PepsiCo says high prices at the pump are keeping consumers from heading into the store to buy snacks.
The food and beverage giant reported earnings Thursday (July 9) revenues of $24.2 billion for the quarter, climbing 6.4% from the same period last year. However, this growth came from the company’s international business, with North American food volumes flat and beverage volume down 4%.
“In the U.S., we’re seeing the consumer changing behaviors, basically an acceleration of some of the behaviors we saw in the past,” CEO Ramon Laguarta said during an earnings call. “Probably some channels, more the impulse channels, have been impacted, where there is more of a correlation with the price of gas. Certain convenience stores … we’re seeing a slowdown of the conversion of traffic into purchases. We’re seeing that. Now, will it change in the coming months? It all depends on the price of gas, clearly that’s something that is beyond our control.”
“We need to see some improvement in the convenience and gas channel,” Steve Schmitt, the company’s chief financial officer, said later in the call. “Hopefully we’ll get some tailwinds from gas prices to do that. We’ll continue to push the productivity side.”
The earnings come as American consumers continue to find ways to stretch their budgets. As PYMNTS reported Thursday, that includes adopting the practice of cash stuffing, or dividing currency into envelopes labeled for things like groceries, rent or utilities.
It has become one of the more notable finance trends on social media, but it is actually one of the oldest methods of household budgeting.
“For decades, payday followed a familiar routine. Workers visited their bank to cash a paycheck, carried home paper currency and sorted it into envelopes reserved for the month’s expenses,” PYMNTS wrote. “Rent had its envelope. Groceries had another. Utility payments had another. When bills came due, consumers either returned to the bank for a money order, wrote checks from their accounts or paid companies directly. The envelopes served as a household ledger long before budgeting software existed.”
Research from PYMNTS Intelligence highlights how and why Generation Z is keen to follow in older generations’ footsteps on this front. Although this age group is commonly portrayed as rewriting the rules of commerce and banking, the research tells a different story.
“Strip away the smartphones and mobile apps, and Gen Z wants what previous generations wanted: to save money, build financial security, shop efficiently and maintain control over household finances,” the report added.
A sharp sector rotation has knocked down some of the market’s steadiest names, and Jim Cramer told CNBC viewers this week that the dislocations are exactly the kind of setup patient investors should welcome. On the July 6 episode of Mad Money, Cramer framed the pullback this way: “These rotations create dislocations that seem to come out of nowhere. And sometimes those dislocations can give you incredible opportunities to high quality companies at a discount that shouldn’t even exist. And it wouldn’t if it weren’t for the rotation.”
Cramer named three specific dip-buy candidates on the following night’s show.
Walmart: Fuel Fears Fade as the Stock Slides On the July 7 Mad Money, Cramer said “Walmart’s down nearly 18% from its recent highs. I think you’re getting an incredible buying opportunity here because the stock’s been getting pummeled right as Walmart’s biggest worries have started to fade away.” His thesis centers on gasoline: “Six weeks ago, everybody was terrified that Walmart and many other retailers would be laid to waste in a world where consumers had to spend fortunes at the pump. That world is gone, people.”
Walmart (NYSE:WMT | WMT Price Prediction) trades around $113.19, off 6.17% over the past month against a 52-week high of $135.16. The fundamentals came through in the Q1 FY27 report: revenue of $175.68 billion grew 6.1% year over year, global eCommerce jumped 26%, and Walmart Connect ad revenue rose 44% excluding VIZIO. Management reaffirmed full-year adjusted EPS guidance of $2.75 to $2.85 and authorized a fresh $30 billion buyback in February.
Johnson & Johnson: A Pure-Play Pharma Cramer Says Was Sold by Mistake Cramer’s July 6 pitch on Johnson & Johnson (NYSE:JNJ): “Johnson & Johnson is now a pure-play pharma business with no consumer exposure. It already spun off its over-the-counter business and it’s parting with Orthopedics. Even though they’re being taken down by mistake, that’s why I think you have to pounce.”
The stock rebounded 14.81% over the past month to around $266.13. Q1 2026 revenue rose 9.91% to $24.062 billion, marking a fourth straight EPS beat. Growth drivers include DARZALEX at $3.964 billion (up 22.5%), TREMFYA at $1.608 billion (up 68.3%), and MedTech Cardiovascular up 13.0%. Management raised full-year adjusted EPS guidance to $11.45 to $11.65 and pushed the quarterly dividend to $1.34, extending a 64-year streak of annual increases. Forward P/E sits at 23.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Walmart didn't make the cut. Grab the names FREE today.
PepsiCo: A 4% Yield Ahead of Thursday’s Report On the same July 6 show, Cramer said of PepsiCo (NASDAQ:PEP): “PepsiCo dropped nearly a buck, sinking to a level where it sports a dividend yield north of 4%. I think the rotation has given you a terrific place to start a position ahead of Thursday’s report.”
Well, earnings are now out, and PesiCo shares are down 3.3% to $137.73. After June’s quarterly bump to $1.48, PepsiCo’s 54th consecutive annual raise. For income-focused readers, our team has flagged similar setups in the 10 Dividend Kings to Buy Now and Hold Forever report.
A Selective, Stock-Specific Call Cramer has been cautious in other market pockets this summer, so these three ideas should be read as targeted, stock-specific dip-buying calls tied to a rotation. They are his opinions delivered on Mad Money and reported here for context, not endorsed as recommendations. Readers should weigh valuation, position sizing, and their own timelines before acting.
The Throughline The connective thread across Cramer’s three picks is defensive quality with rising cash returns: Walmart compounds retail dominance with high-margin advertising, Johnson & Johnson leans into a pharma pipeline, and PepsiCo defends a yield near 4% while international volumes accelerate. Whether the rotation is truly a gift will show up in the next earnings reports and in how quickly the market rewards fundamentals over sentiment.
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1:55pm: Micron goes on a run Micron Technology Inc (NASDAQ:MU) (Micron Technology Inc (NASDAQ:MU)) shares rose 7% on Thursday after the company announced plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain and support future manufacturing capacity.
The investment includes $500 million in strategic financing support for GlobalWafers to advance development of its GlobalWafers America 300mm raw silicon wafer manufacturing facility in Sherman, Texas.
The companies also plan to enter into a 10-year supply agreement that would provide Micron with access to additional raw silicon wafer capacity.
The news also lifted shares across the broader semiconductor sector, with Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) (Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD), Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD)) gaining 7%, Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI) (Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI), Qualcomm Inc (NASDAQ:QCOM, XETRA:QCI)) rising 4%, Taiwan Semiconductor Manufacturing Co (ADR) (Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM)) advancing 3%, Broadcom Inc (NASDAQ:AVGO, XETRA:1YD) (Broadcom Inc (NASDAQ:AVGO, XETRA:1YD), Broadcom Inc (NASDAQ:AVGO, XETRA:1YD)) up 2% and Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) (Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2), Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2)) climbing 6%.
12:30pm: Little drama Stocks are bouncing back from yesterday’s losses, though the recovery remains cautious, according to Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
“While the attacks in the Middle East appeared to intensify overnight, there has been little dramatic rhetoric today, leading to hopes that any renewed conflict can be avoided," Beauchamp noted.
"But the weekend is not far off, and the US has shown a preference for strikes over a weekend, leading to some caution in markets despite a stronger open for the US."
11:05am: Oil upside may be limited US crude prices have climbed about 13% since last week’s lows, testing the $75-per-barrel level and its 200-day moving average, with the possibility of a move above $80 growing, according to Ipek Ozkardeskaya, Senior Analyst at Swissquote. Brent crude briefly traded above $80 per barrel, though both benchmarks eased slightly on Wednesday as markets continued to weigh geopolitical risks.
Ozkardeskaya said the immediate upside pressure on oil may be less severe than during the early stages of the conflict, as markets have become more accustomed to disruptions around the Strait of Hormuz and the initial shock has faded. Several vessels have also continued transiting the key shipping route, while Saudi Arabia has cut oil prices for Asian buyers to support demand.
She noted that the oil market has recently shifted quickly between supply shortages and surpluses, meaning a restoration of Hormuz traffic could quickly bring supply back into balance. China’s significant reserves and cautious approach to replenishment could also limit a sharp price spike.
However, Ozkardeskaya warned that prolonged tensions could create renewed supply concerns. A sustained disruption, attacks on Gulf energy infrastructure, or further depletion of global oil inventories could quickly eliminate the existing supply cushion and push prices significantly higher.
10am: Chipmakers help Nasdaq rally continue Chipmakers and other AI stocks have led Wall Street to a positive open, with another bout of rotation back into the semiconductor sector.
The Nasdaq rolled 0.7% higher in initial trades, with the S&P 500 up 0.4%. After an initial wobble in the red, the Dow edged 0.1% higher, held back by losses in heavyweight technology and consumer names including IBM, Salesforce and Microsoft, as well as consumer giants like Coca-Cola, Disney and Procter & Gamble.
On the Nasdaq and S&P, semis dominated the leaderboard, with Lam Research, Applied Materials and KLA all jumping more than 7%.
Micron buzzed up over 6% after plans mentioned below to invest up to $3 billion in the US semiconductor supply chain, while Arm, AMD, Marvell and Western Digital also posted strong gains as the AI infrastructure trade is in investors' good books again.
8.15am: Mixed session expected as oil volatile after Iran strikes continue US stock futures pointed to another mixed Wall Street session on Thursday, as investors weighed fresh developments in the Middle East against signs that chip stocks could extend their recent rally.
Dow Jones futures were down 0.1%, while S&P 500 futures rose 0.2% and Nasdaq 100 futures climbed 0.8%.
This comes a day after the Dow fell 577 points or 1.1%, the S&P declined or 0.3% to 7,483, while the Nasdaq gained 0.2% to finish at 25,871.
Asian and European markets traded mostly higher in the early hours, with London's FTSE an exception as it was hit by a large fall for AstraZeneca on the back of a failed drug trial.
Oil prices remained volatile, as more strikes and words were exchanged between the US and Iran.
WTI crude, which topped $75 a barrel on Wednesday, briefly dropped below $72 before recovering to around $74.
The latest moves came as the US said it had struck another 90 Iranian targets, taking the total to 170 over the past 48 hours, while Iran launched retaliatory attacks on US military sites in Bahrain, Qatar and Kuwait.
President Trump was reported as saying Iran had been in touch with the US and "want to make a deal", although he questioned whether Tehran would honour any agreement.
The White House was reported by Axios to be preparing for the possibility of fighting around the Strait of Hormuz lasting days or even weeks.
Kathleen Brooks at XTB said markets were "normalizing to the latest flare up of tensions in the Middle East".
"Although the events of recent days are another sign that the path to a long-term peace will have many twists and turns, the market seems well placed to absorb the current tensions," Brooks added.
She noted that despite the angst about the Iran war, there was a rotation out of broader tech stocks and back into chip stocks.
"Ahead today, we could see a continued rally in chip stocks. SanDisk and Nvidia are pointing to further gains today, while the hyperscalers like Microsoft and Alphabet are declining in the pre-market, suggesting that the rotation within the AI trade continues," she said.
In economic data, initial jobless claims and existing home sales are scheduled.
Key Takeaways Qualcomm automotive revenues reached a record $1.33B in Q2 FY26, up 38% year over year.QCOM plans fifth-gen Snapdragon Digital Chassis shipments by FY26-end with major performance gains.Qualcomm expects automotive revenue growth to accelerate to about 50% year over year in Q3 FY26. Qualcomm Incorporated (QCOM - Free Report) is benefiting from strong traction in the automotive business. Automotive revenue reaches a record $1.33 billion in the second quarter of fiscal 2026, up 38% year over year. There are several factors driving this growth.
Growth is being fueled by its fourth-generation Snapdragon Digital Chassis, which integrates multiple vehicle technologies into one platform, including connectivity, telematics, digital cockpit and advanced driver assistance systems (ADAS). Qualcomm reported that more than 1 million vehicles are already operating using Snapdragon Ride processors for ADAS and autonomous driving. The company expects continued share gains in fiscal 2027, particularly in ADAS. It boasts a worldwide client base that includes leading automakers and technology companies like Volkswagen Group, Toyota, Hyundai Mobis, Leapmotor, Li Auto and several other OEMs.
By the end of fiscal 2026, Qualcomm plans to begin commercial shipments of its fifth-generation Snapdragon Digital Chassis. Compared to prior generations, the platform will offer 3x higher CPU performance, 3x higher GPU capability and 12x higher NPU performance.
Qualcomm’s automotive revenue exceeded an annualized run rate of $5 billion for the first time. It expects to exit fiscal 2026 at a run rate above $6 billion. Third quarter fiscal 2026 automotive revenue is expected to grow approximately 50% year over year, faster than the 38% growth reported in the second quarter.
How Are Competitors Faring?The company faces competition from NVIDIA Corporation (NVDA - Free Report) and Intel Corporation (INTC - Free Report) in this domain. NVIDIA continues to build a longer-duration growth option in automotive, robotics and other physical AI applications. In 2026, NVIDIA announced multiple automotive and mobility partnerships at the GTC 2026, with BYD, Geely, Isuzu, Nissan, Hyundai Motor Company and Kia adopting or expanding use of its DRIVE Hyperion platform to develop Level 4 and next-generation autonomous vehicles, alongside broader robotaxi ecosystem collaborations.
The acquisition of Mobileye has helped the company to rapidly penetrate the autonomous car technology market, currently dominated by the likes of NVIDIA and Qualcomm. With the buyout, Intel has gained access to Mobileye’s technologies related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management. This has increased its customer base and augmented its top-line growth.
QCOM’s Price Performance, Valuation and EstimatesQualcomm shares have gained 17.1% over the past year compared with the industry’s growth of 75%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 17.1 forward earnings, lower than 32.39 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for fiscal 2026 have remained unchanged, and those for 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta (NASDAQ: META | META Price Prediction) and Intel (NASDAQ: INTC) both reported Q1 2026 results that sharpened a debate about who actually earns money from the AI buildout. Meta turned $19.00 billion in quarterly capex into ad growth. Intel spent aggressively on foundry capacity while absorbing a $4.07 billion restructuring charge tied largely to Mobileye.
Ad Engines Hum at Meta. Foundry Losses Weigh on Intel. Meta’s family of apps, Facebook, Instagram, WhatsApp, Messenger, and Threads, reached 3.56 billion daily active people, with ad impressions up 19% and average price per ad up 12% year over year. Advertising revenue reached $55.02 billion, a direct payoff from AI-driven ranking and targeting. Reality Labs still lost $4.03 billion, a reminder that the hardware bet remains unfinished.
Intel’s story is scrappier. Data Center and AI revenue rose 22% to $5.05 billion, helped by Xeon 6 being selected as the host CPU for NVIDIA (NASDAQ: NVDA)’s DGX Rubin NVL8 systems. Intel Foundry pulled in $5.42 billion but still bleeds cash. CEO Lip-Bu Tan called the quarter a “deliberate reset”, cautious language that fits the numbers.
Cash Generator vs. Capital Sponge Lens Meta Intel Q1 Free Cash Flow $12.39B positive -$3.87B Operating Margin 40.6% TTM 6.88% TTM Core Bet Own AI models, own ads, own cloud reuse 18A ramp and foundry customers Balance Sheet Prop Internal cash flow CHIPS Act, NVIDIA, SoftBank Meta funds its $125 to $145 billion 2026 capex plan out of pocket. Intel leans on partners and Washington, with US government equity, a $5.00 billion NVIDIA investment, and CHIPS Act disbursements keeping cash at $17.25 billion. That is survival financing.
The Next Test Is Who Gets Paid for AI Meta trades at roughly 22 times trailing earnings with a forward multiple near 19, cheap for a business growing revenue 33.08%. Intel’s stock has run 226.15% year to date to $120.35, well above the $98.50 analyst target price, on trailing EPS of -$0.60. I want to see actual 18A external customer wins before treating that rally as sustainable. Zuckerberg’s “personal superintelligence” pitch, meanwhile, is already showing up in ad pricing.
Why I Lean Meta Over Intel Right Now If you want cash-generative AI exposure, I lean toward Meta. The advertising flywheel monetizes every incremental GPU, and the balance sheet absorbs the capex without dilution or government scaffolding. If you are a turnaround investor comfortable with binary outcomes, Intel could still work, but at 158x forward earnings and negative free cash flow, you are paying a full price for hope. The signal to watch is concrete foundry customer commitments, which would help determine whether the rally reflects fundamentals or narrative.
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A year ago, Intel (INTC +2.52%) stock was basically left for dead by investors. Nobody wanted anything to do with it, as its chip business was struggling to hold market share against rising competitors. Additionally, its foundry business was struggling to find any new customers. However, after a series of investments by the U.S. government and Nvidia, Intel seems to have gained new life and is up an incredible 400% over the past year.
With that kind of rise in a short time frame, investors must analyze the stock to determine if this is just the beginning of something new or if Intel's stock is overvalued and has reached its peak. Let's take a look at what's going on with Intel and see if there is more room to run.
Image source: Getty Images.
Intel has a lot of future success priced in already While the chip business has its issues, it's not the division that investors are expecting a turnaround in. Instead, they want to see the foundry business do better, as the current AI build-out landscape should be the perfect backdrop for the foundry division to be booming, but it isn't. During Q1, its foundry business grew only 16% to $5.4 billion. For reference, the top company in this space, Taiwan Semiconductor Manufacturing, saw $35.9 billion in revenue, up 41% year over year.
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But Intel could be taking market share from Taiwan Semiconductor in one form. President Trump announced that Apple and Intel have formed a partnership for Intel to act as another foundry, which could give Intel some important new business. That's the kind of announcements investors love to see, but is it enough to justify the stock's current price tag?
The reality is that Intel has a ton of success priced into the stock. It trades for a jaw-dropping 100 times forward earnings right now.
INTC PE Ratio (Forward) data by YCharts
That's pricey for any stock, let alone one undergoing a turnaround. However, because of Intel's woes, its profits aren't optimized, which could account for a lot of its apparent overvaluation. If Intel can return to a profit margin level of about 20% (its average prior to the decline in its business after 2022), then it could produce around $10.8 billion in profits. That would still value the stock at a pricey 51.5 times hypothetical earnings, but it's still better than the 100 times forward earnings it's trading at today.
The reality is that Intel has a ton of turnaround growth priced into its stock. It will have to undergo a major transformation in the next few years to justify its price tag, and I think investors should just stick with Taiwan Semiconductor instead. It's a proven company that doesn't need a turnaround to show that it's back. Instead, it's reasonably priced, growing rapidly, and doesn't have nearly the execution risk that Intel has.
Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Intel (INTC) and Advanced Micro Devices AMD shares are extending gains on July 9th after the latter’s chief technology officer (CTO) pointed to a huge central processing unit (CPU) renaissance ahead.
Speaking at the “RAISE” summit in Paris, Mark Papermaster explicitly said the tech industry has missed a massive structural pivot: agentic AI requires significantly more CPUs, not just GPUs.
While Street remains hyper-focused on GPU clusters for training LLMs, the commercialization of autonomous AI agents is shifting the infrastructure bottleneck in 2026.
Running complex execution agents demands immense processing power for system orchestration, dynamic data movement, and parallel task execution – all of which could boost demand for Intel and AMD products.
Note that both Intel and AMD stock are already trading at roughly 2.5x their price at the start of this year (2026).
AMD is better positioned to capitalize on the CPU resurgence because its entire architecture stack is already built for the orchestration‑heavy workloads agentic AI demands.
EPYC’s extreme core density, superior memory bandwidth, and chiplet‑based scalability give AMD a structural advantage in environments where thousands of autonomous agents must coordinate tasks, move data dynamically, and execute parallel decision loops.
Crucially, AMD’s tight integration between EPYC CPUs and Instinct accelerators – unified under ROCm – creates a coherent execution fabric that hyperscalers can deploy without fragmentation.
Papermaster’s comments weren’t theoretical; they directly map onto AMD’s roadmap, making the company the most architecturally aligned beneficiary of a CPU‑centric AI shift.
On the flip side, Intel is well-positioned to ride rising CPU demand, but its architecture isn’t the best fit for agentic AI's orchestration-heavy workloads.
Xeon 6’s chiplet design uses a dense mesh interconnect built to make separate dies behave like one unified chip – a philosophy optimized for consistency, not the distributed, modular scaling agentic workloads reward.
AMD’s Infinity Fabric takes the opposite approach, treating chiplets as independently scalable units better suited to thousands of coordinating agents.
INTC’s 18A node may narrow the gap, but remains execution-dependent and unproven at scale.
More critically, Intel lacks a unified CPU-GPU software ecosystem comparable to ROCm, leaving agent-level coordination more fragmented than AMD's tightly integrated stack.
Investors should also note that Wall Street currently favors AMD shares over Intel as well.
The consensus rating on Advanced Micro Devices Inc currently sits at “Overweight”, with price targets going as high as $700, indicating potential upside of a little under 30% from here.
In comparison, analysts rate Intel Corp at “Hold” only, with the mean price target of about $107 actually signaling potential for further decline through the second half of this year.
Choosing between Novartis AG (NVS 0.66%) and Teva Pharmaceutical Industries (TEVA 2.00%) requires weighing the stability of an established innovator against the potential of a generic specialist undergoing a significant turnaround.
Novartis is a powerhouse in the drug development world, prioritizing high-margin innovative treatments for complex diseases. In contrast, Teva is a leader in the generic market and is currently pivoting toward biosimilars and specific innovative drugs to rebuild its profitability and reduce its heavy debt load.
The case for Novartis AGNovartis is an innovative medicines company focused on researching and marketing prescription treatments for complex diseases. The business prioritizes key therapeutic areas such as oncology, neuroscience, and cardiovascular health across 118 countries. With a workforce of approximately 77,000 employees, it targets global health needs through high-value medicine development.
As one of the prominent pharmaceutical stocks, Novartis saw revenue reach nearly $56.7 billion in FY 2025. This represented a revenue growth rate of nearly 10% compared to the previous year. The company reported net income of nearly $14 billion.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This ratio compares total debt to shareholder equity, helping investors understand how much a company relies on borrowed money. The company generated free cash flow of nearly $17.7 billion, the cash remaining after paying for operating costs and capital expenditures. The current ratio is about 1.1x, indicating the ability to cover short-term obligations with assets such as cash and inventory.
The case for Teva Pharmaceutical Teva Pharmaceutical Industries is a global leader in both generic and innovative medicines, operating across 57 different markets. The company maintains a concentrated customer base, relying on a small group of large wholesalers and retail chains for a significant portion of its sales. Customer concentration like this adds a layer of risk to the business, as these buyers possess substantial bargaining power.
In FY 2025, revenue reached nearly $17.3 billion, reflecting a revenue growth rate of approximately 4.9%. After several years of reporting net losses, the company achieved a net income of $1.4 billion for the year.
Based on its December 2025 balance sheet, the debt-to-equity ratio is roughly 2.2x. This indicates a higher level of debt relative to shareholders’ equity than many industry peers. The current ratio is about 2x. Free cash flow for the year was approximately $1.2 billion, providing the company with some liquidity to fund its ongoing operations and debt obligations.
Risk profile comparisonNovartis AG faces the constant challenge of patent expirations, which allow cheaper versions of its drugs to enter the market. The company must also navigate the inherent uncertainty of clinical trials, in which failing to demonstrate a drug's safety or efficacy can lead to significant financial losses. Additionally, competition from other large innovators like Roche Holding creates pressure to maintain a high pace of research and development.
Teva faces material pricing pressures from the U.S. Inflation Reduction Act, which could impact the pricing of its key innovative assets. The company also remains involved in ongoing legal and compliance matters, including antitrust actions and financial obligations arising from past opioid litigation. Furthermore, executing its strategy to divest its active pharmaceutical ingredient business while competing with rivals such as Viatris (VTRS 0.81%) creates significant operational complexity.
Valuation comparisonTeva Pharmaceutical Industries appears more attractive for value seekers due to its lower P/S ratio, while the higher Forward P/E of Novartis AG reflects its superior profitability.
MetricNovartis AGTeva Pharmaceutical IndustriesSector BenchmarkForward P/E17.6x17.0x389.1xP/S ratio5.3x2.9xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Teva reported first-quarter 2026 results that bested expectations, with revenue of almost $4 billion and net income of $369 million. Teva has some very well-selling generics, including Ajovy, a treatment for migraines; Uzedy, a schizophrenia treatment; and Austedo, which treats Huntington’s disease. As a group, they grew more than 40% in local currencies in the first quarter of 2026. Still, Wall Street sees Teva’s sales declining to $16.6 billion in 2026, while net income is projected to grow to $1.54 billion. Teva has a strong drug pipeline — it has had its own generic GLP-1 approved, similar to Novo’s Saxenda, and soon that will be joined by olanzapine, which treats schizophrenia. Those and other drugs are expected to get Teva back to top-line growth for 2027.
Novartis saw its first-quarter volume rise 14% to $13.5 billion with net income of almost $3.2 billion. Generics are clipping growth a little, but Novartis has a strong development pipeline, led by remibrutinib, a treatment for certain autoimmune disorders that could launch in late 2026 or early 2027. Remibrutinib is expected to be a blockbuster, with lifetime sales of perhaps $4 billion.
Each business is on the right track, but Teva is more attractive for long-term investors given its better price-to-sales and forward P/E ratios.
NEW YORK--(BUSINESS WIRE)--American Express today hosted a groundbreaking ceremony for its new global headquarters at 2 World Trade Center in Lower Manhattan. To celebrate the milestone, American Express executives and colleagues were joined by Lisa Silverstein, CEO of Silverstein Properties; Zohran Kwame Mamdani, Mayor of New York City; Kathryn Garcia and Kevin O'Toole, Executive Director and Chairman of the Port Authority of New York and New Jersey; and Gary LaBarbera, President, Building and.
Jim Cramer stared down a stock yielding 7% and sitting near its 52-week low, and still would not tell viewers to buy it. On the July 7 episode of CNBC’s Mad Money, a caller from Orland Park, Illinois pitched Pfizer as an income-and-value setup, and Cramer conceded the case looked tempting. He landed on a reluctant pass anyway, telling the caller, “It kills me to say that a stock that yields 7% that used to have a lot of growth is going to have growth again, but I can’t come up with where the growth is. I just can’t. I’m sorry.”
The Caller and the Setup After a friendly exchange about Cramer’s 2:47 AM wake-up habit and a shout-out to a staffer named Sean, the Orland Park caller framed the question plainly: “I’m looking at a pharmaceutical company. You’ve had the CEO on your show several times over the past few years. Pays a high dividend. Down near the 52-week low. What do you think about Pfizer, Jim?” It is the kind of pitch that usually gets a warmer response from a host who has hosted CEO Albert Bourla repeatedly.
Cramer’s Reasoning on Pfizer Pfizer (NYSE:PFE | PFE Price Prediction) drew a diagnosis rather than an endorsement. Cramer told the caller, “Okay, they do have earnings growth problems. They haven’t been able to make the Seagen acquisition work the way it should. The dividend is safe at 7%.” The Seagen deal, closed in December 2023 for roughly $43 billion, was supposed to seed Pfizer’s post-COVID oncology franchise. Padcev, one of the assets that came over, did grow 39% operationally in Q1 2026, but that has not been enough to offset a 59% drop in Comirnaty and a 63% operational decline in Paxlovid.
The headline numbers still show a company that beats and guides steadily. Pfizer posted Q1 2026 revenue of $14.45 billion against a $13.80 billion estimate, adjusted EPS of $0.75 (a fifth consecutive beat), and reaffirmed FY2026 revenue guidance of $59.5 billion to $62.5 billion and adjusted EPS of $2.80 to $3.00, per the company’s 8-K filing. Net income of $2.687 billion was down 9.44% year over year, and operating income fell 31.44%. That is the growth gap Cramer is pointing at.
The Core Tension: Safe Yield, No Growth Cramer’s stance boils down to a simple test that a safe payout alone does not clear. Pfizer’s quarterly dividend of $0.43 was raised from $0.42 beginning with the January 2026 payment, extending a long streak of modest increases. FY2025 dividends paid totaled $9.8 billion, and management has signaled no buybacks in 2026 despite a $3.3 billion remaining authorization. Cash is going to the payout and to deals like the ~$7.0 billion Metsera acquisition in obesity/GLP-1 and a $1.35 billion charge to in-license a PD-1 x VEGF bispecific from 3SBio. Those bets could re-seed the pipeline. They have not yet moved the earnings needle in a way that satisfies Cramer.
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What the Market Says The market seems to agree, at least for now. Pfizer closed at $24.05 on July 8, down 6.13% over the past month and roughly flat year to date. The 52-week range runs from $21.97 to $28.28, and the trailing yield sits at 7.25%. Analyst consensus target is $29.00, with 16 Hold ratings dominating the board. Forward P/E of 8x tells you the market is pricing in the patent cliff around Eliquis and Vyndaqel, IRA Medicare Part D redesign pressure, and Most-Favored-Nation drug pricing risk.
For readers weighing this against other high-yield names, our ongoing Paycheck Portfolio coverage tracks how income investors are handling yield traps versus durable payers in 2026.
The Bottom Line Cramer’s take is Cramer’s take. Income investors who care most about a covered 7% payout may reasonably read the same facts and reach a different conclusion, especially with the stock sitting closer to the low end of its 52-week range. Growth investors hunting a catalyst will hear Cramer clearly. This is reporting on his opinion, and readers should treat it as such. Do your own research before acting.
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For today's Big 3, Dan Deming turns to three stocks he sees fitting the theme of a broadening market as investors rotate out of AI and offer strength for other sectors. He explains why he sees opportunities in UnitedHealth (UNH), Coca-Cola (KO), and Johnson & Johnson (JNJ).
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Electronic Arts Inc. (NASDAQ: EA) today launched EA SPORTS™ College Football 27 worldwide on PlayStation®5, Xbox Series X|S and, for the first time ever, PC and mobile. Following the record-breaking return of the franchise, College Football 27 raises the bar once again, delivering the most authentic college football experience yet.College Football 27 is the definitive modern college football experience. Every major change happening in the sport — from NIL a.
SummarySentiment indicators in the energy sector are nearing a long-term buy signal but have not yet reached levels that triggered previous buying signals. Investors should wait for it before reentering.Recent put/call ratios for XLE, Chevron, and Exxon show investor pessimism is rising but not yet at contrarian bullish levels.The price of crude oil is bullish long-term because short positions by money managers remain elevated compared to historical norms.I maintain a constructive long-term outlook on energy, expecting a major uptrend once current market distortions subside. Torsten Asmus/iStock via Getty Images
Last December we recommended energy stocks long-term. The reason was detailed in this article (Both Crude Oil And Energy Stocks Are Headed Much Higher).
Then, on February 10, after the large, prewar rally in energy stocks, we reiterated our long-term view but warned against
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
HOUSTON--(BUSINESS WIRE)--The board of directors of Phillips 66 (NYSE: PSX) has declared a quarterly dividend of $1.27 per share on Phillips 66 common stock. The dividend is payable on Sept. 1, 2026, to shareholders of record as of the close of business on Aug. 18, 2026.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, TX, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Caterpillar (CAT) has become tied to the AI trade in recent months, with Jonathan Sakraida pointing out it has outperformed Nvidia (NVDA) and the overall tech sector in the last 12 months. He points to Caterpillar's ever-growing demand for AI data center construction as a reason key reason backing his bullish view on the stock.
Cruise stocks are staging a sharp rebound at midday Thursday. Norwegian Cruise Line Holdings (NYSE:NCLH | NCLH Price Prediction) is leading the group, up 8% to $20, while Carnival (NYSE:CCL) shares trade up 5% to $27 and Royal Caribbean Cruises (NYSE:RCL) shares are up 3% to $289.
The bounce follows a rough stretch for the group. NCLH stock had fallen 11% across five sessions, leaving the sector’s most-shorted name primed for a technical snapback. Carnival stock and Royal Caribbean stock also entered the session working off recent declines of 10% and 8%, respectively.
There isn’t one clean catalyst driving today’s move. It reads as an oversold bounce in beaten-down names, given a nudge by softer fuel prices and a couple of incremental analyst calls on NCLH.
Easing Oil and Analyst Nudges Spark the Bounce Fuel is one of the largest variable costs for cruise operators, and crude is cooperating. Per Yahoo Finance, WTI crude oil is down 2% over the past 24 hours to $72.05 a barrel, extending a broader retreat from the $99.76 peak on June 3. Lower fuel feeds directly into margin math for Norwegian, Carnival, and Royal Caribbean.
On the sell-side, Morgan Stanley raised its NCLH price target to $22 from $20 with an Equal Weight rating and said it expects Norwegian and Viking to post modest Q2 beats. BMO Capital Markets raised NCLH to Hold, a modest but notable shift after initiating the sector this week with Royal Caribbean as its top pick and a $370 target.
Norwegian Cruise Line also announced a management move earlier today, naming Lee D. Applbaum Chief Marketing Officer to strengthen premium branding. That’s incremental news, and not likely the main share-price driver.
The group is beaten down enough that trailing multiples look reasonable versus the broader market. Trailing P/E ratios stand at 16x for NCLH, 12x for Carnival, and 18x for Royal Caribbean. Royal Caribbean stock also carries a 1.77% dividend yield and screens with the strongest operating margin of the three.
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Bull and Bear Cases on Norwegian The bull case on NCLH stock rests on easing fuel costs, a reasonable multiple, today’s analyst target bumps, and a broader demand-recovery narrative. Insider action supports it too, with Norwegian Cruise Line Holdings CEO John Chidsey and board member Jonathan Z. Cohen making significant insider purchases on May 27.
The bear case is heavy, though. Norwegian carries $15.2 billion of total debt and net leverage of 5.3x. Moreover, the company’s management cut Norwegian’s full-year 2026 guidance to adjusted EPS of $1.45 to $1.79 with net yield down 3% to 5% in constant currency, citing Middle East disruption, higher fuel, and softer European summer demand.
Note that travel and leisure remain cyclical and volatile, particularly with University of Michigan Consumer Sentiment at 44.8 in May, well below the 80 neutral threshold. Today’s pop is largely technical, not a fundamental shift, so investors should consider keeping their position sizes modest given the volatility.
What to Watch The near-term test is whether NCLH stock stay near $20 into the close and whether Carnival and Royal Caribbean shares confirm the bounce with follow-through buying. Crude oil prices and any fresh commentary on European booking trends could set the tone into next week.
Carnival’s raised FY2026 outlook calling for adjusted EPS near $2.22 and adjusted EBITDA near $7.11 billion remains an operational anchor for the group. Investors can watch for whether Royal Caribbean’s July earnings update reinforces the sector’s demand story or exposes the softness that Norwegian Cruise Line Holdings flagged in May.
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KeyBanc Sees Limited Signs Of RecoveryKeyBanc analyst Jackson Ader downgraded Salesforce to Sector Weight from Overweight. The analyst said recent financial results and customer feedback do not point to a meaningful recovery.
Ader wrote that, aside from Salesforce’s valuation, there is little evidence to support the stock as an attractive buying opportunity, saying it is “difficult to find evidence” of meaningful future upside.
The analyst also said recent quarterly results have been disappointing. In addition, channel checks remain soft, while feedback from Agentforce customer events suggests the product still needs further development.
As a result, Ader said expectations for faster revenue growth, current remaining performance obligations (cRPO) and bookings appear difficult to support.
Salesforce Expands Defense BusinessThe downgrade came one day after Salesforce announced a new federal contract.
The company said the U.S. Air Force’s 441st Vehicle Support Chain Operations Squadron has adopted Salesforce Missionforce National Security to manage its $13.5 billion fleet of more than 84,000 vehicles.
Salesforce said the platform will modernize fleet management, streamline logistics and improve operational readiness, expanding the company’s presence in the defense sector.
The stock sits about 23% below its 200-day simple moving average and roughly 6% below its 50-day moving average. Although it is trading slightly above its 20-day moving average, that short-term strength has not changed the broader downtrend.
The relative strength index stands at 46.3, indicating neutral momentum. The reading suggests the stock is neither overbought nor oversold.
Traders are watching resistance near $187.50, while support is around $146.50, close to the stock’s 52-week low.
Salesforce Price ActionCRM Stock Price Activity: Salesforce shares were down 2.09% at $163.10 at the time of publication on Thursday, according to Benzinga Pro data.
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Jim Cramer used his July 9, 2026, CNBC Mad Dash segment to explain why Salesforce (NYSE:CRM | CRM Price Prediction) has been one of the most painful stocks to hold in enterprise software. The stock is down 36.79% year-to-date and 38.6% over the past year, and Cramer’s view is that cheap can still get cheaper when the growth engine stalls.
Why KeyBanc Turned Bearish on Salesforce Cramer built his segment around a call from KeyBanc analyst Jackson Ader, who downgraded Salesforce from Buy to Hold. KeyBanc downgraded the stock from “Overweight” to “Sector Weight,” citing soft customer feedback on Agentforce and a CIO survey that raised concerns about the company’s future business. Shares dipped 1.7% on the note.
As Cramer framed it: “This decline in software is being aided by Jackson going from difficult to find evidence of future upside… downgrading. He’s taking it from a Buy to a Hold.”
Agentforce Is Growing, But Investors Want More The tension is that Agentforce numbers still look large in absolute terms. Q1 FY27 Agentforce ARR reached $1.2 billion, up 205% year over year, with combined Agentforce and Data 360 ARR at nearly $3.4 billion and 3.8 billion Agentic Work Units delivered.
Agentforce ARR growth ran 330% in Q3 FY26, then 169% in Q4 FY26, then 205% in Q1 FY27. That is the “slowing adoption” Cramer described: “He sees slowing adoption in Agentforce, which is really… that was going to be the future.”
AI Budget Shifts Could Pressure Salesforce’s Business Model The second leg of the bear case is pricing. Cramer described a CIO conversation where budgets get redirected toward cheaper agent and analytics options: “The people who make the budget say, listen, let’s see if we can not spend as much money on a Salesforce, which they think is expensive, let’s see what we can come up with for Anthropic, say a dashboard versus a Tableau.”
The software sector is declining amid hardware weakness, with SanDisk and Micron cited as examples. Micron Technology (NASDAQ:MU) is down 8.07% over the past week even after posting Q3 FY2026 revenue of $41.46 billion, up 346% year over year. The AI infrastructure jitters are bleeding into the application layer, and Salesforce is the highest-profile casualty.
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Why Cramer Says Cheap Doesn’t Always Mean Buy Marc Benioff has responded by delivering capital returns. Salesforce funded a $25 billion accelerated share repurchase with 103 million shares delivered upfront, part of a $50 billion authorization, and management has anchored to an FY30 revenue target of $63 billion.
The trade-off is a balance sheet that now carries noncurrent debt of $39.3 billion, up from $10.4 billion, with total liabilities up 90.93% year over year. Jim Cramer’s read on the stock’s valuation was that there’s always a chance things can get worse before they get better: “The stock is cheap. But he’s just saying given the slower adoption it can get even cheaper.”
What to Watch Next Salesforce trades at a forward P/E near 12, well below the 200-day moving average of $211.54 and 52-week high of $271.70. Analysts’ consensus price target sits at $246.44 across 33 Buy and 6 Strong Buy ratings.
Bulls see a market leader trading at a historically inexpensive valuation, while bears argue slowing adoption and changing enterprise spending priorities justify lower multiples. The next Agentforce update could prove decisive, because if growth reaccelerates, today’s valuation may look compelling.
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Investors often flock to gold during economic uncertainty. Often, the best way to play the commodity is to buy a gold miner’s stock, but choosing between Agnico Eagle Mines (AEM +2.63%) and AngloGold Ashanti (AU +3.27%) requires looking past the shiny surface to the underlying operational data.
Agnico Eagle Mines focuses on low-risk jurisdictions and maintains a pristine balance sheet, whereas AngloGold Ashanti prioritizes global diversification and aggressive production growth across multiple continents. Both companies provide significant exposure to the gold market, yet they offer distinct risk and reward profiles for investors seeking to balance stability with growth potential in a changing economic landscape.
The case for Agnico Eagle MinesAgnico Eagle Mines is a prominent player among gold stocks, focusing on high-quality jurisdictions like Canada, Australia, Finland, and Mexico. It operates as a senior producer, focusing on low-risk regions to avoid the political and regulatory volatility often found in emerging markets. With over 18,000 employees and contractors, the company maintains a massive operational scale across its core mining and development projects.
In FY 2025, revenue reached $11.9 billion, representing growth of roughly 44% over the prior year. The company reported net income of approximately $4.5 billion for the period, more than double that of 2024.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, indicating the company has no total debt relative to its shareholder equity. Free cash flow for the year was close to $4.4 billion, representing cash from operations minus capital expenditures, providing significant capital for reinvestment or shareholder returns.
The case for AngloGold AshantiAngloGold Ashanti operates with a more geographically diverse footprint, spanning ten countries across four continents. Its extensive portfolio includes operational mines and exploration projects across South America, Africa, and Australia. This global reach, supported by more than 38,000 employees, provides exposure to diverse geological environments and mineral deposits worldwide.
For FY 2025, the company generated revenue of approximately $9.7 billion, a substantial increase of more than 70% compared to the previous year. Net income for the fiscal year reached about $2.6 billion, compared to about $1 billion in 2024.
Based on the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x, showing that total debt is about 30% of shareholder equity. Free cash flow reached nearly $2.9 billion after accounting for capital expenditures, supporting the company's ongoing development projects in Colombia and the United States.
Risk profile comparisonAgnico Eagle Mines faces risks associated with operating in highly regulated environments, which can lead to increased compliance costs and operational hurdles. Environmental regulations and potential permitting delays in Canada or Finland could affect production schedules or increase costs. The company also competes for high-quality assets against larger peers like Newmont Corp (NEM +1.81%).
AngloGold Ashanti is exposed to significant geopolitical risks due to its operations in developing economies and various international jurisdictions. Changes in local tax laws, labor strikes, or political instability in regions like the Democratic Republic of Congo or Ghana could disrupt cash flow or asset security. It competes globally for talent and resources with firms such as Barrick Mining Corp (B +2.87%).
Valuation comparisonWhile both companies trade at a discount to the broader market, AngloGold Ashanti is the more affordable option based on its Forward P/E and P/S ratio. The Forward P/E compares share price to future earnings estimates, while the P/S ratio measures price against revenue.
MetricAgnico Eagle MinesAngloGold AshantiSector BenchmarkForward P/E11.0x10x25.5xP/S ratio5.4x3.7xSector benchmark uses the SPDR XLB sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
One of the great aspects of gold mining stocks is that they add significant value to their bottom lines when the metal rallies, as evidenced by the net income jumps in 2025 for both Agnico and AngloGold.
AngloGold Ashanti believes its Arthur Field in Nevada is a ‘holy grail’ for a miner: a Tier 1 discovery in a low-risk jurisdiction with long life and strong growth potential. The company has already found more than 4 million ounces at the mine and expects to find many more. But it takes time for a mine to produce. Right now, the strong price of gold will continue to benefit AngloGold’s existing operations, with Wall Street expecting $13 billion in revenue and $4.8 billion in net income in 2026.
Agnico Eagle Mines is also seen as benefiting from a strong gold price in 2026. Analysts expect $16.4 billion in sales and nearely $6.9 billion in net income. Similar to AngloGold, management sees a long-term path to boosting gold proictiuon 30%, thanks to additional mines it is developing in Canada.
So, how to choose between them: one way is to see which has the lower cost of production, which means profitability is more sustainable if gold’s price retreats. In that case, Agnico Eagle is the winner, with an all-in cost per ounce of around $1,090, while AngloGold is more than $1,600. While AEM is pricier on its P/S and forward P/E, that’s an advantage worth paying up for.
Partners With IMSA Labs On Cloud Innovation StudioOracle disclosed its partnership with the International Motor Sports Association (IMSA) as the founding partner of IMSA Labs, launching the Oracle Cloud Innovation Studio.
This initiative aims to assist startups in developing solutions using Oracle Cloud Infrastructure, leveraging real-time data from live race operations.
The solutions developed through Oracle Cloud Innovation Studio target challenges such as high-volume data processing, real-time decision-making, edge computing and distributed systems.
ORCL Technical Outlook: Momentum Weak Below Key AveragesThe stock’s current price of $141.30 is significantly below its moving averages, with the 20-day simple moving average (SMA) at $163.34, indicating a 9.7% gap. The moving average convergence divergence (MACD) is currently below its signal line, suggesting that momentum is fading, which could signal a potential reversal unless the stock can reclaim that baseline.
Oracle Earnings Preview and Analyst Price TargetsOracle is slated to provide its next financial update on Sept. 8 (estimated).
EPS Estimate: $1.67 (Up from $1.47) Revenue Estimate: $19.12 billion (Up from $14.93 billion) Valuation: P/E of 24.1x (Indicates fair valuation) Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $268.79. Recent analyst moves include:
Bernstein: Outperform (Raises target to $325 on June 11) RBC Capital: Sector Perform (Maintains target to $190 on June 11) TD Cowen: Buy (Maintains target to $300 on June 11) How Oracle Ranks On Value, Growth and MomentumBelow is the Benzinga Edge scorecard for Oracle, highlighting its strengths and weaknesses compared to the broader market:
Value: 20.51 — Trading at a steep premium relative to peers. Growth: 81.73 — Strong growth potential indicated. Momentum: 7.54 — Stock is underperforming the broader market. The Verdict: Oracle’s Benzinga Edge signal reveals a growth-heavy profile, but with weak momentum indicators suggesting potential challenges ahead. Investors may want to consider these factors as they evaluate Oracle’s future performance.
Top ETFs Holding Oracle Stock (ORCL)Significance: Because Oracle carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
ORCL Stock Trades Higher As Markets RiseORCL Stock Price Activity: Oracle shares were up 3.46% at $145.38 at the time of publication on Thursday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Block (XYZ - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Block basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Block, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for BlockThis mobile payments services provider is expected to earn $3.90 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Block. Over the past three months, the Zacks Consensus Estimate for the company has increased 14%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Block to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of U.S. Bancorp (USB) and BNY (BNY). But which of these two stocks offers value investors a better bang for their buck right now?
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? United Parcel Service (UPS - Free Report) , which belongs to the Zacks Transportation - Air Freight and Cargo industry, could be a great candidate to consider.
This package delivery service has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.05%.
For the last reported quarter, UPS came out with earnings of $1.07 per share versus the Zacks Consensus Estimate of $1.04 per share, representing a surprise of 2.88%. For the previous quarter, the company was expected to post earnings of $2.22 per share and it actually produced earnings of $2.38 per share, delivering a surprise of 7.21%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for UPS lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
UPS currently has an Earnings ESP of +0.22%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Key Takeaways Globe Life posted 12% operating EPS growth, supported by premium growth and disciplined underwriting. Sales momentum accelerated with health sales up 58% and life sales rising across all distribution channels. GL returned $225 million to shareholders and expects excess cash flow of $650-$700 million in 2026. Shares of Globe Life Inc. (GL - Free Report) have gained 48.7% over the past year, outperforming the industry, sector and the Zacks S&P 500 composite over the same period. The stock closed at $177.07 on Wednesday, just 2.7% below its 52-week high of $182.32, reflecting investor confidence.
Strong earnings growth, premium expansion, higher investment income and aggressive share repurchases have driven the rally. Improving investor sentiment following the easing of short-seller allegations has further supported the stock.
Image Source: Zacks Investment Research
GL has outperformed its peers, Aflac Incorporated (AFL - Free Report) and Unum Group (UNM - Free Report) , whose shares have risen 19.2% and 10.7%, respectively, in the past year, while AMERISAFE, Inc. (AMSF - Free Report) has lost 18.7%.
GL’s ValuationDespite the rally, Globe Life shares are trading at a discount compared to the industry. Its forward price-to-earnings multiple of 10.96X is lower than the industry average of 13.66X, the Finance sector’s 16.51X and the Zacks S&P 500 Composite’s 21.14X. Also, it has a Value Score of A.
Image Source: Zacks Investment Research
Shares of other insurers, such as Unum Group, are also trading at a discount, while Aflac and Amerisafe are trading at a higher multiple than the industry average.
GL’s Growth Projection EncouragesThe Zacks Consensus Estimate for Globe Life’s 2026 earnings per share (EPS) indicates a year-over-year increase of 7.7%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 6.4% and 6.7%, respectively, from the corresponding 2026 estimates.
The company’s earnings have improved 16.1% in the past five years, better than the industry average of 0.6%.
Optimistic Analyst Sentiment on GLThe company has witnessed four upward earnings estimate revisions for 2026 over the past 60 days, against no movement in the opposite direction. For 2027, it has witnessed three upward revisions and no downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings moved 1.4% and 0.1% north, respectively, over the last 60 days.
GL’s Return on Invested CapitalThe return on invested capital in the trailing 12 months was 12.5%, better than the industry average of 6.6%. This reflects the company’s efficiency in utilizing funds to generate income.
Key Points to Note for Globe LifeGlobe Life continues to deliver strong earnings growth, supported by disciplined underwriting, healthy premium growth and prudent capital management. In the first quarter of 2026, operating EPS increased 12% year over year, marking the seventh quarter of double-digit operating EPS growth in the past eight quarters. The company also benefited from higher premiums across its Life Insurance and Health Insurance segments, providing a solid foundation for sustained earnings expansion. In the first quarter, total premiums grew 6% year over year to $1.3 billion.
Moreover, net investment income continues to be another important driver of the company’s top-line growth and has been improving over the last few years, benefiting from higher portfolio yields and disciplined investment management. The company expects investment income to continue growing in 2026, supported by elevated reinvestment yields and its conservative, high-quality investment portfolio.
Improved agent productivity, expanding distribution and growth at the American Income, Liberty National, United American and Family Heritage divisions are expected to support continued sales growth in 2026. These efforts have fueled strong sales momentum, with health sales surging 58% in the first quarter of 2026 and life sales increasing 6% across all distribution channels.
Artificial intelligence (AI) is emerging as an important long-term growth driver for Globe Life. The company expects AI to improve underwriting, claims processing, customer service, agent productivity, lower administrative expenses and drive long-term margin expansion, strengthening Globe Life's competitive position.
The company has maintained a strong liquidity position with sufficient cash-generation capabilities. For 2026, GL anticipates excess cash flow to increase to approximately $650-$700 million. Globe Life has targeted a consolidated Company Action Level RBC ratio of 300-320% for 2026.
A strong capital position enables Globe Life to enhance its shareholder value via share buybacks and dividend payouts. The company returned approximately $225 million to shareholders during the first quarter of 2026. The insurer has continuously increased its dividend over the past five years, witnessing a CAGR of 8.9%.
ConclusionGlobe Life’s higher life and health sales, improved investment income, premium growth, AI initiatives, strong liquidity position and effective capital deployment position the company well for long-term growth.
Coupled with the impressive dividend history, cheaper valuation, solid growth projections, and higher returns, as well as the optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First Solar Promised Investors a "Long Term Favorable" Tariff Environment and Strengthened Market Position, Then Delivered a 13.61% Single-Day Stock Collapse and Slashed 2026 Guidance
, /PRNewswire/ -- SueWallSt reminds investors of a pending class action, highlighting the alleged contrast between First Solar, Inc.'s (NASDAQ: FSLR) repeated promises to investors and the results that ultimately emerged. Shareholders who purchased FSLR securities between February 26, 2025 and February 24, 2026 and lost money may be entitled to recover damages. Find out if you might qualify to recover your investment losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
First Solar shares dropped $33.09 per share, or 13.61%, on February 25, 2026, after the Company disclosed fourth quarter and full year 2025 results that missed expectations and issued lower-than-expected fiscal year 2026 revenue guidance. This followed an earlier $27.67 per share decline on January 7, 2026. The lead plaintiff deadline is August 24, 2026.
The Promise
Throughout the Class Period, the Company projected confidence at every turn. On its Q1 2025 earnings call, management told investors that "the political and trade environment continues to be an overall long term favorable from a First Solar perspective." On its Q2 earnings call, the Company asserted that recent policy and trade developments had "strengthened First Solar's relative position in the solar manufacturing industry." In November 2025, a press release declared the Company was ready to "meet the moment" with a new South Carolina production facility. The day before the corrective disclosure, management released an economic impact study claiming First Solar could "deliver long-term economic value" for the American economy.
The Reality
The lawsuit contends these statements concealed a deteriorating operational picture. International production facilities in Malaysia and Vietnam faced mounting underutilization costs that would carry into 2026. A major customer, affiliates of British Petroleum, defaulted on 6.6 gigawatts of bookings. The new South Carolina facility required approximately $330 million in total program spend, including $260 million in capital expenditures and $70 million in non-capitalized relocation expenses, while production was not expected to begin until late 2026. When the Company finally reported results and guidance, the gap between its promises and its performance was stark.
The Numbers: Promised vs. Actual
Tariff management: The Company promised contracts with "some form of tariff protection" for international deliveries; in reality, tariffs of 25% on Malaysia and 20% on Vietnam made importing finished goods uneconomical and forced production curtailments Market position: Management repeatedly characterized the environment as "long term favorable" and claimed its position had "strengthened"; instead, the Company lowered guidance multiple times, faced significant de-bookings, and experienced margin compression International facilities: Described as temporarily idled to preserve "optionality"; the action alleges underutilization persisted and was expected to continue negatively impacting 2026 performance Customer demand: The Company entered 2025 claiming to be "oversold through 2026" for U.S. production; BP affiliates then defaulted on 6.6 gigawatts of contracted volume at $0.294 per watt Onshoring solution: The South Carolina facility was presented as a margin-improving pivot; instead, it introduced $330 million in costs with no revenue contribution until late 2026 at the earliest What the Lawsuit Alleges About the Gap
The complaint charges that the Company overstated its capacity to manage U.S. tariff policy impacts and understated how significantly the underutilization of Malaysian and Vietnamese facilities, combined with the costly onshoring effort, would weigh on projected 2026 performance. When the true picture emerged through analyst downgrades and the Company's own disappointing results, shareholders absorbed combined per-share losses exceeding $60.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between First Solar's repeated reassurances about its tariff resilience and strengthened market position and the actual outcome raises serious questions about the accuracy of those representations." -- Joseph E. Levi, Esq.
Get more information on this case or contact Joseph E. Levi, Esq. at (888) SueWallSt.
LEAD PLAINTIFF DEADLINE: August 24, 2026
WHY SUEWALLST: SueWallSt is a brand of Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the FSLR Lawsuit
Q: What specific misstatements does the FSLR lawsuit allege? A: The complaint alleges First Solar made materially false or misleading statements regarding its ability to manage tariff impacts, the consequences of underutilizing international production facilities, and the challenges of onshoring operations to a new U.S. facility. When the true state of affairs was revealed, the stock price declined sharply.
Q: How much did FSLR stock drop? A: Shares fell approximately 13.61%, a decline of $33.09 per share, on February 25, 2026 after the Company disclosed disappointing results and weak 2026 guidance. An earlier decline of $27.67 per share (10.29%) occurred on January 7, 2026 following a Jefferies downgrade. Investors who purchased shares during the Class Period at artificially inflated prices may be entitled to compensation.
Q: What do FSLR investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What if I already sold my FSLR shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
Key Takeaways Molson Coors is advancing Horizon 2030 by expanding premium beer and beyond-beer categories.TAP is benefiting from premium brands, pricing actions and a $450 million cost-savings program.TAP is investing in innovation, marketing and acquisitions to support long-term profitable growth. Molson Coors Beverage Company (TAP - Free Report) is one of the leading brewers, having a strong portfolio of well-established brands. The company is focused on strengthening its core beer business while expanding into faster-growing beverage categories under its Horizon 2030 strategy. It is focused on premiumization and innovation to strengthen its core beer portfolio.
The company is benefiting from stronger performance in premium brands and using targeted pricing and improved mix to aid revenue growth despite volume pressures. Management highlighted solid momentum in above-premium offerings such as Peroni, Blue Moon and Coors Banquet, while value brands like Miller High Life and Keystone are being supported through targeted innovation and localized execution.
Molson Coors’ Horizon 2030 strategy to drive sustainable top-line growth bodes well. The plan focuses on strengthening its core brands, expanding in above-premium beer and accelerating its presence in faster-growing beyond beer categories. The company continues to invest in commercial capabilities, technology and marketing, while leveraging acquisitions such as Fever-Tree and Monaco Cocktails to broaden its portfolio and enhance growth.
TAP’s cost savings to support long-term value creation appear encouraging. The company is executing a three-year $450 million cost savings program, including restructuring and supply-chain optimization initiatives, to offset inflation and fund strategic investments. Such actions, combined with Molson Coors’ disciplined capital allocation, position it to improve profitability and create long-term shareholder value.
Overall, Molson Coors is positioned to improve long-term growth through its Horizon 2030 strategy, continued premiumization, portfolio diversification beyond beer and disciplined cost-management initiatives. While sluggishness in the Americas business and macroeconomic pressures with a soft beer industry remain near-term challenges, the company's focus on operational efficiency, innovation and higher-margin brands should support sustainable growth.
TAP’s Price Performance, Valuation and EstimatesShares of Molson Coors have lost 13.9% in the past three months compared with the industry’s drop of 1.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, TAP trades at a forward price-to-earnings ratio of 7.91X compared with the industry’s average of 14.99X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2026 earnings per share (EPS) shows a decline of 11.4% while that of 2027 indicates year-over-year growth of 4.2%. The company’s EPS estimates for 2026 and 2027 have been stable in the past 30 days.
Image Source: Zacks Investment Research
Molson Coors stock currently carries a Zacks Rank #3 (Hold).
Stocks to Consider in the Consumer Staples Space United Natural Foods (UNFI - Free Report) , which is a major distributor of natural, organic and specialty food and non-food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United Natural Foods’ current financial-year sales indicates a drop of 2.1% from the prior-year level. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Nomad Foods Limited (NOMD - Free Report) , which manufactures and distributes frozen foods, currently carries a Zacks Rank #2 (Buy).
The consensus estimate for Nomad Foods’ current financial-year sales is expected to rise 0.5% from the year-ago reported figure. NOMD delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Medifast, Inc. (MED - Free Report) , which is a leading manufacturer and distributor of clinically-proven healthy living products and programs, currently carries a Zacks Rank of 2. MED delivered an average earnings surprise of 65.5% in the last reported quarter.
The Zacks Consensus Estimate for Medifast’s current financial-year sales indicates a decline of 26% from the year-ago number.
Choosing between stable dividends and turnaround potential often defines a portfolio strategy. For 2026, comparing snack powerhouse PepsiCo (PEP 3.75%) and brewer Molson Coors Beverage (TAP +0.57%) reveals two very different paths for investors.
PepsiCo dominates through its convenient foods and non-alcoholic drinks, leveraging a massive global distribution network. Molson Coors Beverage focuses on the beer market but is aggressively expanding into ready-to-drink cocktails and premium offerings. While both operate in the defensive consumer space, their recent financial trajectories suggest distinct risks and rewards.
The company sells iconic brands like Lay’s, Doritos, and Gatorade across 200 countries. It relies heavily on retail giant Walmart (WMT 1.22%) for approximately 14% of its net revenue. Customer concentration like this adds a layer of risk to the business. As of June 2026, the company no longer has subsidiary ownership of Pizza Hut after Yum! Brands (YUM 1.70%) sold that division. PepsiCo now focuses more on its direct delivery relationships, e-commerce, and the development of snacks that align with changing health trends.
In FY 2025, revenue reached approximately $93.9 billion, representing nearly 2.3% year-over-year growth. Net income for the period was approximately $8.2 billion, lower than the $9.6 billion reported in the previous year. The company carries a debt-to-equity ratio of approximately 2.5x. Free cash flow for the year was close to $7.7 billion, representing the cash generated after capital investments.
The case for Molson Coors BeverageMolson Coors produces a wide variety of beers and beverages, including Coors Light and Miller Lite. The company is actively diversifying its portfolio into the beverage stock category through acquisitions such as Atomic Brands. It operates through a three-tier distribution system in the United States and has no single customer representing more than 10% of sales. This diversification helps the company reach a broader consumer base as traditional beer volumes face pressure.
During FY 2025, revenue was nearly $11.1 billion, representing a decline of roughly 4% from the prior fiscal year. The company reported a net loss of approximately $2.1 billion for the period. This loss follows a profitable fiscal year 2024 where the company earned more than $1.1 billion, illustrating the volatility of its current transition. These figures highlight the challenges of shifting a legacy business model toward more premium offerings.
As of its December 2025 balance sheet, the debt-to-equity ratio was close to 0.6x. This indicates a lower reliance on borrowed money compared to shareholder equity. Molson Coors Beverage produced nearly $1.1 billion in free cash flow during FY 2025. This cash generation is essential, as it fuels the company’s expansion into non-beer categories such as energy drinks and cocktails.
Risk profile comparisonPepsiCo faces significant risks from shifting consumer behaviors, including the rise of GLP-1 medications and increased price sensitivity. Its scale makes it a target for legal scrutiny, such as recent lawsuits regarding data privacy and product labeling. Furthermore, the business is vulnerable to commodity price fluctuations and geopolitical conflicts that can disrupt global supply chains. If the company fails to use its data analytics effectively to innovate, it could lose volume to lower-priced private-label alternatives.
Molson Coors Beverage must successfully integrate new acquisitions and premiumize its portfolio to offset declining beer consumption. It faces intense competition from Anheuser-Busch InBev (BUD +0.03%) and Constellation Brands (STZ +0.83%) in both traditional and emerging beverage categories. Operational risks such as labor strikes and the ongoing implementation of a global digital infrastructure could disrupt production. Additionally, increasing global scrutiny and mandatory health warning labels on alcohol products pose a long-term threat to demand in key markets.
Valuation comparisonMolson Coors Beverage appears to be the more value-oriented choice for investors as it trades at a significantly lower Forward P/E and P/S ratio than PepsiCo. The Forward P/E compares the stock price to expected earnings over the next year, while the P/S ratio compares the stock price to revenue.
MetricPepsiCoMolson Coors BeverageSector BenchmarkForward P/E16.6x8.1x287.6xP/S ratio2.1x0.7xn/aSector benchmark uses the SPDR XLP sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?Molson Coors’ primary beer brands, Coors Light and Miller Lite, benefited from the consumer backlash against Bud Light, but that is one of the few bright spots for a company that is struggling to grow beer sales as consumers drink less and increasingly opt for craft beer when they do drink. Wall Street sees 2026 as the third straight year of declining sales, with revenue expected to be a few million dollars lower than in 2025. The move into beverages besides beer is promising, but the business remains less than 10% of Molson Coors’ sales.
PepsiCo is best known for its beverages, including Pepsi, but it is primarily a food company. About 60% of PepsiCo’s revenue comes from snack brands like Lay’s and Tostitos. The rise of GLP-1s is moving consumers toward savory snacks and away from sweets, and PepsiCo is adjusting its product mix and packaging to accommodate this shift. Management says trends indicate savory snacks will outgrow food, benefiting its snack business. Pepsi seems to be more affected by rising U.S. consumer caution about spending, given its snack-food exposure, too.
Both companies are appreciated by investors for their reliable dividend payments. Molson Coors has the higher forward dividend yield at today’s price, at 4.95%, versus PepsiCo’s 4.15%.
Despite Molson Coors’ better dividend and cheaper ratios, investors should want to see a sales turnaround before investing. PepsiCo may be growing slowly, but it is still growing and is the stock to buy.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Palantir (NASDAQ:PLTR), and Advanced Micro Devices (NASDAQ:AMD) are the three names that defined this AI cycle. AMD is up 141.6% YTD. NVIDIA is up 9.58%. Palantir has actually fallen 25.61%.
The setup is unusual, and I think it creates asymmetric upside into 2028. Below is the math for how NVDA hits $300, PLTR hits $250, and AMD hits $800.
NVIDIA: The Path to $300 by 2028 NVIDIA’s Q1 FY27 was a monster. Revenue of $81.6 billion grew 85.2% YoY, Data Center hit $75.25 billion, and networking exploded 199% YoY. Jensen Huang framed it plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Reaching $300 from today’s $204.12 requires a gain of 47%. On forward EPS of $8, $300 implies a forward P/E of 38x. Shares currently trade near a forward multiple of 26. Our base case at $251.05 already implies roughly 35x.
The bold target simply asks for modest additional multiple expansion on top of continued earnings growth. With 95% bullish analyst sentiment and an $80 billion buyback authorization backing it, I think $300 by 2028 is realistic if Blackwell Ultra and Vera Rubin ramp on schedule. China export policy is the primary risk.
Palantir: The Path to $250 by 2028 Palantir is the contrarian pick here. Shares are down big YTD, yet Q1 2026 produced the highest growth rate in company history: 84.7% revenue growth, U.S. commercial up 133%, and a Rule of 40 score of 145%. Alex Karp did not mince words: “We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix.”
Reaching $250 from $132.22 requires a gain of 89.1%. On forward EPS of $1.40, $250 implies a forward P/E of 179x. That is expensive. The current forward multiple sits near 94x.
Our bull case projects $235.78 by July 2028, so $250 is a stretch, but not absurd. The pathway: sustain triple-digit U.S. commercial growth, expand the 46% GAAP operating margin, and convert the $2.41 billion Q1 TCV into recurring AIP revenue. Multiple compression is the obvious risk.
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AMD: The Path to $800 by 2028 AMD is the momentum name. Data Center revenue of $5.78 billion grew 57% YoY in Q1 2026, and Lisa Su said “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.” Meta’s 6GW deployment and the 1GW MI450-based first tranche anchor the thesis.
Reaching $800 from $517.41 requires a gain of 54.6%. On forward EPS of $6.87, $800 implies a forward P/E of 116x. The current forward multiple is roughly 75x. That gap is where the risk lives.
Our 5-year bull case is $861.30, so $800 by 2028 requires forward EPS to accelerate faster than the model’s 91.2% YoY earnings growth pace. If MI450 ships at scale and gross margins push toward 56%, the math works. China export controls remain the swing factor.
The Bottom Line on This Trio My verdict: NVDA at $300 is the most defensible target, PLTR at $250 is the highest-conviction contrarian call, and AMD at $800 is the most speculative.
All three depend on AI infrastructure spending sustaining through 2028, forward P/E compression via EPS growth rather than multiple collapse, and no policy shock from Washington or Beijing.
A demand air pocket in hyperscaler capex would derail the entire thesis at once. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how NVIDIA, Palantir, and AMD could reach $300, $250, and $800 respectively in 2028.
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Wayfair (W - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Wayfair currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for W that show why this online home goods retailer shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For W, shares are up 0.03% over the past week while the Zacks Internet - Commerce industry is up 1.4% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 26.31% compares favorably with the industry's 1.74% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Wayfair have increased 12.77% over the past quarter, and have gained 53.33% in the last year. In comparison, the S&P 500 has only moved 10.61% and 21.48%, respectively.
Investors should also take note of W's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now W is averaging 3,247,260 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with W.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost W's consensus estimate, increasing from $2.77 to $2.91 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been 1 downward revision in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that W is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Wayfair on your short list.
Micron Technology (MU +6.90%) is one of the hottest stocks in the market right now. Massive demand for its memory chips has driven prices higher over the last year, leading to record-breaking earnings for the company. Still, the stock trades for just 13.6 times analysts' earnings expectations for the next 12 months. For comparison, the S&P 500 trades for close to 22 times forecast earnings.
Many investors have pointed out how cheap Micron appears to be at its current price. In fact, Micron's the largest position in the Vanguard Value ETF, suggesting the stock is undervalued right now. But the truth is Micron's not as cheap as it looks. Here's why.
Image source: The Motley Fool.
Looking beyond the current price-to-earnings ratio It's true that Micron trades for low price relative to its earnings expectations over the next 12 months. And analysts expect Micron's earnings to grow even more over the next two years, projecting Micron will generate over $160 in earnings per share by fiscal 2028, making its price around $1,000 per share look like an incredible bargain.
But the semiconductor industry is cyclical, and few segments are more so than memory chipmakers. That's because memory chips are commodity-like; device makers and chip packagers can, for the most part, swap out a Micron chip with any of its competitors'. That means if one of Micron's competitors increases the capacity of its chip production facilities, it will negatively impact Micron's ability to charge a premium price.
That's exactly what's playing out. Not only is Micron building out new chip manufacturing capacity, but its competitors are as well. As the pendulum of supply and demand swings the other way, Micron will see unit volume increase while pricing declines. At some point, unit volume growth won't be enough to offset price declines, and, combined with the added costs of running new facilities, profits will decline. That's the nature of cyclical stocks.
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So, as Micron approaches the peak of an earnings cycle, its P/E ratio will decline. Investors shouldn't be willing to pay as much for Micron's earnings at the peak of the cycle if the expectation is for earnings to decline for the next few years. And because of the commodity-like nature of Micron's products, the decline can be severe, especially if Micron doesn't build as much capacity as its competitors. That puts it in a prisoner's dilemma where it must spend the money to build new facilities.
Micron has historically traded at a P/E ratio in the mid single digits at its earnings peaks. At nearly 14 times earnings, the market suggests there are still a few more years of earnings growth for Micron in the current cycle; analysts are currently underestimating the peak of its earnings, or that the next down cycle won't be as bad as previous ones. All indications from Micron and its competitors suggest that the supply shortage will start to abate by 2028, which should have a noticeable negative impact on earnings in 2029 and 2030. Expectations for Micron are already sky-high, and the market is increasingly valuing it as if its earnings will never come down again. Don't confuse a highly cyclical stock with a value.
HomeIndustriesComputers/ElectronicsTech StocksTech StocksThe memory-chip giant is reversing its recent slide after increasing its investment in the U.S. semiconductor supply chainJuly 9, 2026, 12:13 p.m. ET
After a steep post-earnings slide, shares of Micron popped 7% on Thursday morning as the company announced a $3 billion plan to invest in its U.S. semiconductor supply chain.
As part of the plan, Micron MU pledged $500 million in strategic financing to GlobalWafers TW:6488 to help the semiconductor company build out its advanced 300mm raw silicon wafer facility in Sherman, Texas. Micron and GlobalWafers also entered into a 10-year supply agreement, giving Micron guaranteed long-term access to advanced wafer capacity needed to produce high-bandwidth memory and DRAM. Both of these memory components have become increasingly critical to powering artificial-intelligence workloads, causing demand for them to far exceed supply.
One trillion dollars. That is the scale of institutional capital that spot crypto ETFs, tokenized securities, and corporate treasuries are gradually pulling toward Bitcoin and its adjacent markets.
This number also represents the kind of move that would reset Bitcoin from a speculative allocation to a portfolio staple. Now trading around $61,500 per token, Bitcoin has been cut roughly in half from its recent peak, so there’s plenty of uncertainty in the market for investors in this mega-cap digital asset right now.
What It Means Bulls will certainly argue that Bitcoin is oversold and the plumbing beneath it is expanding at the same time. The token’s weekly RSI reads 35.1787, near the lowest levels of 2026 and a long way from the 72.7571 reading on July 11, 2025. Underneath this price action, the U.S. money supply keeps building. M2 sits at $23.05T as of May 1, 2026, up 1.1% in a single month and sitting in the 90.9th percentile of its 12-month range.
Inflation is not cooperating with the Fed either. CPI printed 333.979 in May 2026, up 0.5% month over month and holding in the 90th percentile of its 12-month distribution. The fed funds target has been parked at 3.75% since December 11, 2025, following a 50 basis point cut. Liquidity is rising, real rates are compressing, and the fear gauge is quiet. The VIX closed at 16.59 on July 1, 2026, below its 12-month average of 18.095.
Market Reaction Bitcoin has already priced in a lot of pain. The token fell 0.52% over the last day, 10.51% over the last month, and 31.83% year to date, going from $87,497.94 on December 31, 2025 to $59,649.88. Over five years the return is still 71.91%, and over ten years it is 8,629.05%.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
Bull Case The macro setup and the plumbing case both point the same direction. Start with the pipes. U.S. crypto ETF assets stood at $135 billion in the United States and $6 billion in Canada by the end of 2025, with the SEC approving in-kind creations and redemptions for spot crypto ETPs on July 29. State Street counts more than 45 spot crypto-focused ETFs representing over $130 billion in assets under management, with more product structures expected in 2026.
Corporate treasuries are still leaning in. Hyperscale Data added 67 Bitcoin between June 30 and July 1, taking its total to 849 BTC. BlackRock-backed Securitize went public with a valuation of $1.25B after raising $400M, and its stock jumped 3% on NYSE debut. Ondo Finance rolled out the first U.S.-listed securities tokenized on public blockchain under SEC framework, backing IVV ETF and Micron (NASDAQ:MU | MU Price Prediction) shares 1:1. Analyst tone has followed. BTIG raised its Core Scientific (NASDAQ:CORZ) target to $38 from $33. Bernstein tagged CleanSpark (NASDAQ:CLSK) with a $24 target.
Now investors need to stack the macro environment on top. Money supply growth, as evidenced by M2, grew 1.1% month over month in June, with CPI printing at the 90th percentile of expectations. And, with the Federal Reserve having sat on rates for approximately 6 months, I think this is exactly the mix that has historically favored scarce, non-sovereign assets. Bitcoin has taken its pain. The next trillion in institutional and treasury flows would move a market that is already technically oversold.
Bottom Line The near-term signal to watch is the Fed. Rates have held at 3.75% since December 11, 2025, and the 10-year Treasury yield closed at 4.48% on July 1, 2026, in the 92.4th percentile of its 12-month range. Any easing from here lowers the opportunity cost of holding Bitcoin at the same moment ETF wrappers, tokenized funds, and corporate treasuries are widening the pipe. For long-term holders, the trillion-dollar question has shifted to how much of that next trillion arrives before the price finishes healing.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Micron Technology didn't make the cut. Grab the names FREE today.
MU stock is moving. See the real-time price action here. In the WallStreetBets subreddit, one poster summed up the rotation case bluntly: "Dumping all my MU for this – these guys are significantly more degenerate with their expansion plans which I like."
The pitch is that Micron is now the establishment memory trade, while SK Hynix is the high‑beta vehicle for AI datacenter build‑out actually hitting wafers.
‘Liquidity Go Brrrrrr’The SK Hynix U.S. listing is also turning into a liquidity story. One WSB comment frames the cross‑listing as a 24/7 tape:
"SK Hynix will be now 24 hours live trading. U.S., Korea and Europe all together. And Koreans won’t be able to panic sell as U.S. algorithm system will take over."
In that worldview, global arbitrage and passive flows become a feature, not a bug. Another user distills the entire bull case down to three words: "Liquidity go brrrrrrr."
The oversubscribed deal is being cited as proof that so‑called smart money is already crowding in, with retail eager to front‑run the first‑day imbalance.
ETFs: Basket Trades Around The Memory TradeTraders are also sketching out basket trades built around the ETFs that already hide a who’s‑who of the memory and Korea trade. In this setup, retail investors are viewing SK Hynix as a spark that could send the entire basket into a momentum relay race.
DRAM, the Roundhill Memory ETF (BATS:DRAM) is being pitched in WallStreetBets as the lazy way to lever the trade if the new U.S. ticker rips and drags the whole basket higher.
KMEM, the Kurv Memory Select (BATS:KMEM) Korea‑focused fund, is framed as a higher‑octane proxy on the "Korea discount" narrowing once SK Hynix trades alongside U.S. peers.
SK Hynix ADR price targets from the WallStreetBets community run from semi‑plausible to outright fantasy, but earnings models are an afterthought. The real trade, in this corner of Reddit, is riding first‑day chaos in SK Hynix — and anything even loosely wired into the memory stack.
Photo: Samuel Bolvin / Shutterstock
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Micron Technology (NASDAQ: MU | MU Price Prediction) and Intel (NASDAQ: INTC) both delivered earnings that reframed how investors think about AI silicon. Micron posted record fiscal Q3 results powered by memory pricing. Intel notched a sixth straight revenue beat while absorbing a heavy restructuring hit. One is harvesting the AI build-out today. The other is rebuilding fabs and product lines to compete for it.
HBM4 Lifts Micron. Foundry Reshapes Intel. Micron’s June 24, 2026 report showed revenue of $41.456 billion, beating consensus by 17.60% and climbing 345.72% year over year. Non-GAAP EPS of $25.11 cleared estimates by 23.79%. GAAP gross margin reached 84.6%, up from 37.7% a year earlier. Cloud Memory led the mix at $13.769 billion, propelled by HBM4 volume shipments to the lead AI accelerator customer. CEO Sanjay Mehrotra said results “reflect the strategic value of memory in the AI era.”
Intel’s Q1 FY26 revenue landed at $13.577 billion, a 9.22% beat with 7.18% YoY growth. Data Center and AI jumped 22%. Intel Foundry climbed 16%. Client Computing crawled at 1%. A $4.07 billion restructuring charge, largely a Mobileye goodwill impairment, produced a GAAP net loss of $3.728 billion. CEO Lip-Bu Tan framed the results as a “deliberate reset” that delivered a sixth consecutive revenue beat.
One Harvests. One Rebuilds. Lens Micron Intel Core Bet HBM4 for AI accelerators Intel 18A foundry and Xeon Free Cash Flow $18.304B -$3.867B Forward P/E 7 159 Key Vulnerability HBM customer concentration Foundry losses, 14A demand Micron’s edge is durability. Multi-year Strategic Customer Agreements lock in demand for high-margin HBM parts, buffering the classic memory cycle. Intel is placing bets on Panther Lake, its multiyear Google Xeon collaboration, and selection as host CPU for NVIDIA’s DGX Rubin NVL8 systems. Those wins take quarters to convert into GAAP profit.
What Matters Next Micron guided Q4 revenue to $50.0 billion with roughly 86% gross margin. Watch whether HBM4E, targeted for calendar 2027 volume, sustains pricing momentum. Intel’s tell is Q2, guided to $13.8 billion to $14.8 billion. Foundry needs external customer traction before 14A commitments harden. Mehrotra disposed of 31,434 shares at prices up to $979.37 in late May, a small dent in confidence.
Why Micron Leads for AI Exposure Now Micron is the cleaner AI expression today. A forward P/E near 7, $18.304 billion in quarterly free cash flow, and locked-in HBM demand are compelling if AI capex holds. Intel fits a patient investor waiting on 18A ramps, foundry breakeven, and a real GAAP turn. Its shares are up 226.15% YTD, pricing in hope at a forward multiple near 159. If memory pricing cracks, the thesis for both names shifts. For now, Micron is the chipmaker printing cash while Intel is still spending to catch up.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at TSMC (TSM - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. TSMC currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for TSM that show why this chip company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For TSM, shares are up 0.42% over the past week while the Zacks Semiconductor - Circuit Foundry industry is up 0.42% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.91% compares favorably with the industry's 6.91% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of TSMC have increased 16.5% over the past quarter, and have gained 88.48% in the last year. In comparison, the S&P 500 has only moved 10.61% and 21.48%, respectively.
Investors should also pay attention to TSM's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TSM is currently averaging 13,295,518 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TSM.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TSM's consensus estimate, increasing from $15.25 to $15.39 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that TSM is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep TSMC on your short list.
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AMD, Micron Spearhead Chip Sector Surge, Lead 23 Hot Prospects To Best Stock Lists
2026: A Space Stock Odyssey
Stock Market Mixed As Chips Rise While Small Caps, Dow, SpaceX Struggle; Ned Davis On Cash Taiwan Semiconductor Manufacturing (TSM), better known as TSMC, was sitting on the short elite list of Investor's Business Daily Sector Leaders earlier this week and currently is part of the IBD 50 list. TSM stock is trending sideways in tight weekly closes with the company's second-quarter earnings report due out soon. TSMC is the world's largest contract chipmaker and produces…
The Health Care Select Sector SPDR Fund (NYSEARCA:XLV) is the default healthcare allocation for millions of investors, and for good reason. XLV owns the entire S&P 500 healthcare complex in one ticker: insurers, device makers, biotech, and Big Pharma. It has returned 21.61% over the past year and 159.84% over ten years. If the reason for holding XLV is simply broad sector exposure, it does that job well. The reason to look past it is narrower: investors who bought XLV specifically to participate in the GLP-1 obesity boom are getting a heavily diluted version of that trade, and a small thematic fund, the LeaderShares Dr. Bill Grace Global Obesity ETF (NYSEARCA:OZEM) offers a more direct route.
Why XLV Waters Down the Obesity Trade The GLP-1 franchise is concentrated in two companies: Eli Lilly (NYSE:LLY | LLY Price Prediction) and Novo Nordisk. Lilly’s Q1 2026 results underline the scale. Revenue reached $19.8 billion, up 55.5% year over year, with Mounjaro at $8.66 billion (+125%) and Zepbound at $4.16 billion (+80%). Non-GAAP EPS came in at $8.55. CEO David Ricks said, “2026 is off to a strong start, we delivered 56% revenue growth… raised full-year revenue guidance by $2 billion.” The FDA has since approved Foundayo (orforglipron), the first oral GLP-1 pill with no food or water restrictions.
Lilly’s stock reflects this: shares are up 54.8% over the past year and 433.36% over five years, with a market cap of roughly $1.07 trillion. Yet within XLV, Lilly is the largest single position, accounting for roughly 16% of the fund. While that provides significant exposure, the remaining 84% of the fund is spread across insurers, device makers, and legacy pharma. For investors whose core thesis is specifically the metabolic-disease franchise, the heavy allocation to non-obesity segments can dampen the impact of Lilly’s specific trajectory.”
What OZEM Actually Owns If you’re looking at the obesity and GLP-1 supply chain, OZEM is the fund that comes up most often. According to its March 31, 2026, NPORT filing, Lilly is its largest holding at 16.10% of net assets, with Novo Nordisk right behind at 13.13%. Put those two together, and the two drugmakers that dominate the category represent 29.23% of the fund. For context, that is a materially higher single-theme weighting than either name individually delivers in XLV.
The remainder is a mix of GLP-1 developers and adjacencies: Viking Therapeutics at 5.29%, Zealand Pharma at 3.60%, Structure Therapeutics at 2.38%, plus Chinese biotech exposure through Innovent, Ascletis, and CSPC. Broader pharma names such as Pfizer (7.56%) and Amgen (3.94%) round out the book. The fund also carried a 12.89% cash position at the March filing, which can dampen performance during rapid market rallies, though it provides the manager with the liquidity needed to navigate the extreme volatility typical of small-cap biotech stocks.
The Tradeoffs Are Real The swap involves real tradeoffs. OZEM returned 32.8% over the past year, better than XLV’s 21.61%, but well behind Lilly’s 54.8%. Novo Nordisk shares fell 25.53% over the same period, and that weighting, combined with the cash drag and small-cap biotech volatility, explains the gap. Year-to-date, OZEM is actually down 1.18% while XLV is up 5.51%.
Other considerations: OZEM’s total net assets sit at just $51.4 million, which means wider bid-ask spreads and closure risk if inflows stall. Thematic ETFs also carry higher expense ratios than sector SPDRs, and Lilly itself faces pricing pressure, with realized prices down and Mounjaro added to China’s national reimbursement list. A prospectus review is warranted before committing capital.
How to Think About the Swap PineBridge’s 2026 equity outlook notes that “In 2026, we will see the expansion of obesity treatments to the broader population as lower-cost, easier-to-administer oral pill versions of the current injectable GLP-1s are introduced to the market.” That backdrop supports thematic exposure, but the vehicle matters.
For an investor whose XLV position is designed to capture the obesity story, three paths are available. Owning Lilly directly has delivered the cleanest exposure by a wide margin. A partial OZEM sleeve alongside XLV preserves diversification while raising the weighting to GLP-1 developers globally. Keeping XLV as-is remains defensible for anyone who wants the whole sector rather than one theme within it. In a taxable account, trimming XLV to fund the switch would realize gains that should be weighed against the incremental exposure, since XLV itself already owns Lilly. The decision hinges on how narrow the reader wants the bet to be.
Markets have broadly put up strong numbers this year, especially since the late-March stumble that followed the escalation of conflict in Iran. The rally has been led by semiconductors, unsurprisingly tied to the ongoing AI boom. But that narrative is starting to look stale, and the theme appears extended after the SOXX ETF more than doubled between April and the end of June.
I still believe the AI boom has room to run, but I expect the next month or two to be choppy across the AI trade as these gains are digested and markets price in overspending nerves. Given how large these positions have become within the major indexes, that volatility could weigh on the broader market as well.
At the same time, healthcare, and especially biotech, has quietly started to lead.
Biotech has been in the doldrums for years, but this recent push appears to have legs. The group is benefiting from a stronger drug development cycle, renewed investor interest and the potential for AI to accelerate and broaden research pipelines. In addition, a number of now-profitable mid-cap biotech companies are trading at reasonable valuations, with improving earnings revisions and strong momentum at their backs.
The Health Care Sector ETF ((XLV - Free Report) ) has pushed to new record highs this month, helped by both improving fundamentals and a defensive rotation beneath the surface of the market. Meanwhile, the Biotech ETF ((XBI - Free Report) ) has climbed to new year-to-date highs and is now approaching levels not seen since the prior exuberant peak in 2021.
Most investors are familiar with Eli Lilly ((LLY - Free Report) ), the clear market leader in the space, which continues to trade well. But several smaller and mid-cap names are also beginning to stand out, including Exelixis ((EXEL - Free Report) ), PTC Therapeutics ((PTCT - Free Report) ), Fortrea Holdings ((FTRE - Free Report) ), and the well-known genomics leader Illumina ((ILMN - Free Report) ).
Image Source: Zacks Investment Research
Illumina Shares RecoverIllumina is the dominant player in next-generation sequencing, providing the instruments, consumables, and array-based systems used for genetic and genomic analysis across research, clinical, and applied markets. Its customers span leading genomic research centers, academic institutions, government labs, hospitals, and pharmaceutical, biotech, and diagnostics companies.
After a bruising multi-year stretch, the story is turning. After tumbling some 80% and bottoming last year, shares have gained roughly 46% year to date and recently hit a new 52-week high.
On valuation, ILMN isn't especially cheap at 36x forward earnings, but it represents the space broadly as a leader in its segment. The company is expected to grow earnings at a respectable 10.25% annually over the long-term, and it hasn't missed the consensus estimate in any of the last four quarters. Momentum has clearly improved.
Illumina carries a Zacks Rank #2 (Buy) on the back of a solid earnings estimate revision trend, with modest revisions higher. As noted, the stock is a good barometer of the sector.
Image Source: TradingView
PTC Therapeutics Stock Hits Record HighsPTC Therapeutics is a biopharma focused on rare diseases, developing and commercializing therapies across neuromuscular and metabolic disorders. Its portfolio spans commercial products, a Novartis-partnered pipeline, and a growing global launch footprint.
The story here is all about momentum, and right now it's about one drug: Sephience (sepiapterin) for phenylketonuria. Shares have surged roughly 75% since the drug's July 2025 approval, driven by a blockbuster launch and raised full-year guidance. First-quarter revenue reached $273 million, with Sephience alone contributing $125 million, up 36% sequentially.
On valuation, PTCT isn't a classic value name, sitting near breakeven on profitability, so the multiple reflects growth optionality rather than current earnings. But the earnings picture is improving dramatically, with the consensus estimate climbing more than 150% over the past three months, and management targeting $2 billion in peak sales backed by roughly $1.89 billion in cash.
PTC Therapeutics was just upgraded to a Zacks Rank #1 (Strong Buy) on July 8 on the strength of that upward revision trend. Of this group, it's the strongest pure momentum story.
Image Source: Zacks Investment Research
Fortrea Holdings Stock Approaches Breakout LevelFortrea is a contract research organization (CRO), spun out in 2023 and headquartered in Durham, NC, providing clinical development and patient-access services to pharmaceutical, biotech, and medical-device customers worldwide.
This is the deep-value turnaround of the group. After being left for dead last summer, shares have rebounded from around $4 to the mid-teens on backlog growth, margin improvement, and aggressive cost cuts. Q1 revenue was $636 million, roughly flat year over year, but backlog has swelled to $7.8 billion, pointing to better days ahead.
On valuation, the setup is compelling. FTRE trades at roughly 21.1x forward earnings, with EPS forecasts projecting 40.9% annual growth over the next 3-5 years. That said, sales growth forecasts is marginal over the next year.
Fortrea was added to the Zacks Rank #1 (Strong Buy) list on July 7, with the current and next year estimate rising over the last 60 days.
Image Source: TradingView
Exelixis Shares Offer Growth and ValueExelixis is an oncology biotech focused on drugs for difficult-to-treat cancers, anchored by its cabozantinib franchise and building out a pipeline of small molecules, antibody-drug conjugates, and other biotherapeutics.
Of the four, this is the cleanest blend of profitability, growth, and reasonable valuation. Shares recently hit a new 52-week high, backed by steady earnings compounding rather than a single catalyst. The company beat consensus last quarter and is expected to grow earnings around 15% annually, a healthy clip for an already-profitable biotech.
On valuation, EXEL is the most attractive of the group, trading at roughly 16x forward earnings, well below the peer industry average north of 21x, with a PEG near 1.5.
Exelixis carries a Zacks Rank #2 (Buy) on rising earnings estimates, with top-tier Value and Growth Style Scores and an overall VGM Score of A. EXEL stock has been grinding slowly and steadily higher over the last nine months.
Image Source: TradingView
Should Investors Buy Shares in ILMN, PTCT, FTRE and EXEL?The AI trade is not dead, but after such a powerful run, semiconductors may need time to digest gains. That makes the recent strength in healthcare and biotech especially notable.
Unlike some defensive rotations, this move is not only about investors hiding from volatility. Many biotech names now have improving pipelines, better earnings momentum, stronger balance sheets, and technical breakouts at their backs. ILMN offers broad exposure to genomics, PTCT brings explosive drug-launch momentum, FTRE is a deep-value turnaround, and EXEL offers the cleanest mix of profitability, growth, and valuation.
If market leadership continues to broaden beyond AI, biotech may be one of the more compelling areas to watch.
Roughly $400 billion. That is how much market value Eli Lilly (NYSE:LLY | LLY Price Prediction) has added over the past year, with shares climbing from $773.86 on July 2, 2025 to $1,213.91 on July 2, 2026, a 56.86% gain that has pushed the drugmaker’s market capitalization to $1.063 trillion.
No other Big Pharma name has expanded its footprint by that magnitude in that window. The surge is the market’s verdict on a business that is now selling GLP-1 medicines faster than it can make them, and adding oral formulations, oncology franchises, and immunology drugs on top.
What It Means This $400 billion gain came on the back of extremely strong execution. In the most recent quarter, Lilly reported Q1 2026 revenue of $19.80 billion, a 55.5% year-over-year jump that beat consensus by 11.25%. Non-GAAP EPS of $8.55 topped the $6.79 estimate by 25.92%, driven by net income which rose 168.04% year-over-year to $7.40 billion, and operating income which climbed 64.84% to $8.92 billion.
Two products are doing the heavy lifting. Mounjaro generated $8.66 billion in the quarter, up 125% year-over-year. Zepbound delivered $4.16 billion, with U.S. revenue up 80%.
Beneath the incretin franchise, Jaypirca rose 79% to $165 million, Ebglyss climbed 141% to $145 million, and Omvoh grew 115% to $80 million. Volume across the business rose 65%, offsetting a 13% decline in realized prices.
On top of this, international revenue expanded 81% to $7.70 billion, showing Lilly is scaling globally rather than leaning on a single home market.
Market Reaction Shares of LLY stock are up 14.07% over the past month and 7.65% over the past week, closing at $1,213.91 on July 2, 2026, a 1.86% daily gain. Year-to-date the stock is up 13.34%, and the five-year return sits at 443.8%. LLY is now trading roughly 1% below its 52-week high of $1,238.
Bull Case The bull case for Eli Lilly rests on three pillars: earnings power, pipeline breadth, and management conviction. On earnings, Lilly has delivered four consecutive beats, with the 25.92% Q1 2026 surprise the largest in the streak. Reported EPS has climbed from $6.31 in Q2 2025 to $7.02, $7.54, and $8.55 across the following three quarters. Management raised full-year 2026 guidance to $82.0 billion to $85.0 billion in revenue and non-GAAP EPS of $35.50 to $37.00, with a performance margin of 47.0% to 48.5%.
In terms of the company’s pipeline, the FDA approved Foundayo (orforglipron), the only approved GLP-1 pill that can be taken any time of day without food and water restrictions. Orforglipron also beat oral semaglutide in a head-to-head type 2 diabetes trial published in The Lancet. Retatrutide delivered positive Phase 3 data in T2D, and Lilly added four acquisitions in the quarter: Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics.
On conviction, there’s plenty. Four of Eli Lilly’s directors bought stock together on June 15, 2026 at $1,129.35, following prior coordinated purchases at $988.09 in May and $919.90 in April. Buying at rising prices signals conviction. CEO David Ricks framed the quarter this way: “2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion.”
Bottom Line For long-term holders, the $400 billion in added market value reflects a business compounding at rare speed for a company already the size of Lilly. Risks exist, though. With $584 million in acquired IPR&D charges, $279 million in litigation charges, tariff exposure, and the 13% price give-back on incretins, there’s plenty for investors to consider. That’s on top of a forward P/E of 33 leaves little room for disappointment.
Thus, I think the next catalyst investors have on the calendar is Lilly’s Investment Community Meeting on December 7, 2026, with an ex-dividend date of August 14, 2026 in between. A trillion-dollar drugmaker growing revenue at 56% is a rare data point in pharma. That is what $400 billion buys you.
Honeywell Technologies (HON - Free Report) recently provided investors with an updated financial outlook for 2026 after executing the one-for-two reverse stock split.
Following the reverse stock split, which became effective on June 29, 2026, Honeywell's outstanding common shares were reduced to approximately 317 million from 634 million. The updated guidance considers a revised weighted average diluted share count, which decreased to 319 million from 639 million for both the second half and full-year 2026.
Considering the effect of reverse stock split, Honeywell Technologies revised its earnings per share (EPS) guidance, while it reaffirmed sales outlook for both the second half and full-year 2026. The company continues to expect second-half 2026 sales of $10.1-$10.3 billion, with organic sales growth of 3-5%. For 2026, sales are still projected at $19.9-$20.2 billion, with organic sales rising in the range of 2-3%.
Honeywell Technologies currently expects adjusted EPS for the second half of 2026 to be in the range of $4.40-$4.70 compared with $2.20-$2.35 expected earlier. For 2026, adjusted EPS is projected at $7.90-$8.30, up from the previous guidance of $3.95-$4.15. It maintained the adjusted earnings growth guidance at 22-31% for the second half and 22-28% for full-year.
Also, for the second half 2026, HON projects segment margin to be 20.9-21.6% with margin expansion of 310-380 basis points and free cash flow of approximately $1.5 billion. However, the second-half operating cash flow outlook was revised to approximately $1.7 billion from around $2.3 billion. For full-year 2026, Honeywell Technologies expects a segment margin of 19.8-20.3% with margin expansion of 220-270 basis points, operating cash flow of approximately $2.1 billion and free cash flow of roughly $2.0 billion.
It is worth noting that on June 29, Honeywell Technologies became a standalone public company following the spin-off of the Aerospace Technologies business from Honeywell International. The separation completed the company's multi-year portfolio restructuring, creating three independent publicly traded companies. With a sharper focus on industrial automation, Honeywell Technologies expects to benefit from improved operational focus, disciplined capital allocation and greater financial flexibility.
HON’s Zacks RankSolid demand for its products and solutions, led by increasing building projects, particularly in North America, will likely be beneficial for HON’s Building Automation segment. Increasing order rates and capex investments in data centers and health care projects also bode well. However, HON has been dealing with increasing operating costs, which might hurt its margins and profitability.
The company currently carries a Zacks Rank #3 (Hold). Following the spin-off of the Aerospace Technologies business, Honeywell’s shares have lost 3.3% compared with the Zacks Diversified Operations industry’s 2.6% decline.
Image Source: Zacks Investment Research
Stocks to ConsiderBetter-ranked companies are discussed below.
GPGI, Inc. (GPGI - Free Report) currently carries a Zacks Rank #2 (Buy). GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has increased 20.3%.
Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 3.3%.
The Zacks Consensus Estimate for GFF’s 2026 earnings has increased 1.4% in the past 60 days.
Public Policy Holding Company, Inc. (PPHC - Free Report) presently carries a Zacks Rank of 2. PPHC delivered a trailing two-quarter average earnings surprise of 2.1%.
In the past 60 days, the consensus estimate for Public Policy Holding’s 2026 earnings has remained steady.
Shares of Broadcom (AVGO +4.28%) charged higher Thursday morning, climbing as much as 3.9%. As of 11:40 a.m. ET, the stock was still up 3%.
The semiconductor specialist continued a rally that began yesterday, sparked by news regarding its deals with some of the world's biggest companies.
Image source: The Motley Fool.
A $30 billion commitment Word broke yesterday that Apple (AAPL +0.41%) inked an expansive new multiyear deal with Broadcom. The iPhone maker announced that it plans to spend more than $30 billion on Broadcom chips over the next five years.
In a press release, the pair plan to "design and produce custom silicon components and cutting-edge wireless connectivity technologies for a wide range of Apple products." The deal will include a $1.5 billion expansion and modernization of Broadcom's manufacturing facility in Fort Collins, Colorado. The $30 billion commitment will underpin the production of more than 15 billion semiconductors in the U.S.
The planned investment will allow the chipmaker to produce "advanced radio frequency components -- including FBAR filters -- and advanced wireless connectivity technologies." These components facilitate a wide variety of radio signals used by iPhones for 5G voice and data transmission, Bluetooth, Wi-Fi, and GPS navigation, among others.
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405.34
And more This news was followed by a Reuters report that Meta Platforms (META +2.08%) plans to begin production of its own in-house artificial intelligence (AI) chip as early as September. The specialty processor, code-named Iris, was designed by Broadcom and will be used to improve AI capabilities on Facebook and Instagram, according to the report.
Despite the company's expanding opportunities and growing backlog, Broadcom stock is currently selling for 21 times next year's expected earnings. Furthermore, the stock's price/earnings-to-growth (PEG) ratio -- which factors in the company's impressive growth -- clocks in at 0.53, when any number lower than 1 is the standard for an undervalued stock.
This gives astute investors the opportunity to buy Broadcom stock for an attractive price.
Danny Vena, CPA has positions in Apple, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Apple, Broadcom, and Meta Platforms. The Motley Fool has a disclosure policy.
Broadcom (AVGO +4.28%) is becoming a more important part of the AI infrastructure race as companies like OpenAI push into custom chips. The bull case is powerful: better efficiency, lower compute costs, and a deeper role in AI. But valuation and execution risk still make this story more complicated than it first looks.
Stock prices used were the market prices of June 29, 2026. The video was published on July 5, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The stock market struggled on Tuesday and Wednesday this week, but Wall Street is making a comeback today. Traders seem ready to trust that diplomacy could actually resolve the Iranian conflict and its implications on global oil prices.
Speaking to reporters aboard Air Force One, President Trump suggested that Iran called to make a deal. Investors responded by buying stocks and selling oil. Whether that optimism survives the next news cycle is anyone's guess. Either way, the major indexes are up today.
The Nasdaq Composite (^IXIC +1.23%) rose 0.9% by 12:19 p.m. ET, while the S&P 500 (^GSPC +0.76%) gained 0.6%. The Dow Jones Industrial Average (^DJI +0.25%) added 0.3%, lagging its peers as industrial giant Honeywell International (HON +0.88%) continued its post-spinoff collapse.
^IXIC data by YCharts
Micron's $3 billion bet lifts the chip sector Memory chip maker Micron Technology (MU +6.90%) jumped 7.5% after announcing a $3 billion investment in the U.S. semiconductor supply chain. The company is already pouring cash and concrete into chipmaking facilities in Texas and New York, with plans to invest "more than $250 billion" over the next decade.
The resulting chip rally was broad and enthusiastic. Advanced Micro Devices (AMD +5.62%) surged 7.2%, Broadcom (AVGO +4.28%) gained 3.3%, and the iShares Semiconductor ETF (SOXX +4.42%) rose 5.2%.
The rally in hardware names came at the expense of software and hyperscaler stocks. Alphabet (GOOG 1.39%) (GOOGL 1.45%) fell 2.5%, making it the largest drag on both the S&P 500 and Nasdaq Composite as measured by index score or market cap impact. If the hardware companies are poised to make more money, their top customers must pay for their products.
Image source: Getty Images.
Oil reversed sharply after Trump's comments on Iran, calling for negotiations. The United States Oil Fund (USO 2.67%) fell 2.7%, erasing most of Wednesday's gains.
The market optimism seems a bit aggressive given that U.S. and Iranian forces are still actively shooting at each other, though. U.S. Central Command hit 90 Iranian sites Thursday, and Iran struck back at bases in Kuwait and Bahrain. Ship traffic through the Strait of Hormuz dropped to 25 vessels on Wednesday, down from 49 the day before. For context, 130 ships used to pass through daily before the war.
Honeywell remained the Dow's biggest loser, falling another 9.2% and erasing 134 points from the index. The stock has now lost roughly 25% over three trading sessions following its aerospace spinoff. Barron's noted Wednesday that the company's updated earnings guidance "isn't as good as it seems."
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The bigger picture Thursday's rally suggests investors are betting on diplomacy over escalation. Trump's dovish comments offered a glimmer of hope, even as both sides continued military strikes. This diplomatic relationship is complicated.
Micron's domestic investment announcement gave investors a fresh reason to buy chip stocks beyond simple relief from oversold conditions. Whether that momentum continues depends on upcoming earnings and sector guidance. The third earnings season of 2026 (covering Q2 results in most cases) starts next week, with hundreds of big-ticket banks and tech stocks posting their financial updates over the coming month.
Anders Bylund has positions in Alphabet and Micron Technology. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Broadcom, Honeywell Technologies, Micron Technology, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
RESTON, Va., July 9, 2026 /PRNewswire/ -- General Dynamics (NYSE: GD) will webcast its second-quarter financial results conference call on Wednesday, July 29, beginning at 9 a.m. EDT.
The live webcast of the conference call will be available at www.gd.com. A replay will be available shortly after the live presentation.
More information about General Dynamics is available at www.gd.com.
The global market for technology services grew at its fastest pace ever in the second quarter, propelled by soaring enterprise demand for cloud services to sup
Jim Cramer used his July 9, 2026 CNBC Stop Trading segment to plant a flag on managed care, framing CVS Health (NYSE:CVS | CVS Price Prediction) as the consolidation winner in a sector where insurers are finally getting paid for the risks they underwrite. RBC raised its price target on CVS Health, and Cramer connected that call to a broader thesis: with rivals shrinking and premiums climbing, the operators still standing have real pricing power.
“The real bull market here has been for the last month the UNH managed care insurance business,” Cramer said. He added, “We had Walgreens basically disappearing. We had Rite Aid disappearing. We have CVS, CVS redoing the front of the store and CVS doing a terrific job with Aetna.” Cramer expected meaningful pricing power to return: “The price increases in DRAM and price increases in health insurance are going to be double-digit.”
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Cramer Says CVS Is the Biggest Winner From Industry Consolidation The retail pharmacy shakeout has been a big tailwind for CVS. With Walgreens and Rite Aid stepping back, CVS captures more front-of-store foot traffic and prescriptions, flowing straight into an insurance and pharmacy benefit engine that just had its best quarter in years.
In Q1 2026, CVS posted adjusted EPS of $2.57 versus a $2.21 consensus on revenue of $100.43 billion. The Aetna-anchored Health Care Benefits segment saw adjusted operating income climb 52.6% year over year to $3.04 billion, while the medical benefit ratio improved to 84.6% from 87.3%. Management raised full-year adjusted EPS guidance to $7.30-$7.50 and lifted the operating cash flow target to at least $9.5 billion.
CVS shares are up 7.61% over the past month and 61.69% over the past year, trading around $104.72. The average analyst price target sits around $107.73, with 24 buy or strong buy ratings against just four holds. The stock’s forward P/E is about 14x, which still represents a discount to the group despite the run.
UnitedHealth Shows Why Pricing Power Is Returning UnitedHealth Group (NYSE:UNH) is the clearest evidence that Cramer’s double-digit thesis holds. Management explicitly cited “repricing across all lines of business in response to elevated but in-line cost trends” as the driver of Q1 2026 margin expansion. The medical cost ratio improved 90 basis points to 83.9%, and adjusted EPS came in at $7.23 versus a $6.61 consensus. Full-year adjusted EPS guidance was raised to greater than $18.25.
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UNH is willingly shedding members. Guidance calls for UnitedHealthcare enrollment of 46.9 to 47.5 million, down from 49.8 million in 2025, as the company exits unprofitable contracts. Shares are up 5.27% in the past month and 42.03% over the past year. Polymarket traders currently price in a 71% probability that UNH will beat its next quarterly earnings report, due July 16.
Humana Is Benefiting From Better Medicare Economics Humana (NYSE:HUM) rounds out the trio. Q1 2026 revenue jumped 23.5% year over year to $39.65 billion, with individual Medicare Advantage membership up roughly 1.14 million, or 22% year to date. The insurance segment benefit ratio landed at 89.4%, favorable to guidance. Humana shares have led the group over the past month, rising 11.58%, and are up 55.89% year to date.
FY2026 adjusted EPS guidance of at least $9.00 steps down from the prior year’s $17.14, reflecting the bonus-payment reset. Cramer’s argument is that improved CMS benchmark funding and IRA-driven Part D subsidies could pull the sector back toward equilibrium faster than bears expect.
What to Watch Next Cramer’s thesis ultimately comes down to pricing power. As weaker competitors shrink or disappear and insurers reprice policies to reflect higher healthcare costs, the industry’s earnings outlook appears far healthier than it did a year ago.
The next major test arrives with UnitedHealth’s earnings on July 16, followed by updates from CVS and Humana later in the quarter. Investors will be watching whether improving medical cost ratios and higher premiums continue translating into stronger margins across the sector.
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Palo Alto Networks CEO Nikesh Arora warned that token costs need to drop as much as 90% to promote large-scale artificial intelligence adoption.
"I think 54% is a good start," Arora told CNBC's Seema Mody on "Squawk on the Street" Thursday, after OpenAI CEO Sam Altman told CNBC that the frontier lab's latest model is 54% more token-efficient for agentic coding. "I think we probably need another turn at it."
Arora said token efficiency needs to drop to as much as 20% over the next twelve months, and 90% by the following year.
Rising token costs have emerged as a major pain point for businesses and put a strain on AI budgets. The current pricing, he said, makes AI tools increasingly difficult for businesses to implement.
"We need to see the pricing for AI come down," Arora said.
Arora is among a growing group of executives pushing for a decline in token pricing. The worry is that high token costs create a major barrier to widespread adoption, preventing many enterprises from using the tools.
Read more CNBC tech newsChinese lidar maker with Nvidia ties accused of being cyber risk for U.S.China's Alibaba bans Anthropic AI for employees after 'distillation attack' accusationSpaceX President Gwynne Shotwell to donate stock to Trump AccountsMicrosoft cuts 4,800 jobs, as Xbox unit downsizes and plans to spin off four gaming studiosLast week, Palantir CEO Alex Karp blasted the token model used by Anthropic and OpenAI, and called open-weight models a potential solution.
"I'm not throwing shade at them, but something has gone completely wrong," he told CNBC's "Squawk Box." "The basic view among enterprises in this country is I'm going to chillax and waste my time with tokens."
The token problem is leading many businesses to implement cheaper open-weight tools, including Chinese models that are quickly closing the gap with American labs.
At the same time, AI spending is accelerating to new highs to power the massive infrastructure buildout. Tech giants are also looking for new ways to fund these AI investments, with SpaceX raising $25 billion last month in a bond sale. Amazon raised $25 billion in debt this week.
Arora said the market will start to come to terms with the spending, or businesses will adjust to the market. Budgets will also decline as the technology becomes more efficient.
"It's important to understand the demand continues to be infinite, and as long as you have an infinite demand curve that you're facing, I think all these things will rationalize over time," he said.
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Many parents assume braces are something they will deal with when their children reach high school. Increasingly, that is no longer true. Orthodontists now evaluate some children as early as age seven, looking for jaw-development issues, crowding, bite problems, and other concerns that can become more expensive to fix later. What once seemed like a teenage expense can begin years earlier and, for families with multiple children, repeat several times.
The costs add up quickly. A family with three children can easily spend $15,000 to $30,000 on orthodontic treatment over the course of a decade. Most parents pay those bills from savings or monthly cash flow. This article explores another approach: building a portfolio whose income covers the orthodontist’s bill while preserving the principal for the next family goal.
Braces are not always cosmetic Many parents think of braces as a cosmetic expense, but orthodontists often recommend treatment for functional reasons. Severe crowding can make teeth difficult to clean, increasing the risk of cavities and gum disease. Significant bite problems can contribute to uneven tooth wear, jaw pain, chewing difficulties, speech issues, and even sleep-related breathing problems in some children. Straight teeth may look better, but orthodontic treatment is often about preserving long-term oral health rather than appearance alone.
Parents rarely view braces as an investment, but in some respects they are. Straight teeth can improve confidence, speech, and first impressions during school, college, and job interviews. Fair or not, appearance influences social and professional opportunities throughout life. Orthodontic treatment cannot guarantee success, but many parents see it as one of the ways they can help remove obstacles for their children as they enter adulthood.
Orthodontics may start earlier, and last longer, than you expect Many parents are surprised to learn that orthodontic treatment often begins before the teenage years, as young as 7 years old. Modern orthodontists frequently evaluate children around age seven because jaw growth can still be influenced while the mouth is developing. Early treatment may create room for incoming permanent teeth, correct bite problems, and reduce the need for extractions or more invasive procedures later. In some cases, a child who receives early intervention still requires braces as a teenager, but the second phase may be shorter, simpler, and less expensive than it otherwise would have been.
Orthodontic treatment does not always end when the brackets come off. Some children require multiple phases of treatment. Others need retainers for years afterward. Teeth naturally shift over time, and patients who stop wearing retainers can lose some of the correction they paid for. The orthodontist’s bill may be temporary, but maintaining the results often requires continued attention.
What braces actually cost in 2026 Traditional metal braces typically run $5,000 to $6,000 per child. Ceramic and clear aligners push closer to $7,500, and complex cases can hit $10,000. Insurance often caps lifetime orthodontic coverage around $1,500 to $2,500 per child, and many plans exclude adults entirely. Regional differences matter: urban Northeast and California pricing runs well above the national average. Orthodontic costs have steadily risen over time, and treatment often arrives during the same years parents are paying for sports, activities, vehicles, college savings, and countless other child-related expenses.
The three-kid problem Treatment rarely lines up neatly. Child one finishes a 24-month plan just as child two starts. Child three follows two years later. Spread over roughly six years, three children at $7,500 each averages $3,750 per year in out-of-pocket cost. The $5,000 scenario lands near $2,500 per year. The $10,000 scenario lands near $5,000 per year. Layered on top of activities, summer camp, and rising healthcare costs (May 2026 CPI hit 335.123), they crowd the household budget.
The capital required at each yield tier Using the middle scenario of $3,750 in annual income:
3.5% yield: $3,750 divided by 0.035 equals $107,143. Dividend-growth utilities and core REITs live here. 5% yield: $3,750 divided by 0.05 equals $75,000. Net-lease REITs and high-dividend equity. 7% yield: $3,750 divided by 0.07 equals $53,571. BDCs and preferred shares. 10% yield: $3,750 divided by 0.10 equals $37,500. Mortgage REITs and leveraged income funds. In the highest-cost scenario, three children requiring $10,000 of orthodontic treatment each would create roughly $30,000 of total expenses. Spread across six years, that works out to about $5,000 annually, requiring roughly $100,000 of capital at a 5% yield.
Building blocks worth a look Conservative tier: NextEra Energy (NYSE:NEE | NEE Price Prediction) carries a 2.71% yield with a stated 8%+ EPS CAGR through 2032 and 10% near-term dividend growth. Southern Company (NYSE:SO) yields about 3.2% with a 25-year streak of quarterly increases.
Moderate tier: Realty Income (NYSE:O) pays monthly, currently around 5.3%, with 670 consecutive monthly dividends and Q1 2026 AFFO of $1.13. STAG Industrial (NYSE:STAG) yields about 4% on industrial net-lease properties at 97.2% occupancy.
Aggressive tier: Main Street Capital (NYSE:MAIN) yields roughly 6% on the regular monthly, with 19 consecutive supplemental quarterly dividends currently at $0.30. Annaly Capital Management (NYSE:NLY) yields near 12.6%, but book value drifted from $20.21 to $19.82.
Payment plan versus portfolio An orthodontist payment plan spreads the bill over time. A portfolio attempts to generate the cash flow needed to make those payments without drawing down assets. The difference is that when the braces come off, the payment plan ends and the money is gone. The portfolio remains available for the next family milestone.
The timing and growth advantages Braces are not a surprise. Parents typically see them coming five to ten years out, which is the window where conservative dividend growth wins. NextEra raised its quarterly dividend from $0.385 in 2021 to $0.5665 in 2025. Realty Income marched from $0.2325 monthly in 2020 to $0.271 in mid-2026. A 3.5% yield growing 8% annually doubles in nine years; a 10% mortgage REIT yield with flat or declining book value does not.
When a dedicated portfolio does not make sense Families with strong cash flow may find it simpler to absorb $300 monthly than to earmark six figures. Decent dental insurance can knock $1,500 to $2,500 off per child. A $40,000 sleeve dedicated to high-yield names introduces single-stock risk that outweighs the convenience.
Three actions worth taking Confirm your actual orthodontic estimate with two providers before sizing any sleeve. Compare the trailing 10-year total return of a 3.5% dividend-growth utility against a 10% mortgage REIT to see what compounding does. If treatment is more than five years out, weight the tiers toward growth, not maximum current yield. Contact [email protected] for any questions or corrections.
Berkshire Hathaway (BRKA 0.56%) (BRKB +0.12%) has owned Kroger (KR +0.56%) shares for nearly seven years. That goes back to the days when Warren Buffett made the capital allocation decisions. Buffett may have stepped aside as Berkshire Hathaway's CEO, but the famed value investor undoubtedly approves of this holding from his perch as chairman.
The company results haven't been terrible, but the new CEO aims to accelerate growth. Kroger's shares haven't performed well, but a check of the business shows this is an excellent buying opportunity for astute long-term investors.
Image source: Getty Images.
Growing sales Kroger operates supermarkets that include grocery, pharmacy, and gas stations. People need these consumer staples, no matter what's going on with their personal economic situation. That's the good news.
However, it's a very competitive business. Giants like Amazon and Walmart compete in the space. Still, Kroger has been in existence since 1883, so it's been doing something right.
Fortunately, new CEO Greg Foran doesn't plan to sit idly by. Foran plans broad-based price cuts to remain competitive. He certainly knows how to run an operation focused on low prices, having previously worked as CEO of Walmart U.S.
Kroger may not be growing fast, but it has seen increasing sales. The company's first-quarter same-store sales (comps), excluding gasoline, grew 1%. On that basis, management expects comps to increase 1% to 2% for the year.
Still, the company's gross margin under generally accepted accounting principles (GAAP) contracted 30 basis points to 22.7%. Investors may be concerned that lower prices will further hurt margins, but management plans to minimize the impact by pressing suppliers on costs and focusing on efficiency.
Cheap valuation With intense competition, tepid sales growth, and a lower gross margin, investors haven't been too pleased with Kroger. Over the last year, through July 6, the share price lost 16.1%. Meanwhile, the S&P 500 index gained 19.3%.
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That's certainly disappointing, but a new CEO with fresh ideas and tremendous success at Walmart should provide investors with optimism about the future. Cutting prices to maintain competitiveness seems like a good first step.
In the meantime, Kroger's valuation has become more attractive. Earnings can fluctuate, so it's easier to use the price-to-sales (P/S) ratio. The shares' P/S ratio has dropped from 0.35 to 0.25 over the last year. That's a fraction of the S&P 500's P/S multiple of 3.7.
Kroger shares may deserve a lower multiple than the overall market, given that it's not a fast-growing business. But a steady business in the hands of a strong and experienced executive focused on market share and improved sales should reward patient investors.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Walmart. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.
Investors interested in Medical Services stocks are likely familiar with Viatris (VTRS) and Danaher (DHR). But which of these two companies is the best option for those looking for undervalued stocks?
