The upcoming report from Royal Caribbean (RCL - Free Report) is expected to reveal quarterly earnings of $3.97 per share, indicating a decline of 9.4% compared to the year-ago period. Analysts forecast revenues of $4.81 billion, representing an increase of 6% year over year.
Over the last 30 days, there has been a downward revision of 1.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Royal Caribbean metrics that are routinely monitored and predicted by Wall Street analysts.
It is projected by analysts that the 'Revenues- Onboard and other' will reach $1.45 billion. The estimate suggests a change of +8.6% year over year.
The consensus among analysts is that 'Revenues- Passenger ticket' will reach $3.36 billion. The estimate indicates a year-over-year change of +5%.
Analysts forecast 'APCD (Available passenger cruise days)' to reach 13586 days. The estimate compares to the year-ago value of 12942 days.
The average prediction of analysts places 'Net Yields' at $287.91 . Compared to the present estimate, the company reported $283.56 in the same quarter last year.
Analysts predict that the 'Occupancy Rate' will reach 110.4%. The estimate compares to the year-ago value of 110.3%.
Based on the collective assessment of analysts, 'Passenger Cruise Days' should arrive at 14986 days. Compared to the current estimate, the company reported 14278 days in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Net Cruise Costs Excluding Fuel per APCD' of $133.29 . Compared to the current estimate, the company reported $126.76 in the same quarter of the previous year.
The consensus estimate for 'Net Cruise Costs per APCD' stands at $158.70 . The estimate compares to the year-ago value of $148.34 .
According to the collective judgment of analysts, 'Passengers Carried' should come in at 2.57 million. Compared to the current estimate, the company reported 2.25 million in the same quarter of the previous year.
View all Key Company Metrics for Royal Caribbean here>>>
Royal Caribbean shares have witnessed a change of -10.9% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), RCL is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
In its upcoming report, Hilton Worldwide Holdings Inc. (HLT - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.28 per share, reflecting an increase of 3.6% compared to the same period last year. Revenues are forecasted to be $3.36 billion, representing a year-over-year increase of 7.2%.
Over the last 30 days, there has been an upward revision of 0.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Hilton Worldwide metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Revenues- Base and other management fees' should come in at $105.24 million. The estimate points to a change of +8.5% from the year-ago quarter.
Analysts expect 'Revenues- Other revenues' to come in at $82.23 million. The estimate points to a change of +6.8% from the year-ago quarter.
Analysts forecast 'Revenues- Franchise and licensing fees' to reach $815.06 million. The estimate indicates a year-over-year change of +9.4%.
Analysts predict that the 'Revenues- Incentive management fees' will reach $72.27 million. The estimate indicates a change of -3.6% from the prior-year quarter.
Based on the collective assessment of analysts, 'Revenues- Ownership' should arrive at $334.62 million. The estimate suggests a change of +0.8% year over year.
Analysts' assessment points toward 'Revenues- Cost reimbursement revenues' reaching $1.93 billion. The estimate indicates a change of +6.7% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Property Summary - Ownership - Rooms - Total system' of 14,932 . The estimate compares to the year-ago value of 15,287 .
The consensus estimate for 'Property Summary - Managed - Rooms - Total system' stands at 266,636 . The estimate compares to the year-ago value of 258,183 .
It is projected by analysts that the 'RevPAR - System-wide' will reach $125.13 . The estimate is in contrast to the year-ago figure of $121.79 .
The combined assessment of analysts suggests that 'Property Summary - Total - Rooms - Total system' will likely reach 1,385,603 . The estimate compares to the year-ago value of 1,304,879 .
The average prediction of analysts places 'Property Summary - Franchised / Licensed - Rooms - Total system' at 1,104,035 . The estimate is in contrast to the year-ago figure of 1,031,409 .
View all Key Company Metrics for Hilton Worldwide here>>>
Over the past month, shares of Hilton Worldwide have returned -5.6% versus the Zacks S&P 500 composite's +0.4% change. Currently, HLT carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
HLT heads into Q2 earnings with resilient travel demand, expanding hotel openings and steady booking trends, but near-term regional headwinds remain in focus.
In its upcoming report, Paypal (PYPL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.28 per share, reflecting a decline of 8.6% compared to the same period last year. Revenues are forecasted to be $8.51 billion, representing a year-over-year increase of 2.7%.
Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Paypal metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Net Revenues- Revenues from other value added services' should arrive at $857.75 million. The estimate indicates a year-over-year change of +1.3%.
According to the collective judgment of analysts, 'Net Revenues- Transaction revenues' should come in at $7.66 billion. The estimate points to a change of +3% from the year-ago quarter.
Analysts expect 'Total Payment Volume (TPV)' to come in at $474.52 billion. The estimate is in contrast to the year-ago figure of $443.55 billion.
The consensus among analysts is that 'Transaction margin' will reach 43.8%. The estimate is in contrast to the year-ago figure of 46.4%.
Analysts' assessment points toward 'Active accounts' reaching 440 . Compared to the present estimate, the company reported 438 in the same quarter last year.
View all Key Company Metrics for Paypal here>>>
Shares of Paypal have demonstrated returns of +30.7% over the past month compared to the Zacks S&P 500 composite's +0.4% change. With a Zacks Rank #3 (Hold), PYPL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Buying PayPal (NASDAQ:PYPL | PYPL Price Prediction) at 11 times trailing earnings while the company retires roughly 8% of its float every year makes PayPal stand out as one of the more compelling large-cap value opportunities today. PayPal operates digital payment platforms such as PayPal, Venmo, and Braintree, making money primarily by charging merchants fees for processing transactions.
The market is pricing PayPal like a melting ice cube, but the underlying payments engine is still compounding volume, and management is returning cash faster than the share price can absorb it. Additionally, Stripe and Advent International made an offer for PayPal’s business, and while the offer of $60.50 per share was rejected for being too low, there’s a potential for the business to be acquired at a substantial premium to where it trades today.
PayPal’s 11x Forward P/E Provides a Margin of Safety PYPL trades at a forward P/E of just 11 against TTM revenue of $33.73 billion and a return on equity of 25.1%. It’s a rare combination for a business to generate 25% ROE while being priced at a low-double-digit multiple. Analysts’ average price target of $61.62 implies 11.01% upside before factoring in dividends or share buybacks.
An 8% Buyback Yield Acts Like An Extra Return Driver The stock’s dividend yield of 0.74% understates what shareholders actually receive. PayPal repurchased ~100 million shares for $6.0 billion over the trailing twelve months, shrinking diluted share count from 999 million to 920 million.
Y2025 free cash flow reached $5.564 billion, and management guides to at least $6 billion in adjusted free cash flow for 2026 with another ~$6 billion in share repurchases planned.
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PayPal’s $1.5 Billion Turnaround Has Teeth New CEO Enrique Lores has committed to “at least $1.5 billion of gross run-rate savings over the next two to three years,” backed by Q1 2026 total payment volume of $463.95 billion, up 11%, and U.S. revenue growth of 9%. Venmo TPV rose 14% year over year, its sixth consecutive quarter of double-digit growth.
Why PayPal Looks Far Cheaper Than Visa While Visa (NYSE:V) has a more attractive underlying business than PayPal, it’s tough not to see that PYPL is valued at a low multiple. Visa trades at a forward P/E of 24, roughly double PayPal’s multiple, while paying a nearly identical 0.72% dividend yield. Visa’s EV/EBITDA of 24.54 dwarfs PayPal’s 6.7. Retirement investors get comparable dividend income at a fraction of the valuation, plus a share buyback yield Visa cannot match on a percentage-of-float basis.
PayPal’s Weak Guidance Masks a Healthy Payments Engine PayPal’s bear case rests on FY26 non-GAAP EPS guided to a low-single-digit decline to slightly positive versus $5.31. But the company’s core growth engine still looks intact, with TPV growth of 11% and transaction volume of 6.5 billion transactions, up 7%.
The near-term EPS softness reflects lower interest income on customer balances and reinvestment pressure, while underlying demand remains strong. Insiders agree: PayPal logged 59 recent insider transactions with a net buying direction.
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Intel shares are consolidating. Where are INTC shares going? Earnings Preview & HistoryIntel is scheduled to report second-quarter earnings today after the market closes. Analysts estimate EPS of 19 cents along with revenue of $14.40 billion. For the prior quarter, Intel reported EPS of 29 cents, beating the consensus estimate of a loss of 1 cent. The company also posted revenue of $13.58 billion, exceeding the consensus estimate of $12.40 billion.
What to WatchInvestors will be closely tracking gross margin trajectory, which Intel guided to approximately 39% for the quarter, down from 41% in Q1 as a larger share of higher cost 18A products moves through production. Data Center and AI revenue is another key figure to watch — the segment generated $5.05 billion in Q1, and management’s guidance implies double-digit sequential growth is needed to keep pace with the AI buildout narrative.
Commentary on 18A manufacturing yields and the foundry business will also draw attention, given ongoing questions about when the segment can turn cash-generative, along with any updates on forward guidance and capital spending discipline heading into the second half of the year.
A Longer-Term Uptrend Meets Short-Term WeaknessFrom a trend perspective, Intel is still in a longer-term uptrend, trading about 15% above its 100-day SMA ($89.85) and roughly 58% above its 200-day SMA ($65.50). The near-term picture is softer, though, with the stock about 8% below its 20-day SMA ($112.99) and roughly 11% below its 50-day SMA ($115.90), which keeps rallies vulnerable to supply.
Momentum is best explained by MACD right now: MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing unless buyers can reclaim that baseline. That lines up with the bearish 20-day SMA below the 50-day SMA, even as the bigger-picture "golden cross" (50-day above 200-day) from August 2025 still argues the primary trend hasn’t fully broken.
Key Support: $98.50 — a nearby pivot area where buyers previously stepped in, and a level traders may watch closely if the broader selloff deepens Analyst Consensus & Recent Actions The stock carries a Hold rating with an average price forecast of $103.67. Recent analyst moves include:
Morgan Stanley: Equal-Weight (Raises Target to $75.00) (July 20) Susquehanna: Neutral (Raises Target to $115.00) (July 16) Keybanc: Overweight (Raises Target to $155.00) (July 14) Intel Shares RiseINTC Price Action: At the time of publication, Intel shares are trading 0.14% higher at $102.76, according to data from Benzinga Pro.
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It’s hard to believe that a name like Intel (NASDAQ:INTC | INTC Price Prediction), which gained more than 336% in a year as a part of its profoundly successful turnaround, could have more gas in the tank. The $515 billion semiconductor giant is back on the map, and while the easiest gains have already been made, I do think that the company could continue its winning ways now that its wheels are back on the tracks.
With shares now down more than 26% from those June highs, questions linger as to whether Intel deserves to fall faster than the rest of the harshly punished semiconductor names. Now that analysts expect way more from the firm after more than quadrupling in a year, questions linger as to whether the firm is poised to run itself off the expectations treadmill.
With investors expecting big things from the firm as it pulls the curtain on earnings today, Intel’s numbers may very well set the tone for the tech trade for the rest of the week. For the most part, the numbers are going to be “strong,” according to most analysts, including those at Wedbush Securities.
But a good showing might not be enough to reverse the trend as semis continue to sag and calls for profit-taking grow a bit louder. In my view, the long-term narrative has never been better, and any post-earnings plunge, I think, could be a gift for those willing to deal with the downward pressure for a shot at real long-term strength.
Intel’s yield is too impressive to ignore, and the margin implications are huge With recent reports swirling around Intel Foundry Services clocking in an astounding 85% yield on the 18A process node, perhaps lingering doubts and skepticism — which are very much warranted, in my view — surrounding Intel’s ability to catch up with Taiwan Semiconductor Manufacturing (NYSE:TSM) could soon be shot down. It’s one thing to get a fab up and running with big-name clients, but it’s another to be running with a high yield on the cutting edge of semiconductor manufacturing.
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The 85% figure is 20% higher than previous quarters, marking an unbelievable leap in efficiency, one that will go straight into padding Intel’s margin. Of course, Taiwan Semiconductor remains the firm to beat, but being able to operate at such a high level to be within striking distance of the market leader, in my opinion, is a feat that warrants a big jump in the share price.
In any case, we’ll need to see how the numbers fare in the second half. If an 85% yield on 18A finds its way into the numbers, analysts might need to revisit the drawing board and raise the bar on their margin expectations. Intel has defied expectations in a massive way in the past year.
Could it really be that Intel can keep the home run hits coming? I’d say it’s likelier than not, especially in light of this latest report. At this pace, perhaps Intel stock is well-equipped to grow into its hefty multiple far faster than expected, and the bulls, like Jim Cramer, might look very smart for sticking with the name despite the explosive stock chart.
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Shopify (SHOP - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Shopify currently has an average brokerage recommendation (ABR) of 1.55, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 48 brokerage firms. An ABR of 1.55 approximates between Strong Buy and Buy.
Of the 48 recommendations that derive the current ABR, 33 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 68.8% and 6.3% of all recommendations.
Brokerage Recommendation Trends for SHOP
Check price target & stock forecast for Shopify here>>>
While the ABR calls for buying Shopify, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in SHOP?Looking at the earnings estimate revisions for Shopify, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $1.84.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Shopify. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Shopify may serve as a useful guide for investors.
Shares of Shopify (SHOP - Free Report) have gained 3.7% over the past four weeks to close the last trading session at $118.42, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $151.43 indicates a potential upside of 27.9%.
The average comprises 45 short-term price targets ranging from a low of $110.00 to a high of $200.00, with a standard deviation of $20.25. While the lowest estimate indicates a decline of 7.1% from the current price level, the most optimistic estimate points to a 68.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SHOP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SHOP Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.6%.
Moreover, SHOP currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SHOP could gain, the direction of price movement it implies does appear to be a good guide.
It has been about a month since the last earnings report for FedEx (FDX - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FedEx due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for FedEx Corporation before we dive into how investors and analysts have reacted as of late.
Earnings Beat at FedEx in Q4FedEx reported solid fourth-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.
Revenues of $25.0 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago fiscal quarter’s reported figure.
Apart from the better-than-expected results, FDX has also raised its full-year fiscal 2026 guidance for revenues and earnings. For fiscal 2026, FedEx now expects revenue growth to be up almost 11% on a year-over-year basis (prior view: up 6-6.5%). Earnings per share (EPS) are now anticipated to be between $16.55 and $17.75 before the MTM retirement plans accounting adjustments compared with the prior guidance of $16.05-$16.85.
Operating income, on a reported basis, increased 3.4% to $2.09 billion from the year-ago fiscal quarter’s reported number. Operating margin fell to 8.4% from 9.1% in the year-ago reported quarter. Operating income improved in the fiscal fourth quarter on the back of continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives and increased U.S. domestic and international export package volume.
Operating expenses (reported basis) increased 15% to $23.4 billion.
In January 2025, FedEx’s board of directors announced a change in the company’s fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
The spin-off of FedEx Freight into a new publicly traded company was completed on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of almost $4.1 billion to FedEx from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility.
FedEx Freight will discuss its fiscal fourth-quarter results on June 25, 2026, through a call.
Segmental Performance During the QuarterFedEx Express segment’s revenues grew 14% year over year to $21.5 billion. The Federal Express segment benefited from higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses and the financial impacts of global trade policy changes.
FedEx Freight revenues grew 5% from the year-ago fiscal quarter’s reported figure to $2.40 billion.
Average daily shipments fell 6% year over year. Capital expenditures for the reported quarter were $1.47 billion.
LiquidityFedEx exited fourth-quarter fiscal 2026 with cash and cash equivalents of $13.3 billion compared with $8.01 billion at the end of the prior quarter. Long-term debt (less current portion) was $23.2 billion compared with $22.8 billion at prior-quarter end.
During fiscal 2026, FedEx returned almost $2.2 billion to shareholders, which includes $776 million in the form of share repurchases and $1.4 billion through dividend payments. As of May 31, 2026, $1.3 billion was available under the company's 2024 stock repurchase authorization.
Remaining Aspects of 2026 OutlookEPS, after excluding costs related to business optimization initiatives, the planned spin-off of FedEx Freight, and the planned change in the company's fiscal year end, is now expected between $16.90 and $18.10 compared with the prior guided range of $19.30 to $20.10.
Pension contributions are now expected to be up to $475 million (prior view: $275 million).
For fiscal 2026, FedEx now anticipates capital spending of $3.9 billion (prior view: $4.1 billion), prioritizing investments in network optimization and efficiency improvement, which includes fleet and facility modernization and automation. The effective tax rate is now estimated to be around 23% compared with the prior expectation of 24%.
For 2026, FedEx remains committed to rewarding its shareholders, which includes the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. FDX also plans to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation.
How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM ScoresAt this time, FedEx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook FedEx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Shares of Travelers (TRV - Free Report) have been strong performers lately, with the stock up 16% over the past month. The stock hit a new 52-week high of $374 in the previous session. Travelers has gained 28.3% since the start of the year compared to the 6.2% gain for the Zacks Finance sector and the -0.5% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 17, 2026, Travelers reported EPS of $10.04 versus consensus estimate of $5.31.
For the current fiscal year, Travelers is expected to post earnings of $31.83 per share on $48.85 in revenues. This represents a 15.4% change in EPS on a -0.05% change in revenues. For the next fiscal year, the company is expected to earn $29.39 per share on $50.26 in revenues. This represents a year-over-year change of -7.68% and 2.89%, respectively.
Valuation MetricsWhile Travelers has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Travelers has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 5.8X versus its peer group's average of 10.6X. Additionally, the stock has a PEG ratio of 3.76. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Travelers an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Travelers currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Travelers fits the bill. Thus, it seems as though Travelers shares could still be poised for more gains ahead.
How Does TRV Stack Up to the Competition?Shares of TRV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is The Allstate Corporation (ALL - Free Report) . ALL has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. The Allstate Corporation beat our consensus estimate by 43.34%, and for the current fiscal year, ALL is expected to post earnings of $30.51 per share on revenue of $71.42 billion.
Shares of The Allstate Corporation have gained 7.8% over the past month, and currently trade at a forward P/E of 8.25X and a P/CF of 6.6X.
The Insurance - Property and Casualty industry may rank in the bottom 61% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for TRV and ALL, even beyond their own solid fundamental situation.
IBM cuts its 2026 revenue growth outlook after delayed software deals, while early Q3 closures and infrastructure strength support a second-half rebound.
Key Takeaways IBM's Q2 adjusted earnings rose 5% to $2.93 per share, while revenues missed estimates by 0.9%.Delayed software deals and a 42% plunge in IBM Z revenues caused most of the quarterly shortfall.IBM cut its 2026 revenue growth view to 4-5% but raised its margin expansion target to 100 bps. International Business Machines Corporation (IBM - Free Report) reported relatively modest second-quarter 2026 results with adjusted earnings of $2.93 per share, up 5% year over year and in line with the Zacks Consensus Estimate. Revenues rose 1.1% to $17.16 billion but missed the consensus mark of $17.32 billion by 0.9%.
The top-line miss reflected delayed large, capital-expenditure-sensitive software transactions and weaker IBM Z revenues. Software annual recurring revenue reached $24.6 billion, up 8% year over year, supported by continued strength in Red Hat, HashiCorp and Confluent.
Software Growth Slows on Transaction TimingSoftware revenues increased 5.1% year over year to $7.76 billion. Hybrid Cloud revenues rose 11%, while Data advanced 19%, or 18% at constant currency. Automation grew 4%, or 3% at constant currency.
Transaction Processing revenues fell 8%, or 9% at constant currency, as clients redirected spending toward servers, storage and memory amid supply constraints and expected price increases. Management observed that several large deals did not close on schedule, accounting for most of the quarterly shortfall.
About 80% of annual software revenues are recurring, comprising subscription, consumption and support streams. This portion delivered healthy growth, while OpenShift annual recurring revenue reached $2.2 billion.
HashiCorp posted another record-bookings quarter, while Confluent remained on track after its first full quarter since the acquisition. Software segment profit rose 9% to $2.50 billion, lifting margin 110 basis points (bps) to 32.2%.
Consulting Gains from AI Transformation DemandConsulting revenues were nearly flat at $5.33 billion, up 1% in constant currency. Strategy and Technology and Intelligent Operations each increased 1% on a constant-currency basis. Signings grew 6% to $5.0 billion, marking a second consecutive quarter of growth. Generative AI represented about 50% of signings and more than 30% of backlog. Segment profit increased 15.1% to $647 million, while margin expanded 160 bps to 12.1%.
Infrastructure Segment Mix WeighsInfrastructure revenues declined 7.4% to $3.84 billion. Hybrid Infrastructure fell 10%, reflecting a 42% plunge in IBM Z revenues, while Infrastructure Support slipped 1%. Distributed Infrastructure surged 37% and delivered its strongest quarterly growth on record. Power and Storage exited the quarter with nearly $500 million of backlog. Infrastructure segment profit declined 13% to $835 million, and margin contracted 150 bps to 21.8%.
IBM Expands Operating Profit Despite Gross Margin PressureNon-GAAP gross profit was $10.19 billion, essentially flat year over year, while non-GAAP gross margin declined 70 bps to 59.4%. The pressure mainly reflected the revenue shortfall and business mix.
Non-GAAP pre-tax income rose 3% to $3.29 billion, with margin expanding 30 bps to 19.2%. Adjusted EBITDA increased 2% to $4.8 billion, and margin improved about 20 bps to 27.8%, aided by productivity initiatives.
IBM Maintains Cash Flow DisciplineIBM generated $2.6 billion in operating cash flow during the quarter, up $0.9 billion year over year. Free cash flow was $2.5 billion, down $0.3 billion, while first-half free cash flow remained flat at $4.8 billion.
The company ended June with $8.20 billion in cash, restricted cash and marketable securities. Total debt was $62 billion, including $13 billion of IBM Financing debt. IBM returned $1.59 billion to shareholders through quarterly dividends.
IBM Trims Revenue View but Raises Margin TargetFor 2026, IBM now expects constant-currency revenue growth of 4% to 5%, down from its prior expectation of more than 5%. The company continues to expect free cash flow to increase by about $1 billion year over year.
Software growth is projected at 6% to 8%, while Infrastructure is expected to grow in the low single digits. Consulting growth is forecast to accelerate to the low-to-mid-single-digit range. IBM now expects 100 bps of operating pre-tax margin expansion for the year.
Zacks RankUpcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting a growth of 21.9% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 19.9%. Arista delivered an average earnings surprise of 8.3% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release second-quarter 2026 earnings on Aug. 6. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share, indicating an 8.7% decline from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 8.1%. Akamai delivered an average earnings surprise of 7.5% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release second-quarter 2026 earnings on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, implying a rise of 9.1% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 27%. Pinterest delivered an average negative earnings surprise of 4.1% in the last four reported quarters.
IBM (NYSE: IBM | IBM Price Prediction), which has been poorly run for decades, is on the ropes. The company has had plenty of practice managing decline. When it warned about its earnings a week ago, the stock dropped over 20%. It is down 30% for the year, while the S&P is up 9%. The picture is even bleaker from another vantage point: in early June, the stock changed hands at $329, but it trades at very slightly better than $200 now.
Yesterday, IBM reported the full extent of its failure with weak Q2 results. First, IBM announced it would cut guidance, although the revision was minor. The staggering news, however, was that revenue from IBM’s Z mainframe dropped 42%. This, in turn, dragged down infrastructure revenue by 7% year-over-year to $3.8 billion. While IBM suggested that customers were not abandoning the mainframe platform entirely, the data shows they are certainly moving away from IBM’s offerings at an accelerating pace.
Revenue for the second quarter was $17.2 billion, which was up 1% year over year. Net income was down 1% to $2.2 billion. IBM’s future depends on the credibility of a comment by CEO Arvind Krishna: “We are confident in IBM’s strategy and portfolio, and in our ability to capture growth opportunities ahead. We fundamentally believe that we are in the early innings of a structural shift for business, and that our portfolio — across software, infrastructure, and consulting — is well-positioned to help our clients tap the value, and manage the challenges of an AI-driven future.” The market begs to differ. Investors are not confident.
IBM acts as if it were still an important pillar of America’s megatech industry, but it is not. By way of contrast, the much larger Microsoft (NASDAQ: MSFT) saw a 17% increase in its most recent quarter to $81.3 billion. The software giant’s EPS hit $5.18, compared to $3.24 in the year-ago period. Microsoft’s net income of $38.5 billion for the period is 2.3 times IBM’s total revenue for its most recent quarter.
Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) all have higher revenue than Microsoft’s, and Nvidia’s (NASDAQ: NVDA) is almost as high as any of those. It is another sign of how small and inconsequential IBM’s revenue is compared to that of the larger tech companies
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IBM is special, in a sense. The company lost whatever clout it had decades ago. In 1980, IBM ranked ninth on the Fortune 500, America’s largest companies based on revenue. Since then, it has missed the opportunity to lead in personal computers, PC operating systems, e-commerce, tech operating systems, search, and, more recently, AI. It is hard to find a tech company that lost that many chances to be a leader.
IBM’s market cap is just under $200 billion. Microsoft’s market cap is $2.9 trillion. Alphabet’s is $4.2 trillion. Privately held OpenAI is estimated at $900 billion.
IBM has lost ground for decades, and it can’t make any of that up.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UnitedHealth Group (UNH - Free Report) UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. UNH has a Momentum Style Score of A, and shares are up 6.3% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.07 to $19.36 per share. UNH boasts an average earnings surprise of +12.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, UNH should be on investors' short list.
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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Phillips 66 (PSX - Free Report) Based in Houston, TX, Phillips 66 is a diversified and integrated energy company established following the 2012 spin-off of ConocoPhillips' downstream operations. As one of the world's leading refiners, Phillips 66 operates 13 refineries, primarily in the United States, with a total refining capacity of about 2.2 million barrels per day.
PSX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.66; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $1.58 to $19.84 per share. PSX boasts an average earnings surprise of +67.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PSX should be on investors' short list.
Investors in Chord Energy Corporation (CHRD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 18, 2026 $95 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Chord Energy shares, but what is the fundamental picture for the company? Currently, Chord Energy is a Zacks Rank #4 (Sell) in the Oil and Gas - Exploration and Production - United States industry that ranks in the Bottom 16% of our Zacks Industry Rank. Over the last 30 days, three analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $6.12 per share to $6.68 in that period.
Given the way analysts feel about Chord Energy right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Dover Corporation (DOV - Free Report) reported $2.19 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.9%. EPS of $2.74 for the same period compares to $2.44 a year ago.
The reported revenue represents a surprise of -1.01% over the Zacks Consensus Estimate of $2.21 billion. With the consensus EPS estimate being $2.72, the EPS surprise was +0.74%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Engineered Products: $283.48 million versus $284.38 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.Revenue- Clean Energy & Fueling: $594.96 million compared to the $578.85 million average estimate based on three analysts. The reported number represents a change of +9% year over year.Revenue- Climate & Sustainability Technologies: $455.1 million versus the three-analyst average estimate of $470.05 million. The reported number represents a year-over-year change of +9.4%.Revenue- Pumps & Process Solutions: $552.71 million compared to the $571.06 million average estimate based on three analysts. The reported number represents a change of +6.2% year over year.Revenue- Intersegment eliminations: $-1.33 million compared to the $-1.86 million average estimate based on three analysts. The reported number represents a change of +14% year over year.Revenue- Imaging & Identification: $305.1 million compared to the $306.85 million average estimate based on three analysts. The reported number represents a change of +4.5% year over year.Adjusted EBITDA- Engineered Products: $63.25 million versus the three-analyst average estimate of $62.13 million.Adjusted EBITDA- Clean Energy & Fueling: $137.66 million versus $126.81 million estimated by three analysts on average.Adjusted EBITDA- Climate & Sustainability Technologies: $83.83 million compared to the $95.68 million average estimate based on three analysts.Adjusted EBITDA- Pumps & Process Solutions: $192.85 million compared to the $194.13 million average estimate based on three analysts.Adjusted EBITDA- Imaging & Identification: $89.35 million versus $84.7 million estimated by three analysts on average.View all Key Company Metrics for Dover here>>>
Shares of Dover have returned -4.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways Dover's Q2 earnings topped estimates as revenue growth and margin gains offset input-cost inflation.Bookings jumped 16% across all five segments, lifting second-half visibility and confidence in the outlook.Dover raised its 2026 adjusted EPS guidance to $10.55-$10.75 on improving end-market demand. Dover Corporation (DOV - Free Report) reported second-quarter 2026 adjusted earnings of $2.74 per share, up 12% year over year and beating the Zacks Consensus Estimate of $2.72. The improvement reflected broad-based revenue growth, stronger segmental margins and operational execution that more than offset input-cost inflation.
On a reported basis, Dover delivered earnings of $2.31 per share in the quarter, up 14% year over year.
Revenues rose 7% year over year to $2.19 billion but missed the consensus estimate of $2.21 billion. Organic revenues increased 4.8% in the quarter. Our model expected organic revenues to rise 5.7%.
DOV's Margins Expand on Operating ExecutionCost of sales increased 6.3% year over year to $1.31 billion. Gross profit rose 7.6% to $881 million, while the gross margin improved to 40.2% from 39.9% in the prior-year quarter.
Selling, general and administrative expenses increased 5.4% to $488.8 million. Total adjusted segment EBITDA advanced 10.3% to $567 million, and the related margin expanded 80 basis points to 25.9%.
Dover’s Q2 Segmental PerformancesThe Engineered Products segment’s revenues increased 2.7% year over year to $283 million in the quarter. The reported figure came in line with our estimate. The segment’s adjusted EBITDA rose 7.8% to $63.2 million from $58.7 million in the year-ago quarter. Demand was strong in aerospace and defense components, fluid dispensing and industrial winches, with stabilization in the North American vehicle aftermarket. The figure met our estimate.
The Clean Energy & Fueling segment’s revenues climbed 8.9% year over year to $595 million, led by clean energy components and retail fueling. The figure beat our estimate of $591 million. The segment’s adjusted EBITDA increased 17.9% to $137.7 million on volume leverage, operational execution and acquisition integration benefits. The figure beat our estimate of $131.5 million.
The Imaging & Identification segment’s revenues moved up 4.5% year over year to $305 million. The reported figure missed our projection of $307 million. The segment’s adjusted EBITDA was $89.3 million, up 10.1% from the year-ago quarter’s $81.2 million. The figure missed our estimate of $82 million. Growth came from serialization software, core marking and coding equipment, consumables and spare parts.
The Pumps & Process Solutions segment’s revenues rose 6.2% year over year to $552.7 million in the second quarter but missed our estimate of $558 million. The segment’s adjusted EBITDA totaled $192.9 million, up 11.7% from $172.6 million in the prior-year quarter. The reported figure was lower than our projection of $193 million. AI and energy infrastructure, single-use biopharma and industrial pumps supported the top line, while a richer mix of biopharma shipments aided profitability.
The Climate & Sustainability Technologies segment’s revenues grew 9.4% year over year to $455.1 million from $416.2 million. Robust shipments of carbon dioxide refrigeration systems and global heat exchangers drove the gain. We had predicted revenues of $459 million for this segment. The segment’s adjusted EBITDA totaled $83.8 million compared with $84.9 million in the year-earlier quarter, marking a decline of 1.2%. The figure lagged our estimate of $103 million.
DOV's Bookings Signal Strong DemandDover’s bookings in the second quarter were worth $2.33 billion, growing 16% from $2.01 billion in the prior-year quarter. Bookings rose across all five segments, strengthening second-half visibility and supporting management's confidence in the outlook. Total bookings were higher than our estimate of $2.26 billion. The book-to-bill ratio came in at 1.06.
Dover's Cash Flow Improves in Q2Cash flow from operating activities rose to $236 million from $212 million in the year-ago quarter. Capital expenditure declined to $47.8 million from $60.9 million.
The free cash flow increased 24.4% to $188.4 million. It represented 8.6% of revenues and 50.7% of adjusted earnings from continuing operations. For the first six months, the free cash flow totaled $319.6 million, up from $260.7 million.
DOV Raises 2026 Earnings GuidanceBacked by the ongoing improvement in end-market demand, Dover raised its 2026 adjusted earnings guidance to $10.55-$10.75 per share from the previously mentioned $10.45 to $10.65.
Full-year revenue growth is projected at 6-8%, including organic growth of 4-6%. The company also expects the free cash flow to be 14-16% of revenues and capital expenditure to be $190-$210 million.
Dover Stock’s Price PerformanceThe company’s shares have gained 16.2% in the past year compared with the industry’s growth of 5.1%.
Image Source: Zacks Investment Research
DOV’s Zacks RankDover currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s Peer PerformanceGraco Inc.’s (GGG - Free Report) second-quarter 2026 adjusted earnings of 91 cents per share beat the Zacks Consensus Estimate of 81 cents. The bottom line grew 22% year over year.
Graco’s revenues of $591 million missed the consensus estimate of $609 million. The top line increased 3.3% year over year.
2 Manufacturing Stocks Awaiting ResultsFlowserve Corporation (FLS - Free Report) is scheduled to release second-quarter 2026 results on June 29. The Zacks Consensus Estimate for FLS’s second-quarter 2026 earnings is pegged at 86 cents per share, suggesting a year-over-year dip of 5.5%
The Zacks Consensus Estimate for Flowserve Corp’s top line is pegged at $1.16 billion, indicating a decrease of 2.4% from the prior year’s actual. FLS has a trailing four-quarter average surprise of 12.7%.
Applied Industrial Technologies, Inc. (AIT - Free Report) is scheduled to release fourth-quarter fiscal 2026 results on Aug. 13. The Zacks Consensus Estimate for AIT’s fourth-quarter 2026 earnings is pegged at $2.91 per share, suggesting year-over-year growth of 3.9%.
The Zacks Consensus Estimate for Applied Industrial’s top line is pegged at $1.29 billion, indicating an increase of 5.6% from the prior year’s actual. AIT has a trailing four-quarter average surprise of 4%.
Royalty Management Holding Corp (NASDAQ:RMCO) said a company it holds a royalty stake in, ReElement Technologies, has closed new financing that will fund an expansion of operations and increase revenue flowing to Royalty Management under an existing royalty agreement.
ReElement, which operates critical mineral refining facilities in Noblesville and Marion, Indiana, processes end-of-life recycled materials, virgin ores and manufacturing byproducts into magnet-grade rare earth elements and other critical minerals for the electrification, defense and technology sectors using a chromatographic separation platform.
The financing includes a $25 million investment from the US Department of War to accelerate ReElement's production of critical minerals for defense and commercial use, in addition to a previously closed investment from private equity firm Transition Equity Partners.
Royalty Management holds an intellectual property development program with ReElement, under which it provides capital for developing patents and refining technologies in exchange for an ongoing royalty on resulting sales. The company said the new capital raised by ReElement to expand operations is expected to increase revenues tied to refining technologies covered under that program.
"ReElement has consistently demonstrated that their novel rare earth and critical mineral refining methods are the next generation of how the world looks at this industry, especially from a cost-competitive and purity standpoint," said Thomas Sauve, CEO of Royalty Management. "We are excited about having this relationship where Royalty can help provide the technology advancements in partnership with ReElement to help them continue to drive process and efficiency."
Separately, Royalty Management said its board has set a record date of September 30, 2026 for its next quarterly cash dividend. Shareholders of record on that date will receive a payment of $0.0025 per share, payable October 10, 2026.
T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) shares fell about 5% in early trade on Thursday after the wireless carrier reported second quarter results that topped Wall Street expectations on earnings but narrowly missed revenue estimates.
The company reported adjusted earnings per share of $2.99 for the quarter, ahead of analyst expectations of about $2.55.
Revenue came in at $22.79 billion, slightly below the consensus estimate of $22.95 billion.
T-Mobile added 277,000 net postpaid accounts during the quarter, exceeding expectations for 259,000 additions, though the figure declined 13% year over year. Postpaid average revenue per account (ARPA) rose 2% from a year earlier to $152.91.
Service revenue increased 9% year over year to $19 billion, while postpaid service revenue grew 13% to $15.9 billion. Net income was $3.2 billion, up 1% from the prior-year period, while diluted earnings per share increased 5% to $2.99.
The company highlighted continued customer momentum, including a record wireless Net Promoter Score (NPS) of 46, which it described as the highest score for a major U.S. carrier based on HarrisX survey data.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” T-Mobile CEO Srini Gopalan said.
Gopalan added that the company’s strategy remained focused on combining network quality, value and customer experience to support growth across wireless, broadband and other businesses.
T-Mobile also raised its full-year adjusted free cash flow outlook, now expecting a range of $18.4 billion to $18.8 billion.
Despite the earnings beat and higher free cash flow forecast, investors focused on the slight revenue shortfall and the sequential slowdown in postpaid account additions, weighing on shares following the results.
T-Mobile (TMUS - Free Report) reported $22.79 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 7.9%. EPS of $3.13 for the same period compares to $2.84 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $22.74 billion, representing a surprise of +0.21%. The company delivered an EPS surprise of +25.7%, with the consensus EPS estimate being $2.49.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how T-Mobile performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total postpaid accounts: 34.7 million versus the three-analyst average estimate of 34.69 million.Postpaid ARPA: $152.91 versus $153.10 estimated by three analysts on average.Postpaid phone churn: 1% versus the two-analyst average estimate of 0.9%.Revenues- Total service revenues: $18.98 billion versus $18.76 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.Revenues- Equipment revenues: $3.52 billion versus $3.57 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +2.5% change.Revenues- Other revenues: $284 million versus the five-analyst average estimate of $257.46 million. The reported number represents a year-over-year change of +11.4%.Revenues- Service revenues- Prepaid revenues: $2.47 billion versus $2.51 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -6.4% change.Revenues- Service revenues- Postpaid revenues: $15.85 billion versus the four-analyst average estimate of $15.86 billion. The reported number represents a year-over-year change of +12.6%.Revenues- Wholesale and other service revenues: $657 million versus the three-analyst average estimate of $658.49 million. The reported number represents a year-over-year change of -8.4%.View all Key Company Metrics for T-Mobile here>>>
Shares of T-Mobile have returned +5.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) shares fell about 5% in early trade on Thursday after the wireless carrier reported second quarter results that topped Wall Street expectations on earnings but narrowly missed revenue estimates.
The company reported adjusted earnings per share of $2.99 for the quarter, ahead of analyst expectations of about $2.55.
Revenue came in at $22.79 billion, slightly below the consensus estimate of $22.95 billion.
T-Mobile added 277,000 net postpaid accounts during the quarter, exceeding expectations for 259,000 additions, though the figure declined 13% year over year. Postpaid average revenue per account (ARPA) rose 2% from a year earlier to $152.91.
Service revenue increased 9% year over year to $19 billion, while postpaid service revenue grew 13% to $15.9 billion. Net income was $3.2 billion, up 1% from the prior-year period, while diluted earnings per share increased 5% to $2.99.
The company highlighted continued customer momentum, including a record wireless Net Promoter Score (NPS) of 46, which it described as the highest score for a major U.S. carrier based on HarrisX survey data.
“Q2 marked another strong quarter of execution as we continued making meaningful progress toward our ambitious 2026 and 2027 objectives, including achieving our highest-ever wireless NPS score of 46,” T-Mobile CEO Srini Gopalan said.
Gopalan added that the company’s strategy remained focused on combining network quality, value and customer experience to support growth across wireless, broadband and other businesses.
T-Mobile also raised its full-year adjusted free cash flow outlook, now expecting a range of $18.4 billion to $18.8 billion.
Despite the earnings beat and higher free cash flow forecast, investors focused on the slight revenue shortfall and the sequential slowdown in postpaid account additions, weighing on shares following the results.
Key Takeaways T added over 1 million Advanced Connectivity customers in second-quarter 2026.Fiber added 367,000 customers, while advanced home Internet connections rose 29.5%.Promotions, legacy declines and heavy network investment continue to pressure AT&T's outlook. AT&T Inc. (T - Free Report) is trying to show that a cleaner connectivity model can still produce steady growth. The stock story now rests less on media optionality and more on execution in fiber, 5G and bundled Internet-wireless services.
That focus gives investors a clearer operating thesis. It also leaves T exposed to promotional wireless competition, legacy copper declines and the capital intensity needed to keep expanding network reach.
AT&T Resets Around Advanced ConnectivityAT&T has moved away from a broader media and video structure. The divestiture of media assets and the sale of its Video business sharpened the company’s focus on core connectivity services.
Effective first-quarter 2026, the company realigned reporting around Advanced Connectivity, Legacy and Latin America. Advanced Connectivity generated about 90% of operating revenues in that quarter and now houses domestic 5G, fiber-based wireless, advanced home Internet, business fiber and related services.
T Builds Growth Through Fiber and WirelessThe growth case starts with customer additions. In second-quarter 2026, AT&T reported more than 1 million Advanced Connectivity net additions, including 646,000 Internet net additions and 432,000 postpaid phone net additions.
Fiber remained central to that momentum, with 367,000 net additions. Fixed wireless added 279,000 customers, while advanced home Internet connections rose 29.5% year over year. Convergence is another lever. About 42.5% of advanced home Internet customers also had an AT&T postpaid wireless plan, and management has indicated that converged households churn at roughly half the rate of standalone accounts.
AT&T Sees Edge and Open RAN as LeversAT&T is also positioning the network for heavier edge and artificial intelligence-related traffic. Dense fiber, 5G backhaul and spectrum depth are expected to support lower-latency workloads and stronger uplink performance over time.
The company has cited more than 20 metro multi-access edge computing zones and more than 150 active private 5G and edge trials. Verizon Communications Inc. (VZ - Free Report) remains a relevant peer because AT&T’s wireless pricing and network investments are judged against other national carriers. T-Mobile US Inc. (TMUS - Free Report) is another key reference point for subscriber growth and promotional intensity in postpaid wireless.
Open radio access network deployment is part of the cost story. AT&T aims to deploy Open RAN for 70% of wireless network traffic across open-capable platforms by late 2026, using the effort to lower long-run network costs and reduce reliance on single vendors.
T Still Faces Pricing and Legacy PressureWireless growth does not remove pricing risk. The U.S. market remains highly competitive, and promotions, plan incentives and converged discounts can limit per-product monetization even as AT&T adds subscribers.
Legacy erosion remains another drag. In second-quarter 2026, Legacy operating revenues declined 25.9% year over year, while Legacy EBITDA fell 45.5% as cost reductions lagged customer migrations.
Older business services are also pressuring results. Business Transitional and Other revenues within Advanced Connectivity fell 16.6% year over year, showing that the cleanup of copper-based and transitional services still affects reported growth and margins.
How AT&T’s Hold Signal Fits the SetupAT&T remains a balanced stock story. Fiber, wireless and convergence support the income and valuation case, but promotional pressure, legacy declines and heavy investment needs keep the setup from looking like a simple growth call.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a neutral short-term earnings-revision backdrop rather than a high-conviction buy signal.
The Style Scores tell a similar mixed story. AT&T has a Value Score of A, Growth Score of D, Momentum Score of F and VGM Score of C. The strong value mark supports the valuation argument, while weaker growth and momentum scores suggest investors may need patience as the company works through the next stage of its connectivity reset.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hostilities heating up in the Strait of Hormuz are taking spot oil prices up 4-5% and pre-market futures down precipitously. With the Yemeni Houthis now involved bombing Saudi oil tankers and repeated U.S. air strikes in Iran, WTI oil prices have risen +4% to over $91 per barrel (/bbl) and Brent crude is up +5% to nearly $100/bbl.
The Dow, as a result, is down -560 points at this hour. The S&P 500 is -83 and the tech-heavy Nasdaq is -450. The small-cap Russell 2000 is -27 points at this hour. This, despite mostly positive data in earnings reports yesterday afternoon from Texas Instruments (TXN - Free Report) , Southwest Airlines (LUV - Free Report) and most especially Alphabet (GOOGL - Free Report) . All these stocks are down in today’s pre-market trading session.
Jobless Claims Back to 1960s Lows: 187K, 1.796MPrior to the Covid pandemic, which pushed jobless claims up to record highs in the first half of 2020, we saw Weekly Jobless Claims reduce to lows not seen since Jimi Hendrix was on the album charts (album charts? ask your parents) in the late 1960s. We’re back there again this morning: Initial Jobless Claims reached 187K for last week, well below the 212K expected and the slightly upwardly revised 209K the previous week.
For Continuing Claims, more of the same: 1.796 million is below the downwardly revised 1.798 million from the prior week, the lowest print since the week of May 30th, which included the Memorial Day holiday. A year ago, we were well above 1.9 million longer-term jobless claims (without ever hitting the psychologically important 2 million jobless claims), but we haven’t touched 1.9 million at all in 2026 so far.
Q2 Earnings Results at a GlanceThe world’s largest airline, American Airlines (AAL - Free Report) , posted a whopping +400% positive earnings surprise this morning, swinging to a positive earnings result from a year ago to $0.15 per share. Revenues of $16.74 billion also beat estimates, by a decidedly less eye-popping +0.22%, but up big from the $14.39 billion reported in the year-ago quarter. Fuel costs in upcoming quarters is weighing on the share price this morning, however.
T-Mobile U.S. (TMUS - Free Report) shares are trading down -5% at this hour, despite reporting a +25.7% earnings beat to $3.13 per share this morning, well ahead of the $2.84 per share posted in the year-ago quarter. Revenues came in at $22.79 billion, a +0.21% improvement from estimates and the $21.13 billion from Q2 2025.
Investment bank Blackstone (BX - Free Report) shares are flattish this morning — considered good news in the current trading climate — after surpassing earnings expectations by +14.3% to $1.52 per share. Revenues surprised by a solid +12.7% to $3.8 billion in the quarter. Shares are still down -20% year to date, but it’s nice to see the stock not being further gutted in this morning’s selloff.
Aerospace and defense giant Lockheed Martin (LMT - Free Report) shares are up in today’s pre-market by +5.5%, partly on increased tensions in the Middle East which may push up demand for military operation products and services, and partly on a strong Q2 performance. Earnings of $7.94 per share outpaced estimates by +9.97%, up from the $7.29 per share reported a year ago. Revenues of $20.06 billion beat forecasts by +3.26% this morning.
For the quarter ended June 2026, Dow Inc. (DOW - Free Report) reported revenue of $12.09 billion, up 19.7% over the same period last year. EPS came in at $1.44, compared to -$0.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $12.04 billion, representing a surprise of +0.41%. The company delivered an EPS surprise of +15.2%, with the consensus EPS estimate being $1.25.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dow Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Performance Materials & Coatings: $2.36 billion versus the three-analyst average estimate of $2.16 billion. The reported number represents a year-over-year change of +10.9%.Revenues- Corporate: $180 million versus the three-analyst average estimate of $162.67 million. The reported number represents a year-over-year change of +9.8%.Net Sales- Packaging & Specialty Plastics: $6.39 billion versus $6.67 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +27.1% change.Net Sales- Industrial Intermediates & Infrastructure: $3.17 billion versus $3.05 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.6% change.Operating EBITDA- Packaging & Specialty Plastics: $1.64 billion versus $1.89 billion estimated by three analysts on average.Operating EBITDA- Corporate: $-1 million compared to the $-48.33 million average estimate based on three analysts.Operating EBITDA- Performance Materials & Coatings: $291 million compared to the $274.51 million average estimate based on three analysts.Operating EBITDA- Industrial Intermediates & Infrastructure: $383 million versus $42.48 million estimated by three analysts on average.View all Key Company Metrics for Dow Inc. here>>>
Shares of Dow Inc. have returned +6.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways Dow posted adjusted Q2 EPS of $1.44, beating estimates by 15%, as sales rose 19.7% to $12.1B.Higher local prices and self-help benefits offset a 1% volume decline tied to planned maintenance.Dow expects more than $1.3B in 2026 self-help benefits, with gains accelerating into 2027. Dow Inc. (DOW - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.44 per share, reversing the year-ago loss of 42 cents per share. The figure beat the Zacks Consensus Estimate of $1.25 by 15%. The year-over-year improvement was mainly driven by higher prices and benefits from Dow’s self-help initiatives.
Including one-time items, such as costs associated with the Transform to Outperform program, partially offset by an income tax adjustment,the company reported earnings per share of 99 cents in the quarter compared to the year-ago quarter’s loss of $1.18.
Net sales rose 19.7% year over year to around $12.1 billion and beat the consensus estimate of $11.6 billion by 3.8%. Local prices increased 20%, while volume declined 1% as planned maintenance weighed on Packaging & Specialty Plastics.
GAAP net income was $802 million in the reported quarter compared with a net loss of $801 million a year ago. Operating EBITDA increased to $2.3 billion from $703 million.
DOW’s Segment HighlightsPackaging & Specialty Plastics sales rose 27% year over year to $6,385 million. The figure fell behind our estimate of $6.7 billion. Volume fell 4% due to declines in both businesses, including higher planned maintenance in Hydrocarbons & Energy, which reduced merchant sales. Lower polyethylene volumes in EMEAI and Asia Pacific also reflected the Middle East conflict. Higher polyethylene and olefins prices more than offset the volume pressure.
Industrial Intermediates & Infrastructure sales increased 14% year over year to $3.2 billion. The figure surpassed our estimate of $3.04 billion. Volume declined 2% as lower demand in Polyurethanes & Construction Chemicals, including the effects of the Middle East conflict, outweighed growth in Industrial Solutions. Industrial Solutions volumes benefited from recent alkoxylation investments and increased demand for data center applications.
Performance Materials & Coatings sales advanced 11% year over year to $2.4 billion. The figure beat our estimate of $2.2 billion. Volume grew 6%, supported by gains across both businesses and strength in downstream silicones. Consumer Solutions benefited from higher demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded increased acrylic monomers and architectural coatings volumes.
DOW’s FinancialsCash flow from operating activities for continuing operations was $1.3 billion, reversing the year-ago use of $470 million. The improvement was primarily driven by higher earnings across all businesses, which more than offset an expected working capital build associated with revenue growth.
Cash and cash equivalents were $3.97 billion as of June 30, 2026, up from $3.8 billion at the end of 2025. Shareholder returns through dividends totaled $253 million during the quarter.
DOW's OutlookDow expects approximately $200 million in additional benefits from Transform to Outperform during 2026. This raises the company’s expected total in-year benefits from self-help initiatives to more than $1.3 billion.
For the second half of 2026, management plans to focus on growth and innovation in attractive end markets, investments to strengthen the portfolio and balanced capital allocation. Dow expects the growth and productivity benefits from Transform to Outperform to accelerate through the remainder of 2026 and into 2027.
DOW’s Stock Price PerformanceDOW’s shares have gained 24.7% in the past year against the industry’s decline of 0.8%.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key PicksDOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Oracle (ORCL - Free Report) Austin, TX-based Oracle Corporation is one of the largest enterprise-grade database, middleware, and application software providers.
ORCL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. ORCL has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.2% for the current fiscal year.
For fiscal 2027, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $8.03 per share. ORCL boasts an average earnings surprise of +12.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ORCL should be on investors' short list.
Wall Street analysts forecast that American Tower (AMT - Free Report) will report quarterly earnings of $2.71 per share in its upcoming release, pointing to a year-over-year increase of 4.2%. It is anticipated that revenues will amount to $2.71 billion, exhibiting an increase of 3.1% compared to the year-ago quarter.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific American Tower metrics that are routinely monitored and predicted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Total operating revenues- Data Centers' of $294.65 million. The estimate indicates a change of +12.5% from the prior-year quarter.
The average prediction of analysts places 'Total operating revenues- Services' at $64.88 million. The estimate indicates a change of -35.1% from the prior-year quarter.
Based on the collective assessment of analysts, 'Total operating revenues- Total Property' should arrive at $2.65 billion. The estimate indicates a change of +4.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Geographic Revenues- Total International' will likely reach $1.09 billion. The estimate points to a change of +13.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Geographic Revenues- U.S. & Canada' should come in at $1.27 billion. The estimate indicates a year-over-year change of -3%.
The consensus estimate for 'Geographic Revenues- Latin America' stands at $429.34 million. The estimate suggests a change of +10.4% year over year.
Analysts' assessment points toward 'Geographic Revenues- Europe' reaching $252.39 million. The estimate suggests a change of +8.3% year over year.
It is projected by analysts that the 'U.S. & Canada - Ending Balance' will reach 41,766 . Compared to the current estimate, the company reported 41,843 in the same quarter of the previous year.
The consensus among analysts is that 'Total - Ending Balance' will reach 149,255 . Compared to the present estimate, the company reported 148,797 in the same quarter last year.
Analysts predict that the 'Organic Tenant Billings Growth - Total International' will reach 2.9%. The estimate compares to the year-ago value of 6.5%.
Analysts forecast 'Organic Tenant Billings Growth - U.S. & Canada' to reach 0.5%. Compared to the current estimate, the company reported 3.7% in the same quarter of the previous year.
Analysts expect 'International - Ending Balance' to come in at 107,633 . The estimate compares to the year-ago value of 106,954 .
View all Key Company Metrics for American Tower here>>>
American Tower shares have witnessed a change of -4.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), AMT is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.86; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $3.90 per share. XYZ boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XYZ should be on investors' short list.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Hyliion Holdings Corp. ("Hyliion" or the "Company") (NYSE: HYLN). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Hyliion and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On June 23, 2026, Pelican Way Research ("PWR") published a short report entitled "Hyliion: A Glorified Science Project Who Has Continuously Failed To Meet Expectations And Is Now Throwing Around A Meaningless Deal." The report stated that Hyliion's stock had risen significantly following the Company's announcement of a non-binding letter of intent ("LOI") with VFG Holdings ("VFG") for up to 250 KARNO Cores, representing approximately $133 million in potential revenue. The PWR report alleged that the VFG LOI accounted for roughly one-third of Hyliion's reported $400 million-plus pipeline and questioned whether the LOI provided meaningful commercial validation. The report further alleged that VFG, which PWR identified as VFG Tech Holdings, LLC, was incorporated in January 2026, appeared to have only four employees listed on LinkedIn, had only a minimal website, and lacked evidence of funding or operating substance sufficient to support an order of that size.
Following publication of the PWR report, Hyliion's stock price fell $1.27 per share, or 17.2%, to close at $6.10 per share on June 23, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SAN DIEGO--(BUSINESS WIRE)--Johnson Fistel, PLLP is investigating Hyliion Holdings Corp. (NYSE American: HYLN) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.What Should Hyliion Investors Do?If you purchased Hyliion securities and suffered losses on your investment, you are encouraged to contact Johnson Fistel to learn more about the investigation.To join the investigation click here.For more information, contact Jim Baker at.
United Parcel Service (UPS - 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 package delivery service have returned +9.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Transportation - Air Freight and Cargo industry, to which UPS belongs, has gained 3.4% 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.
Earnings Estimate RevisionsHere 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UPS is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of +6.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $7.1 for the current fiscal year indicates a year-over-year change of -0.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.89 indicates a change of +11% from what UPS is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
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 UPS.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven 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 UPS, the consensus sales estimate of $21.75 billion for the current quarter points to a year-over-year change of +2.5%. The $90.32 billion and $94.07 billion estimates for the current and next fiscal years indicate changes of +1.9% and +4.2%, respectively.
Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.
Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.
Over the last four quarters, UPS 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe 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 UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The upcoming report from United Parcel Service (UPS - Free Report) is expected to reveal quarterly earnings of $1.65 per share, indicating an increase of 6.5% compared to the year-ago period. Analysts forecast revenues of $21.75 billion, representing an increase of 2.5% year over year.
The current level reflects a downward revision of 0.2% 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.
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.
Given this perspective, it's time to examine the average forecasts of specific UPS metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus estimate for 'Revenue- International Package- Cargo and other' stands at $174.31 million. The estimate suggests a change of +1.9% year over year.
The average prediction of analysts places 'Revenue- U.S. Domestic Package- Ground' at $10.71 billion. The estimate suggests a change of +2.1% year over year.
The combined assessment of analysts suggests that 'Revenue- U.S. Domestic Package- Deferred' will likely reach $1.05 billion. The estimate indicates a change of +2.3% from the prior-year quarter.
Analysts predict that the 'Revenue- U.S. Domestic Package' will reach $14.47 billion. The estimate indicates a year-over-year change of +2.8%.
Analysts expect 'Average revenue per piece - International Package - Total' to come in at $23.03 . Compared to the current estimate, the company reported $21.14 in the same quarter of the previous year.
It is projected by analysts that the 'Average daily package volume - International Package - Export' will reach 1.61 million. The estimate compares to the year-ago value of 1.68 million.
According to the collective judgment of analysts, 'Average daily package volume - International Package - Domestic' should come in at 1.42 million. Compared to the current estimate, the company reported 1.51 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Average revenue per piece - U.S. Domestic Package - Ground' should arrive at $12.34 . Compared to the current estimate, the company reported $11.46 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Average revenue per piece - U.S. Domestic Package - Total' of $14.24 . Compared to the present estimate, the company reported $13.03 in the same quarter last year.
Analysts' assessment points toward 'Average revenue per piece - International Package - Domestic' reaching $9.31 . Compared to the present estimate, the company reported $8.61 in the same quarter last year.
Analysts forecast 'Average revenue per piece - International Package - Export' to reach $35.14 . Compared to the present estimate, the company reported $32.38 in the same quarter last year.
The consensus among analysts is that 'Average daily package volume - International Package - Total' will reach 3.02 million. The estimate is in contrast to the year-ago figure of 3.19 million.
View all Key Company Metrics for UPS here>>>
Shares of UPS have experienced a change of +9.1% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), UPS 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 Costco's China Executive Membership rollout beat expectations, with member activity above assumptions.Executive members drive 75% of global sales, shop more often and spend more per visit.With seven China warehouses, Costco sees room to expand fee income, frequency and loyalty. Costco Wholesale Corporation’s (COST - Free Report) China business is emerging as a promising catalyst for the next phase of membership growth. The company launched its Executive Membership program in China in the third quarter of fiscal 2026 and reported strong early adoption. Management said the rollout was ahead of expectations, with member activity exceeding initial assumptions. Executive members typically shop more often, spend more per visit and generate higher recurring membership income.
We note that the company’s global executive membership base reached 41.2 million at quarter-end, up 9.6% year over year. Executive members accounted for 75% of worldwide sales. Management noted that executive growth is being supported by both existing Gold Star members upgrading and new customers choosing the premium tier from the outset.
Management highlighted China alongside Japan and Korea as key international regions with immense growth potential for future warehouse development. The company currently operates seven warehouses in China. Costco has observed that new warehouse openings in China can produce outsized membership growth. Strong early adoption of the Executive Membership program signals that Chinese consumers are rapidly embracing higher-tier membership benefits.
As Costco expands its global real estate footprint with new warehouse openings, China offers a fresh runway for growth. If executive penetration continues to build as Costco opens more warehouses, China could become a larger contributor to fee income, shopping frequency and member loyalty.
What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 8.3% over the past three months compared with the industry’s 2.7% decline. While shares of Dollar General have fallen 0.4%, those of Target have jumped 6.7% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.70, higher than the industry’s ratio of 30.64. However, the stock is trading below its 12-month median level of 46.1, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 16.03) and Dollar General (15.67).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimates for earnings per share for both the current and next fiscal year have increased by 6 cents to $20.42 and $22.50, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against First Solar, Inc. ("First Solar" or the "Company") (NASDAQ: FSLR) and certain officers. The class action, filed in the United States District Court for the Eastern District of New York, and docketed under 26-cv-03787, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired First Solar securities during the Class Period, you have until August 24, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
First Solar is a solar technology company that provides photovoltaic ("PV") solar energy solutions. First Solar manufactures and sells PV solar modules that convert sunlight into electricity. As relevant here, First Solar's product offerings include its Series 6 Plus PV module, manufactured at facilities in locations including Malaysia and Vietnam.
At the outset of the Class Period, Defendants announced that First Solar would reduce production output of Series 6 modules at facilities in Malaysia and Vietnam in 2025, to account for circumstances including, inter alia, an "uncertain U.S. policy environment following the 2024 U.S. elections," and "a supply and demand imbalance for Southeast Asian product". Notwithstanding these circumstances, First Solar reassured investors that its primary market, the United States, enjoyed stable module prices.
Then, on April 2, 2025, United States ("U.S.") President Donald J. Trump announced a series of "reciprocal" tariffs on U.S. imports from all countries, including rates of 24% and 46% on Malaysia and Vietnam, respectively, presenting a challenge to First Solar. These tariffs were subsequently reduced to 10%. Throughout the Class Period, Defendants continued to assure investors that the dynamic policy landscape presented a "long term favorable" for First Solar and actually "strengthened [its] relative position in the solar manufacturing industry".
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business; (ii) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on January 7, 2026, when Jefferies downgraded First Solar to Hold from Buy, noting that during 2025, the Company had lowered guidance, faced significant de-bookings and experienced margin compression through 2025. Jefferies also flagged that "[international] facilities remain a pain point while tariffs exist" and "underutilization at [international] facilities remains a concern." The Jefferies analyst also predicted that First Solar's deployment opportunities were likely to be more limited in 2026.
On this news, First Solar's stock price fell $27.67 per share, or 10.29%, to close at $241.11 per share on January 7, 2026.
Then, on February 24, 2026, First Solar issued a press release "announc[ing] financial results for the fourth quarter and year ended December 31, 2025." Among other items, First Solar announced earnings that missed expectations by a wide margin and issued lower-than-expected FY 2026 revenue guidance, citing customer headwinds such as permitting delays under the Trump administration. Following First Solar's announcement, Baird Research downgraded its stock to Neutral from Outperform, citing "several question marks in forward outlook".
On this news, First Solar's stock price fell $33.09 per share, or 13.61%, to close at $210.12 per share on February 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Time-Sensitive: Allegations Focus on First Solar's Repeated 'Long Term Favorable' Trade Environment Representations While International Facilities Faced Mounting Headwinds
, /PRNewswire/ -- SueWallSt alerts investors in First Solar, Inc. (NASDAQ: FSLR) of a pending securities class action. Class Period: February 26, 2025 through February 24, 2026. Check if you might be eligible to recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (888) SueWallSt.
First Solar shares declined over $60 per share in combined corrective disclosures during the Class Period. The Court has set August 24, 2026 as the deadline to apply for lead plaintiff appointment.
The Alleged 'Long Term Favorable' Mischaracterization
The lawsuit asserts that throughout 2025, management repeatedly told investors that the political and trade environment remained "an overall long term favorable" for the Company and that recent policy developments had "strengthen[ed] First Solar's relative position in the solar manufacturing industry." As alleged, these characterizations were materially misleading because they obscured the severity of operational disruptions already underway at international production sites.
Trade Policy Trends in Solar Manufacturing
The action claims that while management projected confidence about navigating tariff regimes, the underlying reality told a different story:
Reciprocal tariffs of up to 46% on Vietnamese imports and 24% on Malaysian imports rendered international module shipments to the U.S. economically unviable for extended periods The Company acknowledged it "may need to further reduce or idle production" at international sites, yet continued to frame the overall outlook as favorable A major customer default by British Petroleum affiliates eliminated 6.6 gigawatts of contracted bookings, further undermining the international production thesis Management's assurances about customer tariff-absorption provisions failed to account for customers' unwillingness to bear the full cost burden The new South Carolina onshoring facility was scheduled to commence commercial operations in the second half of 2026, with production ramping through the first half of 2027, creating a production gap that was not adequately disclosed Why 'Long Term Favorable' Framing Allegedly Matters to Investors
The lawsuit contends that by characterizing the trade environment as net-positive, management encouraged investors to maintain or increase positions in FSLR at prices that did not reflect the Company's deteriorating near-term production economics. When corrective information emerged through analyst downgrades and disappointing FY 2026 guidance, the gap between the portrayed outlook and operational reality became apparent.
"Investors deserve transparency about material risks that could affect their investments. When a company repeatedly frames a challenging environment as favorable without adequate qualification, shareholders may be denied the opportunity to make informed decisions about their holdings." -- Joseph E. Levi, Esq.
Submit your information now or contact Joseph E. Levi, Esq. at (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the FSLR Lawsuit
Q: Who is eligible to join the FSLR investor lawsuit? A: Investors who purchased FSLR stock or securities between February 26, 2025 and February 24, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the FSLR lawsuit allege? A: The complaint alleges First Solar made materially false or misleading statements regarding the favorability of the trade environment, its capacity to manage tariff impacts on international production, and the extent to which facility underutilization would harm projected 2026 performance. When the true state was revealed, the stock price declined sharply.
Q: What is the FSLR lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 24, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What do FSLR investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What if I already sold my FSLR shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
The market expects First Solar (FSLR - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While 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 largest U.S. solar company is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of -13.8%.
Revenues are expected to be $1.06 billion, down 3.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.06% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for First Solar?For First Solar, 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 +15.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that First Solar will most likely 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 Solar would post earnings of $2.87 per share when it actually produced earnings of $3.22, delivering a surprise of +12.20%.
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.
First Solar appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
New York, New York--(Newsfile Corp. - July 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FSLR, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302699
Source: Bronstein, Gewirtz & Grossman, LLC
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NEW YORK, July 23, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that:
(1)Defendants had overstated First Solar’s capacity to manage the impact of U.S. tariff policy on the Company’s business (2)Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar’s projected performance in the 2026 fiscal year; (3)as a result, Defendants’ public statements were materially false and misleading at all relevant times.
What's Next for First Solar Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/FSLR. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in First Solar you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to First Solar Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for First Solar Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
With the stock market trading sideways since the start of summer, concerns are running high about a possible near-term downturn. Rather than exiting the market, consider leaning into defensive names.
Blue chip dividend stocks are a prime example. These durable, high-quality businesses provide steady cash payouts each quarter, all while leaving the door open for long-term price appreciation.
Among dividend stocks in this category, a few stand out as strong opportunities right now: AbbVie (ABBV +1.40%), Chevron (CVX +1.76%), and PepsiCo (PEP -0.55%).
Image source: Getty Images.
AbbVie's comeback points to further dividend growth Pharmaceutical company AbbVie has raised its dividend annually since being spun off from Abbott Laboratories in 2013. A few years ago, the company entered a rough patch due to the then-pending expiration of patent exclusivity for its Humira anti-inflammatory treatment.
However, thanks to the success of immunology therapies like Skyrizi and Rinvoq, AbbVie has experienced a rebound. Sales growth and operating income have bounced back. After making a further pivot toward immunology, through its pending acquisition of Apogee Therapeutics, AbbVie appears well-positioned for further earnings growth. Forecasts call for revenue and earnings growth of around 10% and 40%, respectively, during 2026.
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As earnings growth continues, AbbVie remains well-positioned to continue its dividend growth streak. Currently, the stock has a forward dividend yield of around 2.75%, with annual dividend growth averaging nearly 6% over the past five years.
Chevron remains a Dividend King in the making Integrated oil and gas company Chevron has nearly 40 years of consecutive dividend growth. That means it's just a little over a decade away from attaining Dividend King status. Dividend Kings are stocks with 50 or more years of consecutive dividend growth.
With a forward dividend yield of around 3.75%, Chevron has also raised its dividend by an average of 6% over the past five years. An additional wave of mid-single-digit dividend growth may be in the cards. Even as crude oil prices have eased since the geopolitically driven supply shocks earlier this year, they remain within a range that supports the energy company's long-term cash flow growth goals.
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As announced last November, Chevron's game plan to "maintain capital and cost discipline" could lead to 10% annualized earnings growth between now and 2030 if Brent crude oil prices stay above $70 per barrel. Alongside cost-cutting measures, Chevron's game plan also entails leaning into growth opportunities, such as providing power solutions for artificial intelligence (AI) data centers.
PepsiCo: A contrarian buy among dividend stocks PepsiCo shares have fallen out of favor in recent months. The packaged food and beverage company continues to struggle with declining U.S. market share, even as quarterly results beat forecasts.
Yet while the market remained bearish, much suggests ample rewards for those going contrarian at present price levels. Right now, the stock has a forward dividend yield of around 4.4%. PepsiCo is already a Dividend King, with a 54-year track record of annual dividend increases, and the company's dividend growth has averaged around 6% annually over the past five years.
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As Morgan Stanley's Dara Mohsenian recently noted, factors like tariff refunds and continued strong international results could help offset recent concerns. Since PepsiCo's shares are trading for only 18 times forward earnings, while competitor Coca-Cola trades for 25 times forward earnings, there's ample upside potential if sentiment improves.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Palantir (NASDAQ:PLTR | PLTR Price Prediction) has been down 29.92% year to date while the S&P 500 has gained 9.60%. But the one reason Palantir can beat the market from here is the same reason it has beaten it over five years: a Rule of 40 score of 145%, matched only by NVIDIA (NASDAQ:NVDA), Micron (NASDAQ:MU), and SK hynix.
Our 24/7 Wall St. price target for Palantir is $162.35, implying 30.33% upside from $124.57. Recommendation: Buy. Confidence: high, at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $124.57 24/7 Wall St. Price Target $162.35 Upside 30.33% Recommendation BUY Confidence Level 90% Why Palantir Sold Off Despite Blowout Numbers Palantir sits 12% below its 52-week high of $207.52 and roughly 17% above its 52-week low of $106.37. Shares are down 6.87% in the past week.
Yet fundamentals keep improving. In Q1 FY2026, filed May 4, 2026, adjusted EPS of $0.33 beat the $0.2795 consensus by 18.07%, and revenue of $1.63 billion grew 84.71% YoY, extending the streak to eight straight EPS beats.
U.S. commercial revenue jumped 133% YoY to $595 million, and management raised FY2026 revenue guidance to $7.650 to $7.662 billion (71% growth). Over five years, PLTR is up 471.16%.
The Case for $200+ Our bull scenario projects PLTR reaching $203.55 in 12 months, a 63.4% total return. U.S. commercial acceleration anchors this path: remaining deal value ended Q1 at $4.92 billion, up 112% YoY, and TCV closed was $2.41 billion (+61% YoY).
Free cash flow more than tripled to $925 million, with FY2026 adjusted FCF guided to $4.2 to $4.4 billion. The Street consensus target of $183.12 sits between our base and bull cases.
The Risks Worth Watching PLTR trades at a trailing P/E of 150x and forward P/E of 91x, versus an implied model P/E of 131x. Our bear scenario lands at $142.36 (+14.29%), but broader multiple compression could retest the 52-week low.
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Stock-based compensation of $201.6 million in Q1 and government contract termination-for-convenience clauses are legitimate concerns. GAAP operating income of $754 million (46% margin) demonstrates genuine GAAP profitability, a mark most software peers cannot claim even after backing out SBC.
How Palantir Compares to Snowflake and CrowdStrike Snowflake (NYSE:SNOW) is the closest data-platform peer, but the growth gap is wide: SNOW grew Q1 FY27 revenue 33.5% YoY and remains GAAP-unprofitable with an operating margin of -30.6%.
Palantir grew 84.71% at a 46% operating margin. Our $162.35 target looks conservative relative to what investors pay for slower, unprofitable data infrastructure.
CrowdStrike (NASDAQ:CRWD) offers a better valuation contrast. CRWD grew Q1 FY27 revenue 25.6% and carries a $192 billion market cap. Palantir’s $298.6 billion market cap is a premium, but with more than triple the growth rate, the multiple is defensible.
Hold Through the Volatility, Buy on Dips Verdict: Buy, with high (90%) confidence in the 24/7 Wall St. price target of $162.35. The Rule of 40 at 145% combined with FY2026 guidance raised twice already is the tipping factor.
The setup rewards investors who can tolerate a beta of 1.56 across a 12-month horizon. Investors unable to absorb another 30% drawdown may find the risk/reward less compelling. Growth this durable rarely stays this cheap for long.
Palantir Price Prediction 2026-2030 Year 24/7 Wall St. Price Target 2026 $162 2027 $189 2028 $217 2029 $243 2030 $266 These projections assume Palantir executes on U.S. commercial expansion and defends operating margins near 40%. Significant upside or downside could result from major government contract shifts or accelerated enterprise AIP adoption.
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Shares of Unity Software Inc. (U - Free Report) have gained 7.8% over the past four weeks to close the last trading session at $29.27, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $37.22 indicates a potential upside of 27.2%.
The average comprises 22 short-term price targets ranging from a low of $28.00 to a high of $54.00, with a standard deviation of $6.03. While the lowest estimate indicates a decline of 4.3% from the current price level, the most optimistic estimate points to a 84.5% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for U, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why U Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 8.1%, as one estimate has moved higher compared to no negative revision.
Moreover, U currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much U could gain, the direction of price movement it implies does appear to be a good guide.
The market expects Bristol Myers Squibb (BMY - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis biopharmaceutical company is expected to post quarterly earnings of $1.59 per share in its upcoming report, which represents a year-over-year change of +8.9%.
Revenues are expected to be $11.67 billion, down 4.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.12% 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. 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 Bristol Myers?For Bristol Myers, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.51%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Bristol Myers will most likely 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 Bristol Myers would post earnings of $1.44 per share when it actually produced earnings of $1.58, delivering a surprise of +9.72%.
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.
Bristol Myers 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 Medical - Biomedical and Genetics industry, uniQure (QURE - Free Report) , is soon expected to post loss of $0.89 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -29%. This quarter's revenue is expected to be $7.05 million, up 34% from the year-ago quarter.
The consensus EPS estimate for uniQure has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +12.03%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that uniQure will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Pinterest (PINS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this digital pinboard and shopping tool company have returned +13.5%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Internet - Software industry, which Pinterest falls in, has gained 7.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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.
Pinterest is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +9.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.
The consensus earnings estimate of $1.92 for the current fiscal year indicates a year-over-year change of +20%. This estimate has changed +0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.23 indicates a change of +15.9% from what Pinterest is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
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 #4 (Sell) for Pinterest.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Pinterest, the consensus sales estimate of $1.15 billion for the current quarter points to a year-over-year change of +15.4%. The $4.86 billion and $5.47 billion estimates for the current and next fiscal years indicate changes of +15% and +12.7%, respectively.
Last Reported Results and Surprise HistoryPinterest reported revenues of $1.01 billion in the last reported quarter, representing a year-over-year change of +17.8%. EPS of $0.27 for the same period compares with $0.23 a year ago.
Compared to the Zacks Consensus Estimate of $963.8 million, the reported revenues represent a surprise of +4.53%. The EPS surprise was +22.73%.
Over the last four quarters, Pinterest surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times 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.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pinterest is graded C on this front, indicating that it is trading at par with 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 Pinterest. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Netflix (NASDAQ:NFLX | NFLX Price Prediction) and Roku (NASDAQ:ROKU) just delivered post-earnings snapshots that could not look more different. Netflix posted its Q2 report on July 16, leaning on content, ads, and the largest buyback quarter in its history. Roku’s Q1, filed April 30, showed a platform business finally translating scale into consistent profits.
Big Content Wins Meet Ad Tech Roars Netflix delivered EPS of $0.80 on revenue of $12.559 billion, growing 13.37% YoY. Operating margin held at 33.4%, doing the heavy lifting. Titles like Apex (131M views) and Swapped (137M views) kept engagement steady while price hikes in the US, Mexico, and Spain landed without much pushback.
Roku’s quarter was louder in percentage terms. Platform revenue climbed 28% YoY to $1.13 billion, with Advertising up 27% and Subscriptions up 30%. CEO Anthony Wood told investors, “We delivered an outstanding first quarter.” Devices slipped 16%, a reminder that the hardware business still runs at a loss.
One Owns the Screen, the Other Owns the Feed Lens Netflix Roku Core Bet Content plus live sports Programmatic ads and SMBs Growth Lever Ad tier doubling to ~$3B Platform toward ~$5B Capital Return $27.1B buyback remaining $400M program Key Risk $1B debt maturing 2026 Memory chip supply squeeze Netflix is chasing time on screen with an expanded NFL package including Thanksgiving Eve and Christmas Gameday, plus creator deals with Ms. Rachel and Mark Rober. Roku is chasing the dollars flowing through its pipes, integrating with DV360, Amazon DSP, and The Trade Desk. Advertiser count on Roku Ads Manager more than doubled YoY. Two very different revenue engines.
The Next Test Sits in Very Different Places For Netflix, I want to see ad revenue actually reach that $3.0 billion target while free cash flow rebounds from Q2’s $1.525 billion figure. Reddit chatter has soured alongside a 26.91% YTD drop, with a thread called “Netflix’s Growth Engine Is Stalling” gaining traction. For Roku, the tell will be Q2 earnings on July 30. Polymarket traders put the odds of a beat at 87%, though I take small-volume markets with a grain of salt.
Why I’d Split the Ticket Personally, I lean Netflix for stability. The sell-off dragged shares to $68.53, and a P/E near 21 feels reasonable for a business guiding to roughly $12.5 billion in free cash flow. For investors researching more torque, Roku offers a different profile. Platform economics are compounding, and reaching $1 billion of Free Cash Flow by 2028 would reprice the shares meaningfully. I would hesitate on Roku if memory chip costs pressure device margins harder than expected. Together, the pair covers the defensive and growth ends of streaming.
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Micron Technology Inc. MU and SK Hynix shares rose in trading on Thursday after Alphabet increased its capital expenditure guidance for 2026, easing investor concerns that spending on artificial intelligence infrastructure could slow.
Micron shares gained 3.3% in the session, while SK Hynix's American Depositary Receipts advanced 6.2%.
The rally followed Alphabet's quarterly earnings, during which the Google parent raised its expected 2026 capital expenditure range to between $195 billion and $205 billion, above its previous guidance of $180 billion to $190 billion.
The revised outlook also topped analysts' expectations of about $188 billion, according to Visible Alpha.
Alphabet's updated spending guidance provided reassurance for investors who had become concerned that demand for AI hardware, including memory chips, could soften after months of heavy investment by large technology companies.
During the company's earnings call, Chief Financial Officer Anat Ashkenazi said Alphabet now expects to spend between $195 billion and $205 billion in capital expenditures during 2026.
"The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand," Ashkenazi said.
She also reaffirmed the company's commitment to expanding AI infrastructure.
"We're still in a supply-constrained environment," she said. "I think we've said this now for multiple quarters in a row, and we are seeing very strong demand both from external cloud customers as well as across the business."
Alphabet attributed the higher spending to continued expansion of data center capacity required to support growing AI workloads and cloud demand.
The announcement helped lift sentiment across memory chip makers after Micron shares had fallen nearly 9% over the past month, while SK Hynix's Seoul-listed shares had declined by almost a quarter over the same period.
Micron also received unexpected attention during Tesla's second-quarter earnings call after Chief Executive Elon Musk publicly thanked the company for supplying memory chips.
“I’d actually also like to thank Micron for giving us memory allocation,” Musk said before adding that memory pricing has become “pretty insane” as demand continues to surge.
Later in the call, Musk also acknowledged Taiwan Semiconductor Manufacturing Company and Samsung Electronics.
“I think things are going really well on the chip front. Yeah. Again, I’d like to thank TSMC and Samsung, and Micron for their support,” he said.
The comments highlighted the growing importance of advanced memory alongside AI processors as companies expand investments in artificial intelligence infrastructure.
Memory demand remains central to AI expansionTesla's remarks came as Musk discussed the company's plans to build Terafab, a semiconductor development facility intended to accelerate production of custom AI chips for projects including Optimus.
According to Musk, the facility would combine logic, memory, lithography mask development, packaging and testing in one location to shorten chip development cycles.
His comments underscored that access to advanced memory has become a critical requirement for AI systems, which require large amounts of high-speed memory to train and deploy increasingly sophisticated models.
Tesla stock, however, fell 13% on Thursday as adjusted earnings fell short of expectations.
For investors, Alphabet's increased capital spending plans and Tesla's comments reinforced expectations that demand for memory chips could remain strong as AI infrastructure investments continue across the technology industry.
Although most people only interact with artificial intelligence (AI) through generative AI tools like ChatGPT, there are tons of working parts behind the scenes that make it happen.
In the earlier stages of the current AI mania we're experiencing, attention was on the companies making graphics processing units (GPUs) and AI accelerators. Then, attention went to companies building out data centers and other infrastructure. Now, it seems the focus has gotten a bit more niche, with memory chip makers among the hottest (and most volatile) stocks on the market.
Demand for memory hardware has shot up in the past couple of years, far outpacing supply. And while a few key companies are working to address it, it's not an issue that'll be fixed overnight.
Image source: Getty Images.
At the right place at the right time SK Hynix (SKHY +4.89%), Micron Technology (MU +3.28%), and Sandisk (SNDK +4.89%) are three of the key memory and storage hardware companies in the world, and they've found themselves in the right place at the right time.
As AI continues to scale, it requires much more memory and storage. Data centers are filled with countless pieces of this hardware, and as big tech companies spend trillions in the near future building them and other AI infrastructure, their need for it has only grown.
Of course, this supply shortage isn't ideal for data center operators. But for the memory companies making these products, the law of supply and demand has them bringing in cash like never before as they raise prices and flex their pricing power. Here's how much each company increased its revenue and net income in their latest quarters:
CompanyRevenue GrowthNet Income GrowthSK Hynix198%398%Micron346%1,223%SanDisk233%8,646%* Table by author. Growth is year over year. *Sandisk went from a $43 million loss to $3.675 billion in non-GAAP net income.
They're surely enjoying the cash, but they're also focused on addressing the supply problem. The short-term boost is cool; sustainability is much better. And with growing capital expenditure plans, it's clear they understand that as well.
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Each company has something good working in its favor SK Hynix only began trading on a U.S. stock exchange (the Nasdaq) on July 10, so it's closer to an initial public offering (IPO) stock, although it has been trading on the Korean Exchange since December 1996. The company is the market leader in high-bandwidth memory (HBM), which is working out in its favor, including inking a multiyear technology partnership with Nvidia that Nvidia says aligns with its "AI infrastructure roadmap."
Micron, up 174% this year (as of market close on July 20), is much smaller than SK Hynix in terms of market share, but it has been posting strong financial results. Its $18.3 billion in free cash flow in its most recent quarter (ended May 28) was up 165% year over year, and its gross margins increased by 10 percentage points from the previous quarter to 84.9%.
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After spinning off from Western Digital in February 2025 and becoming a stand-alone, pure-play storage company, SanDisk has been one of the best-performing stocks in all of the market. Its stock is up nearly 3,700% since the spin-off and 405% this year.
It operates on a smaller scale than the other two, but its financial results have been just as impressive. In the past year, its free cash flow has increased by 1,243% to $2.96 billion, and its non-GAAP gross margins went from 22.7% to 78.4%.
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Is now the time to invest in memory stocks? The memory hardware industry is booming right now, but it's also one of the more cyclical tech industries around. Once supply catches up to demand -- and it will catch up -- and companies can no longer command premium prices, the financial growth we see now will likely slow down, and you'll see some investors jumping ship.
There's a lot of speculation right now in memory stocks, which is a large part of why they've been so volatile. If you're more on the risk-averse side, I would avoid memory stocks right now because of the volatility. If you can stomach the volatility, then SK Hynix and Micron look much better priced than SanDisk from a value standpoint and are "safer" choices.
However, a better route for most people would be investing in an exchange-traded fund (ETF) that holds the companies. The Roundhill Memory ETF (DRAM +1.51%) is a good example, but it's much more of a supplemental piece than a portfolio staple.
Jimmy Chang, Chief Investment Officer at Rockefeller Global Family Office, used CNBC’s Closing Bell Overtime to deliver a pointed warning ahead of Big Tech earnings: the record AI CapEx cycle may already be masking an overbuild that markets have not yet learned to see. Chang argued that strong earnings are already priced in and the real risk lies in CapEx guidance tone, flagging Microsoft (NASDAQ: MSFT | MSFT Price Prediction) as the pivotal earnings report. “Any sign of caution could lead to a rotation of money out of some of these CapEx beneficiaries,” he said.
The numbers behind the concern are staggering. Microsoft told analysts on its most recent call that Q4 2026 CapEx will exceed $40 billion, with calendar-year spending pointed toward roughly $190 billion. CFO Amy Hood disclosed that roughly two-thirds of CapEx is for short-lived assets, primarily GPUs and CPUs. That mix is what worries Chang: the depreciation clock on AI silicon runs fast, and revenue conversion lags the spend.
Microsoft’s Q3 FY26 CapEx of $30.88 billion was up 84.39% year over year, funding an AI business now at a $37 billion annual run rate. Alphabet (NASDAQ: GOOGL) has guided 2026 CapEx to $180 billion to $190 billion, with Q1 spend alone hitting $35.67 billion, up 107%. Amazon (NASDAQ: AMZN) plans roughly $200 billion in 2026 CapEx, a figure that has already crushed trailing free cash flow to $1.2 billion, a 95% drop.
The Moat Question Chang’s sharpest point targeted competitive dynamics. With SpaceX entering hyperscaler infrastructure and Meta reportedly weighing the same, he argued that “the moat is not that strong.” That view was echoed in retail forums. A Reddit thread titled “Nikkei Investigation Finds $1.65 Trillion In Off-Balance-Sheet Commitments Across Five Major Tech Companies” received 165 upvotes as sentiment around Alphabet turned bearish. Meanwhile, sentiment toward MSFT on r/investing swung from 82 (very bullish) to 30 (bearish) over four days, with the top thread arguing that “AI infrastructure depreciates way faster than people realise, and enterprise adoption is softening.”
The GPU and Memory Angle NVIDIA (NASDAQ: NVDA) NVIDIA (NASDAQ: NVDA) is the direct beneficiary. Q1 FY27 revenue reached $81.62 billion, accompanied by $119 billion in supply-related commitments. Jensen Huang called the AI buildout “the largest infrastructure expansion in human history.” Chang argued that investors should watch for “aggressive double, triple ordering” as an early warning that demand is being pulled forward.
Micron Technology (NASDAQ: MU) sits at the other end of the AI supply chain. Fiscal Q3 2026 revenue surged 345.72% year over year, with non-GAAP gross margin reaching 84.9%, according to Micron’s SEC filing. Chang’s co-panelist raised a subtler concern: chips fabricated in the United States could carry lower margins than those produced overseas, a structural headwind investors may not be pricing in given Micron’s 240.36% year-to-date gain. Shares trade at a forward P/E of 5, appearing inexpensive on paper, but that valuation depends on the company sustaining its guided 86% gross margin.
What to Watch Rockefeller’s CIO thinks that a more measured CapEx outlook from any single hyperscaler could trigger a rotation back into lagging stocks as expectations for free cash flow improve. Keep an eye on fiscal-year CapEx guidance, not the headline earnings beats.
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