airlines AAL stock opened in the red this morning as lowered profit estimates, volatile jet fuel prices, and lingering margins concerns tempered an otherwise market-beating Q2 release.
Investors are bailing on AAL also because its net income came in down sharply (88%) on a year-over-year basis even though revenue popped more than 16% versus last year.
Following the post-earnings dip, American Airlines shares are down some 25% versus their recent high.
American Airlines’ bottom-line weakness reflects the “structural headwinds” delaying its broader financial turnaround.
The company’s pretax margins – hovering around slim single-digit levels – continue to lag legacy rivals Delta and United Airlines.
Crucially, AAL’s quarterly print suggests the firm’s recent price hikes have been far from sufficient in offsetting the Iran-driven volatility in jet fuel prices.
Adding to pressure in the recently concluded quarter were severe summer weather disruptions that hit key hub operations, compounding labour and maintenance costs.
Meanwhile, rebuilding corporate share remains an uphill climb after previous distribution strategy shifts alienated corporate travel agencies, squeezing yields in high-margin cabin tiers.
Why CEO Robert Isom remains bullish for 2027?Despite near-term turbulence, chief executive Robert Isom remains resolute about the company’s trajectory, saying “we’re set up really well for 2027.”
In a post-earnings interview with CNBC, he emphasized that American Airlines leads the industry in ex-fuel cost efficiency and revenue execution across its core commercial pillars.
The carrier already has 60% of its Q3 revenue booked, supported by “strong demand” for premium seating and rising AAdvantage loyalty program engagement.
Financially, AAL has overhauled its balance sheet, achieving its healthiest debt profile since 2016 after paying down over $13 billion in total debt.
With upcoming fleet decisions for 2030s widebody replacements on the horizon, Isom is convinced that American Airlines shares have unmatched upside potential as macro pressures normalize.
From an investment perspective, AAL stock presents a classic high-risk, high-reward turnaround play.
Trading at low valuation multiples relative to historical averages and legacy peers – the firm offers a deep discount for value-seeking investors willing to tolerate near-term volatility.
However, conservative investors may prefer to wait on the sidelines until margins show consistent expansion toward Delta and United levels, particularly because American Airlines said its loss per share could come in at 65 cents this year.
Isom has now reduced future guidance twice already in 2026. And it’s now like AAL pays a solid dividend to incentivize ownership despite ongoing challenges, too.
That said, investors should note that Wall Street analysts remain bullish as ever on the airline stock for the remainder of 2026.
The consensus rating on American Airlines sits at “Moderate Buy” currently, with the mean price target of just under $20 signaling massive upside potential from here.
Key Takeaways T tied growth and operating leverage to fiber, wireless convergence and a shrinking copper footprint.Advanced Connectivity revenue rose 5.1% as T posted strong phone, fiber and fixed wireless additions.T kept 2026 EPS and cash flow targets intact while raising planned buybacks to about $10 billion. AT&T Inc. (T - Free Report) used its second-quarter call to argue that its investment cycle is starting to show up in both growth and operating leverage. Management’s main message was that fiber, wireless convergence and a shrinking copper footprint are now reinforcing one another.
That framing mattered more than the quarterly beat itself. T reported adjusted EPS of $0.65, ahead of the Zacks Consensus Estimate of $0.59, while revenue of $31.56 billion came in slightly below the $32.04 billion consensus.
AT&T Leans on ConvergenceChief executive officer John Stankey said the quarter validated AT&T’s push to build more high-value converged customers across fiber, fixed wireless and postpaid phones. He pointed to more than 1 million advanced connectivity subscriber additions and a record quarter for combined fiber and fixed wireless net adds.
The company said 42.5% of advanced home internet customers also take AT&T wireless, a figure management framed as evidence that the convergence model is improving lifetime value and churn.
That strategy is also shaping how T thinks about product economics. Stankey said management is less focused on maximizing stand-alone ARPU by product and more focused on total revenue per customer account.
T Sees Margin Upside in ScaleChief financial officer Pascal Desroches said second-quarter service revenue rose 2.7% year over year and adjusted EBITDA increased 5.2%, lifting adjusted EBITDA margin by 110 basis points to 39.1%. Management tied that improvement to scale in fiber and 5G, lower legacy costs and transformation savings.
Within Advanced Connectivity, service revenue rose 5.1% and EBITDA climbed 8.0%. The segment posted 432,000 postpaid phone net adds, 367,000 fiber net adds and 279,000 fixed wireless net adds.
T also said it remains on track to deliver $4 billion of consolidated annual cost savings by the end of 2028. That helped explain why management spent more time on operating leverage than on the headline revenue shortfall versus consensus.
AT&T Pushes Fiber Expansion HarderManagement repeatedly returned to fiber buildout as the core of the longer-term story. The company added more than 1 million total consumer and business locations reached with fiber in the quarter, ending at 38.6 million and reiterating its target to top 40 million by year-end 2026.
Stankey said 2026 will be AT&T’s largest year ever for fiber expansion, including more than 4 million acquired Lumen locations. In Q&A, he said the company is nearing the back end of market-by-market conversion work in the Lumen footprint and expects another step-up in volume as branding and systems conversion are completed.
Desroches added that advanced home internet revenue grew more than 27% year over year, though fiber ARPU was down 1.3% because Lumen subscribers came over at lower ARPUs. Excluding the acquired footprint, fiber ARPU was about flat.
T Keeps Full-Year Targets IntactAT&T reiterated its full-year 2026 outlook, including adjusted EPS of $2.25 to $2.35, free cash flow of at least $18 billion and capital investment of $23 billion to $24 billion. The company also maintained its multi-year targets through 2028.
Desroches said second-quarter free cash flow of $4.7 billion exceeded the company’s own guidance of $4.0 billion to $4.5 billion. He added that third-quarter free cash flow should be roughly stable year over year, with stronger growth expected in the fourth quarter.
On capital returns, management raised its planned 2026 repurchases to about $10 billion from $8 billion previously. That sharper buyback stance was one of the clearest changes in tone on the call.
AT&T Uses Q&A to Sharpen StrategyQuestions from Morgan Stanley, UBS and BNP Paribas pushed management on pricing, fiber monetization and the trade-off between broadband and wireless growth. Stankey’s answers were notably direct: he said T intends to be aggressive across the fiber price continuum, especially when fiber can be bundled with wireless to improve account economics.
A New Street Research analyst also asked whether management’s comments about solving broadband corner cases hinted at more M&A. Stankey rejected that reading and instead pointed to satellite-enabled coverage extensions, including work tied to AST SpaceMobile, as a way to cover the last portion of customer connectivity needs.
Another recurring theme in Q&A was the copper shutdown. Stankey said AT&T now has approval to discontinue legacy services in more than 30% of its wire centers by late 2026, reinforcing the view that legacy cost removal is becoming more tangible.
T Leaves Investors With a Clearer PostureThe overall tone was confident and more expansive than a standard quarterly update. Management argued that stronger growth, higher margins and faster buybacks are all emerging from the same strategic base: denser fiber, better wireless economics and a more deliberate retreat from legacy infrastructure.
That does not make the quarter a simple recap of subscriber gains. It leaves investors with a clearer picture of what T wants to optimize over the next several years: converged account growth, targeted network density and cash returns without backing away from fiber investment.
Zacks Signals Stay Mixed for TT currently carries a Zacks Rank #3 (Hold), alongside a Value Score of A, Growth Score of D, Momentum Score of A, and VGM Score of B. Under the Zacks framework, a Rank #3 can still be held, and stronger style grades are more favorable than weaker ones, but the most attractive combinations are typically Zacks Rank #1 (Strong Buy) or #2 (Buy) paired with A or B Style Scores. You can see the the complete list of today’s Zacks #1 Rank stocks here.
That leaves a mixed but not unfavorable signal set. The strong Value, Momentum and VGM grades compare well with the weak Growth Score, while the Zacks Rank #3 points to a more balanced near-term setup than a clear outperform call. As always, that rank can change as earnings estimate revisions adjust after the quarter.
Key Takeaways T beats second-quarter earnings estimates as profitability and free cash flow improved.Low valuation multiples and planned shareholder returns support AT&T's appeal to value investors.High debt, rising leverage and $23B-$24B in 2026 capital spending keep AT&T's thesis balanced. AT&T Inc. (T - Free Report) has a clearer investment case after its latest earnings beat, but the setup is not a simple value call. The company is generating cash, improving profitability and trading at low valuation multiples.
The question is whether that discount reflects upside potential or the market’s caution about leverage, capital spending and uneven growth.
T Earnings Beat Helps the Bull CaseAT&T reported second-quarter 2026 adjusted earnings of 65 cents per share, up 20.4% year over year and above the Zacks Consensus Estimate of 59 cents by 10.2%. Revenues rose 2.3% to $31.56 billion, but missed the consensus mark of $32.04 billion by 1.5%.
The earnings beat still helps the bullish case because profitability moved in the right direction. Consolidated operating income increased 8.3% year over year, adjusted EBITDA rose 5.2% and the adjusted EBITDA margin expanded to 39.1% from 38%.
Free cash flow also improved, rising 6.3% to $4.67 billion despite higher capital expenditures. That matters for a company that must fund network investment, dividends and buybacks while keeping leverage under control.
AT&T Valuation Looks Cheap but Not Clear-CutAT&T’s valuation is the strongest part of the investment debate. The stock trades at 7.5X trailing 12-month enterprise value to EBITDA, well below 22.0X for the Zacks sub-industry, 20.6X for the Zacks sector and 18.5X for the S&P 500.
The company’s 6- to 12-month price target stands at $26, compared with a stock price of $23.04 as of July 22, 2026. The shares also trade at 10.5X current fiscal-year earnings, which keeps the valuation case anchored in modest expectations rather than aggressive growth assumptions.
Low multiples can support a recovery if AT&T continues to convert fiber and wireless momentum into earnings and cash flow. They can also reflect skepticism about long-term growth quality, especially with legacy services declining and capital needs remaining high.
T-Mobile US Inc. (TMUS - Free Report) is a relevant comparison because it competes for the same U.S. wireless customers and gives investors another benchmark for subscriber growth. Verizon Communications Inc. (VZ - Free Report) is another natural reference point for income-oriented telecom investors, given its similar focus on wireless and broadband connectivity.
T Shareholder Returns Add AppealAT&T’s cash-return profile remains a key attraction. The company has an annualized dividend of $1.11 per share, with a dividend yield of 4.8%.
Management also reiterated plans to return more than $45 billion to shareholders during 2026 to 2028 through dividends and share repurchases. That framework gives income-focused investors a clearer line of sight than a valuation argument alone.
The board authorized an additional $10 billion of common stock repurchases in January 2026. AT&T expects to repurchase about $10 billion of stock in 2026 while maintaining its current dividend.
AT&T Debt and Spending Temper the ThesisThe counterargument starts with the balance sheet. AT&T ended the second quarter of 2026 with net debt-to-adjusted EBITDA of 2.68X, total debt of $144 billion and cash and equivalents of $17.6 billion.
Leverage is expected to rise to about 3.2X after the planned EchoStar spectrum acquisition, before returning to the 2.5X range within about three years. That path depends on steady execution, cash generation and disciplined spending.
The company also expects annual capital investment of $23 billion to $24 billion in 2026. Buybacks and dividends look more attractive when operating trends hold, but they can tighten financial flexibility if revenue growth softens or network spending remains elevated.
What T’s Mixed Signals Mean for InvestorsThe bottom line is that AT&T looks more attractive for value and income investors than for buyers seeking a clean growth story. Earnings execution, free cash flow and discounted valuation support the stock, while leverage, capital intensity and mixed growth trends keep the thesis balanced.
T currently carries a Zacks Rank #3 (Hold). That rank points to a more neutral near-term setup rather than a high-conviction buy signal.
The Style Scores sharpen the distinction. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The Value Score supports the case for discounted valuation, but weaker Growth and Momentum scores suggest investors may want stronger expansion and estimate-revision trends before taking a more aggressive stance.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways T added 367,000 fiber customers as advanced home Internet connections rose 29.5% year over year.Converged households churn at roughly half the rate and deliver a high-single-digit revenue uplift.AT&T targets 70% of wireless traffic on open-capable platforms and $4 billion in annual savings. AT&T Inc. (T - Free Report) is trying to turn connectivity demand into a more durable growth model. Its strategy now leans on fiber, 5G and business network services rather than old media and video assets.
Execution matters. Fiber reach, wireless scale and edge demand can support revenues and margins, while capital intensity and competition remain checks.
AT&T Rides the Fiber Convergence TrendFiber is central to AT&T because it supports more than stand-alone broadband additions. In the second quarter of 2026, the company recorded more than 1 million advanced connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
AT&T added 367,000 fiber customers in the quarter, while advanced home Internet connections rose 29.5% year over year. The convergence rate reached 42.5%, meaning a growing share of those Internet customers also had an AT&T postpaid wireless plan.
That mix matters because management indicated that converged households churn at roughly half the rate of stand-alone accounts and carry a high-single-digit average revenue per account uplift. AT&T ended the quarter with 38.6 million consumer and business fiber locations reached.
T Uses 5G to Broaden Internet ReachAT&T’s 5G strategy supports the fiber push rather than replacing it. The company uses millimeter-wave spectrum in dense areas and mid- and low-band holdings elsewhere to balance capacity and coverage.
Management has tied fiber and 5G together in a converged network that reaches more than 90 million customer locations with advanced Internet services over either fiber or 5G. Fixed wireless is one sign of that broader reach, with AT&T adding 279,000 fixed wireless customers in the second quarter.
T-Mobile US, Inc. (TMUS - Free Report) remains a relevant benchmark in wireless and home broadband competition. Its presence keeps pressure on carriers to pair network quality with attractive customer offers.
AT&T Pushes Toward AI-Ready NetworksAT&T’s edge and artificial intelligence-related network strategy is an emerging growth angle, not an immediate earnings reset. Management expects AI-ready connectivity needs to grow as users require lower latency, stronger uplink capacity and reliable traffic management.
The building blocks are dense fiber, 5G backhaul, spectrum depth, mobile edge computing zones and private 5G deployments. AT&T has cited more than 20 metro mobile edge computing zones live and more than 150 active private 5G and edge trials.
The planned EchoStar 600 MHz spectrum acquisition is intended to strengthen low-band uplink capacity. That could become more useful if AI workloads gradually lift backbone traffic and demand more reliable two-way network performance.
T Seeks Efficiency Through Open RANGrowth alone is not enough for AT&T’s investment case. The company also needs to run its network more efficiently as fiber, spectrum and 5G spending remain high.
Open radio access network, or Open RAN, is part of that effort. AT&T plans to use Ericsson technology to deploy a commercial-scale Open RAN buildout and aims to move 70% of wireless network traffic across open-capable platforms by late 2026.
The broader transformation plan includes vendor rationalization, artificial intelligence enablement, digitalization and lower legacy operating support costs. Management is targeting $4 billion in annual cost savings by the end of 2028. Verizon Communications Inc. (VZ - Free Report) offers another large-scale network comparison for investors focused on network cost discipline.
How AT&T’s Ratings Frame the Trend TradeAT&T offers exposure to several important connectivity trends, but the stock is not a clean growth call. Fiber convergence, fixed wireless adoption, edge workloads and Open RAN efficiency give the company a credible roadmap, while legacy declines and promotional wireless competition still limit improvement.
The stock currently carries a Zacks Rank #3 (Hold). Its Value Score of A points to a favorable valuation profile, but the Growth Score of D and Momentum Score of F show weaker signals on earnings growth characteristics and near-term price trend.
The VGM Score of C places the combined style picture in the middle. Investors may see value in T’s connectivity exposure and income profile, but the market is still waiting for stronger growth and momentum signals.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wall Street is worried about Netflix's new shows. Its old ones are its secret weapon.
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Chief Correspondent covering media and technology
Netflix gets lots of attention for new seasons of hit series like "Bridgerton." But those shows aren't what drives most viewing on the service. Liam Daniel/Netflix Wall Street worries that Netflix has an engagement problem. Netflix says it's doing fine, actually.
Wall Street worriers base their fears, in part, on the viewership data Netflix periodically releases — data Netflix says it's going to give out less frequently now. But you can also look at that same data and find reasons to be more optimistic about Netflix's prospects.
So here's a pro-Netflix story, expressed in chart form, courtesy of MoffettNathanson analyst Robert Fishman:
Robert Fishman/MoffettNathanson It also requires some explanation. What Fishman is pointing out is a basic-but-important idea to keep in mind about Netflix-created shows and movies: They get a ton of their viewership in the first few days and weeks they're released. But then they get a ton of viewership over time, too.
So this chart is showing you that in the first half of 2026, more than half of the viewership in Netflix originals was generated by stuff released before the summer of 2025.
That is: Yes, Netflix viewers watched a ton of the new "Bridgerton" season last spring. But they also watched, for instance, lots of old seasons of "Stranger Things" — a show that debuted in 2016. And a lot of "Gabby's Dollhouse," which debuted in 2021. They also spent meaningful time with a Jeffrey Epstein documentary that originally aired in 2020.
Equally important: While there has rightfully been a lot of recent attention on the performance of Netflix's highest-profile shows, Fishman also points out that those shows only account for a slice of Netflix viewing. In the first half of 2026, the top 20 Netflix series accounted for just 14% of total engagement — a ratio that's been pretty consistent for years. Which means that most people are spending most of their Netflix time watching something other than its biggest hits.
"Net-net, while hits remain important, it is really the longer tail titles that drive the vast majority of engagement on Netflix," Fishman writes.
The "long tail" is a very old concept that has taken some beatings over the years. But in Netflix's case, it is bearing out: In an on-demand internet world, lots of people will decide to consume the same movies, shows, songs, whatever. But at the same time, lots of people will seek out niche stuff. And if you add all those niches up, they amount to a very big number.
The long tail doesn't fully answer the problem Netflix bears are highlighting: If your most popular new stuff isn't performing as well as your most popular stuff used to perform, you can't simply dismiss that by saying it doesn't really matter since your old stuff is still popular.
And arguing that not all engagement is the same, anyway — something Netflix has been saying recently — won't make the concern go away, either.
What investors would like — as would Netflix — are numbers showing that Netflix's biggest shows are getting more popular.
Perhaps Netflix won't be able to figure out how to make that happen. The law of large numbers is a real thing, and Netflix now has an astonishing 325 million subscribers. Each new one will be harder to get, which is why the company is focused on extracting more value from each subscriber it does have, via tactics like price hikes and its newish ad business.
That size helps explain why Netflix made a swing-for-the-fences bid for (much of) Warner Bros. Discovery: If you're so big that growth is harder to generate organically, maybe you buy some.
The good news for Netflix is that while they figure that out, they have a good fallback position: A service so large that lots of people will find something to watch, and which keeps them subscribing month after month.
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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
Wall Street expects a year-over-year increase in earnings on higher revenues when MasterCard (MA - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis processor of debit and credit card payments is expected to post quarterly earnings of $4.77 per share in its upcoming report, which represents a year-over-year change of +14.9%.
Revenues are expected to be $9.06 billion, up 11.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.05% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for MasterCard?For MasterCard, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.56%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that MasterCard will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that MasterCard would post earnings of $4.4 per share when it actually produced earnings of $4.60, delivering a surprise of +4.55%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MasterCard appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analysts on Wall Street project that Visa (V - Free Report) will announce quarterly earnings of $3.23 per share in its forthcoming report, representing an increase of 8.4% year over year. Revenues are projected to reach $11.37 billion, increasing 11.8% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Visa metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Revenues- Service revenue' will reach $4.85 billion. The estimate indicates a year-over-year change of +12%.
The consensus among analysts is that 'Revenues- Data processing revenue' will reach $5.86 billion. The estimate indicates a year-over-year change of +13.6%.
Analysts forecast 'Revenues- Other revenue' to reach $1.31 billion. The estimate points to a change of +27.5% from the year-ago quarter.
The average prediction of analysts places 'Revenues- International transaction revenue' at $3.92 billion. The estimate suggests a change of +7.9% year over year.
The combined assessment of analysts suggests that 'End of Period Connections - Total transactions' will likely reach 71.46 billion. The estimate is in contrast to the year-ago figure of 65.44 billion.
Based on the collective assessment of analysts, 'Payments volume - Total' should arrive at $3934.73 billion. Compared to the current estimate, the company reported $3618.00 billion in the same quarter of the previous year.
Analysts predict that the 'Total volume' will reach $4557.96 billion. The estimate is in contrast to the year-ago figure of $4250.00 billion.
Analysts expect 'Payments volume - Asia pacific' to come in at $530.21 billion. The estimate compares to the year-ago value of $509.00 billion.
Analysts' assessment points toward 'Payments volume - Canada' reaching $116.57 billion. The estimate compares to the year-ago value of $110.00 billion.
According to the collective judgment of analysts, 'Payments volume - U.S.' should come in at $1895.31 billion. Compared to the present estimate, the company reported $1766.00 billion in the same quarter last year.
The consensus estimate for 'Payments volume - CEMEA' stands at $246.25 billion. The estimate is in contrast to the year-ago figure of $219.00 billion.
The collective assessment of analysts points to an estimated 'Payments volume - Europe' of $868.35 billion. The estimate compares to the year-ago value of $774.00 billion.
View all Key Company Metrics for Visa here>>>
Over the past month, shares of Visa have returned +6.4% versus the Zacks S&P 500 composite's +0.4% change. Currently, V carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Figurines with computers and smartphones are seen in front the word "Cybercrime" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 23 (Reuters) - U.S. Secretary of State Marco Rubio on Thursday announced a new visa restriction policy that he said would target individuals responsible for or complicit in cybercrime and cyber-enabled crimes.
Immediate family members of individuals engaged in such activities may also be subjected to visa restrictions, Rubio added in a statement released by the U.S. State Department.
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Key Takeaways JNJ beat Q2 earnings and sales estimates, driven by strength in Tremfya, Darzalex and other key drugs.JNJ raised its 2026 outlook as it advances new launches, FDA filings and eyes the Firefly Bio acquisition. ETFs like IHE offer exposure to Johnson & Johnson for investors seeking diversified healthcare access. Medtech giant Johnson & Johnson (JNJ - Free Report) reported better-than-expected second-quarter 2026 results, surpassing Wall Street estimates on both the top and bottom lines. The quarterly performance was primarily driven by strong growth in the immunology drug Tremfya and cancer blockbuster Darzalex.
Despite reporting such an impressive quarterly performance, this drugmaker slipped 1.5% at the bourses following the earnings announcement. This dip, largely attributed to a notable sales miss in its MedTech division and a 2% slump in its Cardiovascular sales, was short-lived, as the stock regained its balance the following day, gaining 1.2%.
Notably, JNJ has gained 3.5% since reporting its second-quarter results a week ago. The stock is now up more than 20% year to date, comfortably outperforming the S&P 500's 9.3% return.
Against this backdrop, for investors looking to capitalize on JNJ's raised earnings outlook for the year, backed by its dominant position in the Pharma and MedTech industries, healthcare exchange-traded funds (ETFs) offer a lower-risk entry point to gain exposure to this healthcare giant before the next major rally, particularly for those seeking to avoid single-stock idiosyncratic risk.
But before suggesting a few such healthcare ETFs that deserve a place in your portfolio, let us take a look at JNJ's overall second-quarter performance.
A Brief Look at JNJ's Q2 ResultsJNJ's second-quarter earnings per share (EPS) of $2.90 beat the Zacks Consensus Estimate by 2.1%, while sales outpaced the consensus mark by 0.5%.
The combination of TALVEY and DARZALEX delivered deep and durable responses with more than 80% of patients progression-free at 2 years and overall survival up to 89%, as per the second-quarter data.
In solid tumors, JNJ continued to see strong performance from ERLEADA and RYBREVANT. In bladder cancer, nearly one in three eligible patients started on an INLEXZO regimen and new patient insertions grew approximately 75% in the second quarter versus the prior quarter.
In Immunology, JNJ’s TREMFYA remained the fastest-growing advanced therapy in both Crohn's disease and ulcerative colitis, delivering exceptional overall sales growth of 71%. In Neuroscience, both SPRAVATO and CAPLYTA delivered strong performance in the second quarter, with CAPLYTA's new patient starts surging 122% year over year.
In Cardiovascular, VARIPULSE, JNJ’s pulsed-field ablation platform for atrial fibrillation, showed strong momentum with more than 85,000 patients now treated worldwide.
JNJ debuted its CARTOSOUND SONATA, bringing new AI-powered imaging and mapping capabilities to electrophysiology. The company also received FDA authorization for its dual-energy THERMOCOOL SMARTTOUCH SF platform, which integrates pulsed-field and radiofrequency energy in a single system to give physicians greater flexibility in tailoring ablation treatments for patients.
In Circulatory Restoration, JNJ’s global launch of Shockwave C2 Aero expanded the healthcare giant’s ability to treat more complex coronary disease and broadened the reach of its intravascular lithotripsy platform.
J&J's management expects to receive FDA regulatory approval for IMAAVY as the first-ever treatment for patients with warm autoimmune hemolytic anemia, a rare and serious autoantibody disease, in the second half of 2026.
The company also projects FDA approval for its OTTAVA robotic surgical system and the EMEA launch of ETHICON 4000 this year.
JNJ’s planned acquisition of Firefly Bio, expected to be closed in the third quarter of 2026, should add a proprietary platform designed to target KRAS-driven solid tumors, which are typically more difficult to treat, thereby further diversifying the company’s oncology pipeline.
Market Reaction Post Q2 EarningsFollowing J&J's upbeat Q2 results, Bernstein raised its price target for the pharma giant to $261 from $251 while maintaining a Market Perform rating, citing solid underlying medical technology trends to drive the stock's performance (as cited in Investing.com).
JNJ-Heavy ETFs to BuyiShares U.S. Pharmaceuticals ETF (IHE - Free Report)
This fund, with net assets worth $1.44 billion, provides exposure to 56 U.S. domestic drug manufacturers and vaccine producers. Of these, Johnson and Johnson takes the first spot, accounting for a 21.72% share.
IHE has rallied 18.7% year to date and charges 38 basis points (bps) in fees. IHE holds a Zacks Rank #2 (Buy) and traded at a volume of 0.13 million shares in the last trading session.
State Street Health Care Select Sector SPDR ETF (XLV - Free Report)
This fund, with assets under management (AUM) of $41.69 billion, provides exposure to 60 companies across pharmaceuticals, biotechnology, health care equipment and supplies, health care providers and services, life sciences tools and services, and health care technology industries. Of these, Johnson and Johnson takes the second spot, accounting for a 10.42% share.
XLV has risen 3% year to date and charges 8 bps in fees. It traded in a heavy volume of around 5.60 million shares in the last trading session. XLV sports a Zacks Rank #1 (Strong Buy).
Vanguard Health Care ETF (VHT - Free Report)
This fund, with net assets worth $20.4 billion, provides exposure to 423 companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. Of these, Johnson and Johnson takes the second spot, accounting for an 8.87% share.
VHT has risen 4.2% year to date and charges 9 bps in fees. It traded in a volume of around 0.28 million shares in the last trading session. VHT sports a Zacks Rank #1.
For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Altria (MO - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.
Altria is a member of the Consumer Staples sector. This group includes 185 individual stocks and currently holds a Zacks Sector Rank of #16. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Altria is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for MO's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, MO has returned 25.2% so far this year. At the same time, Consumer Staples stocks have gained an average of 9.4%. This means that Altria is outperforming the sector as a whole this year.
Another stock in the Consumer Staples sector, Newell Brands (NWL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 44.9%.
Over the past three months, Newell Brands' consensus EPS estimate for the current year has increased 1.9%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Altria belongs to the Tobacco industry, a group that includes 8 individual companies and currently sits at #215 in the Zacks Industry Rank. Stocks in this group have gained about 18.4% so far this year, so MO is performing better this group in terms of year-to-date returns.
On the other hand, Newell Brands belongs to the Consumer Products - Staples industry. This 35-stock industry is currently ranked #190. The industry has moved +3.5% year to date.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Altria and Newell Brands as they could maintain their solid performance.
The market expects Altria (MO - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis owner of Philip Morris USA, the nation's largest cigarette maker is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of +4.2%.
Revenues are expected to be $5.36 billion, up 1.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Altria?For Altria, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.34%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Altria will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Altria would post earnings of $1.24 per share when it actually produced earnings of $1.32, delivering a surprise of +6.45%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Altria doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Iran-backed Houthis say they have attacked two Saudi Arabian oil tankers in the Red Sea. This has opened up a new front in the US-Iran conflict, is driving up oil prices and raising new fears about oil disruptions in the region.
Wall Street analysts forecast that Ford Motor Company (F - Free Report) will report quarterly earnings of $0.33 per share in its upcoming release, pointing to a year-over-year decline of 10.8%. It is anticipated that revenues will amount to $45.72 billion, exhibiting a decrease of 2.6% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 5.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Ford Motor metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenues- Ford Pro' will reach $18.41 billion. The estimate indicates a year-over-year change of -2.1%.
It is projected by analysts that the 'Revenues- Ford Credit' will reach $3.37 billion. The estimate points to a change of +4.1% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenues- External Revenues- Ford Blue' should come in at $25.71 billion. The estimate indicates a change of -0.3% from the prior-year quarter.
Analysts expect 'Revenues- External Revenues- Ford Model e' to come in at $1.62 billion. The estimate indicates a change of -31.3% from the prior-year quarter.
Analysts' assessment points toward 'Wholesale Units - Ford Pro' reaching 421.07 thousand. Compared to the current estimate, the company reported 429.00 thousand in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Wholesale Units - Ford Blue' should arrive at 669.70 thousand. The estimate compares to the year-ago value of 696.00 thousand.
The average prediction of analysts places 'Wholesale Units - Ford Model e' at 43.69 thousand. Compared to the current estimate, the company reported 60.00 thousand in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Adjusted EBIT- Ford Pro' of $1.68 billion. The estimate compares to the year-ago value of $2.32 billion.
The consensus among analysts is that 'Adjusted EBIT- Ford Credit' will reach $546.08 million. Compared to the present estimate, the company reported $645.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Adjusted EBIT- Ford Blue' will likely reach $1.24 billion. Compared to the present estimate, the company reported $661.00 million in the same quarter last year.
View all Key Company Metrics for Ford Motor here>>>
Shares of Ford Motor have demonstrated returns of +4.2% over the past month compared to the Zacks S&P 500 composite's +0.4% change. With a Zacks Rank #3 (Hold), F is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
When the CEOs and the Retiree Live in Different Economies JPMorgan Chase (NYSE:JPM | JPM Price Prediction)’s Jamie Dimon told investors that the U.S. economy has shown “notable resiliency this year, with stronger business investment and hiring.” Goldman Sachs (NYSE:GS)’s David Solomon, speaking on CNBC, called the economy “well positioned” to shoulder AI-driven volatility. The data backs them up. Corporate profits hit $4.43 trillion in Q1 2026, up 13% from a year earlier.
Now picture a 72-year-old widow in Ohio. Her income is a Social Security check that lands the same Wednesday each month, plus a modest IRA she tries not to touch. Her grocery bill went up. Her Medicare premium went up. Gas at the pump today is nearing $4 a gallon once again after touching on $4.50 back in May. When she reads that hiring is strong, she nods. It doesn’t change her deposit.
On retirement forums this frustration comes up routinely. One member recently asked why every headline says the economy is booming while her budget feels thinner every quarter. The answer is structural, and it’s worth understanding before making any financial move.
The One Thing to Understand About Your Check Social Security is a fixed benefit. Once you claim, the only thing that changes it is the annual cost-of-living adjustment (COLA). For 2026 that bump was 2.8%, set by a formula tied to a specific inflation index measured over Q3 of the prior year.
Nothing else moves the number. Not GDP growth. Not a hiring surge. Not record profits at the banks. If a 72-year-old is receiving the roughly $20,000 to $30,000 a year that the typical retiree collects, that check is the check, adjusted once a year in January.
That is the structural disconnect. Wages rise when labor markets tighten. Corporate profits rise when business investment picks up. Home equity increases when housing appreciates. Social Security does none of those things. It is designed to replace roughly 40% of preretirement income for the average worker and to hold that purchasing power steady, not to grow with the economy.
If you expected a boom to lift your check, it won’t. If you expected a downturn to cut it, it won’t do that either. The floor is the floor.
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Where a Retiree Can Actually Capture the Strength A fixed-income retiree has two practical channels into the growth story.
The first is any market exposure held outside Social Security. A traditional IRA, a Roth, or a taxable brokerage account participates in corporate earnings the same way a working investor’s account does. When profits grow 13% year over year, that shows up in equity prices over time. Keeping some age-appropriate stock exposure, even in retirement, is how a retiree stays connected to the economy Dimon and Solomon are describing.
The second is yield on safe savings. The FDIC national average 12-month CD rate sits at 1.65%, which is the bank branch average. Top online banks and Treasury bills pay meaningfully more. A 3-month T-bill yields 3.89% and a 1-year bill yields 4.12%. On $50,000 laddered across those maturities, the difference between a branch CD and a Treasury ladder is real grocery money each year, backed by the federal government.
For investors weighing how these levers fit against the claiming decision itself, our team put together a walk-through of the tradeoffs that’s worth a look.
What to Actually Do With This Two things to sit with:
Set expectations clearly. A strong economy will not raise your Social Security payment. The COLA is your only automatic raise, and it moves with a narrow inflation measure, not with wages or profits. Anyone budgeting around the idea that a good year for the economy is a good year for their check is planning for a raise that isn’t coming. Use the levers you do control. Keep a slice of savings in growth assets appropriate for your age. Move idle cash out of low-yield accounts and into a short Treasury or CD ladder while short-term rates stay above 4%. Boring moves. They also compound. Dimon and Solomon are describing a real economy. So is the widow checking her grocery receipt. Consumer sentiment is running near its lowest levels in years, which is its own kind of data point: most people do not feel the boom the boardroom is describing, and they are right not to expect it to show up in a Social Security deposit. Our retiree’s job is not to reconcile those two dynamics. It is to make sure the parts of her financial life that can catch a tailwind, the IRA, the savings, are actually positioned to catch it.
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Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Goldman Sachs (GS - Free Report) Founded in 1869, The Goldman Sachs Group, Inc. is a leading global financial holding company providing IB, securities, investment management, and consumer banking services to a diversified client base. The company is headquartered in New York, with offices in major financial centers globally.
Since being added to the Focus List on July 11, 2018 at $226.85 per share, shares of GS have increased 384.11% to $1. The stock is currently a #1 (Strong Buy) on the Zacks Rank.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $9.3 to $68.83. GS boasts an average earnings surprise of 20.4%.
Moreover, analysts are expecting GS's earnings to grow 34.1% for the current fiscal year.
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Key Takeaways BlackRock topped $15T AUM as iShares ETFs drove rapid growth across active and bond products. Active, bond and core ETFs are fueling adoption, while low fees remain a key competitive edge. Despite Vanguard's lead in U.S. ETF assets, iShares remains a global ETF giant with about 1,600 funds. BlackRock (BLK - Free Report) has crossed the $15 trillion AUM milestone, fueled in large part by the rapid growth of its Exchange-Traded Fund (ETF) business. ETFs now represent more than 40% of the firm's assets, compared with 25% a decade ago, as quoted on ETF Central.
BlackRock, through its iShares brand, continues to lead the global ETF market. Its current expansion is driven by strong adoption of active ETFs, fixed-income products, and portfolio adjustments to accommodate the explosive growth of mega-cap AI and tech stocks. Investors can now access about 1,600 iShares ETFs globally -- up 50% since 2019.
Inside the Success BlackRock noted that ETFs are increasingly preferred by digital wealth investors because they provide access to both active and index investing. The company aims to shift people's mindset from saving to investing.
Today, 43 million people worldwide use iShares ETFs, and the company aims to more than double that figure to 100 million by the end of the decade.
The company expects the digital wealth market to grow into a $17 trillion industry by 2030, with ETFs playing a major role in driving this growth.
Inside the Variations of ETFsBlackRock highlighted the following categories as key ETF areas.
Core ETFs provide a cost-effective way to build long-term portfolios.
Bond ETFs offer exposure to bond markets more capably.
Active ETFs aim to generate enhanced income or downside protection through options-based strategies.
Factor ETFs have the potential to outperform market-cap benchmarks.
Precision ETFs provide access to a wide range of countries, sectors and commodities.
Investors can use iShares ETFs for growth, income, diversification, systematic investing, megatrends and thematic exposure, alternative investments, as well as sustainable and transition investing.
Any Changes in the Asset Class’s Categorization? BlackRock predicts global bond ETF assets under management (AUM) will reach $6 trillion by the end of 2030, up from $2.6 trillion in 2024, as quoted on its website. The ongoing modernization of the bond market is expected to drive this growth.
What About Fees? BlackRock has periodically cut expense ratios on its core and flagship ETFs to remain competitive against rivals like Vanguard and Charles Schwab. Earlier fee reductions brought the expense ratio of the iShares Core S&P 500 ETF (IVV - Free Report) down to 0.03%, matching the Vanguard 500 Index Fund ETF (VOO - Free Report) expense ratio, while the iShares Core U.S. Aggregate Bond ETF (AGG - Free Report) expense ratio was also reduced to 0.03%.
Bottom Line While BlackRock's success is commendable, Vanguard has overtaken BlackRock to become the largest U.S. ETF issuer, ending BlackRock's roughly 20-year reign at the top. This underscores the importance of low fees in the ETF marketplace.
A mid-June article from The Daily Upside indicated that Vanguard manages around $4.39 trillion across 116 U.S.-listed funds, according to Bloomberg data, surpassing the $4.36 trillion managed by BlackRock, as quoted on Yahoo Finance.
Nevertheless, BlackRock's achievement highlights the remarkable growth of the ETF industry. Some of the most popular U.S.-based iShares ETFs include IVV, iShares Core MSCI EAFE ETF (IEFA - Free Report) , iShares Core MSCI Emerging Markets ETF (IEMG - Free Report) , AGG and iShares Russell 1000 Growth ETF (IWF - Free Report) .
Wall Street expects a year-over-year increase in earnings on higher revenues when Xerox Holdings Corporation (XRX - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +109.4%.
Revenues are expected to be $1.9 billion, up 20.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 40.63% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Xerox?For Xerox, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -100.00%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Xerox will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Xerox would post a loss of$0.2 per share when it actually produced a loss of -$0.11, delivering a surprise of +45.00%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Xerox doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The upcoming report from Royal Caribbean (RCL - Free Report) is expected to reveal quarterly earnings of $3.97 per share, indicating a decline of 9.4% compared to the year-ago period. Analysts forecast revenues of $4.81 billion, representing an increase of 6% year over year.
Over the last 30 days, there has been a downward revision of 1.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Royal Caribbean metrics that are routinely monitored and predicted by Wall Street analysts.
It is projected by analysts that the 'Revenues- Onboard and other' will reach $1.45 billion. The estimate suggests a change of +8.6% year over year.
The consensus among analysts is that 'Revenues- Passenger ticket' will reach $3.36 billion. The estimate indicates a year-over-year change of +5%.
Analysts forecast 'APCD (Available passenger cruise days)' to reach 13586 days. The estimate compares to the year-ago value of 12942 days.
The average prediction of analysts places 'Net Yields' at $287.91 . Compared to the present estimate, the company reported $283.56 in the same quarter last year.
Analysts predict that the 'Occupancy Rate' will reach 110.4%. The estimate compares to the year-ago value of 110.3%.
Based on the collective assessment of analysts, 'Passenger Cruise Days' should arrive at 14986 days. Compared to the current estimate, the company reported 14278 days in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Net Cruise Costs Excluding Fuel per APCD' of $133.29 . Compared to the current estimate, the company reported $126.76 in the same quarter of the previous year.
The consensus estimate for 'Net Cruise Costs per APCD' stands at $158.70 . The estimate compares to the year-ago value of $148.34 .
According to the collective judgment of analysts, 'Passengers Carried' should come in at 2.57 million. Compared to the current estimate, the company reported 2.25 million in the same quarter of the previous year.
View all Key Company Metrics for Royal Caribbean here>>>
Royal Caribbean shares have witnessed a change of -10.9% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), RCL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In its upcoming report, Hilton Worldwide Holdings Inc. (HLT - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.28 per share, reflecting an increase of 3.6% compared to the same period last year. Revenues are forecasted to be $3.36 billion, representing a year-over-year increase of 7.2%.
Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Hilton Worldwide metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Revenues- Base and other management fees' should come in at $105.24 million. The estimate points to a change of +8.5% from the year-ago quarter.
Analysts expect 'Revenues- Other revenues' to come in at $82.23 million. The estimate points to a change of +6.8% from the year-ago quarter.
Analysts forecast 'Revenues- Franchise and licensing fees' to reach $815.06 million. The estimate indicates a year-over-year change of +9.4%.
Analysts predict that the 'Revenues- Incentive management fees' will reach $72.27 million. The estimate indicates a change of -3.6% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Ownership' should arrive at $334.62 million. The estimate suggests a change of +0.8% year over year.
Analysts' assessment points toward 'Revenues- Cost reimbursement revenues' reaching $1.93 billion. The estimate indicates a change of +6.7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Property Summary - Ownership - Rooms - Total system' of 14,932 . The estimate compares to the year-ago value of 15,287 .
The consensus estimate for 'Property Summary - Managed - Rooms - Total system' stands at 266,636 . The estimate compares to the year-ago value of 258,183 .
It is projected by analysts that the 'RevPAR - System-wide' will reach $125.13 . The estimate is in contrast to the year-ago figure of $121.79 .
The combined assessment of analysts suggests that 'Property Summary - Total - Rooms - Total system' will likely reach 1,385,603 . The estimate compares to the year-ago value of 1,304,879 .
The average prediction of analysts places 'Property Summary - Franchised / Licensed - Rooms - Total system' at 1,104,035 . The estimate is in contrast to the year-ago figure of 1,031,409 .
View all Key Company Metrics for Hilton Worldwide here>>>
Over the past month, shares of Hilton Worldwide have returned -5.6% versus the Zacks S&P 500 composite's +0.4% change. Currently, HLT carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
HLT heads into Q2 earnings with resilient travel demand, expanding hotel openings and steady booking trends, but near-term regional headwinds remain in focus.
In its upcoming report, Paypal (PYPL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.28 per share, reflecting a decline of 8.6% compared to the same period last year. Revenues are forecasted to be $8.51 billion, representing a year-over-year increase of 2.7%.
Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Paypal metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Net Revenues- Revenues from other value added services' should arrive at $857.75 million. The estimate indicates a year-over-year change of +1.3%.
According to the collective judgment of analysts, 'Net Revenues- Transaction revenues' should come in at $7.66 billion. The estimate points to a change of +3% from the year-ago quarter.
Analysts expect 'Total Payment Volume (TPV)' to come in at $474.52 billion. The estimate is in contrast to the year-ago figure of $443.55 billion.
The consensus among analysts is that 'Transaction margin' will reach 43.8%. The estimate is in contrast to the year-ago figure of 46.4%.
Analysts' assessment points toward 'Active accounts' reaching 440 . Compared to the present estimate, the company reported 438 in the same quarter last year.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have demonstrated returns of +30.7% over the past month compared to the Zacks S&P 500 composite's +0.4% change. With a Zacks Rank #3 (Hold), PYPL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Buying PayPal (NASDAQ:PYPL | PYPL Price Prediction) at 11 times trailing earnings while the company retires roughly 8% of its float every year makes PayPal stand out as one of the more compelling large-cap value opportunities today. PayPal operates digital payment platforms such as PayPal, Venmo, and Braintree, making money primarily by charging merchants fees for processing transactions.
The market is pricing PayPal like a melting ice cube, but the underlying payments engine is still compounding volume, and management is returning cash faster than the share price can absorb it. Additionally, Stripe and Advent International made an offer for PayPal’s business, and while the offer of $60.50 per share was rejected for being too low, there’s a potential for the business to be acquired at a substantial premium to where it trades today.
PayPal’s 11x Forward P/E Provides a Margin of Safety PYPL trades at a forward P/E of just 11 against TTM revenue of $33.73 billion and a return on equity of 25.1%. It’s a rare combination for a business to generate 25% ROE while being priced at a low-double-digit multiple. Analysts’ average price target of $61.62 implies 11.01% upside before factoring in dividends or share buybacks.
An 8% Buyback Yield Acts Like An Extra Return Driver The stock’s dividend yield of 0.74% understates what shareholders actually receive. PayPal repurchased ~100 million shares for $6.0 billion over the trailing twelve months, shrinking diluted share count from 999 million to 920 million.
Y2025 free cash flow reached $5.564 billion, and management guides to at least $6 billion in adjusted free cash flow for 2026 with another ~$6 billion in share repurchases planned.
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PayPal’s $1.5 Billion Turnaround Has Teeth New CEO Enrique Lores has committed to “at least $1.5 billion of gross run-rate savings over the next two to three years,” backed by Q1 2026 total payment volume of $463.95 billion, up 11%, and U.S. revenue growth of 9%. Venmo TPV rose 14% year over year, its sixth consecutive quarter of double-digit growth.
Why PayPal Looks Far Cheaper Than Visa While Visa (NYSE:V) has a more attractive underlying business than PayPal, it’s tough not to see that PYPL is valued at a low multiple. Visa trades at a forward P/E of 24, roughly double PayPal’s multiple, while paying a nearly identical 0.72% dividend yield. Visa’s EV/EBITDA of 24.54 dwarfs PayPal’s 6.7. Retirement investors get comparable dividend income at a fraction of the valuation, plus a share buyback yield Visa cannot match on a percentage-of-float basis.
PayPal’s Weak Guidance Masks a Healthy Payments Engine PayPal’s bear case rests on FY26 non-GAAP EPS guided to a low-single-digit decline to slightly positive versus $5.31. But the company’s core growth engine still looks intact, with TPV growth of 11% and transaction volume of 6.5 billion transactions, up 7%.
The near-term EPS softness reflects lower interest income on customer balances and reinvestment pressure, while underlying demand remains strong. Insiders agree: PayPal logged 59 recent insider transactions with a net buying direction.
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Intel shares are consolidating. Where are INTC shares going? Earnings Preview & HistoryIntel is scheduled to report second-quarter earnings today after the market closes. Analysts estimate EPS of 19 cents along with revenue of $14.40 billion. For the prior quarter, Intel reported EPS of 29 cents, beating the consensus estimate of a loss of 1 cent. The company also posted revenue of $13.58 billion, exceeding the consensus estimate of $12.40 billion.
What to WatchInvestors will be closely tracking gross margin trajectory, which Intel guided to approximately 39% for the quarter, down from 41% in Q1 as a larger share of higher cost 18A products moves through production. Data Center and AI revenue is another key figure to watch — the segment generated $5.05 billion in Q1, and management’s guidance implies double-digit sequential growth is needed to keep pace with the AI buildout narrative.
Commentary on 18A manufacturing yields and the foundry business will also draw attention, given ongoing questions about when the segment can turn cash-generative, along with any updates on forward guidance and capital spending discipline heading into the second half of the year.
A Longer-Term Uptrend Meets Short-Term WeaknessFrom a trend perspective, Intel is still in a longer-term uptrend, trading about 15% above its 100-day SMA ($89.85) and roughly 58% above its 200-day SMA ($65.50). The near-term picture is softer, though, with the stock about 8% below its 20-day SMA ($112.99) and roughly 11% below its 50-day SMA ($115.90), which keeps rallies vulnerable to supply.
Momentum is best explained by MACD right now: MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing unless buyers can reclaim that baseline. That lines up with the bearish 20-day SMA below the 50-day SMA, even as the bigger-picture "golden cross" (50-day above 200-day) from August 2025 still argues the primary trend hasn’t fully broken.
Key Support: $98.50 — a nearby pivot area where buyers previously stepped in, and a level traders may watch closely if the broader selloff deepens Analyst Consensus & Recent Actions The stock carries a Hold rating with an average price forecast of $103.67. Recent analyst moves include:
Morgan Stanley: Equal-Weight (Raises Target to $75.00) (July 20) Susquehanna: Neutral (Raises Target to $115.00) (July 16) Keybanc: Overweight (Raises Target to $155.00) (July 14) Intel Shares RiseINTC Price Action: At the time of publication, Intel shares are trading 0.14% higher at $102.76, according to data from Benzinga Pro.
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It’s hard to believe that a name like Intel (NASDAQ:INTC | INTC Price Prediction), which gained more than 336% in a year as a part of its profoundly successful turnaround, could have more gas in the tank. The $515 billion semiconductor giant is back on the map, and while the easiest gains have already been made, I do think that the company could continue its winning ways now that its wheels are back on the tracks.
With shares now down more than 26% from those June highs, questions linger as to whether Intel deserves to fall faster than the rest of the harshly punished semiconductor names. Now that analysts expect way more from the firm after more than quadrupling in a year, questions linger as to whether the firm is poised to run itself off the expectations treadmill.
With investors expecting big things from the firm as it pulls the curtain on earnings today, Intel’s numbers may very well set the tone for the tech trade for the rest of the week. For the most part, the numbers are going to be “strong,” according to most analysts, including those at Wedbush Securities.
But a good showing might not be enough to reverse the trend as semis continue to sag and calls for profit-taking grow a bit louder. In my view, the long-term narrative has never been better, and any post-earnings plunge, I think, could be a gift for those willing to deal with the downward pressure for a shot at real long-term strength.
Intel’s yield is too impressive to ignore, and the margin implications are huge With recent reports swirling around Intel Foundry Services clocking in an astounding 85% yield on the 18A process node, perhaps lingering doubts and skepticism — which are very much warranted, in my view — surrounding Intel’s ability to catch up with Taiwan Semiconductor Manufacturing (NYSE:TSM) could soon be shot down. It’s one thing to get a fab up and running with big-name clients, but it’s another to be running with a high yield on the cutting edge of semiconductor manufacturing.
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The 85% figure is 20% higher than previous quarters, marking an unbelievable leap in efficiency, one that will go straight into padding Intel’s margin. Of course, Taiwan Semiconductor remains the firm to beat, but being able to operate at such a high level to be within striking distance of the market leader, in my opinion, is a feat that warrants a big jump in the share price.
In any case, we’ll need to see how the numbers fare in the second half. If an 85% yield on 18A finds its way into the numbers, analysts might need to revisit the drawing board and raise the bar on their margin expectations. Intel has defied expectations in a massive way in the past year.
Could it really be that Intel can keep the home run hits coming? I’d say it’s likelier than not, especially in light of this latest report. At this pace, perhaps Intel stock is well-equipped to grow into its hefty multiple far faster than expected, and the bulls, like Jim Cramer, might look very smart for sticking with the name despite the explosive stock chart.
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Shopify (SHOP - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Shopify currently has an average brokerage recommendation (ABR) of 1.55, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 48 brokerage firms. An ABR of 1.55 approximates between Strong Buy and Buy.
Of the 48 recommendations that derive the current ABR, 33 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.8% and 6.3% of all recommendations.
Brokerage Recommendation Trends for SHOP
Check price target & stock forecast for Shopify here>>>
While the ABR calls for buying Shopify, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in SHOP?Looking at the earnings estimate revisions for Shopify, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $1.84.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Shopify. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Shopify may serve as a useful guide for investors.
Shares of Shopify (SHOP - Free Report) have gained 3.7% over the past four weeks to close the last trading session at $118.42, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $151.43 indicates a potential upside of 27.9%.
The average comprises 45 short-term price targets ranging from a low of $110.00 to a high of $200.00, with a standard deviation of $20.25. While the lowest estimate indicates a decline of 7.1% from the current price level, the most optimistic estimate points to a 68.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SHOP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SHOP Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.6%.
Moreover, SHOP currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SHOP could gain, the direction of price movement it implies does appear to be a good guide.
It has been about a month since the last earnings report for FedEx (FDX - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FedEx due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for FedEx Corporation before we dive into how investors and analysts have reacted as of late.
Earnings Beat at FedEx in Q4FedEx reported solid fourth-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.
Revenues of $25.0 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago fiscal quarter’s reported figure.
Apart from the better-than-expected results, FDX has also raised its full-year fiscal 2026 guidance for revenues and earnings. For fiscal 2026, FedEx now expects revenue growth to be up almost 11% on a year-over-year basis (prior view: up 6-6.5%). Earnings per share (EPS) are now anticipated to be between $16.55 and $17.75 before the MTM retirement plans accounting adjustments compared with the prior guidance of $16.05-$16.85.
Operating income, on a reported basis, increased 3.4% to $2.09 billion from the year-ago fiscal quarter’s reported number. Operating margin fell to 8.4% from 9.1% in the year-ago reported quarter. Operating income improved in the fiscal fourth quarter on the back of continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives and increased U.S. domestic and international export package volume.
Operating expenses (reported basis) increased 15% to $23.4 billion.
In January 2025, FedEx’s board of directors announced a change in the company’s fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
The spin-off of FedEx Freight into a new publicly traded company was completed on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of almost $4.1 billion to FedEx from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility.
FedEx Freight will discuss its fiscal fourth-quarter results on June 25, 2026, through a call.
Segmental Performance During the QuarterFedEx Express segment’s revenues grew 14% year over year to $21.5 billion. The Federal Express segment benefited from higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses and the financial impacts of global trade policy changes.
FedEx Freight revenues grew 5% from the year-ago fiscal quarter’s reported figure to $2.40 billion.
Average daily shipments fell 6% year over year. Capital expenditures for the reported quarter were $1.47 billion.
LiquidityFedEx exited fourth-quarter fiscal 2026 with cash and cash equivalents of $13.3 billion compared with $8.01 billion at the end of the prior quarter. Long-term debt (less current portion) was $23.2 billion compared with $22.8 billion at prior-quarter end.
During fiscal 2026, FedEx returned almost $2.2 billion to shareholders, which includes $776 million in the form of share repurchases and $1.4 billion through dividend payments. As of May 31, 2026, $1.3 billion was available under the company's 2024 stock repurchase authorization.
Remaining Aspects of 2026 OutlookEPS, after excluding costs related to business optimization initiatives, the planned spin-off of FedEx Freight, and the planned change in the company's fiscal year end, is now expected between $16.90 and $18.10 compared with the prior guided range of $19.30 to $20.10.
Pension contributions are now expected to be up to $475 million (prior view: $275 million).
For fiscal 2026, FedEx now anticipates capital spending of $3.9 billion (prior view: $4.1 billion), prioritizing investments in network optimization and efficiency improvement, which includes fleet and facility modernization and automation. The effective tax rate is now estimated to be around 23% compared with the prior expectation of 24%.
For 2026, FedEx remains committed to rewarding its shareholders, which includes the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. FDX also plans to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation.
How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM ScoresAt this time, FedEx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook FedEx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Shares of Travelers (TRV - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $374 in the previous session. Travelers has gained 28.3% since the start of the year compared to the 6.2% gain for the Zacks Finance sector and the -0.5% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 17, 2026, Travelers reported EPS of $10.04 versus consensus estimate of $5.31.
For the current fiscal year, Travelers is expected to post earnings of $31.83 per share on $48.85 in revenues. This represents a 15.4% change in EPS on a -0.05% change in revenues. For the next fiscal year, the company is expected to earn $29.39 per share on $50.26 in revenues. This represents a year-over-year change of -7.68% and 2.89%, respectively.
Valuation MetricsWhile Travelers has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Travelers has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 5.8X versus its peer group's average of 10.6X. Additionally, the stock has a PEG ratio of 3.76. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Travelers an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Travelers currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Travelers fits the bill. Thus, it seems as though Travelers shares could still be poised for more gains ahead.
How Does TRV Stack Up to the Competition?Shares of TRV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Allstate Corporation (ALL - Free Report) . ALL has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. The Allstate Corporation beat our consensus estimate by 43.34%, and for the current fiscal year, ALL is expected to post earnings of $30.51 per share on revenue of $71.42 billion.
Shares of The Allstate Corporation have gained 7.8% over the past month, and currently trade at a forward P/E of 8.25X and a P/CF of 6.6X.
The Insurance - Property and Casualty industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for TRV and ALL, even beyond their own solid fundamental situation.
IBM cuts its 2026 revenue growth outlook after delayed software deals, while early Q3 closures and infrastructure strength support a second-half rebound.
Key Takeaways IBM's Q2 adjusted earnings rose 5% to $2.93 per share, while revenues missed estimates by 0.9%.Delayed software deals and a 42% plunge in IBM Z revenues caused most of the quarterly shortfall.IBM cut its 2026 revenue growth view to 4-5% but raised its margin expansion target to 100 bps. International Business Machines Corporation (IBM - Free Report) reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%.
The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent.
Software Growth Slows on Transaction TimingSoftware revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.
Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall.
About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.
HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.
Consulting Gains from AI Transformation DemandConsulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%.
Infrastructure Segment Mix WeighsInfrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.
IBM Expands Operating Profit Despite Gross Margin PressureNon-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.
Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.
IBM Maintains Cash Flow DisciplineIBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.
The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends.
IBM Trims Revenue View but Raises Margin TargetFor 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.
Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year.
Zacks RankUpcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting a growth of 21.9% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.9%. Arista delivered an average earnings surprise of 8.3% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2026 earnings on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, indicating an 8.7% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8.1%. Akamai delivered an average earnings surprise of 7.5% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, implying a rise of 9.1% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 27%. Pinterest delivered an average negative earnings surprise of 4.1% in the last four reported quarters.
IBM (NYSE: IBM | IBM Price Prediction), which has been poorly run for decades, is on the ropes. The company has had plenty of practice managing decline. When it warned about its earnings a week ago, the stock dropped over 20%. It is down 30% for the year, while the S&P is up 9%. The picture is even bleaker from another vantage point: in early June, the stock changed hands at $329, but it trades at very slightly better than $200 now.
Yesterday, IBM reported the full extent of its failure with weak Q2 results. First, IBM announced it would cut guidance, although the revision was minor. The staggering news, however, was that revenue from IBM’s Z mainframe dropped 42%. This, in turn, dragged down infrastructure revenue by 7% year-over-year to $3.8 billion. While IBM suggested that customers were not abandoning the mainframe platform entirely, the data shows they are certainly moving away from IBM’s offerings at an accelerating pace.
Revenue for the second quarter was $17.2 billion, which was up 1% year over year. Net income was down 1% to $2.2 billion. IBM’s future depends on the credibility of a comment by CEO Arvind Krishna: “We are confident in IBM’s strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio — across software, infrastructure, and consulting — is well-positioned to help our clients tap the value, and manage the challenges of an AI-driven future.” The market begs to differ. Investors are not confident.
IBM acts as if it were still an important pillar of America’s megatech industry, but it is not. By way of contrast, the much larger Microsoft (NASDAQ: MSFT) saw a 17% increase in its most recent quarter to $81.3 billion. The software giant’s EPS hit $5.18, compared to $3.24 in the year-ago period. Microsoft’s net income of $38.5 billion for the period is 2.3 times IBM’s total revenue for its most recent quarter.
Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) all have higher revenue than Microsoft’s, and Nvidia’s (NASDAQ: NVDA) is almost as high as any of those. It is another sign of how small and inconsequential IBM’s revenue is compared to that of the larger tech companies
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IBM is special, in a sense. The company lost whatever clout it had decades ago. In 1980, IBM ranked ninth on the Fortune 500, America’s largest companies based on revenue. Since then, it has missed the opportunity to lead in personal computers, PC operating systems, e-commerce, tech operating systems, search, and, more recently, AI. It is hard to find a tech company that lost that many chances to be a leader.
IBM’s market cap is just under $200 billion. Microsoft’s market cap is $2.9 trillion. Alphabet’s is $4.2 trillion. Privately held OpenAI is estimated at $900 billion.
IBM has lost ground for decades, and it can’t make any of that up.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UnitedHealth Group (UNH - Free Report) UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. UNH has a Momentum Style Score of A, and shares are up 6.3% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.07 to $19.36 per share. UNH boasts an average earnings surprise of +12.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, UNH should be on investors' short list.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As one of the world's leading refiners, Phillips 66 operates 13 refineries, primarily in the United States, with a total refining capacity of about 2.2 million barrels per day.
PSX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.66; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.58 to $19.84 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PSX should be on investors' short list.
Investors in Chord Energy Corporation (CHRD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 18, 2026 $95 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Chord Energy shares, but what is the fundamental picture for the company? Currently, Chord Energy is a Zacks Rank #4 (Sell) in the Oil and Gas - Exploration and Production - United States industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 30 days, three analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $6.12 per share to $6.68 in that period.
Given the way analysts feel about Chord Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Dover Corporation (DOV - Free Report) reported $2.19 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.9%. EPS of $2.74 for the same period compares to $2.44 a year ago.
The reported revenue represents a surprise of -1.01% over the Zacks Consensus Estimate of $2.21 billion. With the consensus EPS estimate being $2.72, the EPS surprise was +0.74%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Engineered Products: $283.48 million versus $284.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.Revenue- Clean Energy & Fueling: $594.96 million compared to the $578.85 million average estimate based on three analysts. The reported number represents a change of +9% year over year.Revenue- Climate & Sustainability Technologies: $455.1 million versus the three-analyst average estimate of $470.05 million. The reported number represents a year-over-year change of +9.4%.Revenue- Pumps & Process Solutions: $552.71 million compared to the $571.06 million average estimate based on three analysts. The reported number represents a change of +6.2% year over year.Revenue- Intersegment eliminations: $-1.33 million compared to the $-1.86 million average estimate based on three analysts. The reported number represents a change of +14% year over year.Revenue- Imaging & Identification: $305.1 million compared to the $306.85 million average estimate based on three analysts. The reported number represents a change of +4.5% year over year.Adjusted EBITDA- Engineered Products: $63.25 million versus the three-analyst average estimate of $62.13 million.Adjusted EBITDA- Clean Energy & Fueling: $137.66 million versus $126.81 million estimated by three analysts on average.Adjusted EBITDA- Climate & Sustainability Technologies: $83.83 million compared to the $95.68 million average estimate based on three analysts.Adjusted EBITDA- Pumps & Process Solutions: $192.85 million compared to the $194.13 million average estimate based on three analysts.Adjusted EBITDA- Imaging & Identification: $89.35 million versus $84.7 million estimated by three analysts on average.View all Key Company Metrics for Dover here>>>
Shares of Dover have returned -4.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways Dover's Q2 earnings topped estimates as revenue growth and margin gains offset input-cost inflation.Bookings jumped 16% across all five segments, lifting second-half visibility and confidence in the outlook.Dover raised its 2026 adjusted EPS guidance to $10.55-$10.75 on improving end-market demand. Dover Corporation (DOV - Free Report) reported second-quarter 2026 adjusted earnings of $2.74 per share, up 12% year over year and beating the Zacks Consensus Estimate of $2.72. The improvement reflected broad-based revenue growth, stronger segmental margins and operational execution that more than offset input-cost inflation.
On a reported basis, Dover delivered earnings of $2.31 per share in the quarter, up 14% year over year.
Revenues rose 7% year over year to $2.19 billion but missed the consensus estimate of $2.21 billion. Organic revenues increased 4.8% in the quarter. Our model expected organic revenues to rise 5.7%.
DOV's Margins Expand on Operating ExecutionCost of sales increased 6.3% year over year to $1.31 billion. Gross profit rose 7.6% to $881 million, while the gross margin improved to 40.2% from 39.9% in the prior-year quarter.
Selling, general and administrative expenses increased 5.4% to $488.8 million. Total adjusted segment EBITDA advanced 10.3% to $567 million, and the related margin expanded 80 basis points to 25.9%.
Dover’s Q2 Segmental PerformancesThe Engineered Products segment’s revenues increased 2.7% year over year to $283 million in the quarter. The reported figure came in line with our estimate. The segment’s adjusted EBITDA rose 7.8% to $63.2 million from $58.7 million in the year-ago quarter. Demand was strong in aerospace and defense components, fluid dispensing and industrial winches, with stabilization in the North American vehicle aftermarket. The figure met our estimate.
The Clean Energy & Fueling segment’s revenues climbed 8.9% year over year to $595 million, led by clean energy components and retail fueling. The figure beat our estimate of $591 million. The segment’s adjusted EBITDA increased 17.9% to $137.7 million on volume leverage, operational execution and acquisition integration benefits. The figure beat our estimate of $131.5 million.
The Imaging & Identification segment’s revenues moved up 4.5% year over year to $305 million. The reported figure missed our projection of $307 million. The segment’s adjusted EBITDA was $89.3 million, up 10.1% from the year-ago quarter’s $81.2 million. The figure missed our estimate of $82 million. Growth came from serialization software, core marking and coding equipment, consumables and spare parts.
The Pumps & Process Solutions segment’s revenues rose 6.2% year over year to $552.7 million in the second quarter but missed our estimate of $558 million. The segment’s adjusted EBITDA totaled $192.9 million, up 11.7% from $172.6 million in the prior-year quarter. The reported figure was lower than our projection of $193 million. AI and energy infrastructure, single-use biopharma and industrial pumps supported the top line, while a richer mix of biopharma shipments aided profitability.
The Climate & Sustainability Technologies segment’s revenues grew 9.4% year over year to $455.1 million from $416.2 million. Robust shipments of carbon dioxide refrigeration systems and global heat exchangers drove the gain. We had predicted revenues of $459 million for this segment. The segment’s adjusted EBITDA totaled $83.8 million compared with $84.9 million in the year-earlier quarter, marking a decline of 1.2%. The figure lagged our estimate of $103 million.
DOV's Bookings Signal Strong DemandDover’s bookings in the second quarter were worth $2.33 billion, growing 16% from $2.01 billion in the prior-year quarter. Bookings rose across all five segments, strengthening second-half visibility and supporting management's confidence in the outlook. Total bookings were higher than our estimate of $2.26 billion. The book-to-bill ratio came in at 1.06.
Dover's Cash Flow Improves in Q2Cash flow from operating activities rose to $236 million from $212 million in the year-ago quarter. Capital expenditure declined to $47.8 million from $60.9 million.
The free cash flow increased 24.4% to $188.4 million. It represented 8.6% of revenues and 50.7% of adjusted earnings from continuing operations. For the first six months, the free cash flow totaled $319.6 million, up from $260.7 million.
DOV Raises 2026 Earnings GuidanceBacked by the ongoing improvement in end-market demand, Dover raised its 2026 adjusted earnings guidance to $10.55-$10.75 per share from the previously mentioned $10.45 to $10.65.
Full-year revenue growth is projected at 6-8%, including organic growth of 4-6%. The company also expects the free cash flow to be 14-16% of revenues and capital expenditure to be $190-$210 million.
Dover Stock’s Price PerformanceThe company’s shares have gained 16.2% in the past year compared with the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
DOV’s Zacks RankDover currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s Peer PerformanceGraco Inc.’s (GGG - Free Report) second-quarter 2026 adjusted earnings of 91 cents per share beat the Zacks Consensus Estimate of 81 cents. The bottom line grew 22% year over year.
Graco’s revenues of $591 million missed the consensus estimate of $609 million. The top line increased 3.3% year over year.
2 Manufacturing Stocks Awaiting ResultsFlowserve Corporation (FLS - Free Report) is scheduled to release second-quarter 2026 results on June 29. The Zacks Consensus Estimate for FLS’s second-quarter 2026 earnings is pegged at 86 cents per share, suggesting a year-over-year dip of 5.5%
The Zacks Consensus Estimate for Flowserve Corp’s top line is pegged at $1.16 billion, indicating a decrease of 2.4% from the prior year’s actual. FLS has a trailing four-quarter average surprise of 12.7%.
Applied Industrial Technologies, Inc. (AIT - Free Report) is scheduled to release fourth-quarter fiscal 2026 results on Aug. 13. The Zacks Consensus Estimate for AIT’s fourth-quarter 2026 earnings is pegged at $2.91 per share, suggesting year-over-year growth of 3.9%.
The Zacks Consensus Estimate for Applied Industrial’s top line is pegged at $1.29 billion, indicating an increase of 5.6% from the prior year’s actual. AIT has a trailing four-quarter average surprise of 4%.
Royalty Management Holding Corp (NASDAQ:RMCO) said a company it holds a royalty stake in, ReElement Technologies, has closed new financing that will fund an expansion of operations and increase revenue flowing to Royalty Management under an existing royalty agreement.
ReElement, which operates critical mineral refining facilities in Noblesville and Marion, Indiana, processes end-of-life recycled materials, virgin ores and manufacturing byproducts into magnet-grade rare earth elements and other critical minerals for the electrification, defense and technology sectors using a chromatographic separation platform.
The financing includes a $25 million investment from the US Department of War to accelerate ReElement's production of critical minerals for defense and commercial use, in addition to a previously closed investment from private equity firm Transition Equity Partners.
Royalty Management holds an intellectual property development program with ReElement, under which it provides capital for developing patents and refining technologies in exchange for an ongoing royalty on resulting sales. The company said the new capital raised by ReElement to expand operations is expected to increase revenues tied to refining technologies covered under that program.
"ReElement has consistently demonstrated that their novel rare earth and critical mineral refining methods are the next generation of how the world looks at this industry, especially from a cost-competitive and purity standpoint," said Thomas Sauve, CEO of Royalty Management. "We are excited about having this relationship where Royalty can help provide the technology advancements in partnership with ReElement to help them continue to drive process and efficiency."
Separately, Royalty Management said its board has set a record date of September 30, 2026 for its next quarterly cash dividend. Shareholders of record on that date will receive a payment of $0.0025 per share, payable October 10, 2026.
T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) shares fell about 5% in early trade on Thursday after the wireless carrier reported second quarter results that topped Wall Street expectations on earnings but narrowly missed revenue estimates.
The company reported adjusted earnings per share of $2.99 for the quarter, ahead of analyst expectations of about $2.55.
Revenue came in at $22.79 billion, slightly below the consensus estimate of $22.95 billion.
T-Mobile added 277,000 net postpaid accounts during the quarter, exceeding expectations for 259,000 additions, though the figure declined 13% year over year. Postpaid average revenue per account (ARPA) rose 2% from a year earlier to $152.91.
Service revenue increased 9% year over year to $19 billion, while postpaid service revenue grew 13% to $15.9 billion. Net income was $3.2 billion, up 1% from the prior-year period, while diluted earnings per share increased 5% to $2.99.
The company highlighted continued customer momentum, including a record wireless Net Promoter Score (NPS) of 46, which it described as the highest score for a major U.S. carrier based on HarrisX survey data.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” T-Mobile CEO Srini Gopalan said.
Gopalan added that the company’s strategy remained focused on combining network quality, value and customer experience to support growth across wireless, broadband and other businesses.
T-Mobile also raised its full-year adjusted free cash flow outlook, now expecting a range of $18.4 billion to $18.8 billion.
Despite the earnings beat and higher free cash flow forecast, investors focused on the slight revenue shortfall and the sequential slowdown in postpaid account additions, weighing on shares following the results.
T-Mobile (TMUS - Free Report) reported $22.79 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.9%. EPS of $3.13 for the same period compares to $2.84 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $22.74 billion, representing a surprise of +0.21%. The company delivered an EPS surprise of +25.7%, with the consensus EPS estimate being $2.49.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how T-Mobile performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total postpaid accounts: 34.7 million versus the three-analyst average estimate of 34.69 million.Postpaid ARPA: $152.91 versus $153.10 estimated by three analysts on average.Postpaid phone churn: 1% versus the two-analyst average estimate of 0.9%.Revenues- Total service revenues: $18.98 billion versus $18.76 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.Revenues- Equipment revenues: $3.52 billion versus $3.57 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2.5% change.Revenues- Other revenues: $284 million versus the five-analyst average estimate of $257.46 million. The reported number represents a year-over-year change of +11.4%.Revenues- Service revenues- Prepaid revenues: $2.47 billion versus $2.51 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.4% change.Revenues- Service revenues- Postpaid revenues: $15.85 billion versus the four-analyst average estimate of $15.86 billion. The reported number represents a year-over-year change of +12.6%.Revenues- Wholesale and other service revenues: $657 million versus the three-analyst average estimate of $658.49 million. The reported number represents a year-over-year change of -8.4%.View all Key Company Metrics for T-Mobile here>>>
Shares of T-Mobile have returned +5.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) shares fell about 5% in early trade on Thursday after the wireless carrier reported second quarter results that topped Wall Street expectations on earnings but narrowly missed revenue estimates.
The company reported adjusted earnings per share of $2.99 for the quarter, ahead of analyst expectations of about $2.55.
Revenue came in at $22.79 billion, slightly below the consensus estimate of $22.95 billion.
T-Mobile added 277,000 net postpaid accounts during the quarter, exceeding expectations for 259,000 additions, though the figure declined 13% year over year. Postpaid average revenue per account (ARPA) rose 2% from a year earlier to $152.91.
Service revenue increased 9% year over year to $19 billion, while postpaid service revenue grew 13% to $15.9 billion. Net income was $3.2 billion, up 1% from the prior-year period, while diluted earnings per share increased 5% to $2.99.
The company highlighted continued customer momentum, including a record wireless Net Promoter Score (NPS) of 46, which it described as the highest score for a major U.S. carrier based on HarrisX survey data.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” T-Mobile CEO Srini Gopalan said.
Gopalan added that the company’s strategy remained focused on combining network quality, value and customer experience to support growth across wireless, broadband and other businesses.
T-Mobile also raised its full-year adjusted free cash flow outlook, now expecting a range of $18.4 billion to $18.8 billion.
Despite the earnings beat and higher free cash flow forecast, investors focused on the slight revenue shortfall and the sequential slowdown in postpaid account additions, weighing on shares following the results.
Key Takeaways T added over 1 million Advanced Connectivity customers in second-quarter 2026.Fiber added 367,000 customers, while advanced home Internet connections rose 29.5%.Promotions, legacy declines and heavy network investment continue to pressure AT&T's outlook. AT&T Inc. (T - Free Report) is trying to show that a cleaner connectivity model can still produce steady growth. The stock story now rests less on media optionality and more on execution in fiber, 5G and bundled Internet-wireless services.
That focus gives investors a clearer operating thesis. It also leaves T exposed to promotional wireless competition, legacy copper declines and the capital intensity needed to keep expanding network reach.
AT&T Resets Around Advanced ConnectivityAT&T has moved away from a broader media and video structure. The divestiture of media assets and the sale of its Video business sharpened the company’s focus on core connectivity services.
Effective first-quarter 2026, the company realigned reporting around Advanced Connectivity, Legacy and Latin America. Advanced Connectivity generated about 90% of operating revenues in that quarter and now houses domestic 5G, fiber-based wireless, advanced home Internet, business fiber and related services.
T Builds Growth Through Fiber and WirelessThe growth case starts with customer additions. In second-quarter 2026, AT&T reported more than 1 million Advanced Connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
Fiber remained central to that momentum, with 367,000 net additions. Fixed wireless added 279,000 customers, while advanced home Internet connections rose 29.5% year over year. Convergence is another lever. About 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan, and management has indicated that converged households churn at roughly half the rate of standalone accounts.
AT&T Sees Edge and Open RAN as LeversAT&T is also positioning the network for heavier edge and artificial intelligence-related traffic. Dense fiber, 5G backhaul and spectrum depth are expected to support lower-latency workloads and stronger uplink performance over time.
The company has cited more than 20 metro multi-access edge computing zones and more than 150 active private 5G and edge trials. Verizon Communications Inc. (VZ - Free Report) remains a relevant peer because AT&T’s wireless pricing and network investments are judged against other national carriers. T-Mobile US Inc. (TMUS - Free Report) is another key reference point for subscriber growth and promotional intensity in postpaid wireless.
Open radio access network deployment is part of the cost story. AT&T aims to deploy Open RAN for 70% of wireless network traffic across open-capable platforms by late 2026, using the effort to lower long-run network costs and reduce reliance on single vendors.
T Still Faces Pricing and Legacy PressureWireless growth does not remove pricing risk. The U.S. market remains highly competitive, and promotions, plan incentives and converged discounts can limit per-product monetization even as AT&T adds subscribers.
Legacy erosion remains another drag. In second-quarter 2026, Legacy operating revenues declined 25.9% year over year, while Legacy EBITDA fell 45.5% as cost reductions lagged customer migrations.
Older business services are also pressuring results. Business Transitional and Other revenues within Advanced Connectivity fell 16.6% year over year, showing that the cleanup of copper-based and transitional services still affects reported growth and margins.
How AT&T’s Hold Signal Fits the SetupAT&T remains a balanced stock story. Fiber, wireless and convergence support the income and valuation case, but promotional pressure, legacy declines and heavy investment needs keep the setup from looking like a simple growth call.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a neutral short-term earnings-revision backdrop rather than a high-conviction buy signal.
The Style Scores tell a similar mixed story. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The strong value mark supports the valuation argument, while weaker growth and momentum scores suggest investors may need patience as the company works through the next stage of its connectivity reset.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hostilities heating up in the Strait of Hormuz are taking spot oil prices up 4-5% and pre-market futures down precipitously. With the Yemeni Houthis now involved bombing Saudi oil tankers and repeated U.S. air strikes in Iran, WTI oil prices have risen +4% to over $91 per barrel (/bbl) and Brent crude is up +5% to nearly $100/bbl.
The Dow, as a result, is down -560 points at this hour. The S&P 500 is -83 and the tech-heavy Nasdaq is -450. The small-cap Russell 2000 is -27 points at this hour. This, despite mostly positive data in earnings reports yesterday afternoon from Texas Instruments (TXN - Free Report) , Southwest Airlines (LUV - Free Report) and most especially Alphabet (GOOGL - Free Report) . All these stocks are down in today’s pre-market trading session.
Jobless Claims Back to 1960s Lows: 187K, 1.796MPrior to the Covid pandemic, which pushed jobless claims up to record highs in the first half of 2020, we saw Weekly Jobless Claims reduce to lows not seen since Jimi Hendrix was on the album charts (album charts? ask your parents) in the late 1960s. We’re back there again this morning: Initial Jobless Claims reached 187K for last week, well below the 212K expected and the slightly upwardly revised 209K the previous week.
For Continuing Claims, more of the same: 1.796 million is below the downwardly revised 1.798 million from the prior week, the lowest print since the week of May 30th, which included the Memorial Day holiday. A year ago, we were well above 1.9 million longer-term jobless claims (without ever hitting the psychologically important 2 million jobless claims), but we haven’t touched 1.9 million at all in 2026 so far.
Q2 Earnings Results at a GlanceThe world’s largest airline, American Airlines (AAL - Free Report) , posted a whopping +400% positive earnings surprise this morning, swinging to a positive earnings result from a year ago to $0.15 per share. Revenues of $16.74 billion also beat estimates, by a decidedly less eye-popping +0.22%, but up big from the $14.39 billion reported in the year-ago quarter. Fuel costs in upcoming quarters is weighing on the share price this morning, however.
T-Mobile U.S. (TMUS - Free Report) shares are trading down -5% at this hour, despite reporting a +25.7% earnings beat to $3.13 per share this morning, well ahead of the $2.84 per share posted in the year-ago quarter. Revenues came in at $22.79 billion, a +0.21% improvement from estimates and the $21.13 billion from Q2 2025.
Investment bank Blackstone (BX - Free Report) shares are flattish this morning — considered good news in the current trading climate — after surpassing earnings expectations by +14.3% to $1.52 per share. Revenues surprised by a solid +12.7% to $3.8 billion in the quarter. Shares are still down -20% year to date, but it’s nice to see the stock not being further gutted in this morning’s selloff.
Aerospace and defense giant Lockheed Martin (LMT - Free Report) shares are up in today’s pre-market by +5.5%, partly on increased tensions in the Middle East which may push up demand for military operation products and services, and partly on a strong Q2 performance. Earnings of $7.94 per share outpaced estimates by +9.97%, up from the $7.29 per share reported a year ago. Revenues of $20.06 billion beat forecasts by +3.26% this morning.
For the quarter ended June 2026, Dow Inc. (DOW - Free Report) reported revenue of $12.09 billion, up 19.7% over the same period last year. EPS came in at $1.44, compared to -$0.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $12.04 billion, representing a surprise of +0.41%. The company delivered an EPS surprise of +15.2%, with the consensus EPS estimate being $1.25.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dow Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Performance Materials & Coatings: $2.36 billion versus the three-analyst average estimate of $2.16 billion. The reported number represents a year-over-year change of +10.9%.Revenues- Corporate: $180 million versus the three-analyst average estimate of $162.67 million. The reported number represents a year-over-year change of +9.8%.Net Sales- Packaging & Specialty Plastics: $6.39 billion versus $6.67 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +27.1% change.Net Sales- Industrial Intermediates & Infrastructure: $3.17 billion versus $3.05 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.6% change.Operating EBITDA- Packaging & Specialty Plastics: $1.64 billion versus $1.89 billion estimated by three analysts on average.Operating EBITDA- Corporate: $-1 million compared to the $-48.33 million average estimate based on three analysts.Operating EBITDA- Performance Materials & Coatings: $291 million compared to the $274.51 million average estimate based on three analysts.Operating EBITDA- Industrial Intermediates & Infrastructure: $383 million versus $42.48 million estimated by three analysts on average.View all Key Company Metrics for Dow Inc. here>>>
Shares of Dow Inc. have returned +6.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Dow posted adjusted Q2 EPS of $1.44, beating estimates by 15%, as sales rose 19.7% to $12.1B.Higher local prices and self-help benefits offset a 1% volume decline tied to planned maintenance.Dow expects more than $1.3B in 2026 self-help benefits, with gains accelerating into 2027. Dow Inc. (DOW - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.44 per share, reversing the year-ago loss of 42 cents per share. The figure beat the Zacks Consensus Estimate of $1.25 by 15%. The year-over-year improvement was mainly driven by higher prices and benefits from Dow’s self-help initiatives.
Including one-time items, such as costs associated with the Transform to Outperform program, partially offset by an income tax adjustment,the company reported earnings per share of 99 cents in the quarter compared to the year-ago quarter’s loss of $1.18.
Net sales rose 19.7% year over year to around $12.1 billion and beat the consensus estimate of $11.6 billion by 3.8%. Local prices increased 20%, while volume declined 1% as planned maintenance weighed on Packaging & Specialty Plastics.
GAAP net income was $802 million in the reported quarter compared with a net loss of $801 million a year ago. Operating EBITDA increased to $2.3 billion from $703 million.
DOW’s Segment HighlightsPackaging & Specialty Plastics sales rose 27% year over year to $6,385 million. The figure fell behind our estimate of $6.7 billion. Volume fell 4% due to declines in both businesses, including higher planned maintenance in Hydrocarbons & Energy, which reduced merchant sales. Lower polyethylene volumes in EMEAI and Asia Pacific also reflected the Middle East conflict. Higher polyethylene and olefins prices more than offset the volume pressure.
Industrial Intermediates & Infrastructure sales increased 14% year over year to $3.2 billion. The figure surpassed our estimate of $3.04 billion. Volume declined 2% as lower demand in Polyurethanes & Construction Chemicals, including the effects of the Middle East conflict, outweighed growth in Industrial Solutions. Industrial Solutions volumes benefited from recent alkoxylation investments and increased demand for data center applications.
Performance Materials & Coatings sales advanced 11% year over year to $2.4 billion. The figure beat our estimate of $2.2 billion. Volume grew 6%, supported by gains across both businesses and strength in downstream silicones. Consumer Solutions benefited from higher demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded increased acrylic monomers and architectural coatings volumes.
DOW’s FinancialsCash flow from operating activities for continuing operations was $1.3 billion, reversing the year-ago use of $470 million. The improvement was primarily driven by higher earnings across all businesses, which more than offset an expected working capital build associated with revenue growth.
Cash and cash equivalents were $3.97 billion as of June 30, 2026, up from $3.8 billion at the end of 2025. Shareholder returns through dividends totaled $253 million during the quarter.
DOW's OutlookDow expects approximately $200 million in additional benefits from Transform to Outperform during 2026. This raises the company’s expected total in-year benefits from self-help initiatives to more than $1.3 billion.
For the second half of 2026, management plans to focus on growth and innovation in attractive end markets, investments to strengthen the portfolio and balanced capital allocation. Dow expects the growth and productivity benefits from Transform to Outperform to accelerate through the remainder of 2026 and into 2027.
DOW’s Stock Price PerformanceDOW’s shares have gained 24.7% in the past year against the industry’s decline of 0.8%.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key PicksDOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Oracle (ORCL - Free Report) Austin, TX-based Oracle Corporation is one of the largest enterprise-grade database, middleware, and application software providers.
ORCL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ORCL has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.2% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $8.03 per share. ORCL boasts an average earnings surprise of +12.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ORCL should be on investors' short list.
Wall Street analysts forecast that American Tower (AMT - Free Report) will report quarterly earnings of $2.71 per share in its upcoming release, pointing to a year-over-year increase of 4.2%. It is anticipated that revenues will amount to $2.71 billion, exhibiting an increase of 3.1% compared to the year-ago quarter.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific American Tower metrics that are routinely monitored and predicted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Total operating revenues- Data Centers' of $294.65 million. The estimate indicates a change of +12.5% from the prior-year quarter.
The average prediction of analysts places 'Total operating revenues- Services' at $64.88 million. The estimate indicates a change of -35.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Total operating revenues- Total Property' should arrive at $2.65 billion. The estimate indicates a change of +4.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Geographic Revenues- Total International' will likely reach $1.09 billion. The estimate points to a change of +13.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Geographic Revenues- U.S. & Canada' should come in at $1.27 billion. The estimate indicates a year-over-year change of -3%.
The consensus estimate for 'Geographic Revenues- Latin America' stands at $429.34 million. The estimate suggests a change of +10.4% year over year.
Analysts' assessment points toward 'Geographic Revenues- Europe' reaching $252.39 million. The estimate suggests a change of +8.3% year over year.
It is projected by analysts that the 'U.S. & Canada - Ending Balance' will reach 41,766 . Compared to the current estimate, the company reported 41,843 in the same quarter of the previous year.
The consensus among analysts is that 'Total - Ending Balance' will reach 149,255 . Compared to the present estimate, the company reported 148,797 in the same quarter last year.
Analysts predict that the 'Organic Tenant Billings Growth - Total International' will reach 2.9%. The estimate compares to the year-ago value of 6.5%.
Analysts forecast 'Organic Tenant Billings Growth - U.S. & Canada' to reach 0.5%. Compared to the current estimate, the company reported 3.7% in the same quarter of the previous year.
Analysts expect 'International - Ending Balance' to come in at 107,633 . The estimate compares to the year-ago value of 106,954 .
View all Key Company Metrics for American Tower here>>>
American Tower shares have witnessed a change of -4.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), AMT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.86; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $3.90 per share. XYZ boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XYZ should be on investors' short list.
