Track market-moving stories before they get noisy

Key Takeaways eBay's Q3 2026 non-GAAP EPS rose 11.9% to $1.51, while revenues gained 13.7% to $3.21B; both beat estimates.eBay's GMV rose 15.2% to $23.17B, led by a 27% U.S. gain, while first-party ad revenues jumped 16% to $575M.eBay's non-GAAP operating margin fell 70 basis points to 26.3%, while Q4 revenues are seen at $3.19B-$3.24B.
eBay Inc. (EBAY - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.51 per share, increasing 11.9% year over year. The bottom line topped the Zacks Consensus Estimate by 5.59%.

Net revenues of $3.21 billion rose 13.7% year over year, beating the Zacks Consensus Estimate by 2.85%. Broad-based strength in focus categories and consumer-to-consumer activity lifted gross merchandise volume (GMV) 15.2% to $23.17 billion.

EBAY's Advertising Revenues Maintain MomentumFirst-party advertising products generated $575 million in revenues, up 16% year over year on both reported and foreign exchange-neutral bases. Promoted Listings and first-party display ads remain central to eBay's efforts to monetize marketplace traffic.

Total advertising revenues reached $607 million, up from $525 million in the year-ago quarter. Third-party advertising increased to $28 million from $22 million, while off-platform ad revenues declined to $4 million from $7 million. Advertising penetration was 2.7% of GMV, excluding Depop.

eBay Posts Regional GMV and Buyer Gains in Q3U.S. GMV increased 27% year over year to $12.55 billion. International GMV rose 4% to $10.62 billion. On an FX-neutral basis, consolidated GMV grew 16%, with U.S. volumes leading the expansion.

Active buyers climbed 10% to 147 million, including the acquired Depop business. Excluding Depop and Tise, active buyers totaled 136 million. The company's take rate, or revenues as a percentage of GMV, eased to 13.8% from 14% a year earlier.

EBAY Expands Recommerce, Live and DepopFocus Categories GMV increased 24% year over year on an FX-neutral basis, driven by collectibles, eBay Motors, fashion and refurbished items. The combined strategic priorities of focus categories, consumer-to-consumer commerce and recommerce accounted for 72% of GMV, excluding Depop, and grew approximately 20% on an FX-neutral basis.

eBay Live delivered another record quarter, with GMV growth well into triple digits across seven markets. Depop, acquired on July 30, 2026, more than doubled U.S. GMV, monthly active users and sold items year over year on a pro forma basis. eBay also expanded its AI-powered Magical Listing tools across six major markets.

eBay Margins Narrow as Expenses RiseGAAP operating expenses increased 17% year over year to $1.70 billion from $1.46 billion. Sales and marketing spending rose to $747 million from $606 million as eBay invested in Depop and strategic priorities. Product development expenses increased to $517 million from $455 million.

Non-GAAP operating income rose 10.9% to $843 million from $760 million, but the non-GAAP operating margin fell 70 basis points to 26.3%. The GAAP operating margin declined to 19.2% from 20.3%.

Non-GAAP net income rose 8.2% to $685 million, while diluted shares fell to 453 million from 467 million. GAAP earnings declined to $1.11 per share from $1.27 as the effective tax rate moved to 17.1% from negative 4.3%.

EBAY’s Balance Sheet & Cash FlowAs of Sept. 30, 2026, cash and cash equivalents and non-equity investments totaled $3.3 billion, down sequentially from $4.9 billion as of June 30, 2026.

Long-term debt declined marginally to $5.13 billion at the end of the third quarter from $5.14 billion in the prior quarter.

eBay repurchased $689 million in shares and paid $138 million in dividends, returning $827 million to its stockholders. About $1.3 billion remained under its buyback authorization at quarter-end. Cash and non-equity investments fell sequentially to $3.35 billion from $4.85 billion, while total debt was $6.73 billion.

In the reported quarter, cash flow from continuing operations was $875 million, down from $900 million in the prior-year quarter. Free cash flow declined to $749 million from $803 million, as purchases of property and equipment rose to $126 million from $97 million.

eBay Projects Continued Growth for Q4 and 2026For the fourth quarter of 2026, eBay expects revenues of $3.19-$3.24 billion and GMV of $23.70-$24.10 billion. Non-GAAP earnings are projected at $1.48-$1.53 per share, with non-GAAP operating income between $820 million and $850 million.

Depop is expected to contribute roughly four percentage points to FX-neutral GMV growth. Management expects GMV to outpace revenue growth partly because of Depop's mix and U.K. managed-shipping accounting.

For full-year 2026, projected revenues are $12.62-$12.67 billion and GMV is $91.50-$91.90 billion. Non-GAAP earnings are forecast at $6.25-$6.30 per share, with non-GAAP operating income projected at $3.46-$3.49 billion. Management targets roughly $2 billion of share repurchases for the year.

EBAY’s Zacks Rank & Other Stocks to ConsiderCurrently, eBay carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Retail-Wholesale sector are Arcos Dorados (ARCO - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and FIGS, Inc. (FIGS - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arcos Dorados’ shares have declined 5.7% year to date. ARCO is set to report its third-quarter 2026 results on Nov. 12.

Best Buy’s shares have gained 44.9% year to date. BBY is slated to report its third-quarter fiscal 2027 results on Nov. 24.

FIGS’ shares have surged 81.9% year to date. FIGS is slated to report its third-quarter 2026 results on Nov. 5.

Andy Alder and Arjun Mather were Stanford roommates who both studied computer science before spending a decade at Palantir. Alder led product design for a team of 800 people building software for U.S. defense and intelligence agencies, while Mather served as a senior vice president in the company's commercial practice.

Palladium has fallen below 1000, entering territory we identified as a key potential support area more than a week ago. Platinum, meanwhile, has fallen below 1500 after buyers failed to turn an earlier recovery attempt into a convincing reversal.

Two markets, two important support areas and two rather uncomfortable situations for the bulls.

But here’s where things get interesting.

Breaking below support during a trading session isn’t necessarily the same as confirming a lasting breakdown. Sometimes sellers manage to defend their advantage through the close, opening the door to another decline. Other times, buyers fight back and turn an apparent bearish victory into a failed breakdown.

So, have the bears just cleared the way toward their next downside objectives? Or will these key psychological levels trigger a stronger defensive response?

Today’s price action gives us plenty to examine, and the closing prices could provide the next important clues.

The attempt to close Monday’s bearish gap at 1555-1562 failed, and the subsequent retreat brought prices dangerously close to the July low and Wednesday’s bullish opening gap. That already warned that the developing bullish reversal scenario was losing credibility.

And Thursday’s sellers wasted little time taking advantage.

Their attack swept through Wednesday’s bullish gap at 1537-1546, pushed platinum below the July low around 1539, and then carried prices beneath the psychological 1500 barrier.

But the bears didn’t stop there.

The decline also breached the lower boundary of the red declining channel, taking platinum down to 1478.75. That’s a significant deterioration in the technical picture.

The potential island-style reversal we discussed yesterday had never received convincing confirmation, and now another downside objective is coming into focus.

If sellers maintain their advantage and platinum finishes the session below both 1500 and the channel’s lower boundary, the daily 127.2% Fibonacci extension around 1446.41 could become the next important destination.

But what if buyers fight back?

A recovery above 1500 and the channel boundary before the daily close would invalidate today’s breakdown beneath that support combination and weaken the immediate bearish argument.

That would be encouraging, but buyers would still need to recover considerable technical ground before a convincing bullish reversal could develop.

For now, the message is clear: the bulls had a chance to stabilize, but they failed to protect it, and today’s close will help determine whether the bears can turn that failure into another meaningful decline.

Daily Takeaways: Platinum has fallen below the July low of 1500 and the lower boundary of the red declining channel intraday. A daily close below the channel and 1500 would strengthen the bearish case, with 1446.41 as the next conditional target. Recovering both barriers before the close would invalidate the immediate breakdown and improve the chances of stabilization.

Palladium (PA.F) – We Marked the 1000 Zone. The Bears Have Arrived. Palladium trades near $1,002 after a sharp decline within a descending channel, testing support around $1,000, with the next marked level at $969. Sometimes the most interesting market developments begin with a level identified well before the price actually reaches it.

On October 22, we wrote:

“(…) Price has reached the lower boundary of the weekly red declining channel, while the weekly 78.6% retracement near 1010, psychological 1000 level and daily 161.8% extension at 996.80 create a deeper potential support cluster around 997-1010. (…)”

We returned to that same support combination in yesterday’s Free Lab Note.

And today?

Palladium didn’t just reach our projected support area. It fell below it.

Thursday’s sellers pushed prices to 990.75, moving beneath the psychological 1000 barrier and the daily 161.8% Fibonacci extension near 996.80. That’s an important continuation of the bearish scenario we’ve been tracking across several sessions.

But reaching a support zone, or even temporarily breaking beneath it, doesn’t automatically tell us what happens next, which is why today’s close deserves particular attention.

If buyers recover 1000 before the session ends, the intraday breakdown beneath that psychological barrier would be invalidated. Such a development could encourage a corrective rebound, potentially bringing the previously broken lower boundary of the red declining channel back into focus.

That wouldn’t automatically reverse the broader bearish trend, but it would demonstrate that buyers are finally putting up a meaningful defense.

What if they fail?

A daily close below 1000 would confirm the breakdown beneath that barrier and strengthen the case for another decline. In that case, the next key potential destination would be the green declining support line around 970, based on the March and June lows. That’s a considerably more uncomfortable prospect for buyers.

Of course, the daily indicators remain deeply oversold, with RSI around 21 and Stochastic near 10. A defensive reaction around current prices wouldn’t be surprising, but we’ve already seen several rebound attempts fail before buyers could recover meaningful resistance.

For now, the bears have delivered another important stage of our earlier roadmap. The next question is whether palladium can defend 1000 before the closing bell or whether the market is preparing another move south.

Daily Takeaways: Palladium has reached and moved below the previously identified 997-1010 support cluster, with today’s low at 990.75. A recovery above 1000 before the daily close would invalidate the intraday breakdown and favor a potential rebound toward the broken red channel boundary. A daily close below 1000 would strengthen the bearish continuation scenario and bring the green support line around 970 into focus.

What About the Other Four Markets? Palladium and platinum selling pressure isn’t the only key development today.

The U.S. dollar is struggling to overcome a familiar resistance level, leaving buyers with another difficult decision. Gold is testing whether a recently recovered technical boundary can hold up amid renewed selling pressure. Silver has established another local low and is approaching a downside objective we’ve been tracking in recent analyses. Copper has delivered an intriguing twist: after successfully overcoming several resistance barriers, buyers have run into trouble near an important Fibonacci level.

Could these setbacks turn into another wave of bearish continuation? Or will today’s close give buyers a reason to challenge that view?

In today’s complete Anna’s Trading Lab Premium, we examine these four additional markets, connect their latest developments with our previous scenarios, and identify the critical levels that could shape the next move.

Final Thought – The Level Matters. The Reaction Matters More. Watching a market finally reach a support area we’ve been discussing for days is particularly revealing. The arrival matters, but the real test begins when buyers and sellers decide what happens next.

Will buyers defend the level? Will sellers confirm the breakdown? And will the resulting price action give us enough evidence to reconsider our expectations?

Those questions turn a technical projection into a useful market roadmap.

Why?

Because reaching an important price level is only part of the story…. what happens there can tell us much more about where the market may be heading.

Anna

Key Takeaways Bristol Myers' Q3 revenues rose 7% to $13.07 billion, beating estimates, while adjusted EPS fell 17%.Growth Portfolio sales climbed 12% to $7.66 billion, while Eliquis revenue surged 25% to $4.69 billion.BMY raised 2026 revenue guidance but cut EPS outlook as higher IPRD charges weighed on profits.
Bristol-Myers Squibb Company (BMY - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.21. However, earnings declined 17% from $1.63 in the year-ago quarter due to higher acquired in-process research and development (IPRD) charges and lower gross margins.

Total revenues of $13.07 billion surpassed the Zacks Consensus Estimate of $12.56 billion. Revenues increased 7% year over year, driven by strong Growth Portfolio performance and higher Eliquis sales.

The stock is trading up in response to the better-than-expected quarterly results.

BMY’s shares have gained 17.3% year to date compared with the industry's growth of 8.4%.

Image Source: Zacks Investment Research

BMY's Growth Portfolio Maintains Momentum in Q3Revenues from BMY's Growth Portfolio increased 12% year over year to $7.66 billion, driven by Opdivo Qvantig, Breyanzi, Reblozyl, Camzyos and Opdualag. Growth was also 12% when adjusted for foreign exchange impacts.

Sales of the immuno-oncology drug Opdivo declined 6% year over year to $2.37 billion. However, sales beat the Zacks Consensus Estimate of $2.36 billion but missed our model estimate of $2.40 billion.

Opdivo Qvantig generated revenues of $334 million compared with $67 million in the year-ago quarter.

Sales of rheumatoid arthritis drug Orencia increased 2% to $983 million. Melanoma drug Yervoy contributed $793 million, up 7% year over year, beating the Zacks Consensus Estimate of $756 million and our model estimate of $767 million.

Reblozyl sales rose 22% to $750 million, beating the Zacks Consensus Estimate of $739 million and our model estimate of $734 million.

Breyanzi sales surged 46% to $526 million, exceeding the Zacks Consensus Estimate of $493 million and our model estimate of $489 million.

Opdualag sales increased 23% to $367 million, beating the Zacks Consensus Estimate of $359 million and our model estimate of $363 million.

Camzyos sales jumped 42% to $420 million but missed the Zacks Consensus Estimate of $444 million and our model estimate of $447 million.

Zeposia sales increased 5% to $168 million. Sotyktu generated $100 million, while Krazati and Cobenfy contributed $58 million and $57 million, respectively.

BMY’s Legacy Portfolio Records Modest GrowthRevenues from the Legacy Portfolio increased 1% year over year to $5.42 billion. Strong Eliquis sales offset continued generic competition affecting older drugs, including Revlimid, Pomalyst and Sprycel.

Eliquis sales rose 25% to $4.69 billion, beating the Zacks Consensus Estimate of $4.59 billion and our model estimate of $4.44 billion. U.S. sales increased 39%, while international revenues declined 7%.

Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.

Multiple myeloma drug Revlimid revenues plunged 47% to $303 million but exceeded the Zacks Consensus Estimate of $221 million and our model estimate of $196.8 million.

Pomalyst/Imnovid sales declined 81% to $130 million. Sprycel revenues fell 38% to $73 million, while Abraxane sales decreased 13% to $65 million.

BMY's Margins Contract Despite Lower Operating CostsAdjusted gross margin declined to 68.4% from 72.9% in the year-ago quarter, primarily due to an unfavorable product mix and a one-time contract termination charge.

Adjusted research and development expenses decreased 3% to $2.36 billion. Adjusted selling, general and administrative expenses declined 5% to $1.70 billion.

However, acquired in-process research and development charges increased 146% to $1.56 billion, reflecting licensing agreements and ongoing collaborations. These charges, along with licensing income, had a net negative EPS impact of 58 cents.

BMY Raises Revenue Outlook, Cuts EPS ViewBristol Myers raised its 2026 revenue guidance to $49.75-$50.25 billion from the previous projection of $49-$50 billion, reflecting continued momentum across its portfolio.

However, management lowered its adjusted EPS guidance to $6.35-$6.55 from $6.75-$7.00. The revised outlook includes a negative 60-cent impact from acquired IPRD charges and licensing income, compared with the previously assumed 2-cent impact.

The company maintained its adjusted gross margin forecast of 69-70% and operating expense guidance of approximately $16.5 billion. It also reaffirmed its projection for worldwide Eliquis revenue growth of 20-25%.

BMY's Pipeline Advances With Key Regulatory MilestonesIn August, the FDA approved Zenbexus in combination with daratumumab and dexamethasone for the treatment of adult patients with multiple myeloma who have received at least one prior line of therapy, including a proteasome inhibitor and an immunomodulatory agent.

The FDA also expanded Camzyos' label in September for the treatment of symptomatic obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms in adults and pediatric patients weighing 30 kg (66 lbs) or more.

Additionally, positive phase III results were reported for iza-bren in breast and lung cancer, RYZ101 in neuroendocrine tumors and admilparant in idiopathic pulmonary fibrosis.

BMY and partner BioNTech SE (BNTX - Free Report) also announced positive data from the phase II ROSETTA Lung-107 study evaluating pumitamig in combination with docetaxel in patients with metastatic NSCLC whose disease progressed on or after first-line immunotherapy plus chemotherapy.

Data showed encouraging anti-tumor activity, with responses observed in both squamous and non-squamous NSCLC and across PD-L1 expression levels, together with a manageable safety profile consistent with prior global datasets for pumitamig.

Our Take on Bristol Myers' Q3 PerformanceBMY delivered better-than-expected third-quarter earnings and revenues, supported by robust Growth Portfolio performance and strong Eliquis demand. Continued momentum across Qvantig, Breyanzi, Reblozyl and Opdualag helped offset generic erosion in older products.

The higher revenue outlook reflects sustained commercial strength. However, declining adjusted margins and substantial acquired IPRD charges weighed on profitability and prompted a reduction in earnings guidance.

Recent regulatory approvals and positive late-stage pipeline results strengthen the company's portfolio of potential growth drivers, even as generic competition remains a significant headwind.

BMY’s Zacks Rank

Fiverr International (FVRR - Free Report) reported $90.9 million in revenue for the quarter ended September 2026, representing a year-over-year decline of 15.8%. EPS of $0.43 for the same period compares to $0.77 a year ago.

The reported revenue represents a surprise of +7.6% over the Zacks Consensus Estimate of $84.48 million. With the consensus EPS estimate being $0.36, the EPS surprise was +19.44%.

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

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

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

Annual Active Buyers: 2.45 million versus the two-analyst average estimate of 2.39 million.Marketplace Take Rate: 28.2% versus 27.9% estimated by two analysts on average.Revenue- Marketplace: $55.41 million versus $53.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -24.7% change.Revenue- Services: $35.49 million compared to the $30.54 million average estimate based on two analysts. The reported number represents a change of +3.4% year over year.View all Key Company Metrics for Fiverr here>>>

Shares of Fiverr have returned -6.3% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Shares of Micron, SK Hynix and SanDisk fell on Thursday as Alphabet’s weaker-than-expected results weighed on technology stocks, while a sharp decline in Samsung Electronics shares added pressure to the memory chip sector.

Micron MU was down about 3.5%, SK Hynix slipped around 1%, and SanDisk fell approximately 2.71%, reversing some of the optimism that had lifted memory stocks a day earlier following SK Hynix’s upbeat earnings and outlook.

Alphabet shares dropped about 12% after the Google parent reported third-quarter revenue and earnings below expectations, renewing concerns about the rising cost of artificial intelligence infrastructure and the sustainability of spending across the sector.

Although Google Cloud revenue more than doubled, investors were concerned about slowing growth in its core search advertising business, which expanded 12%, and negative free cash flow of more than $9 billion.

That compared with analysts’ expectations for a deficit of $2.70 billion.

Investors were also assessing fresh inflation data following the Federal Reserve’s decision to leave interest rates unchanged, adding to uncertainty across technology and semiconductor stocks.

The Philadelphia Semiconductor Index slipped by over 0.6%.

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Micron is sliding as Alphabet and Samsung worries hit AI chip demand expectations.

51% of retail investor accounts lose money when trading CFDs with this provider.

Samsung Electronics shares plunged more than 4% in Seoul on Thursday despite reporting a record quarterly operating profit of $80 billion, as investors focused on revenue and semiconductor earnings that fell short of expectations.

The company reported revenue of 195.3 trillion won ($124 billion), slightly below analysts’ estimates of 195.79 trillion won.

Semiconductor operating profit came in at 106.5 trillion won, compared with Bloomberg’s estimate of 108.45 trillion won.

Cash flow from operating activities also declined to 98.6 trillion won in the third quarter from 105.1 trillion won in the previous quarter.

The decline came amid concerns over the scale of investment in AI infrastructure and the risks facing the memory chip industry if demand weakens.

South Korea’s central bank recently warned that the country’s dependence on semiconductor exports could leave its economy more vulnerable to a downturn in AI demand.

Investors had also been looking for Samsung to benefit from strong results reported by rival SK Hynix.

“SK Hynix did quite a lot more than expected yesterday. It went beyond market expectations, but Samsung Electronics hasn’t really changed its earlier guidance,” said Lee Min-hee, an analyst at BNK Investment & Securities.

The pullback followed a rally in memory stocks on Wednesday after SK Hynix reported better-than-expected earnings and outlined plans to return about $75 billion to shareholders this year.

The South Korean chipmaker also projected that the shortage of memory components would persist through 2030, reinforcing expectations that demand could remain strong for an extended period.

Rosenblatt Securities analyst Kevin Cassidy told MarketWatch that SK Hynix’s report showed memory demand increasing as part of an “upcycle”, providing a major boost to profits.

“The market's concern in memory has been the cyclical nature of the memory market,” Cassidy said.

However, the current period of strength “has lasted longer than any other upcycle in history,” he added.

The outlook had helped fuel optimism that rising demand for memory components used in AI infrastructure could support pricing and earnings across the sector.

SanDisk shares also came under pressure ahead of the company’s fiscal first-quarter 2027 earnings report, scheduled for release after the market close on Thursday.

The stock had surged in the previous session following SK Hynix’s record quarterly results, which confirmed that NAND prices rose at a mid-20% rate quarter-on-quarter.

The gains gave way to caution ahead of SanDisk’s own results.

Options markets are pricing in a potential share-price move of nearly 10% in either direction following the earnings announcement, reflecting elevated expectations and uncertainty about the company’s outlook.

The pullback was compounded by Cantor Fitzgerald’s decision to lower its price target on SanDisk, citing concerns about the pace of revenue growth while maintaining an Overweight rating.

Analysts broadly remain bullish, with consensus estimates calling for earnings of about $46 per share on revenue near $10.7 billion, representing a substantial year-on-year increase.

However, expectations are high after SanDisk beat estimates in each of its previous four quarters.

Any disappointment in guidance for NAND pricing or second-quarter revenue could trigger a sharp market reaction.

With SanDisk due to report after the close and options implying a move of nearly 10%, the stock is likely to be a busy one on trading apps tonight.

Micron (MU -4.45%), one of the world's largest producers of DRAM and NAND memory chips, is usually considered a cyclical stock. Its sales and profits soar when memory chip supplies are tight, but decline when those shortages become gluts.

Investors often try to buy Micron's stock at the top of that cycle and sell it at the bottom, but those cycles are notoriously difficult to predict. But it's also tough to be a long-term investor.

Image source: Getty Images.

Over the past decade, Micron's stock has rallied 5,410%. But along the way, it suffered peak-to-trough declines of 73% from 2014 to 2016, 55% in 2018, 43% in 2020, 51% in 2021, and 36% in 2024. It took a lot of patience to hold the stock through those downturns.

However, you could have smoothed out those returns with dollar-cost averaging by nibbling on the stock each month rather than investing a lump sum. If you had invested $100 per month in Micron ten years ago and reinvested your dividends, your $12,000 principal would be worth more than $132,000 today. That's an impressive gain, but a bolder lump sum investment of $12,000 in the stock ten years ago would have grown to more than $660,000.

Investors might be reluctant to buy Micron's stock after those multibagger gains, but it's currently firing on all cylinders as the AI market expands. Let's see what could happen if you invest $100 in Micron per month through the end of 2030.

MU Micron Technology$939.50-$43.73 (-4.45%)

NASDAQ · As of 1:24 PM ET 10/29/26

What will happen to Micron over the next few years?
In the past, Micron's growth was tightly tethered to cyclical markets like PCs, smartphones, and cars. Micron and its peers produced more chips to support those markets as they expanded, but they often ended up with excess inventory when those growth cycles ended.

But over the past two years, the AI market's growth created a massive demand for high-bandwidth memory (HBM) chips, which are paired with Nvidia's (NVDA -0.93%) data center GPUs in AI clusters, and NAND-powered solid-state drives (SSDs) for storing that data.

Manufacturing HBM chips requires three times the wafer capacity as a standard DRAM chip, so Micron curbed the production of its DRAM chips to produce more HBM chips. Its closest competitors -- Samsung and SK Hynix (SKHY -1.85%) -- implemented that same strategy.

That's why memory chip supplies will remain tight, and prices will remain high, as long as the AI market keeps expanding. The bulls believe this "supercycle" -- which is directly tethered to Nvidia and other top AI chipmakers -- will last much longer than its previous growth cycles.

From fiscal 2026 (which ended in September) to fiscal 2029, analysts expect Micron's revenue and EPS to grow at CAGRs of 34% and 42%, respectively. Those are incredible growth rates for a stock that trades at just six times this year's earnings, but it's cheap because analysts expect its top- and bottom-line growth to decelerate in fiscal 2027 and fiscal 2028.

What will a $100 monthly investment in Micron turn into by 2030?
If you start investing $100 per month into Micron through the end of 2030, you'd have invested $5,000 in the stock over 50 months. It's difficult to predict where Micron and its peers will be by 2030, given the cyclical nature of the market. Still, analysts usually use bear and bull case scenarios for the semiconductor market to see where a chip stock might be headed.

In a bear-case scenario, rising interest rates will force companies to throttle their AI spending, or China will ramp up production of domestic memory chips (to counter export restrictions) and boost global supply. If the shortage turns into a glut and the broader market contracts at a negative 5% CAGR through 2030, your $5,000 investment might shrink to about $4,500.

In a bull-case scenario, the AI market could keep growing and choking the global supply of HBM chips. If that happens and the chip market grows at a 20% CAGR through 2030, the value of your stake could easily exceed $7,500. That wouldn't be as impressive as Micron's 1,660% gain from the past four years -- but it could still outperform many of its industry peers.

If I had to pick one stock to invest $5,000 in right now, I would look for the cheapest stock with the most growth upside.

That stock would be Micron Technology (MU -4.45%). And Micron stock has plummeted about 16% over the past month, making an already great buy even better.

At its current discount, Micron is a stock to buy, lose the password, and let it cook for the next 10 years.

Image source: Getty Images.

Micron's growth
There are two simple reasons to buy Micron stock and hold it for the long term: its growth and its value.

Micron's growth has been staggering, as one of the three predominant providers of high bandwidth memory chips, which are essential for artificial intelligence computing. With so much infrastructure under construction to meet the demand for AI computing, memory for accessing information is essential. The demand for these chips is so high that it has created a supercycle, where supply can't keep up.

Micron has long been sold out of its high bandwidth memory chips for 2026 and has contracted commitments for 75% of its shipments already for fiscal 2027.

MU Micron Technology$939.50-$43.73 (-4.45%)

NASDAQ · As of 1:24 PM ET 10/29/26

"In terms of 2027 and 2028 in our commentary, we are seeing stronger demand drivers than we've seen before," Micron President and COO Manish Bhatia said on the fourth-quarter earnings call. He added that 2027 is "shaping up with stronger demand than maybe we had seen before," and the strengthening demand allows Micron to "shift our conversations on allocation with our customers out to 2028."

Micron is also signing more long-term strategic customer agreements (SCAs) to ensure revenue keeps pouring in over the next five years and beyond. The company added 10 more SCAs in Q4, and that was after 16 were signed in Q3. Those 26 agreements and counting will account for 35% of revenue by 2030.

These SCAs will allow Micron to continue generating strong earnings even after the supercycle ends in 2029 or beyond. They will also be beneficial as new competitors emerge, particularly in China, that could potentially erode its market share there over time.

Micron's value
News of the threat from Chinese memory chip companies was one of the reasons Micron stock has dropped over the past month.

It was likely that, along with some profit-taking, Micron stock had been on a ridiculous run. Even with the recent sell-off, it is still up 216% year-to-date and 312% over the past 12 months. Over the past three years, Micron stock has a staggering 142% average annualized return.

But it is not overvalued like so many other AI stocks. In fact, it is cheap with a price-to-earnings (P/E) ratio of 11, a forward P/E of just 5, and a five-year P/E-to-growth (PEG) ratio of just 0.17. These figures show the massive earnings power still ahead for Micron.

It just looks like a huge opportunity to buy the dip on Micron right now.

Key Takeaways ISRG's third-quarter 2026 revenues rose 22% to just over $3 billion, outpacing 15% procedure growth.Da Vinci placements jumped 28% to 546 systems, while recurring revenues accounted for 84% of total sales.Planned pricing changes could cut I&A revenue per procedure by 3-5%, offset by innovation and product mix.
Intuitive Surgical’s (ISRG - Free Report) third-quarter 2026 revenues increased 22% year over year to just over $3 billion, outpacing 15% growth in total da Vinci and Ion procedures. Sales growth substantially exceeding procedure growth underscores the company’s ability to capitalize on its expanding installed base, increased system placements and growing adoption of newer technologies. Recurring revenues accounted for 84% of total sales, highlighting the importance of instruments and accessories (I&A), system servicing and the broader installed-base ecosystem to revenue generation.

System placements were a major sales driver during the third quarter. Da Vinci placements increased 28% to 546 systems. Net da Vinci placements rose 40%, expanding the installed base significantly. Systems revenues grew 30% to $769 million, and service revenues increased 22% to $482 million.

Meanwhile, I&A revenues advanced 18% to $1.8 billion. The richer mix of da Vinci 5, single-port (SP) systems and Ion, along with higher integration and upgrade volumes, supported revenue growth beyond underlying procedure expansion. Higher SP utilization and da Vinci 5-specific instruments also lifted I&A revenue per procedure to approximately $1,860 from $1,800 a year earlier.

However, sustaining this gap may become more challenging as pricing initiatives take effect. Intuitive Surgical expects planned instrument pricing changes and China’s policy-driven price reductions to lower da Vinci I&A revenue per procedure by approximately 3% to 5% on a mix-constant basis, once fully implemented. The impact will build progressively through 2027.

Higher SP penetration, da Vinci 5 adoption, Force Feedback instruments and additional technology could partially offset the pressure. Management also expects cost-reduction programs to help absorb the modest gross-margin impact. Revenue growth may continue to outpace procedure growth, supported by expanding system placements, a favorable product mix and innovation-driven monetization despite pricing pressures.

Peer UpdatesBoston Scientific’s (BSX - Free Report) third-quarter 2026 organic sales grew 1.5% year over year to $5.14 billion, with growth constrained by a cybersecurity incident that reduced sales growth by approximately 300 basis points, as per management estimates. Growth was supported by Neuromodulation (up 13%), including strong demand for Nalu peripheral nerve stimulation technology.

Interventional Cardiology sales increased 19%, driven by imaging and drug-eluting technologies. AGENT drug-coated balloons also continued gaining traction. However, EP sales fell 5% amid competition, while WATCHMAN declined 6%. Although sales are likely to continue its growth at current pace, cyber-related order normalization, EP competition and China pricing pressure could weigh on the metric.

GE HealthCare Technologies’ (GEHC - Free Report) third-quarter 2026 revenues increased 6.2% organically to approximately $5.5 billion, with growth across all segments. Product revenues rose 6.7%, while service revenues grew 8.1%, demonstrating strength in both equipment and services. Advanced Imaging Solutions benefited from CT, cardiovascular interventional solutions and surgical innovations, while Pharmaceutical Diagnostics grew 13.8% on demand for contrast media and radiopharmaceuticals.

New products, including AI-enabled imaging platforms and Flyrcado, supported demand, along with contributions from strategic pricing and premium product positioning. Strong demand across all segments is expected to support sales growth going forward. However, rising memory-chip prices, higher oil costs and pricing pressures could weigh on growth and profitability.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 21.6% so far this year compared with a 0.9% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.53, above the industry average. But, it is significantly lower than its five-year median of 66.94. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 25.9% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

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

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

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Occidental Petroleum (OXY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

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

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

Set to Beat the Market? In order to see if OXY is a promising momentum pick, let's examine some Momentum Style elements to see if this oil and gas exploration and production company holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For OXY, shares are up 2.87% over the past week while the Zacks Oil and Gas - Integrated - United States industry is up 0.48% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.63% compares favorably with the industry's 3.21% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Occidental Petroleum have risen 16.82%, and are up 54.9% in the last year. On the other hand, the S&P 500 has only moved 4.52% and 13.57%, respectively.

Investors should also take note of OXY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now OXY is averaging 8,636,162 shares for the last 20 days..

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

Over the past two months, 6 earnings estimates moved higher compared to 1 lower for the full year. These revisions helped boost OXY's consensus estimate, increasing from $6.09 to $6.81 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that OXY is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Occidental Petroleum on your short list.

Key Takeaways Lilly's Q3 adjusted EPS of $7.48 beat estimates by 39%, while revenues climbed 39% to $24.40 billion.Mounjaro sales surged 65%, and Zepbound grew 49%, while newer drugs added to quarterly revenue growth.Lilly raised 2026 revenue guidance to $91-$92 billion, sending shares up around 4% in pre-market.
Eli Lilly and Company (LLY - Free Report) reported third-quarter 2026 adjusted earnings per share (“EPS”) of $7.48, which beat the Zacks Consensus Estimate of $5.38 per share by 39.0%. Earnings rose 7% year over year.

Revenues of $24.40 billion rose 39% year over year, driven by robust volume growth of Lilly's popular GLP-1 drugs, Mounjaro and Zepbound. Newer products also contributed to growth. One-time benefits, including $410 million of Jardiance milestones and favorable U.S. rebate/discount estimate adjustments, also benefited sales in the third quarter. Total revenues beat the Zacks Consensus Estimate of $22.11 billion by 10.4%.

While U.S. revenues rose 34% to $15.1 billion, ex-U.S. revenues increased 47% to $9.3 billion.

Volumes rose 53%, while net realized prices declined 15%.

Mounjaro, Zepbound and Foundayo Boost Lilly's Q3 SalesMounjaro recorded sales of $10.72 billion during the quarter, up 65% year over year. The reported sales figure beat the Zacks Consensus Estimate of $10.11 billion.

U.S. Mounjaro revenues increased 41% to $5.0 billion on strong demand. International revenues jumped 93% to $5.7 billion, driven by volume growth, partly offset by lower realized prices following the drug's inclusion on China's National Reimbursement Drug List.

Zepbound recorded third-quarter sales of $5.35 billion, up 49% year over year. The reported figure beat the Zacks Consensus Estimate of $5.10 billion. The obesity drug's performance was driven by strong demand in the United States, partially offset by lower realized prices,

Lilly’s newly launched oral GLP-1 drug Foundayo generated $184 million in third-quarter revenues, compared with $98 million in the previous quarter.

Rival Novo Nordisk (NVO - Free Report) had gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. Novo Nordisk is scheduled to announce third-quarter results on Nov. 4.

Lilly's Newer Drugs Deliver Robust Q3 GrowthAmong newer drugs, Jaypirca recorded $228 million in sales, up 59% year over year. Omvoh generated revenues of $114 million, up 76%, while Ebglyss sales rose 59% to $202 million.

Sales of Alzheimer's drug Kisunla increased 175% to $193 million. New breast cancer drug Inluriyo recorded sales of $73 million, compared with $75 million in the previous quarter.

LLY's Key Drugs Deliver Mixed ResultsTrulicity generated revenues of $904 million, down 14% year over year. Sales beat the Zacks Consensus Estimate of $816 million.

Jardiance sales surged 65% to $1.58 billion and significantly beat the Zacks Consensus Estimate of $866 million. International revenues included $410 million in sales-based milestones associated with Lilly's collaboration with Boehringer Ingelheim.

Taltz brought in sales of $856 million, down 5% year over year. The figure missed the Zacks Consensus Estimate of $918 million.

Verzenio generated revenues of $1.51 billion, up 3% year over year, but missed the Zacks Consensus Estimate of $1.54 billion.

Emgality generated revenues of $186 million, up 6%, beating the consensus estimate of $175 million. Olumiant revenues declined 2% to $263 million, missing the consensus estimate of $274 million.

Lilly Raises Its 2026 Revenue OutlookLilly raised its full-year 2026 revenue guidance to $91 billion-$92 billion from the previous projection of $85 billion-$87 billion, reflecting strong underlying business performance.

The company now expects adjusted earnings between $35.00 and $36.00 per share, compared with its prior expectation of $35.50-$36.50.

Underlying business growth added $4.07 to the midpoint of its earnings expectations. However, this benefit was more than offset by $4.57 per share of acquired in-process research and development charges associated with the multiple business development deals and partnerships signed in the third quarter, including the acquisition of AtaiBeckley.

Our Take on LLY’s Q3 ResultsLilly delivered another impressive quarter, with earnings and revenues comfortably exceeding estimates. Mounjaro and Zepbound remained the primary growth engines, with both drugs outperforming consensus expectations.

Newer medicines across oncology, immunology and neuroscience also contributed to growth. Lilly’s key new products (Ebglyss, Foundayo, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound) contributed $17.1 billion to revenues in the third quarter. Within key products, Lilly’s Immunology, Oncology and Neuroscience medicines collectively grew 100% year over year in the third quarter.

Lilly, once again, raised its sales expectations for the year.

In response to the better-than-expected quarterly earnings and the increased revenue outlook for 2026, Lilly’s shares rose around 4% in pre-market trading.

Lilly’s stock has risen 20.8% so far this year compared with an increase of 18.1% for the industry.

Image Source: Zacks Investment Research

Lilly’s blockbuster GLP-1 drugs, Mounjaro and Zepbound, remain its key growth drivers, benefiting from surging global demand and accounting for around 65% of total revenues. The company is also diversifying its revenue base through newer drugs like Omvoh, Jaypirca, Ebglyss, Kisunla and Inluriyo, alongside strategic acquisitions across multiple therapeutic areas, although sales of some established products are expected to remain sluggish.

Encouraging uptake of its newly launched oral GLP-1 drug, Foundayo, could further strengthen Lilly’s position in the obesity market. Its robust next-generation GLP-1 pipeline, particularly the late-stage candidate retatrutide, offers significant long-term growth potential and could further reinforce its leadership in the obesity and diabetes markets.

LLY’s Zacks Rank & A Stock to ConsiderEli Lilly currently has a Zacks Rank #3 (Hold).  

A better-ranked biotech is Viking Therapeutics (VKTX - Free Report) , which has a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Viking’s shares have declined 27.9% so far this year. The Zacks Consensus Estimate for 2026 loss has narrowed from $4.47 per share to $4.46 per share over the past 30 days, while that for 2027 loss is stable at $4.08 per share over the same time frame.

Eli Lilly stock hit a record high Thursday thanks to a stronger-than-expected earnings report fueled by sales of weight loss drugs Mounjuaro and Zepbound.

The company’s stock jumped 6% to hit a whopping $1.3 trillion valuation after it raised its full-year earnings forecast.

Sales of both Mounjaro and Zepbound beat expections by over 5%, solidifying Eli Lilly’s lead in the booming obesity-drug market.

Sales of both Mounjaro and Zepbound beat expections by over 5%, solidifying Eli Lilly’s lead in the booming obesity-drug market. Getty Images Over half a million patients are using the injections through Medicare, Lilly said. At a reduced, $50-a-month-price tag for them, investors were worried about potential profit losses, but Lilly’s annual forecasted revenue still went up 1% to $92 billion. 

The report underscored just how big of a lead the company has in the multibillion-dollar GLP-1 market. Lilly competitor Novo Nordisk, which makes WeGovy, is valued at about $171 billion, according to Reuters.

Lilly’s recent acquisitions of psychedelic drugmaker AtaiBeckley and clinical biotech vaccine company Cuervo put dents in the profit outlook, according to Reuters. The company reduced forecasted profit shares by 50 cents.

Lilly’s recent acquisitions of psychedelic drugmaker AtaiBeckley and clinical biotech vaccine company Cuervo put dents in the profit outlook, according to Reuters. USA TODAY Network via Reuters Connect But the annual forecast bump was enough to convince investors the company is on the right track, said Greg Halter, director of research at Carnegie Investment Counsel.

“They’re ​spending money so that they can make money down the road,” said Halter, who owns over 16,000 Eli Lilly shares.

Investors are closely tracking the company’s new oral weight-loss drug Foundayo to see if it can compete with Novo’s oral Wegovy, which is leading in prescriptions. Oral Wegovy saw users shed about 14% of body weight over 64 weeks, while Foundayo ​patients saw a roughly 11% drop in 72 weeks, according to separate studies. 

Lilly’s pill saw 15% fewer sales than expected last quarter.

But voiced confidence it will do better in the across the Pond – Foundayo was launched in the UK earlier this year and is set for other European countries by the end of the year.

Investors with an interest in Aerospace - Defense stocks have likely encountered both Embraer (EMBJ) and RTX (RTX). But which of these two stocks presents investors with the better value opportunity right now?

ServiceNow (NOW -26.36%)grew third-quarter subscription revenue 21% to about $4 billion, then guided for slower growth next quarter in its 12-month contracted backlog, known as cRPO. Shares fell about 23% in regular trading Thursday morning. Growth is still solid, but the leading indicator is cooling, and deal-related costs are cutting GAAP earnings nearly in half.

Key NumbersSubscription revenue: about $3.99 billion, up 21% year over yearcRPO growth: 21% excluding currency swings, guided to 18.5% for Q4GAAP diluted EPS: $0.27, down from $0.48Free cash flow: $822 million, up from $592 million$110.56-$39.57 (-26.36%)

NYSE · As of 1:20 PM ET 10/29/26

What It MeanscRPO counts contracted revenue due within 12 months, so it leads reported revenue. ServiceNow's fourth-quarter backlog guide trails its own 21.5% currency-neutral subscription revenue guide. When backlog grows slower than revenue, revenue growth usually follows it down. The raised target for AI annual contract value hasn't yet shown up as faster backlog growth.

Adjusted EPS still rose to $1.00, since it leaves out stock-based pay, severance, and acquisition amortization (a non-cash charge on acquired assets), all of which grew. It can't exclude higher interest costs on new debt and lower interest income from cash spent on deals. Even adjusted subscription gross margin slipped, which may reflect costlier acquired revenue or heavier computing needs. The release gives no organic growth figure (growth excluding acquisitions), so readers can't see how much the deals supplied.

Operating cash flow rose only about 3%, and most of the free cash flow gain came from cutting capital spending sharply. That supports the raised full-year free cash flow margin target, but a spending cut doesn't speed up growth.

What to Watch NextWatch whether fourth-quarter cRPO growth holds at the guided rate. Also watch whether ServiceNow starts disclosing organic growth, which would show the core business without the deals.

Sharice Wells has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.

Key Takeaways Reliance's Q3 adjusted EPS jumped 120.3% to $8.02, beating estimates by 18.6%, while sales surged 42.8%.RS reported record shipments of 1.87 million tons, with carbon steel prices up 29.5% year over year.Reliance projects Q4 adjusted EPS of $7.4-$7.6, with border wall contributions of about 70 cents per share.
Reliance, Inc. (RS - Free Report) reported third-quarter 2026 adjusted earnings of $8.02 per share, up 120.3% year over year. The figure surpassed the Zacks Consensus Estimate of $6.76 by 18.6%, aided by stronger metal pricing, higher shipments and contributions from the U.S. border wall project.

Net sales climbed 42.8% year over year to $5.21 billion, beating the consensus estimate of $4,679.8 million by 11.4%. Quarterly tons sold reached a record 1.87 million, up 15.6% year over year, while the average selling price per ton increased 8.2% sequentially to $2,815.

The average selling price per ton increased more than management's forecast of flat to 2% growth. Stronger-than-anticipated carbon steel pricing supported the rise, despite a 1.7% product mix-related drag from the border wall project. Carbon steel shipments increased 18.4% year over year, while carbon steel selling prices rose 29.5%.

Reliance's End MarketsDemand in non-residential construction, including infrastructure, improved year over year, supported by strong activity in data centers, energy infrastructure and public infrastructure projects. The company expects demand to remain solid in the fourth quarter, subject to normal seasonality and potential supply constraints.

Broader manufacturing demand strengthened from the prior-year quarter, driven by healthy activity in industrial machinery, shipbuilding, military and construction machinery markets. Reliance anticipates demand to remain healthy in the fourth quarter, despite the customary seasonal slowdown.

Aerospace demand improved year over year. Reliance expects commercial aerospace demand to improve modestly in the fourth quarter, supported by gradual production build-rate increases and growing backlogs. Demand in defense and space-related markets is expected to remain robust.

Automotive toll-processing demand also improved from the year-ago quarter. The company expects demand to remain at healthy levels in the fourth quarter, supported by its flexible toll-processing operations, which can adapt to changing automotive market requirements.

Semiconductor-related demand increased meaningfully year over year, aided by growing data center activity. Reliance expects demand for its semiconductor products to improve further in the fourth quarter.

RS' Cash Flow and Capital ReturnsReliance ended September with $246 million in cash and cash equivalents and total debt of approximately $1.65 billion. Operating cash flow was $212 million, down from $261.8 million a year earlier, amid increased working-capital investment driven by shipment volumes and higher metals prices. Free cash flow totaled $133 million.

The company repurchased $44.7 million of shares during the quarter and paid $63.8 million in dividends. Its board increased the share repurchase authorization to $2.5 billion and declared a quarterly dividend of $1.25 per share, payable Dec. 4, 2026.

Reliance's Q4 Outlook Calls for Further GrowthReliance expects fourth-quarter 2026 adjusted earnings of $7.4-$7.6 per share, including LIFO expense of $112.5 million, or $1.64 per share. The forecast incorporates approximately 70 cents per share from the border wall project.

Including the project, fourth-quarter tons sold are projected to rise 13.5-15.5% year over year. Excluding it, volumes are expected to decline 5.5-7.5% sequentially on seasonality. The company expects average selling prices to increase 1-3% sequentially, while trade uncertainty, geopolitical conflicts and supply constraints remain risks.

RS’ Stock Price PerformanceRS’ shares have gained 54.9% in the past year compared with the industry’s growth of 15%.

Image Source: Zacks Investment Research

RS’ Zacks Rank & Key PicksRS currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are Methanex Corporation (MEOH - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .

MEOH currently sports a Zacks Rank #1, while ASM and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MEOH’s 2026 earnings is pegged at $9.68 per share, indicating a 376.85% year-over-year surge. MEOHshares have gained 87.6% over the past year.

The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.

The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.

Data center spending could hit $3.2 trillion in the next three years, according to an August 2026 report by Morgan Stanley. Amazon CEO Andy Jassy said Amazon Web Services -- the leading cloud services provider -- won't have enough capacity to meet demand this year, and he expects the shortage to continue in 2027.

That shortage benefits the companies that supply chips and rent out compute capacity. Broadcom (AVGO -1.94%), Iren (IREN -7.54%), and Taiwan Semiconductor Manufacturing (TSM -1.85%) all trade at attractive valuations relative to their growth potential and can outperform the market through 2030.

Image source: Getty Images.

1. Broadcom: AI revenue to double next year Broadcom designs custom AI accelerators called XPUs and also sells networking equipment that speeds up data communication between chips in a data center. In its fiscal third quarter, total revenue rose 86% year over year to nearly $30 billion, while AI semiconductor revenue jumped 221% to $16.7 billion.

Anthropic is on track to become Broadcom's largest XPU customer in 2027, and OpenAI's Jalapeño chip and Alphabet's Google's TPU v8i are both already shipping. Company guidance calls for AI revenue to reach $58 billion in fiscal 2026, $115 billion in fiscal 2027, and $230 billion in fiscal 2028.

AVGO Broadcom$344.97-$6.84 (-1.94%)

NASDAQ · As of 1:18 PM ET 10/29/26

The risk is that Broadcom's customers may need help financing chip purchases, including Anthropic and OpenAI, through a platform with Apollo and Blackstone. If a customer were to pull back on its orders or be unable to raise the money, AI revenue could miss guidance.

The stock trades at a forward price-to-earnings (P/E) ratio of about 28, as of Oct. 26. Analysts expect $11.66 in earnings per share this fiscal year, rising to about $30 in fiscal 2028, consistent with management's target. That works out to a forward P/E of about 11 -- a low valuation that can set up market-beating gains if Broadcom can meet its guidance.

2. Iren: A full-stack data center builder and operator Iren is phasing out its Bitcoin mining operations to rent out capacity to hyperscalers and AI companies. Its advantage is that it owns land, power, data centers, graphics processing units (GPUs), and cloud software. It has everything it needs to become a hyperscaler, offering cloud services and cutting-edge compute for AI workloads.

That matters because new data centers take years to bring online, even as AI usage skyrockets. On its August earnings call, management noted that weekly token usage across large language models rose nearly 17 times in eight months.

IREN Iren$26.67-$2.18 (-7.54%)

NASDAQ · As of 1:20 PM ET 10/29/26

The risk is the price tag. Iren plans to spend up to $30 billion on its build-out next year, while it reported just $707 million in trailing-12-month revenue and a net loss of over $700 million. However, customer prepayments are funding 45% to 55% of GPU costs, and Iren is expected to end 2026 with $4 billion in annual recurring revenue (ARR) after delivering its first batch of contracted capacity to Microsoft last quarter.

Iren's land and power assets could become increasingly valuable in a compute-constrained world. Wall Street's fiscal 2029 consensus estimate calls for earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach $9.9 billion. Iren's $10 billion market cap looks cheap relative to that estimate.

3. Taiwan Semiconductor: The foundry behind the boom Taiwan Semiconductor Manufacturing (TSMC) is the leading chipmaker, controlling over 70% of the foundry market, according to Counterpoint. It makes chips for other companies, and CEO C.C. Wei says that it works with all the AI companies. Third-quarter revenue hit $46.7 billion, up 41% year over year.

Demand for advanced 7-nanometer chips and smaller chips accounted for 79% of the company's wafer revenue in Q3 2026. TSMC dominates the foundry market because it can supply enough chips to meet demand across multiple markets, including smartphones. High-performance computing (HPC), including AI data centers, makes up 68% of the company's total revenue.

TSM Taiwan Semiconductor Manufacturing$431.40-$8.11 (-1.85%)

NYSE · As of 1:17 PM ET 10/29/26

TSMC forecasts AI accelerator revenue to compound in the mid-to-high-50s percentage range through 2029, and on the latest Q3 2026 earnings call, Wei said it will "probably" be higher. To meet demand, TSMC is investing $60 billion to $64 billion this year, partly to fund expanded manufacturing capacity across nearly 20 facilities worldwide.

Although the chip industry has grown significantly for several decades, it can experience ups and downs like the broader economy. Anything that slows chip demand and the data center build-out would send TSMC stock lower.

Still, the stock's valuation looks attractive. The shares trade at a forward P/E of 24, with analysts expecting earnings to grow at an annualized rate of 43%. That can support market-beating gains through 2030.

Key Takeaways 3M emerges as the stronger pick over ITW, backed by robust growth prospects & lower valuation.MMM's 2026 EPS is likely to grow 12.7% compared with ITW's 8.9%, while its shares have gained 18% in 6 months.ITW faces weakness in Construction and Specialty Products, rising debt and a higher forward P/E of 22.61X.
3M Company (MMM - Free Report) and Illinois Tool Works Inc. (ITW - Free Report) are both familiar names operating in the diversified industrials sector. While 3M operates in the industrial, electrical, transportation, consumer and home care markets, Illinois Tool provides electronic equipment, engineered adhesives, industrial sealants, food equipment, as well as construction products in the United States and internationally.

With considerable exposure in industrial and consumer markets, both companies invest heavily in research and development to generate innovative products, drive growth and gain market share. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.

The Case for 3M3M has been witnessing strong momentum in the Safety and Industrial segment, driven by strength in electrical, industrial specialties and personal safety markets. Stable demand across automotive aftermarket and fire safety markets is driving the segment’s performance. Also, new product launches and an increase in demand for industrial adhesives and tapes bode well for it.

Within the segment, sales in both personal safety and industrial adhesives & tapes markets increased 7.8%, while electrical market sales climbed 13.4% year over year in third-quarter 2026. Industrial specialties and automotive aftermarket also posted growth of 5.1% and 5.5% in the quarter, respectively. The Safety and Industrial segment’s organic sales increased 7% year over year in the third quarter.

Strong momentum across advanced materials, commercial branding and automotive & aerospace markets, supported by solid demand for products and broader sales coverage, is driving the Transportation & Electronics segment’s performance. In the third quarter, the segment’s organic sales increased 0.5% year over year. Backed by strength across its businesses, 3M provided a positive outlook. For 2026, it expects total adjusted organic sales to grow more than 3.5% on a year-over-year basis.

3M is committed to rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of 2026, the company rewarded its shareholders with $1.22 billion in dividends and $3.2 billion in buybacks. Exiting the third quarter, the company had $1.5 billion remaining under the share repurchase program. In February 2026, it hiked its quarterly dividend by 6.8%.

Despite the positives, weakness in the packaging, expression and home improvement markets, led by U.S. retailer inventory levels, remains a concern. This is reflected in the Consumer segment’s results, which declined 0.4% in the third quarter.

The Case for Illinois ToolIllinois Tool is benefiting from positive momentum across most of its segments. Strength across infrastructure, semiconductor, energy and aerospace and defense markets is driving the Welding segment’s performance. The segment’s organic revenues increased 6.9% year over year in third-quarter 2026.

Solid momentum in electronic assembly and semiconductor-related businesses, supported by expanded production capacity and differentiated product offerings, is benefiting the Test & Measurement and Electronics segment. Strength across automotive aftermarket, polymers and fluids businesses is driving the Polymers & Fluids segment. In the third quarter, organic revenues from Test & Measurement and Electronics and Polymers & Fluids segments increased 15.8% and 8.2%, respectively.

Weakness across residential markets in both North America and Europe is ailing the Construction Products segment's performance. However, growth in demand across residential markets in Australia and New Zealand remains a positive. Lower equipment sales and softness across appliance and marking coding businesses are hurting the Specialty Products segment’s results. In the third quarter, organic revenues from Construction Products and Specialty Products segments declined 0.8% and 1.2%, respectively.

Illinois Tool remains committed to rewarding its shareholders substantially through dividend payments and share buybacks. In the first nine months of 2026, the company paid about $1.4 billion in dividends and repurchased shares worth $1.3 billion.  In August 2026, the company hiked its dividend by 7% to $1.72 per share.

The company's high debt level remains a concern. Exiting third-quarter 2026, its total debt increased to $9.37 billion from $8.97 billion at the end of 2025. Long-term debt increased to $7.15 billion, while short-term debt totaled $2.22 billion, primarily reflecting higher commercial paper borrowings. Considering its high debt level, the company’s cash and cash equivalents of $809 million do not look impressive.

How Does the Zacks Consensus Estimate Compare for MMM & ITW?
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MMM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 4.8% and 12.7%, respectively. The EPS estimates for both 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ITW’s 2026 sales and EPS implies year-over-year growth of 4.8% and 9.2%, respectively. While Illinois Tool’s EPS estimate for 2026 has increased over the past 60 days, the same for 2027 has declined.

Price Performance and Valuation Profile
Image Source: Zacks Investment Research

In the past six months, 3M shares have risen 18%, while Illinois Tool stock has gained 7%.

Image Source: Zacks Investment Research

3M is trading at a forward 12-month price-to-earnings ratio of 17.84X, while ITW’s forward earnings multiple sits higher at 22.61X.

MMM or ITW: Which is a Better Pick?3M’s strength in the safety, industrial, transportation and aerospace markets, along with its focus on product innovation, is likely to drive its long-term performance. The company’s strong fundamentals showcase its potential to deliver sustained value to investors over time and boost their confidence in its growth trajectory.

In contrast, Illinois Tool’s strength in the Test & Measurement and Electronics, Polymers & Fluids and Welding segments has been dented by the weakness in its Construction and Specialty Products segments. Also, ITW’s expensive valuation and downward earnings estimate revisions warrant a cautious approach for existing investors.

Given these factors, MMM seems a better pick for investors than ITW currently. While 3M carries a Zacks Rank #2 (Buy), Illinois Tool currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bunge Global SA (BG) Q3 2026 Earnings Call October 29, 2026 8:00 AM EDT

Company Participants

Mark Haden - Vice President of Investor Relations
Gregory Heckman - CEO & Director
John Neppl - Executive VP & CFO

Conference Call Participants

Matthew Lovseth Blair - Tudor, Pickering, Holt & Co., LLC
Benjamin Theurer - Barclays Bank PLC, Research Division
Manav Gupta - UBS Investment Bank, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
Steven Haynes - Morgan Stanley, Research Division
Pooran Sharma - Stephens Inc., Research Division
Heather Jones - Heather Jones Research LLC
Andrew Strelzik - BMO Capital Markets Equity Research

Presentation

Operator

Good day, and welcome to the Bunge Global SA Third Quarter 2026 Earnings Release and Conference Call.

[Operator Instructions]

Please note, this event is being recorded. I would now like to turn the conference over to Mark Haden, IR. Please go ahead.

Mark Haden
Vice President of Investor Relations

Thank you, Keith, and thank you all for joining us this morning for our third quarter 2026 earnings call. Before we get started, I want to let you know that we have slides to accompany our discussion. These can be found at the Investor Center on our website at bunge.com under Events and Presentations. Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures are posted on our website as well.

I'd like to direct you to Slide 2 and remind you that today's presentation includes forward-looking statements that reflect Bunge's current view with respect to future events, financial performance and industry conditions.

These forward-looking statements are subject to various risks and uncertainties. Bunge has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation, and we encourage you to review these factors.

Key Takeaways A. O. Smith's adjusted EPS of 93 cents beat estimates, but earnings fell 1.1% year over year.North America sales rose 3%, while China sales fell 17% amid weak demand and business disruptions.A. O. Smith plans to sell an 81% stake in its China business in a deal valued at $400 million.
A. O. Smith Corporation (AOS - Free Report) reported third-quarter 2026 adjusted earnings of 93 cents per share, beating the Zacks Consensus Estimate of 90 cents by 3.3%. The bottom line declined 1.1% year over year, as lower residential water heater volumes and higher input costs weighed on profitability.

Net sales of $940.5 million missed the consensus estimate of $959.99 million by 2% and fell 0.2% year over year. North America sales rose 3%, supported by 13% boiler sales growth, pricing benefits and Leonard Valve, while China sales dropped 17% in local currency.

Segmental Details of AOSA. O. Smith's quarterly sales in North America (comprising the United States and Canada operations) increased 3% year over year to $761.6 million. This uptick was driven by higher boiler volumes, benefits from pricing actions and a $15 million contribution from the Leonard Valve acquisition, partially offset by lower residential water heater volumes. Excluding Leonard Valve, organic sales increased 1%.

Segmental earnings were $179.9 million, up 0.1% year over year. The segment margin declined to 23.6% from 24.2% in the year-ago period, primarily due to lower residential water heater volumes and higher steel and freight costs. Higher boiler volumes, tariff refunds, pricing benefits and Leonard Valve contributions partially offset these headwinds.

Quarterly sales in the Rest of the World (including China, India and Europe) segment were $192.8 million, down 7.3% year over year. Sales included a favorable currency translation impact of $5 million, primarily related to China. Weak consumer demand and disruptions associated with the company's strategic assessment process affected China sales.

The segment's earnings were $10.5 million, down 31.8% year over year, due to lower China sales volumes, partially offset by continued cost-management actions. The segment margin declined to 5.4% from 7.4% in the year-ago quarter.

A. O. Smith's Margin DetailsAOS' cost of sales was $575.8 million, down 0.4% year over year. Selling, general and administrative expenses were $189.5 million, up 0.3% from the year-ago period.

Gross profit increased marginally year over year to $364.7 million from $364.5 million. The gross margin was 38.8% compared with 38.7% in the year-ago period. Interest expenses increased to $7.7 million from $3.6 million in the prior-year quarter.

AOS' Liquidity & Cash FlowAs of Sept. 30, 2026, AOS’ cash and cash equivalents totaled $234.5 million compared with $174.5 million at the end of December 2025.

At the end of the third quarter, long-term debt was $632.1 million compared with $112.7 million at the end of December 2025. The increase in the debt level was attributable to cash borrowed by the company under a new term loan for the acquisition of Leonard Valve.

In the first nine months of 2026, cash provided by operating activities totaled $429.4 million compared with $433.7 million in the year-ago period.

A. O. Smith's Share RepurchasesIn the first nine months of 2026, A.O. Smith repurchased 4.2 million shares for $260.6 million. As of the end of the third quarter, approximately 1.6 million shares were left to be repurchased under the share repurchase authorization.

AOS maintained its full-year 2026 share repurchase target of approximately $300 million, reflecting its continued commitment to returning capital to shareholders.

AOS' China Business DivestitureOct. 27, 2026, A. O. Smith announced definitive agreements under which CPE will acquire an 81% interest in its China business. AOS will retain a 19% stake and enter into a long-term brand licensing agreement.

The transaction values the China business at approximately $400 million on a cash-free, debt-free basis. Including the present value of future licensing payments, the total value is expected to exceed $500 million. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary closing conditions.

A. O. Smith's 2026 OutlookA.O. Smith expects 2026 net sales, excluding China, in the range of $3.27-$3.29 billion, implying growth of approximately 4%. The company updated its guidance to exclude the China business following the announced sale of a majority interest in the business.

Management currently projects adjusted earnings per share, excluding China, in the band of $3.42-$3.52. The outlook also excludes approximately $20 million in estimated pretax restructuring and impairment expenses related to the North America water treatment business.

AOS’ Zacks RankThe company currently carries a Zacks Rank #4 (Sell).  

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

Performance of Other CompaniesIn the third quarter of 2026, Graco Inc. (GGG - Free Report) came out with quarterly earnings of $0.81 per share, missing the Zacks Consensus Estimate of $0.82 per share. This compares with earnings of $0.73 per share a year ago.

Graco reported revenues of $586.39 million in the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.58%. This compares with year-ago revenues of $543.36 million.

Dover Corporation (DOV - Free Report) has reported third-quarter 2026 adjusted earnings of $2.88 per share, rising 10% year over year and beating the Zacks Consensus Estimate of $2.83 by 1.77%. The improvement reflected broad-based demand, higher revenues and operational execution.

Revenues increased 7.5% year over year to $2.23 billion, beating the Zacks Consensus Estimate of $2.20 billion by 1.47%. Organic revenues grew 7.1%. Our model expected organic revenues to rise 4%.

Allegion plc (ALLE - Free Report) reported third-quarter 2026 adjusted earnings of $2.60 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate of $2.49 by 4.4%, supported by strong organic growth and margin expansion.

Revenues increased 9.6% year over year to $1.17 billion, beating the Zacks Consensus Estimate of $1.13 billion by 3.4%. Organic revenues grew 7.2%, driven by strength in the Americas non-residential business, volume growth and price realization.

watch now

The race to build artificial intelligence infrastructure is creating enormous new risks that could threaten financing for the data centers powering the artificial intelligence boom, according to Aon CEO Greg Case.

In an interview with CNBC Wednesday, Case warned that clustering billions of dollars of equipment and computing capacity in a small number of locations could make some projects difficult to insure, with consequences for developers seeking financing.

"If you create them and you build them on top of each other, you've created concentration risk in a way in which it makes it more difficult to get insurance," Case said.

"If it's more difficult to get insurance, that means the financing structure is going to change completely. You can't access the debt markets," he said.

The potential financial exposure from operational disruptions is staggering, Case said.

"Data centers are literally going to measure business interruption at millions of dollars per minute," he told CNBC.

The warnings come as technology companies accelerate spending on data centers, electricity generation and other infrastructure needed to support AI. Those investments are creating opportunities for insurers, brokers and business risk consultants. They're also raising questions about whether traditional insurers have sufficient capacity to absorb the risks.

In its third-quarter earnings, Aon reported a record pipeline of data center projects, helping drive 7% organic revenue growth in its commercial risk business during the quarter. Adjusted earnings per share increased 10% to $3.36, while adjusted operating margin expanded 70 basis points to 27%. One basis point equals 0.01%, or 1/100th of 1%.

The company has developed specialized insurance facilities, or pools of capacity to cover specific industries or risks, to address growing demand, including a $10 billion data center facility and a $2.5 billion energy facility.

Managing the risks begins well before a policy is written, according to Case. Aon said it is working with developers to design and locate facilities, reduce the potential for business interruption and structure insurance coverage that can support financing.

"These are engineering conversations around understanding risk," Case said.

A $17 billion bet on a riskier worldThe surge in demand for sophisticated risk management is also central to Aon's pending $17 billion acquisition of USI Insurance Services, which is expected to close in the fourth quarter.

The deal will combine USI with Aon's existing operations and NFP, which Aon acquired in 2024, creating a roughly $6.5 billion middle-market platform.

Case said smaller companies face many of the same increasingly complex risks as multinational corporations, but often lack access to comparable analytics, expertise and insurance solutions.

"Our middle market clients have exactly the same challenges, exactly the same risks they face every day, and they deserve to have the content, the insight, the capability that the largest companies in the world have," Case said.

Most industry insiders and experts anticipate AI will make insurance brokerage and consulting more efficient. Asked why Aon is investing billions in acquisitions rather than exclusively expanding its technology capabilities, Case said the two are not mutually exclusive.

"This is about talent and technology," he said. "You get those both right. That's how you build the relationships that matter for clients."

Aon expects $395 million in annual earnings benefits from the USI combination, including $280 million in cost savings and $115 million in revenue synergies.

The acquisition will be financed with debt, and the company expects to prioritize reducing leverage over the next two years.

AI cyber insurance risksAI is creating opportunities for insurers to better understand vulnerabilities, even as the technology introduces new threats that could generate widespread financial losses.

Researchers disclosed two critical vulnerabilities in PHP, a programming language used by roughly 70% of websites, on Oct. 21. The flaws could allow hackers to remotely execute malicious code on vulnerable servers without authentication. AI played a significant role in discovering and analyzing the vulnerabilities through cybersecurity firms Calif and Google's Wiz, along with OpenAI.

Asked whether cyber risks are escalating faster than insurers can respond, Case said the industry needs to expand beyond its traditional capital base to meet growing demand.

"We have to keep up. We have to continue to evolve," he said.

Case estimates the global insurance industry currently has about $4.5 trillion in capital. He believes that amount must double or triple to meet the growing needs across cyber, AI, data centers and other emerging risks.

"Call it 5 trillion to 10 to 15 trillion," Case said, outlining his vision for expanding the industry's capacity and clarifying remarks he made in the company's second-quarter earnings call.

His strategy involves tapping institutional investors, pension funds, sovereign wealth funds and wealthy individuals to help finance risks traditionally carried by insurance companies and reinsurers. Case estimates those sources represent a potential pool of approximately $250 trillion in capital — a fraction of which could substantially expand the market.

Aon is increasingly positioning itself not simply as a broker connecting companies with existing insurers, but as an intermediary helping create new pools of capital to absorb complex risks.

"Not just being a market taker or market optimizer for our clients, but a market maker creating new markets to sort of drive and address risk," Case said.

That creates opportunities for alternative asset managers and private investors seeking returns from insurance-linked investments, although investors must be able to evaluate the potential for large and correlated losses.

Case said the critical ingredient is the ability to quantify exposures accurately enough to give investors confidence to commit their capital.

Commercial insurance pricesWhile corporate risk is becoming more complex, some commercial insurance prices are declining and companies are beginning to see some relief after years of rising premiums.

But Case cautioned, this is not a prolonged period of lower insurance rates.

"Some are confusing that with it's a permanent soft market. Not the case at all," he said.

He said some corporate clients are using lower insurance prices as an opportunity to buy more protection rather than simply reduce spending.

"We have clients who literally, when they understand their exposure, even though the unit price might have been coming down, they completely restructure their program and buy more because they need more coverage," Case said.

The dynamic is helping Aon maintain growth despite softer pricing in commercial insurance and reinsurance markets.

For Nio (NIO +0.15%) investors, selling more vehicles is encouraging, especially as it needs scale to break even for the full year 2026, as management has targeted. But turning those sales into sustainable profits? That's where the automotive industry gets challenging.

The electric vehicle (EV) maker delivered 109,178 vehicles during the third quarter, increasing 25.4% year over year, according to its delivery update⁠. That's solid growth, but investors already know the delivery total. The upcoming earnings report needs to tell us more about the financial quality of those sales.

One figure deserves particular attention: vehicle margin. Nio has made substantial progress on that front, and protecting those gains could matter more than investors realize.

Can Nio protect margins? Bear with me for a little investing 101. Vehicle margin simply measures the percentage of vehicle revenue remaining after the associated cost of sales. It tells investors how much of that revenue remains to cover expenses such as research, development, and marketing. Nio's vehicle margin reached 18.5% in the second quarter, up from 10.3% a year earlier and 18.8% in the first quarter of 2026. The longer trend shows how far the business has come, and it's impressive, even with some bumps along the way.

Data source: Nio SEC filings. Chart source: Author using ChatGPT.

There are reasons to believe Nio can defend its vehicle margin gains, in part thanks to rising premium-brand deliveries. During its second-quarter earnings call⁠, management said its premium ES8 and ES9 SUVs each generated vehicle margins above 20%.

Further, third-quarter deliveries of the namesake Nio brand increased approximately 69% year over year, outpacing Firefly's roughly 52% growth, while Onvo deliveries declined approximately 26%. That shifted the premium brand's share of deliveries from about 42% to 57%. If that shift favors higher-margin models such as the ES8 and ES9, it should help support the company's recent vehicle margins above 18%.

Nio's ES9. Image source: Nio.

But there is a bit of a catch. Management also highlighted rising costs for memory chips, batteries, and other materials. Its stated aim during the earnings call was to keep third- and fourth-quarter vehicle margins around the second-quarter level.

Investors shouldn't treat another sequential margin increase as a given. Holding near 18.5% would still represent meaningful improvement from the 14.7% recorded in last year's third quarter⁠. Sometimes holding your ground is still progress, especially when costs are driving in the opposite direction.

$3.33+$0.01 (+0.15%)

NYSE · As of 1:14 PM ET 10/29/26

What investors should watch Nio needs more than growing sales to establish sustainable company-wide profitability. It needs to continue controlling costs and managing incentives amid a brutal Chinese auto price war. Its second-quarter results emphasize the remaining gap between GAAP and adjusted figures: Nio reported an operating loss of approximately RMB347 million, although adjusted operating profit, which excludes certain items, was approximately RMB207 million.

Maintaining stronger vehicle margins while expanding sales would help Nio keep more of that growth from being swallowed by costs. Breaking even and then turning a profit also depends on expense discipline: Higher gross profit won't get the company very far if operating expenses absorb the improvement. Management has targeted full-year breakeven on a non-GAAP operating basis in 2026⁠, giving investors a concrete benchmark for judging progress. Protecting vehicle margins while keeping operating expenses in check would help turn rising sales into progress toward that goal.

Nio doesn't need another dramatic margin jump to deliver an encouraging quarter, or to achieve its full-year breakeven target. Holding near recent levels despite rising costs -- and translating that discipline into a stronger bottom line -- Nio is getting closer to turning real bottom-line profits. That would give long-term investors something absolutely worth celebrating.

Ares Capital (ARCC +2.10%) has long been a popular stock among income investors, thanks to its high-yielding dividend. The business development company (BDC) currently offers a yield of more than 10%, significantly above the broader market (the S&P 500 yields around 1.1%).

However, its latest earnings report raised some questions about the sustainability of that payout. Meanwhile, a newly announced acquisition could help strengthen its future earnings. Here's a closer look at whether Ares Capital is an attractive investment opportunity following these developments.

Image source: Getty Images.

Ares Capital's latest earnings: Dividend coverage is getting tighterAres Capital reported $0.46 per share of core earnings in the third quarter, down from $0.50 per share in the year-ago period. That fell short of its quarterly dividend payment of $0.48 per share. That's not an immediate concern, but it does represent a change from the excess dividend coverage it had previously delivered.

That prior excess income currently provides the BDC with a sizable cushion. Ares Capital's CFO Scott Lem noted on the third-quarter conference call that the company finalized its 2025 tax return and determined that it carried forward $1.37 per share of taxable income for distribution this year.

Meanwhile, CEO Kort Schnabel stated on the call that: "We continue to believe ARCC's current regular dividend appropriately reflects the underlying earnings power of the business. While earnings will naturally fluctuate from quarter-to-quarter, the strength of our portfolio, attractive market pricing and terms, the current interest rate environment, and the expected benefits from the acquisition I discussed earlier reinforce our confidence in the current dividend level."

$18.92+$0.39 (+2.10%)

NASDAQ · As of 1:12 PM ET 10/29/26

The MFIC acquisition could helpSpeaking of that acquisition, Ares Capital recently agreed to buy fellow BDC MidCap Financial Investment Corporation (MFIC +0.49%) in a $2.6 billion transaction, including assumed liabilities. Ares expects that the deal will be modestly accretive to core earnings per share and supportive of future dividends. The combination would expand ARCC's portfolio to more than 800 companies with over $31 billion of investments.

MidCap Financial currently has a nearly $2.8 billion investment portfolio across 229 portfolio companies. Schnabel noted on the call that "Based on the depth of our due diligence on each investment in the portfolio," the company believes it has an excellent foundation in place to continue its successful acquisition track record. Once it closes the MFIC deal, it will have acquired all three of the largest BDCs in operation at the time of its IPO more than 20 years ago. These deals have helped ARCC become the largest publicly traded BDC, while supporting its dividend. It has paid a stable or increasing dividend for 69 straight quarters (over 17 years).

MFIC MidCap Financial Investment Corporation$10.29+$0.05 (+0.49%)

NASDAQ · As of 1:12 PM ET 10/29/26

Valuation: Is ARCC a buy?ARCC currently trades around $18.75 per share. At its current annualized dividend rate ($1.92 per share), the BDC offers a 10.2% yield. Meanwhile, the company reported that its net asset value (NAV) per share was $19.31 at the end of the third quarter. That's about a 3% discount to its NAV. That's not necessarily a bargain, considering its NAV has declined from $19.94 per share over the past year due to deteriorating credit quality. However, nonaccruals were only 2.4% at the end of the quarter (unchanged sequentially) and remain below its roughly 3% historical average since the global financial crisis, and below its peers' more than 4% average during that period.

Ares Capital has a solid history of delivering a stable-to-growing NAV. Since inception, its NAV per share has grown by more than 25%, showcasing its disciplined underwriting and ability to grow shareholder value.

Overall, the BDC currently offers a potential double-digit income return before any share-price appreciation, provided it can maintain its current dividend level. It appears to be in a solid position to sustain its dividend, thanks to its ample spillover income, the modest expected accretion from the MFIC deal, and the underlying earnings power of its business. That makes Ares Capital look like a solid buy for income-seeking investors after its earnings report.

Still an attractive income-focused investmentAres Capital's latest results weren't overly impressive, with its core earnings falling short of its dividend and credit quality weakening modestly. However, the company maintains a diversified portfolio, and its pending acquisition of MidCap Financial Investment Corporation could improve its future earnings power. With shares trading below its net asset value and yielding more than 10%, I think Ares Capital remains an attractive option for income-focused investors willing to accept the risks of private credit. I'd keep a close eye on dividend coverage and non-accrual loans in the coming quarters to ensure the payout remains sustainable.

Gen Digital says it's currently not working on a ‘transformative acquisition.

COLUMBUS, Ohio, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the leading technology company in car insurance, shared an editorial by Alex Timm, Founder and CEO of Root Insurance. In the editorial, Timm states the importance of insurance companies preparing for the new frontier of agentic commerce.

The rapid adoption of AI agents could fundamentally transform the auto insurance industry by enabling consumers to effortlessly automate the comparison shopping process. This technological leap shifts market power away from expensive brand marketing campaigns and toward carriers equipped with advanced risk-pricing algorithms and seamless API integrations.

Timm emphasizes that agentic commerce could accelerate industry change, meaning that massive spend on brand awareness could no longer be as critical for success. Timm highlights the fact that “AI agents don’t value sports sponsorships, arena logos, or catchy jingles; they value the best price and coverage for each individual consumer.”

Insurance carriers will now have to compete more heavily on sophisticated pricing models, he states: “As AI agents drive pure price shopping, the ultimate winners should be the carriers that can identify and price risk. Success in this new era doesn't just mean offering the lowest price for every driver. The strategic advantage will be advanced segmentation and pricing.”

For customers, agentic technology creates a powerful tool that can automate shopping across many categories, including insurance. As a result, customers can continuously shop for the best prices and coverage for their demographic, location, car type, and driving record. “AI makes a task that would be improbable for a human—quoting with every insurance company possible—simple and automated,” Timm states.

Meta’s AI agent Muse topped 10.9 million downloads since its Sept. 8 launch and reached an estimated 2.5 million daily active users [1]. Timm reasons that as agentic commerce platforms drive this shift, forward-thinking carriers that embrace this technology will be better positioned to meet customer needs. He believes companies that can adapt quickly and accurately price risk will be rewarded, and that Root is well prepared for the transition.

The editorial was published on October 28, 2026, in Digital Insurance. Read the full op-ed here.

About Root, Inc.
Root Insurance is a technology company revolutionizing car insurance through data science and automation. Founded in 2015 and based in Columbus, Ohio, Root, Inc. (NASDAQ: ROOT) is the parent company of Root Insurance Company. The Root app has reached more than 18 million downloads and has analyzed close to 38 billion miles of driving data to deliver personalized, easy, and fair pricing. Root is available in 38 states and offers auto insurance to consumers across the United States through its direct-to-consumer channel, independent insurance agents, and distribution partners.

For more information, visit root.com.

Contacts
Media:
[email protected]

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws regarding Root, Inc. These forward-looking statements relate to, among other things, expectations about our future technological developments, our ability to successfully implement and utilize new technologies, and the anticipated impact of these technologies on our future business results and customer experience. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. We have based our forward-looking statements on our current expectations, estimates and projections about our industry and our company. We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties and assumptions that we cannot predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. In accordance with "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we have included in Root's Form 10-K for the year ended Dec. 31, 2025, and other SEC filings, cautionary language identifying important factors, though not necessarily all such factors, that could cause future outcomes to differ materially from those set forth in the forward-looking statements. Copies of Root's Form 10-K and other SEC filings are available on the SEC's website, Root's website at ir.joinroot.com/investor-relations, or by contacting Root's Investor Relations office.

[1] "Meta's Muse AI agent hits 10.9 million downloads as ChatGPT slides 25%." Yahoo Finance, 20 Oct. 2026, finance.yahoo.com/markets/article/metas-muse-ai-agent-hits-109-million-downloads-as-chatgpt-slides-25-153532560.html

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