Track market-moving stories before they get noisy

The headline number gets attention. Palantir (NASDAQ:PLTR | PLTR Price Prediction) secured a $10 billion, 10-year Enterprise Agreement with the U.S. Army last summer.

The contract was awarded July 31, 2025, and the question worth asking now, nearly a year in, is whether Wall Street has properly priced what that vehicle does to the company’s competitive position. The stock is down 31% year to date and down 25% since the deal was awarded, so the market has clearly not treated this as a one-way moat story.

What the consolidation actually changes The Army agreement folds 75 contracts (15 prime plus 60 related) into a single vehicle, strips out reseller pass-through fees, and is available to other Department of Defense components. It also sits on top of the Maven Smart System work, including a 2025 expansion worth up to $795 million.

Fewer renewal cycles means fewer chances for a competitor to dislodge an incumbent, and removing resellers compresses the dollar path between the Pentagon and Palantir’s P&L. CRO Ryan Taylor noted Maven usage has doubled in the past four months through March and is now 4x over the past twelve months.

The structural point that gets lost in the multiple debate is that defense software, once embedded at the workflow layer, behaves more like infrastructure than tooling. Gotham has been woven into intelligence and operations workflows for over a decade, and the Maven Smart System now functions as the connective tissue between sensor data, targeting, and command decisions across multiple combatant commands.

An Enterprise Agreement that consolidates procurement vehicles raises the switching cost for any successor that might want to displace Palantir. That is the practical definition of a moat in government software.

The recurring-revenue case investors keep underweighting U.S. Government revenue reached $687 million in Q1 2026, up 84% year over year, with total remaining deal value of $11.8 billion and RPO of $4.5 billion, up 134% year over year. That is the texture of long-duration software infrastructure rather than project work.

CEO Alex Karp framed the posture bluntly. “We always prioritize the U.S. warfighters over everything else,” he said, adding that the company’s “biggest problem currently in the U.S. is that we just cannot meet demand.” Operating leverage is showing up where it should. GAAP operating margin reached 46% in Q1 2026.

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The commercial flywheel reinforces the government story rather than competing with it. U.S. commercial revenue grew 133% year-over-year in Q1 2026 to $595 million, and remaining deal value in that segment expanded 112% to $4.92 billion.

Moreover, Palantir’s Artificial Intelligence Platform has become the connective layer for enterprises trying to translate large-language-model output into auditable workflows. This is the same problem the DoD is solving at scale with Maven. The shared platform means engineering investment compounds across both customer bases, which is why adjusted operating margin expanded to 60% from 44% a year earlier.

The limits of a ceiling number The $10 billion is a ceiling, the maximum potential value, not guaranteed obligated spending. Army procurement totaled $25.3 billion in FY 2025 actuals and $30.1 billion enacted for FY 2026, and any single vendor’s draw against that is a political and budgetary outcome.

Palantir trades at a trailing P/E of 129x and a price-to-sales ratio of 53x, against an analyst target price of $182.75.

There are also genuine business risks worth flagging. Federal contracts carry termination-for-convenience clauses, customer concentration remains elevated even with the commercial mix shifting, and stock-based compensation ran at $201.6 million in Q1 alone. None of these are fatal, but they qualify the bull case in ways the headline ceiling does not.

What the deal does, and does not, settle The Enterprise Agreement makes Palantir harder to rip out and easier to expand into adjacent DoD components. It does not guarantee the whole $10 billion, and it does not justify any particular multiple.

Both things can be true. For investors, the question is not whether $10 billion lands on the income statement on a fixed schedule. Instead, it is whether the consolidation tightens Palantir’s grip on the workflow layer of U.S. defense software for the next decade. On that narrower question, the answer looks increasingly clear, even if the stock’s valuation forces a separate debate about price.

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Cathie Wood’s ARK funds kept buying Palantir (NASDAQ:PLTR | PLTR Price Prediction) into the teeth of its 2026 drawdown, picking up roughly 81,254 shares for about $9.7 million on June 23 and another 41,601 shares for roughly $4.5 million on June 26 across multiple tech names. That extends a months-long pattern of averaging down on weakness, and it sets up the only question that matters for a retirement-focused investor watching from the sidelines. Is she finally right, or is she catching the most expensive falling knife in enterprise software?

The setup is genuinely two-sided. Palantir hit a 12-month low near $107.27 before bouncing about 5% to roughly $115 as of this writing. PLTR stock is down sharply for 2026 and roughly 45% below its November 2025 high. Year to date through June 26, shares are off 31%. ARK is buying that.

The bull case ARK is underwriting Wood’s pattern here is a slow, mechanical accumulation as the price falls. The June 23 and June 26 prints sit inside a months-long sequence of dip-buying that began after Palantir rolled over from its 52-week high of $207.52. ARK is signaling that the selloff reflects sentiment and valuation, not the business itself.

Moreover, the fundamentals support that read. Q1 2026 revenue grew 84.7% year over year to $1.633 billion, beating consensus, and U.S. commercial revenue jumped 133% to $595 million. Management raised full-year 2026 revenue guidance to $7.650 to $7.662 billion, about 71% growth, and is guiding to adjusted free cash flow of $4.2 to $4.4 billion.

CEO Alex Karp framed the quarter this way: “Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric, a feat matched only by other fellow AI infrastructure companies: NVIDIA, Micron and SK hynix.” Add the $10 billion Army Enterprise Agreement and you get the ARK thesis in one sentence. Growth is accelerating, the government anchor is locked in, and the price is wrong.

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The bear case Burry has been winning The other side has real substance. Even after the drawdown, Palantir trades at a forward PE of 77x and a price-to-sales ratio of 53x. Those multiples assume the moat holds. The bear argument, articulated forcefully by Michael Burry in early June and amplified across Reddit’s r/stocks community, is that the same AI advances powering Palantir’s AIP today will eventually commoditize the enterprise software layer Palantir sits on.

If cognition becomes cheap, the premium compresses. Burry’s “sand castle supported only by AI applications narrative” post drew 402 upvotes and 159 comments and dragged r/stocks sentiment scores into the 18 to 35 range for two days. His short has worked. The stock is down hard in 2026, and ARK’s average cost on those late-June lots is already above where Palantir trades now.

Why following ARK is a bet on the multiple So is Wood finally right? She is right about the business and unproven on the multiple. Palantir is compounding faster than almost any enterprise software company in history, and a 46% GAAP operating margin is not a sand castle.

But buying a 77x forward multiple while the chart breaks down requires you to believe AI infrastructure pricing power survives the next two years intact. Burry is betting it does not. Wood is betting it does. For a retirement-focused reader, the useful takeaway is that following ARK here is a bet on multiple stability as much as on Karp’s execution, and those are very different risks.

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Micron Technology MU shares fell on Monday after South Korea unveiled plans for a massive new semiconductor investment program.

Shares of Micron were down about 1% at $1,117.19 after declining 6.7% on Friday.

The pullback came as South Korea's industry minister said Samsung Electronics and SK Hynix plan to spend a combined 800 trillion won, or approximately $518.6 billion, to develop new semiconductor manufacturing hubs in the country's southwest region.

The announcement underscores the intensifying race among the world's leading memory-chip producers to capture a larger share of the booming artificial intelligence market.

Micron, Samsung, and SK Hynix are the dominant suppliers of high-bandwidth memory (HBM) chips, a critical component used in advanced artificial intelligence systems developed by companies such as Nvidia.

Investors initially appeared concerned that the massive spending commitments could eventually increase competition in the sector.

However, the long-term impact may be limited in the near future. Large semiconductor fabrication facilities typically require years to construct and ramp into production.

Micron's own $100 billion semiconductor manufacturing project in New York, announced in 2022, is not expected to begin production until 2030.

The selloff also comes despite Micron recently delivering one of its strongest earnings reports on record as demand for AI-related memory products continues to accelerate.

Last week, the company reported fiscal third-quarter revenue of $41.46 billion, more than four times higher than the $9.3 billion generated in the same period a year earlier.

Revenue exceeded analyst expectations of nearly $36 billion, according to LSEG consensus estimates.

Management also provided a strong outlook, forecasting revenue of approximately $50 billion for the current quarter, compared with $11.3 billion during the same quarter last year.

The results reinforced investor confidence that supply constraints and growing AI infrastructure spending continue to support pricing across the memory market.

Following the earnings report, several Wall Street analysts raised their forecasts for Micron shares.

Among the most bullish was Barclays analyst Thomas O'Malley, who increased his price target by 70% to $2,000 from $1,175 while maintaining a Buy rating.

The revised target was based on a higher earnings outlook for fiscal 2027.

O'Malley raised his fiscal 2027 earnings-per-share estimate to $166.74 from $106.77 previously.

A key factor behind the upgrade was Micron's expanding use of supply agreements, or SCAs.

According to O'Malley, Micron disclosed stronger-than-expected details about these agreements, including both customer participation and revenue commitments.

The analyst said Micron has signed agreements with 16 customers across data center, consumer, and automotive markets, including four large customers and three medium-sized customers.

Most agreements run for five years between 2026 and 2030, while automotive contracts generally span three years.

O'Malley noted that the agreements typically include fixed pricing or pricing ranges, while still allowing for higher pricing on new product launches.

Currently, the signed agreements represent roughly 20% of Micron's DRAM volume and approximately 33% of NAND volume.

Micron expects more than half of its future revenue to eventually come from these agreements once the program is fully implemented.

According to O'Malley, 14 of the 16 signed agreements carry cumulative minimum revenue commitments totaling approximately $100 billion over their duration, with the potential for additional upside if industry supply remains constrained.

The analyst argued that the agreements provide meaningful downside protection while preserving exposure to further gains from continued AI-driven demand and favorable memory pricing conditions.

Key Takeaways BlackBerry is expanding QNX beyond automotive into robotics, healthcare and industrial automation.BB sees Physical AI and software-defined vehicles increasing demand for secure real-time systems.BlackBerry strengthened QNX through new design wins, partner ecosystem and Secure Communications growth. Several long-term technology trends are converging around embedded software, cybersecurity and intelligent connected systems, creating new opportunities for companies that provide the foundational software powering these environments. As AI increasingly moves from the cloud into physical devices, demand is rising for secure, deterministic operating systems capable of supporting safety-critical applications.

BlackBerry Limited (BB - Free Report) is positioning itself at the center of these structural shifts through its QNX business, which has evolved well beyond its automotive roots. While software-defined vehicles remain a major growth driver, the company is also expanding into robotics, industrial automation, healthcare and other embedded markets where reliability, security and real-time performance are essential. Combined with its Secure Communications business and growing ecosystem of technology partners, BlackBerry is building a broader platform designed to capitalize on the next generation of intelligent connected systems.

BB Expands Beyond AutomotiveAlthough automotive software continues to represent QNX's largest market, BlackBerry is steadily reducing its dependence on any single industry by expanding across the broader General Embedded Markets (GEM).

Management describes GEM as QNX's fastest-growing business, encompassing robotics, industrial automation, medical devices, semiconductor equipment and other safety-critical embedded applications. While these projects are generally smaller than automotive programs, their higher volume significantly expands BlackBerry's long-term addressable market.

Recent design wins illustrate this diversification. During the fiscal first quarter, BlackBerry secured a royalty commitment from a leading semiconductor equipment manufacturer while expanding its existing relationship with medical diagnostics company Luminex through an upgrade to the latest SDP 8 platform. These wins complement continued automotive momentum and demonstrate growing demand across multiple embedded industries.

Expanding beyond automotive also helps diversify future royalty streams. Rather than relying exclusively on vehicle production cycles, BlackBerry is building exposure to multiple industries that increasingly require secure, safety-certified operating systems as digital transformation accelerates.

BlackBerry Benefits From Physical AIUnlike traditional generative AI applications that primarily process information, Physical AI enables autonomous machines to perceive, make decisions and interact safely with the physical world. These systems require deterministic operating systems that deliver predictable responses under all operating conditions—a capability that distinguishes QNX from conventional software platforms.

Management believes automotive has effectively become the proving ground for Physical AI because modern vehicles function as highly sophisticated robots operating in complex environments. As robotics, autonomous industrial equipment and intelligent medical devices become more capable, many of the same software requirements—including real-time performance, functional safety and cybersecurity—will become increasingly important.

Software-defined vehicles and centralized computing architectures further strengthen this opportunity. Automakers are consolidating dozens of electronic control units into centralized computing platforms that require highly reliable operating systems capable of managing multiple safety-critical domains simultaneously. QNX has continued expanding design wins across advanced driver assistance systems, centralized compute platforms and commercial vehicles, reinforcing its leadership in this transition.

BlackBerry also views Alloy Core as a potential long-term catalyst. Rather than serving only as the operating system, Alloy Core aims to position BlackBerry as a broader platform provider that simplifies software-defined vehicle development. If widely adopted, Alloy Core could substantially increase software content per vehicle, expand average selling prices and drive larger future royalty streams.

BB Gains From Trusted PartnershipsBlackBerry's competitive position is strengthened by an expanding ecosystem of strategic partners and longstanding customer relationships.

Within QNX, collaborations with NVIDIA (NVDA - Free Report) , Qualcomm (QCOM - Free Report) and Arm position the operating system alongside many of the industry's leading semiconductor platforms. These relationships help integrate QNX into next-generation intelligent edge systems while serving as important sales channels for future deployments across automotive, robotics and broader Physical AI markets.

Recent design wins further reinforce the company's position in mission-critical environments. During the latest quarter, BlackBerry secured new automotive programs spanning advanced driver assistance systems, driver monitoring systems, commercial vehicles and centralized computing platforms while also expanding deployments of its latest SDP 8 technology. Development license revenue reached its highest level in eight quarters, providing an encouraging leading indicator for future royalty growth as customers begin developing new software platforms years before production begins.

Beyond QNX, BlackBerry continues leveraging decades-long relationships with governments, defense organizations and highly regulated industries through its Secure Communications business. Growing demand for digital sovereignty and cybersecurity modernization has supported new customer wins and contract expansions across North America and Europe, reinforcing the company's reputation in environments where security certifications and reliability remain critical competitive advantages.

How BB Ratings Support the Trend StoryBlackBerry currently carries a Zacks Rank #2 (Buy), reflecting improving earnings expectations and constructive near-term sentiment following stronger operating performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company also earns a Growth Score of A, supported by expanding QNX opportunities, improving profitability, stronger cash generation and multiple long-term technology trends that continue to broaden its addressable markets. These characteristics align well with investors seeking companies benefiting from secular growth themes.

At the same time, BlackBerry's Value Score of F and Momentum Score of F suggest that investors should remain mindful of valuation after the stock's substantial 2026 rally. Together, these produce an overall VGM Score of D, indicating that much of the improving outlook is already reflected in the current share price.

Taken together, BlackBerry's ratings support a balanced investment case. Improving earnings expectations and expanding opportunities across Physical AI, software-defined vehicles and embedded systems reinforce the company's long-term growth potential. However, investors should weigh those favorable industry trends against richer valuation metrics and the execution required to fully capitalize on these emerging markets.

Eli Lilly and Regeneron are among the first seven companies the U.S. Food and Drug Administration selected for a pilot program designed to accelerate reviews of new domestic pharmaceutical manufacturing facilities, CNBC has learned.

Lilly, Regeneron, Amneal, Cellares, Fujifilm Biotechnologies, Kriya Therapeutics and Kyowa Kirin are the first companies that will participate in the FDA's PreCheck pilot program, according to FDA spokesperson Benjamin Nichols. The initiative will allow regulators to start reviewing new manufacturing facilities while they're under construction to catch and correct any issues, which the FDA estimates could save companies up to 14 months.

Producing more drugs domestically has been a priority for the Trump administration. The initial recipients range from the most valuable healthcare company in the world to closely held biotechs developing gene therapies. The majority of them plan to make biologic drugs or genetic medicines, which involve more complex manufacturing than the pills most Americans know best.

To be eligible for the PreCheck program, companies needed to build a new manufacturing facility capable of making drugs that would address a market supply gap or improve access to therapies for unmet medical needs. Only drugs that rely on the facility will be covered by the program.

For example, the FDA selected Lilly's Lebanon, Indiana, facility that will make the main ingredients of GLP-1 pills and shots. Lilly said it's "evaluating how PreCheck and related regulatory improvements may impact the facility's timeline and will continue to work closely with FDA to support the program's success."

The $2 billion Saratoga Springs, New York, site that Regeneron announced last fall was also chosen. In a statement, Regeneron CEO Leonard Schleifer said Regeneron has invested in U.S. biologics manufacturing and advocated for increased focus on domestic production of medicines.

"We're pleased to see programs like the FDA's PreCheck Pilot Program that encourage collaboration between innovators and regulators to build next generation manufacturing capabilities and strengthen America's biopharmaceutical industry," he said.

Another recipient is Fujfilm Biotechnologies' new facility in Holly Springs, North Carolina. The contract manufacturer opened the site last year. It's already making monoclonal antibodies for customers Regeneron and Johnson & Johnson, and will produce them for other customers as more parts of the site open in 2027 and 2028.

The PreCheck program includes two components: facility readiness, where the FDA gives the companies technical guidance before the site opens, and application submission, where participants can get more hands-on feedback from the FDA and expedited inspections and facility evaluation.

Fujifilm said it expects the operational readiness review before the end of the year thanks to the expedited process. And it expects the program will allow its customers to explore faster approval pathways with the FDA.

Initial participants in the FDA's PreCheck pilot program

Amneal Pharmaceuticals: Amneal's facility in New York that will make small molecule sterile liquid products for pain management, respiratory and ophthalmic diseasesCellares: Cellares' facility in New Jersey that will manufacture cell-based gene therapies for oncology and hematology diseasesEli Lilly: Eli Lilly's Indiana facility that will make the main ingredients of GLP-1 pills and shotsFujifilm Biotechnologies: Fujifilm's facility in North Carolina that will produce monoclonal antibodies Kriya Therapeutics: Kriya's facility North Carolina that will manufacture AAV-based gene therapies for chronic diseasesKyowa Kirin: Kyowa's facility in North Carolina that will manufacture biologics for rare diseases.Regeneron: Regeneron's facility in New York that will produce biologic drug substance, sterile injectables and protein therapeutics for multiple diseases

Key Takeaways Palo Alto Networks partnered with IBM and Red Hat to speed protection against software vulnerabilities.PANW teamed up with Deutsche Telekom to launch Sovereign Cortex for regulated European industries.PANW's partnerships expand AI security capabilities and support broader enterprise customer opportunities. Palo Alto Networks (PANW - Free Report) is using strategic partnerships to expand its AI security platform and address new cybersecurity challenges. Rapid adoption of AI by enterprises requires the need for better protection against cyber threats and solutions that meet regulatory requirements. The company's recent partnerships with IBM, Red Hat and Deutsche Telekom support the above-mentioned goals as they expand PANW's security capabilities, while helping the company reach new customer segments.

PANW's partnership with IBM and Red Hat focuses on reducing the time between vulnerability discovery and protection. AI has made it possible to identify software vulnerabilities much faster, giving attackers less time to exploit them before organizations apply software patches. Under the partnership, PANW's Virtual Patching technology can immediately block attacks at the network level, while IBM and Red Hat's Project Lightwell provide software fixes that customers can test and deploy later. The solution also expands protection across open-source software, commercial applications, operational technology and healthcare systems.

The partnership with Deutsche Telekom is aimed at regulated industries in Europe. The companies launched Sovereign Cortex with T Security, an AI-driven security operations platform with additional data sovereignty controls. The solution provides European data residency, Europe-based support, encryption key controls and audited access logs to help organizations comply with regulations such as GDPR, NIS2 and DORA. The solution is scheduled to be released in the third quarter of fiscal 2026 and is initially targeted at customers in healthcare, financial services, the public sector and critical infrastructure.

The above-mentioned strategic partnerships strengthen different parts of PANW's business. The IBM and Red Hat partnership strengthens PANW's vulnerability management capabilities, while the Deutsche Telekom partnership expands PANW's presence in regulated European markets. Together, these partnerships should strengthen PANW's AI security platform, while creating additional opportunities for the company to win enterprise customers as AI adoption continues to grow.

How Competitors Fare Against PANWCompetitors like CrowdStrike (CRWD - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

CrowdStrike ended its first quarter of fiscal 2027 with $5.51 billion in ARR, reflecting 24% year-over-year growth. The robust increase was fueled by the growing adoption of CrowdStrike’s Falcon Flex subscription model.

Though comparatively a small competitor, SentinelOne posted first-quarter fiscal 2027 year-over-year growth of 23% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

PANW’s Price Performance, Valuation & EstimatesShares of Palo Alto Networks have jumped 65.1% in the year-to-date period compared with the Zacks Security industry’s return of 49.8%.

PANW’s YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Palo Alto Networks trades at a forward price-to-sales ratio of 18.35X compared with the industry’s average of 16.34X. The Zacks Value Score of F also suggests that PANW stock is overvalued.

PANW Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 and 2027 earnings implies year-over-year growth of 12.9% and 8.1%, respectively. The estimates for fiscal 2026 and 2027 have been revised up by 6 cents and 8 cents, respectively, over the past 30 days.

Image Source: Zacks Investment Research

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

Key Takeaways CCJ Q1 2026 adjusted EBITDA rose 44% YoY to CAD 509M ($372M).CCJ EBITDA growth driven by uranium price strength and Westinghouse, with 2025 EBITDA up 26% to CAD 1.93B.CCJ fuel services EBITDA fell 28% in Q1 2026 as prices dropped; Westinghouse 2026 EBITDA seen $370-$430M. Cameco Corporation’s (CCJ - Free Report) adjusted EBITDA has shown a strong and sustained upward trajectory over the past few years, driven primarily by uranium price strength and contributions from Westinghouse. 

In the first quarter of 2026, adjusted EBITDA rose 44% year over year to CAD 509 million ($372 million). This follows a strong 2025 performance, during which adjusted EBITDA rose 26% year over year to CAD 1.93 billion ($1.41 billion).  Over a longer horizon, profitability has expanded materially, with adjusted EBITDA rising more than fourfold from CAD 431 million in 2022 to CAD 1.93 billion in 2025.

The uranium segment remains the primary engine of EBITDA growth. In 2025, adjusted EBITDA increased 6% year over year to CAD 1.26 billion ($ 0.92 billion). This was supported by a 7% rise in revenues driven by a 9% increase in average realized uranium prices in Canadian dollar terms, somewhat offset by a 2% dip in sales volumes. Total cost of sales (including depreciation and amortization) increased 3%. 

Momentum strengthened further in the first quarter of 2026, when uranium revenues rose 15% to CAD 712 ($520 million) on higher volumes and prices. Cost of sales (including D&A) increased 9%. Adjusted EBITDA for the segment rose 48% year over year to CAD 423 million ($309 million).

The fuel services segment delivered strong growth in 2025 but showed some normalization in early 2026. In 2025, adjusted EBITDA increased 51% to CAD 219 million ($160 million). Revenues were up 22% for the year, attributed to a 14% increase in realized pricing. Total cost of products and services sold (including D&A) increased 10%. 

However, in the first quarter of 2026, adjusted EBITDA declined 28% to CAD 54 million ($39 million). Revenues dipped 1% with higher volumes being offset by a 17% decline in average realized prices.  Total cost of products and services sold (including D&A) increased 35%, weighing on the profitability in the quarter.

Westinghouse has emerged as a rapidly growing contributor to Cameco’s overall EBITDA profile. In 2025, adjusted EBITDA from Westinghouse increased 61% to CAD 780 million ($572 million) in 2025. This reflects the increase in Cameco’s share of Westinghouse’s second-quarter revenues tied to the Dukovany construction project. In the first quarter of 2026, adjusted EBITDA was CAD 122 million ($89 million), up 33% year over year. Management expects continued momentum, with 2026 guidance indicating Cameco’s share of Westinghouse’s adjusted EBITDA between $370 million and $430 million.

Looking ahead, Cameco’s EBITDA growth is expected to remain supported by sustained strength in uranium pricing, driven by structurally tight supply conditions and rising nuclear energy demand tied to energy security and decarbonization goals. The fuel services segment is expected to remain a stable contributor, supported by consistent conversion demand and improving pricing dynamics. 

Westinghouse represents an increasingly important long-term growth driver, offering exposure to global reactor restarts and nuclear construction pipelines. The Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) recently announced a conditional commitment of up to $17.5 billion in loan facilities to support investment in U.S. nuclear reactors. This is expected to provide the majority of the financing for Westinghouse to purchase the long-lead time items for up to 10 AP1000 nuclear reactors in the United States. The DOE financing package, combined with previous U.S. government initiatives supporting nuclear power, could create substantial opportunities for both Westinghouse and Cameco.

CCJ’s Price Performance, Valuation & EstimatesIn the past year, Cameco shares have gained 40.7% compared with the industry’s 21.3% growth. Uranium peers Energy Fuels (UUUU - Free Report) gained 154.2% while Centrus Energy (LEU - Free Report) dipped 9.7%. 

Image Source: Zacks Investment Research

CCJ stock is trading at a forward price-to-sales ratio of 17.92 compared with the industry’s 5.21. Energy Fuels is trading higher at 19.93, while Centrus Energy is trading lower at 6.76.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Cameco’s earnings for 2026 of $1.21 per share indicates year-over-year growth of 17.5%. The same for 2027 implies growth of 58.7%.

Image Source: Zacks Investment Research

The consensus estimate for Cameco’s earnings for 2026 has moved up over the past 60 days, while the same for 2027 has moved down, as shown in the chart below.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold).

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

Applied Materials AMAT shares drew investor attention on Monday, rising more than 10% after KeyBanc Capital Markets issued early commentary ahead of the company’s upcoming third-quarter earnings.

The move came as markets reassessed expectations around the semiconductor equipment maker’s near-term performance and longer-term growth outlook tied to artificial intelligence infrastructure demand.

More than a month before Applied Materials reports its third-quarter results, KeyBanc highlighted what it described as elevated expectations across the company’s key business segments.

This includes the semiconductor capital equipment, electronic manufacturing services, and outsourced semiconductor assembly and test operations.

The firm noted that expectations are now higher than ever, increasing short-term risk around results.

According to TheFly, KeyBanc said that for the stock to continue rising, investors would need to see earnings beats on key metrics, guidance above consensus, and management commentary supporting continued positive out-year revisions.

While the firm remained constructive, maintaining an ‘Overweight’ rating, it also raised its price target by $200 to $750, implying roughly 20% upside from the previous closing price on Friday.

KeyBanc also warned that any disappointment—actual or perceived—could trigger downside volatility, referencing patterns seen in the prior quarter.

Investor sentiment toward Applied Materials has also been shaped by its recent 2026 DRAM and Advanced Packaging Master Class event.

During the presentation, the company projected that semiconductor industry revenue could reach $1 trillion this year.

Brokerage commentary following the event reinforced a positive long-term view.

B. Riley described AMAT as well-positioned for a sustained multi-year semiconductor equipment investment cycle and a “larger-than-expected long-term” opportunity, with potential for increased market share.

Wells Fargo also said the event reinforced its constructive outlook on the company’s product portfolio.

Cantor Fitzgerald added that the artificial intelligence infrastructure buildout is accelerating industry growth, stating that expectations could reach roughly $3 trillion by 2029 and potentially exceed $3.5 trillion by 2030.

A key theme emerging from the company’s messaging is demand tied to next-generation computing constraints.

The June 25 Master Class event highlighted new chipmaking systems aimed at accelerating DRAM production and advanced packaging for AI chips, addressing what management described as a “memory wall” constraining AI compute performance.

A wave of analyst price target revisions has also supported sentiment around Applied Materials in recent weeks.

Jefferies raised its target to $770 from $510, B. Riley lifted its target to $790 from $550, Wells Fargo increased its target to $740 from $715, and BofA moved its target to $720 from $540, with all firms maintaining Buy or Overweight ratings.

The upgrades come alongside strong company guidance for fiscal Q3, projecting revenue of approximately $8.95 billion and non-GAAP EPS of $3.36, implying roughly 36% year-over-year earnings growth.

Sector conditions have also provided a supportive backdrop.

Peer Micron’s recent earnings report highlighted surging AI-driven memory demand, reinforcing the broader industry narrative benefiting semiconductor equipment suppliers like Applied Materials.

Taken together, KeyBanc’s caution on elevated expectations, strong AI-driven structural demand, and a steady stream of analyst upgrades have combined to keep Applied Materials firmly in focus as investors position ahead of its upcoming earnings release.

Space Exploration Technologies (SPCX +4.75%), also known as SpaceX, is a remarkable engineering organization carrying the balance sheet of a company that borrowed its way into an artificial intelligence (AI) race it hasn't yet proven it can win. For investors who either missed the IPO window, watched the post-debut sell-off with concern, or simply want exposure to the aerospace and defense sector without signing up for $400 billion in projected net debt by 2031, there are three businesses worth knowing. Each is durable, generating real cash, and doing something in 2026 that makes the long-term case for ownership cleaner than it has been in years.

Rocket Lab (RKLB +15.13%) is the most direct SpaceX analog available to public investors, and the gap between what the two companies are doing today is much narrower than the market has historically priced.

Rocket Lab just signed the largest launch contract in its history. The contract is a multilaunch agreement with an undisclosed customer that includes five dedicated Neutron rocket flights and three Electron flights, all scheduled between now and 2029. That deal pushed the company's total backlog past $2.2 billion, a number that keeps growing as the customer pipeline matures. CEO Peter Beck has been building toward Neutron's debut in Q4 2026, targeting its first commercial flight and then a cadence of three launches in year two and five in year three -- the same disciplined ramp-up Electron followed when it debuted in 2017.

What makes Rocket Lab structurally different from the other pure-play space names is that it doesn't just launch rockets. It manufactures satellite components, builds complete spacecraft, and operates the entire mission lifecycle from design to orbit. That vertical integration means revenue flows even in quarters when no rockets fly, and it means Rocket Lab has real relationships with the defense and intelligence community that translate into contracted work in the future. The Electron rocket alone has accumulated more than 70 missions, making Rocket Lab the second most-launched U.S. orbital rocket behind SpaceX's Falcon 9. The Neutron chapter hasn't even started yet.

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2. RTX RTX (RTX 0.09%) is what SpaceX would look like if it had spent 80 years building the infrastructure of modern aerospace instead of promising to build it.

In Q1 2026, RTX reported a record backlog of $271 billion, $162 billion in commercial aerospace and $109 billion in defense. That backlog represents contracted future revenue already on the books, work that will be delivered regardless of what the stock market does next month. Pratt & Whitney's GTF Advantage engine -- the updated version of the engine that caused significant aircraft-on-ground disruptions in 2023 -- is now in full commercial rollout, and shop visit volumes are compounding as airlines bring their fleets back in for maintenance. Raytheon's munitions business is operating at capacity, with RTX investing $200 million in Columbus, Georgia, and $115 million in Huntsville, Alabama, to expand missile production infrastructure that demand has already outpaced.

Image source: Getty Images.

RTX also secured a 20-year Patriot missile defense contract worth $50 billion through the Defense Logistics Agency in 2025, covering systems and sustainment for U.S. and international customers. A contract with a 20-year term is the opposite of a growth-stage narrative. It's a recurring revenue commitment that will still be generating cash when most of today's AI companies have been through multiple business cycles.

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3. Palantir Palantir Technologies (PLTR +3.21%) is the most unconventional of these three picks, but it belongs in this conversation for what it has built within the U.S. defense establishment over the past decade.

In March 2026, the Pentagon designated Palantir's Maven AI system as a formal program of record. This is the military's way of guaranteeing long-term budget allocation for a technology platform. Maven isn't a product Palantir sells to the Pentagon. It is the primary AI operating system the U.S. military uses for target identification, battlefield intelligence fusion, and operational decision-making across multiple theaters. Elevating Maven to a program of record means it now sits within the annual defense budget as a permanent line item, with funding protected from the uncertainty of contract-by-contract renewal.

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On top of Maven, Palantir holds a $10 billion, decade-long enterprise agreement with the U.S. Army that consolidates 75 separate contracts into a single framework. The company is also fighting for access to the Defense Intelligence Agency's data analytics modernization program, asserting in a formal protest that the DIA is building from scratch what Palantir's commercial platform already does. That is the posture of a company deeply embedded in government operations, able to contest procurement decisions from a position of strength.

None of these three companies needs SpaceX to fail. They each have their own reasons to exist and grow. But for investors seeking aerospace exposure with a track record, a backlog, and a balance sheet not assembled through a bridge loan, these three businesses make a cleaner case.

Key Takeaways Schneider trades at a higher forward P/E ratio than its industry average, signaling a expensive valuation.SNDR grapples with insurance-related costs, macro-economic uncertainty and lower brokerage volume.Schneider expects its 2026 adjusted earnings per share to be in the range of 70 cents to $1.00. Schneider National, Inc. (SNDR - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. The positive sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and full-year 2026 earnings has been revised upward in the past 90 days. The consensus mark for 2027 earnings has also been projected downward in the past 90 days.

The favorable estimate revisions indicate brokers’ confidence in the stock.

Image Source: Zacks Investment Research

Given this backdrop, the question now arises whether it is worth buying, holding, or selling the Schneider stock at current prices. Let us delve deeper to find out.

Tailwinds Working in Favor of Schneider StockSchneider’s management provided upbeat full-year 2026 earnings guidance. The company expects its 2026 adjusted earnings per share (EPS) to be in the range of 70 cents to $1.00, which is above the 2025 adjusted EPS of 63 cents. The upside is expected to have been aided by the cost reduction initiatives. With the successful attainment of the cost savings target in 2025, SNDR is hopeful to achieve another $40 million in targeted cost savings in 2026. SNDR aims to boost its earnings by leveraging productivity and asset efficiency actions while improving the topline without incremental growth investments. The Zacks Consensus Estimate for 2026 earnings is currently pegged at 90 cents per share.

Schneider’s solid balance sheet increases financial flexibility. The company ended first-quarter 2026 with cash and cash equivalents of $227.8 million and the current debt level of $10.7 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, SNDR’s long-term debt has declined to $388.1 million at first-quarter 2026-end from $565.8 million at the end of first-quarter 2025.

A strong balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, in 2022, 2023 and 2024, SNDR paid dividends of $55.7 million, $63.6 million and $66.6 million, respectively. As of March 31, 2026, the company had returned $17.1 million in the form of dividends to shareholders year to date.

SNDR is also active on the buyback front. In January 2026, SNDR's board of directors approved a new stock repurchase program, effective immediately, under which up to $150 million of the company’s outstanding Class A common stock, and/or Class B common stock, may be acquired over the next three years. This share buyback program supersedes and replaces the $150 million stock repurchase authorization approved by SNDR's board on Jan. 31, 2023 (the “Prior Repurchase Program”), which is scheduled to expire on Jan. 31, 2026, and is substantially similar to the Prior Repurchase Program. SNDR repurchased 4.4 million shares for a total of $110.1 million under the Prior Repurchase Program.

As of March 31, 2026, the company had repurchased a total of 0.2 million Class B shares amounting to $5.2 million under the new program. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.

Schneider Stock’s Price PerformanceShares of Schneider have gained 41.6% over the past three months, outperforming the transportation-services industry’s 9.8% increase, as well as that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .

Schneider Stock’s Three-Month Price Comparison Image Source: Zacks Investment Research

Headwinds Weighing on Schneider StockSchneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns and raised healthcare costs. As a result, despite witnessing a decline in capital expenditures from $573.8 million at the end of 2023 to $380.3 million at 2024-end to $289.2 million at the end of 2025, SNDR’s 2026 expectation for capital expenditures is above the prior-year actual figures of 2024 and 2025. For 2026, net capital expenditures are expected to be in the range of $400-$450 million. A rise in capital expenditures does not bode well for the company's bottom-line growth.

Macro-economic uncertainty continues to remain an overhang. The company's bottom line is significantly affected by the ongoing inflationary environment and supply-chain disruptions, which are driving up overall costs, particularly in the insurance domain and directly impacting operating expenses. Increased insurance expense and weakness in the freight market continue to hurt SNDR’s prospects.

Schneider's segmental revenues continue to be hurt by higher maintenance costs, lower gains on the sale of assets, increased fuel expense, lower brokerage volume and lower revenue per order. Market volatility and rising costs continue to challenge SNDR, potentially impacting its growth and earnings in the near term.

Unattractive Valuation Picture for SNDR StockSchneider looks expensive from a valuation standpoint. Considering the forward 12-month price-to-earnings ratio (P/E-F12M), SNDR is trading at a premium compared to the industry.

The stock has a forward 12-month P/E-F12M of 30.10X compared with 16.45X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also above the median level of 14.72X over the past five years. These factors indicate that the stock’s valuation is unattractive. SNDR has a Value Score of C.

Schneider P/E Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research

Not an Opportune Time to Buy Schneider StockThere is no doubt that the stock is currently unattractively valued. Further, Schneider is weighed down by an increase in third-party carrier capacity costs, unplanned auto production shutdowns, raised healthcare costs, higher maintenance costs, lower gains on the sale of assets and increased fuel expense. Lower brokerage volume and lower revenue per order continue to hurt SNDR's logistics segment. The ongoing volatile macro environment marked by economic uncertainty, shifting tariff regulations and geopolitical tensions also clouds Schneider’s prospects.

Despite these headwinds, we advise investors not to sell Schneider stock now, as it continues to be aided by its consistent shareholder-friendly initiatives (in the form of dividends and share buybacks), a solid balance sheet and cost reduction initiatives.

Considering all these factors, we advise investors to wait for a better entry point and not buy SNDR now. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ACAD up 6.8% after the CHMP recommended Daybu for EU approval in Rett syndrome following re-examination.Daybu could become the first EU-approved treatment for Rett syndrome's neurobehavioral symptoms.Acadia's phase III LAVENDER data supported the positive opinion after an earlier CHMP refusal. Acadia Pharmaceuticals (ACAD - Free Report) shares climbed 6.8% on Friday after the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency adopted a positive opinion following a re-examination procedure, recommending the approval of Daybu (trofinetide) for the treatment of neurobehavioral symptoms of Rett syndrome in adults and pediatric patients aged five years and older. The recommendation marks a major regulatory turnaround for the therapy, which could become the first approved treatment for this indication in the EU.

The positive CHMP recommendation represents an important milestone for Acadia as it seeks to expand Daybu's commercial footprint. Rett syndrome is a rare neurodevelopmental disorder with no therapies currently approved in the EU specifically for its neurobehavioral symptoms, leaving patients with limited treatment options. An approval would allow Acadia to address a significant unmet medical need while strengthening the long-term growth prospects of its rare disease franchise.

The CHMP's favorable opinion was primarily supported by data from the pivotal phase III LAVENDER study, which demonstrated statistically significant and clinically meaningful improvements in key measures of Rett syndrome. The study met its co-primary endpoints, showing benefits on the Rett Syndrome Behavior Questionnaire and the Clinical Global Impression-Improvement scale, indicating that Daybu can improve some of the core neurobehavioral manifestations of the disease that substantially affect patients' daily functioning and caregiver burden.

Following the CHMP recommendation, the European Commission (EC) will review the agency's opinion before issuing a final regulatory decision, which is expected in the coming months. If approved, Daybu's centralized marketing authorization would be valid across all 27 EU member states as well as Iceland, Liechtenstein and Norway, significantly expanding access to the therapy across Europe.

The FDA approved trofinetide as the first and only treatment for Rett syndrome in adults and pediatric patients aged two years and older in 2023. The drug is marketed under the brand name Daybue in the United States. Daybue is also marketed (and available) in Canada and Israel for the same indication.

Year to date, Acadia shares have lost 5.2% against the industry’s 5.2% growth.

Image Source: Zacks Investment Research

Earlier CHMP Refusal Delayed EU Expansion of ACAD’s DaybuThe latest recommendation follows a significant regulatory setback earlier this year, when the CHMP formally adopted a negative opinion recommending against the approval of trofinetide for the treatment of Rett syndrome in patients aged two years and older in the EU. The decision came after the committee had previously notified Acadia of a negative trend vote on the marketing application in early February, prompting the company to seek a formal re-examination of the application.

Although the pivotal LAVENDER study had achieved its co-primary and key secondary endpoints, the CHMP had previously concluded that several aspects of the evidence package limited its ability to support approval. The committee viewed the treatment benefit observed after 12 weeks as modest, questioned whether the study adequately captured all core symptoms of Rett syndrome and expressed concerns that patient discontinuations may have affected the interpretation of longer-term outcomes.

Following the initial refusal, Acadia reviewed the CHMP's objections in detail and proceeded with the re-examination process, ultimately securing the positive recommendation now under consideration by the EC. The favorable outcome substantially improves the therapy's regulatory outlook in Europe and revives the company's efforts to bring Daybu to patients across the region.

ACAD's Marketed Drugs Expected to Aid GrowthAcadia’s long-term growth is supported by its lead product, Nuplazid and Daybue in the United States. The company expects to generate around $1.7 billion in combined net sales by 2028, including $1 billion for Nuplazid and $700 million for Daybue.

Nuplazid is the first and only FDA-approved treatment for hallucinations and delusions associated with Parkinson’s disease psychosis in the United States. The drug enjoys patent protection in the United States until 2038, which gives it a long runway for revenue generation by protecting against generic erosion. In the first quarter of 2026, Nuplazid recorded $167 million in sales, up 5% year over year, driven primarily by volume growth.

Since its launch in 2023, Daybue has witnessed encouraging sales uptake. In the first quarter of 2026, Daybue recorded $101 million in sales, up 20% year over year, driven by growth in the drug’s unit sales as Acadia shipped it to more unique patients. A potential EU approval could further boost sales.

In late 2025, the FDA approved Daybue Stix (trofinetide) for oral solution, a dye- and preservative-free powder formulation for the treatment of Rett syndrome in adults and pediatric patients aged two years and older. The new product expands the Daybue franchise, which remains the only FDA-approved treatment option for this indication.

Per Acadia, the full U.S. launch of Daybue STIX is underway, with nearly 30% of patients using STIX either new to treatment or resuming therapy after previously discontinuing the liquid formulation. The company will continue to offer both formulations in the United States, strengthening its positioning in the Rett syndrome treatment market.

ACAD's Zacks Rank & Stocks to ConsiderAcadia currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) , Indivior Pharmaceuticals (INDV - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia Corporation’s 2026 EPS have increased from $1.50 to $2.97. Over the same period, EPS estimates for 2027 have also increased from $2.91 to $4.81. LQDA shares have rallied 126.7% year to date.

Liquidia Corporation’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.34 to $4.05. Over the same period, EPS estimates for 2027 have risen to $4.27 from $3.56. INDV shares have gained 16.6% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents. In the past 60 days, the estimates for its 2027 EPS have increased from 24 cents to 87 cents. IMCR shares have lost 11% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.

The AI build-out conversation tends to start and stop with chips. But the companies quietly landing multi-year, multi-billion-dollar contracts right now aren't making semiconductors—they're making the glass, connectors, and routing systems that hold the entire data center ecosystem together.

Lucas Downey of TradeSmith sees the AI infrastructure stack as five distinct layers: land and site development, power, cooling, compute, and memory, and finally, networking and connectivity.

That last layer—fiber, optics, and high-speed interconnects—is where he's focused, and where he believes analysts are still playing catch-up.

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The Shift From Copper to GlassThe transition driving demand here is straightforward: data centers are moving away from copper wiring and toward optical links made of glass and fiber. Optical connections carry data at the speed of light, generate less heat than copper, and reduce cooling costs.

For hyperscalers running massive AI workloads, those efficiency gains compound quickly.

Downey estimates AI infrastructure capital expenditure is approaching $1 trillion globally. The optical networking segment alone is seeing supply bottlenecks—there aren't enough components to meet demand—which is exactly the kind of constraint that tends to reward established manufacturers with the capacity to scale.

Amphenol: Connectors at the Core of Every RackAmphenol Today

$166.68 +2.96 (+1.81%)

As of 02:15 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$95.19▼

$168.75Dividend Yield0.60%

P/E Ratio47.93

Price Target$178.07

The first name Downey highlights is Amphenol Corporation NYSE: APH, one of the world's largest manufacturers of electronic connectors and interconnect systems. Amphenol isn't making the lasers or chips—it's making the physical connections between every component inside a data center: the racks, the servers, the assemblies. Every nanosecond of latency matters in high-speed AI workloads, and every connection counts.

The company delivered one of the biggest earnings beats of the recent season, with revenue of $7.62 billion, well above the Street's estimate of $7.08 billion. Earnings per share (EPS) also beat, and guidance came in above expectations. Downey notes that the magnitude of this latest beat is what's drawing renewed attention from analysts, who he says are still revising numbers higher.

Amphenol carries roughly a $200 billion market cap and has posted double-digit revenue and earnings growth projections extending out to 2028—making it, in Downey's view, a core position in a theme that isn't slowing down.

Corning: The Fiber Backbone of the AI EraThe most widely recognized name on the list is Corning Incorporated NYSE: GLW, a company that has been manufacturing specialty glass for over 170 years and is now at the center of the next generation of optical fiber infrastructure.

Corning Today

$251.18 +30.13 (+13.63%)

As of 02:15 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$51.32▼

$254.22Dividend Yield0.45%

P/E Ratio119.73

Price Target$182.62

Corning recently secured two significant hyperscaler deals. The first is a partnership with NVIDIA Corporation NASDAQ: NVDA to expand U.S.-based optical connectivity manufacturing—Corning expects to grow its U.S. optical connectivity capacity 10x and U.S. fiber capacity by more than 50% under the agreement. The second is a multi-billion-dollar deal with Amazon.com NASDAQ: AMZN for U.S. fiber manufacturing, announced earlier this month.

At a J.P. Morgan conference, Corning's management projected its sales run rate reaching $20 billion by year-end, $30 billion by 2028, and $40 billion by 2030. On the earnings side, Downey points to EPS slated around $3.19 this year, accelerating to $4.21 next year and $5.75 in 2028. He expects those numbers to be revised higher as more hyperscalers follow NVIDIA and Amazon to the table.

The stock has already had a substantial run, and the analyst consensus has been slow to keep pace. Downey draws a direct parallel to Micron Technology NASDAQ: MU, where analysts persistently underestimated the demand cycle before eventually catching up with a wave of estimate upgrades. He sees the same dynamic unfolding in optical.

Ciena: The Traffic Director of the Optical NetworkCiena Today

$480.63 +1.13 (+0.24%)

As of 02:15 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$76.89▼

$637.51P/E Ratio160.08

Price Target$530.56

The third name is Ciena Corporation NYSE: CIEN, which Downey describes as the intelligent routing layer of the optical ecosystem. Where Amphenol handles physical connections, and Corning manufactures the fiber cables, Ciena optimizes how data travels through those cables—routing light-speed signals, managing bandwidth, and reducing congestion across distributed AI clusters with thousands of simultaneous data packets in motion.

Ciena's recent earnings reflected the same demand story: EPS came in at $1.64 against estimates of $1.46, revenue beat consensus, and the company raised its full-year guidance to $6.3 billion—above the prior estimate of $6.15 billion—while noting margin expansion.

The stock has pulled back after a roughly 500% one-year run, which Downey attributes to seasonal mechanics—Russell index reconstitution and quarter-end rebalancing—rather than any change in fundamentals. He sees the pullback as a buying opportunity, with full-year 2026 EPS estimates around $6.50, accelerating to $9.65 the following year and $14.28 in 2028.

Following the Earnings, Not the HeadlinesThe broader framework Downey applies across all three names is the same: track where earnings estimates are going, not where the stock price has already been. When a company is landing multi-year deals with the world's largest cloud providers, the official estimates tend to lag reality. Analyst upgrades follow contracts, and stock re-ratings follow upgrades.

Near-term volatility—whether from AI bubble headlines, sector rotations, or index rebalancing—doesn't change the underlying demand picture. The data center build-out has committed capital stretching to 2030 and beyond. For investors willing to look past the noise, the optical layer may be the quietest opportunity left in an AI trade that's anything but quiet.

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Key Takeaways ADI generated $2.24B operating cash flow in fiscal 2026's first six months, up 15% year over year.Analog Devices keeps capital spending modest, supporting strong cash conversion and growth. ADI is building strategic inventory to meet demand in data center and automated test equipment markets. Analog Devices (ADI - Free Report) has a strong cash flow profile supported by high gross margins, low capital intensity and disciplined capital allocation. During the first six months of fiscal 2026, the company generated operating cash flow of $2.24 billion, up 15% year over year, while capital expenditures increased only modestly to $247 million.

Analog Devices’ operating cash flow of $5.1 billion and free cash flow were $4.6 billion on a trailing 12-month basis or 40% and 36% of revenue, respectively. This highlights ADI's ability to convert a significant portion of its revenues into cash. The improvement in operating cash flow was primarily driven by a sharp increase in profitability.

ADI's modest capital expenditure requirements, expected to remain within 4-6% of annual revenues, continue to support exceptional cash conversion. Combined with $3.4 billion in cash, net leverage of just 0.8x and disciplined shareholder distributions, ADI remains well-positioned to fund growth initiatives while maintaining one of the highest-quality cash flow profiles in the analog semiconductor industry.

However, in the past six months, ADI’s strong earnings were partially offset by a significant working capital outflow, as operating assets and liabilities consumed $799 million of cash compared with just $36 million in the prior year. Beyond this risk, Analog Devices’ higher inventories and receivables reflected strategic inventory builds and increased shipments rather than weakening demand,

ADI ended the quarter with inventory at 168 days and channel inventory stable at six to seven weeks, levels that management considers healthy and manageable. The company is intentionally building strategic inventory to support future demand, particularly as data center and automated test equipment markets continue to experience strong growth.

How Competitors Fare Against Analog DevicesAnalog Devices competes with Texas Instruments (TXN - Free Report) and Broadcom (AVGO - Free Report) in the semiconductor market. Texas Instruments competes with ADI in industrial signal chains, precision sensing and power management, especially in PLCs, factory automation and motor control.

Broadcom is strong in networking, data center, broadband, Wi-Fi, Ethernet PHYs and switches. In the communications segment, Broadcom mainly competes with its high-speed connectivity, optical/wireline networking equipment, and cable or broadband IC portfolio.

Despite strong competition from Texas Instruments and Broadcom, Analog Devices has enough scope to grow in the communications space as new 5G technology is being introduced, which gives scope for expansion to all the players.

ADI’s Price Performance, Valuation and EstimatesShares of ADI have gained 62.6% in the past 12 months compared with the Zacks Semiconductor - Analog and Mixed industry’s growth of 61.9%.

ADI Past 12-Month Performance Chart
Image Source: Zacks Investment Research

From a valuation standpoint, ADI trades at a forward price-to-sales ratio of 11.93X, higher than the industry’s average of 9.52X.

ADI Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ADI’s fiscal 2026 and 2027 earnings implies year-over-year growth of 59% and 14%, respectively. The consensus estimate for fiscal 2026 and 2027 has remained unchanged in the past 30 days.

Image Source: Zacks Investment Research

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

Key Takeaways ASE Technology and Amkor are benefiting as AI demand lifts advanced chip packaging.ASE Technology's ATM revenues hit a record NT$112.4B, rising nearly 30% in Q1 2026.Amkor posted record Q1 revenues of $1.68B, up 27%, with EPS climbing to $0.33. Artificial intelligence (AI) and high-performance computing are driving unprecedented demand for advanced semiconductor packaging, making outsourced semiconductor assembly and test (OSAT) providers increasingly important to the semiconductor value chain. ASE Technology Holding (ASX - Free Report) and Amkor Technology (AMKR - Free Report) are two global leaders benefiting from this trend, with both reporting strong first-quarter 2026 results and expanding their advanced packaging capabilities.

While both companies are well-positioned to capitalize on the AI-driven packaging cycle, differences in their growth outlook, profitability and earnings trajectory could determine which stock offers superior long-term returns. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for ASE Technology StockASE Technology continues to strengthen its leadership in advanced semiconductor packaging as AI demand reshapes the industry. The company reported first-quarter 2026 revenues of NT$173.7 billion, up 17% year over year, while its Assembly, Testing and Material (ATM) business delivered record revenues of NT$112.4 billion, increasing nearly 30%. Even during a seasonally weak quarter, ATM revenues grew sequentially as demand for AI-related products remained exceptionally strong. Gross margin expanded to 20.1%, and operating income jumped 81% year over year.

AI has become ASE Technology's biggest growth engine. Management noted that AI workloads are reducing the traditional seasonality of the packaging business, with strong demand across LEAP advanced packaging, traditional advanced packaging and wirebond solutions. Computing applications continue to represent a growing portion of revenues as AI accelerators, high-bandwidth memory and advanced processors require increasingly sophisticated packaging technologies.

To support future demand, ASE Technology continues to expand LEAP capacity despite higher near-term depreciation expenses. Management expects newly installed production lines to ramp up primarily during the fourth quarter, supporting sequential margin expansion through the remainder of 2026. The company also benefits from its integrated packaging, testing and EMS operations, diversified customer base and improving factory utilization, all of which strengthen its competitive position.

The primary risks stem from elevated capital expenditures, higher depreciation during capacity expansion, foreign exchange volatility and geopolitical uncertainties. Nevertheless, these appear manageable considering the robust structural demand for AI packaging.

The Case for Amkor StockAmkor has also entered 2026 with considerable momentum. First-quarter revenues reached a record $1.68 billion, increasing 27% year over year as broad-based demand lifted every major end market. Improved factory utilization, growing advanced packaging programs and disciplined execution helped earnings per share climb to 33 cents from 9 cents a year ago.

Advanced packaging remains the centerpiece of Amkor's long-term strategy. Management continues investing heavily in HDFO, flip-chip packaging and advanced testing technologies to support AI servers and data-center processors. Several AI-focused customer programs are expected to ramp up during the second half of 2026, while the company believes advanced packaging will remain its primary long-term growth engine.

Amkor is simultaneously expanding its manufacturing footprint. Construction of its advanced packaging facility in Arizona remains on schedule, while additional manufacturing capacity in Korea will support growing AI infrastructure demand. These investments strengthen relationships with leading semiconductor customers seeking geographically diversified supply chains.

However, Amkor's investment cycle also creates challenges. The company expects capital expenditures of $2.5-$3 billion this year, which will pressure free cash flow in the near term. Export controls, geopolitical uncertainty, supply constraints involving advanced silicon and substrates, and rising material costs also remain important execution risks.

ASE Technology Leads the Performance RaceBoth stocks have significantly outperformed the broader semiconductor industry this year as investors increasingly favor AI infrastructure beneficiaries. ASE Technology shares have surged 149.8% year to date, comfortably ahead of Amkor's impressive 99.4% gain. Both stocks have substantially outperformed the Zacks Electronics-Semiconductors industry's 48.6% return, the Zacks Computer and Technology sector's 13.1% gain and the S&P 500's 7.2% advance.

ASX vs AMKR Price Performance (YTD)

Image Source: Zacks Investment Research

The strength extends across semiconductor infrastructure stocks. Applied Materials (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) have also benefited from AI-driven semiconductor investment and advanced manufacturing demand, rising 143.9% and 104.6% YTD, respectively. However, ASE Technology has delivered the strongest stock performance among this group, highlighting investor confidence in its AI packaging growth strategy.

ASX vs AMKR: Valuation ComparisonFollowing their strong rallies, both stocks trade at premiums to the industry average. ASE Technology currently trades at 35.33X forward 12-month earnings, slightly below Amkor's 37.11X, while the Zacks Electronics-Semiconductors industry trades at 33.61X.

ASX vs AMKR Valuation (P/E F12M)

Image Source: Zacks Investment Research

Compared with semiconductor equipment leaders AMAT (42.78X) and KLAC (50.18X), both ASE Technology and Amkor continue to command healthy valuations as investors increasingly recognize advanced packaging as one of the fastest-growing segments of the semiconductor supply chain. Even so, ASE Technology offers the more attractive valuation of the two while also providing stronger projected earnings growth.

Analysts Continue Raising Earnings EstimatesAnalysts have become increasingly optimistic about both companies, though ASE Technology enjoys stronger long-term growth expectations.

Over the past 60 days, the Zacks Consensus Estimate for ASE Technology's 2026 earnings has increased to 84 cents per share from 77 cents. Analysts expect earnings per share (EPS) to grow 47.4% on 19.6% revenue growth this year, followed by another 73.2% earnings increase on 22.4% revenue growth in 2027.

ASX Estimate Revision Trend

Image Source: Zacks Investment Research

Amkor has also witnessed positive estimate revisions, with the Zacks Consensus Estimate for 2026 EPS increasing to $2.08 from $1.94 over the past 60 days. Analysts currently expect 38.7% earnings growth on 13.2% revenue growth in 2026. However, growth is projected to moderate sharply in 2027, with EPS expected to increase just 3.7% on 9% revenue growth.

AMKR Estimate Revision Trend

Image Source: Zacks Investment Research

ASE Technology's stronger earnings trajectory reflects its larger exposure to AI-driven advanced packaging and suggests greater operating leverage as new capacity ramps.

Which Stock Offers Better Upside?Both ASE Technology and Amkor stand to benefit from the rapid expansion of AI infrastructure, advanced chip architectures and increasing semiconductor packaging complexity. Both companies delivered impressive first-quarter results, continue investing aggressively in advanced packaging capacity and maintain strong relationships with leading semiconductor customers.

However, ASE Technology currently appears to be the stronger investment. The company offers faster revenue growth, superior margin profile, stronger AI-driven ATM momentum, a slightly lower valuation and meaningfully better long-term earnings growth expectations. Its expanding LEAP platform and improving profitability further strengthen its competitive position as AI packaging demand accelerates.

Amkor, having a favorable Zacks Rank #2 (Buy), remains a compelling long-term semiconductor packaging company with solid execution and expanding global capacity. Nevertheless, ASE Technology's stronger fundamentals and better earnings outlook give it the edge as the better chip packaging stock for investors seeking greater upside from the ongoing AI infrastructure buildout. ASE Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways RGA benefits from favorable mortality trends and growing demand for pension risk transfer solutions.Canada operations and longevity insurance provide diversified earnings and support long-term growth.Reinsurance Group maintains capital flexibility through buybacks, dividends and investments to fund growth. Shares of Reinsurance Group of America, Incorporated (RGA - Free Report) have gained 8.4% in the past month compared with the industry’s growth of 7.9%

RGA's recent rally has been driven by first-quarter 2026 strong earnings, favorable mortality experience, growing pension risk transfer business, higher investment income and its still-attractive valuation, which have strengthened investor sentiment.

Image Source: Zacks Investment Research

Shares of Manulife Financial Corp. (MFC - Free Report) , Voya Financial, Inc. (VOYA - Free Report) and Sun Life Financial Inc. (SLF - Free Report) have gained 5.5%, 12.2% and 8.5%, respectively, in the past month.

RGA’s Average Target Price Suggests UpsideBased on short-term price targets offered by eight analysts, the Zacks average price target is $254.38 per share. The average suggests a potential 18.2% upside from the last closing price.

Image Source: Zacks Investment Research

RGA’s Attractive ValuationShares of RGA are trading at a discount to the industry. Its forward price-to-book value of 1.05X is lower than the industry average of 2.18X, the Finance sector’s 4.53X, and the Zacks S&P 500 Composite’s 7.92X. The life insurer has a Value Score of A.
 

Image Source: Zacks Investment Research

Shares of Manulife Financial and Voya Financial are also trading at a discount, whereas Sun Life Financial is trading at a premium to the industry average.

RGA’s Growth Projection EncouragesThe Zacks Consensus Estimate for Reinsurance Group’s 2026 earnings per share (EPS) indicates a year-over-year increase of 18.3%. The consensus estimate for revenues is pegged at $26.89 billion, implying a year-over-year improvement of 12.3%.

The consensus estimate for 2027 EPS and revenues indicates an increase of 6.6% and 6.5%, respectively, from the corresponding 2026 estimates.

Earnings have grown 26.7% over the past five years, outpacing the industry average of 5.9%.  

The Zacks Consensus Estimate for 2026 and 2027 has moved 2.3% and 0.8% north, respectively, over the last 60 days.

Key Points to Note for RGAReinsurance Group is a leader in the traditional United States and Latin American markets. It has successfully expanded its product line with market-leading services, capabilities, expertise and innovation. Individual mortality has matured, providing a base for stable earnings and capital generation. RGA continues to benefit from favorable mortality trends, particularly in its U.S. individual life business, which has improved underwriting profitability. The significant value embedded in the in-force business is anticipated to generate predictable long-term earnings.

In Canada, Reinsurance Group is a market leader with solid growth and profitability. It has a sizable block of in-force business, which is a significant source of future earnings. Reinsurance Group expects longevity insurance, which is projected to witness steady demand, to experience long-term growth in the Canadian market. While longevity insurance provides a diversified income source, it also acts as a hedge against the company’s large mortality position.

RGA continues to capitalize on robust demand for financial solutions. The company continues to benefit from increasing demand for pension risk transfer transactions, which has become an important long-term growth driver. Its combination of biometric underwriting expertise and asset management capabilities differentiates it from its peers and allows it to capture complex, higher-return transactions.

The company’s net investment income has been improving over the years. It witnessed a CAGR of 17.7% over the five years (2020-2025). Investment income remains supportive as new money yields continue to exceed the existing portfolio yield, improving book yields over time. Management expects variable investment income to be 7% during 2026 despite a subdued real estate environment.

RGA has also been managing capital effectively via share buybacks, dividend payments and prudent investments. As of March 31, 2026, excess capital stood at $2.4 billion, while deployable capital over the next 12 months reached $2.9 billion, providing ample flexibility to fund growth opportunities. RGA expects to return 20-30% of after-tax operating earnings to shareholders over the long term while reducing financial leverage during 2026.

Risks for RGAHigher total benefits and expenses remain concerns for RGA. In the first quarter of 2026, it increased 23.8% year over year to $6.1 billion due to higher claims and other policy benefits, interest credited, policy acquisition costs and other insurance expenses, which is weighing on margin expansion.

Reinsurance Group, being a multinational company, is exposed to foreign currency risk since exchange rates may be subject to adverse changes over time.

New regulations, including evolving capital and reinsurance requirements in the United States and the U.K., could increase compliance costs or reduce transaction economics.

ConclusionFavorable mortality experience, strong momentum in financial solutions, a diversified business, disciplined capital deployment and improving investment income should continue to favor RGA over the long term. However, higher expenses, currency exposure and regulatory changes remain risks.

Coupled with solid growth projections, attractive valuations and solid capital position, it is, therefore, wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Alto Ingredients is expanding its focus on creating more value from the biogenic CO2. A third liquid CO2 storage tank in Columbia is set to expand capacity amid a tight Pacific Northwest supply.Pekin's CO2 projects could boost revenues and support greater Section 45Z tax-credit benefits. Alto Ingredients, Inc. (ALTO - Free Report) is increasingly looking beyond ethanol and positioning carbon dioxide (CO2) as a higher-value growth opportunity that could strengthen its earnings mix over time. In its first-quarter 2026 results, management highlighted investments to create greater value from its biogenic CO2 production.

One key initiative is underway at the company's Columbia facility, where a third liquid CO2 storage tank is being added to expand processing and storage capacity. The project is expected to help Alto Ingredients capitalize on strong demand in the Pacific Northwest, where supplies of premium-grade CO2 remain tight. Maintenance completed during the first quarter is also expected to improve plant reliability and support growing customer demand during the summer season.

The bigger opportunity, however, lies at Alto Ingredients' Pekin campus. Selling more liquid CO2 could increase revenues, while capturing or storing CO2 emissions could reduce the carbon intensity of its fuel production. That, in turn, could help Alto Ingredients qualify for greater benefits under the Section 45Z clean fuel tax credit program.

Management also noted that changing market conditions and evolving policy support have opened up more flexible options than before. Instead of developing a carbon capture solution entirely on its own, Alto Ingredients is evaluating opportunities with other parties that could lower capital investment requirements. The company's ongoing efforts reflect its focus on creating more value from the biogenic CO2.

What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 351.3% in the past year compared with the industry’s 5.5% growth. Shares of Green Plains have risen 150.3%, while MGP Ingredients has declined 42.8% during the same period.

Image Source: Zacks Investment Research

From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.4 is lower than the industry’s average of 3.11. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.53) and MGP Ingredients (0.73)

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

Image Source: Zacks Investment Research

Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Artificial intelligence (AI) infrastructure provider Cerebras Systems (CBRS +14.67%) went public last month and popped impressively on its first day of trading on May 14.

Cerebras stock popped an impressive 68% on its first day, rising significantly from its initial public offering (IPO) price of $185. However, the stock has lost 41% of its value since that pop. What's more, the company's first-quarter 2026 results, which were released on June 23, failed to arrest the slide due to disappointing revenue guidance and margin concerns.

Analysts, however, remain confident of a turnaround in Cerebras' fortunes. They anticipate a 65% surge in Cerebras stock in the coming year, as evidenced by its 12-month median price target of $300. Notably, 10 of the 11 analysts covering Cerebras rate it as a buy. So, should you capitalize on the recent slide in this AI stock and consider buying it in anticipation of solid long-term gains?

Let's find out.

Image source: The Motley Fool.

Cerebras Systems is reporting solid sales growth, but there is a problem Cerebras differentiates itself from other AI chip companies by packing 4 billion transistors into a single wafer-sized chip. For comparison, companies like Nvidia and Broadcom break down silicon wafers into graphics cards and custom AI processors. Cerebras claims that its wafer-sized chip can eliminate memory-related bottlenecks by packing in a whopping 44 gigabytes (GB) of random-access memory (RAM) and offer significantly faster transmission speeds.

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The company claims that it can offer 28x more computing power compared to Nvidia's B200 graphics processing unit (GPU), while offering 15x faster inference performance as compared to GPU-powered clouds. The good news for Cerebras is that its chips are finding favor among companies such as OpenAI and Amazon.

It has an agreement with OpenAI to deploy 750 megawatts (MW) of its chips to run inference workloads "over the next several years," valued at more than $20 billion. Amazon, meanwhile, has also entered into a multi-year partnership with Cerebras to accelerate inference workloads on Amazon Web Services, though the financial details of the deal haven't been disclosed.

These deals should help Cerebras maintain its impressive growth rate. The company's Q1 revenue increased by 92% year over year to $191.3 million. Cerebras expects an 88% year-over-year increase in revenue in the current quarter to $194 million. The company has guided for a 69% jump in full-year revenue to $860 million, which seems to have disappointed investors.

Analysts would have been satisfied with a 2026 revenue guidance of $824.8 million, but the gradual slowdown in growth the company is indicating over the course of the year hasn't gone down well with investors. Additionally, the company's non-GAAP gross margin forecast for 2026 is another reason why Cerebras stock fell 20% following its earnings report.

Cerebras reported a non-GAAP gross margin of 47% in Q1. However, it expects to report a non-GAAP gross margin of 38% to 41% for the full year. Cerebras attributes this gross margin pressure to its strategy of renting its own chip systems back from an existing customer to fulfill its contractual backlog. Cerebras points out that this margin pressure will be temporary and should ease as it brings its own data center capacity online.

Cerebras CEO Andrew Feldman pointed out on the earnings call that the company is engaged with data center builders in North America, Europe, and the Middle East. As a result, Cerebras is confident of adding new capacity quickly going forward. Once that happens, the company's margins should start getting better. Throw in the massive backlog of more than $20 billion that Cerebras reported last quarter, and it won't be surprising to see the company quickly moving toward profitability. This is what analysts are anticipating.

Data by YCharts

The valuation is a concern, but the stock could jump impressively over the next three years The biggest problem with Cerebras right now is its valuation. The stock trades at 65 times sales, and the gradual slowdown it is forecasting in top-line growth for the rest of the year doesn't justify that multiple. The U.S. tech sector, for comparison, has an average price-to-sales ratio of 9.1.

However, as Cerebras adds more data center capacity using its proprietary chips, it should be able to step on the gas once again. Not surprisingly, analysts are expecting a significant acceleration in its top-line growth in 2027 and 2028.

Data by YCharts

Cerebras can indeed achieve such stunning growth, given its backlog, thereby justifying its premium valuation. Let's say it trades at even 15 times sales after three years and achieves $7.4 billion in revenue in 2028, its market cap could increase to $111 billion. That suggests potential upside of 175% from current levels.

So, investors looking for a growth stock can consider accumulating Cerebras following its sharp pullback in recent weeks, as it can bounce back and deliver healthy gains over the next three years.

Apple (AAPL 1.31%) finds itself in a tough position. It has avoided the heavy spending associated with artificial intelligence (AI) compute build-outs. Nonetheless, the surging demand for chips from some of its "Magnificent Seven" peers has put pressure on its business. In particular, the price of memory chips has soared over the last year or so. Micron Technology just reported that prices for its DRAM memory chips climbed more than 60% from the previous quarter.

But two recent moves could help mitigate the near-term pressure of higher memory prices on Apple while benefiting patient long-term investors willing to stick with the leading smartphone maker.

Image source: Getty Images.

Apple is leaning into high memory prices While memory chip prices are soaring, Apple's latest software updates are heavily reliant on increased memory capacity for its devices. Apple rebuilt Siri using Alphabet's Gemini large language model (LLM). The new AI features demonstrated at its Worldwide Developers Conference (WWDC) event earlier this month are far from cutting edge, but they take advantage of the personal information and context of your iPhone, providing unique capabilities that leading AI companies can't replicate.

Under the hood, Apple is heavily focused on keeping your private data private. That means running as many queries as possible on the iPhone itself instead of sending the prompt to a remote server for processing. Apple took pains to reduce the memory requirements for on-device AI, but there's only so much it can do while providing the most useful AI features. As a result, the upgraded Siri won't work with many older iPhones.

It might seem counterintuitive to increase memory requirements for its premier software update at a time when memory prices are so high. However, the timing could prove fortuitous for Apple. The new Siri update could help drive many owners of older devices to upgrade this fall with the next iPhone release. And that gives Apple the opportunity to raise the price on the iPhone.

Indeed, Apple just announced price increases for certain MacBook and iPad units. CEO Tim Cook suggested more price hikes could be coming in a recent interview. Apple had held back on price hikes despite increased component costs for several quarters, while its biggest competitors, including Samsung Electronics, raised prices. That may have helped fuel strong iPhone sales over the last few quarters, which are up 22% through the first six months of fiscal 2026.

A price hike will allow Apple to maintain most of its gross margin, while the demand driven by the Siri upgrade should help maintain unit sales. The result should be modest revenue growth with slightly slower profit growth in fiscal 2027, but the long-term potential of the two moves could be significant.

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Thinking long term It's important to note that the memory chip market is extremely cyclical. In times of high demand, prices for memory chips climb considerably higher. However, memory chipmakers eventually add capacity, bringing supply back in line with demand and ultimately leading to lower prices. That is to say, Apple won't be stuck paying the outrageously high prices the market currently demands forever.

On the other hand, consumer prices are much stickier. While Apple has introduced some low-end models to appeal to more budget-conscious consumers, it's rarely lowered the prices of its flagship devices.

As a result, Apple should be able to produce meaningful revenue growth with minimal margin compression in the near future. And while revenue growth might slow in later years, it should drive margin expansion as memory prices decline. The recent moves leverage its strong brand and its position as the leading smartphone manufacturer to maintain steady profit growth over time.

With the stock trading around 32 times forward earnings expectations, some may see it as too expensive for a relatively slow-growing business. But Apple is demonstrating its ability to deliver steady gains without significant capital expenditures, using its massive free cash flow to buy back stock and boost earnings per share. That makes it worth paying a premium price, especially for patient, long-term investors.

In its latest autonomous vehicle roadmap, JPMorgan noted that Waymo has 640 autonomous vehicles registered in Texas, compared with just 84 for Tesla, even after Tesla expanded its robotaxi footprint beyond Austin into Dallas and Houston this year. Rather than viewing the gap as a competitive weakness, the firm argues Tesla is intentionally prioritizing software readiness over fleet expansion.

Why Tesla’s Robotaxi Fleet Is SmallerJPMorgan said Tesla has taken a deliberately measured approach to its robotaxi rollout despite investor excitement around the company’s autonomous driving ambitions.

“Our view. Tesla has been cautious in its robotaxi rollout in Austin, and more recently in Dallas and Houston,” the analysts wrote. “On the 1Q call, Tesla management talked about taking a very cautious approach to the rollout of robotaxis.”

According to the note, Tesla believes there are still “many known improvements” that can be made to its Full Self-Driving software before deploying unsupervised vehicles at scale. As a result, the company sees little value in rapidly expanding its commercial fleet while major software upgrades remain in development.

That stands in contrast to Waymo, which has aggressively expanded across Texas after launching in Austin in March 2025 and has since entered Dallas, Houston and San Antonio. Of the company’s 640 Texas autonomous vehicles, JPMorgan estimates about 594 are Jaguar I-PACEs, while 46 are the new sixth-generation Ojai robotaxis.

Tesla’s FSD Progress Could Matter More Than Fleet SizeJPMorgan argues that the robotaxi race is not simply about who has the largest fleet today.

The firm highlighted continued improvements in Tesla’s Full Self-Driving software, noting that FSD version 14.x has surpassed 2,000 miles to critical disengagement, representing roughly a 4.3-fold improvement over the approximately 460 miles achieved by version 13.x.

The analysts also pointed to Tesla’s safety statistics, which show vehicles operating with FSD (Supervised) in North America average 5.5 million miles before a major collision, more than eight times the U.S. average, while traveling about 1.6 million miles before a minor collision, roughly seven times the national average.

Cybercab Could Change The PictureWhile Waymo currently enjoys a sizeable lead in deployed robotaxis, JPMorgan believes Tesla’s strategy is geared toward a much larger rollout once its software reaches the desired level of maturity.

The firm noted that Cybercab has already entered pilot production, with volume production expected later this year, potentially setting the stage for a much faster fleet expansion than investors are seeing today.

For now, the numbers heavily favor Waymo. But JPMorgan’s takeaway is that Tesla’s smaller robotaxi fleet reflects a conscious product strategy rather than an attempt to win the deployment race as quickly as possible.

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Alphabet shares rose 4% Monday as the company officially joined the Dow Jones Industrial Average, replacing Verizon and adding a symbolic blue-chip designation.

The move comes despite continued pressure on the stock. Even with Monday's gain, Alphabet is still tracking for its worst month since February of last year, with six of the past seven weeks in the red. That marks a sharp reversal from May, when the company briefly eclipsed Nvidia after hours to become the world's most valuable company by market capitalization.

Alphabet's Dow inclusion is more symbolic than mechanical. The stock is already in the S&P 500 and Nasdaq 100, where most benchmarked assets sit, limiting the amount of forced fund buying tied to the index change.

Recent Dow additions have also struggled after joining: Nvidia, Salesforce and Apple all traded lower 60 days after entering the index.

Read more CNBC tech newsOracle stock has worst week since 2001 dot-com bust as AI financing concerns escalateOpenAI hasn't held pre-IPO investor meetings or set timeline yet, sources sayOpenAI and Anthropic face new AI reality as users shift from 'tokenmaxxing' to efficiencyOpenAI limits new AI models to 'trusted partners' at request of U.S. governmentWeakness in Google shares comes as investors question the payoff from the company's AI spending, with lower-cost Chinese models improving, Google DeepMind researchers tied to Gemini and coding tools leaving for rivals like Anthropic and OpenAI, and compute access emerging as both a customer constraint and a recruiting issue.

Alphabet reportedly does not have enough compute capacity to meet demand from enterprise customers such as Meta, and is turning to infrastructure rivals, including SpaceX, to help close the gap. Alphabet did not respond to multiple requests for comment on reports about Meta's Gemini usage.

Compute access has also become a recruiting tactic. Noam Shazeer, the former Gemini co-lead who recently left Google for OpenAI, reportedly cited reduced access to compute as part of his frustration.

At the same time, Chinese models are pushing pricing lower just as Google tries to build an enterprise business around Gemini. DeepSeek has said the fourth version of its open-source model is coming in two weeks.

That strain is now showing up on Alphabet's balance sheet.

Its cash pile is shrinking, it skipped buybacks in the first quarter for the first time in nearly a decade, and it has raised more than $140 billion in debt and equity as the AI capex race gets more expensive.

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Alphabet stock chart.

Nike Inc (NYSE:NKE) finds itself with shares trading at 11-year lows ahead of fourth-quarter financial results, which are set for Tuesday after market close.

Here’s a look at the apparel company’s earnings estimates, what experts are saying ahead of the report and key items to watch.

Nike Q4 Earnings EstimatesAnalysts expect Nike Q4 revenue of $10.86 billion, down from $11.1 billion in the year-ago quarter, according to Benzinga Pro data.

The company has topped revenue estimates for six straight quarters and seven of the last 10 quarters overall.

Analysts expect quarterly earnings of 12 cents per share, down from 14 cents per share a year ago.

Nike has beaten earnings-per-share estimates for 11 consecutive quarters.

What Nike Experts Are SayingJPMorgan analyst Matthew Boss lowered the price target on Nike stock from $52 to $47 ahead of the earnings report, while maintaining a Neutral rating.

The analyst lowers estimates for the quarter and said the results will likely be "in line" with previous guidance.

Boss said comments from Nike’s CEO Elliott Hill for a recent Financial Times article show the restructuring could be taking longer than hoped.

"Our recent fieldwork points to a sequential deterioration in demand in April/May," Boss said.

Freedom Capital Markets Chief Market Strategist Jay Woods said Nike shareholders "are still waiting for that turnaround."

"Will management show progress when it comes to new product launches and reconnecting with consumers?" Woods said in a weekly newsletter.

The market expert said investors should watch for cost cuts, China growth and inventory figures in the fourth quarter.

"Expectations have already been lowered, so this quarter may be less about the numbers themselves and more about whether management can convince investors the stock is ready to run again."

Woods said Nike stock broke the $42 level of support ahead of earnings, a level it would need to recapture after earnings to push to another support level of $46.

"Those longer-term shareholders hoping for a quick fix may have to wait much longer for this trend to change."

Here are recent Nike analyst ratings and their price targets:

Deutsche Bank: Maintained Hold rating, lowered price target from $51 to $43 Oppenheimer: Maintained Outperform rating, lowered price target from $120 to $60 KeyBanc: Downgraded from Overweight to Sector Weight, no price target BTIG: Maintained Bu rating, lowered price target from $75 to $55 Key Items to WatchAs mentioned by Woods above, China, inventory and cost cuts could be three key areas for investors to watch in Nike’s report Tuesday and on the conference call.

In the third quarter, revenue was flat on a year-over-year basis, with North America sales growth of 3% helping to offset a 7% decline for the Greater China region. Other international regions posted year-over-year growth in the third quarter, a key area to watch on Tuesday.

Expectations are low for Nike heading into the earnings print, which could make the stock ripe for a rally if the company beats and provides strong guidance.

With shares at 11-year lows, the stock has sold off and many investors are heading to the sidelines with the turnaround taking longer than expected.

Price ActionNike stock is up 0.5% to $40.96 on Monday versus a 52-week trading range of $40.00 to $80.17. Its stock price is down 35.2% year-to-date in 2026 and down over 40% in the last 52 weeks.

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Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly Purchase Licensing Rights, opens new tab

CompaniesJune 29 (Reuters) - The U.S. Securities and Exchange Commission fined Bank ​of America's (BAC.N), opens new tab Merrill Lynch unit $7.5 million on Monday ‌for failing to file numerous reports meant to flag money laundering and other suspicious client activity.

Merrill neither admitted nor denied ​wrongdoing in accepting the civil fine over ​failures to file numerous suspicious activity reports (SARs) from ⁠April 2020 to September 2024.

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The case stemmed from Merrill's ​reliance on Bank of America's transaction monitoring software to ​comply with the federal Bank Secrecy Act, which requires broker-dealers to file SARs with the U.S. Treasury Department’s Financial Crimes ​Enforcement Network.

According to the SEC, the software aggregated potentially ​suspicious events into "event groups" and assigned them "risk scores."

The SEC said Merrill ‌investigated ⁠only event groups with risk scores of at least 20 for possible SAR filings, even though its internal analyses showed that some event groups with risk ​scores below 20 ​would trigger ⁠SAR filings if investigated.

Merrill cooperated with the SEC probe, and filed numerous SARs ​after lowering the threshold for internal reviews ​of ⁠suspicious events, the regulator said.

In a statement, Charlotte, North Carolina-based Bank of America said it maintains rigorous anti-money laundering ⁠practices, ​and continually reviews its anti-money ​laundering systems to detect and report suspicious activity.

Reporting by Jonathan Stempel in ​New York. Editing by Mark Potter and Chizu Nomiyama

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Zano sets block height for Hard Fork 6, expected August 25-27, bringing Gateway Addresses and two-way cross-chain access to the privacy blockchain.

A privacy-focused blockchain is about to become a lot easier for the rest of crypto to work with, without giving up what makes it private in the first place.

Zano, a cryptocurrency network built around strong transaction privacy, has announced the block height at which its sixth hard fork will activate. 

The upgrade, known as HF6, is scheduled to go live at block 3,833,000, expected between August 25 and 27, 2026. 

Wallets, miners, node operators, and infrastructure providers now have a concrete deadline to upgrade ahead of the fork. The updated wallet is already live.

The problem HF6 is solvingZano's privacy model has historically made it difficult for exchanges, decentralized exchanges, bridges, and other platforms to integrate with the network using their standard workflows. 

The way private blockchains handle balances and transaction tracking does not map cleanly onto how most crypto infrastructure is built.

HF6 addresses this directly by introducing Gateway Addresses, a new account-based address type that gives services a directly trackable balance and instant sync.

This makes it significantly easier for third-party platforms to connect to native ZANO and Confidential Assets, while leaving standard private Zano addresses completely unchanged for regular users.

"Hard Fork 6 could make a real difference for Zano's adoption, as it opens an easier path for ZANO into DeFi liquidity pools and broader exchange listings," said Quinten van Welzen, Head of Growth at Zano. 

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"Zano is already in touch with platforms including Thorchain and other DEXs about post-HF6 integrations."

Cross-chain without a bridgeHF6 also makes Zano's Bridgeless integration two-way for the first time. Native ZANO and supported Confidential Assets will be able to move outward to Ethereum, TON, and Solana, while external assets will be able to move into Zano. 

This gives ZANO a non-custodial path into public-chain liquidity, and users can return to Zano whenever they want private transactions again.

Trending on TheStreet Roundtable:Analyst sends blunt message on Elon Musk's Bitcoin tiesEx-Trump advisor unveils new Bitcoin price targetAnalyst issues bold call on Cathie Wood's favorite crypto stockWhat else is changing under the hoodBeyond the headline features, HF6 ships a wave of security and reliability improvements. Wallet encryption has been strengthened, making a stolen or copied wallet file significantly harder to crack. 

Per-output payment IDs now allow exchanges and merchants to match payments cleanly while keeping recipient privacy intact. Mining pools can now dry-run a block before finalising it, automatically dropping bad transactions rather than stalling. 

Nodes have been hardened against denial-of-service attacks, with added support for routing traffic through a proxy such as Tor via SOCKS5.

Developer RPC interfaces have also been tightened for safer integrations. At the consensus level, tighter validation rules and a more decisive fork-choice mechanism strengthen network-wide agreement.

The upgrade is the result of more than a year of development work and represents one of the most significant steps in Zano's history, an attempt to make the network accessible to the broader crypto ecosystem without compromising the privacy that defines it.

Key Takeaways CCL has 93% of 2026 business booked, with pricing ahead of last year at historic highs.Customer deposits hit a record $9.0B as onboard revenues and pre-cruise sales increased.Fuel costs rose nearly 30%, while Europe disruption, logistics and currency risks remain. Carnival Corporation Ltd. (CCL - Free Report) is gaining investor attention as its recovery story shifts from broad cruise demand to stronger execution. Booking visibility, onboard spending and destination investments are giving the company more ways to support revenues and earnings.

Royal Caribbean Group (RCL - Free Report) , which currently carries a Zacks Rank #3 (Hold), remains a relevant peer for investors tracking cruise pricing and destination-led demand. Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , which currently has a Zacks Rank #4 (Sell), also provides a useful comparison as investors assess whether cruise demand can support higher yields across the industry.

Carnival Bookings Stretch Far AheadCarnival’s booking curve remains the furthest out on record, giving the company unusual visibility into future revenues. For 2026, 93% of business is already on the books, with the booked position ahead of last year at historically high prices.

Demand is not limited to the current year. Since March, bookings for 2027 and beyond have been running ahead of prior-year levels on both volume and price, including stronger European bookings.

CCL Turns Demand Into Higher YieldsCarnival delivered its 12th consecutive quarter of record net yields. That matters because the company is not just filling ships, it is capturing demand at better price points.

Customer deposits reached an all-time high of $9.0 billion, up more than $450 million from the prior-year record. Higher second-quarter onboard revenues and increased pre-cruise onboard sales also show that more guest spending is being captured before sailings begin.

Carnival Builds a Destination AdvantageCarnival’s destination strategy is becoming a larger part of its investment case. Celebration Key now accommodates up to four ships and more than 13,000 guests on any given day, and is expected to welcome 3.5 million visitors in fiscal 2027.

RelaxAway, Half Moon Cay can support up to 12,000 visitors per day, while Isla Tropicale added a 48,000-square-foot recreational area. Carnival’s Alaska platform, with five brands, 19 ships, four embarkation ports, lodges, rail assets and motor coach operations, adds another layer of itinerary differentiation.

CCL Still Has Meaningful HeadwindsDemand strength does not remove margin risk. Cruise and tour operating expenses increased to $4.23 billion in the second quarter from $3.89 billion a year earlier, while selling and administrative expenses rose to $863 million from $816 million.

Fuel is another pressure point. Fuel expense rose to $595 million from $468 million, reflecting a nearly 30% increase in fuel prices. Geopolitical disruption in Europe, elevated logistics costs and currency sensitivity also remain risks that can affect yields, costs and earnings timing.

What Carnival’s Zacks Rank AddsThe bottom line is that Carnival’s story now depends on execution as much as demand. The company has stronger booking visibility, record deposits, higher onboard spending and a more differentiated destination portfolio, but cost and fuel volatility keep the setup from being one-sided.

CCL currently carries a Zacks Rank #3. It also has a Value Score of A, Growth Score of B, Momentum Score of B and VGM Score of A.

Those Style Scores are supportive, especially for investors looking for value, growth and momentum traits together. The Zacks Rank #3, however, points to a measured near-term outlook rather than a more aggressive bullish signal.

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

Key Takeaways Molson Coors is making Beyond Beer central to Horizon 2030 as it diversifies beyond traditional beer.Beyond Beer was the fastest-growing portfolio area in Q1 2026, led by Fever-Tree and Topo Chico Hard.Monaco Cocktails adds RTD scale, convenience-store reach and about 80 sales employees to support growth. Molson Coors Beverage Company (TAP - Free Report) is accelerating its transformation beyond traditional beer as management seeks new avenues for long-term growth. While beer remains the company's core business, faster-growing categories such as ready-to-drink (RTD) cocktails, hard seltzers and premium mixers are becoming increasingly important to diversify revenues and reach new consumers. TAP's Horizon 2030 strategy places Beyond Beer at the center of portfolio expansion, reflecting management's view that future growth will come from participating in a broader range of beverage occasions rather than relying solely on the mature beer category.

The strategy is already gaining traction. Management described Beyond Beer as the fastest-growing part of the portfolio during the first quarter of 2026, supported by brands such as Fever-Tree, Topo Chico Hard and the recently acquired Monaco Cocktails. Fever-Tree contributed meaningfully to first-quarter net sales and recently launched its first national U.S. advertising campaign. Meanwhile, Topo Chico Hard returned to growth following last year's regional refocusing. Molson Coors also completed the acquisition of Atomic Brands, adding Monaco Cocktails to establish a meaningful presence in the RTD market. Management expects Monaco to contribute roughly 1% of global net sales on a trailing 12-month basis while generating incremental profitability in its first year, despite being included in the portfolio for only nine months during 2026. The acquisition also brought approximately 80 sales employees, strengthening commercial execution across the Beyond Beer business.

Importantly, Molson Coors views Beyond Beer as more than a collection of new brands. The company is building dedicated commercial capabilities, expanding retail coverage and using acquisitions to address portfolio gaps while leveraging its existing distribution network. Management believes Monaco strengthens its convenience-store presence, while Fever-Tree and Topo Chico Hard broaden exposure to premium and fast-growing beverage segments. As these brands scale alongside continued marketing investments and distribution gains, Beyond Beer could evolve into one of Molson Coors' most important long-term growth engines.

TAP’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 11.4% in the past six months, underperforming the Zacks Beverages - Soft Drinks industry’s growth of 18.2% and the broader Consumer Staples sector’s fall of 10.1%.

TAP Stock's Six-Month Performance
Image Source: Zacks Investment Research

Is TAP Stock a Value Play?Molson Coors shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.43X, at a discount compared with the industry’s average of 15.94X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the beverage segment.

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

Stocks to ConsiderARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.

Fomento Economico Mexicano (FMX - Free Report) is a leading multinational consumer company with operations spanning proximity retail, fuel, health, digital financial services, logistics and distribution, while also holding a controlling stake in Coca-Cola FEMSA, the world's largest Coca-Cola franchise bottler. The company presently flaunts a Zacks Rank #1.

FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average. The Zacks Consensus Estimate for FMX’s current financial-year sales and EPS indicates growth of 17.5% and 115.3%, respectively, from the year-ago reported numbers.

The Vita Coco Company Inc. (COCO - Free Report) is a leading beverage company that develops, markets and distributes coconut water and other plant-based hydration products under brands such as Vita Coco, Farmers Organic and PWR LIFT across retail, e-commerce and foodservice channels worldwide. It currently sports a Zacks Rank #1.

Vita Coco delivered a trailing four-quarter earnings surprise of 11.7%, on average. The Zacks Consensus Estimate for COCO’s current financial-year sales and EPS indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.