Annual program honors practices delivering highest quality care and exceptional patient experience in Elevance Health’s affiliated health plans across the country
INDIANAPOLIS--(BUSINESS WIRE)--Elevance Health, along with its affiliated health plans, today announced 45 distinguished medical practices and health systems to be honored in its annual Care Provider Recognition Program. The program spotlights the top one percent of primary care providers in Elevance Health’s nationwide affiliated health plan network of about 7,200 value-based care and evaluated provider partners.
The program spotlights the top one percent of primary care providers in Elevance Health’s nationwide affiliated health plan network of about 7,200 value-based care and evaluated provider partners.
Share The recognition highlights primary care providers who exhibit excellence in delivering high-quality, coordinated care for members across Elevance Health affiliated employer-sponsored, Medicaid, and Medicare Advantage health plans. Selections are based on key performance measures, including preventive care screenings, immunization rates, chronic disease management, and medication adherence, as well as a strong commitment to continuous learning and clinical excellence.
“This program recognizes primary care providers, the quarterbacks of our healthcare system, who are leading the way by delivering coordinated, personalized care that enhances the lives of patients by improving quality and outcomes,” said Dr. Catherine Gaffigan, President of Health Solutions at Elevance Health. “These primary care providers are delivering measurably superior preventive care and care coordination while displaying exceptional commitment to meeting the unique needs of patients and the communities they serve.”
The Care Provider Recognition Program honorees are:
California: Cedars-Sinai Seoul Medical Group Southland Advantage Medical Group Sutter Health Colorado: OnPoint Medical Group Connecticut: Connecticut Children's Care Network Florida: Vaconcello-Cohen MD Georgia: Center for Primary Care Health Partners Network Peds Care, P.C. Kentucky: Family Practice Associates of Lexington Scott A. Young, MD VillageMD Maryland: Hashim S. Hashim, MD Maine: InterMed New Hampshire: Ammonoosuc Community Health Services North Country Primary Care New York: Charles B. Wang Community Health Center Saratoga Hospital Summit Health WestMed Medical Group Zvi M. Eckstein, MD, PC Ohio: Central Ohio Primary Care Community Health Care, Inc. Family Health Services of Darke County Integrated Health Collaborative Pioneer Physicians Network Primary Care Internists, Inc. Tennessee: Pediatric Partners of Nashville Texas: Accent Family Health Care Leon Pediatrics of Arlington and Midlothian Virginia: AAA Pediatrics Charlottesville Internal Medicine Fortify Children's Health Franconia Pediatrics Gloti Rodriguez, MD Hispanic American Pediatric Associates medicsUSA Metropolitan Pediatrics Pediatric Associates of Springfield Sacoto Pediatrics Van Dorn Pediatrics Virginia Care Partners Wisconsin: Associated Physicians OakLeaf Clinics SSM Health Monroe Clinic Medical Group Learn more about the honorees and the Care Provider Recognition Program.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 104 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
By combining clinical programs, digital innovation and community partnerships, the company aims to improve wellbeing and reduce crises, ER visits and total cost of care for mental health
INDIANAPOLIS--(BUSINESS WIRE)--Despite growing awareness, mental health concerns remain difficult to navigate and often lead to avoidable crises, costly emergency room visits, and long-term strain on individuals, families, and an already overburdened healthcare system. With nearly one in five Americans experiencing a diagnosable mental health condition each year, the need for funding and systemic improvement has never been greater.
Too often, individuals struggle to find timely, affordable support, leading to delayed treatment, worsening conditions, and avoidable high-cost interventions like ER visits or inpatient stays. Improving access to early, appropriate care is critical.
Share That’s why Elevance Health is focused on addressing some of the most urgent challenges in mental health today: the complexity of navigating care and rising costs. Too often, individuals struggle to find timely, affordable support, leading to delayed treatment, worsening conditions, and avoidable high-cost interventions like emergency room visits or inpatient stays. Improving access to early, appropriate care is critical.
With $23 million in active Foundation grants supporting community-based behavioral health organizations nationwide, Elevance Health is advancing a whole health approach that connects affordability, access, and quality. By combining evidence-based clinical programs, human-centered digital care navigation, and strong community partnerships, the company is helping people find the right care sooner, understand their benefits and costs, and stay connected to support in the moments that matter most.
“Mental health is health, and connecting people to the right care early can make all the difference in their health outcomes and cost,” said Shantanu Agrawal, MD, Chief Health Officer of Elevance Health. “We’re focused on being a trusted guide, helping people find care, understand their benefits, and avoid treatment delays that can lead to more serious and costly interventions.”
Across its affiliated health plans and Carelon services, Elevance Health is simplifying how individuals find care, understand their benefits, and stay engaged—using digital tools, personalized support, and proactive outreach to ease stress during vulnerable moments.
Elevance Health Foundation’s community-based grants are also focused on simplifying the mental health journey through early engagement, proactive support, and continuity of care. By funding trusted organizations already embedded in local communities, this ensures people don’t fall through the cracks—especially before challenges escalate into crisis.
Community Investments Driving Early Intervention and Access
In the past year, Elevance Health Foundation has supported initiatives across the country that improve access to care, quality of treatment and prevention/early intervention (especially for youth):
Indiana: $3.4 million to organizations like Youth First, Inc., which provides access to mental health mentors for 107 rural, suburban, and urban schools across 13 counties, stretching from Evansville to just south of Indianapolis. Through this program 47,600 Indiana youth have access to prevention and early intervention programs. Missouri: $273,553 to organizations like Shatterproof to address the stigma and discrimination in receiving addiction treatment and equips healthcare professionals to provide appropriate support to socially vulnerable communities. Georgia: $2.9 million to organizations like Sostento to ensure providers have tools to remove access barriers to mental health services through: 1,100 no-cost health access rides; 2,544 patient screenings, assessments, and referral options to get the treatment they need. California: $3.7 million to organizations like Ritter Center Behavioral Health, which launched a mobile behavioral health van to increase care coordination and harm reduction that will reach 3,617 individuals needing treatment in Marin County over 4 years. Nevada: $252,295 to organizations like Boys & Girls Clubs of America’s Youth Mental Health Partnership, which offers prevention and intervention methodologies to strengthen youth emotional and mental wellness. New York: $4.6 million to organizations like NYU Langone Family Health Centers and the Prevention Education Partnership (PEP) to strengthen school-based overdose prevention through its PEP Talks program training 500 school staff, reaching 350 schools across New York City, and expanding naloxone education, emergency response planning, and connections to behavioral health support for students and families. Ohio: $3.7 million to organizations like Signature Health, which has expanded equitable access to care through Patient Navigators to foster trust and empowerment for people living with substance use disorders. Virginia: $3 million to organizations like Communities in Schools of the Appalachian Highlands, which provides individualized, targeted case management to over 5,500 students throughout a network of 115 schools across Southwest Virginia. “Through these actions, we’re moving beyond mental health awareness, making care easier to access, easier to understand, and easier to stay connected to,” said Agrawal. “Real progress means early intervention, trusted community partnerships and systems that break down silos for people who need care – for wherever they are in their mental health journey.”
As a long-time partner of Mental Health America (MHA), Elevance Health offices across the U.S. – including locations in Indiana, Georgia, Ohio, Virginia, Maine, California and Nevada – will be lit green throughout the month of May in support of MHA’s Mental Health Month campaign “More Good Days, Together” and to encourage people to take care of their personal well-being.
For more information on Elevance Health’s commitment to mental health and community-based support, visit www.elevancehealth.com.
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 105 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
About Elevance Health Foundation
Elevance Health Foundation is the philanthropic arm of Elevance Health Inc. The Foundation works to improve the health of the socially vulnerable through partnerships and programs in our communities with an emphasis on maternal-infant health; behavioral health; and food as medicine. Through its key areas of focus, the Foundation also strategically aligns with Elevance Health’s focus on community health and becoming a lifetime, trusted health partner that is fueled by its purpose to improve the health of humanity. To learn more about Elevance Health Foundation, please visit www.elevancehealth.foundation or follow us @ElevanceFND on X and Elevance Health Foundation on Facebook.
Major health insurers appear to be off to an encouraging start this year — but a crucial test for the sector is still ahead.
Solid first-quarter results have helped lift investor sentiment, even as insurers continue to grapple with higher medical costs. Companies including UnitedHealth, Elevance, Cigna and Humana all beat estimates for the quarter, with some hiking their 2026 outlooks.
Those results were largely expected due to seasonal factors such as a milder flu season and weather disruptions that temporarily suppressed medical costs, said Barclays analyst Andrew Mok. A more meaningful signal, Mok said, is that insurers strengthened medical reserves — money set aside to pay future claims — adding a cushion that could support their outlooks.
But there's still a "huge caveat," according to Baird analyst Michael Ha.
Insurers have incomplete data on medical costs in the first quarter due to a lag in claims processing, as expenses like hospital stays and procedures can take one or two months to be fully reviewed and reimbursed. By the end of the quarter, companies may only have "real hard claims data" from January, so "we always tell investors to take the first quarter with a grain of salt," Ha said.
That sets up the second quarter as the real proving ground. As those delayed claims come in, insurers and investors can get a clearer read on whether medical costs are actually tracking as expected, whether companies have priced their plans appropriately and how their earnings could be shaping up for the rest of the year.
"The second quarter is the real underwriting hurdle to pay attention to as you get more claims data that crystallizes your performance for the year in a bigger way," Ha said. "If you clear that hurdle, that could imply positive earnings implications for 2026."
A solid first quarter Beneath the surface, insurers' stronger start to the year also reflects steps they've taken to rein in costs after two years of significant pressure.
Ha said he attributes the quarterly beats to "conservative pricing" for key plans like Medicare Advantage. Those privately run Medicare plans have been a driving source of runaway medical costs for many insurers, as seniors use more medical services after the pandemic.
Companies have exited less profitable markets and shrunk membership, while also adjusting pricing and benefits to better align with rising medical expenses, Ha noted. For example, UnitedHealth in October said it will stop offering Medicare Advantage plans in 109 U.S. counties starting in 2026, impacting 180,000 members who had to look for new insurance options.
"Heading into this year, companies came in with a lot of inherent pricing cushion," Ha said.
Those efforts are beginning to show up in metrics such as medical loss ratios — a key measure of medical costs as a share of premiums — which came in lower than the Street had expected for several companies in the first quarter.
Barclays' Mok noted that first-quarter results were supported by strength across all major segments. In commercial coverage, higher premiums helped offset rising medical costs, while offering fewer benefits boosted Medicare performance, he said
Mok also said improved cost controls and stabilizing medical costs contributed to "surprisingly solid results" in Medicaid. He called that an "encouraging sign," even as states tighten eligibility and Medicaid enrollment shrinks.
Still, the industry isn't out of the woods yet.
Key test in the second quarterThe question is whether those improvements will hold as more complete data comes in during the second quarter.
Because of the lag in medical claims processing, insurers rely more heavily on estimates when reporting first-quarter results. Companies receive more medical claims by the second quarter, giving them a clearer read on underlying cost trends.
"Seeing how those claims develop into the second quarter will really help you understand whether you've priced your plans correctly," Mok said.
Ha said the second quarter will be especially key for Humana, which expects Medicare Advantage membership to grow 25% in 2026 while keeping benefits stable.
He said CVS Health followed a similar pattern in the second quarter of 2024, growing Medicare Advantage membership while maintaining benefits. But the company later missed its medical loss ratio targets by a wide margin as costs came in higher than expected.
While CVS is not a direct comparison, Ha said a repeat of its disappointing results has become a potential concern heading into Humana's second-quarter results.
The Affordable Care Act marketplace is also closely watched in the second quarter for insurers like Centene, Molina and Elevance, Ha added. A key data point is the Wakely analysis, released in late June, which helps determine whether insurers' revenue assumptions match the actual health risk profile of enrolled members, he said.
Even small shifts in enrollment or member health can lead to meaningful earnings gains or losses, Ha added.
Investors will be watching medical loss ratios closely, along with any changes to full-year outlooks as second-quarter results come in.
For now, insurers are benefiting from a favorable setup, but the coming months will determine whether that momentum is sustainable.
On May 08, 2026, we conducted a DCF analysis for Elevance Health Inc ELV to assess its intrinsic value in the context of its recent price performance. Over the past month, ELV has seen a significant increase of 17.2%, although it remains down 7.6% over the past year. Here are some key points from our analysis:
DCF Earnings-based intrinsic value of $643.28 compared to the current price of $372.92, indicating a margin of safety of 42.0%. DCF Free Cash Flow-based intrinsic value of $396.68, suggesting a fair valuation. GF Score™ of 87/100, indicating a high reliability of the DCF inputs. What Is ELV Worth? DCF Earnings-Based Model The DCF earnings-based model for Elevance Health Inc ELV employs a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project the company's earnings growth over the next ten years, followed by a terminal phase where growth stabilizes. The assumptions used in this model are as follows:
Parameter Value Current EPS (TTM, excl. non-recurring) $30.78 10-Year Growth Rate 14.0% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we anticipate that EPS will grow at a rate of 14.0% per year for the next ten years, which is then discounted at a rate of 11%. The calculated value for this growth stage is $357.47 per share. In the second stage, we assume a terminal growth rate of 4% for the following ten years, also discounted at 11%, resulting in a terminal stage value of $285.80 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 14.0%, discounted at 11% $357.47 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $285.80 Intrinsic Value Growth + Terminal $643.27 With a current price of $372.92 compared to the intrinsic value of $643.28, Elevance Health Inc is significantly undervalued, presenting a margin of safety of 42.0%. It is important to note that GuruFocus uses EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can visit the ELV DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF) based DCF model provides an alternative perspective on Elevance Health Inc's valuation, yielding an intrinsic value of $396.68. When comparing this with the earnings-based intrinsic value of $643.27, we find that the two models diverge in their conclusions. The FCF-based model indicates that the stock is fairly valued, with a margin of safety of 6.0%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Elevance Health Inc is calculated at $518.40, providing a third perspective on the company's valuation. GF Value™ is a proprietary measure from GuruFocus that takes into account historical trading multiples, past business growth, and future performance estimates. When we consider the three models—DCF earnings, DCF FCF, and GF Value™—we see that while the DCF earnings model suggests significant undervaluation, the FCF model indicates fair valuation, and GF Value™ also suggests undervaluation. For more insights, visit the GF Value™ page.
What Does ELV's GF Score™ Tell Us? The GF Score™ for Elevance Health Inc is 87/100, which ranks stocks based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns, as backtested from 2006 to 2021. The current predictability rank for ELV is 2/5 stars, indicating that the DCF model may be less reliable for this stock. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 For more detailed information, you can visit the ELV stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings, such as Elevance Health Inc's 2/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in our analysis is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, we observe a mixed picture regarding Elevance Health Inc's valuation. The DCF earnings model suggests significant undervaluation, while the FCF model indicates fair valuation, and GF Value™ also points to undervaluation. Overall, investors should consider these varying perspectives when evaluating the stock. For the full DCF analysis, visit the ELV DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ELV's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 12, 2026, we present a DCF analysis for Elevance Health Inc ELV , a company currently trading at $381.75. The stock has shown mixed performance, with a year-to-date increase of 8.5% but a decline of 6.4% over the past year. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $643.27 compared to the current price of $381.75, indicating a margin of safety of 40.7%. DCF Free Cash Flow (FCF)-based intrinsic value of $396.68, suggesting a fair valuation with a margin of safety of 3.8%. GF Score™ of 87/100, indicating a high reliability of the DCF inputs. What Is ELV Worth? DCF Earnings-Based Model The DCF earnings-based model for Elevance Health Inc is based on a two-stage growth approach. In the first stage, we assume a robust growth rate of 14.0% for the next 10 years, followed by a terminal growth rate of 4% for the subsequent 10 years. The discount rate used for this analysis is 11%, which is derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $30.78 10-Year Growth Rate 14.0% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 14.0%, discounted at 11% $357.47 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $285.80 Intrinsic Value Growth + Terminal $643.27 The current price of $381.75 compared to the intrinsic value of $643.27 indicates that the stock is significantly undervalued, with a margin of safety of 40.7%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further details, you can visit the ELV DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF)-based intrinsic value for Elevance Health Inc is calculated at $396.68. When comparing this with the earnings-based intrinsic value of $643.27, the two models provide differing perspectives on valuation. The FCF model suggests that ELV is fair valued with a margin of safety of 3.8%, indicating a more cautious outlook compared to the earnings-based model.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Elevance Health Inc is calculated at $518.29, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF earnings model indicates significant undervaluation, the FCF model suggests fair valuation, and the GF Value™ also indicates undervaluation. This shows a consensus among the models that ELV is undervalued overall. For more information, visit the GF Value™ page.
What Does ELV's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021.
Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 The predictability rank is 2/5 stars, indicating that the DCF model may be less reliable for this stock due to its lower predictability. For more details, visit the ELV stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Elevance Health Inc, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.
What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—provide a comprehensive view of Elevance Health Inc's valuation. The earnings-based model suggests significant undervaluation, while the FCF model indicates fair valuation. The GF Value™ also points to undervaluation, suggesting a consensus among the models that ELV is undervalued.
For the full DCF analysis, visit the ELV DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ELV's intrinsic value based on DCF?
Answer: earnings-based $643.28, FCF-based $396.68
Is ELV overvalued or undervalued?
Answer: Based on the DCF and GF Value™ consensus, ELV is undervalued.
How reliable is the DCF model for ELV?
Answer: The predictability rank of 2/5 indicates that the DCF model may be less reliable for ELV.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 12, 2026, Elevance Health Inc ELV shares rose 4.0% today, bringing the current price to $393.30. The stock has experienced a 52-week range between $273.71 and $424.24, indicating significant volatility over the past year.
GF Value™ verdict: Current price of $393.30 is 24.1% below the GF Value™ of $518.29.GF Score™: 87/100, indicating a strong overall assessment.Most notable signal: Insiders bought $0.9M and sold $0.9M in the last 3 months, suggesting a balanced view on the stock's current value. Is ELV Overvalued or Undervalued? The current market price of Elevance Health Inc ELV at $393.30 is significantly below the GF Value™ estimate of $518.29, suggesting that the stock is undervalued by approximately 24.1%. This margin of safety provides a potential opportunity for investors looking for stocks that may have upside potential. According to the GF Valuation label, ELV is considered "Modestly Undervalued," which further corroborates the idea that the stock may be trading below its intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation presents a favorable opportunity, investors should still exercise caution, as market conditions and company performance can change. The 4.0% increase in stock price today, along with the 26.2% rise over the past month, indicates positive momentum, but it is also essential to monitor any macroeconomic factors that could impact the healthcare sector.
How Does ELV's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.7x 18.4x Forward P/E 14.6x N/A The current P/E ratio of 16.7x is below its 5-year median P/E of 18.4x, indicating that the stock is trading at a lower valuation compared to its historical performance. Additionally, the forward P/E of 14.6x suggests that analysts expect earnings growth in the future. This P/E analysis aligns with the GF Value™ verdict of being undervalued, reinforcing the premise that ELV offers a compelling valuation relative to its historical metrics.
What Does ELV's GF Score™ Tell Us? Metric Rating GF Score™ 87 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 The GF Score™ for Elevance Health Inc is 87/100, indicating a strong overall assessment of the stock. The strongest areas are in Growth (9/10) and Profitability (8/10), suggesting that the company is well-positioned for sustainable growth and has strong profit margins. However, the Financial Strength score of 5/10 indicates a need for improvement in this area, and the low Momentum rank of 4/10 suggests that the stock may not be experiencing favorable trends at this time. Overall, while the company shows excellent growth potential, attention should be paid to financial stability and market momentum.
What Are Insiders Doing with ELV Stock? In the last three months, insider activity for Elevance Health Inc has shown a balanced approach, with insiders buying $0.9 million and selling $0.9 million worth of shares. This pattern suggests that insiders are neither overly bullish nor bearish on the stock at this time. The equal buy and sell activity may indicate a cautious optimism regarding the company's future prospects, which could be a sign for investors to closely monitor the company's performance moving forward.
What This Means for Investors Based on the GF Value™ assessment, Elevance Health Inc ELV is currently undervalued. The significant margin of safety presents a potential opportunity for investors, though awareness of market conditions and financial health is essential. Continuous monitoring of the company's performance and insider activity will be important as the market evolves.
For the complete analysis, visit the Elevance Health Inc ELV stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ELV's GF Score™?
ELV's GF Score™ is 87/100, indicating a strong overall assessment based on key financial aspects.
Is ELV overvalued or undervalued?
ELV is considered undervalued as it is trading at a 24.1% discount to its GF Value™ of $518.29.
What is ELV's P/E ratio?
The P/E ratio (TTM) for ELV is 16.7x, which is below its 5-year median P/E of 18.4x, suggesting that it is trading at a lower valuation historically.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 19, 2026, we present a detailed DCF analysis for Elevance Health Inc ELV , a company currently trading at $394.07. The stock has shown a strong price performance recently, with a 1-month increase of 22.0% and a year-to-date gain of 13.1%. However, over the past year, it has experienced a slight decline of 0.2%. Here are some key points from our analysis:
DCF Earnings-based intrinsic value of $643.27 vs current price of $394.07 (margin of safety: 38.7%) DCF Free Cash Flow-based intrinsic value of $396.68 vs current price (second opinion: fair valued with 0.7% margin of safety) GF Score™ of 86/100 indicates a strong reliability of the DCF inputs What Is ELV Worth? DCF Earnings-Based Model The DCF earnings-based model for Elevance Health Inc ELV utilizes a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project the earnings growth over the next 10 years, followed by a terminal growth phase. The assumptions used in this model are as follows:
Parameter Value Current EPS (TTM, excl. non-recurring) $30.78 10-Year Growth Rate 14.0% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage (Years 1-10), we expect the EPS to grow at a rate of 14.0% per year, which is then discounted at a rate of 11%. The calculated value for this growth stage is $357.47 per share. In the second stage (Years 11-20), the growth rate slows to a terminal rate of 4%, also discounted at 11%, resulting in a terminal stage value of $285.80 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 14.0%, discounted at 11% $357.47 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $285.80 Intrinsic Value Growth + Terminal $643.27 Comparing the current price of $394.07 to the intrinsic value of $643.27 indicates that Elevance Health Inc is significantly undervalued, with a margin of safety of 38.7%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the ELV DCF Calculator.
What Does the Free Cash Flow DCF Say? The Free Cash Flow (FCF) based intrinsic value for Elevance Health Inc is calculated at $396.68. When comparing this to the earnings-based intrinsic value of $643.27, we observe a significant difference. The FCF-based valuation indicates that the stock is fair valued, with a margin of safety of only 0.7%. This suggests that while the earnings-based model shows a strong undervaluation, the FCF model provides a more conservative perspective.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Elevance Health Inc is calculated at $509.83, providing a third perspective on the valuation of the stock. GF Value™ is GuruFocus' proprietary measure that takes into account historical trading multiples, past business growth, and future performance estimates. When we compare all three models—DCF earnings, DCF FCF, and GF Value™—we find that they provide a range of insights, with the DCF earnings model indicating significant undervaluation, while the FCF model and GF Value™ suggest a more balanced view. For more details, visit the GF Value™ page.
What Does ELV's GF Score™ Tell Us? The GF Score™ for Elevance Health Inc is 86/100, indicating strong potential for higher long-term returns based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated better returns. The predictability rank for ELV is 2/5 stars, suggesting that the DCF model may be less reliable for this stock. Below is a summary of the GF Score™ metrics:
Metric Rating GF Score™ 86/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 4/10 For more information, visit the ELV stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings, such as Elevance Health Inc's 2/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future market conditions.
What This Means for Investors In synthesizing the results from the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that Elevance Health Inc presents a complex picture. While the DCF earnings model indicates significant undervaluation, the FCF model and GF Value™ suggest a more balanced view of fair valuation. Overall, investors should consider these varying perspectives when evaluating ELV's stock. For the full DCF analysis, visit the ELV DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ELV's intrinsic value based on DCF?
Answer: earnings-based $643.28, FCF-based $396.68
Is ELV overvalued or undervalued?
Answer: Based on the DCF earnings model, ELV is undervalued, while the FCF model suggests it is fair valued.
How reliable is the DCF model for ELV?
Answer: The predictability rank of 2/5 indicates that the DCF model may be less reliable for ELV.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Pharmacy benefit managers (PBMs) sit at the chokepoint of U.S. drug distribution. They negotiate rebates, design formularies, adjudicate claims, and steer patient adherence. Modern artificial intelligence (AI) is designed to compress each of these high-volume, rules-driven processes. As autonomous prior authorization, real-time formulary optimization, and AI-driven rebate analytics scale, the Big Three PBMs face a structural threat to their legacy margin pools, while AI-native vendors and adjacent platforms stand to benefit. Below are five stocks ranked by the materiality of that disruption, from the most exposed (loser) to the most leveraged (winner).
1. Cigna: Most Exposed to PBM Disruption Cigna Group (NYSE: CI | CI Price Prediction) owns Express Scripts in its Evernorth unit, now its dominant earnings engine. Evernorth generated $58.44 billion in Q1 2026 revenue, with Pharmacy Benefit Services alone at $33.00 billion (+11% YoY). Cigna Healthcare shrank 21% after the HCSC Medicare divestiture. Adjusted EPS of $7.79 beat estimates for the fourth consecutive quarter, and management raised FY26 adjusted EPS guidance to at least $30.35.
Here’s the risk: Cigna flagged “expected lower contributions from large Pharmacy Benefit Services client relationships,” pharmacy customer attrition, and “drug pricing changes or industry pricing benchmark shifts.” AI-driven transparency tools and the company’s rebate-free pharmacy benefit model are reshaping the rebate economics that historically powered Express Scripts. Shares are up just 4.2% year to date at $286.69, trading at a forward price-to-earnings (P/E) near 9, reflecting investor caution despite operational beats.
2. Waystar: The AI-Native Winner Waystar (NASDAQ: WAY) is the clearest beneficiary of healthcare’s payment-workflow automation. Q1 2026 revenue rose 22.4% year over year to $313.87 million, with subscription revenue up 38% and adjusted EBITDA margin expanding to 43.1%. Net revenue retention reached 111%, and clients generating more than $100K LTM reached 1,433 (+15% year over year). R&D spending jumped 66% year over year to $18.4 million as the company integrates the Iodine clinical-AI acquisition and rolls out its AI-powered recoupment solution.
CEO Matt Hawkins says Waystar is “leading healthcare’s AI transformation by advancing the autonomous revenue cycle.” Yet the stock is down 43.4% year to date to $18.55, creating a gap between its fundamentals and its share price. The analyst consensus target stands at $34.74, with a forward P/E of 13.
3. CVS Health: Defensive Deployer of AI CVS Health (NYSE: CVS) operates Caremark, which produced $48.24 billion (+11.0% year over year) in Q1 2026 Health Services revenue. Q1 adjusted EPS of $2.57 beat consensus by 16.47%, and FY26 adjusted EPS guidance was raised to $7.30 to $7.50. CVS launched Health100, a Google Cloud AI-powered subsidiary, while Aetna now processes 83% of prior authorizations in real time, eliminating over 1 million provider calls.
Management cited pharmacy reimbursement pressure and client price concessions compressing Health Services margins as headwinds. CVS is up 20.1% year to date and 53.5% over one year to $95.99. That suggests investors credit CEO David Joyner’s AI-led integration strategy.
4. UnitedHealth: Scale Cuts Both Ways UnitedHealth Group (NYSE: UNH) houses Optum Rx, the largest PBM by volume. Q1 2026 Optum Rx revenue grew just 2% to $35.74 billion, a sharp deceleration from 16% growth in Q3 2025. Consolidated revenue rose 2.0% to $111.72 billion, with adjusted EPS of $7.23 beating by 9.38%. Medicare Advantage membership fell 965,000 in the quarter, and Justice Department scrutiny remains a structural overhang.
CEO Stephen Hemsley is funding “substantial artificial intelligence and cybersecurity investments” across prior authorization, interoperability, and pharmacy workflows. The pending Alegeus acquisition would extend Optum into consumer-directed healthcare accounts. Shares trade at $391.13, up 18.5% year to date, with FY26 adjusted EPS guidance raised to greater than $18.25.
5. Elevance Health: Smallest PBM Footprint, Most Insulation Elevance Health (NYSE: ELV) operates CarelonRx, the smallest integrated PBM covered here. CarelonRx Q1 2026 revenue of $10.60 billion (+4.8% year over year) is dwarfed by the Health Benefits segment at $42.49 billion. Adjusted EPS of $12.58 beat by 16.78%, and FY26 adjusted EPS guidance was raised to at least $26.75.
CEO Gail Boudreaux pointed to “AI-enabled digital solutions” as a key affordability lever. The principal risk is regulatory: a $935 million accrual tied to CMS Medicare Advantage risk adjustment data, and a 15.8% year-over-year drop in Medicare Advantage membership. Shares trade at $394.07, up 12.4% year to date.
The Big Three gatekeepers are under siege as AI-native newcomers dismantle legacy profit margins. See which healthcare giants are pivoting and which are most exposed to the $58 billion fallout. Conclusion AI is unbundling the PBM value chain. Companies with the heaviest pharmacy-benefit revenue concentration, led by Cigna, carry the most exposure to rebate compression, transparency mandates, and client churn. Diversified incumbents like CVS, UnitedHealth, and Elevance can defend margins by deploying AI inside prior authorization, claims, and adherence workflows. However, Optum Rx’s growth deceleration signals that scale alone is no longer a moat. Waystar offers the cleanest direct exposure to the automation tailwind, though execution and leverage at 2.7x net debt remain key variables. Watch FY26 guidance revisions, Justice Department developments, and rebate-model adoption rates to determine which side of the AI ledger each company lands on.
A month has gone by since the last earnings report for Elevance Health (ELV - Free Report) . Shares have added about 12.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Elevance Health due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
ELV Beats Q1 Earnings Estimates on Rising Net Investment Income
Elevance Health reported first-quarter 2026 adjusted earnings per share (EPS) of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year.
Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%.
The strong quarterly results benefited on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by scaling risk-based services, while Health Benefits saw increased premium yields. However, the upside was partly offset by a decline in overall medical membership and an elevated expense level.
ELV’s Q1 Operational UpdateMedical membership of Elevance Health was around 45.4 million as of March 31, 2026, which dipped 0.9% year over year. The decrease was due to a decline in Medicaid, Medicare Advantage and Commercial Risk-Based membership. The reported figure beat the Zacks Consensus Estimate of 44.1 million and our estimate of 44.2 million.
Premiums totaled $41 billion in the quarter under review, which improved 0.3% year over year and surpassed our estimate of $39.6 billion. Product revenues grew 7.2% year over year to $6.2 billion. The metric beat the Zacks Consensus Estimate and our estimate of $6.1 billion.
Net investment income rose 29.7% year over year to $765 million. The metric surpassed the consensus mark of $480.6 million and our estimate of $456.6 million. The Adjusted operating margin of 6.5% deteriorated 20 basis points (bps) year over year.
Total expenses escalated 3.9% year over year to $47.9 billion in the first quarter, higher than our estimate of $45.5 billion. The year-over-year increase was due to higher benefit expenses, operating expenses and interest expenses.
The operating expense ratio came in at 12.8%, which deteriorated 190 bps year over year. The benefit expense ratio deteriorated 40 bps year over year to 86.8%.
Q1 Segmental Results of ELVHealth BenefitsThe unit recorded operating revenues of $42.5 billion in the first quarter, which rose 2.6% year over year and beat the Zacks Consensus Estimate of $40.9 billion as well as our estimate of $40.8 billion. The segment benefited from increased premium yields.
The unit recorded an operating gain of $2.2 billion, which fell 2.7% year over year. However, it beat the consensus mark of $1.9 billion. The operating margin deteriorated 30 basis points year over year to 5.1%.
CarelonThe segment’s operating revenues rose 7.9% year over year to $18 billion in the quarter under review, beating the Zacks Consensus Estimate of $17.5 billion and our estimate of $17.1 billion. The year-over-year increase was driven by higher CarelonRx product revenues and the scaling of risk-based capabilities in Carelon Services.
The unit’s operating gain of $1.1 billion fell 3.8% year over year. The operating margin deteriorated 70 bps year over year to 5.9%.
Corporate & OtherOperating revenues came in at $4 million in the first quarter. The unit incurred an operating loss of $1.1 billion, wider than the prior-year quarter’s loss of $140 million.
ELV’s Financial Details (As of March 31, 2026)Elevance Health exited the first quarter with cash and cash equivalents of $9.7 billion, which advanced 1.7% from the 2025-end level. Total assets of $125.8 billion increased 3.6% from the figure at 2025-end.
Long-term debt, less the current portion, amounted to $30.8 billion and fell 0.1% from the figure as of Dec. 31, 2025. Short-term borrowings at the first-quarter end were $724 million, while the current portion of the long-term debt amounted to $350 million.
Total equity of $44 billion inched up from the 2025-end level.
Elevance Health generated net cash flow from operations of $4.3 billion in the first quarter of 2026, which rose from the prior-year comparable period’s figure of $1 billion.
ELV: Capital Deployment UpdateElevance Health bought back shares worth $1.1 billion in the first quarter. It had a leftover capacity of around $5.6 billion under its share buyback authorization as of March 31, 2026.
Elevance Health paid a quarterly dividend of $1.72 per share, adding up to a cash distribution worth $376 million.
ELV’s Revised 2026 OutlookThe company now expects adjusted EPS to be at least $26.75, up from the previous guidance of at least $25.50.
The operating margin for the Health Benefits segment was earlier estimated to witness a decrease of 50-25 bps from the 2025 reported figure. Also, the operating margin for CarelonRx was expected to see a 25-0 bps decline, while the same for Carelon Services was estimated to witness an increase of 0-25 bps.
Management earlier projected operating revenues to witness a low-single-digit decline in 2026 from the 2025 level. Premium revenues were estimated to witness a mid-single-digit decline from the 2025 level. Medical enrollment was forecasted to be between 43.2 million and 43.9 million in 2026.
Net investment income was expected to be $1.9 billion. Interest expenses were forecasted to be $1.5 billion in 2026, while operating cash flow is still projected to be at least $5.5 billion. Diluted shares are estimated at 219-220 million.
How Have Estimates Been Moving Since Then?It turns out, estimates review flatlined during the past month.
VGM ScoresCurrently, Elevance Health has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Elevance Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
INDIANAPOLIS--(BUSINESS WIRE)--Elevance Health is advancing its commitment to improving healthcare access by addressing one of healthcare’s most pressing challenges: the digital divide. Through innovative programs like Get Connected for Health and services offered by CareBridge, a subsidiary of Elevance Health, the company is helping ensure that individuals - especially those in underserved communities - have the tools, connectivity, and support needed to help them better manage their healthcare.
Access to digital health tools has become increasingly essential in today’s healthcare environment. Yet millions of Americans still lack reliable internet access, appropriate devices, or the digital literacy required to fully engage in their healthcare. Elevance Health is working to close this gap by embedding digital access into the care experience, making healthcare more equitable, convenient, and personalized.
“Consumer experience is about meeting people where they are and simplifying their healthcare journey,” said Saurabh Tandon, Chief Experience Officer at Elevance Health. “By expanding access to digital tools and services, we are helping remove barriers that can prevent individuals from getting the care they need.”
Elevance Health’s broader consumer experience strategy focuses on making healthcare easier to navigate - from finding care to understanding benefits - while reducing confusion and saving time for members and their families. This approach recognizes that improving access to digital tools is not just about technology, but about empowering people to take control of their health with confidence.
One key example of this commitment is Elevance Health’s Get Connected for Health program, which directly tackles the root causes of the digital divide by expanding access to connectivity and digital resources.
Get Connected for Health provides eligible members with a high-quality smartphone preloaded with a curated suite of digital and virtual health tools, along with unlimited data, talk, and text service at no cost. These tools include telehealth services, health plan apps, and personalized health and wellness applications designed to meet individual needs.
The program reflects a growing recognition that connectivity itself is a critical driver of health. Research shows that a significant portion of lower-income individuals lack broadband access, and many rely solely on smartphones to connect to the internet. Without reliable digital access, individuals may face challenges scheduling appointments, communicating with providers, or accessing important health information.
By addressing these barriers, Get Connected for Health helps create more equitable access to care. The program also includes educational resources and technical support to improve digital literacy, ensuring participants can fully utilize the tools available to them.
Importantly, the initiative is built through collaboration with leading telecommunications providers, enabling scalable solutions that can reach hundreds of thousands of members across multiple states. Early results have shown increased adoption of digital health tools and improved engagement, underscoring the impact of combining connectivity with personalized healthcare resources.
In addition to Get Connected for Health, CareBridge, a value-based care company within Elevance Health, supports a wide range of individuals including those enrolled in Medicaid plans, individuals in Dual-Special Needs Plans (who qualify for both Medicaid and Medicare), and people receiving home and community-based services. CareBridge provides patients with easy-to-use, cellular-enabled tablets that connect them directly to their care teams.
Through CareBridge, patients can access virtual care services 24 hours a day, seven days a week, using video, chat, or text in multiple languages. This always-on connectivity enables individuals to receive care in the comfort of their own homes, reducing the need for unnecessary emergency visits and improving overall health outcomes.
The platform is specifically designed with accessibility in mind. Patients are equipped with simple, intuitive devices and supported in their preferred language - CareBridge clinicians collectively speak 19 languages and support more than 300 additional languages. By removing both technological and language barriers, CareBridge helps ensure that vulnerable populations can stay connected to care teams and manage their health more effectively.
In addition to virtual care access, CareBridge integrates care coordination, data insights, and real-time support, enabling a more holistic and responsive care experience. The result is a model that not only improves convenience but also enhances independence and quality of life for individuals receiving long-term services and support.
Together, CareBridge and Get Connected for Health illustrate how Elevance Health is embedding digital equity into its care model. By delivering both the technology and the support needed to use it, the company is helping individuals overcome barriers related to income, geography, and language.
These efforts align with Elevance Health’s broader mission to transform healthcare into a more accessible, intuitive, and human-centered experience. By leveraging innovation and partnerships, the company continues to reimagine how care is delivered - ensuring that more people can access the services they need to lead healthier lives.
“As healthcare continues to evolve, digital access will play an increasingly central role in outcomes and experience,” Tandon added. “Our goal is to make sure no one is left behind.”
About Elevance Health
Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health’s companies serve approximately 105 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www.elevancehealth.com or follow us @ElevanceHealth on X and Elevance Health on LinkedIn.
Elevance Health, Inc. has rebounded ~34% from its March lows, supported by sector recovery and improved Q1 2026 results. Q1 2026 saw ELV revenue up 1.5% to $49.5bn, adjusted EPS up 5.1% to $12.58, and a benefit expense ratio improvement to 86.8%. ELV raised 2026 adjusted EPS guidance to at least $26.75 and expects a return to 12% adjusted EPS growth in 2027.
Investors looking for signs of life in retail just got a loud one from TJX Companies (TJX +0.04%). The parent company of TJ Maxx, Marshalls, HomeGoods, and Sierra, delivered a solid first quarter for fiscal 2027, significantly beating analyst expectations.
The stock is looking stronger than it has in years. But after such a strong run, is TJX still a buy? The answer increasingly looks like yes -- though not without a few caveats.
A blowout quarter across the board Overall, the apparel and home fashions retailer had an extremely good quarter. Net sales increased 9 percent to $14.3 billion, and comparable sales rose 6 percent versus the year-ago quarter.
Adjusted EPS (earnings per share) increased 29 percent to $1.19. That was well above the analysts' estimate of $1.00.
What made the quarter even better was the breadth in growth. Comparable sales grew across all four main divisions, including HomeGoods (+9%), TJX Canada (+7%), Marmaxx (which houses TJ Maxx, Marshalls, and Sierra) (+6%), and TJX International (+4%).
This is impressive because retailers sometimes have a strong quarter because of one hot category or temporary promotions. TJX's momentum looked much broader.
What's noteworthy is that management repeatedly pointed out during the earnings call that, across both the apparel and home categories, growth was driven by all income levels and regions, and by both higher customer traffic and larger basket sizes.
Plainly put, TJX isn't just winning over lower-income shoppers. Higher-income consumers are shopping there too.
Image source: Getty Images. TJX Companies' growth has been driven by a broad shopper profile.
The growth engine: exceptional merchandise availability TJX's business strategy has been different from that of most traditional retailers, and it may be one of the reasons why it has been successful.
Traditional retailers purchase their inventory months in advance, relying almost exclusively on pre-planned product assortment strategies. In contrast, TJX purchases products opportunistically throughout the year. Its 1,400-plus buyers scour the market all through the year to find the best discounts across all brands. The retailer adds thousands of new vendors each year and is often the first call for these vendors looking to offload excess inventory.
Management stated that merchandise availability right now is "off the charts," and used that phrase multiple times during the conference call.
Margins up, guidance raised again TJX's pre-tax margin widened to 12%, a 170 basis-point increase versus last year. Gross margin expanded 180 basis points to 31.3%. In the retail industry, those are substantial gains.
Analysts, obviously, probed whether those margin improvements were sustainable or simply boosted by temporary factors like fuel hedges and freight timing. While management acknowledged that favorable fuel hedges helped the quarter, it also stressed that merchandise margins were stronger than expected and that expense leverage from higher sales played a major role.
Importantly, TJX raised its full-year guidance. Comparable sales growth is now expected at 3% to 4%, while the outlook for earnings per share (EPS) is now between $5.08 and $5.15 for fiscal 2027.
However, management indicated it did not fully capitalize on the upside in the first quarter for its full-year guidance. Specifically, CFO John Klinger noted that the company assumed that elevated diesel prices would persist throughout fiscal 2027. Therefore, should diesel prices fall later in the year, margins potentially could expand beyond the current guidance.
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International expansion is also a key part of the story One underappreciated part of the TJX story may be international expansion. The company now operates in 10 countries and recently opened its first store in Spain, where management described customer response as "terrific."
Investors have long viewed TJX primarily as a mature U.S. retailer. This quarter suggests management sees far more runway ahead.
No retailer is immune to risks associated with the current economic climate. TJX still faces wage inflation, freight and fuel volatility, and the possibility that consumers eventually pull back on discretionary spending.
The stock isn't relatively cheap among apparel stocks, either. Nevertheless, yesterday's earnings announcement reinforced several key strengths, such as strong traffic trends, expanding margins, excellent inventory access, and possibly the most underrated factor -- continuing demand across all income levels.
TJX PE Ratio (Forward 1y) data by YCharts.
Furthermore, management stressed the importance of investing in long-term growth. The consistency and breadth of the latest quarterly results underscore that.
The market clearly liked what it saw. Shares of TJX rose roughly 5.7% in yesterday's trading session following the earnings release.
TJX Companies offers a compelling case for long-term investors seeking a retailer that's consistent in execution, has resilient consumer demand, generates significantly higher profitability, and presents multiple paths toward future growth.
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 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 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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
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 +23.7% 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.
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.
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: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TJX has a Growth Style Score of A, forecasting year-over-year earnings growth of 7.2% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $5.07 per share. TJX also boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TJX should be on investors' short list.
The company reported first-quarter earnings of $1.19 per share, exceeding the analyst consensus estimate of $1.01. Revenue rose 9% year over year to $14.32 billion, above Wall Street expectations of $14.00 billion.
TJX raised its fiscal 2027 GAAP earnings guidance to a range of $5.08 to $5.15 per share, up from its prior forecast of $4.93 to $5.02 per share. Analysts were expecting $5.13 per share.
For the second quarter of fiscal 2027, the company expects GAAP earnings of $1.15 to $1.17 per share, compared with analyst estimates of $1.18 per share.
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our first quarter performance. Sales, pretax profit margin, and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers, every day.”
TJX shares fell 1.4% to trade at $157.06 on Thursday.
These analysts made changes to their price targets on TJX following earnings announcement.
BTIG analyst Robert Drbul maintained the stock with a Buy and raised the price target from $185 to $190. Baird analyst Mark Altschwager maintained TJX with an Outperform rating and raised the price target from $172 to $175. Considering buying TJX stock? Here’s what analysts think:
Photo via Shutterstock
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American consumers are becoming increasingly cautious. The University of Michigan's Consumer Sentiment Index recently fell to 48.2, one of the lowest readings ever recorded. Survey respondents cited concerns about inflation, gasoline prices, tariffs, and overall purchasing power.
When consumers feel pressured, shopping habits tend to change.
Instead of buying premium or luxury brands, many households begin searching for discounts, lower-priced alternatives, and retailers that stretch their budgets further. Historically, that environment has often benefited value-oriented retail stocks.
Two companies that could potentially benefit from that trend are Dollar General (DG +0.40%) and TJX Companies (TJX +0.04%).
Dollar General Dollar General operates more than 20,000 stores across the United States, primarily serving rural and lower-income communities.
The company's customer base tends to be particularly sensitive to inflation and economic stress. While that creates challenges when consumers pull back spending, it can also drive traffic as shoppers increasingly seek lower-cost alternatives to traditional grocery stores, pharmacies, and big-box retailers.
Image source: Getty Images.
Put simply, the business continues generating growth despite economic headwinds.
Dollar General reported $42.7 billion in fiscal 2025 revenue, up 5.2% year over year, while same-store sales increased 3%. Management is currently projecting net sales growth of 3.7% to 4.2% in fiscal 2026, suggesting demand remains resilient despite weak consumer sentiment.
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The company has also focused on improving inventory management, expanding private-label offerings, and increasing operational efficiency after several difficult years marked by inflationary pressures and higher shrink rates.
If consumer sentiment remains weak throughout 2026, Dollar General could continue to benefit from shoppers looking to save money on everyday essentials.
TJX Companies TJX owns popular off-price retail chains, including T.J. Maxx, Marshalls, and HomeGoods.
Unlike many traditional retailers, TJX benefits from a business model built around discounted branded merchandise. The company purchases excess inventory from manufacturers and retailers and sells it at significant discounts.
That strategy has historically performed well during periods of economic uncertainty.
Consumers still want recognizable brands, but many become less willing to pay full price when budgets tighten. TJX gives shoppers access to discounted apparel, home goods, and accessories, often at prices 20% to 60% below traditional retailers.
The numbers remain strong.
TJX generated $60.4 billion in fiscal 2026 revenue, up 7% year over year, while comparable sales increased 5%. Net income reached approximately $5.5 billion. The company's fiscal year ended on Jan. 31, 2026.
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More recently, the company reported 6% comparable sales growth in its latest quarter.
TJX has consistently generated strong cash flow, producing $6.9 billion in operating cash flow in fiscal 2026 while expanding its store base and maintaining healthy profitability.
Built for tough economic environments I'm not saying you should root for weak consumer confidence. A strong economy generally benefits most businesses.
However, certain companies are built specifically for tougher economic environments. When consumers become more price-conscious, discount retailers and off-price chains often gain market share as shoppers prioritize value over convenience or brand loyalty.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about TJX (TJX - Free Report) .
TJX currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 87% and 4.4% of all recommendations.
Brokerage Recommendation Trends for TJX
Check price target & stock forecast for TJX here>>>
The ABR suggests buying TJX, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
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.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
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.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is TJX Worth Investing In?Looking at the earnings estimate revisions for TJX, the Zacks Consensus Estimate for the current year has increased 1.9% over the past month to $5.14.
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 #2 (Buy) for TJX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for TJX may serve as a useful guide for investors.
TJX (TJX - 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 parent of T.J. Maxx, Marshalls and other stores have returned +0.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Discount Stores industry, to which TJX belongs, has gained 0.1% 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.
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.
TJX is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
The consensus earnings estimate of $5.15 for the current fiscal year indicates a year-over-year change of +8.9%. This estimate has changed +1.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.66 indicates a change of +9.8% from what TJX is expected to report a year ago. Over the past month, the estimate has changed +1.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #3 (Hold).
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.
For TJX, the consensus sales estimate for the current quarter of $15.14 billion indicates a year-over-year change of +5.2%. For the current and next fiscal years, $63.85 billion and $67.36 billion estimates indicate +5.8% and +5.5% changes, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors might want to bet on TJX (TJX - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for TJX basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For TJX, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for TJXFor the fiscal year ending January 2027, this parent of T.J. Maxx, Marshalls and other stores is expected to earn $5.15 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for TJX. Over the past three months, the Zacks Consensus Estimate for the company has increased 2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of TJX to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways TJX raises fiscal 2027 sales and comparable sales growth guidance after strong results.The TJX Companies sees customer transaction growth across all retail divisions.TJX delivers 6% comparable sales growth and around 9% revenue growth in the first quarter of fiscal 2027. The TJX Companies, Inc. (TJX - Free Report) delivered strong results in the first quarter of fiscal 2027, with sales, profitability and earnings per share coming in above the company's plan. The company delivered net sales of $14.3 billion, up nearly 9% year over year, with overall comp sales increasing 6% during the period. TJX Companies attributed its strong first-quarter performance to disciplined execution across the organization and effective collaboration among its global teams.
The company noted that all divisions delivered increases in customer transactions, while management highlighted continued customer attraction across its retail banners. All company divisions contributed to this growth, demonstrating broad-based strength across the business. In addition to sales growth, each division generated increases in customer transactions, indicating healthy customer engagement and demand. The combination of positive comparable sales and higher transaction volumes reflects solid execution across the company's operating segments.
Marmaxx delivered a strong 6% comparable sales increase, while TJX Canada reported a 7% comp sales gain. HomeGoods outperformed with a 9% comparable sales increase during the quarter. Additionally, the continued availability of quality branded merchandise is also positioning the company to capitalize on attractive opportunities in the marketplace.
Looking ahead, the company raised its guidance for fiscal 2027 and expects overall comparable sales growth of 3% to 4% compared with the prior guided range of 2% to 3%. The company also raised guidance for consolidated sales growth to the range of 5%-6% from the previous guided range of 4% to 5%. Overall, broad-based sales growth, higher customer transactions and strong merchandise availability provide support for TJX Companies’ growth initiatives and expansion opportunities.
How Do Burlington Stores & Ross Stores Fare?Burlington Stores, Inc. (BURL - Free Report) reported a 14% year-over-year increase in first-quarter fiscal 2026 sales to $2,852 million, supported by a 6% increase in comparable store sales. Looking ahead, Burlington Stores expects fiscal 2026 total sales growth to be in the range of 9% to 11%, driven by anticipated comparable store sales growth of 2% to 4%.
Ross Stores, Inc. (ROST - Free Report) delivered total sales growth of 21% year over year to $6 billion in the first quarter of fiscal 2026, supported by a robust 17% year-over-year increase in comparable store sales compared with flat performance in the prior year. Reflecting the strong quarter, Ross Stores has raised its fiscal 2026 same-store sales growth outlook to the range of 6%-7% from the previous guided range of 3%-4%.
The Zacks Rundown for TJXThe company’s shares have gained 1.8% in the past six months compared with the industry’s 8.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.7, lower than the industry’s average of 31.13.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Many retailers have had a tough time over the last couple of years. High prices are weighing on consumers, and tariffs and high gas prices have only made things more challenging.
But not all retailer stocks have done poorly. Costco Wholesale (COST +0.68%) and TJX Companies (TJX +0.04%) have posted impressive results and rewarded shareholders.
Nonetheless, there's plenty of upside for long-term investors who purchase their shares this year. Here's why these two companies remain top-of-the-class retailers.
Image source: Getty Images.
1. Costco When you ask people to pay a fee to shop at your warehouses, you need to make members happy. Costco has excelled at doing so for decades by offering a wide range of high-quality goods and services at attractive unit prices.
Management has even shown a willingness to forgo short-term profitability in an effort to service customers and engender their loyalty. For instance, it held off on raising its annual fee, increasing it effective Sept. 1, 2024, after a longer-than-usual seven years.
And it's done a fine job of retaining members over the years. Its global renewal rate typically hovers around 90%, including 89.7% in the fiscal third quarter, which ended on May 10.
Costco also consistently grows same-store sales (comps). That's particularly impressive during recent times when many retailers have struggled to increase comps in the face of broad-based inflationary pressures. In the most recent three-month period, comps increased 6.6%, after removing foreign-currency translations and the impact of gasoline price changes, driven by increased spending and traffic to its stores.
The company is not merely growing sales at the expense of profitability, either. Third-quarter operating income increased 11.3% year over year.
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Costco has a simple business plan that management executes very well. It continues to open new warehouses, and fortunately, it has room for more expansion. It started the year with 914 warehouses and opened 14 during the first nine months. Management anticipates adding another 12 this quarter. Most of the new warehouses are located in the U.S. and Canada, but it will also open a couple internationally.
Consistently strong results and expansion opportunities are a powerful combination.
2. TJX Companies TJX Companies attracts customers by offering apparel and home goods merchandise at a 20% to 60% discount. Its popular retail banners include TJ Maxx, Marshalls, and HomeGoods.
How can the company offer goods at such deep discounts? It buys excess inventory from manufacturers. Better still, the more challenging the economic times, the better the opportunity for TJX to buy goods at attractive prices.
It does well during normal times, but it has more high-quality, low-priced inventory amid challenging conditions. That's perfect, since that's when consumers, who always look for bargains, become particularly price-sensitive.
These may be stressful times for consumers, but they've clamored for TJX's merchandise across all of its retail chains. Its fiscal first-quarter comps increased 8% on a constant-currency basis. That's for the period that ended on May 2. Management expects a strong 3% to 4% comps growth for the year.
TJX has 6% more inventory than a year ago, but unlike some retailers, that's not a negative right now. It has found an abundance of attractive buying opportunities, allowing the company to provide more offerings to customers. After all, the retailer didn't have to discount goods to clear shelves, as seen by its 31.3% gross margin, a 1.8-percentage-point expansion from last year.
It's also highly profitable. TJX's first-quarter diluted earnings per share grew 29.3% year over year to $1.19.
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Management also sees a growth opportunity, adding 48 locations during the first quarter. It finished the period with 5,262 stores.
With its sales growth, there's clearly room for more locations.
Key Takeaways TJX posted a 6% comparable sales increase, driven by higher customer transactions across segments.The TJX Companies saw demand remain consistent across income groups, supporting broad growth.TJX reported healthy sales growth in the US, Canada, Europe and Australia, reflecting momentum. The TJX Companies, Inc.’s (TJX - Free Report) first-quarter fiscal 2027 results highlighted a key differentiator in today’s retail environment — customer traffic. The company reported a 6% comparable sales increase, supported by growth in customer transactions across all major business segments, indicating continued strength in shopper visits.
What makes this performance particularly noteworthy is its breadth. Management highlighted that demand remained remarkably consistent across income groups, suggesting that TJX is not relying on a single consumer segment for growth. Instead, its value-focused offering continues to attract shoppers across a wide range of spending levels, reinforcing the broad appeal of the off-price retail model.
The company’s merchandising strategy appears to be playing a key role in supporting traffic. TJX emphasized its ability to remain flexible, respond quickly to trends and offer compelling branded merchandise at attractive prices. Frequent inventory refreshes and an ever-changing assortment help create the treasure-hunt shopping experience that encourages repeat visits and drives customer engagement.
Another positive takeaway was the consistency of customer demand across regions. Healthy sales growth in the United States, Canada, Europe and Australia suggests that traffic momentum is not tied to any single market. This broad-based performance highlights the strength of TJX’s off-price model and its ability to attract customers across diverse geographies.
For TJX, sustaining traffic will depend on continuing to deliver value, freshness and excitement in its merchandise assortment. The latest quarter suggests these factors remain firmly in place, helping the retailer maintain strong customer engagement across markets and demographics.
TJX, ROST and BURL Show Traffic StrengthRoss Stores, Inc. (ROST - Free Report) also delivered strong traffic-led growth in the first quarter of fiscal 2026. Ross Stores reported a 17% comparable sales increase, driven primarily by higher transactions and customer-count growth across income levels, age groups and ethnicities. Management noted that Ross Stores has now posted transaction-driven comparable sales growth for three consecutive quarters, supported by customer acquisition efforts, marketing initiatives and compelling merchandise assortments.
Burlington Stores, Inc. (BURL - Free Report) also demonstrated solid customer demand trends in the first quarter of fiscal 2026. Burlington Stores reported 6% comparable sales growth, with management highlighting positive customer metrics across demographics and income bands. Despite macroeconomic uncertainty, Burlington Stores continued to see resilient shopper engagement, supported by its value-focused merchandise offering and improved store experience initiatives.
TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 4.8% in the past month against the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 30.15X, down from the industry’s average of 31.29X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX) today announced the declaration of a quarterly dividend on its common stock of $.48 per share payable September 3, 2026, to shareholders of record on August 13, 2026.
About The TJX Companies, Inc.
The TJX Companies, Inc., a Fortune 100 company, is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. Our mission is to deliver great value to customers every day. We do this by offering a rapidly changing assortment of quality, fashionable, brand name, and designer merchandise at prices generally 20% to 60% below full-price retailers’ regular prices on comparable merchandise. We operate over 5,200 stores across ten countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia. We also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe. Our value mission extends to our corporate responsibility efforts, which are focused on supporting our Associates, giving back in the communities we serve, the environment, and operating responsibly. Additional information about TJX’s press releases, financial information, and corporate responsibility are available at TJX.com.
Important Information at Website
The Company routinely posts information that may be important to investors in the Investors section at TJX.com. The Company encourages investors to consult that section of its website regularly.
Well before market open on Tuesday, a global bank reiterated its bullish view on retailer TJX Companies (TJX +0.04%). Clearly taken by this assessment, investors pushed into the T.J. Maxx and Marshalls owner's equity, boosting it more than 3% higher across that day's trading session.
It remains a clear buy, says pundit The analyst behind the update was UBS prognosticator Jay Sole, who maintained his buy recommendation and $197 per share price target on TJX. That's more than 19% above the stock's latest closing price.
Image source: Getty Images.
According to reports, Sole cited findings in the latest version of his bank's annual U.S. Off-Price and Department Store Retailers Consumer Survey as a core reason for his continued bullishness. He wrote that the survey indicated that 71% of polled consumers believe the company's flagship T.J. Maxx stores offer good value for money. That figure is well higher than the roughly 47% for Macy's and other prominent department stores.
The analyst also pointed to data indicating that customers frequenting T.J. Maxx anticipate a 14% net increase in shopping frequency over the next year. That compared very favorably to the -1% average of the overall survey. In Sole's view, traffic is the main driver of a discount retailer's comparable sales growth, a crucial metric in the retail industry.
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The right retailer at the right time TJX has posted some impressive results lately. Its "comps" rose by 6% year over year in its first quarter of fiscal 2027, and net sales advanced by a meaty 9% to more than $14 billion. Better, adjusted earnings per share soared by 29% to nearly $1.19, crushing the consensus analyst estimate. With these considerable tailwinds at its back, the company raised its comparable sales and EPS guidance for the full fiscal year.
The current economic uncertainty in the U.S. is generally favoring discount retailers, and TJX is proving very adept at navigating this moment. I'm becoming increasingly bullish on this company, and investors should too.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TJX Companies. The Motley Fool has a disclosure policy.
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 TJX (TJX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
TJX currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 87% and 4.4% of all recommendations.
Brokerage Recommendation Trends for TJX
Check price target & stock forecast for TJX here>>>
The ABR suggests buying TJX, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
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.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
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.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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.
Is TJX a Good Investment?Looking at the earnings estimate revisions for TJX, the Zacks Consensus Estimate for the current year has increased 1.9% over the past month to $5.15.
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 #2 (Buy) for TJX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for TJX may serve as a useful guide for investors.
TJX (TJX - 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.
Over the past month, shares of this parent of T.J. Maxx, Marshalls and other stores have returned +14%, compared to the Zacks S&P 500 composite's -1.6% change. During this period, the Zacks Retail - Discount Stores industry, which TJX falls in, has gained 1.5%. The key question now is: What could be the stock's future direction?
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 RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
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.
For the current quarter, TJX is expected to post earnings of $1.17 per share, indicating a change of +6.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
The consensus earnings estimate of $5.17 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has changed +2.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +9.7% from what TJX is expected to report a year ago. Over the past month, the estimate has changed +2.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile 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 TJX, the consensus sales estimate of $15.12 billion for the current quarter points to a year-over-year change of +5%. The $63.87 billion and $67.4 billion estimates for the current and next fiscal years indicate changes of +5.8% and +5.5%, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
TJX is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Have you been paying attention to shares of TJX (TJX - Free Report) ? Shares have been on the move with the stock up 14% over the past month. The stock hit a new 52-week high of $167.92 in the previous session. TJX has gained 9.2% since the start of the year compared to the -0.5% move for the Zacks Retail-Wholesale sector and the 13.5% return for the Zacks Retail - Discount Stores 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 May 20, 2026, TJX reported EPS of $1.19 versus consensus estimate of $1.01.
For the current fiscal year, TJX is expected to post earnings of $5.17 per share on $63.87 in revenues. This represents a 9.3% change in EPS on a 5.8% change in revenues. For the next fiscal year, the company is expected to earn $5.67 per share on $67.4 in revenues. This represents a year-over-year change of 9.73% and 5.52%, respectively.
Valuation MetricsWhile TJX 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 is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
TJX has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 32.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.2X. On a trailing cash flow basis, the stock currently trades at 27.4X versus its peer group's average of 21.2X. Additionally, the stock has a PEG ratio of 3.63. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, TJX currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TJX meets the list of requirements. Thus, it seems as though TJX shares could have a bit more room to run in the near term.
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.
It also includes access to 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 ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most 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 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.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, 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.
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.
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: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TJX has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.3% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.11 to $5.17 per share. TJX boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TJX should be on investors' short list.
Key Takeaways TJX reached a 52-week high after gaining 35.8% in the past year and outperforming key benchmarks.TJX's off-price model drove 6% comparable sales growth, with higher transactions and basket sizes.TJX added 48 net new stores and sees expansion opportunities across Europe and Australia. The TJX Companies, Inc. (TJX - Free Report) recently reached a new 52-week high, a notable milestone that has grabbed investors' attention. The company's solid execution, resilient off-price business model and expansion initiatives have fueled the stock's strong performance, leaving investors wondering whether it is still worth buying.
In the past year, TJX stock has surged 35.8%, outpacing the Zacks Retail - Discount Stores industry, the broader Retail and Wholesale sector and the S&P 500, which have gained 15.1%, 5.4% and 25.1%, respectively.
TJX Price Performance vs. Industry, S&P 500 & Sector
Image Source: Zacks Investment Research
The TJX Companies has also outperformed its key competitors, such as Target Corporation (TGT - Free Report) , Dollar Tree, Inc. (DLTR - Free Report) and Dollar General Corporation (DG - Free Report) . Over the past year, Target, Dollar Tree and Dollar General posted gains of 33.6%, 19.6% and 2.3%, respectively.
Technical indicators also point to continued strength. TJX currently trades above both 50 and 200-day moving averages, signaling sustained upward momentum and reinforcing investors' confidence in its long-term growth prospects.
TJX’s Off-Price Strength and Expansion Strategy Support GrowthTJX’s off-price retail model continues to be a key competitive advantage, enabling it to attract consumers across income groups through a combination of branded merchandise, attractive pricing and a treasure-hunt shopping experience. In the first quarter of fiscal 2027, comparable sales increased 6%, driven by both higher customer transactions and larger basket sizes. Management noted that all divisions delivered transaction growth, highlighting the broad appeal and resilience of the company’s value-focused business model.
The company is also benefiting from exceptional merchandise availability and its extensive global sourcing network. With more than 1,400 buyers and strong vendor relationships, TJX remains well-positioned to secure quality branded products at attractive prices. Management emphasized that merchandise availability remains outstanding, allowing the retailer to maintain fresh assortments, respond quickly to consumer trends and capitalize on buying opportunities that support both sales growth and margin expansion.
TJX’s growth strategy extends beyond merchandising strength, supported by continued store expansion and market-share gains. The company ended the fiscal first quarter with 5,262 stores worldwide after adding 48 net new locations. Management remains optimistic about expansion opportunities across Europe and Australia while pursuing growth initiatives in newer markets such as Spain and Mexico. The retailer believes it still has a substantial runway to increase global footprint and deepen presence across key markets.
TJX’s operational flexibility remains a major competitive advantage. Its fast-turning inventory model allows the company to quickly capitalize on emerging trends, adjust merchandise assortments and pursue high-demand categories. This agility supports strong customer traffic, healthy merchandise margins and continued market-share gains, while helping TJX maintain a fresh and compelling shopping experience that encourages repeat visits across its retail banners.
How Are Estimates Stacking Up for TJX?Reflecting the positive sentiment around TJX, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past seven days, earnings per share estimates for fiscal 2027 and 2028 have increased 2 cents and 1 cent to $5.17 and $5.67, respectively.
Image Source: Zacks Investment Research
How Does TJX’s Valuation Look?TJX is currently trading at a slight discount to its industry benchmarks. The company’s forward 12-month price-to-earnings (P/E) multiple of 31.55X is slightly lower than the industry average of 31.92X. Among peers, Target, Dollar Tree and Dollar General trade at significantly lower valuations, with forward P/E multiples of 15.52X, 15.89X and 15.18X, respectively.
TJX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
The TJX Companies Navigates Key Challenges AheadTJX operates in a highly competitive retail environment, where maintaining its value proposition may require continued investments in pricing, marketing and store operations. While the company has successfully gained market share through its off-price model, competition from both traditional retailers and e-commerce players remains intense. In addition, cost inflation across labor, sourcing and logistics could pressure profitability and limit future margin expansion.
The retailer is also exposed to macroeconomic and international risks due to its extensive global footprint. Fluctuations in foreign exchange rates, evolving trade policies and tariff-related uncertainties could affect profitability and sourcing costs. While management remains confident in the resilience of the off-price model, changes in consumer spending patterns, economic slowdowns in key markets and persistent cost inflation could pressure future results and moderate earnings growth.
TJX’s Investment AnalysisTJX’s recent 52-week high reflects the strength of its off-price business model, consistent execution and ability to gain market share in a challenging retail environment. The company continues to benefit from strong customer traffic, strong merchandise availability and significant expansion opportunities across global markets. While higher costs, foreign exchange fluctuations and macroeconomic uncertainties remain risks, TJX’s solid fundamentals and positive earnings outlook support its long-term growth story. With a Zacks Rank #2 (Buy), the stock remains a compelling choice for investors seeking steady growth and resilience in the retail sector.
You can see the complete list of today’s Zacks #1 Rank (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.
It also includes access to the Zacks Style Scores.
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.
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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure 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: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. TJX has a Momentum Style Score of B, and shares are up 14.2% over the past four weeks.
For fiscal 2027, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $5.17 per share. TJX boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TJX should be on investors' short list.
While calling their performance a "renaissance" might be a modest dose of hyperbole, in broad terms, dividend stocks are off to strong starts in 2026. The emphasis is on "broad" because performances aren't uniform in this corner of the equity market, even for blue chip dividend stocks.
What's noteworthy about this year's dividend-equity resurgence is that it has largely been driven by higher-yield groups, such as consumer staples, utilities, and oil dividend stocks. High-dividend leadership doesn't imply that payout growth is out of style. Actually, dependable dividend growth is always fashionable, because it's how patient income investors garner long-term rewards.
These dividend stocks could become foundations of long-term income portfolios. Image source: Getty Images.
If you're an income investor seeking stocks that offer a combination of dependability, familiarity, and value, you may find much to like in the consumer discretionary and consumer staples sectors. Here are three names to consider that could serve as bedrocks of a dividend portfolio over the next 20 years.
Treat yourself to a steadily rising dividend with Domino's In news that was the opposite of biting into a fresh, warm piece of baked dough, Domino's Pizza (DPZ +3.68%) reported disappointing first-quarter results last week, sending the stock tumbling and contributing to its year-to-date decline of 19%. A year-long slide in the stock, one of Warren Buffett's final additions to the Berkshire Hathaway equity portfolio, has the pizza chain's shares sporting a forward price-to-earnings (P/E) ratio of about 17 -- its lowest in three years. That may be a signal that Domino's is now a value stock.
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What's not up for debate is Domino's perch among a small number of stocks with moatlike traits and its ability to raise its dividend by double-digit percentages. It did just that again in February, boosting its payout by 15% and extending its dividend-hiking streak to 14 consecutive years.
Mondelez is marvelous in the dividend department Up 14% year to date, Mondelez International (MDLZ 0.58%), maker of Ritz crackers, is one of this year's juggernauts among large-cap consumer staples stocks. Speaking of the number 14, that's also the length in years of Mondelez's dividend-boosting streak. At current share prices, the stock now yields around 3.3%, triple the average for the S&P 500 index.
Mondelez's dividend growth is a positive sign for long-term investors, but there are near-term considerations. In the first quarter, the company did gain market share in some segments. But management also acknowledged that U.S. consumer confidence is low, due in part to the Iran war and its impacts on the economy. That may be a sign that this consumer staples stock, though already flying high this year, could benefit from an end to the conflict.
Looking further out, some experts see Mondelez generating free cash flow (FCF) equivalent to 13% of sales over the long term, which could support dividend growth in the high single-digit percentages over the next decade.
Campbell's is one for the risk-takers Typically, income investors head to the consumer staples sector when they're looking to avoid risk, but that strategy doesn't apply to every stock in it. Campbell's (CPB +0.35%) stock is down more than 25% so far this year.
That might make investors squeamish, and rightfully so. But if you can handle the risk, Campbell's may be a compelling value play; some market observers view its shares as deeply discounted, and its dividend at the current share price yields 7.5%.
Moreover, the company has dramatically altered its product lineup to reduce its dependence on the slow-growth soup segment. It's even leveraging technology, including artificial intelligence, to keep up with shifting consumer tastes, showing that even 150-year-old companies can try to evolve with the times. But you may need to wait a while for those efforts to be reflected in the share price.
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Regarding the dividend, Campbell's payout-increase streak is just two years long, and its payout ratio of 85.3% is high.That doesn't necessarily mean a cut or suspension is in the offing. Still, if a negative event like that does materialize, it would be all the incentive that many investors would need to convince them to take their dividend-hunting business elsewhere.
On the bright side, Campbell's has paid a dividend for 51 straight years. It's possible that management recognizes the payout as an important selling point for would-be shareholders, at least until product-portfolio changes and tech commitments bear more fruit.
Key Takeaways GLP-1 drugs represent a paradigm shift in treating America's obesity epidemic.While Novo Nordisk pioneered the space, Eli Lilly has taken the lead.The success of GLP-1 drugs threatens the bottom lines of ultra-processed food giants. America’s Obesity EpidemicOne of the most eye-opening exercises you can do is to look at an American beach photo from the 1960s or 1970s and compare it to a beach photo from today. In the early 1960s, less than 15% of Americans were obese. Today, the obesity rate in America is roughly 40%. What’s to blame for the soaring obesity rate? The widespread availability, addictiveness, and popularity of high-calorie, ultra-processed foods combined with an increase in sedentary lifestyle choices.
Obesity causes heart disease (the number one cause of death in the United States), type 2 diabetes, stroke, and high blood pressure. Despite these well-known risks, most Americans are unwilling to make lifestyle changes such as eating unprocessed foods and excercising. Meanwhile, until recently, weight loss drugs were mostly scams, or worse, had numerous adverse side effects.
GLP-1: The Largest Blockbuster Drug EverEvery handful of decades, a groundbreaking drug transforms the pharmaceutical industry. GLP-1 receptor agonists (such as Ozempic, Wegovy, and Mounjaro) are the closest the pharmaceutical industry has come to a panacea. By manipulating brain receptors, these drugs can reduce appetite and spur weight loss of 20% or more, thereby significantly reducing heart attack and other health risks.
Should you Buy Novo Nordisk or Eli Lilly?Pharma behemothsEli Lilly ((LLY - Free Report) ) andNovo Nordisk ((NVO - Free Report) ) are the two undisputed leaders in a GLP-1 industry that JP Morgan ((JPM - Free Report) ) expects to swell to $105 billion by the end of the decade. Although LLY and NVO dominate the market, their share prices are diverging significantly. Over the past year, LLY shares have gained 32.30% while NVO shares have plunged 28.40%.
Image Source: Zacks Investment Research
The reason for the outperformance is that while NVO’s Ozempic/Wegovy drugs were first to market, Lilly’s tirzepatide (Mounjaro/Zepbound) has achieved more favorable results. The latest head-to-head trials show that Lilly’s dual agonist drug leads to ~20% weight loss, while NVO’s single agonist drug achieved ~13% weight loss. Meanwhile, LLY’s Retratrutide (which cleared FDA phase 2 trials) has shown that a mind-boggling 72% of prediabetics reached normal blood sugar levels after taking the drug. While it’s a stretch to call a company like NVO with $14 billion in quarterly revenue a loser, LLY’s drug is far superior to NVO’s and is likely to continue to be the leader in the group.
GLP-1 Losers: Snack Foods & AlcoholSnack food companies like Coca-Cola ((KO - Free Report) ), PepsiCO ((PEP - Free Report) ), and Mondelez ((MDLZ - Free Report) ) are likely to struggle as more Americans adopt GLP-1s and junk food cravings decrease.
Bottom Line
With its best-in-breed GLP-1 drugs, Eli Lilly is beginning to cement itself as the dominant player in the massive GLP-1 market. In addition to LLY’s dominance, investors must recognize that the legacy snack industry is at risk of being disrupted.
New innovations provide delicious snack time fuel to help power active kids to explore and expand their world
, /PRNewswire/ -- The Zbar brand today announced the expansion of its kids snacking portfolio with the launch of Zbar Oat Bites and Zbar Protein Snack Bars in a Strawberries 'n Creme flavor. Designed for active kids and made with quality ingredients such as organic oats, the Zbar brand's new innovations help provide fuel for kids to explore and play.
Zbar Oat Bites Deliver Bite-Sized, On-the-Go Snacking for Kids
Zbar Oat Bites help keep busy kids fueled for the next big adventure in a brand-new way.
Zbar Protein, a crispy snack bar, is now available in a new Strawberries ‘n Creme flavor. Zbar Oat Bites help keep busy kids fueled for the next big adventure in a brand-new way. Available in Chocolate Chip and Iced Oatmeal Cookie – two Zbar flavors that kids love – the convenient on-the-go format is great for snacking from the playground; to on the field; or anywhere their activities take them.
Parents can rely on Zbar Oat Bites because they are crafted with 14 grams of whole grains per pack, are USDA Certified Organic and have a taste kids will love. Zbar Oat Bites come in two delicious varieties: Chocolate Chip and Iced Oatmeal Cookie, and are available at retailers nationwide with a suggested retail price of $6.49 per 6-pack.
"The Zbar brand believes every adventure, big or small, calls for snacks that kids love to eat, and their parents can feel confident choosing," said Valerie Van Arkel, Director of Marketing for Zbar at Mondelēz International. "Kids are born with an appetite for adventure, and that adventure needs fuel. Our brand new Zbar Oat Bites were created in a fun format to bring variety to kids' snack routines and make snacking on the go easier as we enter the season of summer activities and outdoor play."
Zbar Protein Snack Bars in Strawberries 'n Creme Flavor are a Good Source of Protein for Active Kids
Zbar Protein, a crispy snack bar, is now available in a new Strawberries 'n Creme flavor. Built for active kids on the move, Zbar Protein Strawberries 'n Creme flavored snack bars provide a good source of protein with 5 grams per bar to help support kids' growing bodies.
Made with organic oats and real fruit, Zbar Protein Strawberries 'n Creme flavored snack bars are a great choice for on the go snacking during busy school days, after sports practice and for summer adventures on the road. Zbar Protein Strawberries 'n Creme flavored snack bars are available at retailers nationwide, with a suggested retail price of $6.49 per 5-pack.
With its newest innovations, the Zbar brand continues its mission of providing parents with convenient, delicious snacks their kids love to help power active exploration. For more information and product availability, visit clifbar.com/clif-kid or follow the Zbar brand on Instagram, TikTok and Facebook.
About CLIF BAR
For more than 30 years, the CLIF brand has crafted delicious food with organic ingredients under its CLIF BAR, Zbar, and LUNA brands. In 2022, the CLIF brand became part of the Mondelēz International, Inc. (Nasdaq: MDLZ), portfolio of brands empowering people to snack right in over 150 countries around the world. With 2024 net revenue of approximately $36.4 billion, Mondelēz is leading the future of snacking with other iconic global and local brands such as OREO, RITZ, belVita, LU, and TATE'S BAKE SHOP biscuits and baked snacks, as well as CADBURY DAIRY MILK, MILKA, and TOBLERONE chocolate. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100, and Dow Jones Sustainability Index.
For more information about the Zbar brand, please visit Clif | Mondelēz International, Inc. (mondelezinternational.com).
Key Takeaways MDLZ posted 5.5% organic net revenue growth in chocolate in Q1, led by pricing. MDLZ saw volume/mix fall 2.1% as cocoa-driven pricing hit elasticity, plus downsizing actions.MDLZ saw Europe trends improve with stronger Easter execution; some premium travel retail products sold out. Mondelez International, Inc. (MDLZ - Free Report) is continuing to see strong momentum in its chocolate business despite elevated cocoa costs and ongoing pricing pressure across global markets. The company’s first-quarter 2026 results showed that chocolate remained one of its stronger-performing categories, though volume recovery is still evolving.
Chocolate organic net revenues increased 5.5% in the quarter, supported by growth in both Emerging and Developed Markets. Pricing remained the primary growth driver, while volume and mix declined 2.1%. The decrease mainly reflected elasticity pressures in parts of Europe tied to cocoa-related pricing, revenue growth management actions and product downsizing initiatives.
Europe remains a critical region for Mondelez’s chocolate business. The region’s overall revenues declined 0.6% in the quarter due to softer volumes, but trends improved sequentially through the period. Europe’s chocolate returned to slight volume share growth, supported by stronger Easter execution and improving retail trends.
Image Source: Zacks Investment Research
The company also continued benefiting from strong performance across major chocolate brands, including Cadbury Dairy Milk, Toblerone, Lacta and Hu. Innovation added another layer of support. New launches such as Cadbury Biscoff Egg and Toblerone Very Limited Editions generated solid early demand, with several premium travel retail products selling out during the quarter.
Outside Europe, chocolate demand remained healthy across several international markets. Australia and New Zealand posted robust Easter-related chocolate growth, while Emerging Markets benefited from investments in distribution, innovation and brand expansion. Overall, Mondelez’s first-quarter performance showed that its chocolate business continues to hold up well in a challenging cost environment, supported by brand strength, innovation and resilient seasonal demand.
Shares of this Zacks Rank #3 (Hold) company have risen 8.5% over the past six months compared with the industry’s decline of 17.1%.
Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2 (Buy).
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 10.3% and 567.7%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
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Soft & Chewy on the Outside, Sour on the Inside, SOUR PATCH KIDS CHEWS are Ready to Level Up Gaming Sessions
, /PRNewswire/ -- SOUR PATCH KIDS is breaking all its own rules with the launch of new SOUR PATCH KIDS CHEWS. SOUR PATCH KIDS CHEWS have a soft and chewy texture, are individually wrapped, and not shaped like classic Kids – in fact, they flip the SOUR PATCH KIDS experience you know on its head – they are sweet on the outside and have a burst of sour sanding on the inside. It's the sweet then sour experience your taste buds didn't see coming from SOUR PATCH KIDS.
"We know consumers want new textures and experiences when they're in the candy aisle1, so we saw an opportunity to bring SOUR PATCH KIDS signature sour to the world of chewy candy in a new and unique way," said Lauryn McDonough, Senior Director, Candy, Mondelēz International. "After talking to SOUR PATCH KIDS consumers, we learned that SOUR PATCH KIDS CHEWS are what today's consumers are after – you can sink your teeth into them, there's a bold sensorial experience, and the texture is just right."
A Great Candy Option for Gamers and Streamers
Eighty-seven percent of Gen Z say they play video games on devices such as smartphones, gaming consoles, or computers at least weekly, and SOUR PATCH KIDS wanted to make a candy that fit their lifestyle2.. Gamers can rest easy knowing their controllers are safe from sticky sour dust. The individually wrapped candies and sour on the inside means a shorter break from your controller due to sticky fingers, and more time battling your enemies and making game-winning plays.
To celebrate the SOUR PATCH KIDS CHEWS debut on shelf, the brand is teaming up with fan-favorite gaming streamers Cinna, Gleam, Typical Gamer, DOUGDOUG, JeromeASF, Juliakins, PartyArlie and Caryn and Connie bringing SOUR PATCH KIDS CHEWS straight to the livestream on Twitch and YouTube. From May through June, gaming partners will highlight new SOUR PATCH KIDS CHEWS while taking on sweet then sour challenges in a brand new Mischief Mode experience - a wild, interactive gaming experience where fans control the chaos. During select livestreams, viewers can participate in interactive moments to drive mischief and for the chance to win the ultimate gaming bundle, inclusive of a custom SOUR PATCH KIDS CHEWS gaming controller, SOUR PATCH KIDS CHEWS candy, and other merch.
New SOUR PATCH KIDS CHEWS Product Details
SOUR PATCH KIDS CHEWS come in classic SOUR PATCH KIDS flavors: REDBERRY, Blue Raspberry, Orange, Lemon, and Lime. They are available for purchase online and at major national retailers in a 1.9 oz king size pack for an SRP of $2.49, a 2.1 oz small peg bag for an SRP of $1.25, a 5.1 oz large peg bag for an SRP of $3.29, and an 8.1 oz small standup bag for an SRP of $5.09.
This new format from SOUR PATCH KIDS is also available in delicious SWEDISH FISH flavors like classic red, Blue Raspberry, Orange, Lemon, and Lime.
For more information about SOUR PATCH KIDS, please visit https://sourpatchkids.com/ and follow us on Instagram at @SourPatchKids and TikTok at @TheRealSourPatchKids.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2024 net revenues of approximately $36.4 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-sour-patch-kids-chews-are-here-to-challenge-the-candy-status-quo-302776331.html
I upgrade Mondelez (MDLZ) to a buy as profitability shows early signs of improvement and downside risk appears limited. Market sentiment is lagging behind as the overall impact on 2026 results is likely to be limited, but a medium to long-term opportunity exists. With pricing initiatives already in place, investors should also look for a potential stabilization of volumes through the rest of 2026.
May 20, 2026 10:01 ET | Source: Mondelez International, Inc.
CHICAGO, May 20, 2026 (GLOBE NEWSWIRE) -- The Board of Directors of Mondelēz International, Inc. (Nasdaq: MDLZ) today declared a regular quarterly dividend of $0.50 per share of Class A common stock. This dividend is payable on July 14, 2026, to shareholders of record as of the close of business on June 30, 2026.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.
Key Takeaways MDLZ's organic net revenues rose 3% in Q1; volume/mix fell 0.5 pts on downsizing. MDLZ's Emerging Markets revenues rose 6.3%, led by India and Brazil; volume/mix increased 0.5 pts. MDLZ's sales rose in biscuits, chocolate and gum; chocolate volume/mix fell 2.1% on pricing and downsizing. Mondelez International, Inc. (MDLZ - Free Report) entered 2026 with global consumers still facing cost-of-living pressure and economic uncertainty. Nonetheless, the company’s first-quarter 2026 update indicates that snacking demand remains broadly resilient, though performance varies by market and category.
Mondelez delivered 3% organic net revenue growth in the first quarter, while volume/mix declined 0.5 percentage points entirely due to package downsizing in select markets. Excluding that impact, the underlying volume/mix was positive, indicating steadier consumer demand than the headline figure suggests.
Emerging Markets offered the strongest evidence of resilience, with organic net revenues up 6.3% and volume/mix rising 0.5 percentage points, led by India and Brazil, along with solid growth in China and Southeast Asia. Developed Markets were mixed but improved, with organic net revenues up 0.8% despite a 1.2-percentage-point volume/mix decline. Europe faced pressure from cocoa-related pricing, revenue growth management and downsizing, while North America grew 0.5%, aided by sequential improvement in U.S. biscuits and strength in convenience, club and online channels.
Category trends also supported the view that snacking remains durable. Biscuits and baked snacks grew 1.7% in the quarter, chocolate rose 5.5%, and gum and candy increased 3.1%. However, chocolate volume/mix declined 2.1%, mainly due to pricing elasticities in parts of Europe, revenue growth management and downsizing actions.
Image Source: Zacks Investment Research
The broader takeaway is that snacking demand has not broken, but it has become more selective. Consumers are still buying into Mondelez’s core categories, especially in emerging markets, while developed markets show a clearer need for sharper price points, pack choices and channel execution. For Mondelez, the first-quarter results suggest that the snacking habit remains intact, even as shoppers become more cautious about how much and where they spend it.
Shares of this Zacks Rank #3 (Hold) company have risen 2.4% in the past three months against the industry’s decline of 14.1%.
Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) transforms food and animal byproducts into sustainable ingredients for essential uses. DAR carries a Zacks Rank #2.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.3% and 588.2%, respectively, from the year-ago reported figures. DAR delivered a trailing four-quarter earnings surprise of 16.1%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company, producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
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A golden cross, when the 50-day simple moving average climbs above the 200-day SMA, is one of the more closely watched technical signals on Wall Street. For Mondelez International (NASDAQ: MDLZ | MDLZ Price Prediction), the snack maker behind Oreo, Cadbury, and Toblerone, that crossover is now tantalizingly close.
Where the Moving Averages Sit Today As of May 21, 2026, Mondelez closed at $61.50, well above both key trendlines. The 50-day SMA stands at 58.57 and is climbing, having moved up from 57.97 on May 11. The 200-day SMA stands at 58.15 and is drifting lower, down from 60.12 in late February. With the short-term line rising and the long-term line declining, the spread has narrowed to roughly four-tenths of a point. A continued move higher, supported by the stock’s 9.6% one-month gain and 14.3% year-to-date advance, could trigger the cross very soon.
The Cocoa Catalyst Cocoa has been the single largest drag on margins. FY2025 operating income fell 44.08%, and net income fell 46.84%, with Q3 2025 marking peak costs of the year. CEO Dirk Van de Put told investors he was “encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall.” Sustained relief is the most powerful lever for re-rating the stock.
Emerging Markets and Pricing Power In Q1 2026, the engine was working. AMEA revenue grew 14.3%, Latin America 12.1%, and Europe 9.0%, while North America inched up 0.5%. Emerging Markets organic growth of 6.3% came with positive volume/mix of +0.5pp, an important signal that elasticity is improving as pricing decelerates to 3.5pp from 9.9pp in Q4.
Earnings, Cash, and Sentiment The first quarter delivered EPS of $0.67, versus $0.6079 expected, a 10.22% beat. Revenue of $10.08 billion was up 8.24% year over year. Management reaffirmed 2026 guidance for flat to 2% organic revenue growth, flat to 5% adjusted EPS growth, and roughly $3 billion in free cash flow, with an expected 2.0% FX tailwind.
Wall Street is generally positive: an average analyst target of $67.20 sits above the current quote, with five Strong Buys, 12 Buys, nine Holds, and no Sells. The stock trades at a 20x forward earnings multiple.
What Could Block the Cross Renewed cocoa inflation; consumer downtrading; USMCA tariff changes; hyperinflation in Argentina, Türkiye, Egypt, and Nigeria; or a sharp dollar rally could stall momentum. The 200-day line will keep falling for now, which actually helps the math. The question is whether the 50-day can keep its upward slope intact long enough to complete the handshake.
Updated look celebrates NEWTONS heritage while introducing a bolder, modern expression
, /PRNewswire/ -- NEWTONS, the Ooey Gooey, Rich and Chewy cookie bar made with real fig, is introducing a refreshed brand identity and updated packaging design. Rolling out nationwide in May 2026, the updated design brings a modern, vibrant expression to NEWTONS packaging while continuing to spotlight the fig cookie bar generations of fans know and love.
NEWTONS updated packaging features bold graphics and enlarged imagery of the iconic bar with real fig filling.
The new packaging celebrates NEWTONS 130 year heritage while introducing the cookie bar to a new generation. The new packaging was designed in part to help introduce the legacy brand to a new generation of NEWTONS fans. The branding refresh includes packaging with energized graphics and features an enlarged, more prominent image of the iconic NEWTONS bar, allowing consumers to better appreciate the real fig filling and delicious taste that has made NEWTONS a beloved bar for generations.
In addition to the larger, more vivid image of the signature NEWTONS bar taking center stage, "MADE WITH REAL FIGS" is heavily emphasized – as are images of real figs – so consumers know they'll be biting into a delicious bar with real fig flavor.
Research showed that consumers had a strong visual association with the brand's signature yellow packaging, so this distinctive element was deliberately maintained to ensure continuity and brand recognition.
"For more than 130 years, NEWTONS has been a cherished cookie bar that people come back to time after time," said Caroline Suppiger, Brand Manager, NEWTONS at Mondelēz International. "The refreshed branding for NEWTONS brings forward the character of the brand, while making the fig-filled bar the hero. It's a way of celebrating our heritage while introducing NEWTONS to a new generation of fans."
The new packaging is designed to highlight NEWTONS signature real fig filling and soft baked texture, with bold, new design aspects that emphasize flavor and product appeal. The refreshed visual identity also reflects the brand's broader effort to stay relevant and exciting while keeping true to what has made it a favorite for decades. "We did a lot of testing and research to come to a design that felt true to the long history of NEWTONS, highlights what's great about the bar, and gets new audiences excited," continued Suppiger.
NEWTONS are available in a variety of formats including FIG NEWTONS, STRAWBERRY NEWTONS, FAT FREE NEWTONS, WHOLE GRAIN NEWTONS and more. Featuring a classic rectangular shape, the fig-filled cookie bars are Ooey Gooey, Rich and Chewy, perfect for snacking.
Updated NEWTONS packaging has begun to hit shelves at retailers nationwide across the brand's classic varieties. To learn more about NEWTONS and explore the brand's refreshed packaging design, visit snackworks.com/brands/newtons/.
About Mondelez International, Inc.
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as OREO, RITZ, LU, CLIF BAR and TATE'S BAKE SHOP biscuits and baked snacks, as well as CADBURY DAIRY MILK, MILKA and TOBERLONE chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.
Updated look celebrates NEWTONS heritage while introducing a bolder, modern expression
, /PRNewswire/ -- NEWTONS, the Ooey Gooey, Rich and Chewy cookie bar made with real fig, is introducing a refreshed brand identity and updated packaging design. Rolling out nationwide in May 2026, the updated design brings a modern, vibrant expression to NEWTONS packaging while continuing to spotlight the fig cookie bar generations of fans know and love.
The new packaging was designed in part to help introduce the legacy brand to a new generation of NEWTONS fans. The branding refresh includes packaging with energized graphics and features an enlarged, more prominent image of the iconic NEWTONS bar, allowing consumers to better appreciate the real fig filling and delicious taste that has made NEWTONS a beloved bar for generations.
In addition to the larger, more vivid image of the signature NEWTONS bar taking center stage, "MADE WITH REAL FIGS" is heavily emphasized – as are images of real figs – so consumers know they'll be biting into a delicious bar with real fig flavor.
Research showed that consumers had a strong visual association with the brand's signature yellow packaging, so this distinctive element was deliberately maintained to ensure continuity and brand recognition.
"For more than 130 years, NEWTONS has been a cherished cookie bar that people come back to time after time," said Caroline Suppiger, Brand Manager, NEWTONS at Mondelēz International. "The refreshed branding for NEWTONS brings forward the character of the brand, while making the fig-filled bar the hero. It's a way of celebrating our heritage while introducing NEWTONS to a new generation of fans."
The new packaging is designed to highlight NEWTONS signature real fig filling and soft baked texture, with bold, new design aspects that emphasize flavor and product appeal. The refreshed visual identity also reflects the brand's broader effort to stay relevant and exciting while keeping true to what has made it a favorite for decades. "We did a lot of testing and research to come to a design that felt true to the long history of NEWTONS, highlights what's great about the bar, and gets new audiences excited," continued Suppiger.
NEWTONS are available in a variety of formats including FIG NEWTONS, STRAWBERRY NEWTONS, FAT FREE NEWTONS, WHOLE GRAIN NEWTONS and more. Featuring a classic rectangular shape, the fig-filled cookie bars are Ooey Gooey, Rich and Chewy, perfect for snacking.
Updated NEWTONS packaging has begun to hit shelves at retailers nationwide across the brand's classic varieties. To learn more about NEWTONS and explore the brand's refreshed packaging design, visit snackworks.com/brands/newtons/.
About Mondelez International, Inc.
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as OREO, RITZ, LU, CLIF BAR and TATE'S BAKE SHOP biscuits and baked snacks, as well as CADBURY DAIRY MILK, MILKA and TOBERLONE chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.
View original content to download multimedia:https://www.prnewswire.com/news-releases/newtons-debuts-new-branding-and-packaging-introducing-the-iconic-bar-to-a-new-generation-302784655.html
It has been about a month since the last earnings report for Mondelez (MDLZ - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Mondelez due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Mondelez Q1 Earnings Beat Estimates, Revenues Up 8.2% Y/YMondelez International posted first-quarter 2026 results. Adjusted earnings were 67 cents per share, which decreased 14.9% on a constant-currency (cc) basis. The decline was caused by weaker operating performance and higher income taxes, partially offset by lower interest and other expenses, as well as a reduced share count. The metric beat the Zacks Consensus Estimate of 61 cents per share.
Net revenues rose 8.2% year over year to $10,080 million, outpacing the Zacks Consensus Estimate of $9,790 million. This growth was driven by favorable currency-related factors and underlying organic net revenue gains, partially offset by the absence of prior-year revenues from a divestiture. Organic net revenues rose 3% year over year in the first quarter, primarily driven by pricing, which contributed 3.5 percentage points, while volume/mix declined 0.5 percentage points.
Revenues from emerging markets increased 11.4% year over year to $4,149 million, with organic growth of 6.3%. Growth in these markets was supported by strong results in India and Brazil, along with solid growth in China and Southeast Asia. These gains reflect continued focus on expanding distribution and strengthening consumer engagement.
Revenues from developed markets increased 6.1% year over year to $5,931 million, with organic growth of 0.8%. Growth was supported by gradual improvement across key regions. In North America, growth was modest, with the U.S. biscuit business showing sequential improvement. Region-wise, revenues jumped 12.1% in Latin America and 14.3% in Asia, the Middle East and Africa, 9% in Europe and 0.5% in North America. On an organic basis, revenues rose 11.3% in AMEA, 5.1% in Latin America, 0.5% in North America and fell 0.6% in Europe.
MDLZ's Costs & MarginsAdjusted gross profit decreased 5.4% on a cc basis, while adjusted gross profit margin declined 270 basis points to 30.7%, mainly due to elevated input cost inflation and unfavorable volume/mix. These pressures were partly mitigated by higher pricing and lower manufacturing costs driven by productivity gains.
Adjusted operating income decreased 19% on a cc basis, with adjusted operating margin decreasing 310 basis points to 11.7%. The decline was caused by elevated input costs, unfavorable volume/mix, increased advertising and consumer promotion spending, and higher selling, general, and administrative expenses. These were partially offset by higher pricing and lower manufacturing costs from productivity improvements.
Mondelez’s Financial Health SnapshotMDLZ ended the quarter with cash and cash equivalents of $1,524 million and total debt of $21,024 million. For the three months ended March 31, 2026, the company generated $467 million in net cash from operating activities and delivered free cash flow of $155 million. During the quarter, the company returned $0.6 billion to its shareholders through dividends.
What to Expect From MDLZ in 2026?For 2026, the company reaffirmed its guidance for organic net revenue growth in the range of flat to 2% and adjusted EPS growth of flat to 5% on a constant currency basis. Free cash flow is expected to be approximately $3 billion.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.
VGM ScoresAt this time, Mondelez has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Mondelez has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Looking for things to do in NYC and beyond this summer? To celebrate the newly reformulated, softer-than-ever OREO CAKESTERS, the OREO brand is inviting fans on a free, sensory tour across the U.S., starting in New York's Meatpacking District.
The Softer* Side of Snacking: OREO CAKESTERS is hosting "The Soft Life"—a free, ASMR-packed pop-up in NYC's Meatpacking District on June 12–13 Enter a Pillowy, Playful World: The immersive experience replicates the pillowy soft feeling of biting into OREO CAKESTERS—a delicious, soft-baked twist on OREO cookies OREO CAKESTERS Hit the Road: "The Soft Life" will embark on a nationwide summer tour, with a custom-branded Airstream camper bringing the immersive sampling experience to cities and local events across the country , /PRNewswire/ -- This summer, OREO CAKESTERS is inviting fans to experience the softer* side of snacking as it launches "The Soft Life" Pop-Up: An OREO CAKESTERS Brand Experience and nationwide tour. Designed to bring the treat to life through the senses, the free, public pop-up experience completely immerses OREO cookie lovers in the pillowy world of the brand's softest OREO CAKESTERS recipe yet*.
OREO CAKESTERS launches “The Soft Life” Pop-Up: An OREO CAKESTERS Brand Experience and nationwide tour, starting in New York’s Meatpacking District. Inside this first-of-its-kind activation, fans will be able to see, touch and even taste what it means to embody OREO CAKESTERS' signature softness. Starting in New York City's Meatpacking District on June 12–13, 2026 before a nationwide tour, guests will be transported into a new reality with softness found at every turn:
A soft-baked bakery counter where guests order OREO CAKESTERS-to-go, presented like pastries. An interactive giveaway experience featuring numerous OREO CAKESTERS merch items. A cloud pillow pit with an overhead mirror for photo opportunities. A scent discovery station. Custom-branded Airstream camper parked outside, offering a preview of "The Soft Life" Summer Tour. First launched in 2007 and brought back in 2022 due to overwhelming fan demand, the OREO brand announced in April that it would reformulate its signature OREO CAKESTERS recipe to be even softer* and more delicious. Backed by The Food Institute and Collage Group data showing that nearly two thirds of modern snackers like soft textures in sweet snacks, and nearly 30% of consumers seek out sweet baked snacks on-the-go, per Circana and Mondelēz data, the new and improved OREO CAKESTERS deliver on the want for a textured snack, all in the same convenient packs.
"We know today's snackers want dynamic, on-the-go treats, and we are thrilled to deliver our softest, most delicious OREO CAKESTERS yet," said Melissa Renny, Senior Director, Cakes & Pastries. "While we kept the nostalgic flavor long-time fans expect, we wanted to celebrate this upgraded recipe in a big way that would pique the interest of new consumers. 'The Soft Life' goes beyond just tasting the product—it immerses fans in a playful, pillowy world where they can truly feel the softer side of OREO CAKESTERS."
"The Soft Life" Embarks on Nationwide Summer Tour
Can't make it to NYC? "The Soft Life" is hitting the road! Following the pop-up in New York City, a custom-branded Airstream camper will embark on "The Soft Life" Summer Tour. Beginning on July 2, 2026, the tour will bring the sensory experience and sampling to cities and local events across the country.
Want to be the first to know the tour stops? Sign up for the OREO Dunk Club at OREO.com/VIPDunkClub and follow @OREO on social for updates.
Event Details:
Event: "The Soft Life" Pop-Up: An OREO CAKESTERS Brand Experience Location: 22 Little West 12th Street, Meatpacking District, New York, NY 10014 Dates: June 12–13, 2026 Hours: 12:00 PM - 7:00 PM daily Admission: Free and open to the public "The Soft Life" Summer Tour Details:
Dates: Beginning on July 2 through the summer months Tour Stops (Cities): Milwaukee, WI – July 2-4 Chicago, IL – July 10 – 12 Columbus, OH – August 1-2 Bethlehem, PA – August 7 – 9 Asbury Park, NJ – August 14 – 16 Additional tour stops in California and Texas will be announced at a later date.
For more information and updates on "The Soft Life" or OREO CAKESTERS, fans can visit OREO at OREO.com and follow OREO on Facebook @OREOUnitedStates, Twitter/X @OREO, TikTok @OREO, or Instagram @OREO to be among the first to know about future brand news.
*Compared to the original OREO CAKESTERS recipe
About OREO Cookies
OREO® is AMERICA'S FAVORITE COOKIE®, available in more than 100 countries around the globe. Over 60 billion OREO® cookies are sold each year with more than 20 billion of those cookies sold in the U.S. annually. An estimated 500 billion OREO® cookies have been sold since the first OREO® biscuit was developed in 1912. For more information, follow OREO® on Facebook @OREOUnitedStates, Twitter/X @OREO, TikTok @OREO, and Instagram @OREO.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as OREO, RITZ, LU, CLIF BAR and TATE'S BAKE SHOP biscuits and baked snacks, as well as CADBURY DAIRY MILK, MILKA and TOBERLONE chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.
Media Contact
Weber Shandwick OREO Team
[email protected]
Looking for things to do in NYC and beyond this summer? To celebrate the newly reformulated, softer-than-ever OREO CAKESTERS, the OREO brand is inviting fans on a free, sensory tour across the U.S., starting in New York's Meatpacking District.
The Softer* Side of Snacking: OREO CAKESTERS is hosting "The Soft Life"—a free, ASMR-packed pop-up in NYC's Meatpacking District on June 12–13Enter a Pillowy, Playful World: The immersive experience replicates the pillowy soft feeling of biting into OREO CAKESTERS—a delicious, soft-baked twist on OREO cookiesOREO CAKESTERS Hit the Road: "The Soft Life" will embark on a nationwide summer tour, with a custom-branded Airstream camper bringing the immersive sampling experience to cities and local events across the country, /PRNewswire/ -- This summer, OREO CAKESTERS is inviting fans to experience the softer* side of snacking as it launches "The Soft Life" Pop-Up: An OREO CAKESTERS Brand Experience and nationwide tour. Designed to bring the treat to life through the senses, the free, public pop-up experience completely immerses OREO cookie lovers in the pillowy world of the brand's softest OREO CAKESTERS recipe yet*.
Inside this first-of-its-kind activation, fans will be able to see, touch and even taste what it means to embody OREO CAKESTERS' signature softness. Starting in New York City's Meatpacking District on June 12–13, 2026 before a nationwide tour, guests will be transported into a new reality with softness found at every turn:
A soft-baked bakery counter where guests order OREO CAKESTERS-to-go, presented like pastries.An interactive giveaway experience featuring numerous OREO CAKESTERS merch items.A cloud pillow pit with an overhead mirror for photo opportunities.A scent discovery station.Custom-branded Airstream camper parked outside, offering a preview of "The Soft Life" Summer Tour.First launched in 2007 and brought back in 2022 due to overwhelming fan demand, the OREO brand announced in April that it would reformulate its signature OREO CAKESTERS recipe to be even softer* and more delicious. Backed by The Food Institute and Collage Group data showing that nearly two thirds of modern snackers like soft textures in sweet snacks, and nearly 30% of consumers seek out sweet baked snacks on-the-go, per Circana and Mondelēz data, the new and improved OREO CAKESTERS deliver on the want for a textured snack, all in the same convenient packs.
"We know today's snackers want dynamic, on-the-go treats, and we are thrilled to deliver our softest, most delicious OREO CAKESTERS yet," said Melissa Renny, Senior Director, Cakes & Pastries. "While we kept the nostalgic flavor long-time fans expect, we wanted to celebrate this upgraded recipe in a big way that would pique the interest of new consumers. 'The Soft Life' goes beyond just tasting the product—it immerses fans in a playful, pillowy world where they can truly feel the softer side of OREO CAKESTERS."
"The Soft Life" Embarks on Nationwide Summer Tour
Can't make it to NYC? "The Soft Life" is hitting the road! Following the pop-up in New York City, a custom-branded Airstream camper will embark on "The Soft Life" Summer Tour. Beginning on July 2, 2026, the tour will bring the sensory experience and sampling to cities and local events across the country.
Want to be the first to know the tour stops? Sign up for the OREO Dunk Club at OREO.com/VIPDunkClub and follow @OREO on social for updates.
Event Details:
Event: "The Soft Life" Pop-Up: An OREO CAKESTERS Brand ExperienceLocation: 22 Little West 12th Street, Meatpacking District, New York, NY 10014Dates: June 12–13, 2026Hours: 12:00 PM - 7:00 PM daily Admission: Free and open to the public"The Soft Life" Summer Tour Details:
Dates: Beginning on July 2 through the summer monthsTour Stops (Cities):Milwaukee, WI – July 2-4Chicago, IL – July 10 – 12Columbus, OH – August 1-2Bethlehem, PA – August 7 – 9Asbury Park, NJ – August 14 – 16Additional tour stops in California and Texas will be announced at a later date.
For more information and updates on "The Soft Life" or OREO CAKESTERS, fans can visit OREO at OREO.com and follow OREO on Facebook @OREOUnitedStates, Twitter/X @OREO, TikTok @OREO, or Instagram @OREO to be among the first to know about future brand news.
*Compared to the original OREO CAKESTERS recipe
About OREO Cookies
OREO® is AMERICA'S FAVORITE COOKIE®, available in more than 100 countries around the globe. Over 60 billion OREO® cookies are sold each year with more than 20 billion of those cookies sold in the U.S. annually. An estimated 500 billion OREO® cookies have been sold since the first OREO® biscuit was developed in 1912. For more information, follow OREO® on Facebook @OREOUnitedStates, Twitter/X @OREO, TikTok @OREO, and Instagram @OREO.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as OREO, RITZ, LU, CLIF BAR and TATE'S BAKE SHOP biscuits and baked snacks, as well as CADBURY DAIRY MILK, MILKA and TOBERLONE chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ.
View original content to download multimedia:https://www.prnewswire.com/news-releases/oreo-cakesters-debuts-the-soft-life-a-nationwide-asmr-pop-up-that-engages-the-senses-302789385.html
Mondelez International (MDLZ) is upgraded to Buy, reflecting resilience amid macro headwinds and a valuation offering margin of safety. MDLZ delivered solid Q1 results, maintaining strong market positions and projecting $3B FCF in 2026 despite the previously anticipated cocoa price and inventory pressures. Management expects 2026 to be a weaker year compared to their long-term algorithm, with 0–2% organic net revenue growth, followed by stronger performance as macro pressures ease.
SOUR PATCH KIDS BESTIES brings iconic flavors together in one playful, connected treat designed to spark real-life connection
, /PRNewswire/ -- SOUR PATCH KIDS is bringing friends together with the launch of SOUR PATCH KIDS BESTIES, a playful new candy format where four SOUR PATCH KIDS candies are linked "hand-in-hand" to form one connected candy chain. Combining the brand's signature SOUR THEN SWEET taste with a fun, interactive experience, SOUR PATCH KIDS BESTIES create a social eating adventure.
We’re holding hands! SOUR PATCH KIDS BESTIES deliver a playful twist on the classic SOUR THEN SWEET candy experience.
Inspired by Gen Z’s love of friendship and connection, SOUR PATCH KIDS BESTIES feature Kids hand-in-hand in iconic flavor pairings. Since the majority of Gen Z see their friends as their soulmates and prioritize friendships over romantic relationships1, there's never been a better time to experience a candy meant to be shared with your bestie. With SOUR PATCH KIDS BESTIES, up to four candies are linked together by holding hands, just like real-life besties, and come in two flavor combos: REDBERRY & Blue Raspberry and Watermelon & Lime.
"Friendships are at the heart of Gen Z's identity and ethos. SOUR PATCH KIDS BESTIES celebrates this by offering a playful, delicious expression of real-life besties," said Lauryn McDonough, Senior Director, Candy at Mondelēz International. "This new format goes beyond flavor, creating a candy designed to be shared, celebrated and experienced together with your besties."
SOUR PATCH KIDS BESTIES are the physical embodiment of the dynamic duo that can't stand to be apart—always holding hands as they go through life. They're for the inseparable besties who are there for each other's sour moments and sweet redemption. Just like the perfectly paired flavors in every bag, the best friendships balance each other out.
SOUR PATCH KIDS BESTIES are now available at major retailers nationwide offered in a 3.18 oz peg bag for a suggested retail value of $1.25 and a 7.17 oz peg bag for $3.29, though pricing may vary.
For more information about SOUR PATCH KIDS, please visit https://sourpatchkids.com/ and follow us on Instagram at @SourPatchKids and TikTok at @TheRealSourPatchKids.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2024 net revenues of approximately $36.4 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.
Source: https://www.ypulse.com/article/2025/08/11/gen-z-is-prioritizing-friendship-over-romance/ SOURCE Mondelēz International
Releases Annual 2025 Progress Report June 11, 2026 16:05 ET | Source: Mondelez International, Inc.
Achieves ~100% Child Labor Monitoring and Remediation Systems (CLMRS) coverage of Cocoa Life communities in West Africa1Achieves ~100% SMETA audit coverage across our owned manufacturing plants over the past 3 yearsExpands Human Rights Due Diligence (HRDD) coverage of suppliers and audited ~1,200+ suppliers CHICAGO , June 11, 2026 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today, in observance of World Day Against Child Labor June 12, released its 2025 Human Rights Due Diligence and Modern Slavery Report, outlining the company’s continued progress to help prevent, identify and address potential human rights and modern slavery risks across its operations and value chain.
“We continue to believe that helping to drive positive change at scale across the communities our business touches is an integral part of value creation. Simply put, we believe that more sustainable business is, and always will be, good business,” said Darren O’Brien, Chief Corporate & Government Affairs Officer & Chief Cocoa Officer, Mondelēz International. “That’s why an enhanced human rights due diligence approach enables us to increase focus and scale, meeting our long-term goals and addressing systemic human rights issues in ingredient supply chains through meaningful partnerships.”
Scaling Due Diligence across the Value Chain
Mondelēz International continues to scale its human rights due diligence (HRDD) approach across its own operations and value chain:
~100% of owned manufacturing sites (vs. ~96% in ’24) and ~99% of prioritized tier-1 suppliers (vs. ~98% in ’24) have completed third-party SMETA audits in the past 3 years.~1,200+ prioritized tier-1 supplier sites audited in 2025, expanding HRDD coverage of suppliers.~100 strategic suppliers for Mondelēz International engaged in joint industry trainings across key sourcing countries Brazil, India, Mexico and the US, to help suppliers implement HRDD leading practices since 2024.~50,000 colleagues trained on human rights issues, including ~7,000 in manufacturing and logistics and ~3,000 in key stewardship roles, since launching its dedicated Human Rights Policy in 2021. As part of its focus on prioritized ingredients, Mondelēz International continued scaling its signature cocoa sustainability program, Cocoa Life, in 2025:
Reached our 2025 goal of ~100% Child Labor Monitoring & Remediation Systems (CLMRS) coverage of Cocoa Life communities in West Africa – representing approximately 2,300 communities.
Cocoa Life’s integrated approach focused on developing ways to help make cocoa farming more profitable, help protect and restore forests and help lift local cocoa communities. This includes efforts focused on women’s empowerment, income diversification, and entrepreneurship through Village Savings and Loan Associations and partnerships with CARE International.
Mondelēz International believes addressing systemic human rights issues in ingredient supply chains needs collaboration between governments, industry, and civil society. Sector collaboration to accelerate impact across key ingredient supply chain in 2025 included:
Cocoa: Building on the prevention and monitoring pillars of its strategy to help protect children under its Cocoa Life program, Mondelēz International continued its support for sector-wide systemic solutions through its contribution to the International Cocoa Initiative, and investments in public private partnerships to improve access to quality education in Cote d’Ivoire and Ghana.Palm Oil: Mondelēz International requires suppliers to respect human rights, including land rights, Free Prior and Informed Consent (FPIC) and the rights of human rights defenders, as laid out in their strengthened 2025 Palm Oil Action Plan (POAP). To help address some of the systemic issues in the palm supply chains, the Company supports collective action through the Consumer Goods Forum’s Human Rights Coalition and other initiatives focused on tackling the root causes of land rights issues in Indonesia.Sugar Cane: In 2025, Mondelēz International became a member of Bonsucro, the leading global sustainability platform and standard for sugarcane. With the goal to collaborate with others to further strengthen the tools, resources, as well as environmental and social standards related to sustainable sugarcane production.Hazelnuts: In 2025 the Company joined forces with other companies in the food industry, via a multistakeholder program coordinated by the Association of Chocolate, Biscuit and Confectionery Industries of Europe (CAOBISCO) in partnership with the International Labour Organization (ILO) and continued in the role of co-chair to support this public-private partnership with the ILO to help tackle potential child labor risks in hazelnut harvesting in Turkey. Our Human Rights Approach
At Mondelēz International, we are committed to making our snacks the right way, protecting the planet and respecting the human rights of people in our value chain.
In addition to abiding by applicable law and regulation, Mondelēz International strives to respect internationally recognized human rights, as relevant to our operations. This approach is guided by certain international conventions and protocols, which serve as illustrative examples of potential approaches for helping to prevent and mitigate human rights risks.
In connection with these efforts, our Human Rights Policy is mindful of the United Nations Guiding Principles on Business and Human Rights (UNGPs) and other external instruments, which inspire our approach to helping prevent and mitigate human rights risks. Our Code of Conduct and Supplier Code of Conduct are aligned with our Human Rights Policy.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may include, among others, the words, and variations of words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” “remain,” “potential,” “commitment,” “outlook,” “continue,” “strive,” “ambition” or other similar words or expressions, including, but not limited to, statements of belief or expectation and statements about Mondelēz International’s outlook, performance, or leadership position in snacking. Although we believe the expectations reflected in these forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in these forward-looking statements. Please also see Mondelēz International’s risk factors, as they may be amended from time to time, set forth in its filings with the U.S. Securities and Exchange Commission, including its most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. There may be other factors not presently known to Mondelēz International or which it currently considers to be immaterial that could cause Mondelēz International’s actual results to differ materially from those projected in any forward-looking statements it makes. Mondelēz International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
1 We aim to regularly and transparently report our progress. You can find additional details on Mondelēz International’s governance and sustainability goals and reported information within the About This Report section of our 2025 Snacking Made Right Report.
VALE S.A. (VALE - Free Report) closed at $17.43 in the latest trading session, marking a -1.08% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.36%.
Coming into today, shares of the company had gained 19.95% in the past month. In that same time, the Basic Materials sector gained 5.76%, while the S&P 500 gained 5.98%.
Analysts and investors alike will be keeping a close eye on the performance of VALE S.A. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.47, indicating a 34.29% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.23 billion, up 13.74% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.11 per share and a revenue of $40.56 billion, demonstrating changes of +15.93% and +5.63%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for VALE S.A. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.86% higher. As of now, VALE S.A. holds a Zacks Rank of #3 (Hold).
In terms of valuation, VALE S.A. is currently trading at a Forward P/E ratio of 8.33. This represents no noticeable deviation compared to its industry average Forward P/E of 8.33.
The Mining - Iron industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow VALE in the coming trading sessions, be sure to utilize Zacks.com.
Fortis Capital Advisors LLC bought a new position in shares of Vale S.A. (NYSE:VALE – Free Report) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 69,513 shares of the basic materials company’s stock, valued at approximately $906,000.
Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. NewEdge Advisors LLC raised its position in shares of Vale by 4.9% during the first quarter. NewEdge Advisors LLC now owns 79,400 shares of the basic materials company’s stock worth $792,000 after purchasing an additional 3,704 shares during the period. Jones Financial Companies Lllp grew its position in shares of Vale by 46.6% in the 1st quarter. Jones Financial Companies Lllp now owns 37,613 shares of the basic materials company’s stock valued at $375,000 after purchasing an additional 11,964 shares during the period. Empowered Funds LLC bought a new stake in Vale during the 1st quarter worth approximately $171,000. Strs Ohio bought a new stake in Vale during the 1st quarter worth approximately $117,000. Finally, Sivia Capital Partners LLC acquired a new stake in Vale during the 2nd quarter worth approximately $123,000. 21.85% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling In other Vale news, VP Sobrinho Sami Arap acquired 12,990 shares of the business’s stock in a transaction dated Wednesday, April 1st. The stock was bought at an average cost of $16.11 per share, with a total value of $209,268.90. Following the completion of the transaction, the vice president directly owned 12,990 shares in the company, valued at approximately $209,268.90. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Parenti Grazielle Tallia bought 10,464 shares of Vale stock in a transaction dated Wednesday, April 1st. The shares were acquired at an average price of $16.11 per share, with a total value of $168,575.04. Following the completion of the purchase, the insider directly owned 10,464 shares in the company, valued at $168,575.04. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing.
Wall Street Analysts Forecast Growth VALE has been the topic of a number of research reports. Wells Fargo & Company lifted their price target on shares of Vale from $15.50 to $17.00 and gave the company an “equal weight” rating in a research note on Wednesday, April 15th. Weiss Ratings reissued a “hold (c)” rating on shares of Vale in a research report on Friday, April 10th. Zacks Research lowered shares of Vale from a “strong-buy” rating to a “hold” rating in a report on Thursday, February 5th. Bank of America raised shares of Vale from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $18.00 to $19.00 in a research report on Thursday, April 2nd. Finally, The Goldman Sachs Group upped their target price on shares of Vale from $13.80 to $18.00 and gave the stock a “buy” rating in a research note on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Vale currently has an average rating of “Moderate Buy” and an average price target of $16.02.
Get Our Latest Research Report on VALE
Vale Stock Performance Shares of VALE opened at $17.82 on Tuesday. The firm has a 50-day moving average of $16.14 and a 200-day moving average of $14.19. Vale S.A. has a one year low of $8.97 and a one year high of $17.94. The company has a market cap of $80.86 billion, a PE ratio of 31.81 and a beta of 0.53. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.15 and a quick ratio of 0.78.
Vale (NYSE:VALE – Get Free Report) last issued its earnings results on Friday, February 13th. The basic materials company reported ($0.90) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.52 by ($1.42). Vale had a net margin of 6.12% and a return on equity of 20.16%. The firm had revenue of $11.06 billion during the quarter, compared to the consensus estimate of $10.86 billion. As a group, equities analysts forecast that Vale S.A. will post 2.11 earnings per share for the current year.
Vale Profile (Free Report)
Vale SA is a Brazilian multinational mining company and one of the world’s largest producers of iron ore and iron ore pellets. In addition to iron ore, the company produces and sells a range of bulk commodities and metals, including nickel, copper, coal, manganese, ferroalloys and cobalt, and it participates in the fertilizer inputs market. Vale also operates extensive logistics assets — including rail, port and maritime logistics — that support its mining and export activities and provide services to third parties in some regions.
Headquartered in Brazil, Vale maintains a global operational footprint with mining, processing and shipping activities across the Americas, Africa, Asia and Oceania.
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