Builders FirstSource (BLDR - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this construction supply company have returned +13%, compared to the Zacks S&P 500 composite's -1.7% change. During this period, the Zacks Building Products - Retail industry, which Builders FirstSource falls in, has gained 10.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Builders FirstSource is expected to post earnings of $1.32 per share, indicating a change of -44.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.26 points to a change of -38.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $5.69 indicates a change of +33.5% from what Builders FirstSource is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Builders FirstSource is rated Zacks Rank #5 (Strong Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Builders FirstSource, the consensus sales estimate for the current quarter of $3.93 billion indicates a year-over-year change of -7.2%. For the current and next fiscal years, $14.87 billion and $15.66 billion estimates indicate -2.1% and +5.3% changes, respectively.
Last Reported Results and Surprise HistoryBuilders FirstSource reported revenues of $3.29 billion in the last reported quarter, representing a year-over-year change of -10.1%. EPS of $0.27 for the same period compares with $1.51 a year ago.
Compared to the Zacks Consensus Estimate of $3.15 billion, the reported revenues represent a surprise of +4.47%. The EPS surprise was -30.77%.
Over the last four quarters, Builders FirstSource surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Builders FirstSource is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Builders FirstSource. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paychex (PAYX - Free Report) Paychex, Inc. is one of the leading providers of integrated human capital management (“HCM”) solutions for payroll, human resource (“HR”), retirement and insurance services for small- to medium-sized businesses. The company was incorporated in Delaware in 1979.
PAYX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. PAYX has a Momentum Style Score of B, and shares are up 6.9% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.05 to $5.96 per share. PAYX also boasts an average earnings surprise of +1.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYX should be on investors' short list.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CCD, WES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Choosing between Arcutis Biotherapeutics (ARQT 0.12%) and Vertex Pharmaceuticals (VRTX +6.13%) involves weighing a high-growth newcomer against a cash-generating giant. Both companies aim to dominate their respective niches within the healthcare sector.
Arcutis focuses on topical treatments for common skin conditions, aiming to disrupt the competitive dermatology market with innovative creams. Vertex is a global leader in treating rare diseases, recently diversifying its portfolio beyond its core cystic fibrosis treatments. Both companies represent different risk-reward profiles for investors targeting the biotech space.
The case for Arcutis BiotherapeuticsArcutis Biotherapeutics is a commercial-stage medical dermatology company that develops and sells topical therapies for immune-mediated skin diseases. Its primary commercial strategy centers on the Zoryve product line, which includes treatments for plaque psoriasis and atopic dermatitis. To reach patients, the company relies on a network of specialty pharmacies and maintains strategic licensing agreements with AstraZeneca (AZN +6.04%) and Jiangsu Hengrui Medicine.
In FY 2025, revenue reached nearly $376.1 million, representing a massive 101% growth over the prior year. Despite this rapid expansion, the company reported a net loss of $16.1 million. This net loss is a significant improvement over the prior year’s $140 million loss, suggesting the company is effectively scaling its revenue relative to its fixed costs.
On its current balance sheet, the debt-to-equity ratio is close to 0.7x, showing a strong ability to cover short-term liabilities with current assets. Free cash flow was a negative $6.3 million as the business continues to invest in its growth within the biotech stocks landscape.
The case for Vertex PharmaceuticalsVertex Pharmaceuticals is a global biotechnology leader primarily known for its dominance in treating cystic fibrosis. The company derives nearly all of its product revenue from medicines like Trikafta, which it distributes through a limited number of specialty pharmacy networks. It also maintains key strategic collaborations with CRISPR Therapeutics (CRSP +7.77%) and Moderna (MRNA +9.99%) to develop new therapies for serious diseases like sickle cell disease.
In FY 2025, revenue reached $12 billion, representing a year-over-year increase of nearly 10%. The company reported net income of nearly $4 billion, resulting in a net margin of approximately 32.7%. Net margin indicates how much of every dollar in revenue actually becomes profit after all expenses, and the company's P/S ratio, which compares its stock price to its total sales, reflects its market standing.
Its current debt-to-equity ratio is approximately 0.1x. This ratio compares total debt to shareholder equity, and a lower number indicates a conservative approach to borrowing. Free cash flow for FY 2025 was close to $3.2 billion. Free cash flow is the cash a company generates after accounting for the money spent to maintain or expand its asset base.
Risk profile comparisonArcutis Biotherapeutics faces substantial risks stemming from its reliance on the Zoryve product line in a competitive field dominated by giants like AbbVie (ABBV +3.90%) and Pfizer (PFE +1.84%). Additionally, the company is involved in patent litigation with Teva Pharmaceutical Industries (TEVA +3.59%) regarding generic versions of its flagship cream. Failure to protect its intellectual property or meet financial covenants with SLR Investment Corp (SLRC 0.72%) could significantly harm its operations.
Vertex Pharmaceuticals deals with heavy revenue concentration, as its cystic fibrosis franchise accounts for the vast majority of its sales. This makes the company vulnerable to competitive entry and ongoing pricing pressure from government cost-containment measures like the Inflation Reduction Act. Clinical development also carries inherent risks, as illustrated by a recent class-action investigation into results from a Phase 2b trial.
Valuation comparisonVertex Pharmaceuticals offers a lower Forward P/E, but Arcutis Biotherapeutics has a lower P/S ratio compared to its peer.
MetricArcutis BiotherapeuticsVertex PharmaceuticalsSector BenchmarkForward P/E142.86x26.1x389.1xP/S ratio8.0x10.5xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Arcutis has just reached positive cash flow in its first quarter of fiscal 2026, with sales up 65% from the first quarter of 2025 but down 16% sequentially. This stems from the fact Zoryve isn’t a must-have for most patients, so its demand appeared impacted by higher consumer costs from rising gas prices and food inflation. The company discounts the product price, covers the copay if the patient has insurance, and charges $35 if they don’t. Demand for Zoryve also seems to be driven by the weather, with demand weaker when the weather doesn’t trigger as many skin conditions.
The cash-flow positive quarter means the business does have the capital to start to invest more in marketing and promoting Zoryve. Research and development efforts should lead to more indications that Zoryve can treat, too. Wall Street sees revenue rising 26% this year to $497 million, with the business registering its first annual net income.
Vertex, meanwhile, is building on its dominant position in cystic fibrosis treatment by investing heavily in research and development. In the past couple of years, Vertex has expanded its CF drug treatments. Its products now address 95% of all CF patients in the U.S. Approvals in other markets are coming through, which means the market for its existing drugs continues to expand. Vertex is also deep in trials for a drug to treat conditions that lead to renal failure, a new market for Vertex. The U.S. has accelerated approval for povetacicept in IgA nephropathy, a treatment that would be a blockbuster ($1 billion-plus in lifetime sales) if approved.
Arcutis is an interesting business that is just getting off the ground. Yet Arcutis’ main product does not fill a high-priced niche and appears subject to seasonality and fluctuations in consumer demand, which should give an investor pause.
Vertex continues to be a fast grower too, with Wall Street seeing sales grow more than $1 billion this year to over $13 billion, with nearly $4.5 billion in net income. With an expanding market, heavy R&D, and a decent price-to-forward earnings ratio, Vertex gets the nod.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Huntington Ingalls (HII - Free Report) Based in Newport News, VA, Huntington Ingalls Industries designs, builds and maintains nuclear-powered ships such as aircraft carriers and submarines, and non-nuclear ships, such as surface combatants, expeditionary warfare/amphibious assault and coastal defense surface ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe.
HII, a #3 (Hold) stock, was added to the Focus List on May 9, 2016 at $155.2 per share. Since then, shares have increased 87.82% to $291.5.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $17.32. HII boasts an average earnings surprise of 10.6%.
Additionally, HII's earnings are expected to grow 12.5% for the current fiscal year.
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Arista Networks, Inc. ANET has gained 56% in a year compared with the Internet software industry's growth of 10.8%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of AeroVironment, Inc. (NASDAQ: AVAV) between June 25, 2025 and March 10, 2026, inclusive (the "Class Period"), of the important July 27, 2026 lead plaintiff deadline.
So What: If you purchased AeroVironment securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
What to do next: To join the AeroVironment class action, go to https://rosenlegal.com/cases/aerovironment-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 27, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Details of the case: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) AeroVironment understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the U.S. Space Force's Satellite Communication Augmentation Resources ("SCAR") program and the U.S. Space Force's ongoing efforts to modernize the Satellite Control Network ("SCN"); (2) accordingly, defendants overstated AeroVironment's business and financial prospects; and (3) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the AeroVironment class action, go to https://rosenlegal.com/cases/aerovironment-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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Contact Information:
Laurence Rosen, Esq.
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The Rosen Law Firm, P.A.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Fox (FOXA - Free Report) Headquartered in New York, Fox Corporation is a news, sports and entertainment content provider. It became a standalone, publicly-traded company on Mar 19, 2019, following the merger of Disney and Twenty-First Century Fox, Inc.
FOXA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 9.82; value investors should take notice.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.35 to $4.93 per share. FOXA boasts an average earnings surprise of +43%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, FOXA should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Albertsons Companies, Inc. (ACI - Free Report) Headquartered in Boise, ID, Albertsons Companies, Inc. is one of the largest food and drug retailers in the United States. The company operates food and drug retail stores that offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services. Albertsons went public on June 26, 2020.
ACI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.26; value investors should take notice.
For fiscal 2027, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $2.26 per share. ACI boasts an average earnings surprise of +8.9%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ACI should be on investors' short list.
Par Petroleum (PARR - Free Report) closed the last trading session at $58.49, gaining 5.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $73.25 indicates a 25.2% upside potential.
The mean estimate comprises eight short-term price targets with a standard deviation of $8.07. While the lowest estimate of $60.00 indicates a 2.6% increase from the current price level, the most optimistic analyst expects the stock to surge 36.8% to reach $80.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for PARR, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why PARR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 5.9%, as three estimates have moved higher compared to no negative revision.
Moreover, PARR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PARR could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Avnet's AI and data center exposure rose to 10-15% as fiscal third-quarter revenues grew 34%.AVT's IP&E business grew 25% as AI buildouts lifted demand for power, cooling and other components.Avnet sees near-term momentum supported by growing backlogs and book-to-bill ratios above parity. Avnet (AVT - Free Report) is benefiting from strong demand in AI infrastructure and networking markets. AI-related demand is becoming a larger part of AVT’s business. In the third quarter of fiscal 2026, management stated that the company’s direct exposure to AI and data center customers has increased from around 5-7% to nearly 10-15%.
Most of this business is tied to Asia, especially Taiwan, where demand from hyperscalers and server customers remains strong. The company is also benefiting from demand for components that support AI infrastructure. In the third quarter of fiscal 2026, the company reported revenues of $7.1 billion, up 34% year over year and 13% sequentially.
AI buildouts are increasing demand for products tied to power management, cooling systems, connectors, capacitors, resistors and sensors. This helped AVT’s interconnect, passive and electromechanical (IP&E) business grow 25% year over year in the quarter. Since AI accelerators require surrounding IP&E products, creating additional sales opportunities beyond semiconductors.
AVT expects current demand trends to continue in the near term. With growing backlog levels and book-to-bill ratios above parity across all regions, supported by rising lead times across several component categories as supply conditions tighten, AVT remains well-positioned to continue seeing strong business momentum in the near term.
Furthermore, Avnet delivered record sales of $6.67 billion in its Electronic Components business, which increased 34.7% year over year. Avnet is entering an upcycle with demand improving across data center and AI builds, industrial, networking and aerospace/defense, driving better sales execution and operating margin expansion.
How Competitors Fare Against Avnet StockAvnet operates in a competitive technology distribution market where it competes with global component distributors as well as broader IT distributors, including Arrow Electronics (ARW - Free Report) and CDW (CDW - Free Report) . However, the company has created a niche for itself, which helps to protect its margins.
Arrow Electronics competes head-to-head with Avnet in electronic component distribution, semiconductor supply, embedded computing and engineering services. Both Arrow Electronics and Avnet serve OEMs, industrial manufacturers, automotive suppliers, communications equipment vendors and data center customers. Avnet comes to a crossroads with CDW in the AI infrastructure value chain. Avnet plays its role much earlier in the technology value chain, making the overlap minimal with CDW.
AVT’s Price Performance, Valuation and EstimatesAvnet shares have soared 70.9% in the year-to-date period, outperforming the Zacks Electronics - Parts Distribution industry’s 55.9% growth.
AVT YTD Performance Chart
Image Source: Zacks Investment Research
Despite this outperformance, AVT stock is trading at a price-to-sales multiple of 0.25X, which is below the P/S multiple of industry’s P/S multiple of 0.38X. The undervaluation is further substantiated by Zacks Value Score of B.
AVT Forward 12-Month Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AVT’s fiscal 2026 revenues is pegged at $25.59 billion, implying year-over-year growth of 15.2%. The estimate has remained unchanged for the past 30 days.
Image Source: Zacks Investment Research
AVT currently carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LOS ANGELES, July 03, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Verra Mobility Corporation (“Verra” or “the Company”) (NASDAQ: VRRM) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 24, 2026, and May 26, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 4, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Verra misled investors about its growth prospects. The Company downplayed the risk of major customers in the rental car industry replacing its services with in-house solutions. The Company concealed the fact that its relationship with Avis Budget Group, which represented 10% of its revenue, was at significant risk of falling apart. The Company finally revealed that Avis Budget Group terminated its relationship on May 26, 2026. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Verra, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
After a 89% year-to-date rally that has taken shares from $143.89 to $271.95, Credo Technology Group (NASDAQ: CRDO | CRDO Price Prediction) has become one of the most talked-about AI infrastructure plays on the market.
Our 24/7 Wall St. price target for Credo is $248.61, implying -8.58% downside over the next 12 months. Our recommendation is hold, with a high 90% confidence level.
24/7 Wall St. Price Target Summary Metric Value Current Price $271.95 24/7 Wall St. Price Target $248.61 Upside/Downside -8.58% Recommendation HOLD Confidence Level 90% A Note Before We Begin Our 24/7 Wall St. price target of $248.61 sits modestly below where Credo trades today. Credo is one of the purest AI connectivity plays in the market, and real upside could come from the recently announced ZeroFlap optics ramp or the DustPhotonics acquisition unlocking silicon photonics revenue. Treat our target as one datapoint among many. A detailed bull case follows.
The Rally Behind a 193% One-Year Gain Credo is up 15.22% over the past month and 193.71% over the past year, sitting 13% below its 52-week high of $308.67. The most recent surge came on June 30, when shares jumped 10.69% following Credo’s reclassification from the Russell 2000 into the Russell 1000 and Russell Midcap indices.
Fundamentally, the story is loud. Q4 FY2026 revenue landed at $437 million, up 157.0% year over year, and non-GAAP EPS of $1.16 beat consensus by 12.17%, marking four consecutive quarters of EPS beats. Full-year revenue more than tripled to $1.34 billion.
Why Bulls See a Breakout Ahead The bull case rests on TAM. BNP Paribas initiated coverage with a $275 target, arguing Credo’s addressable market could exceed $10 billion with 5 of 6 hyperscalers already customers. Evercore ISI initiated Outperform at $325, citing optical DSPs via DustPhotonics.
Stifel reiterated Buy and raised its target to $350 from $250. CEO Bill Brennan noted, “Fiscal 2026 marked another defining year for Credo. For the year, revenue more than tripled to $1.3 billion, and non-GAAP net income increased more than five times to $662 million.” Our bull-case 1-year target is $334.49.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Credo Technology Group didn't make the cut. Grab the names FREE today.
The Risks Worth Watching Credo trades at a trailing P/E of 109 and a forward P/E of 42. Simply Wall St pegs fair value at $130, implying the stock is roughly 100% above intrinsic value.
Insider selling reached $77.5 million in the recent period, though bulls fairly note these sales occurred under pre-arranged Rule 10b5-1 trading plans and reflect tax obligations rather than conviction changes. Customer concentration among hyperscalers remains a real risk if AI capex cools. Our bear-case 1-year target is $196.98.
Hold for Now, Watch for a Pullback Our 24/7 Wall St. price target remains $248.61 with a hold recommendation and 90% confidence. The scale tipper is valuation: at an implied P/E near 80, Credo is priced for flawless execution.
A pullback into the low $200s with hyperscaler AEC bookings intact would improve the risk/reward. Conversely, slipping optical DSP ramps or softer hyperscale capex guidance into calendar 2027 would weaken the setup.
Looking further out, here is where our model projects Credo could trade, assuming current AI infrastructure growth trajectories hold.
Year 24/7 Wall St. Price Target 2026 $248.61 2027 $268.00 2028 $285.00 2029 $305.00 2030 $254.00 These projections assume Credo continues executing on its 1.6T connectivity roadmap and successfully integrates optical acquisitions. Significant upside could result from broader hyperscaler adoption; significant downside could follow an AI capex slowdown.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Credo Technology Group didn't make the cut. Grab the names FREE today.
Key Takeaways Credo expects AECs to remain a key growth driver as AI clusters demand reliable, power-efficient connectivity.CRDO says ZeroFlap AECs offer up to 1,000x greater reliability while using significantly less power.Credo expects over 80% fiscal 2027 revenue growth, with AECs supporting its copper portfolio expansion. Credo Technology Group Holding Ltd (CRDO - Free Report) continues to see Active Electrical Cables (AECs) as one of its primary growth drivers, supported by increasing demand for reliable and power-efficient connectivity in AI infrastructure. The company highlighted that as AI clusters expand, reliability and power efficiency have become major design considerations. As a result, AECs have become the preferred choice for in-rack connectivity and many multi-rack deployments extending up to seven meters.
Credo also stated that its ZeroFlap AECs deliver up to 1,000 times greater reliability than conventional laser-based optical modules while consuming significantly less power. In environments where network downtime can delay AI deployments and increase costs, the company believes network reliability has become increasingly important.
Credo reported continued customer adoption of its AEC portfolio across hyperscale and Neo cloud operators for both 100-gigabit-per-lane deployments and emerging 200-gigabit-per-lane applications. The company’s vertically integrated approach, spanning core SerDes technology, silicon, system-level solutions, firmware and telemetry software, supports its position as connectivity speeds and AI cluster complexity continue to increase. It also remains on track with its PCIe Gen 6 AEC family, where customer engagement and design activity continue to strengthen.
On the last earnings call, management highlighted that growth in its existing copper portfolio, led primarily by AECs along with retimers, is expected to support first-half fiscal 2027 performance. The company also stated that approximately half of its projected fiscal 2027 revenue growth is expected to come from its optical portfolio, while the remaining half is anticipated to be driven by its existing copper portfolio, predominantly AECs. Management further stated that AEC adoption is expanding across both hyperscalers and Neo cloud customers, with additional opportunities to deepen deployments across customer networks. Credo expects AECs to remain an important long-term contributor to the company's growth.
For fiscal 2027, management expects more than 80% year-over-year revenue growth. Management anticipates more than $600 million in optical revenues, with ZeroFlap optics, silicon photonics PICs and optical DSPs each contributing more than $100 million.
Taking a Look at CRDO’s CompetitorsBroadcom Corporation (AVGO - Free Report) is benefiting from rising AI semiconductor demand, led by custom XPUs and AI networking, while VMware continues to support infrastructure software growth. AI semiconductor revenues reached a record level in the fiscal second quarter, and management expects further growth in the fiscal third quarter, supported by multi-year commitments with core customers. Broadcom’s networking leadership, expanded XPU relationships and healthy free cash flow provide long-term growth support. Non-AI semiconductors are also showing signs of cyclical recovery. For the third quarter of fiscal 2026, Broadcom expects revenues of approximately $29.4 billion, indicating 84% year-over-year growth.
Marvell Technology (MRVL - Free Report) is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth for fiscal 2027. The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other areas are recovering as inventories normalize. Marvell expects fiscal 2027 revenues to grow about 40% year over year to nearly $11.5 billion and sees fiscal 2028 revenues rising about 45% to roughly $16.5 billion.
CRDO Price Performance, Valuation and EstimatesShares of CRDO are up 136.1% in the past three months compared with the Electronics-Semiconductors industry’s growth of 40.5%.
Image Source: Zacks Investment Research
Regarding the forward 12-month price/sales ratio, CRDO is trading at 17.75, higher than the industry’s multiple of 8.99.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CRDO earnings for fiscal 2026 has been revised up over the past 60 days.
Image Source: Zacks Investment Research
CRDO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolent Health, Inc (EVH - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, EVH's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
EVH has rallied 30.4% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates EVH could be poised for a breakout.
Looking at EVH's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 2 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting EVHon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
New York, New York--(Newsfile Corp. - July 3, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of FS KKR Capital Corp. (NYSE: FSK) between May 8, 2024 and February 25, 2026, inclusive (the "Class Period"), of the important July 6, 2026 lead plaintiff deadline.
SO WHAT: If you purchased FS KKR Capital securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the FS KKR Capital class action, go to https://rosenlegal.com/submit-form/?case_id=64089 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 6, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) FS KKR Capital overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies; (2) FS KKR Capital overstated the valuation of its portfolio investments and/or overstated the effectiveness of FS KKR Capital's portfolio valuation process; (3) FS KKR Capital overstated the durability of its quarterly distribution strategy; and (4) as a result of the foregoing, defendants' positive statements about FS KKR Capital's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the FS KKR Capital class action, go to https://rosenlegal.com/submit-form/?case_id=64089 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303886
Source: The Rosen Law Firm PA
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Tenet Healthcare (THC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Tenet currently has an average brokerage recommendation (ABR) of 1.39, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.39 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 16 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.7% and 13.6% of all recommendations.
Brokerage Recommendation Trends for THC
Check price target & stock forecast for Tenet here>>>
While the ABR calls for buying Tenet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is THC Worth Investing In?In terms of earnings estimate revisions for Tenet, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $17.61.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Tenet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Tenet.
NEW YORK--(BUSINESS WIRE)--Madison Square Garden Sports Corp. (“MSG Sports”) Executive Chairman and CEO James L. Dolan announced today that Quentin Dolan has been named President, Chief Operating Officer, and Alternate Governor of the New York Rangers, effective immediately. Quentin Dolan most recently served as Senior Vice President, Player Performance and Science Leader, an area he will continue to oversee for both the Rangers and Knicks organizations.
As President, Chief Operating Officer, and Alternate Governor, Quentin Dolan will assume a key role in the day-to-day Ownership responsibilities of the Rangers and its AHL affiliate, the Hartford Wolf Pack. In this role, he will work closely on overall team direction and strategy with Rangers President and General Manager Chris Drury, who will continue to manage the hockey operations of the organization and lead all hockey decision making. Quentin Dolan will report into MSG Sports Executive Chairman and CEO, James L. Dolan, who will be stepping back from day-to-day responsibilities with the Rangers, and Rangers President and General Manager Chris Drury will report into Quentin Dolan.
“Since his arrival overseeing our Player Performance and Science department, Quentin has made a strong impact on the Rangers and Knicks organizations, and we are pleased that he will step into this elevated position,” said James L. Dolan, Executive Chairman and CEO, MSG Sports. “Quentin has quickly become an incredibly valued member of the Rangers franchise and played a key role behind the scenes with the Knicks during their championship run this past season. I look forward to seeing the positive influence he can make in this expanded and critical role.”
“I’ve always had a tremendous respect and admiration for the New York Rangers organization, it’s been a part of my life for as long as I can remember,” said Quentin Dolan. “I’m honored to have this opportunity to ensure our hockey operations staff, coaches, and players have all the support they need to provide our fans a product they can be proud of. I’m looking forward to immediately getting to work with Chris Drury, Mike Sullivan, and the entire staff.”
“Quentin and I have worked together for several years, and I believe him taking on this role will only make the Rangers organization stronger,” said Chris Drury. “The front office and coaching staff will be working in unison with Quentin in all key areas of our team in an effort to put this franchise in the best position possible to compete for a Stanley Cup.”
In his most recent position as SVP, Player Performance and Science Leader, Quentin Dolan built and led the performance science and player development infrastructure across both the Rangers and Knicks. This included overseeing medical, strength and conditioning, nutrition, mental performance, and performance data operations for both franchises. He joined MSG Sports in 2022, and his previous roles at the Company have included serving as Vice President, Strategic Advisor to the Executive Chairman and as Investment Director. He has also served on MSG Sports' Board of Directors since 2021.
Prior to MSG Sports, Quentin Dolan's experience includes roles with Grubman Shire & Meiselas, P.C. and Azoff MSG Entertainment, LLC. He has also been an advisor to several research and product development projects in the areas of sports performance and biotech.
Quentin Dolan is a graduate of New York University with a bachelor's degree in Sports and Event Management.
About Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (MSG Sports) is a leading professional sports company, with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL), as well as two development league teams – the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL). MSG Sports also operates a professional sports team performance center – the MSG Training Center in Greenburgh, NY. More information is available at www.msgsports.com.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Acuity (AYI - Free Report) Headquartered in Atlanta, GA, Acuity, Inc. is the parent company of Acuity Brands Lighting, Inc. and other subsidiaries. The company manufactures and distributes lighting fixtures and related components that comprise devices such as luminaries, lighting controls, and controllers for various building systems, power supplies, prismatic skylights, and drivers, as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications.
AYI is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Business Services stock. AYI has a Momentum Style Score of A, and shares are up 16.6% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $19.63 per share. AYI boasts an average earnings surprise of +4.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AYI should be on investors' short list.
Když se investovalo do akcií Společností jižních moří, nebo do Východoindických společností, znamenalo to sázku na mnohaleté plavby lodí do Evropany mnohdy neprobádaných krajů. Rizik byla celá řada, vlastně bychom technicky měli hovořit spíše o obrovské nejistotě než o nějakém kvantifikovatelném riziku. Na jednu stranu tak mohla u těchto firem existovat jasná touha nějak odhadnout hodnotu jejich akcií. Na stranu druhou šlo o cvičení ve finance fiction. Stejně, jako nyní u SpaceX. Dnes se více do detailu podíváme, jak to uchopili v Ark Invest (nedávno jsme se dívali na související úvahy Aswatha Damodarana).
Ark zhruba před rokem odhadla hodnotu celé společnosti SpaceX na 2,5 bilionu dolarů. V medvědím scénáři na 1,7 a v býčím na 3,1 bilionů dolarů. Nyní je pro hrubý kontext kapitalizace firmy na 2,13 bilionech dolarů, dlouhodobé dluhy by měly dosahovat 29 miliard dolarů. Nevím, zda Ark Invest interně svou valuaci od té době nezměnila, ale zaměřit se chci hlavně na to, jak vlastně hodnotu této firmy vesmírných moří odhadla. Klíčovým slovem je tu tzv. Monte Carlo simulace.
O MC simulaci se hovoří již řadu desetiletí, v praxi jí ale zase tak často nevidíme. IBM má na svých stránkách následující definici této metody: „Je to matematicko-statistická metoda, která využívá náhodné vstupy k modelování možných výsledků v situacích zatížených nejistotou. Místo jednoho pevného odhadu provádí tisíce až statisíce iterací s náhodnými hodnotami, čímž vytváří pravděpodobnostní škálu možných scénářů a rizik.“ V praxi by to v tomto konkrétním případě mělo podle mne znamenat, že simulace projede širokou škálu scénářů týkajících se různých velikostí potenciálních trhů, podílů na něm, tržeb, nákladů a investic. Z toho vyjdou ony scénáře týkající se toho, jakou hotovost může SpaceX generovat svým akcionářům a to už přímo ukazuje na hodnotu společnosti.
Ark konkrétně počítá s tím, že cca od roku 2035 budou stále větší hodnotu společnosti generovat aktivity spojené s Marsem, do té doby to budou aktivity kolem vesmírného prostoru Země. Konkrétně: „SpaceX nejdříve staví rakety a satelity, získává zákazníky Starlinku a sem reinvestuje vydělané peníze. Jak cyklus pokračuje, finanční prostředky stále více proudí k rozvoji Marsu. Po dokončení konstelace Starlink předpokládáme, že SpaceX tuto konstelaci udržuje a ještě zvýší své investice do Marsu. Každá raketa směřující k této planetě nese kombinaci humanoidních robotů Optimus a souvisejícího materiálu“.
K tomu v Ark Invest dodávají: „Musk založil SpaceX s cílem vytvořit multiplanetární život. Konkrétně umožnit lidem obsadit Mars. Podle našeho názoru Elon vyvíjí roboty Optimus a stroje Boring Company, aby vybudoval infrastrukturu pro náročná mimozemská prostředí a podpořil kolonizaci Marsu. Podle našeho výzkumu bude Mars v průběhu času tvořit rostoucí část hodnoty SpaceX. Související peněžní tok bude mnohem více spekulativní než tok spojený se Starlinkem.“
Rizika jsou popsána následovně: „Vesmír je ze své podstaty náročným prostředím s významným rizikem realizace. Pokud se lodím Starship nepodaří dosáhnout rychlé opětovné použitelnosti, mohlo by to mít významný dopad na námi odhadovanou hodnotu společnosti. Neexistuje také žádná záruka, že Optimus bude skutečně schopen podporovat rozvoj infrastruktury v predikovaném časovém rámci. Vzhledem k časovým omezením meziplanetárních letů by pak každé zpoždění mohlo vést k významnému posunu v celkovém časovém harmonogramu. V neposlední řadě by zvýšená konkurence mohla snížit celkový adresovatelný trh pro širokopásmové připojení. A možná nestabilita vládních výdajů by mohla ovlivnit příjmy ze Starshield.“
Sprinklr (CXM - Free Report) closed the last trading session at $5.41, gaining 0.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $7.88 indicates a 45.7% upside potential.
The average comprises eight short-term price targets ranging from a low of $6.00 to a high of $12.00, with a standard deviation of $2.4. While the lowest estimate indicates an increase of 10.9% from the current price level, the most optimistic estimate points to a 121.8% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in CXM. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why CXM Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, three estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 4.6%.
Moreover, CXM currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CXM could gain, the direction of price movement it implies does appear to be a good guide.
Have you been paying attention to shares of Hanover Insurance Group (THG - Free Report) ? Shares have been on the move with the stock up 18.5% over the past month. The stock hit a new 52-week high of $221.7 in the previous session. Hanover Insurance has gained 21.3% since the start of the year compared to the 5.3% move for the Zacks Finance sector and the 3.2% return for the Zacks Insurance - Property and Casualty industry.
What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2026, Hanover Insurance reported EPS of $5.25 versus consensus estimate of $4.14.
For the current fiscal year, Hanover Insurance is expected to post earnings of $18.36 per share on $6.95 in revenues. This represents a -3.82% change in EPS on a 4.71% change in revenues. For the next fiscal year, the company is expected to earn $18.31 per share on $7.29 in revenues. This represents a year-over-year change of -0.32% and 4.76%, respectively.
Valuation MetricsThough Hanover Insurance has recently hit a 52-week high, what is next for Hanover Insurance? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hanover Insurance has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.2X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 10.4X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Hanover Insurance an interesting choice for value investors.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Hanover Insurance currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hanover Insurance meets the list of requirements. Thus, it seems as though Hanover Insurance shares could have potential in the weeks and months to come.
How Does THG Stack Up to the Competition?Shares of THG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Mercury General Corporation (MCY - Free Report) . MCY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Mercury General Corporation beat our consensus estimate by 62.79%, and for the current fiscal year, MCY is expected to post earnings of $11.38 per share on revenue of $6.38 billion.
Shares of Mercury General Corporation have gained 13.3% over the past month, and currently trade at a forward P/E of 9.71X and a P/CF of 11.94X.
The Insurance - Property and Casualty industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for THG and MCY, even beyond their own solid fundamental situation.
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Aaon (AAON - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Aaon is one of 93 companies in the Construction group. The Construction group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AAON's full-year earnings has moved 10.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, AAON has returned 41.1% so far this year. Meanwhile, the Construction sector has returned an average of 13.4% on a year-to-date basis. This shows that Aaon is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Cardinal (CDNL - Free Report) . The stock has returned 207.1% year-to-date.
The consensus estimate for Cardinal's current year EPS has increased 14.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aaon is a member of the Building Products - Air Conditioner and Heating industry, which includes 9 individual companies and currently sits at #87 in the Zacks Industry Rank. On average, this group has gained an average of 39.2% so far this year, meaning that AAON is performing better in terms of year-to-date returns.
In contrast, Cardinal falls under the Engineering - R and D Services industry. Currently, this industry has 23 stocks and is ranked #105. Since the beginning of the year, the industry has moved +31.8%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Aaon and Cardinal as they could maintain their solid performance.
Sterling Infrastructure (STRL - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this civil construction company have returned -29.5% over the past month versus the Zacks S&P 500 composite's -1.7% change. The Zacks Engineering - R and D Services industry, to which Sterling Infrastructure belongs, has lost 4.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Sterling Infrastructure is expected to post earnings of $5.20 per share for the current quarter, representing a year-over-year change of +93.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The consensus earnings estimate of $19.12 for the current fiscal year indicates a year-over-year change of +75.7%. This estimate has changed +1.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $25.83 indicates a change of +35.1% from what Sterling Infrastructure is expected to report a year ago. Over the past month, the estimate has changed +3.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Sterling Infrastructure.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Sterling Infrastructure, the consensus sales estimate for the current quarter of $1.07 billion indicates a year-over-year change of +74%. For the current and next fiscal years, $3.96 billion and $5.12 billion estimates indicate +59.2% and +29.1% changes, respectively.
Last Reported Results and Surprise HistorySterling Infrastructure reported revenues of $825.67 million in the last reported quarter, representing a year-over-year change of +91.6%. EPS of $3.59 for the same period compares with $1.63 a year ago.
Compared to the Zacks Consensus Estimate of $585.36 million, the reported revenues represent a surprise of +41.05%. The EPS surprise was +56.77%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Sterling Infrastructure is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Sterling Infrastructure. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Key Takeaways MasTec ended the first quarter with record backlog growth, supported by a 1.4x book-to-bill ratio.MTZ raised its 2026 revenue outlook to $17.5 billion, reflecting healthy demand across key end markets.MasTec's diversified projects span power, clean energy, communications and pipeline infrastructure. MasTec, Inc. (MTZ - Free Report) is strengthening revenue visibility through a growing pipeline of infrastructure projects across communications, power delivery, clean energy and pipeline markets. Strong demand across these end markets is improving the company's ability to sustain revenue growth while providing greater confidence in its long-term outlook.
The first quarter ended with backlog reaching a record $20.3 billion, up 28% year over year and $1.4 billion sequentially, supported by a 1.4x book-to-bill ratio. Growth was broad-based rather than dependent on a single business, with Power Delivery and Clean Energy & Infrastructure adding more than $600 million and $770 million, respectively, to sequential backlog.
Communications also reached another record backlog level, while pipeline opportunities extended beyond signed contracts, providing additional visibility into future work. The stronger project pipeline also supported higher full-year expectations, with MasTec increasing the 2026 revenue outlook to $17.5 billion from approximately $17 billion, implying 22% year-over-year growth as demand remained healthy across its end markets.
Beyond the size of the backlog, its composition adds to the company's growth outlook. Demand is being supported by long-term investment in AI-driven data centers, grid modernization, broadband expansion, natural gas infrastructure and other critical infrastructure projects rather than short-term spending cycles.
A diversified mix of projects across multiple end markets reduces dependence on any single business while creating multiple avenues for future revenue generation. With record backlog levels, favorable industry trends and an improved revenue outlook, MasTec appears well positioned to convert its expanding project pipeline into stronger revenue growth over the coming quarters.
How Does MasTec Compare With Infrastructure Peers?MasTec has built a diversified infrastructure platform spanning communications, power delivery, clean energy, pipeline and data center construction, positioning it to benefit from long-term investment across multiple end markets. As investors evaluate the company's growth prospects, comparisons with Quanta Services, Inc. (PWR - Free Report) and EMCOR Group, Inc. (EME - Free Report) provide additional perspective on the competitive landscape.
Quanta remains one of MasTec's closest peers in utility and energy infrastructure. The company ended the first quarter with a record backlog of $48.5 billion, up from $35.3 billion a year ago. Quanta’s 12-month backlog increased 45.4% to $28.2 billion, reinforcing strong multiyear revenue visibility. The backlog is supported by continued investment in grid modernization, transmission expansion, electrification and AI-driven power demand.
EMCOR is also benefiting from healthy project demand across electrical and mechanical construction, mission-critical facilities and network communications. As of March 31, EMCOR’s remaining performance obligations increased 32.9% year over year to $15.62 billion, providing greater visibility into future revenue while reflecting broad-based demand across data centers, industrial projects and commercial construction.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 60.6% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 35.62, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 60 days. The revised estimated figures for 2026 and 2027 imply 35.9% and 35.3% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: FactSet Research (FDS - Free Report) Headquartered in Norwalk, CT, FactSet Research Systems Inc. is a leading provider of integrated financial information, analytical applications and industry-leading service for the global investment community. Through its analytics, service, content, and technology, the company offers information to investment professionals like portfolio managers, wealth managers, research and performance analysts, risk managers, research professionals, investment research professionals, investment bankers, risk and performance analysts, wealth advisors and fixed income professionals. By integrating datasets and analytics across asset classes with client data, FactSet supports the workflow of both buy-side and sell-side clients. Through its wide application suite, FactSet offers tools and resources that include company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization and research management solutions. The company derives revenues from subscriptions to products and services such as workstations, analytics, enterprise data, research management, and trade execution.
FDS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. FDS has a Growth Style Score of B, forecasting year-over-year earnings growth of 4.4% for the current fiscal year.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $17.72 per share. FDS boasts an average earnings surprise of +1.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FDS should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways ACHR expands flight testing to validate aircraft systems and support regulatory certification.ACHR advances Midnight certification through compliance, testing and system validation activities.ACHR certification progress supports future aircraft deliveries and commercial deployment plans. Archer Aviation Inc. (ACHR - Free Report) continues prioritizing safety as it advances the development of its Midnight electric aircraft. The company is designing the aircraft with multiple layers of redundancy across flight-critical systems, helping enhance operational reliability while supporting certification and future commercial operations. This safety-focused approach is expected to strengthen Archer's position in the emerging electric aircraft market.
Redundant aircraft systems play an important role in next-generation aviation by helping maintain safe operations in the event of individual component failures. Archer's Midnight aircraft incorporates redundancy across key flight systems, including propulsion, power and flight-control architecture. These design features are intended to improve overall system reliability while supporting compliance with stringent aviation safety standards.
The company's emphasis on safety also complements its broader aircraft development strategy. By integrating redundant systems into the aircraft from the design stage, Archer aims to strengthen operational resilience while enhancing future passenger confidence and commercial adoption. This approach positions ACHR to meet evolving regulatory and customer expectations as electric aircraft enter commercial service.
As the electric aircraft industry continues to mature, safety-focused design is expected to remain a key competitive differentiator. Archer's continued investment in redundant aircraft architecture strengthens its long-term growth prospects while supporting the commercialization of its Midnight platform.
Companies Advancing Safety-Focused Aircraft DesignElectric aircraft developers continue strengthening aircraft safety through redundant flight-critical systems and resilient vehicle architectures. Companies like Joby Aviation, Inc. (JOBY - Free Report) and Vertical Aerospace Ltd. (EVTL - Free Report) are also advancing capabilities in this area.
Joby Aviation is developing its electric aircraft with multiple redundant flight-critical systems designed to support safe, reliable and certifiable commercial operations.
Vertical Aerospace is incorporating redundant propulsion, power and flight-control systems into its electric aircraft to enhance operational reliability and support aircraft certification.
Earnings Estimates for ACHR StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests a year-over-year decline of 61.90% and growth of 7.51%, respectively.
Image Source: Zacks Investment Research
ACHR Stock Is Trading at a DiscountArcher is trading at a discount relative to the industry, with a trailing 12-month price-to-book of 1.82X compared with the industry average of 6.31X.
Image Source: Zacks Investment Research
ACHR Stock Price PerformanceOver the past three months, ACHR shares have fallen 10.1% against the industry’s 1.2% growth.
Image Source: Zacks Investment Research
ACHR’s Zacks RankArcher currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Organon (OGN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this pharmaceutical company have returned +1.1%, compared to the Zacks S&P 500 composite's -1.7% change. During this period, the Zacks Medical Services industry, which Organon falls in, has gained 14.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Organon is expected to post earnings of $0.87 per share, indicating a change of -13% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $3.37 for the current fiscal year indicates a year-over-year change of -7.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $3.61 indicates a change of +7% from what Organon is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Organon.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Organon, the consensus sales estimate of $1.54 billion for the current quarter points to a year-over-year change of -3.3%. The $6.11 billion and $6.14 billion estimates for the current and next fiscal years indicate changes of -1.6% and +0.4%, respectively.
Last Reported Results and Surprise HistoryOrganon reported revenues of $1.46 billion in the last reported quarter, representing a year-over-year change of -3.5%. EPS of $0.71 for the same period compares with $1.02 a year ago.
Compared to the Zacks Consensus Estimate of $1.47 billion, the reported revenues represent a surprise of -0.48%. The EPS surprise was -14.46%.
Over the last four quarters, Organon surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Organon is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Organon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Host Hotels (HST - Free Report) Bethesda, MD-based Host Hotels & Resorts Inc., one of the leading lodging real estate investment trusts (REITs), engages in the ownership, acquisition, and redevelopment of luxury and upper-upscale hotels in the United States and abroad. It is an S&P 500 Index company.
HST is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.96; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $2.13 per share. HST boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HST should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways Cboe Global stock is down 0.8% year to date, outperforming the industry but lagging the sector.Management raised its 2026 organic total net revenue outlook to low double-digit to mid-teens growth.Cboe Global has raised its dividend for 15 straight years and has $569.4M left for buybacks. Shares of Cboe Global Markets (CBOE - Free Report) have lost 0.8% year to date, outperforming the industry. It, however, lagged the sector as well as the Zacks S&P 500 composite.
Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. As global capital markets continue to become increasingly electronic and data-driven, CBOE is well-positioned to capitalize on secular trends in trading volumes, demand for market data, and the expansion of index-based investing.
CBOE vs Industry, Sector, S&P 500 YTD
Image Source: Zacks Investment Research
Shares of Nasdaq Inc (NDAQ - Free Report) have lost 13% year to date, while those of Intercontinental Exchange (ICE - Free Report) have lost 19.8% in the same time frame.
CBOE Shares Are AffordableThe stock is overvalued compared with its industry. It is currently trading at a forward price-to-earnings multiple of 18.05, lower than the industry average of 18.16 and the median of 21.71 over five years.
Image Source: Zacks Investment Research
CBOE is relatively cheap compared to Nasdaq but expensive compared to Intercontinental Exchange.
The Case for CBOE StockCboe Global Markets holds a dominant position in the U.S. listed options market through its ownership of multiple options exchanges, consistently maintaining the industry's leading market share.
The company has also built a diversified business through acquisitions and international expansion. Its portfolio now includes European equities and derivatives exchanges, foreign exchange trading venues and clearing infrastructure, reducing reliance on any single asset class or region. In addition, recurring revenues from proprietary market data, index licensing and technology solutions provide stability during periods of weaker trading activity. These businesses generate attractive margins and benefit from high customer switching costs.
Strong trading activity across index options, European equities and foreign exchange continues to drive transaction fee growth, while its Data Vantage business is expanding high-quality recurring revenues. Reflecting this momentum, management raised its 2026 organic total net revenue growth outlook to the low double-digit to mid-teens range and increased its Data Vantage organic growth target to low double digits.
Cboe Global is further strengthening its long-term growth profile through strategic acquisitions and investments that expand its global footprint, product portfolio and capital markets infrastructure. The company is also investing in digital assets, carbon markets and next-generation trading technologies while introducing innovative derivatives products to meet evolving client demand.
At the same time, management is optimizing its portfolio and cost structure. The company has agreed to divest its Canada and Australia exchanges and expects these actions to reduce adjusted operating expenses in 2026, improving overall efficiency.
The company's disciplined capital allocation supports strategic investments while maintaining a strong balance sheet and robust free cash flow generation. Cboe Global has increased its dividend for 15 consecutive years and has $569.4 million remaining under its existing share repurchase authorization, underscoring its commitment to returning capital to shareholders.
Cboe Global’s Growth ProjectionsThe Zacks Consensus Estimate for 2026 revenues indicates a 13.1% year-over-year increase, while that for earnings suggests a 25.2% year-over-year decline. The consensus estimate for 2027 revenues indicates a 2.8% year-over-year increase, while that for earnings suggests an increase of 5.6% year over year.
The expected long-term earnings growth rate is pegged at 16.8%, better than the industry average of 12.2%. It has a Growth Score of A.
Optimist Analyst Sentiment on CBOEThe consensus estimate for 2026 and 2027 earnings has moved 1.2% and 1.4% north, respectively, in the past 30 days, reflecting analysts' optimism.
Image Source: Zacks Investment Research
The consensus estimate for 2026 earnings of Nasdaq and Intercontinental Exchange has moved north in the past 30 days.
Parting Thoughts on CBOE SharesA diversified business mix with recurring revenues, accelerated growth banking on recurring non-transaction revenues, use of technology and prudent buyouts poise CBOE well for growth. Its VGM Score of B instills confidence.
Given affordable valuation, solid growth projections and optimistic analyst sentiment, it’s time to add this Zacks Rank #1 (Strong Buy) stock to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Outfront Media (OUT - Free Report) Headquartered in New York, OUTFRONT Media Inc. is a leading provider of out-of-home (OOH) advertisement space in key U.S. markets. With billboard and transit displays, the company provides advertising structures and sites to diverse industries across the largest markets in the United States. Its inventory consists of billboard displays primarily located on heavily traveled highways and roadways in top Nielsen Designated Market Areas and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the United States. The company has displays in approximately 120 markets across the United States, including the 25 largest markets. As of Dec. 31, 2025, the company had approximately 19,100 lease agreements with approximately 17,500 different landlords.
OUT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.57; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $2.26 per share. OUT also boasts an average earnings surprise of +12.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, OUT should be on investors' short list.
Not every great investment story comes from a household name. Sometimes the best opportunities are found in overlooked industrial and healthcare companies quietly benefiting from long-term trends that could drive years of steady growth. Let's look at three of them today.
Image source: Getty Images.
1. Enovis Enovis (ENOV +12.28%) makes orthopedic reconstruction implants and surgical instruments. This is the hardware that goes into shoulder, hip, and knee replacement procedures. That is a market with a long, demographic-driven runway: An aging U.S. population that is more active and less willing to live with joint pain than any prior generation.
What Enovis is doing right now is building its reconstructive segment at a pace that the Prevention & Recovery side of the business doesn't fully reflect in the stock price. Reconstructive sales grew 11% in Q1 2026 while full-year guidance for 4% to 6% organic growth was reaffirmed. The company completed the acquisition of LimaCorporate in 2024, adding a complementary hip and knee portfolio that broadens its geographic reach in Europe.
Eleven analysts cover Enovis with a Strong Buy consensus and an average price target of $42 -- roughly 91% above today's $22.
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2. Insteel Industries Insteel Industries (IIIN 1.38%) is the largest domestic manufacturer of steel wire reinforcing products for concrete construction -- the pre-stressed strand that goes inside highway bridges, data center slabs, and commercial parking structures.
Roughly 90% of its revenue comes from nonresidential and infrastructure construction, which means Insteel's demand profile is shaped by government infrastructure spending and hyperscaler data center build-outs rather than the housing market most people associate with building materials.
The Infrastructure Investment and Jobs Act continues to disburse funds through 2027, and data center construction permits reached record levels in Q1 2026. Insteel reported Q2 sales that were up 7.5% year over year. This is a safe growth story that is getting told, which is precisely why the stock trades where it does.
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3. Mueller Water Products Mueller Water Products (MWA 0.56%) makes the valves, hydrants, and flow control systems that move water through municipal distribution networks. That is about as unsexy as industrial manufacturing gets, and it is also one of the most durable, non-cyclical businesses in the sector.
In Q2, Mueller posted net sales up 4.6% year over year and reaffirmed its full-year guidance. The real tailwind here is the $55 billion earmarked for water infrastructure in the Infrastructure Investment and Jobs Act, which is funding the replacement of lead pipes and aging distribution mains across the country.
Beyond the federal tailwind, Mueller benefits from a structurally captive customer base. These are municipalities and townships that don't shop around for the cheapest valve when they're replacing critical water infrastructure; they buy from proven suppliers with long track records and established distribution relationships. Mueller has spent decades building exactly that kind of embedded position, which shows up in pricing power and margins that held up even through inflationary input cost pressures.
For investors seeking industrial exposure without the volatility of cyclical end markets, this ticker offers something rare and valuable in my opinion: a business whose demand is driven by necessity and funded by government mandates rather than discretionary capital budgets.
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4. Proto Labs Proto Labs (PRLB 2.97%) is a technology-enabled custom parts manufacturer that turns CAD files into machined, injection-molded, or 3D-printed components in days rather than weeks. That speed matters in industries like aerospace, medical devices, and robotics, where product development cycles are continually compressed.
The company is in the middle of a strategic pivot away from pure prototyping toward production-grade manufacturing for short-run customers, an addressable market that is multiples larger. At $80 and a market capitalization of $1.2 billion, Proto Labs is priced to reflect uncertainty around that transition rather than its outcome.
What gets overlooked in the prototyping-to-production narrative is that Proto Labs already has the customer relationships with engineers who used the platform to build prototypes, and are the same engineers who specify suppliers when a product moves to short-run production.
This means the company doesn't need to win new customers so much as deepen existing ones. That built-in conversion funnel is a significant advantage over competitors entering the short-run manufacturing space from scratch, where trust and a proven track record of quality are table stakes.
If management executes even moderately well on the pivot, the current $80 price will look like the market has mistaken a transition for a decline.
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Burlington Stores (BURL - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Burlington Stores is a member of our Retail-Wholesale group, which includes 187 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Burlington Stores is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BURL's full-year earnings has moved 3.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, BURL has returned 8.4% so far this year. At the same time, Retail-Wholesale stocks have gained an average of 0%. This means that Burlington Stores is outperforming the sector as a whole this year.
Another stock in the Retail-Wholesale sector, Casey's General Stores (CASY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 44.3%.
Over the past three months, Casey's General Stores' consensus EPS estimate for the current year has increased 4.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Burlington Stores belongs to the Retail - Discount Stores industry, which includes 7 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, this group has gained an average of 9.4% so far this year, meaning that BURL is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Casey's General Stores falls under the Retail - Convenience Stores industry. Currently, this industry has 2 stocks and is ranked #28. Since the beginning of the year, the industry has moved +42.9%.
Burlington Stores and Casey's General Stores could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.
Key Takeaways Guidewire benefits as P&C insurers modernize legacy systems and shift core workflows to cloud.GWRE closed 11 cloud deals in Q3 fiscal 2026, including two net-new core system wins.ProNavigator and PricingCenter gained traction, but services mix and execution remain in focus. Guidewire Software, Inc. (GWRE - Free Report) is benefiting from insurer modernization, cloud migration and broader AI adoption across the property and casualty insurance market.
The story is not one-sided. Subscription-led growth is improving the model, but implementation intensity, services mix and execution demands still shape the stock’s risk-reward balance.
Why Guidewire Benefits From Insurer ModernizationP&C insurers continue to move away from legacy systems and toward cloud-based platforms that can support policy, billing, claims, pricing and underwriting workflows. Guidewire sits directly in that shift, with its cloud platform positioned as a core operating system for insurers.
In third-quarter fiscal 2026, Guidewire closed 11 cloud deals, including two net-new core system wins. The wins included a seven-year expansion with Auto Club of Southern California, a strategic net-new cloud win with Bradesco Seguros in Brazil, a U.K. ClaimCenter selection and a PolicyCenter win at a large U.S. insurer.
SAP SE (SAP - Free Report) remains relevant in the broader enterprise software market and is listed among Guidewire’s competitive landscape in software serving P&C insurers. Oracle Corporation (ORCL - Free Report) , with its cloud applications and platform services, is another useful reference point for investors tracking enterprise cloud migration across regulated industries.
How GWRE Is Building AI Into Daily WorkflowsGuidewire’s AI push is becoming more practical through ProNavigator. The company completed five ProNavigator deals in the third quarter as insurers looked to embed AI-driven knowledge and workflow automation into core operations.
The product is designed to provide role-specific, secure and context-aware AI guidance for underwriters, claims adjusters, billing specialists and customer service representatives. That matters because it extends Guidewire’s relevance beyond system replacement and into daily decision support.
AI is also influencing implementation work. Management has cited productivity gains from agentic development tools, which could help reduce friction in cloud migrations and speed delivery over time.
Where Guidewire’s Services Trend Cuts Both WaysServices revenue rose 32% year over year to $71.8 million in the third quarter. That growth reflects demand for Guidewire-led services programs, field engineering work and support for customers using Guidewire Cloud Platform.
The trade-off is margin mix. Services carried a non-GAAP gross margin of 14.3% in the quarter, compared with 74.1% for subscription and support. Higher services demand can signal healthy implementation activity, but it can also dilute the benefits of subscription-led growth.
For fiscal 2026, Guidewire expects services revenues of about $270 million and services gross margin of about 14%. A larger services revenue mix and higher bonus accrual partially offset the benefit from raised revenue expectations.
What Pricing Tools Mean for Guidewire’s Next PhasePricingCenter gives Guidewire another route into data-driven insurance workflows. The solution helps P&C insurers update pricing, analyze impacts in real time and respond to market changes.
Guidewire closed three PricingCenter wins in the third quarter, including deals with insurers in Sweden and Poland and its first U.S. win at Oklahoma Farm Bureau. The early traction supports the view that Guidewire can expand deeper into pricing and product teams.
Still, newer products must scale efficiently. PricingCenter and ProNavigator broaden the platform opportunity, but the company still needs to prove that adoption can grow without adding delivery complexity or weakening unit economics.
How Zacks Signals Reflect GWRE’s Trend BalanceGuidewire’s growth story is becoming broader, but not simpler. Cloud migrations remain the main engine, while ProNavigator and PricingCenter add new ways for insurers to use Guidewire inside daily workflows. At the same time, the rise in services demand shows that modernization still requires meaningful implementation support, keeping margin mix and execution discipline in focus.
GWRE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a Value Score of F, Growth Score of B, Momentum Score of F and VGM Score of D. The Growth Score of B fits a company delivering double-digit ARR and subscription growth, but the weaker Value, Momentum and VGM readings point to a less favorable overall style profile.
For investors, that combination supports a measured view: Guidewire is participating in durable insurance technology trends, but the stock still needs cleaner evidence that newer products, cloud scale and services demand can translate into more efficient long-term growth.
Key Takeaways Guidewire benefits from insurers shifting to cloud-based core systems and recurring revenue growth.GWRE ended Q3 fiscal 2026 with ARR of $1.147B, up more than 19%, and kept ARR guidance intact.Subscription and support revenue rose 34.6%, helping lift margins and non-GAAP operating income. Guidewire Software, Inc. (GWRE - Free Report) is benefiting from insurers’ shift to cloud-based core systems, with recurring revenue growth and better profitability supporting the investment case.
The stock’s setup is still balanced. Large-deal timing, services mix, rising costs and the need to scale newer AI products without adding complexity remain key offsets.
Why GWRE Still Centers on Cloud ConversionGuidewire serves property and casualty insurers with software for core operations, digital engagement, analytics, machine learning and AI. Its main cloud offerings include InsuranceSuite Cloud and InsuranceNow, both central to insurer modernization projects.
Cloud migration remains the main growth engine. In third-quarter fiscal 2026, Guidewire closed 11 cloud deals, including two net-new core system wins. Wins included a seven-year extension and DWP expansion with Auto Club of Southern California, a strategic net-new win with Bradesco Seguros in Brazil and selections by insurers in the United Kingdom and the United States.
SAP SE (SAP - Free Report) is relevant to this discussion because SAP offers insurance software solutions for data-driven decisions, AI and compliance needs. Salesforce, Inc. (CRM - Free Report) also fits the broader software context through its financial-services software and CRM offerings for customer engagement
How Guidewire Is Turning ARR Into VisibilityAnnual recurring revenue remains one of the clearest measures of Guidewire’s cloud transition. ARR ended the third quarter at $1.147 billion, up more than 19% year over year.
Management maintained fiscal 2026 ARR guidance of $1.229-$1.237 billion, implying 18%-19% year-over-year growth. Fully ramped ARR continued to grow faster than reported ARR, giving investors a better view of contract value that has not yet fully flowed into reported ARR.
Where GWRE Is Finding Margin ImprovementSubscription and support revenue is now doing more of the heavy lifting. In the fiscal third quarter, subscription and support revenues rose 34.6% year over year to $244.7 million, representing 65.7% of total revenues.
Image Source: Zacks Investment Research
Profitability is improving with scale. Non-GAAP subscription and support gross margin increased to 74% from 71% a year earlier, while overall non-GAAP gross margin expanded to 66.4% from 65.5%. Non-GAAP operating income rose to $77.8 million from $46.1 million in the year-ago quarter.
What Guidewire Must Prove on New ProductsProNavigator and PricingCenter are becoming the next layer of the story. Guidewire completed five ProNavigator deals in the third quarter as insurers looked to add AI-driven knowledge and workflow automation to insurance operations.
PricingCenter also gained traction, with three wins, including insurers in Sweden and Poland and the first U.S. win at Oklahoma Farm Bureau. These products can deepen customer relationships beyond core systems, but Guidewire still must scale them without adding delivery complexity or weakening economics.
How Zacks Signals Fit GWRE’s Balanced SetupThe bottom line on GWRE is that the company is executing well where investors need it most: cloud adoption, ARR expansion and margin improvement. At the same time, the stock’s outlook is not without friction, as large cloud deals can shift between quarters and newer offerings such as ProNavigator and PricingCenter still need to scale efficiently.
GWRE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GWRE has a Value Score of F, Growth Score of B, Momentum Score of F and VGM Score of D. The Growth Score reflects the company’s improving revenue profile, while weaker value and momentum marks suggest investors may want to watch execution, valuation and deal timing closely before taking a more aggressive stance.
For now, Guidewire’s cloud transition remains the core reason to stay engaged with the story. The next test is whether the company can convert its expanding platform, AI tools and pricing products into durable ARR growth without sacrificing the margin progress that has made the investment case more credible.
Viking Therapeutics (VKTX 0.32%) stock rose by 19.2% in June, according to data from S&P Global Market Intelligence. The move comes as optimism rises over the company's pipeline development program, notably in weight-loss drugs, and the initiation of a Phase 1 study in a new class of weight-loss drugs that offers a different mechanism from the current GLP-1/GIP class.
Viking Therapeutics and VK2735 Speaking of GLP-1/GIP class drugs, Viking's lead drug candidate, VK2735, is a GLP-1/GIP agonist. It's part of a crowded field that includes blockbuster weight loss drugs from Eli Lilly (LLY +1.35%) and Novo Nordisk (NVO +3.29%).
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That said, VK2735 does have some distinguishing characteristics that mark it out from rivals. As previously discussed, VK2735 has demonstrated a steeper rate of weight loss in the treated groups in Phase 2 clinical trials for both oral and injectable formulations. The hope is that Viking will demonstrate similar efficacy with no safety or tolerability issues in the ongoing Phase 3 trial for injectable VK2735, as well as in the Phase 3 trial for oral VK2735, which is due to start later this year. Investors will probably have to wait until 2027 and 2028, respectively, for the results of those trials.
The second major plus about VK2735 is that it's being developed as a dual-formulation therapy, with the potential for an initial injectable dose to achieve rapid weight loss, followed by an orally administered maintenance dose. In fact, Viking has an ongoing Phase 1 maintenance trial with initial results (for the 19-week injectable dose) due in the third quarter, followed by results for the oral maintenance dose, set for early 2027.
Investor optimism over these trials grew in June.
Image source: Getty Images.
Viking Therapeutics and VK3019 In addition, the company announced the initiation of a Phase 1 study of VK3019, an investigational dual amylin and calcitonin receptor agonist (DACRA). It represents a new class of drug with a different mechanism, and the trial is proof positive that Viking has more in its arsenal of weight-loss drugs than VK2735.
Where next for Viking Therapeutics History is littered with pharmaceutical companies that rode a wave of optimism only to disappoint investors, and that may happen again with Viking. That said, VK2735 clearly has a lot of potential, not least as an efficacious dual-formulation strategy, and if Phase 1 maintenance trial results are positive, investors will be more willing to price that potential in. Something for investors to hope for in 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Novo Nordisk. The Motley Fool recommends Viking Therapeutics. The Motley Fool has a disclosure policy.
Key Takeaways RF completed the acquisition of Frazer Lanier to expand municipal and corporate investment banking.RF expects capital markets revenue growth as the deal supports fee-based income and advisory capabilities.RF gains municipal finance expertise to strengthen bond issuance, debt placement and client services. Regions Financial Corporation (RF - Free Report) , the parent company of Regions Bank, completed the acquisition of The Frazer Lanier Company, marking another step in the bank’s efforts to expand its fee-based capital markets platform and strengthen its presence in municipal and corporate investment banking.
Frazer Lanier, a Montgomery, AL-based full-service investment banking firm specializing in municipal and corporate securities, will be integrated into Regions Bank’s capital markets division, which operates within the company’s Corporate Banking group. Financial terms of the transaction were kept under wraps.
What Frazer Lanier Buyout Means for RF’s Growth StrategyThe deal is important because it adds specialized municipal finance expertise to RF’s existing corporate banking and capital markets capabilities.
The acquisition comes at a time when RF is placing greater emphasis on fee-based revenue growth and capital markets expansion. In first-quarter 2026, the company reported non-interest income of $625 million, with capital markets revenues, excluding CVA/DVA, reaching $83 million, up 2.5% year over year. Management expects quarterly capital markets revenues to increase $90-$105 million, trending toward the lower end in the second quarter of 2026, with momentum building thereafter.
Against this backdrop, Frazer Lanier’s buyout represents a timely strategic addition. The deal enhances RF’s municipal finance platform, expands its investment banking talent base and strengthens its ability to offer integrated solutions to public-sector, corporate and institutional clients.
Founded in 1976, Frazer Lanier has built a strong franchise serving corporations, cities, counties and local boards, and has acted as an underwriter or placement agent for tax-exempt and taxable bonds for thousands of clients. By combining Frazer Lanier’s established municipal and corporate finance relationships with Regions Financial’s larger banking platform, the latter is better-positioned to capture additional opportunities in bond issuance, underwriting, debt placement and advisory services.
For RF, the move is more than a bolt-on acquisition. It is a targeted investment in higher-value advisory and financing capabilities within its Corporate Banking franchise. The addition of Frazer Lanier should help deepen client relationships, broaden fee-generating opportunities beyond traditional lending and support RF’s broader objective of diversifying revenues through growth in non-interest income businesses.
Regions Financial’s Price Performance & Zacks RankOver the past six months, RF shares have gained 7.1% compared with the industry’s 9.6% return.
Image Source: Zacks Investment Research
At present, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Moves by Other Financial FirmsLast month, U.S. Bancorp (USB - Free Report) completed its previously announced acquisition of BTIG, LLC. The acquisition aligns with USB’s broader strategy to deepen its capital markets capabilities and diversify fee-based revenue streams.
The BTIG acquisition is expected to provide incremental growth opportunities while supporting U.S Bancorp’s long-term revenue diversification strategy.
In May 2026, Hancock Whitney (HWC - Free Report) agreed to acquire OFB Bancshares, Inc., the parent company of One Florida Bank, in an all-cash transaction valued at $377.6 million. The deal marks a strategic expansion for HWC into the Orlando market, one of the fastest-growing large metro areas in the United States.
The acquisition will deepen Hancock Whitney’s presence across Florida and enhance its competitive scale against regional and super-regional banks.
The Consumer Products-Discretionary industry is navigating a mixed operating environment, with resilient consumer demand tempered by persistent macroeconomic uncertainty. Inflationary pressures have eased from their recent peaks, and consumer confidence has shown signs of stabilization. Still, households remain selective in their spending as elevated living costs, an uneven labor market and lingering interest-rate pressures continue to influence purchasing decisions. While higher-income consumers have largely remained resilient, lower and middle-income households are prioritizing value, leading to a bifurcated spending environment across discretionary categories.
Against this backdrop, companies are relying less on broad-based demand and more on execution to drive growth. Investments in omnichannel capabilities, AI-powered personalization, retail media, loyalty programs and supply-chain efficiencies are taking precedence. At the same time, companies continue to contend with promotional competition, tariffs and cautious inventory management, making pricing discipline and operational efficiency critical to protecting margins. As consumers gravitate toward brands that offer compelling value and convenience, industry players with strong digital ecosystems, diversified sourcing strategies and disciplined cost structures remain better positioned to outperform the broader consumer discretionary industry.
Central Garden & Pet Company (CENT - Free Report) , Alto Ingredients, Inc. (ALTO - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) and ACCO Brands Corporation (ACCO - Free Report) stand out as strong contenders in this evolving marketplace.
About the Industry The Consumer Products-Discretionary industry has a direct correlation with the economy, making it cyclical. Discretionary products command high prices, with middle-to-higher-income groups being the targeted customers. The industry comprises companies that offer product categories, including fashion, jewelry and watches, and other home and art products. Quite a few players develop, manufacture, market and sell over-the-counter health and personal care products. Some even manufacture and distribute party goods. Some companies design, source and distribute licensed pop culture products, too. Some industry participants also produce and distribute various products for the lawn and garden and pet supplies markets. Companies sell products to specialty retailers, mass-market retailers and e-commerce sites.
4 Key Trends to Watch in the Industry Consumers Remain Selective as Value Becomes the Primary Driver: Consumer spending remains resilient but selective as households continue to balance discretionary purchases against higher living costs, elevated borrowing expenses and lingering economic uncertainty. While easing inflation has provided some relief, shoppers remain value-conscious and are prioritizing essential and experience-led purchases. Promotional activity remains elevated across many retail categories, compelling companies to compete through sharper pricing, exclusive assortments and loyalty programs. Companies that successfully combine compelling value with differentiated merchandise and strong brand positioning are expected to be better placed to sustain demand.
Digital Innovation and AI Continue to Reshape Industry: Industry participants are accelerating investments in digital capabilities to improve customer engagement, operational efficiency and profitability. Artificial intelligence is increasingly being deployed across merchandising, pricing, inventory planning, customer service and personalized marketing, helping companies make faster and more informed decisions. Omnichannel strategies remain central to growth as consumers expect seamless shopping experiences across stores, websites and mobile platforms. Faster fulfillment, enhanced convenience and data-driven personalization are becoming key competitive advantages, allowing leading companies to strengthen customer loyalty while improving productivity and long-term margin potential.
Margin Expansion Depends on Operational Discipline: Although supply-chain disruptions have largely eased, industry players continue to face pressure from labor costs, tariffs, transportation expenses and ongoing technology investments. As a result, margin expansion will depend less on pricing and more on disciplined execution. Companies are focusing on inventory optimization, sourcing diversification, automation and expense control to improve profitability while limiting markdowns. Industry participants that maintain healthy inventory levels, strengthen supply-chain flexibility and preserve pricing discipline are likely to navigate cost pressures more effectively and deliver stronger earnings quality despite a challenging operating environment.
Brand Innovation to Fuel Growth: Consumer preferences continue to shift toward wellness, beauty, athleticwear and experience-driven spending, creating growth opportunities across select discretionary categories. At the same time, shoppers remain selective, with stronger demand concentrated among brands that offer clear value, innovation or premium differentiation. Companies with differentiated product portfolios, compelling merchandising and strong brand equity are expected to capture a larger share of consumer spending. Continued investments in customer experience and international expansion should further support long-term growth.
Zacks Industry Rank Indicates Bright Prospects The Zacks Consumer Products-Discretionary industry is a group within the broader Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #91, which places it in the top 37% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since the beginning of 2026, the industry’s earnings estimate has risen 5.3%.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Versus Broader Market The Zacks Consumer Products-Discretionary industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the Zacks S&P 500 composite over the past year.
The industry has advanced 4.5% over this period compared with the S&P 500’s rise of 22.8%. Meanwhile, the broader sector has fallen 16%.
One-Year Price Performance
Industry's Current Valuation Based on the forward 12-month price-to-sales (P/S), which is commonly used for valuing consumer discretionary stocks, the industry is currently trading at 3.16X compared with the S&P 500’s 5.05X and the sector’s 2.30X.
Over the last five years, the industry has traded as high as 14.10X and as low as 2.35X, with the median being at 3.00X, as the chart below shows.
Price-to-Sales Ratio (Past 5 Years)
4 Stocks to Watch Central Garden & Pet Company: Central Garden & Pet continues to strengthen its competitive position through a balanced portfolio of leading pet and garden brands, disciplined execution and a growing focus on innovation. The company is streamlining operations, enhancing distribution capabilities and investing in new products, digital initiatives and targeted acquisitions to drive sustainable, profitable growth. Supported by a resilient operating model, healthy customer relationships and a strong balance sheet, CENT remains well-positioned to capitalize on evolving consumer preferences and market opportunities. Its continued emphasis on operational excellence, strategic investments and portfolio optimization should support sustained long-term success.
The Zacks Consensus Estimate for Central Garden & Pet Company’s current financial-year EPS suggests growth of 5.9% from the year-ago period. CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 20.5% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: CENT
Alto Ingredients: Alto Ingredients is strengthening its long-term growth profile through a more diversified operating model, a disciplined cost structure and a growing focus on higher-value product streams. The company is investing in optimization projects, production efficiency, logistics infrastructure and carbon reduction initiatives while expanding opportunities tied to renewable fuels, biogenic CO2 and low-carbon incentives. Supported by operational improvements, strong capital discipline and a flexible asset base, Alto is well-positioned to capitalize on favorable industry trends and evolving market demand. Its continued emphasis on innovation, value-added products and strategic execution should reinforce its foundation for sustainable long-term growth.
This leading producer of specialty alcohols, renewable fuels and essential ingredients delivered a trailing four-quarter earnings surprise of 361.5%, on average. The Zacks Consensus Estimate for Alto Ingredients’ current financial-year sales and EPS calls for growth of 8.6% and 671.4%, respectively, from the year-ago period. Shares of this Zacks Rank #1 company have soared 348.4% over the past year.
Price and Consensus: ALTO
Lifetime Brands: Lifetime Brands continues to strengthen its market position through a portfolio of well-known kitchenware and home products brands, supported by disciplined pricing, operational efficiency and a steady pipeline of new product innovation. The company is benefiting from strong momentum in key categories, expanding brand partnerships, improving international operations and strategic investments in its distribution network, positioning it for enhanced profitability and growth. With a more diversified sourcing strategy, disciplined cost management and a healthy pipeline of acquisition opportunities, Lifetime is well equipped to navigate an evolving retail environment. Its continued focus on innovation, execution and operational excellence positions the company for sustained long-term success.
This global designer, developer and marketer of branded kitchenware, tableware and home solutions has a trailing four-quarter earnings surprise of 50%, on average. The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales suggests growth of 3.6% from the year-ago period. Shares of this Zacks Rank #1 company have rallied 57.7% over the past year.
Price and Consensus: LCUT
ACCO Brands: ACCO Brands is strengthening its long-term growth profile by expanding its presence in faster-growing technology peripherals while leveraging its portfolio of trusted workplace, gaming and computer accessory brands. The company is executing on strategic initiatives, including the integration of EPOS, new product innovation, cost optimization and footprint improvements, to enhance operational efficiency and support profitable growth. Supported by disciplined cost management, a diversified global footprint and a healthy product pipeline, ACCO is well-positioned to capitalize on evolving market opportunities and strengthen its competitive position. Its continued focus on innovation, strategic execution and portfolio transformation should support sustainable long-term growth and shareholder value creation.
The Zacks Consensus Estimate for ACCO Brands’ current financial-year sales and EPS suggests growth of 2.1% and 3.6%, respectively, from the year-ago period. ACCO delivered a trailing four-quarter earnings surprise of 33%, on average. Shares of this Zacks Rank #2 (Buy) company have risen 5.3% over the past year.
In the summer of 2025, nuclear energy stocks were having a moment. Indeed, if you had bought shares in the VanEck Uranium and Nuclear ETF on June 30 of last year and stayed invested until at least Oct. 15, your investment would have grown roughly 47% -- an astonishing return for an exchange-traded fund (ETF).
Mention of Oct. 15 in the above example isn't arbitrary. It was, in retrospect, the peak of enthusiasm for nuclear energy stocks. Indeed, if you had bought shares of the VanEck Uranium and Nuclear ETF on Oct. 15, 2025, and stayed invested until today, your investment would have lost about 30% of its original value by now.
Long-term NuScale Power (SMR 3.99%) investors have similarly witnessed a dismal drop in the value of this developer of small modular reactors (SMRs), to the tune of a 75% decline. The reason for this sell-off isn't complicated; it was always there for investors to glean. Here's what's going on with NuScale.
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NuScale stock raced ahead of its business The most obvious reason for NuScale's fall is that the company became one of Wall Street's favorite AI power stocks even before NuScale showed the market a commercial reactor. The company has, to put it plainly, never deployed an SMR for commercial use. Even though NuScale has beaten every other small reactor developer to the punch by certifying an SMR design first, that design hasn't materialized in the real world.
This fact has never been hidden from investors, but it might have been subdued against the background of artificial intelligence (AI) and data center construction. NuScale's strongest tailwind last year -- which is still blowing, just with less force -- was its potential to meet tech companies' and hyperscalers' demands for power, which are expected to surpass the traditional grid's capacities. However, that demand hasn't manifested in strong SMR sales for NuScale, which could be a few years from deploying even one.
Image source: Getty Images.
On top of that, enthusiasm for AI has also abated. Fears of an AI bubble -- which originally caused the mid-October peak in 2025 to crumble for nuclear energy stocks -- have made investors more selective about the stocks they pick for this trend. I wouldn't say nuclear energy, in general, is off the table. However, given the longer timelines for nuclear reactor projects, and the billions needed to build them, tech companies are going with other solutions -- like fuel cells from Bloom Energy -- that make demand for nuclear slightly less urgent.
It's "less urgent" for now, at least. If the world fills up with data centers, as Sam Altman once predicted, then nuclear could still unleash the $10 trillion market opportunity that Bank of America estimated it would hold.
Should you buy the dip on NuScale Power? NuScale has two projects in the works: one in Romania, and the other for the Tennessee Valley Authority (TVA). Right now, the "works" are pre-development -- mostly planning -- and they likely won't manifest anything concrete until the 2030s, assuming they proceed on schedule.
As such, investors should treat NuScale as an early-stage developer with growth potential over decades, not years. I would only recommend this stock for those who have an appetite for risk, as it's not clear where this stock will be a decade from now.
Key Takeaways Oklo received DOE approval for its DSA, advancing Groves into the final startup review phase.It targets July 2026 for the first criticality after readiness review, fuel loading and startup authorization.Oklo says Groves will support U.S. isotope production for medicine, research, manufacturing and security. Oklo Inc. (OKLO - Free Report) has achieved a major milestone in the development of its Groves Isotope Test Reactor after receiving approval for its Documented Safety Analysis (DSA) from the U.S. Department of Energy (DOE). The approval, granted under the DOE's Reactor Pilot Program, moves the Texas-based project one step closer to operational authorization and highlights the growing momentum behind advanced nuclear technology in the United States.
The achievement reinforces Oklo's strategy of accelerating commercial nuclear deployment while supporting a more resilient domestic supply of critical medical and industrial isotopes.
DOE Safety Approval Moves Groves Into Final Startup PhaseThe DOE's approval of the DSA marks the completion of the reactor's final safety documentation process. The DSA provides a comprehensive technical assessment of potential hazards, required safety controls and operational procedures needed to ensure safe reactor startup.
This follows the earlier approval of the Preliminary Documented Safety Analysis, which established the project's initial safety basis during the design and construction stages.
With both approvals now secured, the Groves reactor enters the DOE's final pre-startup review, which includes a readiness review and startup authorization. Once approved, the facility will be permitted to receive and load nuclear fuel, conduct startup testing and advance toward first criticality — the point at which the reactor achieves a controlled, self-sustaining nuclear chain reaction.
Oklo is targeting July 2026 for its first criticality.
A First for Commercial Advanced Nuclear ProjectsAccording to Oklo’s co-founder and CEO, the project represents a significant milestone for the advanced nuclear industry.
Groves is the first advanced reactor project to receive DSA approval while being located on privately owned land and relying entirely on commercially sourced fuel, equipment and systems supplied by the private sector. Construction and planned operations have also been led by a private-sector team under DOE oversight, making the facility representative of future commercial reactors that Oklo intends to build and operate.
The company also noted that the project demonstrates how advanced reactors can move from construction to deployment on a commercial timeline while maintaining rigorous safety standards.
Supporting Domestic Isotope ProductionBeyond reactor development, the Groves facility plays a strategic role in expanding Oklo's isotope business.
The reactor is expected to strengthen domestic production of critical isotopes used across several sectors, including cancer diagnosis and treatment, advanced manufacturing, scientific research, space exploration and national security.
Many of these isotopes are currently imported or produced at aging facilities, creating supply chain vulnerabilities for hospitals, research institutions and government agencies across the United States.
By launching operations through a pilot facility, Oklo aims to validate production processes, optimize reactor performance and establish reliable commercial-scale isotope production within the country.
Oklo Continues to Build MomentumThe DOE approval comes shortly after Oklo announced its acquisition of Creative Engineers Inc., a company specializing in alkali metal engineering for the nuclear industry. Although financial details of the acquisition were not disclosed, the move further strengthens Oklo's technical capabilities as it advances its next generation of nuclear technologies.
With regulatory progress accelerating, strategic acquisitions expanding its expertise and the Groves reactor approaching startup, Oklo continues to position itself as a leading developer of advanced nuclear solutions while helping build a more secure domestic isotope supply chain.
OKLO’s Zacks Rank & Key PicksOklo is an advanced nuclear energy company focused on developing, owning and operating small nuclear power plants under its Aurora product line. Currently, OKLO has a Zacks Rank #3 (Hold).
Investors interested in the nuclear energy sector may consider some top-ranked stocks like GE Vernova Inc. (GEV - Free Report) , NextEra Energy, Inc. (NEE - Free Report) and The Southern Company (SO - Free Report) — each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GE Vernova is an energy company that includes Power, Wind and Electrification segments and is supported by its accelerator businesses of Advanced Research, Consulting Services and Financial Services. The Zacks Consensus Estimate for GEV’s 2026 earnings indicates 73.2% year-over-year growth.
Juno Beach, FL-based NextEra Energy is a public utility holding company engaged in the generation, transmission, distribution and sale of electric energy. The Zacks Consensus Estimate for NEE’s 2026 earnings indicates 8.1% year-over-year growth.
Atlanta, GA-based Southern Company is one of the largest utilities in the United States. The company deals with the generation, transmission and distribution of electricity. The Zacks Consensus Estimate for SO’s 2026 earnings indicates 6.5% year-over-year growth.
Planet Labs is rated a buy with a $36 FY 2027 target, reflecting 14% upside and strong demand from global defense and intelligence sectors. PL posted 42% YoY revenue growth in Q1 2027, raised FY guidance to $425–441M, and maintains robust liquidity with $731M in cash and investments. Defense spending by NATO members and large government contracts, including satellite-as-a-service deals, are key catalysts for sustained growth and margin expansion.
European regulatory actions are beginning to reshape parts of the buy now, pay later (BNPL) sector, potentially shifting the capital trajectory of financial technology players. A historic antitrust verdict could redefine the balance sheet potential of one of the most heavily debated growth assets on the market, penalizing a digital search monopoly while also providing an aggressive competitor with a lucrative, non-dilutive financial runway.
When the Swedish Patent and Market Court dropped a $1.97 billion damages penalty on Alphabet Inc. NASDAQ: GOOGL this week, global headlines immediately focused on the escalating regulatory pressures facing tech monopolies. The Swedish court ruled that Alphabet systematically abused its dominant position in search to favor proprietary shopping tools over independent price-comparison platforms. While this sets a distinct legal precedent for Big Tech monopolies, the actionable story for retail investors is not about the loser in the courtroom.
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Weighing the Impact on Klarna's LedgerKlarna Group Today
$19.72 0.00 (-0.01%)
As of 07/2/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$12.06▼
$57.20Price Target$32.12
The true narrative centers on the victor, Klarna Group NYSE: KLAR, and how an unexpected influx of capital could reshape its balance sheet and accelerate its path to profitability. To understand the magnitude of this event, investors must look past the legal jargon and evaluate the raw numbers.
Klarna's PriceRunner subsidiary successfully proved its case against Alphabet, resulting in the largest competition damages award in Swedish history. More importantly for shareholders, that $1.97 billion judgment represents roughly 25% of Klarna's total market capitalization of $7.37 billion. This legal windfall provides a critical anchor for a stock navigating a turbulent post-IPO environment.
The $1.97B Injection Klarna Desperately NeedsTo accurately price this catalyst, investors must position the cash award relative to Klarna's current financial realities. Klarna went public in a highly anticipated September 2025 initial public offering, but shares have struggled to maintain momentum.
Klarna's stock price has remained down approximately 30% since the start of the year, trading near $20. A major factor driving that downward pressure was the expiration of Klarna's post-IPO lock-up period on March 9, 2026, which abruptly opened approximately 335 million pre-IPO shares to potential institutional liquidation.
Despite the sluggish chart performance, the underlying business is executing at an exceptional level. In its most recent quarter, Klarna delivered top-line revenue of $3.51 billion on an annualized basis, reflecting a 42.7% year-over-year growth. Klarna also reported an earnings-per-share loss of 1 cent, beating the consensus estimate of a 13-cent loss.
Klarna remains an unprofitable enterprise in its current growth phase. Trailing 12-month net margins sit at -5.21%, translating to a net income loss of $294 million. When an operation runs with negative margins and a lofty forward price-to-earnings ratio of nearly 500, access to cheap capital is critical. A $1.97 billion non-dilutive capital injection is the ultimate fundamental stabilizer. It provides Klarna with the financial runway it needs to fund its aggressive expansion without tapping high-interest debt markets or issuing new equity that would dilute existing shareholders.
Klarna Group plc (KLAR) Price Chart for Friday, July, 3, 2026
Defending the Title Through the Appeals ProcessWhile a headline figure of nearly two billion dollars is enough to send shares up 6% in a single session, pragmatic investors must discount that gross figure before modeling it into future cash flows.
Alphabet operates with a deeply entrenched legal defense infrastructure and has already signaled its intent to appeal the Swedish court's decision. This introduces immediate appellate friction, meaning the capital will not hit Klarna's balance sheet this quarter or likely even this year. The timing of the liquidity event remains highly uncertain, and markets despise uncertainty.
The net payout will be significantly smaller than the gross award. Klarna acquired PriceRunner in 2022, and the structure of that acquisition, combined with the immense costs of a multi-year antitrust lawsuit, guarantees the final judgment could be reduced.
Litigation funders, legal teams, and former PriceRunner stakeholders will all take their contractual percentages. What remains will then be subject to applicable corporate taxation. The net cash position Klarna eventually secures will still be highly impactful, but anchoring a valuation model to the raw $1.97 billion figure is a fast track to mispricing the equity.
Alphabet's Stock Barely ReactedLooking at the other side of the courtroom reveals an entirely different market reality. Alphabet shares remained largely insulated by the headline, trading modestly higher during the July 1 session. Alphabet's short interest currently sits at an immaterial 0.84% of the public float, representing roughly 89.84 million shares. Institutional bears are not leveraging European antitrust headwinds as a short thesis, proving the broader market prices the penalty as an operational expense rather than a structural valuation threat.
Alphabet is experiencing consistent insider selling, with executives like Sundar Pichai and John Kent Walker offloading millions of shares, but this distribution is tied to valuation highs and capital structuring, not regional litigation fears. The market is currently digesting Alphabet's recently announced $80 billion equity financing plan designed to fund $36 billion in artificial intelligence (AI) infrastructure expansions. That dilution risk is the primary downward pressure on Alphabet, not the Swedish penalty.
Assuming the legal victory holds through the appeals process, Klarna will aggressively deploy its new capital to compete in that same artificial intelligence arena. Klarna is repositioning itself from a simple checkout button to a comprehensive, AI-driven commerce destination.
The PriceRunner architecture is already embedded across 13 distinct geographic markets, allowing Klarna to offer consumer price comparisons directly within its proprietary app. By vertically integrating search, product discovery, and flexible payments into a single ecosystem, Klarna aims to capture consumer intent before they ever reach a traditional search engine.
For institutional backers like SoftBank Group and Silver Lake, this legal victory validates the strategic foresight behind the 2022 PriceRunner acquisition.
Placing Bets After the Final BellThe Swedish antitrust ruling creates a distinct structural catalyst for Klarna, temporarily overriding broader macroeconomic concerns regarding consumer spending. The fundamental reality is that Klarna is growing revenue at a 42.7% clip, beating earnings estimates, and now has a historic legal judgment serving as a long-term financial backstop.
Investors looking for high-beta exposure to the evolving digital payments landscape might want to add Klarna Group to their watchlist as the market digests the long-term balance sheet implications of this courtroom knockout.
Should You Invest $1,000 in Alphabet Right Now?Before you consider Alphabet, you'll want to hear this.
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The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Akcie na pražské burze převážně rostly, nejvíce se dařilo akciím VIG (+2,66 %), které uzavřely při 1618 Kč, dále rostly akcie ČEZ (+2,21 %), Komerční banka (+1,12 %), Colt (+1,08 %), Moneta (+0,8 %) a Kofola (+0,1 %). V červených číslech zakončily po ex-dividend date akcie Doosan Power (-4,72 %), CSG (-0,48 %), Gevorkyan (-1,03 %), Philip Morris (-0,22 %) a Erste (-0,04 %). Index PX dnes připsal 1,06 % na 2615,58 b.
Following its spinoff from Western Digital last February, Sandisk (SNDK 14.00%) has delivered one of the most extreme stock performances in recent memory. Sandisk stock initially hit the Nasdaq at roughly $38 per share as an independent company. Yet over the last year and a half, shares have surged more than 6,000%.
This explosive rise has been fueled by strong demand for flash memory in artificial intelligence (AI) and data center applications. With Sandisk stock trading at more than $2,200 per share, smart investors are naturally wondering whether the company might soon pursue a stock split to manage the elevated share price.
Image source: The Motley Fool.
Looking at the mechanics of stock splits A stock split occurs when a company increases the number of its outstanding shares while proportionally reducing the price per share, leaving the overall market capitalization unchanged. In a 2-for-1 split, each existing share is replaced by two new shares, and the price is cut in half.
Investors receive the additional shares automatically through their brokerage accounts on the effective date. The stock split process is purely mechanical and does not alter a company's underlying business model, earnings profile, or ownership structure.
Image source: Getty Images.
Why do companies implement stock splits? One of the biggest reasons a company pursues a stock split is to enhance accessibility and liquidity. A high share price like Sandisk's can psychologically deter retail investors, as they tend to feel uncomfortable purchasing shares costing thousands of dollars each. By lowering the per-share price in terms of absolute dollars, splits help broaden a company's investor base. In turn, this increases trading volume and improves the stock's visibility among smaller investors.
In addition, stock splits can signal management's confidence in the company's growth trajectory. In other words, announcing a split after a sharp, prolonged run-up can be interpreted as a positive sign that management expects the higher share count to be absorbed.
Is Sandisk a good stock split candidate? At more than $2,000 per share, Sandisk's stock sits above the range most retail investors comfortably buy. A split would bring Sandisk's price into the low hundreds, which is a psychologically friendlier level that could draw additional buyers. Given the company's trajectory and its emerging role in AI infrastructure, rising participation from retail investors might help sustain Sandisk's momentum and reduce its reliance on a concentrated base of institutional portfolios.
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Operationally, however, Sandisk won't gain anything meaningful from a stock split. A split doesn't change the company's manufacturing capacity, technology roadmap, customer contracts, or its cost structure.
Rather, it is a financial engineering exercise that brings modest administrative and legal expenses without improving competitive dynamics. The main benefit of stock splits revolves around behavioral finance and distribution: Making the stock appear more approachable expands the shareholder base and potentially supports a higher valuation multiple over the long term.
With the share price already having multiplied dramatically since its February 2025 listing, a split could be constructive for Sandisk, helping it maintain high trading engagement without incurring any material downside. Ultimately, whether a split makes sense will depend on management's priorities.
Yet when we look at other high-growth companies, they've all opted for stock splits when their stock prices went above a certain threshold. Amazon and Nvidia are prime examples of this.
But also keep also in mind that a stock split does not change Sandisk's valuation or growth trajectory; investors should consider building a position in the AI leader over a long-term horizon rather than waiting for a better entry price.
Key Takeaways nVent Electric is benefiting from strong data center demand, driving record sales, orders and backlog. NVT reported about 40% organic order growth, with AI data center projects boosting its $2.6B backlog. nVent Electric is expanding capacity and investing more to support utility and data center demand. nVent Electric (NVT - Free Report) shares have surged 49.3% year to date, outperforming the Zacks Electronics - Miscellaneous Components industry’s decline of 5.7%. The stock also outperformed its industry peers, including OSI Systems (OSIS - Free Report) , Fabrinet (FN - Free Report) and TE Connectivity (TEL - Free Report) . Year to date, shares of Fabrinet have gained 10.5%, while TE Connectivity and OSI Systems shares have plunged 13.2% and 13.1%, respectively.
The outperformance of nVent Electric’s shares raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
Data Center Demand Boosts NVT's ProspectsnVent Electric is benefiting from strong demand for data center infrastructure, which is becoming a major driver of its revenue growth. In the first quarter of 2026, the company reported organic sales growth of 34%, with infrastructure sales rising nearly 80% year over year. Management said data centers were the biggest contributor to growth, helping the company deliver record sales, orders and backlog.
The company is seeing demand across both gray-space and white-space data center applications. In the gray space, growth was driven by engineered buildings, enclosures and power connections. In the white space, liquid cooling, power distribution units and cable management solutions performed well. Management noted that growth was broad-based across the portfolio and supported by demand from hyperscalers, neocloud providers, multitenant operators and distribution partners.
nVent Electric's order trends also remain strong. Organic orders increased about 40% in the first quarter, largely driven by AI data center projects. Backlog reached a record $2.6 billion, rising in the low double digits sequentially. The company stated that most of its backlog extends beyond 12 months and into 2027, providing visibility into future revenues. Further, in the first quarter, new products added more than 20 percentage points to sales growth, with many of those products tied to data center applications.
To support demand, nVent Electric is increasing capacity across its operations, which should help the company generate more revenue once fully ramped up. The company recently opened its new Blaine, MN, facility and expects production to ramp through 2026. It is also investing in additional capacity for liquid cooling and other data center products.
Overall, the above-mentioned factors show that data center demand is likely to remain an important revenue growth driver for the company. The Zacks Consensus Estimate for nVent Electric’s 2026 revenues is pegged at $4.98 billion, indicating a year-over-year increase of 27.97%.
Image Source: Zacks Investment Research
nVent Electric Benefits From Strength in Power UtilitiesnVent Electric is benefiting from growing investments in power utility infrastructure. In the first quarter of 2026, nVent Electric’s power utility business posted double-digit sales growth, and the company now sees power utility become its second-largest growth opportunity after data centers. NVT's prospects are set to benefit as power utility customers continue to increase their investment to expand grid capacity as electricity demand continues to rise.
Rising power demand from AI data centers is creating an additional need for transmission and distribution infrastructure. Utility customers are upgrading and expanding their networks to support higher electricity loads. This is driving the demand for nVent’s electrical protection and connection products, such as enclosures, power distribution products and related electrical equipment, which bodes well for the company’s prospects in the upcoming quarters.
nVent Electric is investing significantly to support this demand. NVT plans to spend approximately $130 million on capital expenditures in 2026, which is a 40% increase from the prior year. The company said a significant portion of this investment is being directed toward capacity expansion for power utility and data center projects. nVent Electric is also expanding its engineered building solutions business, which serves utility customers.
The EPG acquisition is helping nVent Electric increase its exposure to utility projects. Management stated EPG continues to perform above expectations and is providing additional opportunities in engineered buildings and electrical integration solutions. With double-digit utility sales growth, increased capacity investments and continued utility spending on grid expansion, power utilities are becoming a major contributor to nVent's revenue growth.
Key Technical Indicator Signals Bullish Trend for NVTnVent Electric shares are trading above their 200-day moving average, a bullish technical signal that indicates the potential for continued upward momentum in the near term.
NVT 200-Day Simple Moving Average
Image Source: Zacks Investment Research
NVT’s Valuation Reflects High Growth ExpectationsnVent Electric is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVT’s forward 12-month P/S ratio sits at 4.85X, higher than the industry’s forward 12-month P/S ratio of 4.36X.
NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
NVT stock also trades at a higher P/S multiple compared with other industry peers, including OSI Systems, Fabrinet and TE Connectivity. At present, OSI Systems, Fabrinet and TE Connectivity have P/S multiples of 1.94X, 4.26X and 2.83X, respectively.
NVT’s rally reflects investor excitement about AI-related data center demand, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term.
Conclusion: Buy nVent Electric Stock Right NownVent Electric is seeing steady demand from data centers and power utilities, which is helping drive strong orders and a growing backlog. Further, the company is expanding capacity to support future demand. These factors support the outlook for continued growth. The stock’s valuation reflects high growth expectations from the company, which is set to benefit from strong long-term demand from AI-related data center projects.
Currently, nVent Electric sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the first days after the initial public offering (IPO), SpaceX (NASDAQ: SPCX) stock appeared like an instant winner as it soared 67% from the original $135 price, 50% from the June 12 open at $150, and 38.47% from the day’s close at $162.95.
Despite the initial SPCX shares’ performance that appeared to fly as high as SpaceX rockets, the equity reversed just as rapidly after hitting the all-time high (ATH) of $225.64 on June 16 and even, in subsequent weeks, briefly fell below the day-one range.
On July 2, Elon Musk’s newer public company closed at $162, while the SpaceX stock price today stood at $160.95 by press time on July 3 following a 0.65% extended-session drop.
SpaceX stock price chart. Source: Google Still, while the gains would have significantly diminished relative to mid-June, a $5,000 investment made at the SpaceX IPO share price of $135 would have grown to a $6,000 position for $1,000 in profits by the Thursday evening bell.
Making a purchase of the same size on the morning of June 12 would have led to somewhat smaller $400 gains and holdings worth $5,400.
However, buying shares of SPCX on the evening of the IPO day would have yielded a $29 unrealized loss as the investment dropped to $4,971. Traders unfortunate enough to buy $5,000 worth of SpaceX stock close to the ATH would have lost $1,410.
Looking ahead, the future of SpaceX appears significantly more uncertain at the beginning of July, even in the short term, than it did as recently as the June 12 SPCX IPO.
SpaceX stock price prediction for the next 12 months For example, the top-level view provided by rating aggregators such as TipRanks shows that Wall Street experts lack the confidence needed for a “Strong Buy’ average rating.
Indeed, out of the nine recommendations showcased on the platform, one views shares of SPCX as a ‘Sell,’ and there is an equal split between ‘Buy’ and ‘Hold’ ratings. Still, the balance is slightly skewed toward bullish, with the average 12-month price target showing an expected 30.16% rally to $210.86, suggesting Wall Street still sees upside for the SpaceX share price.
Shares SpaceX chart for next 12 months by Wall Street. Source: TipRanks Moving beyond the aggregator platforms, the former hedge fund manager and TV host Jim Cramer is, based on his comments, positive toward SpaceX stock despite being skeptical about the speed of the initial rally.
On the other end of the spectrum, Morningstar published a report around the time of the SpaceX IPO in which it explained its most likely scenario would see Elon Musk’s rocket, internet, and artificial intelligence (AI) company effectively halve in value.
The AI side of the equation itself presents potential headwinds. While SpaceX’s agreements to rent out capacity to Anthropic and Alphabet (NASDAQ: GOOGL) were seen as both transformative and positive for the firm’s revenue, they came with an implication that xAI’s own models were not popular enough to fully occupy Colossus 1 and Colossus 2.
While the supply and demand side of the business model went relatively underdiscussed, reports that Meta Platforms (NASDAQ: META) is considering a similar approach brought the question of the actual need for data centers – and implications for chipmakers and similar hardware giants – into investors’ consciousness.
Indeed, by press time on July 3, it would appear that the fears regarding SpaceX’s fundamentals and the destabilization of the AI boom narrative have proven sufficient to severely limit the expected upside from the SPCX stock’s inclusion in the Nasdaq-100, scheduled for July 7.
Nonetheless, the resulting index fund automatic buying activity is still likely to trigger at least a short-term rally before insiders gain and then slowly increase their ability to sell their SpaceX stakes.
