Track market-moving stories before they get noisy

The price trend for Roper Technologies (ROP - Free Report) has been bearish lately and the stock has lost 9.7% over the past week. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.

The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the stock. On the fundamental side, strong agreement among Wall Street analysts in raising earnings estimates for this industrial equipment maker enhances its prospects of a trend reversal.

What is a Hammer Chart and How to Trade It?This is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Increases the Odds of a Turnaround for ROPThere has been an upward trend in earnings estimate revisions for ROP lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.

The consensus EPS estimate for the current year has increased 5.2% over the last 30 days. This means that the Wall Street analysts covering ROP are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.

If this is not enough, you should note that ROP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, a Zacks Rank of 2 for Roper Technologies is a more conclusive indication of a potential trend reversal, as the Zacks Rank has proven to be an excellent timing indicator that helps investors identify precisely when a company's prospects are beginning to improve.

PORTLAND, Ore., May 18, 2026 (GLOBE NEWSWIRE) -- Truckload spot and contract rates climbed sharply in April, but the gains came almost entirely from higher fuel costs, reported DAT Freight & Analytics, provider of the industry's leading load board and freight analytics.

The DAT Truckload Volume Index (TVI), an indicator of loads moved in April, declined month over month for van, refrigerated, and flatbed equipment types:

Van TVI: 251, down 3% from March, up 2% year over yearReefer TVI: 183, down 9% from March, up 1% year over yearFlatbed TVI: 306, down 3% from March, up 3% year over year
Modest movement in linehaul rates

Driven largely by fuel costs, national average spot truckload freight rates rose in April and were significantly higher year over year:

Van: $2.67 per mile, up 15 cents from March and 71 cents higher year over yearReefer: $3.11 per mile, up 14 cents from March and 83 cents higher year over yearFlatbed: $3.46 per mile, up 37 cents from March and 94 cents higher year over year
Linehaul rates—the portion of the spot rate that excludes fuel—moved modestly. The average van linehaul rate rose 5 cents to $1.96 per mile; reefer increased 4 cents to $2.34; and flatbed climbed 25 cents to $2.61. The flatbed increase was the only move large enough to suggest a meaningful rise in demand.

“Fuel was the story in April,” said Dean Croke, principal industry analyst at DAT. “Linehaul rates barely moved in van and reefer, and the volume of loads moved fell across the board. Small carriers continue to exit the market under sustained cost pressure. That’s not what a demand-based truckload freight recovery looks like.”

Per-mile fuel surcharges in April hit their highest monthly averages since July 2022:

Van: 71 cents, up from 61 cents in MarchReefer: 77 cents, up from 67 centsFlatbed: 85 cents, up from 73 cents
Spot-contract rate spread narrowed in April

National average contract freight rates also increased in April, although spot market rates continued to rise faster across most equipment types:

Van: $2.85 per mile, up 13 cents from MarchReefer: $3.22 per mile, up 12 centsFlatbed: $3.71 per mile, up 28 cents
Spot-to-contract spreads have compressed substantially since late 2025 and have remained in a tight range through April. The average spot van rate was 18 cents higher than the contract rate, down from 20 cents in March. The reefer spread was 11 cents, down from 13 cents, while the flatbed spread narrowed to 25 cents from 34 cents in March.

“In a typical freight upcycle, strong demand for truckload services pushes spot rates above contract rates,” said Croke. “What we’re seeing now is different. Spreads are tightening because there are simply fewer trucks available relative to demand, while much of the recent rate increase is being absorbed by fuel costs instead of improving carrier margins.”

For previous TVI reports, visit: https://www.dat.com/news-releases

About the Truckload Volume Index
The DAT Truckload Volume Index measures monthly changes in loads with a pickup date during that month. A baseline of 100 equals the number of loads moved in January 2015, based on data from DAT RateView, part of the DAT iQ freight analytics platform, which tracks rates paid on actual shipments. Benchmark spot rates reflect invoice data for hauls of 250 miles or more, offering a consistent view of truckload demand and spot rate trends across the United States and Canada.

About DAT Freight & Analytics
DAT Freight & Analytics operates the DAT One truckload freight marketplace; Convoy Platform, an automated freight-matching technology; DAT iQ analytics service; Trucker Tools load-visibility platform; and Outgo factoring and financial services for truckers. Shippers, transportation brokers, carriers, news organizations, and industry analysts rely on DAT for market trends and data insights, informed by nearly 700,000 daily load posts and a database exceeding $1 trillion in freight market transactions.

Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Headquartered in Portland, Oregon, DAT continues to set the standard for innovation in the trucking and logistics industry. Visit dat.com for more information.

Media contacts:

Georgia Jablon
DAT Freight & Analytics
904-305-6454; [email protected]

Stephen Petit
SiefkesPetit Communications
425-443-8976; [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fcc5b0a2-a23a-4be6-acb9-0dd57ee915af.

Spot Market Volume & Rates: Van Higher fuel costs lifted April truckload rates; freight volumes eased

Longtime company leader will oversee operational unification and advance Illumia’s AI transformation priorities

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Illumia, a leading provider of technology solutions that power payments, access, foodservice and operational experiences across higher education, healthcare, senior living and corporate environments, today announced that Laura Newell-McLaughlin has been named Chief Operating Officer.

Laura Newell-McLaughlin, a 30-plus-year leader in payments and campus commerce, steps into the COO role at Illumia to lead operational unification and embed AI across the business. illumiatech.com

Share In this role, Newell-McLaughlin will lead the next phase of Illumia’s operational unification, with responsibility for Enterprise Applications, Banking Operations, Program Management, AI Transformation, Client Support, Supply Chain, and Chennai Operations. She will focus on strengthening the systems, processes and operating capabilities that support Illumia’s product, technology and commercial teams as the company continues to scale under its unified brand.

Newell-McLaughlin will also play a central role in embedding generative AI across Illumia’s operations, helping the company increase efficiency, improve execution speed, and remove friction from internal workflows and customer-facing support processes.

“Laura has a deep understanding of our business, our customers, and the operational discipline required to serve mission-critical organizations where reliability matters every day,” said Greg Brown, CEO of Illumia. “Her leadership will be critical as we continue to build the operating backbone that enables our teams to move faster, scale with discipline, and bring practical AI into the workflows that help our people and customers succeed.”

Newell-McLaughlin brings more than 30 years of experience in payments, campus commerce, product strategy, and operational leadership. She has been part of the company’s evolution since 1993 through Academic Management Services, Sallie Mae, Higher One, Blackboard, and Transact Campus. Most recently, she served as Chief Commercial Officer, where she helped shape the company’s payments strategy, strategic partnerships, and product direction for higher education institutions.

Earlier in her career, Newell-McLaughlin held a leadership role at Sallie Mae. She is widely recognized for her expertise in payment strategy, performance, and the operational needs of complex campus environments.

Newell-McLaughlin holds a Bachelor of Arts in Communications, with a concentration in Business Management from Rhode Island College.

About Illumia

Illumia (formerly Transact + CBORD), a business unit of Roper Technologies (Nasdaq: ROP), powers the payments, access, foodservice, and credentialing systems that more than 10,000 higher education, healthcare, and senior living institutions depend on every day. Its unified platform delivers the stability, security, and reliability these environments demand — where downtime is not an option. Illumia transforms the experiences organizations deliver to their communities while modernizing how those organizations operate. For more information, visit illumiatech.com.

Roper benefits from a significant decline in Application Software valuation ratios, enabling lower-cost acquisitions in its core segments, which comprise 76.99% of 2025 revenue. Falling interest rates and stable global GDP growth are expected to sustain M&A activity, supporting ROP's inorganic growth strategy over the medium-to-long term. Roper's improving cash-to-debt position and steady cash flow from operations provide the financial strength to continue its acquisition strategy, despite recent stock price weakness.

PORTLAND, Ore., June 11, 2026 (GLOBE NEWSWIRE) -- DAT Freight & Analytics has expanded the reloads feature in the Convoy Platform app, a trucking app that helps carriers book and haul freight, giving carriers a view of available freight near the delivery stop before they book a load. With earlier visibility into backhaul options, carriers can plan beyond the first leg, factor the full trip into their bidding decision, and avoid costly empty miles.

How Reloads Work
In the Convoy Platform app, carriers will see a badge at the top of the load details indicating the number of reloads available in the delivery market.

Full information on the available reloads can be found below the facility information on the load details page. Each reload option shows the book-now rate, deadhead miles to the pickup, and pickup timing after delivery. From there, carriers book or bid directly on that freight in the Convoy app.

Know Before You Go
"Carriers want to keep moving, and every load matters. Fuel costs are up, deadheading is a waste, and eliminating empty miles is critical to running a profitable business," said Bill Driegert, EVP, Convoy Platform. "Reloads are a simple way to give carriers better information before booking so they can make better decisions and keep their trucks moving."

ExpedICE Logistics, a refrigerated carrier based in Terre Haute, Indiana, is an early adopter of the expanded reloads feature.

"Knowing what freight is available to us before we go into a market helps us evaluate each opportunity before booking,” said Amber Laughrey of ExpedICE Logistics. “Reloads help us avoid weaker markets, reduce deadhead miles, and keep the truck moving profitably.”

Carriers not on the Convoy Platform yet can download the free trucking app to book and haul broker-verified loads from a trusted free load board: convoy.com/download-app

About DAT Freight & Analytics
DAT Freight & Analytics operates the DAT One truckload freight marketplace; Convoy Platform, an automated freight-matching technology; DAT iQ analytics service; Trucker Tools load-visibility platform; and Outgo factoring and financial services for truckers. Shippers, transportation brokers, carriers, news organizations, and industry analysts rely on DAT for market trends and data insights, informed by nearly 700,000 daily load posts and a database exceeding $1 trillion in freight market transactions.

Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 500. Headquartered in Portland, Oregon, DAT continues to set the standard for innovation in the trucking and logistics industry. Visit dat.com for more information.

Media contacts:

Georgia Jablon
DAT Freight & Analytics
904-305-6454; [email protected]

Stephen Petit
SiefkesPetit Communications
425-443-8976; [email protected]

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d5a3ed8-267c-4174-b9fe-4ae3b69d4122

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, April 29: 

Comfort Systems USA, Inc. (FIX - Free Report) : This engineering services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days. 

Comfort Systems USA’s shares gained 50.6% over the last three months compared with the S&P 500’s decline of 3.7%. The company possesses a Momentum Score of A. 

Devon Energy Corporation (DVN - Free Report) : This energy company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 72.7% over the last 60 days. 

Devon Energy’s shares gained 23.7% over the last three months compared with the S&P 500’s decline of 3.7%. The company possesses a Momentum Score of A. 

West Pharmaceutical Services, Inc. (WST - Free Report) : This pharmaceutical packaging company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.1% over the last 60 days. 

West Pharmaceutical Services’ shares gained 26.4% over the past three months compared with the S&P 500’s decline of 3.7%. The company possesses a Momentum Score of A. 

You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Check out this week’s current list of Best Stocks to Buy Now.

Learn more about theMomentum score and how it is calculated here. 

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at West Pharmaceutical Services (WST - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. West Pharmaceutical Services currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for WST that show why this medical device company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For WST, shares are up 11.85% over the past week while the Zacks Medical - Dental Supplies industry is down 0.85% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.55% compares favorably with the industry's 0.78% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of West Pharmaceutical Services have risen 26.49%, and are up 36.85% in the last year. In comparison, the S&P 500 has only moved 2.58% and 30.64%, respectively.

Investors should also take note of WST's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now WST is averaging 920,573 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with WST.

Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost WST's consensus estimate, increasing from $7.94 to $8.50 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that WST is a #1 (Strong Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep West Pharmaceutical Services on your short list.

West Pharmaceutical Services maintains dominant market share in injectable drug delivery, underpinned by a wide moat and robust regulatory positioning. WST reported strong Q1 2026 results, with revenue up 21% and adjusted EPS up 46.9%, prompting a guidance raise and share price rebound. Key growth drivers include biologics market expansion, GLP-1 drug demand, and Annex 1 regulatory upgrades, supporting recurring revenue and margin strength.

Shares of West Pharmaceutical Services (WST - Free Report) have been strong performers lately, with the stock up 27% over the past month. The stock hit a new 52-week high of $328.44 in the previous session. West Pharmaceutical has gained 18.5% since the start of the year compared to the -8.2% move for the Zacks Medical sector and the -11% return for the Zacks Medical - Dental Supplies industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 23, 2026, West Pharmaceutical reported EPS of $2.13 versus consensus estimate of $1.68.

For the current fiscal year, West Pharmaceutical is expected to post earnings of $8.5 per share on $3.31 in revenues. This represents a 16.6% change in EPS on a 7.77% change in revenues. For the next fiscal year, the company is expected to earn $9.44 per share on $3.54 in revenues. This represents a year-over-year change of 10.98% and 6.84%, respectively.

Valuation MetricsWest Pharmaceutical may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

West Pharmaceutical has a Value Score of D. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 38.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 14.9X. On a trailing cash flow basis, the stock currently trades at 33.5X versus its peer group's average of 10.2X. Additionally, the stock has a PEG ratio of 2.76. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, West Pharmaceutical currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if West Pharmaceutical passes the test. Thus, it seems as though West Pharmaceutical shares could have potential in the weeks and months to come.

West Pharmaceutical Services Inc. (NYSE:WST) on Monday disclosed a material cybersecurity attack on May 7, saying an unauthorized party exfiltrated data and encrypted certain systems.

After detecting the intrusion on May 4, the company activated incident response protocols, took systems offline globally to contain the breach, notified law enforcement, and hired external cyber-forensic experts.

West Pharmaceutical Restores Core Systems As Investigation ContinuesThe investigation into the scope of the attack and impacted data remains ongoing.

The incident temporarily disrupted global operations, the company noted in an SEC filing.

The pharmaceutical packaging company said it has restored core enterprise systems, while shipping, receiving, and manufacturing activities have resumed at some sites.

Restoration work at remaining sites is still underway, and the company has not provided a timeline for full recovery.

The company said it has not yet determined the financial or operational impact of the incident.

Analyst Sees Near-Term UncertaintyWilliam Blair analyst on Tuesday wrote, "While the disclosure no doubt introduces near-term uncertainty regarding operations and the potential resulting financial implications, we view the company's initial response as swift and comprehensive."

Analyst Matt Larew further added, "However, given the limited visibility into the magnitude and lasting impact of the disruption, we look for further updates from the company, including confirmation of restoration at the remaining impacted sites and additional disclosure quantifying any financial impacts."

William Blair maintains a rating of Outperform for the stock, and that rating is predicated on West being a high-quality, franchise name that provides quality and dependable earnings and cash flow, a clear leadership competitive position, and access to attractive end-market trends without a single product or technology risk.

WST Price Action: West Pharmaceutical shares were down 2.02% at $315.77 at the time of publication on Tuesday, according to Benzinga Pro data. Over the past month, WST has gained about 25.2% versus a 8.2% rise in the S&P 500 and is up roughly 17% year-to-date compared to the index's 6.9% gain.

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CompaniesMay 15 (Reuters) - West Pharmaceutical Services (WST.N), opens new tab said on Friday its operations were steadily recovering after a cyberattack ​earlier this month disrupted manufacturing and logistics ‌globally.

The incident first detected on May 4 led the company to take systems offline and restrict access, which ​temporarily disrupted operations.

Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.

Shares of the medical equipment ​maker were up more than 1% in ⁠afternoon trading, after a roughly 7% decline ​since the incident.

Its high-value product sites, including its ​largest facility in Eschweiler, Germany, are fully operational, with standard packaging and most West Vantage sites having resumed shipments, ​the company said.

West did not disclose the ​financial impact or provide a timeline for full restoration, ‌but ⁠said the unauthorized activity had been contained and immediate risks mitigated.

Evercore ISI analyst Daniel Markowitz said he expects some impact to second-quarter results from ​the cyberattack ​but does ⁠not anticipate any hit to its full-year outlook, adding that the ​effect is likely already priced into the ​stock ⁠decline.

Markowitz added that flexible capacity could help operations catch up within the quarter, implying potential upside.

Stryker (SYK.N), opens new tab ⁠and ​Intuitive Surgical (ISRG.O), opens new tab also reported cybersecurity ​incidents in March, while Medtronic (MDT.N), opens new tab disclosed an incident in April.

Reporting by ​Siddhi Mahatole in Bengaluru; Editing by Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways West Pharmaceutical's HVP Components grew 23% organically in Q1 2026, led by GLP-1 demand.WST sees Annex 1 upgrades driving premium product adoption and about 200 bps of 2026 growth.West Pharmaceutical faces inflation risks and a $40M second-half 2026 SmartDose revenue headwind. West Pharmaceutical Services, Inc. (WST - Free Report) is well positioned for growth, backed by strong demand for HVPs, expanding GLP-1 drug programs and regulatory-driven Annex 1 conversions. However, tariff impacts, destocking in generics and execution challenges at constrained European facilities are concerning.

Shares of this Zacks Rank #1 (Strong Buy) company have gained 11% year to date compared to the industry's 9.3% decline. The S&P 500 Index has risen 8.1% in the same time frame.

West Pharmaceutical, with a market capitalization of $21.47 billion, is a leading global manufacturer, engaged in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Its earnings are anticipated to improve 13.9% over the next five years. The company delivered a trailing four-quarter average earnings surprise of 19.37%.

Image Source: Zacks Investment Research

Positive Factors Driving WST’s ProspectsHVP Components Growth Reinforcing a Premium Business Mix: West Pharma’s strongest growth driver remains its HVP Components business, which grew 23% organically in the first quarter of 2026, supported by robust demand across GLP-1 and non-GLP-1 applications.

The non-GLP-1 HVP growth accelerated into the high teens, driven by biologics, biosimilars and premiumization through Annex 1 upgrades. The segment’s strength reflects not just cyclical demand, but a structural shift toward premium injectable containment solutions, where West commands higher pricing and margins.

Management also highlighted that over two-thirds of HVP outperformance came from non-GLP-1 products, reducing investor concerns around concentration risk in obesity therapies and reinforcing a more durable long-term growth outlook.

Annex 1 Regulations Creating a Multi-Year Premiumization Tailwind: West Pharma continues to benefit from regulatory tightening around injectable drug sterility, particularly under EU Annex 1 standards, which are driving pharmaceutical customers to upgrade from standard elastomer products to higher-value HVP offerings.

Management expects Annex 1 and HVP conversion to contribute approximately 200 basis points of annual growth in 2026, with momentum accelerating as projects increase 66% year over year. Adoption is beginning to spread beyond Europe into the United States and Asia as manufacturers standardize sterility requirements globally.

Since these upgrades improve average selling prices and margins without requiring major volume increases, Annex 1 represents a high-quality, long-duration growth lever capable of structurally enhancing profitability.

GLP-1 Exposure Remains a Powerful and Expanding Demand Driver: West Pharma’s GLP-1 franchise continues to outperform, with GLP-1-related HVP revenues accounting for 10% of total company sales, supported by strong injectable demand and expanding therapeutic adoption.

Management remains confident that oral GLP-1s are complementing rather than cannibalizing the injectable market, supporting sustained elastomer demand. Additional growth drivers include broader insurance coverage, lower drug pricing, FDA decisions on compounded GLP-1s, new indications beyond diabetes and obesity, and international generic launches. This diversified demand base reduces reliance on a single product cycle and positions West Pharma as a key enabler of one of healthcare’s largest long-term therapeutic opportunities.

Operational Excellence and Capacity Unlock Improving Margins: West Pharma’s operational execution emerged as a significant differentiator in the first quarter, helping adjusted operating margins expand 350 basis points to 21.4%.

Rather than relying solely on new factory buildouts, management is increasing output through process optimization, accelerated onboarding and the transfer of best practices across manufacturing sites.

The company highlighted meaningful productivity gains in Europe that are now being replicated across facilities in the United States, enabling faster scaling of HVP demand with lower incremental capital intensity. This operational leverage not only supports near-term revenue growth but also creates additional upside for margin expansion as fixed manufacturing costs are absorbed more efficiently over time.

Key Challenges Facing WSTCommodity, Fuel and Oil Inflation Could Pressure Margins: West Pharma acknowledged growing cost pressures related to oil, logistics and commodity inflation, particularly following geopolitical disruptions in the Middle East.

While management expects only a single-digit million net impact after mitigation efforts, inflationary pressures remain a meaningful operational risk due to the petroleum-linked nature of elastomer manufacturing and logistics.

Although hedging, pricing actions and operational efficiencies provide partial offsets, sustained energy volatility could compress gross margins if costs rise faster than customer pass-through mechanisms. Given the company’s premium margin profile, even modest inflationary pressure can influence earnings expectations.

SmartDose Divestiture Creates a Second-Half Revenue Headwind: West Pharma continues to expect the midyear divestiture of SmartDose, which creates a notable second-half comparison challenge. Management highlighted an expected $40 million revenue headwind in the back half of 2026 due to the contract roll-off, contributing to a more front-half-weighted revenue profile.

Although the company expects stronger contributions from drug handling and other delivery device businesses over time, there is a timing mismatch between the SmartDose exit and replacement growth. This transition could create temporary volatility in growth rates and operating leverage during the second half of the year.

Estimate TrendWST has been witnessing a positive estimate revision for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings has moved north 8.7% to $8.60 per share, implying a gain of 18% from the prior-year reported level. The consensus mark for revenues is pegged at $3.32 billion, indicating an 8% increase from the 2025 reported level.

Other Key PicksSome other top-ranked stocks from the same medical industry are Pacific Biosciences of California (PACB - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .

Pacific Biosciences of California, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted loss per share of 12 cents, which surpassed the Zacks Consensus Estimate by 29.4%. Revenues of $37 million missed the Zacks Consensus Estimate by 9.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

PACB’s earnings are estimated to decline 12.2% in 2027, against the industry’s projected growth of 16.9%. The company has beaten earnings estimates in each of the trailing four quarters, with an average surprise of 29.76%.

Globus Medical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $1.12, which outpaced the Zacks Consensus Estimate by 21.7%. Revenues of $760 million surpassed the Zacks Consensus Estimate by 4%.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% rise. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.26%.

Biodesix, currently carrying a Zacks Rank of 2, reported a first-quarter 2026 adjusted loss per share of 81 cents, which beat the Zacks Consensus Estimate by 35.71%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.

BDSX has an estimated earnings growth rate of 36% for 2026 compared with the industry’s 13.4% rise. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.56%.

Experienced healthcare and life sciences executive to lead the Company's next phase of growth and innovation EXTON, Pa., June 1, 2026 /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, today announced that its Board of Directors has appointed Michel Lagarde to be President and Chief Executive Officer (CEO) and a member of the Company's Board of Directors starting August 31, 2026.

West Pharmaceutical Services, Inc. (WST) Presents at 46th Annual William Blair Growth Stock Conference Prepared Remarks Transcript

For the quarter ended March 2026, Atmos Energy (ATO - Free Report) reported revenue of $1.96 billion, up 0.6% over the same period last year. EPS came in at $3.47, compared to $3.03 in the year-ago quarter.

The reported revenue represents a surprise of -12.33% over the Zacks Consensus Estimate of $2.24 billion. With the consensus EPS estimate being $3.37, the EPS surprise was +3.07%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Atmos performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Operating revenues- Pipeline and Storage segment: $289.29 million versus $280.93 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.Operating revenues- Distribution segment: $1.88 billion versus $1.98 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.3% change.Operating Income- Pipeline and Storage: $198.9 million versus the two-analyst average estimate of $163.12 million.Operating Income- Distribution: $565.9 million versus the two-analyst average estimate of $557.31 million.View all Key Company Metrics for Atmos here>>>

Shares of Atmos have returned -0.8% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways ATO posted Q2 EPS of $3.47, topping estimates and rising 14.5% from last year. Atmos Energy's Q2 operating income climbed 21.6% as O&M expenses fell 16.1%. ATO reaffirmed fiscal 2026 EPS guidance of $8.40-$8.50 and raised its annual dividend 14.9%. Atmos Energy (ATO - Free Report) posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.

ATO’s RevenuesThe company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.

Highlights of ATO’s Q2 ReleaseOperation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.

Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.

Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.

ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.

Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.

The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.

ATO’s Segmental DetailsDistribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.

Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.

ATO’s Financial HighlightsAs of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.

As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.

Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.

During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.

In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.

ATO’s FY26 GuidanceAtmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.

ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.

Total net income is expected to be in the range of $1.41-$1.43 billion.

ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.

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

Upcoming Utilities ReleasesAlgonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.

PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.

Global Water Resources, Inc. (GWRS - Free Report) is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.

The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.

Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Is Atmos Energy (ATO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Atmos Energy is one of 110 individual stocks in the Utilities sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Atmos Energy is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for ATO's full-year earnings has moved 1.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, ATO has gained about 7.9% so far this year. In comparison, Utilities companies have returned an average of 5.2%. This shows that Atmos Energy is outperforming its peers so far this year.

One other Utilities stock that has outperformed the sector so far this year is American States Water (AWR - Free Report) . The stock is up 6.5% year-to-date.

For American States Water, the consensus EPS estimate for the current year has increased 6.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Atmos Energy belongs to the Utility - Gas Distribution industry, a group that includes 13 individual stocks and currently sits at #147 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so ATO is performing better in this area.

American States Water, however, belongs to the Utility - Water Supply industry. Currently, this 11-stock industry is ranked #214. The industry has moved -21.9% so far this year.

Going forward, investors interested in Utilities stocks should continue to pay close attention to Atmos Energy and American States Water as they could maintain their solid performance.

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

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

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Atmos is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

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

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

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

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

Earnings Estimate Revisions for AtmosThis natural gas utility is expected to earn $8.38 per share for the fiscal year ending September 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Atmos. Over the past three months, the Zacks Consensus Estimate for the company has increased 2.3%.

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

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

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

Atmos Energy remains a "Buy" for its stable, regulated business and credible 7%-8% long-term growth outlook. ATO benefits from Texas migration, strong customer growth, and favorable legislative changes supporting rapid cap-ex recovery. Raised FY24 EPS guidance to $8.40-$8.50, reflecting pipeline strength and high near-term visibility, with a 2.2% dividend yield and 42-year increase streak.

Atmos Energy (ATO - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 10.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for ATOThe RSI reading of 26.01 for ATO is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ATO in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 1.7% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, ATO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Cardinal Health (CAH - Free Report) . CAH is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Investors will also notice that CAH has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.76. Over the last 12 months, CAH's PEG has been as high as 1.88 and as low as 1.22, with a median of 1.49.

Finally, we should also recognize that CAH has a P/CF ratio of 15.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.38. Over the past 52 weeks, CAH's P/CF has been as high as 17.47 and as low as 12.96, with a median of 15.12.

If you're looking for another solid Medical - Dental Supplies value stock, take a look at The Cooper Companies (COO - Free Report) . COO is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Shares of The Cooper Companies currently hold a Forward P/E ratio of 15.59, and its PEG ratio is 1.67. In comparison, its industry sports average P/E and PEG ratios of 15.32 and 1.76.

Over the last 12 months, COO's P/E has been as high as 27.77, as low as 14.68, with a median of 19.67, and its PEG ratio has been as high as 2.45, as low as 1.46, with a median of 1.98.

The Cooper Companies also has a P/B ratio of 1.62 compared to its industry's price-to-book ratio of 4.56. Over the past year, its P/B ratio has been as high as 2.79, as low as 1.53, with a median of 2.02.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Cardinal Health and The Cooper Companies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAH and COO feels like a great value stock at the moment.

Cardinal Health, Inc. (CAH) Presents at Bank of America Global Healthcare Conference 2026 Transcript

CAH shares are down 9.4% YTD, but strong specialty drug growth, rising earnings estimates and a raised outlook may signal upside.

Key Takeaways Cardinal Health is expanding beyond distribution into specialty care and logistics services.CAH's Pharmaceutical & Specialty Solutions unit generated about $61B in quarterly revenues.Cardinal Health's "specialty flywheel" connects providers, manufacturers and patients. Cardinal Health (CAH - Free Report) is increasingly positioning itself as a foundational layer of the U.S. healthcare system, leveraging scale, operational reliability and integrated capabilities to deepen its role across pharmaceutical distribution, specialty care and advanced logistics. Management’s commentary in the third quarter of fiscal 2026 suggests the company is evolving beyond a distributor into a critical healthcare infrastructure partner.

At the center of this positioning is Cardinal Health’s vast distribution network, which supports tens of thousands of healthcare locations across the United States, including hospitals, pharmacies, physician offices and specialty clinics. The company’s Pharmaceutical & Specialty Solutions segment alone contributed approximately $61 billion to quarterly revenues, underscoring the scale and centrality of its operations to healthcare delivery.

Cardinal Health’s influence increasingly spans multiple layers of the care continuum. Beyond traditional pharmaceutical distribution, the company has expanded into specialty drug distribution, physician-facing MSO platforms, biopharma services, logistics and nuclear medicine.

Specialty Alliance networks in oncology, rheumatology and urology deepen provider relationships, while Sonexus hub services and 3PL capabilities support manufacturer commercialization and patient access. Nuclear and Precision Health Solutions further broadens the company’s role in high-value diagnostic and treatment pathways.

Operational reliability has also become a differentiator. Management has emphasized Cardinal Health’s ability to maintain service continuity during periods of industry-wide supply-chain disruption and drug shortages. The majority of its manufacturing facilities are based in the United States, reinforcing its importance as a trusted intermediary within healthcare. This reliability strengthens its relationship with both providers and manufacturers, especially as supply chains become more complex.

Cardinal Health is driving greater integration across healthcare supply chains. Its “specialty flywheel” strategy increasingly connects manufacturers, providers and patients through a unified ecosystem of distribution, access and support services. This integration enhances visibility, improves efficiency and creates cross-segment growth opportunities.

CAH appears to be transitioning from a logistics provider to a strategic backbone of U.S. healthcare infrastructure, with scale and ecosystem integration reinforcing long-term relevance.

Peer UpdatesHims & Hers Health (HIMS - Free Report) is increasingly reshaping U.S. healthcare infrastructure by building a consumer-first, technology-enabled care platform that bypasses many traditional friction points in care delivery. Hims & Hers is expanding access to treatments across weight loss, testosterone, menopause and labs through an integrated ecosystem of providers, pharmacies and AI-enabled tools.

Management emphasized that Hims & Hers now supports nearly 2.6 million subscribers and tens of millions of annual patient touchpoints, using AI, at-home diagnostics and digital care pathways to improve access and personalization. By partnering with pharma companies and broadening GLP-1 access, Hims & Hers is increasingly acting as a scalable digital front door to healthcare.

LifeMD (LFMD - Free Report) is also redefining healthcare infrastructure by creating an integrated virtual care ecosystem that combines telehealth, pharmacy, diagnostics, insurance integration and AI-driven workflows. LifeMD has strong presence with its 50-state affiliated medical group, in-house pharmacy and national lab capabilities, positioning the platform as more than a point-solution telehealth provider.

LFMD is expanding access to weight management, women’s health and chronic care while using AI to improve provider productivity and personalize treatment. With insurance coverage expected to expand to 230 million covered lives, LifeMD is helping shift care delivery toward a more connected, lower-friction and digitally coordinated healthcare infrastructure.

CAH’s Price Performance, Valuation and EstimatesShares of CAH have lost 2.8% so far this year compared with the industry’s 10.3% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings ratio of 16.93, above the industry average. It is also higher than its five-year median of 13.67. CAH carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Cardinal Health’s fiscal 2026 earnings implies a 30.1% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

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

Key Takeaways Cardinal Health's specialty and pharma unit posted 11% revenue growth in fiscal Q3 2026.CAH's at-home, theranostics and logistics businesses lifted "Other" revenues 31% in Q3.Cardinal Health raised fiscal 2026 free cash flow guidance to $3.3-$3.7B after strong Q3. Cardinal Health (CAH - Free Report) is well positioned for continued growth, thanks to the expansion of its speciality portfolio. The firm delivered strong fiscal third-quarter results, fueled by robust demand in pharmaceutical distribution and accelerating specialty services. Growth in theranostics, at-home solutions, and logistics businesses, alongside improving performance in the medical segment, continues to strengthen CAH’s long-term earnings outlook.

This Zacks Rank #2 (Buy) company’s shares have lost 2.5% so far this year compared with the industry’s 9.3% decline. The S&P 500 has increased 8.1% during the same time frame.

The leading provider of healthcare services and products has a market capitalization of $46.93 billion. It projects 15.7% growth over the next five years and expects to witness continued improvement in its business going forward. Cardinal Health’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 13.21%.

Image Source: Zacks Investment Research

Let’s delve deeper.

UpsidesStrong Specialty and Pharmaceutical Momentum: Cardinal Health’s Pharmaceutical and Specialty Solutions segment continues to be the company’s primary earnings engine, delivering 11% revenue growth and 18% segment profit growth in the third quarter of fiscal 2026. Growth was fueled by robust pharmaceutical demand across specialty, generics and consumer health, with specialty revenues growing more than 20% and oncology expanding over 30%.

Management reiterated expectations for specialty revenues to exceed $50 billion in fiscal 2026, supported by MSO expansion, biopharma solutions, and the Solaris integration. This increasing exposure to higher-margin specialty ecosystems strengthens Cardinal Health’s long-term earnings profile while reducing its dependence on traditional low-margin drug distribution.

Other Growth Businesses Hold Potential: Cardinal Health’s Other growth businesses — At-Home Solutions, Nuclear and Precision Health Solutions (“NPHS”), and OptiFreight Logistics — are becoming increasingly important contributors to earnings diversification. In the fiscal third quarter, revenues from these businesses surged 31% to $1.7 billion, while profit increased 34% to $179 million, supported by secular trends, such as home-based care, theranostics and logistics optimization.

Particularly notable was theranostics growth of more than 30% and continued integration progress at Advanced Diabetes Supply (“ADS”), which added nearly 500,000 patients. These businesses carry structurally stronger growth and margin profiles than traditional distribution, providing CAH with multiple long-term expansion drivers.

Strong Cash Flow and Disciplined Capital Allocation: Cardinal Health generated $1.7 billion in adjusted free cash flow in the third quarter, prompting management to raise fiscal 2026 free cash flow guidance to $3.3-$3.7 billion.

The company has also repurchased $1 billion worth of shares year to date, exceeding its baseline target while reducing leverage to 3.0x, comfortably within its target range. Strong cash generation provides Cardinal Health with the flexibility to fund specialty expansion, invest in automation and infrastructure, pursue disciplined acquisitions, and return capital to shareholders simultaneously. This disciplined capital allocation framework strengthens financial resilience and enhances long-term earnings accretion potential.

Improving Operational Execution and Infrastructure Investments: Cardinal Health continues to strengthen operational efficiency through automation, technology upgrades and supply-chain investments, which management said helped maintain record-high service levels despite heightened winter storms and global supply disruptions.

The company is modernizing its distribution infrastructure, expanding capacity, and simplifying operations within the GMPD segment while maintaining strong customer retention. Investments in technology and logistics are also supporting higher productivity and service quality, particularly across specialty and at-home care businesses. These operational improvements should enhance scalability, strengthen customer relationships, and support sustained margin resilience as volumes continue to grow.

DownsidesIRA Pricing Changes and Mix Shifts: Cardinal Health’s Pharma revenue growth faces rising complexity due to Inflation Reduction Act (IRA)-related WAC pricing adjustments, which reduced revenue growth by approximately 6 percentage points in the fiscal third quarter, effectively offsetting GLP-1 contribution.

While management emphasized that contract economics remain protected through fee renegotiations, lower branded drug prices can still suppress reported top-line growth. The shift from branded drugs to generics following loss-of-exclusivity events, though favorable for profitability, can limit revenue visibility. Consequently, robust demand may not be reflected proportionally in reported sales growth for Cardinal Health.

GMPD Segment Recovery Remains Fragile: Cardinal Health’s Global Medical Products and Distribution (“GMPD”) segment continues to face execution risk despite improvement initiatives. Segment revenues were flat year over year, while profit declined to $25 million, largely due to tariff-related headwinds and lower distribution volumes.

Management cited softness stemming from lost customer contracts and weaker respiratory and laboratory demand, though branded products remained resilient. While simplification initiatives and supply-chain improvements continue to progress, profitability remains vulnerable to external pressures such as tariffs, fuel costs, and commodity inflation, which could delay margin recovery in this segment for Cardinal Health.

Estimate TrendCardinal Health has been witnessing an improving estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has improved 3.9% to $10.72.

The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $65.85 billion, indicating a 9.5% improvement from the year-ago reported number. The Zacks Consensus Estimate for EPS is pinned at $2.40, implying a year-over-year gain of 15.4%.

Other Stocks to ConsiderSome other top-ranked stocks from the same medical industry are Pacific Biosciences of California (PACB - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .

Pacific Biosciences of California, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted loss per share of 12 cents, which surpassed the Zacks Consensus Estimate by 29.4%. Revenues of $37 million missed the Zacks Consensus Estimate by 9.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PACB’s earnings are estimated to decline at a rate of 12.2% against the industry’s 16.9% growth in 2027. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 29.76%.

Globus Medical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $1.12, which outpaced the Zacks Consensus Estimate by 21.7%. Revenues of $760 million surpassed the Zacks Consensus Estimate by 4%.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% rise. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.26%.

Biodesix, currently carrying a Zacks Rank of 2, reported a first-quarter 2026 adjusted loss per share of 81 cents, which beat the Zacks Consensus Estimate by 35.71%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.

BDSX has an estimated earnings growth rate of 36% for 2026 compared with the industry’s 13.4% rise. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.56%.