Track market-moving stories before they get noisy

Wall Street expects a year-over-year increase in earnings on higher revenues when CSX (CSX - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis freight railroad is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of +20.5%.

Revenues are expected to be $3.96 billion, up 10.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for CSX?For CSX, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.23%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that CSX will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that CSX would post earnings of $0.5 per share when it actually produced earnings of $0.54, delivering a surprise of +8.00%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

CSX doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Analysts on Wall Street project that Steel Dynamics (STLD - Free Report) will announce quarterly earnings of $5.42 per share in its forthcoming report, representing an increase of 97.8% year over year. Revenues are projected to reach $6.11 billion, increasing 26.5% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Steel Dynamics metrics that are commonly monitored and projected by Wall Street analysts.

Based on the collective assessment of analysts, 'External Net Sales- Steel Fabrication' should arrive at $441.09 million. The estimate indicates a change of +16.8% from the prior-year quarter.

The consensus estimate for 'External Net Sales- Metals Recycling' stands at $557.07 million. The estimate points to a change of +6.9% from the year-ago quarter.

Analysts predict that the 'External Net Sales- Steel' will reach $4.27 billion. The estimate points to a change of +20.6% from the year-ago quarter.

The average prediction of analysts places 'External Net Sales- Other' at $424.14 million. The estimate suggests a change of +32.4% year over year.

It is projected by analysts that the 'Steel - Average external sales price (Per ton)' will reach 1376 dollars per tonne. Compared to the current estimate, the company reported 1119 dollars per tonne in the same quarter of the previous year.

Analysts expect 'Steel Fabrication - Average sales price (Per ton)' to come in at 2458 dollars per tonne. The estimate is in contrast to the year-ago figure of 2495 dollars per tonne.

According to the collective judgment of analysts, 'Steel - External Shipments (Tons)' should come in at 3100 thousands of tons. The estimate is in contrast to the year-ago figure of 3163 thousands of tons.

The consensus among analysts is that 'Steel Fabrication - Shipments (Tons)' will reach 179 thousands of tons. Compared to the present estimate, the company reported 152 thousands of tons in the same quarter last year.

Analysts forecast 'Steel - Average ferrous cost (Per ton melted)' to reach 408 dollars per tonne. The estimate compares to the year-ago value of 381 dollars per tonne.

The combined assessment of analysts suggests that 'Steel - Flat Roll shipments - Butler, Columbus and Sinton' will likely reach 2067 thousands of tons. Compared to the current estimate, the company reported 2141 thousands of tons in the same quarter of the previous year.

The collective assessment of analysts points to an estimated 'Metals Recycling - Ferrous shipments (Gross tons)' of 1555 thousands of tons. Compared to the present estimate, the company reported 1590 thousands of tons in the same quarter last year.

Analysts' assessment points toward 'Steel - Flat Roll shipments - Steel Processing Divisions' reaching 688 thousands of tons. Compared to the present estimate, the company reported 544 thousands of tons in the same quarter last year.

View all Key Company Metrics for Steel Dynamics here>>>

Shares of Steel Dynamics have experienced a change of +0.6% in the past month compared to the +2.1% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), STLD is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways VEEV expands its IQV partnership, adding clinical operations applications as enterprise standards for studies.Veeva's CTMS, eTMF, Study Startup and Site Connect tools aim to improve trial efficiency.VEEV's expanded collaboration could drive broader adoption and cross-selling. Veeva Systems (VEEV - Free Report) recently expanded its partnership with IQVIA (IQV - Free Report) , with the latter selecting additional Veeva clinical operations applications as enterprise standard solutions across its clinical development studies. The agreement builds on the companies’ previously announced electronic data capture (EDC) partnership and strengthens their collaboration in clinical research.

The expanded partnership is an encouraging development for Veeva, as IQVIA’s selection of its clinical operations applications as enterprise standards strengthens the company’s presence in clinical research technology.

Veeva has also continued to expand its customer relationships, with recent partnerships involving Servier and Amgen underscoring demand for its cloud-based solutions across the life sciences industry.

These developments could support broader adoption of Veeva’s clinical applications and strengthen its competitive position over the long term. However, the IQVIA agreement's contribution to revenue growth and profitability will depend on implementation timelines and subsequent customer demand.

Likely Trend of VEEV Stock Following the NewsFollowing the announcement, shares of VEEV traded flat in yesterday’s trading. Year to date, shares of the company have gained 35.1% compared with the industry’s 19.1% growth. However, the S&P 500 has risen 13.8% in the same timeframe.

The expanded partnership with IQVIA is likely to support VEEV’s long-term growth by strengthening the adoption of its clinical applications across a major clinical research organization. Making Veeva’s solutions standard applications for IQVIA’s clinical development studies could increase product visibility, deepen its presence in the clinical research ecosystem and create opportunities to reach more biopharmaceutical customers. The collaboration also strengthens the value proposition of Veeva’s clinical technology portfolio by enabling deeper integration and more efficient workflows.

VEEV currently has a market capitalization of $47.9 billion.

Image Source: Zacks Investment Research

More on Veeva’s Clinical Operations Software SuiteVEEV is expanding its role in clinical research by being selected as the enterprise-standard solution for IQVIA’s clinical development studies. The agreement covers Veeva Clinical Trial Management System (CTMS), electronic Trial Master File (eTMF), Study Startup and Site Connect, extending the companies’ previously announced EDC partnership. These applications are designed to support key stages of clinical trials, from study planning and site activation to trial management and documentation.

Their adoption across IQVIA’s clinical development activities is expected to support more connected workflows, improve operational efficiency and strengthen coordination among clinical research stakeholders. The collaboration also builds on the companies’ complementary capabilities, with IQVIA emphasizing that customers will retain flexibility in selecting electronic data capture, randomization and trial supply management and electronic clinical outcome assessment technologies.

Expanded Collaboration Could Strengthen Veeva’s Market PositionThe partnership could provide Veeva with a broader channel to market its clinical applications to biopharmaceutical companies that rely on IQVIA for clinical research services. IQVIA’s selection of multiple Veeva applications as enterprise standards may also strengthen customer confidence in the company’s technology and encourage sponsors to consider adopting a wider range of its solutions.

In addition, IQVIA will make Veeva’s full clinical solution portfolio available to sponsors seeking an integrated technology stack, creating a potential avenue for cross-selling. The collaboration is aimed at improving trial efficiency, strengthening clinical site engagement and enabling better-informed decisions through more connected technology workflows.

Over the longer term, these factors could support broader product adoption and recurring revenue growth for Veeva.

However, the companies have not disclosed financial terms or a deployment timeline, making the eventual revenue contribution difficult to quantify at this stage.

Industry Prospects Favoring the MarketPer a report by Grand View Research, the global healthcare CRM market size was valued at $21.5 billion in 2025 and is projected to grow from $23.3 billion in 2026 to $35.7 billion by 2033, at a CAGR of 6.2% from 2026 to 2033.

The rising demand for structured data and automation in healthcare organizations is expected to drive market growth.  

Other NewsVEEV continues to strengthen its position in the life sciences software market as the Veeva DQS platform expands reach across clinical trials. The company said the solution now supports data cleaning across more than 1,000 studies involving over 1 million subjects, highlighting growing adoption of its clinical data management capabilities.

The expanding scale of Veeva DQS is encouraging as biopharma companies increasingly prioritize efficient data management amid rising clinical trial complexity.

VEEV’s Zacks Rank & Key PicksCurrently, VEEV has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) and Merit Medical Systems (MMSI - Free Report) .

OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.

Merit Medical Systems, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.

MMSI has an estimated long-term earnings growth rate of 10.4%. MMSI’s earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.

Key Takeaways Kratos successfully tested its TDI-J85 turbojet engine across multiple launch configurations.KTOS targets production of over 3,000 engines in 2027 and annual capacity exceeding 10,000 by 2029.KTOS shares are trading at a discount, with its forward 12-month Price/Sales being 3.55X. Kratos Defense & Security Solutions (KTOS - Free Report) is strengthening its position in the defense propulsion market as demand grows for affordable engines used in unmanned aircraft, cruise missiles and decoy systems. The company recently completed successful flight tests of its TDI-J85 turbojet engine across multiple launch configurations, demonstrating its flexibility and reliability.

The tests covered lugged launch, palletized launch and surface-to-surface applications. These results highlight the engine’s ability to support different deployment methods while providing efficient performance. The J85 is designed to offer reliable ignition, improved fuel efficiency and extended operating range, making it suitable for low-cost defense platforms.

Kratos is also expanding its Spartan engine family to support growing demand for affordable, high-performance propulsion systems. The company has placed component orders to support production of more than 3,000 engines in 2027 and is working toward annual manufacturing capacity exceeding 10,000 engines by 2029.

The production expansion reflects increasing military interest in cost-effective weapons and unmanned systems that can be deployed in large numbers. Kratos’ focus on scalable manufacturing and affordable propulsion technologies could strengthen its position in next-generation defense programs.

With successful engine testing and expanding manufacturing capabilities, Kratos is positioned to benefit from rising investment in unmanned aircraft, cruise missiles and other advanced defense platforms. Continued execution of its production plans could support long-term growth.

Defense Stocks to Keep on the RadarGrowing demand for affordable propulsion systems and unmanned defense platforms could also benefit other aerospace and defense contractors.

RTX Corporation (RTX - Free Report) : RTX develops advanced propulsion technologies through its Pratt & Whitney business, supporting military aircraft and next-generation defense platforms. Its expertise in engine development positions it to benefit from continued investment in advanced propulsion systems.

Northrop Grumman (NOC - Free Report) : Northrop Grumman develops propulsion technologies and unmanned systems for defense applications. Its portfolio includes advanced missile propulsion and autonomous platforms, supporting demand for next-generation military capabilities.

KTOS’ Price Performance, Valuation and EstimatesShares of KTOS have lost 18.8% in the past year compared with the industry’s 15.9% decline.

Image Source: Zacks Investment Research

The company shares are trading at a discount, with its forward 12-month Price/Sales being 3.55X compared with its industry’s average of 6.84X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KTOS’ 2026 and 2027 earnings has remained the same over the past 60 days.

Image Source: Zacks Investment Research

KTOS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways IBKR's Q3 earnings are projected to rise 15.8% y/y, with revenues expected to grow 13.5%.Higher DARTs and client account growth are likely to drive IBKR's commission revenues.IBKR's NII is expected to rise 15.7% y/y, aided by higher interest-earning assets. Interactive Brokers Group, Inc. (IBKR - Free Report) is set to report third-quarter 2026 results on Oct. 15, after market close. Its quarterly earnings and revenues are expected to have improved year over year.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs). However, higher expenses acted as the undermining factor.

IBKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 10.9%.

IBKR’s Earnings & Sales Projections for Q3The Zacks Consensus Estimate for Interactive Brokers’ third-quarter earnings has been unchanged at 66 cents per share over the past seven days. The estimate indicates a 15.8% rise from the year-ago quarter’s reported number.

The consensus estimate for sales is pegged at $1.83 billion, suggesting a year-over-year increase of 13.5%.

Interactive Brokers’ Other Key Q3 EstimatesClient trading activity was healthy in the third quarter of 2026, supported by active investor participation amid evolving interest rate expectations, geopolitical uncertainties and market volatility. Continued interest in artificial intelligence-related stocks and portfolio rebalancing across asset classes provided a favorable backdrop for trading activity.

IBKR’s monthly brokerage metrics reflected sustained momentum, with DARTs increasing year over year throughout the quarter. The company also witnessed robust growth in client accounts and customer equity, highlighting continued customer acquisition and asset gathering. Thus, healthy trading activity across stocks, options and futures, along with an expanding client base, is expected to have supported IBKR’s commission revenues. The Zacks Consensus Estimate for third-quarter commission revenues stands at $589 million, implying 9.7% year-over-year growth.

The company’s net interest income (NII) is also expected to have benefited from higher interest-earning asset balances. Customer margin loans expanded during the quarter, reflecting sustained borrowing demand, while customer credit balances remained elevated amid continued asset inflows. Growth in margin lending and client cash balances is likely to have supported interest income, although changes in benchmark interest rates and interest paid on customer balances may have partly offset the benefits. The consensus estimate for NII is $1.12 billion, indicating a 15.7% increase from the prior-year quarter’s actual.

Revenues from other fees and services are also expected to have increased, supported by an expanding customer base and higher trading-related activity. Increased exchange-mandated payments for order flow, risk exposure fees and market data fees are likely to have contributed to growth in this revenue stream. The consensus estimate for this line item is $88 million, suggesting a 33.3% year-over-year increase.

On the expense front, operating costs are expected to have increased due to higher execution, clearing and distribution expenses associated with trading activity, alongside continued investments in technology infrastructure, platform development and regulatory compliance. Higher employee compensation and customer servicing requirements amid an expanding client base may also have contributed to expense growth.

What Our Model Unveils for IBKRAccording to our quantitative model, the chances of Interactive Brokers beating earnings estimates this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Interactive Brokers has an Earnings ESP of +1.52%.

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

Other Finance Stocks Worth a LookHere are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:

Zions Bancorporation (ZION - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 19. The company has a Zacks Rank #3 and an Earnings ESP of +1.18% at present.

Quarterly earnings estimates for Zions have been revised lower to $1.64 per share over the past week.

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

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

Analysts on Wall Street project that W.R. Berkley (WRB - Free Report) will announce quarterly earnings of $1.14 per share in its forthcoming report, representing an increase of 3.6% year over year. Revenues are projected to reach $3.8 billion, increasing 3.1% from the same quarter last year.

The consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain W.R. Berkley metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenues from non-insurance businesses' will reach $156.77 million. The estimate suggests a change of +4.3% year over year.

Analysts' assessment points toward 'Insurance service fees' reaching $32.20 million. The estimate suggests a change of +4.1% year over year.

Based on the collective assessment of analysts, 'Net premiums earned' should arrive at $3.21 billion. The estimate suggests a change of +1.8% year over year.

It is projected by analysts that the 'Net investment income' will reach $400.02 million. The estimate points to a change of +13.9% from the year-ago quarter.

The consensus estimate for 'Loss ratio - Total' stands at 63.3%. Compared to the current estimate, the company reported 62.4% in the same quarter of the previous year.

According to the collective judgment of analysts, 'Expense Ratio - Total' should come in at 28.7%. The estimate compares to the year-ago value of 28.5%.

The collective assessment of analysts points to an estimated 'Combined Ratio - Total' of 92.1%. The estimate compares to the year-ago value of 90.9%.

The average prediction of analysts places 'Loss ratio - Reinsurance & Monoline Excess' at 58.6%. Compared to the current estimate, the company reported 51.3% in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Expense ratio - Reinsurance & Monoline Excess' will likely reach 30.2%. Compared to the present estimate, the company reported 29.8% in the same quarter last year.

Analysts predict that the 'Combined Ratio - Reinsurance & Monoline Excess' will reach 88.8%. The estimate compares to the year-ago value of 81.1%.

Analysts expect 'Expense ratio - Insurance' to come in at 28.6%. Compared to the present estimate, the company reported 28.4% in the same quarter last year.

Analysts forecast 'Loss Ratio - Insurance Segment' to reach 64.1%. Compared to the present estimate, the company reported 63.9% in the same quarter last year.

View all Key Company Metrics for W.R. Berkley here>>>

Over the past month, shares of W.R. Berkley have returned +3.2% versus the Zacks S&P 500 composite's +2.1% change. Currently, WRB carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The market expects Molina (MOH - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis provider of Medicaid-related services is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -60.9%.

Revenues are expected to be $10.93 billion, down 4.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.36% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Molina?For Molina, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.30%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Molina will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Molina would post earnings of $1.37 per share when it actually produced earnings of $1.51, delivering a surprise of +10.22%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Molina doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways Generac maintains its $350 million 2026 free cash flow forecast despite rising capital expenditures.A $1.6 billion data center backlog and two multi-year supply agreements drive capacity expansion.Capital spending will reach 4.5% of 2026 sales, with investments expected to pay back in under 12 months.
Generac Holdings Inc. (GNRC - Free Report) expects to generate approximately $350 million in free cash flow in 2026, even as it increases capital spending to expand production capacity and capitalize on growing demand for backup power generators. The company’s rapidly expanding Commercial & Industrial (C&I) business, particularly its data center operations, is creating significant growth opportunities while requiring additional investments in manufacturing, assembly and packaging facilities. Generac’s ability to balance these rising capital needs with strong cash generation will be crucial to supporting its long-term growth plans.

Generac reported second-quarter 2026 cash flow from operations of $121 million, up from $72 million in the prior-year quarter. Free cash flow rose to $63 million from $14 million a year earlier. The improvement primarily reflected higher operating earnings, cash receipts from tariff refunds and lower cash tax payments. These benefits were partially offset by greater working capital requirements. The results highlight the company’s improving cash generation, although some of the quarterly improvement was supported by tariff refunds, which may not represent a recurring source of cash flow.

Generac is increasing investments to meet surging demand for large megawatt generators used in data centers. The company secured two multi-year supply agreements with hyperscale customers and reported a $1.6 billion backlog for data center products. It expects approximately $450 million in data center revenue in 2026 and is accelerating capacity expansion across its domestic and international facilities. Investments include expanding its Sussex, WI, facility, adding a second production line and increasing packaging and metal fabrication capacity through its Belvidere, IL, facility and the Enercon acquisition.

Reflecting these requirements, Generac now expects capital expenditures to reach approximately 4.5% of forecasted 2026 net sales, including investments in Belvidere and other global large megawatt generator facilities. Management stated that the higher capital expenditure outlook represents an increase of roughly $50 million in dollar terms from its previous guidance. However, it expects capital spending to remain comfortably below 5% of sales as revenue expands and eventually move back toward historical levels.

Despite these higher investments, Generac maintained its full-year free cash flow forecast of approximately $350 million, with tariff refunds expected to help offset incremental capital expenditures. Management also believes the current capacity investments offer attractive returns, citing expected payback periods of less than 12 months based on the existing backlog.

Nevertheless, execution, working capital demands and the timing of large customer projects remain important considerations. Generac’s ability to convert rising data center demand into sustainable operating cash flow will determine whether free cash flow can comfortably support its expanding capital requirements.

Taking a Look at GNRC’s CompetitorsCaterpillar Inc. (CAT - Free Report) is benefiting from broad demand across construction, mining and power markets, supported by a record backlog, growing services and strong cash generation. Power & Energy gains from data-center power demand and healthy oil and gas activity, while infrastructure spending and mining investments support other segments. For third-quarter 2026, management expects strong year-over-year sales growth and a higher adjusted operating margin than 17.5% in the prior-year quarter. For 2026, sales and revenues are projected to rise in the mid-to-high teens. Adjusted operating margin is expected near the lower end of its target range, while MP&E free cash flow should reach the upper half.

Cummins Inc. (CMI - Free Report) is benefiting from sustained data center power demand, multi-year backup power commitments and expanding prime power solutions. Firmer North American truck demand, China construction activity and power generation growth are supporting its outlook. Investments in energy-transition technologies and disciplined capital returns further strengthen its long-term prospects. For 2026, Cummins raised its revenue growth forecast to 10-13% from 8-11%, reflecting stronger demand across key markets. Management expects the second half of 2026 to outperform the first half. The company also raised the lower end of its EBITDA margin outlook to 18%, projecting a range of 18-18.5%, excluding first-quarter fuel cell business sale charges.

GNRC Price Performance, Valuation and EstimatesGNRC’s shares are up 22.4% in the past month while the Manufacturing-General Industrial industry has inched up 3.2%.

Image Source: Zacks Investment Research

Generac is trading at a forward 12-month price/earnings ratio of 18.15, lower than the sector’s multiple of 20.25.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GNRC earnings for 2026 has seen a marginal downward revision over the past 60 days.

Image Source: Zacks Investment Research

GNRC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways QuidelOrtho's strong Q2 results, diversified portfolio and cost-saving efforts support its growth outlook.QDEL's Q2 adjusted EBITDA rose 21% to $129 million, with its margin expanding to 20.5%.QuidelOrtho targets $50 million in cost savings through 2027, but weak respiratory demand remains a concern. QuidelOrtho Corporation (QDEL - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by solid second-quarter 2026 results and progress in cost-saving initiatives, is expected to contribute further. However, risks due to overdependence on the respiratory business persist.

This Zacks Rank #2 (Buy) company has lost 50.6% in the year-to-date period compared with the 21.1% decline of the industry. The S&P 500 has witnessed 13.9% growth in the said time frame.

The renowned rapid diagnostic testing solutions provider has a market capitalization of $908.6 million. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, with an average negative surprise of 94.5%.

Image Source: Zacks Investment Research

Factors Favoring QDEL’s GrowthRobust Product Portfolio: QuidelOrtho’s diversified portfolio across Labs, Immunohematology, Point of Care and Molecular Diagnostics helps cushion demand fluctuations across testing categories.

In second-quarter 2026, Labs revenues increased approximately 4% year over year to $382.9 million, Immunohematology revenues rose 1% to $134.2 million and Point of Care revenues increased 16% to $108.2 million. Excluding China, total revenues grew 6% at constant currency, with Labs revenues outside China up 9% and Immunohematology revenues outside China up 5%. Management expects the core Labs and Immunohematology businesses outside China to grow about 3% to 5% in aggregate during the second half of 2026. This recurring-revenue base provides some stability as respiratory demand and China purchasing remain uneven.

The 2026 plan assumes a typical flu season and stable testing protocols, with guidance based on a 50 to 55 million annual flu market and COVID revenue flat versus 2025. In Labs, the U.S. launch of the high-sensitivity troponin assay expands the cardiac menu, and management said that shipments have reached more than 300 U.S. customers. Internationally, the VITROS 450 rollout is targeted to lower-volume labs, and management expects placements to support mid-single-digit Labs growth over time.

Progress on Cost-Saving Initiatives:QuidelOrtho continues to focus on restructuring and productivity initiatives to strengthen its cost structure and support investments in higher-return opportunities. In the second quarter of 2026, adjusted EBITDA increased 21% year over year to $129 million, while adjusted EBITDA margin expanded to 20.5%, despite a 130-basis-point decline in adjusted gross margin to 44.4%. Adjusted operating expenses rose 2% to $219 million, but operating expenses as a percentage of revenues improved 40 basis points, reflecting ongoing cost-control efforts. The company now expects its full-year 2026 adjusted EBITDA margin to range from 21% to 22%.

Under its Optimization Plan, QuidelOrtho continues to pursue facility consolidation, procurement savings and distribution rationalization, targeting approximately $50 million in net cost savings through 2027. The company expects cumulative pre-tax restructuring charges of about $100 million through 2027, of which $28.1 million had been incurred to date. The company substantially completed the wind-down of its U.S. donor screening business by June 28, 2026. Additionally, management is evaluating working-capital efficiency, returns on instrument investments and capital spending to improve cash conversion and reduce leverage.

Solid Q2 Results: QuidelOrtho ended the second quarter of 2026 on a strong note, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company benefited from solid growth in its Labs and Point of Care businesses, while strength across North America, JPAC and Latin America was encouraging. Adjusted EBITDA rose year over year, and the corresponding margin expanded, reflecting productivity initiatives and disciplined expense management.

Factors That May Offset QDEL’s GainsOverdependence on Respiratory Segment:  QuidelOrtho continues to face headwinds from subdued respiratory testing demand, with respiratory products accounting for 9% of total revenues in the first six months of 2026, down from 13% in the prior-year period, amid weaker flu and COVID-19 demand. Although second-quarter 2026 Point of Care revenues increased 16% year over year, management noted that respiratory positivity rates remained markedly below 2025 levels.

The company has also adopted a more cautious outlook for the 2026-2027 respiratory season, citing significantly lower U.S. positivity rates than the previous year and Southern Hemisphere trends that suggest a potentially later or milder season. Accordingly, QuidelOrtho now assumes that second-half respiratory demand will remain closer to the lower end of historical seasonal levels rather than its previous average-season planning baseline. While this conservative approach reduces forecasting risk, it also tempers expectations for an earnings recovery from a seasonal rebound, leaving near-term performance vulnerable to fluctuations in flu activity and associated testing volumes.

Estimate TrendQuidelOrtho is witnessing a stable estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings has remained stable at 75 cents per share.

The Zacks Consensus Estimate for the company’s third-quarter 2026 revenues is pegged at $616 million, indicating an 11.9% decline from the year-ago quarter’s reported number.

Other Key PicksSome other top-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .

OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.

Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.

MMSI has an estimated long-term earnings growth rate of 10.4%. MMSI’s earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.

Copeland Capital Management LLC lifted its stake in FirstCash Holdings, Inc. (NASDAQ:FCFS – Free Report) by 179.3% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 276,429 shares of the company’s stock after purchasing an additional 177,470 shares during the period. FirstCash accounts for approximately 1.3% of Copeland Capital Management LLC’s holdings, making the stock its 24th largest holding. Copeland Capital Management LLC owned about 0.64% of FirstCash worth $58,390,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in the stock. Avior Wealth Management LLC increased its stake in shares of FirstCash by 45.1% in the 3rd quarter. Avior Wealth Management LLC now owns 1,415 shares of the company’s stock valued at $299,000 after acquiring an additional 440 shares during the last quarter. GAMMA Investing LLC boosted its stake in FirstCash by 6.7% during the 3rd quarter. GAMMA Investing LLC now owns 3,392 shares of the company’s stock worth $716,000 after acquiring an additional 212 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in FirstCash by 19.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 505 shares of the company’s stock worth $107,000 after acquiring an additional 82 shares during the last quarter. Apella Capital LLC boosted its stake in FirstCash by 11.2% during the 3rd quarter. Apella Capital LLC now owns 1,261 shares of the company’s stock worth $264,000 after acquiring an additional 127 shares during the last quarter. Finally, Eastern Bank grew its holdings in FirstCash by 38.3% during the third quarter. Eastern Bank now owns 1,985 shares of the company’s stock valued at $419,000 after purchasing an additional 550 shares during the period. 80.30% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling In other news, insider Howard Hambleton sold 2,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $212.98, for a total value of $425,960.00. Following the completion of the sale, the insider owned 30,406 shares of the company’s stock, valued at approximately $6,475,869.88. This represents a 6.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Graves sold 3,750 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $221.20, for a total transaction of $829,500.00. Following the completion of the transaction, the director directly owned 11,929 shares of the company’s stock, valued at $2,638,694.80. This represents a 23.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 14,098 shares of company stock worth $3,051,281. 2.86% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In Several equities research analysts have commented on FCFS shares. Wall Street Zen downgraded shares of FirstCash from a “buy” rating to a “hold” rating in a research note on Saturday. Zacks Research lowered shares of FirstCash from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. TD Cowen lifted their price target on shares of FirstCash from $240.00 to $242.00 and gave the stock a “buy” rating in a research report on Tuesday, October 6th. Loop Capital raised shares of FirstCash from a “hold” rating to a “buy” rating and set a $255.00 price target for the company in a report on Monday, August 10th. Finally, Stephens reissued an “overweight” rating and issued a $250.00 price target on shares of FirstCash in a report on Thursday, October 1st. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $249.75. Read Our Latest Research Report on FCFS

FirstCash Price Performance NASDAQ FCFS opened at $218.83 on Wednesday. The firm’s 50 day moving average is $216.88 and its 200-day moving average is $215.41. The company has a quick ratio of 3.51, a current ratio of 4.89 and a debt-to-equity ratio of 1.01. The company has a market capitalization of $9.49 billion, a PE ratio of 24.98 and a beta of 0.55. FirstCash Holdings, Inc. has a 12-month low of $146.77 and a 12-month high of $238.93.

FirstCash (NASDAQ:FCFS – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The company reported $2.50 EPS for the quarter, topping the consensus estimate of $2.39 by $0.11. The firm had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.03 billion. FirstCash had a net margin of 9.42% and a return on equity of 19.65%. The company’s revenue for the quarter was up 29.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.34 EPS. Equities research analysts anticipate that FirstCash Holdings, Inc. will post 11.59 earnings per share for the current fiscal year.

FirstCash Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were issued a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, August 14th. FirstCash’s dividend payout ratio is presently 19.18%.

FirstCash Company Profile (Free Report)

FirstCash Holdings, Inc operates pawn stores and related consumer financial services businesses in the United States and Latin America. Its pawn stores provide collateral-based loans to consumers, while also buying and selling secondhand merchandise such as jewelry, electronics, tools, sporting goods and other personal property.

The company serves customers through pawn locations in the United States and Mexico, as well as selected markets in Central and South America. Its operations are designed to provide short-term, non-recourse credit secured by personal property, along with retail opportunities for value-conscious consumers.

See Also Five stocks we like better than FirstCash A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity? Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs Want to see what other hedge funds are holding FCFS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for FirstCash Holdings, Inc. (NASDAQ:FCFS – Free Report).

Receive News & Ratings for FirstCash Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FirstCash and related companies with MarketBeat.com's FREE daily email newsletter.

Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) is using Super Micro Computer Inc (NASDAQ:SMCI) servers built around Nvidia’s latest Blackwell chips to sell AI computing capacity to enterprise customers, according to a Supermicro case study. 

The company owns and operates the infrastructure behind its NeoCloudz platform, from power generation and substations to Tier III data centers. NeoCloudz rents GPU capacity on dedicated bare-metal servers, with no virtualization layer and no sharing of hardware among customers. The servers can be hosted at a Digi Power X facility or installed at a customer’s site. 

Digi Power X deployed Supermicro systems with Nvidia B200 and B300 GPUs, liquid cooling and Supermicro management software, the case study highlighted.  

Supermicro said it wanted hardware that could handle both large-scale AI training and real-time inference. 

The company said its ownership of power assets, including substations and on-site generation, sets it apart from traditional cloud providers. It said GPU rental rates reflect its actual power costs rather than the margins charged by those providers. It also said liquid-cooled, high-density racks fit more computing into less floor space, which lowers the cost per GPU-hour passed on to customers. As a result, Digi Power X said, it can offer Blackwell compute at rates traditional providers can’t match. 

Scalability was another priority. Digi Power X said it aims to add capacity in weeks rather than years, without large upfront capital outlays at each stage of growth. 

For orchestration and billing, the company integrated three Supermicro software products: SuperCloud Composer, SuperCloud Developer Experience and SuperCloud Director. They give customers visibility into their workloads and automated, metered billing. 

The data center environment includes high-density GPU rack rows with per-cabinet power monitoring, hot-aisle containment, expansion-ready room layouts and rack-level environmental sensing. 

“DigiPowerX was built on the conviction that the AI infrastructure market needed a fundamentally different model — one where the operator controls the full stack, from power to compute, and passes those structural advantages directly to customers,” said Alec Amar, president of Digi Power X. 

“Supermicro has been a critical partner in executing that vision, giving us access to the latest NVIDIA Blackwell hardware and the software tooling to manage it at scale. The result is a platform we are proud to be already running in production for enterprise AI customers today.” 

The platform is already running in production for enterprise customers, the case study said. 

No Investment Advice

Proactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) and this website (the Site) on the terms set out in this disclaimer, together with all other terms and conditions, disclaimers and other notices displayed elsewhere on this Site.

It is important for you to know that:

(a) none of the Content is, or is intended to be, general or personal advice

(b) the principal purpose of the Content is to provide factual information only and to comment on news;

(c) the Content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including in respect of any particular security, portfolio of securities, transaction or investment strategy, and must not be relied upon by you as such;

(d) in providing you with the Content, we have not considered your objectives, financial situation or needs; and

(e) you should make your own enquiries and obtain your own independent advice prior to making any financial decisions.

The Content contains data (including but not limited to prices, statistics and calculated information) obtained from a variety of third party sources (Third Party Data). The Company does not make any representation or warranty that any of the Content, including the Third Party Data, will be reliable, accurate or complete. The Company disclaims all responsibility and liability arising in any way from any errors or omissions in the Content, including the Third Party Data, including any loss you may incur in connection with any action or decision made by you in reliance upon the Content or Third Party Data.

In certain circumstances the Company, its related bodies corporate, or their affiliates, may have received, or be entitled to receive, financial or other consideration in connection with providing information about certain entities on the Site, which may include the above Content.

The market expects First American Financial (FAF - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 21. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis financial services company is expected to post quarterly earnings of $1.85 per share in its upcoming report, which represents a year-over-year change of +8.8%.

Revenues are expected to be $2.13 billion, up 7.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.37% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for First American Financial?For First American Financial, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that First American Financial will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that First American Financial would post earnings of $1.8 per share when it actually produced earnings of $2.08, delivering a surprise of +15.56%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

First American Financial doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Insurance - Property and Casualty industry, Chubb (CB - Free Report) , is soon expected to post earnings of $6.42 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -14.3%. Revenues for the quarter are expected to be $16.72 billion, up 3.6% from the year-ago quarter.

The consensus EPS estimate for Chubb has been revised 0.1% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.10%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Chubb will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

The market expects Rollins (ROL - Free Report) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis operator of Orkin and other pest and termine control services is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents no change from the year-ago quarter.

Revenues are expected to be $1.13 billion, up 9.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.72% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Rollins?For Rollins, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.45%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Rollins will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Rollins would post earnings of $0.34 per share when it actually produced earnings of $0.32, delivering a surprise of -5.88%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Rollins doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wall Street analysts expect RLI Corp. (RLI - Free Report) to post quarterly earnings of $0.58 per share in its upcoming report, which indicates a year-over-year decline of 30.1%. Revenues are expected to be $466.64 million, up 3.9% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain RLI Corp. metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Net premiums earned' will reach $421.80 million. The estimate indicates a change of +3.5% from the prior-year quarter.

The consensus estimate for 'Net investment income' stands at $46.09 million. The estimate points to a change of +11.7% from the year-ago quarter.

It is projected by analysts that the 'Net premiums earned- Property' will reach $119.80 million. The estimate suggests a change of -5.4% year over year.

The collective assessment of analysts points to an estimated 'Net premiums earned- Surety' of $36.10 million. The estimate points to a change of -3.7% from the year-ago quarter.

Analysts predict that the 'Net operating expenses - Total' will reach 39.4%. Compared to the present estimate, the company reported 39.0% in the same quarter last year.

Analysts' assessment points toward 'Net loss & settlement expenses - Total' reaching 53.3%. Compared to the present estimate, the company reported 46.1% in the same quarter last year.

Analysts forecast 'Underwriting income (loss) - Total' to reach 92.7%. Compared to the present estimate, the company reported 85.1% in the same quarter last year.

The average prediction of analysts places 'Net operating expenses - Casualty' at 36.7%. The estimate compares to the year-ago value of 36.2%.

Based on the collective assessment of analysts, 'Net operating expenses - Property' should arrive at 34.9%. Compared to the present estimate, the company reported 34.3% in the same quarter last year.

Analysts expect 'Underwriting income (loss) - Casualty' to come in at 100.4%. Compared to the current estimate, the company reported 98.2% in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Underwriting income (loss) - Property' will likely reach 76.9%. Compared to the present estimate, the company reported 60.2% in the same quarter last year.

According to the collective judgment of analysts, 'Underwriting income (loss) - Surety' should come in at 87.6%. Compared to the present estimate, the company reported 85.0% in the same quarter last year.

View all Key Company Metrics for RLI Corp. here>>>

Over the past month, shares of RLI Corp. have returned -7% versus the Zacks S&P 500 composite's +2.1% change. Currently, RLI carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways KDP will split into Beverage Co. and Global Coffee Co. in early 2027, creating two focused businesses.KDP targets $2.5 billion in 2026 free cash flow and expects leverage to decline to 4.1 times by year-end.KDP's beverage sales rose 10% in Q2, while U.S. Coffee profit fell 24.7% amid rising costs and softer demand. Keurig Dr Pepper (KDP - Free Report) is progressing toward its planned separation into two independent companies, Beverage Co. and Global Coffee Co., in early 2027. The move follows the completion of its JDE Peet's acquisition in April 2026 and is intended to create two focused businesses with distinct operating strategies and growth opportunities. Management indicated that preparations remain on track, with significant progress in integration, organizational restructuring and separation readiness. The proposed split could allow each company to sharpen its strategic priorities, streamline operations and pursue opportunities aligned with its respective markets.

KDP has already achieved several milestones supporting the planned separation. The company established an interim operating structure with dedicated leadership and accountability across its beverage and coffee businesses. It has largely finalized post-separation organizational structures and made considerable progress in IT infrastructure and financial reporting readiness. Meanwhile, the integration of Keurig and Peet's U.S. operations has enabled a unified sales force and single invoicing system.

Financial flexibility remains another important factor in determining whether the split can create long-term value. KDP generated $714 million in free cash flow during the second quarter of 2026 and continues to target approximately $2.5 billion for the full year. Its pro forma management leverage declined to 4.4 times at quarter-end, with management expecting a further reduction to approximately 4.1 times by year-end. KDP is prioritizing debt repayment while maintaining investments and its current dividend. Management expects both businesses to deleverage quickly following the separation, potentially creating greater flexibility for future capital deployment.

The planned separation could also help KDP capitalize on differing growth dynamics across its beverage and coffee operations. U.S. Refreshment Beverages delivered 10% net sales growth and an 11.9% increase in operating income in the second quarter, supported by strength in energy drinks and carbonated soft drinks. Conversely, U.S. Coffee faced a 24.7% operating income decline amid elevated input costs and softer category demand. The JDE Peet's integration also presents a $400 million cost-synergy opportunity for the future coffee business. While execution risks, debt reduction and coffee-market volatility remain key considerations, successful integration and separation could position both standalone companies for more focused growth and improved long-term value creation.

Keurig Dr Pepper’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 7.9% in the past three months, outperforming the industry and the broader Consumer Staples sector, which have risen 3.1% and 0.4%, respectively.

KDP Stock's Past Three-Month Performance
Image Source: Zacks Investment Research

Is KDP a Value Play Stock?Keurig Dr Pepper currently trades at a forward 12-month P/E ratio of 13.19X, lower than the industry average of 19.31X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

KDP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Stocks to ConsiderMonster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST 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 MNST’s current fiscal-year sales and earnings indicates growth of 16.9% and 12.6%, respectively, from the year-ago reported figures. MNST delivered a trailing four-quarter earnings surprise of 7.9% on average.

Chagee Holdings Limited (CHA - Free Report) offers classic espresso-based drinks, energy drinks and savory and sweet items under the all-day breakfast brand. CHA currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for CHA’s current fiscal-year sales and earnings implies growth of 14.5% and 2.8%, respectively, from the year-ago actuals. CHA delivered a trailing four-quarter negative earnings surprise of 2% on average.

The Coca-Cola Company (KO - Free Report) offers classic espresso-based drinks, energy drinks, and savory and sweet items under the all-day breakfast brand. KO currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for KO’s current fiscal-year sales and earnings implies growth of 4% and 10%, respectively, from the year-ago actuals. KO delivered a trailing four-quarter earnings surprise of 4.6% on average.

Key Takeaways Paychex stock gained 17.7% in six months, supported by AI innovation, recurring revenues and cost discipline.PAYX's AI automation and Paycor integration boost payroll efficiency, enterprise bookings and cross-selling.Paychex's Q1 fiscal 2027 revenues rose 6%, while adjusted EPS grew 10% and operating margin reached 42%.
Paychex (PAYX - Free Report) stock has gained 17.7% over the past six months compared with the industry’s 22.9% growth. The Zacks S&P 500 Composite gained 10.7% during the same period.

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

Let us delve deeper into the factors contributing to the company’s strong performance.

AI-Driven Innovation to Boost Growth & MarginsPaychex is leveraging artificial intelligence (AI) to expand its offerings, enhance service delivery and improve efficiency. Its WISE platform uses more than 50 trillion proprietary data points to streamline payroll and HR workflows. In a pilot covering more than 50,000 businesses, WISE helped prevent approximately 90% of targeted payroll errors. The company has deployed more than 2,000 AI agents and features, increasing automated payroll processing by nearly 20% from January through August 2026. New offerings such as WISE Hire and WISE Pro drive revenue growth, while greater automation supports productivity and margin expansion.

Paycor Integration Boosts PAYX Cross-Selling OpportunitiesThe Paycor acquisition has expanded Paychex's enterprise reach and cross-selling opportunities across HR, benefits and advisory solutions. Its One Paychex strategy supports broader product adoption and higher customer value. In first-quarter fiscal 2027, enterprise bookings grew at a double-digit rate, while broker referrals rose 43% year over year. The rollout of Paychex Perks to approximately 2.5 million Paycor employees further expands cross-selling potential. Continued revenue synergies, wider distribution and improving sales productivity support long-term growth.

PAYX’s Recurring Revenues & Cost Discipline Support MarginsPaychex's recurring revenue model, improving client retention and pricing power underpin its earnings growth. In first-quarter fiscal 2027, revenues rose 6% to $1.6 billion, while adjusted EPS increased 10% to $1.34. Adjusted operating margin expanded 130 basis points to 42%, aided by productivity gains and cost discipline. Management reaffirmed its fiscal 2027 revenue growth outlook of 5-6% and adjusted operating margin target of approximately 44%. Continued pricing gains, higher product penetration and AI-driven efficiencies should support sustained profitability and earnings growth.

PAYX’s Cash Generation Supports Shareholder Returns  Paychex's consistent cash generation supports dividends and disciplined capital allocation. In fiscal 2026, operating cash flow reached $2.6 billion and free cash flow totaled $2.3 billion, with $2.2 billion returned to shareholders. In first-quarter fiscal 2027, the company paid $424.1 million in dividends, while operating cash flow reached $413.5 million despite tax payment timing effects. Continued earnings growth and prudent capital deployment should sustain long-term shareholder returns.

PAYX’s Zacks Rank & Stocks to ConsiderPaychex currently carries a Zacks Rank #3 (Hold) at present. 

A couple of better-ranked stocks in the broader Computer and Technology sector are Cisco Systems, Inc. (CSCO - Free Report) and CoStar Group, Inc. (CSGP - Free Report) .

Cisco Systems carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 10.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CSCO beat earnings estimates in each of the trailing four quarters, delivering an earnings surprise of 2.6%, on average.

CoStar Group also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 36.6%.

CSGP beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 21.2%.

The upcoming report from Wintrust Financial (WTFC - Free Report) is expected to reveal quarterly earnings of $3.29 per share, indicating an increase of 7.5% compared to the year-ago period. Analysts forecast revenues of $754.32 million, representing an increase of 8.1% year over year.

The current level reflects an upward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Wintrust metrics that are commonly monitored and projected by Wall Street analysts.

Analysts expect 'Efficiency Ratio' to come in at 53.7%. Compared to the current estimate, the company reported 54.7% in the same quarter of the previous year.

The consensus estimate for 'Net Interest Margin' stands at 3.5%. The estimate compares to the year-ago value of 3.5%.

Analysts predict that the 'Average balance - Total earning assets' will reach $70.35 billion. The estimate compares to the year-ago value of $64.64 billion.

The average prediction of analysts places 'Net interest income - FTE' at $620.72 million. Compared to the present estimate, the company reported $569.84 million in the same quarter last year.

Analysts' assessment points toward 'Total Non-Interest Income' reaching $135.94 million. The estimate is in contrast to the year-ago figure of $130.83 million.

Based on the collective assessment of analysts, 'Wealth management' should arrive at $40.24 million. The estimate is in contrast to the year-ago figure of $37.19 million.

The combined assessment of analysts suggests that 'Fees from covered call options' will likely reach $5.00 million. The estimate compares to the year-ago value of $5.62 million.

According to the collective judgment of analysts, 'Other Non-Interest Income' should come in at $23.05 million. Compared to the current estimate, the company reported $25.13 million in the same quarter of the previous year.

Analysts forecast 'Service charges on deposit accounts' to reach $21.33 million. Compared to the present estimate, the company reported $19.83 million in the same quarter last year.

It is projected by analysts that the 'Mortgage banking' will reach $25.75 million. Compared to the current estimate, the company reported $24.45 million in the same quarter of the previous year.

The consensus among analysts is that 'Operating lease income, net' will reach $19.05 million. The estimate is in contrast to the year-ago figure of $15.47 million.

The collective assessment of analysts points to an estimated 'Net Interest Income' of $614.51 million. The estimate compares to the year-ago value of $567.01 million.

View all Key Company Metrics for Wintrust here>>>

Wintrust shares have witnessed a change of -5.7% in the past month, in contrast to the Zacks S&P 500 composite's +2.1% move. With a Zacks Rank #3 (Hold), WTFC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

B. Riley Wealth Advisors Inc. grew its position in Arista Networks, Inc. (NYSE:ANET – Free Report) by 436.1% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 29,588 shares of the technology company’s stock after purchasing an additional 24,069 shares during the period. B. Riley Wealth Advisors Inc.’s holdings in Arista Networks were worth $6,024,000 at the end of the most recent quarter.

Several other institutional investors have also recently modified their holdings of the company. State Street Corp raised its holdings in shares of Arista Networks by 159.4% during the second quarter. State Street Corp now owns 121,303,125 shares of the technology company’s stock worth $20,606,975,000 after purchasing an additional 74,541,134 shares during the last quarter. Jupiter Topco LLC purchased a new stake in Arista Networks in the second quarter valued at $1,101,860,000. Envestnet Asset Management Inc. boosted its holdings in Arista Networks by 199.0% in the second quarter. Envestnet Asset Management Inc. now owns 9,630,196 shares of the technology company’s stock valued at $1,635,978,000 after purchasing an additional 6,409,612 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in Arista Networks during the 2nd quarter worth about $537,736,000. Finally, Massachusetts Financial Services Co. MA grew its position in Arista Networks by 34.6% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 9,725,196 shares of the technology company’s stock worth $1,712,788,000 after purchasing an additional 2,497,275 shares during the period. 82.47% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets
Several research firms recently commented on ANET. Needham & Company LLC reaffirmed a “buy” rating and set a $260.00 target price (up from $200.00) on shares of Arista Networks in a report on Wednesday, August 5th. TD Cowen lifted their price target on Arista Networks from $210.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft initiated coverage on Arista Networks in a report on Monday, August 31st. They issued a “buy” rating and a $220.00 price target for the company. Citigroup restated a “buy” rating and issued a $248.00 price objective (up from $215.00) on shares of Arista Networks in a research report on Thursday, October 8th. Finally, Jefferies Financial Group set a $250.00 price objective on Arista Networks in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $235.45.

Get Our Latest Analysis on ANET
Insider Buying and Selling
In related news, CFO Chantelle Breithaupt sold 1,224 shares of Arista Networks stock in a transaction dated Tuesday, October 6th. The stock was sold at an average price of $215.00, for a total value of $263,160.00. Following the sale, the chief financial officer directly owned 68,697 shares in the company, valued at approximately $14,769,855. The trade was a 1.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jayshree Ullal sold 130,553 shares of the stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $217.10, for a total value of $28,343,056.30. Following the transaction, the chief executive officer directly owned 4,774,691 shares of the company’s stock, valued at $1,036,585,416.10. The trade was a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,627,449 shares of company stock worth $740,784,723 in the last quarter. 2.70% of the stock is owned by insiders.

Key Stories Impacting Arista Networks
Here are the key news stories impacting Arista Networks this week:

Positive Sentiment: Arista introduced an open Ethernet rack-scale portfolio designed to connect accelerators across liquid-cooled racks for large AI workloads. The launch strengthens its positioning in high-density AI infrastructure and could expand its addressable market. Arista Networks Stock Dropped, What Is Behind the Fresh Attention?
Positive Sentiment: Erste Group Bank raised its Arista Networks FY2026 EPS estimate to $3.79 from $3.78 and its FY2027 estimate to $4.74 from $4.73, while maintaining a Buy rating. The increases are modest but reinforce expectations for continued earnings growth.
Positive Sentiment: Arista’s revenue outlook was reportedly raised for the third time this year, while non-cancellable purchase commitments increased 2.7 times to $9.7 billion, suggesting strong customer demand and future visibility. Arista Networks Prospects and Earnings

Arista Networks Price Performance
Shares of ANET stock opened at $204.34 on Wednesday. Arista Networks, Inc. has a 1-year low of $114.52 and a 1-year high of $217.41. The company has a market cap of $257.72 billion, a price-to-earnings ratio of 64.46, a PEG ratio of 2.45 and a beta of 1.60. The stock has a 50 day simple moving average of $198.89 and a 200-day simple moving average of $173.36.

Arista Networks (NYSE:ANET – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter last year, the company earned $0.73 EPS. The firm’s revenue for the quarter was up 37.7% compared to the same quarter last year. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Analysts anticipate that Arista Networks, Inc. will post 3.79 earnings per share for the current fiscal year.

Arista Networks Profile
(Free Report)

Arista Networks, Inc develops and sells cloud networking solutions for data centers, campus environments and high-performance computing applications. Its products include Ethernet switches, routers, wireless access points and related networking equipment designed to support cloud computing, artificial intelligence, enterprise and service-provider networks.

The company’s software portfolio includes Arista EOS, its network operating system, and CloudVision, a platform that helps customers manage, automate and monitor network infrastructure.

Featured Articles

Five stocks we like better than Arista Networks
A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be?
Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity?
Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway
Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs

Want to see what other hedge funds are holding ANET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Arista Networks, Inc. (NYSE:ANET – Free Report).

Receive News & Ratings for Arista Networks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Arista Networks and related companies with MarketBeat.com's FREE daily email newsletter.

Graco Inc. (GGG - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +12.3%.

Revenues are expected to be $589.82 million, up 8.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.98% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Graco?For Graco, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.68%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Graco will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Graco would post earnings of $0.81 per share when it actually produced earnings of $0.91, delivering a surprise of +12.35%.

Over the last four quarters, the company has beaten consensus EPS estimates just once.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Graco doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Credo Technology just posted triple-digit revenue growth for the eighth quarter in a row, yet the stock sits more than 30% below its 52-week high. Whether that gap is a buying opportunity or a warning sign depends on two product…

Our 24/7 Wall St. price target for Credo Technology (NASDAQ:CRDO | CRDO Price Prediction) is $260.86 over the next 12 months. That points to meaningful upside from today’s price, and our model rates the stock a buy.

24/7 Wall St. Price Target Summary Metric Value Current Price $204.22 Price Target from 24/7 Wall St. $260.86 Upside 27.7% Recommendation BUY Confidence Level 90% Shares were down 5.69% by noon Monday, and that pullback widens the gap to our target. Our confidence is high because Credo continues beating estimates and guiding higher.

Doubling from here would mean reaching $408.44. Getting there by 2027 would take our bull scenario and then some. Our model’s five-year bull path does cross that level by October 2028.

A Volatile Rally Built on Triple-Digit Growth Credo is up 41.93% year to date and 21.62% over the past month. It has also slipped 6.6% in the past week. The stock sits 33.8% below its 52-week high of $308.67 and 136.1% above its low of $86.48.

In fiscal Q1 2027, revenue rose 114.73% to $479 million, beating the $470.38 million consensus. Non-GAAP EPS came in at $1.20 against estimates of $1.1651, which makes eight consecutive beats. Management guided Q2 revenue to $525 million to $535 million and expects fiscal 2027 growth of more than 85%.

Why Bulls See $335 and Beyond The bull case reaches $335.60, or 64.3% upside. Optics is the biggest driver. Management expects optical revenue above $600 million in fiscal 2027, with ZeroFlap optics, silicon photonics chips and optical DSPs each exceeding $100 million. Active LED cables (ALCs) and OmniConnect memory products are due to start contributing in fiscal 2028.

Credo says OmniConnect could add “thousands of dollars of Credo content per GPU”. Analysts are firmly on board, with 5 Strong Buy ratings, 14 Buy ratings and a consensus target of $279.09.

Concentration and Margin Risks to Keep an Eye On Our bear case comes out at $205.95, about where the stock trades now. Customer concentration is the biggest risk. Credo’s largest customer accounted for 33% of Q1 revenue, and the second-largest added 28%.

GAAP gross margin go down to 64.5% from 68.2%, and share-based compensation reached $87.98 million. Part of that margin fall came from amortizing intangible assets tied to an acquisition, a non-cash accounting charge. Non-GAAP gross margin held at 68%.

Credo Grows Faster Than Marvell and Costs Less Than Astera Marvell Technology (NASDAQ:MRVL) sells optics and connectivity products into the same AI data center buildout. Its revenue rose 36.55% last quarter, with a non-GAAP gross margin of 58.9%. Credo rose faster and earned higher margins, which supports a premium valuation.

Astera Labs (NASDAQ:ALAB) is the closest match on growth, with revenue up 104.5%. Shares are valued at about 271x trailing earnings. Credo trades at about 30x forward earnings, so our target looks reasonable, and arguably conservative, by comparison.

Company Latest Revenue Growth Market Cap Credo 114.73% $38.38B Marvell 36.55% $233.8B Astera Labs 104.5% $57.5B Credo Earns a Buy Rating at $204 The 24/7 Wall St. price target of $260.86 carries a buy rating and 90% confidence. Credo matches fast growth with a modest forward multiple.

The bull case improves if the optical ramp lands in the second half of fiscal 2027. The outlook weakens if one of Credo’s largest customers cuts orders.

Year Price Target from 24/7 Wall St. 2026 $220.00 2027 $261.89 2028 $296.25 2029 $327.60 2030 $342.10 These figures assume Credo continues executing its current strategy. The biggest key factors are how fast ALC and OmniConnect sales ramp in either direction, and any slowdown in AI infrastructure spending.

Contact [email protected] for any questions or corrections.

SummaryCencora stands to benefit from AI-driven increases in prescription volumes as regulatory pilots expand automated prescribing.COR’s operational leverage and AI-enabled efficiency improvements have driven adjusted operating income up 17% YoY, outpacing 4.9% sales growth.Trading at a forward GAAP P/E of 17.7x—about 25% below the sector median—COR merits a 12.5% re-rating, targeting $365–$366 per share.Risks include reimbursement policy changes and regulatory delays, but COR’s asset-heavy distribution model is better positioned than vertically integrated telehealth providers.Making a parallel with AI disruption in the IT field helps to gain insights into how innovation could impact how people gain access to medication. SeventyFour/iStock via Getty Images

A recent development in the use of AI for issuing medical prescriptions in Utah has the potential to drive higher medication volumes, and this thesis argues that distributor Cencora, Inc. (COR), whose shares have

8.73K Followers

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.

This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

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.

Wall Street expects a year-over-year increase in earnings on higher revenues when Cathay General (CATY - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis holding company for Cathay Bank is expected to post quarterly earnings of $1.44 per share in its upcoming report, which represents a year-over-year change of +27.4%.

Revenues are expected to be $228.21 million, up 8.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 13.06% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

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

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Cathay?For Cathay, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.54%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Cathay will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Cathay would post earnings of $1.33 per share when it actually produced earnings of $1.37, delivering a surprise of +3.01%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Cathay appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Banks - West industry, RBB (RBB - Free Report) , is soon expected to post earnings of $0.57 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -3.4%. This quarter's revenue is expected to be $34.07 million, up 4.6% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for RBB has been revised 0.3% down to the current level. Nevertheless, the company now has an Earnings ESP of -6.61%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that RBB will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Wall Street analysts forecast that F.N.B. (FNB - Free Report) will report quarterly earnings of $0.43 per share in its upcoming release, pointing to a year-over-year increase of 4.9%. It is anticipated that revenues will amount to $475.89 million, exhibiting an increase of 4% compared to the year-ago quarter.

Over the last 30 days, there has been an upward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific F.N.B. metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 53.2%. Compared to the current estimate, the company reported 52.4% in the same quarter of the previous year.

The consensus among analysts is that 'Net Interest Margin' will reach 3.3%. Compared to the present estimate, the company reported 3.3% in the same quarter last year.

The consensus estimate for 'Average Balance - Total interest earning assets' stands at $46.22 billion. The estimate is in contrast to the year-ago figure of $44.48 billion.

Based on the collective assessment of analysts, 'Total Non-Performing Loans' should arrive at $111.31 million. The estimate compares to the year-ago value of $125.00 million.

It is projected by analysts that the 'Total Non-Performing Assets' will reach $111.46 million. Compared to the present estimate, the company reported $128.00 million in the same quarter last year.

The average prediction of analysts places 'Total Non-Interest Income' at $96.94 million. The estimate compares to the year-ago value of $98.17 million.

Analysts expect 'Insurance commissions and fees' to come in at $5.12 million. The estimate is in contrast to the year-ago figure of $4.50 million.

Analysts predict that the 'Net interest income (FTE)' will reach $380.26 million. Compared to the present estimate, the company reported $362.42 million in the same quarter last year.

According to the collective judgment of analysts, 'Securities commissions and fees' should come in at $9.58 million. The estimate compares to the year-ago value of $8.87 million.

Analysts forecast 'Mortgage banking operations' to reach $6.79 million. Compared to the present estimate, the company reported $9.18 million in the same quarter last year.

Analysts' assessment points toward 'Trust services' reaching $12.63 million. Compared to the current estimate, the company reported $11.65 million in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Bank owned life insurance' will likely reach $4.46 million. Compared to the present estimate, the company reported $4.21 million in the same quarter last year.

View all Key Company Metrics for F.N.B. here>>>

Shares of F.N.B. have demonstrated returns of -6.6% over the past month compared to the Zacks S&P 500 composite's +2.1% change. With a Zacks Rank #3 (Hold), FNB is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

SoFi Technologies, Inc. (SOFI - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this company have returned -10.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Financial - Miscellaneous Services industry, to which SoFi Technologies belongs, has lost 5.4% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, SoFi Technologies is expected to post earnings of $0.17 per share, indicating a change of +54.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.

The consensus earnings estimate of $0.6 for the current fiscal year indicates a year-over-year change of +53.9%. This estimate has changed -0.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.81 indicates a change of +36.1% from what SoFi Technologies is expected to report a year ago. Over the past month, the estimate has changed +0.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SoFi Technologies.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of SoFi Technologies, the consensus sales estimate of $1.25 billion for the current quarter points to a year-over-year change of +31.1%. The $4.87 billion and $5.85 billion estimates for the current and next fiscal years indicate changes of +35.5% and +20.2%, respectively.

Last Reported Results and Surprise HistorySoFi Technologies reported revenues of $1.21 billion in the last reported quarter, representing a year-over-year change of +40.5%. EPS of $0.12 for the same period compares with $0.08 a year ago.

Compared to the Zacks Consensus Estimate of $1.11 billion, the reported revenues represent a surprise of +8.33%. The EPS surprise was +9.09%.

Over the last four quarters, SoFi Technologies surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

SoFi Technologies is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SoFi Technologies. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Rising long-term interest rates are overwhelming a fresh buy initiation from StoneX on SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) and sending SoFi stock sharply lower. SoFi stock is at $14.36, down 6% in morning trading, extending a brutal run…

Rising long-term interest rates are overwhelming a fresh buy initiation from StoneX on SoFi Technologies (NASDAQ:SOFI | SOFI Price Prediction) and sending SoFi stock sharply lower. SoFi stock is at $14.36, down 6% in morning trading, extending a brutal run that leaves it down 45% so far this year. The selloff arrives one day after the initiation, setting a cheap-stock argument against a tougher environment for lending.

Meanwhile, shares of Affirm Holdings (NASDAQ:AFRM) are at $70.99, down 9%, falling harder than SoFi stock. Additionally, shares of Robinhood Markets (NASDAQ:HOOD) are at $104.25, down 6%, tracking the slide in SoFi stock closely.

Fintech as a group is holding up better, with the ARK Blockchain & Fintech Innovation ETF (CBOE:ARKF) down 2%. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.7%. That gap shows the selloff landing hardest on individual lenders and brokers while the broad market gives up far less ground.

StoneX Bull Case Meets a Hotter Inflation Report
StoneX initiated coverage of SoFi with a buy rating on October 13, arguing that the valuation had become attractive against stronger operating performance. September inflation came in above forecasts a day later, and long-term interest rates climbed in response. Higher long-term rates cut into what a consumer lender earns on the spread between its funding costs and its loan yields, and that gap drives a large share of SoFi’s profit.

That sequence puts SoFi’s valuation case and its earnings case in direct tension. The initiation leans on a share price that had fallen well behind the company’s operating gains, while higher rates threaten the lending margin that produces them, and a cheaper multiple on SoFi stock offers less comfort when the earnings it’s applied to could come under pressure.

Deposits Set SoFi Apart From Affirm and Robinhood
SoFi runs a digital bank that originates personal, student and home loans and holds customer deposits, giving it cheaper and steadier funding than wholesale markets. What remains open is whether those deposit costs stay low enough to protect its lending margin if long-term rates hold at this level. On October 8, SoFi Tech Solutions, the company’s software-licensing arm, announced a partnership with Orbi to launch a crypto-linked card in Mexico, its first such program in Latin America.

Affirm, by contrast, funds its installment loans in capital markets, while Robinhood’s revenue comes from trading activity. Customer deposits separate SoFi from both, and that’s the piece of its model the rate debate now tests most directly.

SoFi’s Rate Test Runs Through Funding Costs
SoFi’s upside argument rests on an initiation that sees value in SoFi stock after a steep decline, paired with a bank model that can lean on deposits when outside funding gets expensive. The bear case, however, holds that higher long-term rates squeeze the gap between what SoFi pays depositors and what it collects on loans, which could weigh on the earnings that support the valuation argument. Both arguments can hold at once, which helps explain why SoFi stock is falling with a bullish call fresh on the record.

SoFi’s next move hinges on whether long-term rates hold or ease after the inflation surprise. A decline in yields could let the valuation argument confirm itself, while a further climb would test how much margin SoFi’s deposit advantage can defend, so investors should weigh that rate risk when setting their exposure.

Contact [email protected] for any questions or corrections.