Capri Holdings snížila výhled tržeb pro fiskální rok 2027 na zhruba 3,4 miliardy USD kvůli tlaku na značku Michael Kors. Akcie jsou letos o 36,2 % níže.
Key Takeaways Capri Holdings trades at 6.87X forward earnings, below its five-year median and sub-industry multiple.Capri Holdings cut fiscal 2027 revenue guidance to $3.4 billion as Michael Kors faces ongoing pressure.Jimmy Choo's growth and lower leverage strengthen the turnaround, but Michael Kors remains the key test.
Capri Holdings Limited (CPRI - Free Report) looks inexpensive after a steep share-price decline, but the discount reflects a turnaround that is still short of a sustained revenue recovery. The stock trades at 6.87X forward 12-month earnings, well below the Zacks sub-industry’s 13.48X multiple.
The operating picture is improving in important areas. Yet Michael Kors remains under pressure, fiscal 2027 revenue guidance was reduced and external risks could slow the recovery.
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Capri’s Valuation Makes the Bull Case Hard to IgnoreCPRI shares are down 36.2% year to date and 27% over the trailing 12 months. The current forward earnings multiple is also below the stock’s five-year median of 9.53X, giving value-focused investors a clear reason to keep Capri on the radar.
The first quarter of fiscal 2027 provided some support for that discount-closing case. Adjusted earnings rose 34% year over year to 67 cents per share, while gross margin expanded 200 basis points to 65%. Adjusted operating income increased 40% to $28 million even as revenues declined 3.5% to $769 million.
Balance-sheet risk has fallen sharply following the Versace sale. Capri ended the quarter with net debt of $224 million, down from about $1.5 billion a year earlier. Free cash flow was $48 million, and the company repurchased about $50 million of shares during the quarter.
Turnaround Progress is Real, but Michael Kors is the TestJimmy Choo is providing the clearest evidence of brand momentum. First-quarter revenues increased 10.5% to $179 million, while operating margin expanded 480 basis points to 7.3%. Michael Kors, however, still accounts for most of Capri’s business and posted a 7.1% revenue decline to $590 million.
Capri now expects fiscal 2027 revenues of about $3.4 billion, down from its prior $3.525 billion outlook. The revision reflects inventory delays at Michael Kors, softer EMEA demand and foreign currency headwinds. Management still expects earnings of about $2.15 per share, supported by lower operating expenses, but the reduced sales outlook leaves less room for execution missteps.
Tariff uncertainty, inflation, competitive pressure and weak consumer confidence remain additional risks. The turnaround depends on full-price selling, product innovation, marketing and store renovations translating into durable revenue stabilization without giving back recent margin gains.
Peers Show the Bar for Luxury ExecutionTapestry, Inc. (TPR - Free Report) offers a useful comparison because Coach and Kate Spade also compete for accessories and lifestyle spending. Tapestry reported fiscal 2026 revenues of $8.0 billion and a 23% adjusted operating margin, showing the available profitability when brand momentum and execution are stronger.
Ralph Lauren Corporation (RL - Free Report) also entered fiscal 2027 with healthier top-line momentum. Its first-quarter revenues increased 14% on a reported basis, and the company raised its full-year constant-currency revenue and adjusted operating-margin outlook.
Should Investors Buy CPRI Now?Capri’s valuation is difficult to dismiss, and its lower leverage, margin improvement and Jimmy Choo growth make the turnaround more credible. The central question is whether Michael Kors can return to growth quickly enough to validate the low earnings multiple.
CPRI currently carries a Zacks Rank #3 (Hold), alongside a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. The strong Value and VGM scores support the stock’s inexpensive profile, while the weak Momentum Score tempers the near-term setup. Because Style Scores are designed to complement the Zacks Rank, the combination favors patience while investors look for firmer evidence of sustained revenue recovery.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
QUBT zakončila 2. čtvrtletí 2026 s aktivy kolem 1,64 mld. USD a likviditou 1,3 mld. USD. Na akvizice Luminar Semiconductor, NuCrypt a NHanced Semiconductors utratila asi 180 mil. USD v hotovosti.
Key Takeaways QUBT ended Q2 2026 with about $1.64 billion in total assets and $1.3 billion in liquidity.QUBT used about $180 million in cash to acquire Luminar Semiconductor, NuCrypt and NHanced Semiconductors.
QUBT's liabilities rose to $47.2 million, while stockholders' equity remained about $1.6 billion.
Quantum Computing Inc. (QUBT - Free Report) or “QCi” continues to maintain a strong, well-capitalized balance sheet, providing substantial financial flexibility as the company integrates its recent acquisitions and invests in its broader quantum, photonics, semiconductor, and advanced manufacturing strategy.
The company ended the second quarter of 2026 with total assets worth approximately $1.64 billion, which remained unchanged compared with the first quarter. This indicates that QCi’s overall financial position remained largely unchanged despite significant strategic investments and acquisition activity during the first half of 2026.
Liquidity remained substantial. Cash, cash equivalents and investments totaled approximately $1.3 billion compared with $1.4 billion as of March 31, 2026. The reduction in the company’s cash and investment position primarily reflects capital deployment toward strategic expansion initiatives rather than a significant deterioration in underlying liquidity. During the first half of 2026, QCi completed the acquisitions of Luminar Semiconductor, Inc., NuCrypt, and NHanced Semiconductors, Inc., using approximately $180 million in cash, including transaction-related expenses, to complete these transactions.
Total liabilities increased to approximately $47.2 million from $23.4 million at the end of the first quarter. However, the liabilities remain much lower than the cash levels. Stockholders’ equity remained approximately $1.6 billion, underscoring the company’s strong capitalization following its recent financing and investment activities.
Peer UpdateRigetti (RGTI - Free Report) exited the first quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $418.2 million compared with $443.5 million at the end of the fourth quarter of 2025. The company ended the quarter with no debt on its balance sheet, underscoring a solid solvency position. This means Rigetti has ample liquidity to fund its operations and roadmap execution without near-term financing pressure, which is a valuable cushion in an industry where research and development costs remain high.
D-Wave Quantum (QBTS - Free Report) reported cash and cash equivalents of $338.2 million and marketable investment securities of $250.2 million for the first quarter. Operating cash outflow was $45 million in the first quarter, while investing cash outflow included $250.8 million of cash consideration for the Quantum Circuits acquisition. Even after that step-down, the balance sheet supports continued investment in R&D, sales coverage and system installations. Leap Cloud entered 2026 with utilization below 50%, leaving ample capacity headroom, while additional annealing systems can be deployed within months at relatively modest cost.
QUBT’s Share Price PerformanceOver the past year, QCi’s shares have plunged 44.3% compared with the industry’s 15% decline.
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QUBT’s Expensive ValuationQUBT currently trades at a forward 12-month price-to-sales (P/S) of 70.21X compared with the industry’s median of 4.10X.
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QUBT Stock Estimate TrendOver the past 30 days, QCi’s loss per share estimate for 2026 has moved south.
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QUBT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brinker International očekává ve fiskálním roce 2027 tržby 6,15–6,27 mld. USD a upravený zisk na akcii 12,60–13,40 USD. Pomoci má 53. provozní týden, který má přidat asi 2 % k tržbám a 70 centů k EPS.
Key Takeaways EAT expects fiscal 2027 revenue of $6.15-$6.27B and adjusted EPS of $12.60-$13.40.The 53rd week is expected to add about 2% to revenue and 70 cents to adjusted EPS.Brinker plans 60-80 Chili's reimages while managing inflation and pricing to protect its value proposition. Brinker International, Inc. (EAT - Free Report) expects another year of revenue and earnings growth in fiscal 2027, helped by an unusual 53rd operating week. The calendar benefit is meaningful, but it is only one part of the outlook.
Investors still have to weigh Chili's traffic assumptions, restaurant reinvestment and cost pressures to judge how much of the projected growth reflects underlying operating progress.
Brinker's Fiscal 2027 Guidance Extends MomentumBrinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Management built the outlook around mid-single-digit Chili's same-store sales growth and positive traffic for the remainder of the year.
That keeps Chili's execution at the center of the forecast. Darden Restaurants, Inc. (DRI - Free Report) , with brands including Olive Garden and LongHorn Steakhouse, provides another large full-service dining benchmark. Texas Roadhouse, Inc. (TXRH - Free Report) operates predominantly in casual dining, making traffic and restaurant-level execution important points of comparison across the category.
EAT Gets a 53rd-Week Earnings TailwindThe extra operating week is expected to add about 2% to fiscal 2027 revenues and 70 cents to adjusted earnings per share. Because that contribution comes from the calendar, it should be separated from the company's underlying sales and margin progress.
The distinction matters when comparing fiscal 2027 with fiscal 2026. Growth supported by a 53rd week is real for the reported year, but Chili's comparable sales, traffic and restaurant economics will provide a cleaner read on operating momentum.
Brinker's Reimage Plan Adds a Longer Growth LeverBrinker completed 11 Chili's reimages in fiscal 2026 and plans another 60-80 in fiscal 2027. The program expands a growth lever that is separate from near-term comparable-sales gains and is intended to refresh more of the restaurant base.
Fiscal 2027 guidance also assumes three net new company-owned restaurant openings. Brinker plans to acquire 12 franchised Chili's restaurants in Alabama and Mississippi, while management expects a larger new-unit development ramp beginning in later fiscal years.
EAT Still Has to Manage Inflation and PricingCommodity inflation is expected to ease through fiscal 2027, from about 4% in the first quarter to 3% in the second, 2% in the third and 1% in the fourth. Beef remains the main commodity pressure after contributing to higher food costs in the most recent quarter.
Brinker also plans to keep pricing near the lower end of its 3-5% range to protect Chili's value proposition. That approach supports traffic goals but reduces the pricing cushion available if commodity or other restaurant costs prove more persistent.
Brinker's Maggiano's Turnaround Remains a DragMaggiano's recovery remains slower than planned. Management has incorporated that slower turnaround into fiscal 2027 guidance and modeled roughly flat revenues and profits for the brand.
The brand's smaller contribution limits its effect on consolidated results, but execution still matters. Fiscal 2026 comparable sales fell 3.9%, traffic declined 9.3% and restaurant operating margin dropped to 10.1% from 16.3%, leaving little room for further deterioration.
EAT's Growth Scores Back the Outlook With CaveatsThe bottom line is that the 53rd week gives fiscal 2027 a clear earnings and revenue lift, while Chili's traffic, reimages and unit actions provide the more durable operating tests. Inflation, pricing discipline and Maggiano's weakness remain offsets.
EAT currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The Style Scores point to favorable growth and momentum characteristics, but they are designed to complement the Zacks Rank. With a #3 Rank rather than a #1 or #2, the combination supports a measured stance instead of an unqualified buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chili's společnosti Brinker International zvýšila ve fiskálním roce 2026 srovnatelné tržby o 9,2 % a návštěvnost o 3,6 %, zatímco průměrné roční tržby na jednotku dosáhly 5 milionů USD. Firma plánuje ve fiskálním roce 2027 dalších 60 až 80 přestavěných restaurací a akvizici 12 franšízových restaurací Chili's.
Key Takeaways EAT's Chili's same-store sales rose 9.2% in fiscal 2026, with traffic up 3.6% and unit volumes at $5M.Brinker plans 60-80 Chili's reimages in fiscal 2027, plus 12 franchised restaurant acquisitions.Maggiano's comps fell 2.5%, traffic dropped 5.3%, and margin declined to 10.3% from 13.3%. Brinker International, Inc.'s (EAT - Free Report) shares have climbed 28.7% in the past month, raising the bar for what the business must deliver next. Chili's traffic gains and fiscal 2027 guidance give investors concrete measures to test against that move.
The operating picture is favorable, but the stock's advance has outpaced recent earnings-estimate revisions. That gap puts more weight on continued execution, traffic growth and margin delivery.
EAT's 28.7% One-Month Rally Sets a High BarEAT's 28.7% four-week gain compares with a 5.3% increase in the Zacks Consensus Estimate for fiscal 2027 earnings over the same period. The stock has therefore moved much faster than the near-term change in expected earnings.
That does not mean the rally is disconnected from fundamentals, but it raises expectations. Further upside is more likely to depend on continued estimate revisions and proof that Chili's can sustain growth against difficult comparisons.
Brinker's Chili's Traffic Keeps the Story MovingChili's fourth-quarter fiscal 2026 same-store sales rose 5.6%, including a 1.5% increase in traffic. For the full year, comparable sales advanced 9.2% and traffic grew 3.6%, while average annual unit volumes reached $5 million.
Traffic-led growth matters because it suggests demand is not relying only on pricing. Darden Restaurants, Inc. (DRI - Free Report) , which operates Olive Garden and LongHorn Steakhouse, is another large casual-dining operator competing for visits. Texas Roadhouse, Inc. (TXRH - Free Report) also operates predominantly in casual dining, making sustained traffic gains a useful competitive measure for Brinker.
EAT's Margin Gains Face Commodity PressureBrinker's restaurant operating margin reached 18% in the fiscal fourth quarter, up 20 basis points year over year despite 5% company comparable-sales growth. Food and beverage costs increased 80 basis points as commodity inflation reached 4.4%, led mainly by beef.
Management expects low-single-digit commodity and wage inflation in fiscal 2027 and plans to protect Chili's value positioning with restrained pricing. That mix could keep margin expansion measured even if sales remain positive.
Brinker's Reimages Extend the Growth RunwayBrinker completed 11 Chili's reimages in fiscal 2026 and plans another 60-80 in fiscal 2027. The program gives the company another growth lever beyond same-store sales by refreshing the restaurant experience across more locations.
New unit growth is expected to remain modest, with fiscal 2027 guidance assuming three net new company-owned openings. Brinker also plans to acquire 12 franchised Chili's restaurants in Alabama and Mississippi, expanding its company-operated base.
EAT's Maggiano's Slump Tempers the MomentumMaggiano's fourth-quarter comparable sales fell 2.5% as traffic declined 5.3%. Restaurant operating margin dropped to 10.3% from 13.3% a year earlier, showing that the smaller brand is still moving in the opposite direction from Chili's.
Maggiano's represents only about 8% of Brinker sales, limiting its weight on consolidated results. Still, management has described the turnaround as slower than planned, leaving execution risk as expectations rise for Chili's.
EAT's Growth and Momentum Scores Meet a Hold SignalThe bottom line is that Chili's traffic, unit volumes, reimages and fiscal 2027 growth plan support EAT's operating momentum, while margin pressure and Maggiano's weakness argue for restraint after the stock's sharp one-month gain.
EAT currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The favorable Growth, Momentum and VGM readings strengthen the stock's style profile, but the Zacks #3 Rank stops short of the stronger signal associated with Zacks Rank #1 (Strong Buy) and 2 (Buy) stocks. That mix supports monitoring whether earnings revisions and execution can keep pace with the recent share-price move. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ben Reitzes z Melius Research uvedl, že SanDisk by mohl během tří let odkoupit vlastní akcie za zhruba 100 miliard USD a zvýšil cílovou cenu na 3 600 USD. Akcie letos přidaly 492 %.
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Memory has historically been the worst business in the semiconductor industry. Brutal cycles, no pricing power, capacity built at exactly the wrong moment. So when Melius Research’s head of technology tells CNBC that a memory company can hand back roughly its entire pre-2026 market cap in buybacks over three years, the reflex is skepticism. The claim deserves better than a reflex.
On CNBC this morning, Ben Reitzes said SanDisk (NASDAQ:SNDK | SNDK Price Prediction) could buy back roughly $100 billion of its own stock over the next three years, and lifted his price target to $3,600 after the company’s analyst day. He values the shares at about 11 times earnings on his forward numbers. SanDisk currently trades around $1,613.45 with a market cap near $238 billion and a trailing P/E of roughly 21x. The stock has gained 492% year to date, so the gap between the current price and Reitzes’ target implies the market is only partway to pricing in what he sees.
The Argument That Memory Stopped Being A Commodity
Reitzes’ thesis centers on customer behavior more than on SanDisk’s technology. “The largest customers are actually going back to folks like SanDisk and Micron saying, you know what, let’s sign up for these contracts. It’s really game on. We need this. We cannot be caught short,” he said, naming Google and Microsoft as examples. His view is that AI has rewritten the game: “Memory sort of got reinvented with the whole AI. The more memory you use, the better AI gets.” He also credits CEO David Goeckeler personally, saying, “We think that Dave is doing a great job of really making that business model more predictable.”
That predictability has a specific name inside SanDisk. On the Q4 call, management disclosed that 8 diverse data center and edge customers have now signed New Business Model agreements, with total expected minimum revenue of $93.9 billion at floor pricing and a weighted-average duration of over 4 years. Goeckeler said customers “are giving us demand signals for all the way out to the end of the decade.” Buyers voluntarily giving up price optionality in exchange for guaranteed supply is not commodity behavior.
What The $100 Billion Actually Requires
The math is credible. SanDisk generated $11.43 billion in net income in fiscal 2026 with a negligible debt-to-equity ratio and no term loan B. The board authorized an additional $14 billion in repurchases, bringing the remaining authorization to $15.5 billion, and the company already retired 2.8 million shares for $4.5 billion in a single quarter.
Goeckeler was direct on the call: “We believe that at this point in time…the best way to do it is to return cash to investors via share buybacks.” Q1 FY2027 guidance calls for revenue of $10.30B–$10.80B and non-GAAP EPS of $44.00–$46.00. Extrapolate that quarterly cash generation over 12 quarters, and the Reitzes’ number stops being absurd.
You can see the pace SanDisk has already sustained in the Q4 press release filed with the SEC and in the 437% year-over-year growth in datacenter revenue, which is driving mix higher.
The Counter Argument
Every memory cycle in history has produced a “this time the cycle is dead” thesis, and every one has eventually been wrong. Contracts get renegotiated when spot prices collapse; reputational cost is a real deterrent but not an infinite one.
SanDisk has been a standalone public company only since its February 21, 2025 separation from Western Digital, so there is no long independent track record to stress-test. Current sell-side consensus sits at a target of $2,053.50 with 18 Buy, 4 Hold, and 1 Sell ratings. That is bullish, but well short of $3,600.
The Takeaway
Reitzes is directionally correct on the mechanism. NBMs with $16.5 billion in financial guarantees behind them are qualitatively different from spot NAND, and the free cash flow is real. For the full $100 billion to be achievable, three things must hold: hyperscaler contracts must survive at least one down-cycle without material renegotiation, capital intensity must stay near the approximately 6% for full-year FY2027 Goeckeler guided to, and pricing on non-contracted bits cannot collapse.
If any two of those hold, the buyback is still enormous, just smaller than $100 billion. The durability of the contracts matters more than peak-cycle EPS when valuing the stock. The commodity discount is what is going away. Whether that discount stays gone will determine how much of Reitzes’ target the market ultimately validates.
Contact [email protected] for any questions or corrections.
Tesla chystá ukázku Roadsteru s raketovým pohonem SpaceX; vůz má být dálkově řízený a neveřejně provozovaný na silnici. Projekt už zmeškal nejméně osm interních termínů.
TSLA stock is moving. See the chart and price action here.
Rocket-Car Demo Nears After DelaysThe thruster package uses pressurized inert gas, the same category of hardware SpaceX relies on for attitude control during Falcon 9 booster landings, rather than combustion.
Roughly ten thrusters are expected to sit where the rear seats would normally go, and Musk has claimed the system could push the Roadster from 0 to 60 mph in about 1.1 seconds while briefly lifting the car off the pavement.
Spectators would need to stand several hundred yards back because of potential hearing damage from the high-pressure gas release, per The Information’s sourcing. The demo vehicle will reportedly be remotely operated, without a driver, and will not be street legal.
Tesla intends to sell a limited-edition SpaceX version equipped with the thruster package alongside a separate “scaled-down” variant of the car, with pricing potentially running into the hundreds of thousands or even millions of dollars.
The program has a rocky history. Electrek noted the Roadster demo has missed at least eight internal deadlines, sliding from an original target date to April, then May, then June and now August.
Musk reportedly received a private preview of the A71 system from Tesla and SpaceX engineers in late April, well before the public timeline kept slipping.
Skeptics Doubt ‘Flying’ Claims Skepticism persists about how literally “flying” should be taken. Electrek previously flagged a Roadster-related patent filing that made no mention of thrusters, rocket, lift, or flight, suggesting the production hardware may diverge from years of hype.
Automotive analysts have also questioned whether a hovering feature would clear basic safety and liability hurdles for a road-legal vehicle.
Regardless of how much the car actually leaves the ground, the event doubles as a marketing showcase for Tesla-SpaceX engineering collaboration at a moment when investors are watching the product pipeline closely. No official date or broadcast plan has been confirmed by Tesla or SpaceX.
TSLA, SPCX Stock Price Activity: Tesla shares were up 0.71% at $342.36 and SpaceX shares were down 3.64% at $136.13 at the time of publication Friday, according to Benzinga Pro.
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3M zvýšila výhled upraveného zisku pro rok 2026 na 8,80–8,95 USD na akcii z dřívějších 8,50–8,70 USD. Tržby divize Transportation & Electronics ve 2. čtvrtletí vzrostly o 6,2 % na 2,07 mld. USD.
Key Takeaways 3M's Transportation & Electronics revenues rose 6.2%, with organic sales up 5.9% in the second quarter.Transportation & Electronics operating income grew 5% as aerospace & semiconductor demand supported growth.3M raised its 2026 adjusted earnings outlook to $8.80-$8.95 per share from $8.50-$8.70 previously. 3M Company’s (MMM - Free Report) Transportation and Electronics segment has been benefiting from strength in the transportation and aerospace end markets. Solid momentum in the semiconductor, data center, aerospace, advanced materials and commercial branding, driven by demand for new products and expanding sales coverage, is proving beneficial for the segment.
Revenues from Transportation & Electronics totaled $2.07 billion, reflecting a year-over-year increase of 6.2%. The segment’s organic revenues increased 5.9% year over year in the second quarter. Foreign currency translation had a 0.5% favorable impact, while divestiture had an adverse impact of 0.2% on revenues. The segment's operating income grew 5% year over year to $503 million in the second quarter.
Also, strong momentum in abrasives, industrial adhesives and tapes, specialties, roofing granules, personal safety and electrical markets has been driving the Safety and Industrial segment’s performance. The segment delivered an organic sales growth of 8.2% year over year in the second quarter.
Backed by strength across its businesses, the company provided a positive outlook. For 2026, it expects adjusted earnings to be in the range of $8.80-$8.95 per share compared with $8.50-$8.70 projected earlier. The midpoint of the guided range is about $8.875, which reflects an increase from earnings of $8.06 per share reported in 2025.
Segmental Performance of MMM’s Peers in Q2Among 3M’s major peers, Carlisle Companies Incorporated (CSL - Free Report) is experiencing strength in its Construction Materials segment. In the second quarter, revenues from Carlisle’s Construction Materials segment increased 8% year over year to $1.18 billion. The results were driven by healthy re-roofing demand, strategic initiatives and strong commercial execution, partly offset by continued softness in commercial new construction.
Another peer, Honeywell Technologies (HON - Free Report) , is benefiting from increasing data center and hospitality projects across the Americas, India and the Middle East, which has been driving the Building Automation segment. Increasing order rates and capex investments in data centers and hospitality verticals bode well for it. In the second quarter of 2026, the segment’s organic revenues increased 9% year over year.
The Zacks Rundown for MMMShares of 3M have gained 14.1% in the year-to-date period against the industry’s decline of 9.1%.
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From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 19.40X, above the industry average of 16.04X. MMM carries a Value Score of D.
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The Zacks Consensus Estimate for MMM’s earnings for 2026 and 2027 has increased 3% and 4.5%, respectively, in the past 60 days.
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MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Johnson & Johnson za poslední měsíc přidal asi 4,8 % poté, co ve 2. čtvrtletí překonal odhady zisku i tržeb. Firma zároveň zvýšila celoroční výhled tržeb i upraveného zisku na akcii.
It has been about a month since the last earnings report for Johnson & Johnson (JNJ - Free Report) . Shares have added about 4.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Johnson & Johnson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Q2 Earnings & Sales Beat EstimatesJ&J’s second-quarter 2026 earnings came in at $2.90 per share, which beat the Zacks Consensus Estimate of $2.84. Earnings rose 4.7% from the year-ago period.
Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.27 per share, down 0.9% year over year.
Sales of $25.3 billion marginally beat the Zacks Consensus Estimate of $25.1 billion.
Sales rose 6.6% from the year-ago quarter, reflecting an operational increase of 5.6% and a positive currency impact of 1.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 5.7% on an operational basis. Stelara’s LOE negatively impacted total revenue growth by approximately 460 basis points. Excluding Stelara, sales grew in a double-digit range in the quarter.
Second-quarter sales in the domestic market rose 7.3% to $14.53 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 7.4% in the quarter.
International sales rose 5.7% on a reported basis to $10.8 billion, reflecting an operational increase of 3.4% and a positive currency impact of 2.3%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 3.5% in the quarter.
Segment DetailsInnovative Medicines SegmentInnovative Medicine sales rose 7.8% year over year to $16.38 billion. Operational sales increased 6.8%, while adjusted operational growth was 6.9%. U.S. sales advanced 8.9%, and international sales increased 6% on a reported basis. Innovative Medicines sales slightly beat the Zacks Consensus Estimate of $16.16 billion.
Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Zytiga.
Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 760 basis points in the quarter.
Oncology
Worldwide oncology sales increased 17.3% to $7.41 billion.
Darzalex rose 18.9% to $4.21 billion in the quarter, driven by continued share gains across all lines of therapy, particularly the front-line setting, as well as continued market growth. Sales beat the Zacks Consensus Estimate of $4.16 billion.
Imbruvica sales declined 18.6% to $599 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales missed the Zacks Consensus Estimate of $630.0 million.
Erleada sales increased 9.5% to $995 million, driven by share gains and market growth, partially offset by unfavorable patient mix and inventory dynamics. Erleada sales missed the Zacks Consensus Estimate of $1.06 billion.
Among the newer cancer drugs, Carvykti sales surged 49.4% to $657 million, driven by share gains and continued capacity expansion. Another new drug, Tecvayli’s sales jumped 56.5% year over year and 29.2% sequentially to $260 million, driven by launch uptake, share gains from continued expansion into the community setting and the launch of Tecvayli plus Darzalex Faspro for relapsed/refractory multiple myeloma.
Talvey sales advanced 63.3% to $174 million, driven by continued expansion into the community setting.
Rybrevant/Lazcluze sales climbed 60.8% to $289 million, driven by continued launch uptake in all regions, share gains and the rapid uptake of Rybrevant Faspro.
J&J’s newly launched therapy, Inlexzo, delivered a strong second quarter, with sales more than doubling sequentially from the first quarter number of around $30 million. Sales comfortably exceeded consensus expectations, although J&J did not disclose the exact sales figure. The launch continued to gain momentum in the United States, supported by permanent J-code reimbursement, with one in three eligible patients now starting an Inlexzo regimen, up from one in four in the first quarter.
Immunology
Worldwide immunology sales declined 3.7% to $3.84 billion as biosimilar competition continued to put pressure on Stelara, whose sales fell 55.2% to $740 million. Increasing adoption of novel classes and unfavorable patient mix also hurt Stelara sales in the quarter. However, Stelara sales beat the Zacks Consensus Estimate of $654.0 million.
Tremfya remained the key growth driver, with sales rising 72.5% to $2.05 billion, driven by share gains across all indications, particularly the IBD indications as well as continued market growth. Tremfya sales beat the Zacks Consensus Estimate of $1.85 billion.
Remicade revenues decreased 25.8% to $338 million. Simponi and Simponi Aria sales declined 10.5% to $618 million.
On the conference call, J&J said that it is seeing strong launches for its newly launched oral pill for plaque psoriasis, Icotyde, as well as new drug Imaavy for generalized myasthenia gravis.
Neuroscience, PH and Other Drugs
Neuroscience sales increased 14% to $2.34 billion. Spravato revenues grew 40.8% year over year and 24.8% on a sequential basis to $584 million driven by strong demand trends.
Caplyta, added from last year’s acquisition of Intra-Cellular Therapies, generated $361 million, up 70.9% year over year backed by new patient starts and continuing patient growth following its FDA approval in adjunctive major depressive disorder. Caplyta new patient starts were up 122% year over year.
Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 2.3% to $1.02 billion in the quarter.
Pulmonary hypertension drug Uptravi recorded second-quarter 2026 sales of $494 million, up 3.8% year over year. Opsumit/Opsynvi sales increased 3.4% to $602 million.
Xarelto sales rose 7.1% to $664 million. Sales of Prezista/Prezcobix/Rezolsta/Symtuza declined 6.3% to $372 million.
MedTech SegmentMedTech sales increased 4.5% to $8.93 billion, including operational growth of 3.6%. However, MedTech segment sales slightly missed the Zacks Consensus Estimate of $8.96 billion.
Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 3.7%.
In the MedTech segment, sales rose 3.9% in the United States and 3.2% outside of the United States on an operational basis.
On the conference call J&J clarified that while its Cardiovascular sales slowed down in the second quarter due to weakness in Abiomed, its other three businesses, Surgery, Vision and Orthopedics accelerated in the quarter and performed above expectations. J&J claimed that overall procedure volumes were stable and there was no broad-based slowdown in medical procedure volumes across its MedTech business. J&J clarified that although some large U.S. hospitals have reported weaker volumes for certain elective procedures, those trends are not reflected in its own business. J&J also said that the expiration of Affordable Care Act (ACA) subsidies has not had any meaningful impact on procedure volumes so far and is unlikely to materially affect MedTech demand.
Cardiovascular sales rose 4% to $2.40 billion. However, the growth was slower than prior trends due to competitive pressure in electrophysiology business and decline in Abiomed sales, partially offset by continued double-digit growth in Shockwave.
Shockwave revenues rose 14.6% to $335 million. Electrophysiology sales increased 4.4% to $1.53 billion as procedure growth, commercial execution and contribution from new products was partially offset by competitive PFA pressures and negative impact from China inventory dynamics.
Abiomed sales declined 2% to $440 million due to slow procedural volumes driven by usage patterns. Abiomed procedure volumes were hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures. J&J believes this led to slower Impella usage as doctors reassessed patient selection for the device. J&J believes this is a temporary issue and is working with physicians to ensure the device is used in the right patients based on its existing clinical evidence. However, Abiomed sales in outside U.S. markets remained strong.
Worldwide Surgery grew 3.9% to $2.65 billion as growth in wound closure and biosurgery offset the impact of competitive pressure in energy and endocutters and VBP issues in China. Worldwide orthopedics rose 4.9% to $2.42 billion, driven by new product launches and strong commercial execution. Worldwide Vision rose 6.0% to $1.45 billion, driven primarily by higher growth in contact lenses and Surgical Vision partially offset by competitive pressures in the United States in Surgical Vision.
Slightly Ups 2026 GuidanceBacked by a strong second-quarter performance and uptake of new products, J&J raised its 2026 reported sales guidance to $100.8-$101.4 billion from $100.3-$101.3 billion. The sales projection indicates growth in the range of 7.0%-7.6% versus the prior expectation of 6.5%-7.5%. Operational sales growth is expected in the range of 6.5%-7.1% versus the prior expectation of 5.9%-6.9%.
Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 6.2%-6.8% versus the prior expectation of 5.6%-6.6%.
In 2026, the 53rd week is expected to provide a benefit of approximately 100 basis points. Operational sales growth is expected to improve in the second half of the year with fourth-quarter growth expected to be higher due to the benefit from the 53rd week.
Adjusted earnings per share guidance was raised from a range of $11.45-$11.65 to $11.60-$11.75. Adjusted earnings per share growth is expected in the range of 7.5%-8.9% versus the prior expectation of 6.1%-8.1%.
Adjusted pretax operating margin is expected to improve by approximately 75 basis points, higher than the prior expectation of 50 basis points.
The company projects net interest expense to be between $250 million and $300 million, slightly lower than the prior expectation of $300 million to $400 million. The adjusted tax rate is expected to be approximately 17.0% to 18.0% (previous expectations: 17.5% to 18.5%).
J&J expects its Innovative Medicine segment to remain a key growth driver in the second half of 2026. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada as well as increased contribution from new launches like Icotyde, Rybrevant, and Inlexzo which can offset the ongoing impact of Stelara biosimilar competition. J&J expects continued above-market growth through the remainder of 2026.
Other than Stelara LOE impact, J&J expects generic impact for both Simponi and Opsumit to begin in 2026.
J&J expects its MedTech business to perform better in the second half of the year than it did in the first half. However, it has lowered expectations for Abiomed, anticipating only modest growth through the remainder of 2026 instead of a sharper rebound. However, it emphasized that the business is not expected to decline, with growth likely to gradually improve as the year progresses. J&J expects a more meaningful acceleration in Abiomed's growth to occur after the release of the PROTECT IV study data in 2027.
Overall, J&J expects MedTech growth to improve in the second half, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresAt this time, Johnson & Johnson has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Johnson & Johnson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
PayPal ve 2. čtvrtletí zvýšil TPV o 10 % na 486 miliard USD, ale branded checkout vzrostl jen o 2 %. Slabý růst tohoto klíčového segmentu dál brzdí akcie.
At a high level, PayPal (PYPL -0.97%) has the characteristics of a successful business. Its 228 million monthly active users consist of merchants and individuals, supporting a global network effect. Analysts expect it will generate $6 billion in free cash flow in 2026 on $34.7 billion in revenue. And the company is a leading force in digital payments, having been in business for more than two decades.
Perhaps no metric demonstrates its success more than total payment volume (TPV), which rose 10% year over year in Q2 (ended June 30) to $486 billion. This key figure keeps rising every year.
But the fintech stock remains a wildly disappointing investment. It's trading down 81% from its 2021 peak (as of Aug. 12). Here's what might be causing this losing streak.
Image source: PayPal.
Branded checkout weakness During the second quarter, TPV at Venmo surged 14% year over year. The payment service provider line, with contribution from Braintree, saw TPV grow 13%. However, PayPal's overall revenue was only up 5%.
Investor attention should turn to the company's online branded checkout solution. This includes PayPal-branded checkout, Pay with Venmo, and eBay. It has been the most lucrative segment in the past.
Its performance has been subpar, particularly after the 2018-2021 period, when it registered 26% annualized TPV growth. TPV rose by just 5% in 2022. That weakness hasn't improved, as branded checkout TPV climbed 2% in the second quarter, accounting for 28% of PayPal's entire TPV.
Branded online checkout is PayPal's crown jewel. When consumers are ready to pay at an online merchant, a dedicated PayPal button allows them to pay seamlessly without entering payment details or a shipping address.
It's the most profitable part of the business. Therefore, its performance impacts PayPal's financials. Transaction margin dollars increased by just 1% last quarter, a rate that should be higher if branded checkout were doing better.
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Competition is playing a part Management is striking an upbeat tone. "We're also raising our expectation for online branded checkout to the low-single-digit range for the year," CEO Enrique Lores said on the Q2 2026 earnings call. I don't believe this still muted pace of growth will propel the share price.
PayPal's stock has traded at a beaten-down valuation for some time. The market isn't bullish, though. Competition in the digital payments landscape is intense, especially from the likes of Apple Pay, which has an estimated 900 million global users.
It's impossible to know whether or when PayPal's branded checkout solution can return to robust growth. For the stock to be a winner, however, this segment needs to perform significantly better.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, PayPal, and eBay. The Motley Fool recommends the following options: short September 2026 $47.50 calls on PayPal. The Motley Fool has a disclosure policy.
EMA validovala žádost o schválení vakcíny proti lymské borelióze PF-07307405 od společností Pfizer a Valneva. Kandidát ve fázi 3 vykázal účinnost přes 70 % a nebyly hlášeny bezpečnostní problémy.
Valneva SE (NASDAQ:VALN) stock is surging on Friday after the company and its partner Pfizer Inc. (NYSE:PFE) announced that the European Medicines Agency (EMA) has validated the Marketing Authorization Application (MAA) for PF-07307405, their Lyme disease vaccine candidate.
The EMA will now commence its assessment of the application.
Clinical Trial ResultsThe application for PF-07307405 is supported by encouraging efficacy data from the Phase 3 VALOR clinical trial.
The trial evaluated the vaccine candidate’s ability to prevent Lyme disease in individuals aged five and older. The results demonstrated an efficacy of over 70%.
Furthermore, the vaccine was well-tolerated among trial participants, with no safety concerns reported.
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In March, the companies released topline results from the Phase 3 VALOR clinical trial for its Lyme disease vaccine candidate, which did not meet the primary endpoint criteria.
The Phase 3 VALOR trial results showed that fewer Lyme disease cases were accrued than anticipated, and the primary endpoint was not met in the first analysis.
Collaborative EffortPF-07307405 was developed through a collaboration between Pfizer and Valneva. The vaccine candidate has undergone rigorous evaluation for its efficacy, safety, tolerability, immunogenicity, and manufacturing lot consistency.
The two companies entered into a collaboration and license agreement in April 2020. Under this agreement, they are co-developing PF-07307405, and Pfizer holds the exclusive rights to manufacture and commercialize the vaccine, pending regulatory approval.
VALN Stock Price Activity: Valneva shares were up 24.96% at $7.06 at the time of publication on Friday,
according to Benzinga Pro data.
Photo: Shutterstock
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Kimberly-Clark těží z růstu objemu a mixu i vyšších marží, ale Čína, slabší poptávka a snížený výhled pro rok 2026 brzdí rychlejší oživení. Akcie KMB se obchodují pod klíčovými valuacemi, ale zůstává rating Hold.
Key Takeaways KMB trades below key market and industry valuation benchmarks, strengthening its value case.Volume-plus-mix gains and productivity helped KMB expand margins despite slower category growth.China disruption, consumer pressure and a reduced 2026 outlook weigh on the near-term recovery.
Kimberly-Clark Corporation (KMB - Free Report) offers investors a valuation-versus-execution trade-off. The stock trades below key historical and market benchmarks while the company continues to post volume-and-mix gains and margin improvement.
That discount is balanced by slower category growth, consumer pressure and disruption in China. The current setup supports patience rather than a clear-cut buying case.
KMB's Valuation Discount Strengthens the Bull CaseKMB trades at 14.75X forward 12-month earnings, below 18.28X for the industry, 16.81X for the Zacks Consumer Staples sector and 20.69X for the S&P 500. Its multiple is also below the one-year median of 14.63X, though above the one-year low of 12.52X.
Image Source: Zacks Investment Research
The discount gives investors a lower entry valuation relative to those benchmarks, but it does not erase execution risk. Consumer-staples peers Colgate-Palmolive Company (CL - Free Report) and Church & Dwight Co., Inc. (CHD - Free Report) provide useful comparison points for investors weighing KMB's valuation, growth profile and execution risks.
Kimberly-Clark's Volume-Mix Engine Is HoldingKimberly-Clark delivered its 10th consecutive quarter of positive volume-plus-mix performance. In the first half of 2026, organic sales rose 1.2%, supported by 1.3% volume growth and a 0.4% mix benefit, partly offset by a 0.5% decline in net pricing.
North America has generated volume-plus-mix-led growth in eight of the past 10 quarters. Trailing 12-month share gains covered 70% of its North American sales base, giving the company a demand foundation as category growth moderates.
KMB's Productivity Is Protecting MarginsGross productivity reached 6.4% in the second quarter of 2026. Adjusted gross margin expanded 190 basis points year over year to 38.8%.
Adjusted operating profit increased 6.2% to $757 million as productivity savings, one-time tariff refunds and favorable currency effects outweighed other pressures. That cost discipline is important because Kimberly-Clark continues to invest in product trial, brand support and supply-chain initiatives.
KMB's EPS Picture Shows Growth, but Estimates Stay SoftKimberly-Clark reported second-quarter 2026 adjusted earnings from continuing operations of $1.80 per share, up 10.4% year over year, but below the Zacks Consensus Estimate of $2.00. Adjusted earnings attributable to Kimberly-Clark were $2.12 per share, also up 10.4%, helped by higher adjusted operating profit and income from discontinued operations.
For 2026, Kimberly-Clark expects adjusted EPS from continuing operations to grow at a high-single-digit rate on a constant-currency basis, including an approximately 30% increase in income from equity companies. However, adjusted EPS attributable to Kimberly-Clark is expected to decline at a low-single-digit rate, reflecting a more complicated earnings mix following portfolio changes.
China and Consumer Pressure Cloud KMB's OutlookThe China diaper disruption reduced consolidated organic sales growth by about 50 basis points and created an approximately 440-basis-point headwind to International Personal Care operating profit. Management expects the issue to continue affecting sales and profits in the near term.
North American weighted category growth slowed to 1.9% from 3.7% sequentially, while lower-income consumers remain pressured.
KMB's Financial Position Supports Its TransformationKimberly-Clark ended the quarter with $956 million in cash and cash equivalents and $6.474 billion in long-term debt. Cash provided by operations totaled $1.653 billion in the first six months of 2026.
Capital spending reached $776 million during the period, while dividends returned $843 million to shareholders. The cash generation gives Kimberly-Clark resources to fund investment while it advances portfolio and operational changes.
KMB's Ranking Picture Remains IncompleteThe bottom line is balanced. KMB's valuation discount, sustained volume-and-mix momentum and productivity gains support the case for holding the shares, but China disruption, softer category growth and a reduced 2026 outlook limit the near-term argument for aggressive buying.
KMB currently carries a Zacks Rank #3 (Hold), along with a Value Score of C, a Growth Score of C, a Momentum Score of F and a VGM Score of C. Rank #3 can support holding an existing position, while the middling Value, Growth and VGM Scores and weak Momentum Score do not add a strong style-based buying signal. Investors may prefer to wait for clearer evidence of sales normalization and steadier category trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
M&T Bank za druhé čtvrtletí oznámila EPS 5,35 USD, nad odhadem 4,66 USD, a výnosy 2,53 mld. USD také překonaly očekávání. Čistý zisk pro akcionáře vzrostl meziročně o 15 % na 781 mil. USD.
It has been about a month since the last earnings report for M&T Bank Corporation (MTB - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is M&T Bank due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for M&T Bank Corporation before we dive into how investors and analysts have reacted as of late.
M&T Bank Q2 Earnings Beat Estimates on Strong NII & Fee Income GrowthM&T Bank reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.
Results were aided by higher net interest income and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.
Net income available to common shareholders was $781 million, up 15% from the prior-year quarter.
Revenues & Expenses Rise Y/Y
The company’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year.
NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements.
Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations.
Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses.
The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
Loan & Deposit Balances Increase
Total loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion.
Credit Quality Improves
Net charge-offs decreased 25.9% to $80 million from the prior-year quarter.
The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter.
Non-performing assets declined 23.2% year over year to $1.23 billion.
The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%.
Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter.
Outlook2026
Management expects taxable-equivalent NII to be in the lower half of the $7.2-$7.35 billion range. The company expects NIM to be in the high 3.60% range. The outlook remains dependent on loan growth, deposit trends and the shape of the yield curve.
Non-interest income is expected to be between $2.8 billion and $2.85 billion, revised upward from the prior guidance of $2.68-$2.77 billion. The increase reflects broad-based fee income growth and higher mortgage sub-servicing income beginning in the third quarter.
Management expects 2026 GAAP expenses, including intangible amortization, to be at the high end of its $5.5-$5.6 billion guidance range. This reflects continued investments in enterprise initiatives despite disciplined control of non-investment spending.
Average loan balances are expected to be $141-$143 billion, revised upward from the prior projection of $140-$142 billion. The growth reflects commercial loan momentum, improving CRE balances and continued consumer growth. Average deposit balances are anticipated to remain at $165-$167 billion.
The net charge-off rate is projected to be around 37 basis points, revised downward from the prior expectation of around 40 basis points.
The CET1 ratio is expected to be between 10% and 10.5%, compared with the prior expectation of around 10%.
The tax rate is anticipated to be around 24% for 2026.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.
VGM ScoresAt this time, M&T Bank has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook M&T Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Soud ve čtvrtek potvrdil předběžný zákaz a postavil se na stranu Gilead Sciences v sporu o dovoz léků ze zahraničí. Rozhodnutí může zásadně omezit programy AFP, které podle úřadů obcházejí pravidla FDA.
A court ruling this week in favor of Gilead Sciences could significantly impact a burgeoning class of health programs in the U.S. that federal authorities say are illegally importing medications from overseas.
Last year, a CNBC investigation found that these programs — called alternative funding programs, or AFPs — were becoming more pervasive around the country as drug costs skyrocket. Yet U.S. authorities say AFPs import the drugs from international markets in violation of Food and Drug Administration regulations.
A U.S. Court of Appeals on Thursday upheld a preliminary injunction in the case filed by Gilead against several AFPs and related businesses. Patient advocacy groups say the decision could force AFPs to shrink dramatically or even go out of business.
AFPs have defended their practices as both legal and safe and say their businesses are an antidote to high prescription drug prices.
In December 2024, Gilead sued several companies in connection with what it claimed was the illegal importation of its HIV drug Biktarvy. The suit was filed after a Maryland patient received the drug in the mail from Turkey with label instructions in Turkish.
The suit targeted an AFP called Rx Valet and several affiliated companies. Gilead also sued Meritain Health, which manages employee health plans and is part of CVS Health-owned Aetna, and Pro-Act, a pharmacy benefits manager.
"Meritain has long maintained a policy that it does not support programs for non-FDA-approved medications sourced from outside the United States and does not contract with companies to facilitate the importation of non-FDA-approved medications sourced from outside the United States," Aetna spokesperson Phil Blando said in a statement. "Despite this policy, Meritain was named as a defendant in a lawsuit filed by Gilead concerning international drug sourcing. Meritain strongly disputes the allegations and is vigorously defending itself against the complaint."
Rx Valet did not return a request for comment from CNBC.
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AFPs generally maintain the medicines they import from overseas are the same as ones sold in the U.S.
The court this week disagreed, finding that the differences between Gilead's U.S. medications and the international medications imported by defendants were "material, not theoretical," and that by importing medicines through unauthorized foreign channels, the defendants bypassed Gilead's supply chain.
"What Gilead sells in Turkey and what it sells in Maryland share a chemical formula but materially differ and travel through different quality-control system," the ruling said.
In a statement, a Gilead spokesman said the ruling helps protect patients by keeping medicines that are outside FDA oversight and quality safeguards out of the U.S. supply chain.
Shabbir Imber Safdar, executive director of the Partnership for Safe Medicines, a coalition of nonprofit and pharmaceutical industry groups, said the court's decision is clear that "you cannot import untraceable medicine with foreign-language labels, hand it to American patients, and call it equivalent to an FDA-approved medicine."
AIG spustila Parametric Cloud Outage Solution pro firemní klienty, která kryje ztráty z výpadků cloudu a SaaS a může vyplatit pojistné plnění po více než dvou hodinách.
Key Takeaways AIG launched a Parametric Cloud Outage Solution to cover losses from cloud and SaaS disruptions.The policy can trigger payments after outages exceed two hours, using Parametrix's live outage data.AIG sees an opportunity to grow cyber insurance and deepen its commercial client base as cloud usage rises. American International Group, I (AIG - Free Report) is expanding its cyber insurance offering with a new Parametric Cloud Outage Solution for eligible business clients. Developed with technology monitoring specialist Parametrix, the solution protects businesses against financial losses from disruptions involving cloud infrastructure and software-as-a-service (SaaS) providers. It combines cloud outage coverage with traditional cyber protection, giving businesses broader coverage under one policy.
The policy is designed to help businesses receive payments faster after a covered outage. Parametrix tracks more than 750 data centers and 9,000 cloud and software providers in real time, allowing AIG to verify covered outages using live data. If a covered outage lasts more than two hours, the policy can trigger a payment based on agreed terms, with no monetary retention after the waiting period. Businesses do not have to spend as much time documenting their actual losses, helping them access financial support more quickly following an unexpected technology shutdown.
Businesses are becoming increasingly dependent on cloud technology. Enterprise spending on cloud infrastructure reached $129 billion in the first quarter of 2026, up 35% from the year-ago level. A major outage can disrupt payments, customer services and daily operations. AIG is responding to this growing risk by expanding its cyber insurance capabilities. Its partnership with Parametrix also provides real-time data to help address emerging cloud risks.
The new solution could help the company expand its cyber insurance business and deepen relationships with commercial clients. As cloud dependence grows, the offering could support demand for AIG’s commercial insurance products. The near-term financial impact is likely to be modest. Still, the launch gives it another opportunity to diversify its commercial insurance portfolio and capture demand for protection against growing cloud-related risks.
AIG’s Stock Price PerformanceShares of AIG have lost 2.8% over the past six months compared to the industry’s 9.4% growth.
Image Source: Zacks Investment Research
AIG’s Zacks Rank & Key PicksAIG currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Finance space are The Travelers Companies, Inc. (TRV - Free Report) and Heritage Insurance Holdings, Inc. (HRTG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and First American Financial Corporation (FAF - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Travelers’ 2026 earnings is pegged at $33.82 per share, indicating 22.58% year-over-year growth. TRV beat earnings estimates in each of the trailing four quarters, with the average surprise being 41.68%. The consensus estimate for 2026 revenues is pinned at $48.82 billion.
The Zacks Consensus Estimate for Heritage Insurance’s 2026 earnings is pegged at $5.50 per share, which has seen two upward revisions over the past 30 days, with no downward revision. HRTG beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 81.49%. The consensus estimate for 2026 revenues is pegged at $860.96 million.
The Zacks Consensus Estimate for First American’s 2026 earnings is pegged at $7.02 per share, indicating 16% year-over-year growth. FAF beat earnings estimates in each of the trailing four quarters, with the average surprise being 23.58%. The consensus estimate for 2026 revenues is pinned at $8.16 billion, implying 9.45% year-over-year growth.
Key Takeaways AMC's Q2 revenues rose 14.2% to $1.6 billion, while adjusted EBITDA surged 70% to $321.4 million.Premium screens, higher guest spending and cost discipline are strengthening AMC's profitability.High leverage, equity dilution and an uneven earnings outlook make chasing the recent rally risky.
AMC Entertainment Holdings, Inc. (AMC - Free Report) stock has gained 27% over the past month as investors have reacted positively to its strong second-quarter 2026 performance and improving financial position. The stock has also outperformed the industry’s 9.8% increase.
AMC reported record quarterly revenues of $1.6 billion, up 14.2% year over year, while adjusted EBITDA surged 70% to $321.4 million. The company also generated $190.1 million in free cash flow, providing further evidence that its recovery is gaining momentum. Strong box-office trends, higher attendance, increased spending per customer and strict cost control were key drivers of the quarter.
However, over the same period, AMC stock has also underperformed other industry players, such as IMAX Corporation (IMAX - Free Report) and The Marcus Corporation (MCS - Free Report) .
Price Performance
Image Source: Zacks Investment Research
Strong Box Office and Movie Slate Support GrowthThe recovery in the theatrical market remains the biggest catalyst for AMC. More than 71 million guests visited its theaters worldwide during the second quarter, representing a 13.5% year-over-year increase. Domestic box-office revenues rose 10.7%, while AMC’s domestic ticket revenues increased 11.4%, allowing it to gain market share. European attendance was even stronger, rising nearly 18%.
Management expects 2026 to become the strongest post-pandemic year for the global and domestic box office. The upcoming movie lineup could provide another boost.
Higher Spending and Premium Formats Lift ProfitabilityAMC is benefiting not only from higher attendance but also from greater spending per guest. Food, beverage and merchandise revenues increased 15.3% in the second quarter, while other revenues grew 16.1%. Revenue per patron reached record levels across both U.S. and international operations.
Premium offerings are another important growth driver. AMC has expanded its IMAX, Dolby Cinema, XL and other premium screens. These formats command higher ticket prices and attract strong demand. During The Odyssey opening weekend, premium and extra-large screens accounted for only about 8% of AMC’s screens but generated more than 50% of its ticket gross for the movie.
AMC is also benefiting from loyalty programs. More than 40 million U.S. households have participated in AMC Stubs, while A-List membership exceeded 1.1 million at the end of the second quarter. A-List members accounted for about 20% of U.S. theater patronage, providing AMC with a more consistent customer base.
Cost Control and Debt Reduction Strengthen the RecoveryCost discipline has significantly improved AMC’s profitability. Adjusted EBITDA margin expanded to 20.1% from 13.6% a year earlier. Management noted that approximately two-thirds of incremental revenues flow through to EBITDA, highlighting the company’s operating leverage as sales recover.
AMC has also made progress on its balance sheet. During the quarter, it refinanced $400 million of debt due in 2027, converted $155.8 million of exchangeable debt into equity and raised additional capital. The company ended the quarter with $778 million of cash and does not expect significant debt principal payments before 2029.
What Could Halt AMC’s Rally?Despite the encouraging recovery, risks remain. AMC’s leverage is still high. Management said leverage has fallen below 6.5x but wants to eventually reach around 3x. Continued EBITDA growth and debt reduction will therefore be critical.
The company also remains dependent on box-office performance. AMC estimates that it needs roughly $10.4 billion in annual domestic box-office revenues to remain free-cash-flow positive over a 12-month period. Although the second quarter generated strong free cash flow, AMC has yet to achieve positive free cash flow for a full year.
Equity dilution is another concern. AMC conducted multiple equity raises during the quarter to strengthen liquidity and address debt obligations. While these measures improve financial flexibility, further stock issuance could pressure existing shareholders.
AMC’s Earnings and Sales EstimatesAMC’s earnings outlook remains mixed. The consensus loss estimate for 2026 has widened over the past 30 days, while the 2027 loss estimate has narrowed during the same period. On the revenue front, AMC’s sales are projected to increase 13.3% in 2026 and 2.8% in 2027 from the respective prior-year levels.
Image Source: Zacks Investment Research
In comparison, earnings for IMAX and Marcus are expected to grow 24.1% and 652.9%, respectively, in the current year. This indicates that AMC’s earnings recovery is expected to lag some of its industry peers.
AMC Trades at a DiscountDespite its recent stock rally, AMC continues to trade at a relatively attractive valuation based on the forward 12-month price-to-sales (P/S) ratio. The stock currently has a forward 12-month P/S multiple of 0.42X, which is below the industry average.
P/S (F12M)
Image Source: Zacks Investment Research
Wrapping UpAMC’s recent performance shows a meaningful operational recovery, supported by stronger box-office trends, higher customer spending, premium formats, cost discipline and balance-sheet improvements. However, the investment case remains mixed, as the company continues to face earnings pressure, high leverage and potential shareholder dilution. While AMC trades at a discount on a sales-based valuation, its earnings outlook still trails some industry peers, limiting the case for aggressively chasing the recent stock rally.
Investors who already own the stock may consider holding and waiting for further evidence of sustained cash-flow generation, continued debt reduction and stronger earnings momentum. Given the stock’s recent run-up and the remaining financial risks, new investors may be better off avoiding a fresh purchase for now and waiting for a more attractive entry point or clearer signs that the recovery can be sustained.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Broadcom klesá o 6 % poté, co Bank of America upozornila na až 370 miliard USD odhadovaného dluhu spojeného s jeho off-balance-sheet AI financováním. AMD naopak roste o 4 % po zvýšení cílové ceny od Baird na 1 250 USD.
Broadcom‘s (NASDAQ:AVGO | AVGO Price Prediction) stock is sinking 6% to $390.69 in early Friday afternoon trading, while Advanced Micro Devices (NASDAQ:AMD) stock is climbing 4% to $502.95. The split reaction within a single AI theme reveals opposing verdicts on how AI infrastructure gets financed.
A Bank of America (NYSE:BAC) note flagged a $370 billion estimate tied to Broadcom’s off-balance-sheet financing vehicle, while Baird issued a Street-high price target on AMD’s accelerator roadmap. Year-to-date through Thursday’s close, Broadcom stock was up 21% and Advanced Micro Devices stock was up 126%.
Broadcom Slides on AI Debt Vehicle Estimate Bank of America analyst Tom Curcuruto flagged that Broadcom’s chip-financing vehicle could reach $370 billion of senior debt by mid-2029 at 20-gigawatt scale, including roughly $150 billion of new issuance in 2027 alone. Per Broadcom’s latest 10-Q, an investor partner assumed the purchase and lease agreements, and Broadcom agreed to backstop lease payments for five years, with maximum exposure of up to $29 billion on the initial transaction.
The $370 billion isn’t Broadcom’s debt; the vehicle raises capital and leases custom AI accelerators to customers. Broadcom’s fiscal Q2 2026 revenue was $22.19 billion, up 47.9% year over year, with AI chip revenue up 143%, and management has guided to $16 billion of AI semiconductor revenue for the current quarter. Polymarket traders give Broadcom a 94% chance of topping $15 billion in AI revenue this quarter and a 78% chance of exceeding $16 billion, and today’s selloff targets the financing structure rather than underlying demand.
AMD Rallies on Baird’s Street-High $1,250 Call Baird analyst Tristan Gerra doubled his AMD price target to a Street-high $1,250 from $625 while maintaining Outperform. His model implies AMD AI GPU platform revenue reaching $147 billion by 2030 on 15% share of the data center AI accelerator TAM. Bank of America raised its 2030 server CPU market forecast to more than $210 billion, up from $170 billion this week and kept Advanced Micro Devices as its top pick.
Advanced Micro Devices stock initially fell after the Aug. 4 Q2 2026 report despite revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue more than doubling to $6.72 billion. The culprit was flat gross margin guidance of 56% for Q3 2026. Per prior 24/7 Wall St. coverage, the post-earnings drop was 9%.
AMD’s put-to-call open interest ratio has climbed to 1.15, and its 20-day Chaikin Money Flow reads -0.142, the weakest of 10 major chip names, while NVIDIA (NASDAQ:NVDA), Broadcom, Taiwan Semiconductor (NYSE:TSM) and Qualcomm (NASDAQ:QCOM) show accumulation. Options positioning hedges AMD even as sell-side targets rise.
Sector Move Confirms a Single-Name Story Intel (NASDAQ:INTC) stock is down 2%, and the iShares Semiconductor ETF (NASDAQ:SOXX) is down 0.7%. A broad semiconductor fund barely moving while Broadcom stock falls 6% and AMD stock rises 4% confirms that today is a repricing of individual balance sheets and analyst calls rather than the broader AI trade.
NVIDIA went public this week with a plan to collectively finance AI computing deals totaling roughly $500 billion, alongside Goldman Sachs (NYSE:GS), Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO), with KKR (NYSE:KKR), BlackRock (NYSE:BLK) and Brookfield (NYSE:BN) added days before. Jensen Huang clarified that NVIDIA’s support would cover as much as 25% of an opportunity, and no deals were signed at the time of the announcement. Broadcom’s structurally similar arrangement, anchored by Apollo and Blackstone, got a number attached Friday and the stock fell.
Broadcom’s vehicle launched in June when Apollo and Blackstone led a $35 billion financing for Broadcom’s AI XPV Platform. That deal funds more than 1 gigawatt of compute for Anthropic, with the platform sized to support more than 20 gigawatts for frontier AI labs through 2028. Blackstone has already sounded out investors for another transaction exceeding $30 billion.
What Investors Can Watch Next Investors can watch for whether Broadcom’s backstop exposure grows beyond the disclosed $29 billion as the AI XPV Platform scales toward 20 gigawatts. They can also check to see if NVIDIA’s $500 billion framework converts into signed contracts, since none were in place at announcement.
Additionally, traders may want to look for signs of AMD’s elevated put open interest unwinding without a price breakdown, suggesting hedgers were protecting gains rather than exiting. The key question is whether the market treats vendor-backstopped AI financing as reassurance for one company and risk for another. Investors should size their positions carefully given how quickly narratives around AI leverage are shifting.
Contact [email protected] for any questions or corrections.
CVS zvýšila výhled upraveného EPS pro rok 2026 na 7,90–8,10 USD po silném druhém čtvrtletí. Aetna zvedla upravený provozní zisk o 85,5 % a zlepšila poměr nákladů na péči na 87,4 %.
Key Takeaways CVS raised 2026 adjusted EPS guidance to $7.90-$8.10 after broad-based Q2 profit gains.CVS Aetna's adjusted operating income surged 85.5%, with its medical benefit ratio improving to 87.4%.CVS' higher cash flow supports leverage improvement, but medical costs and PBM changes remain key risks.
CVS Health (CVS - Free Report) raised its 2026 earnings and cash-flow outlook after a second quarter marked by stronger profitability across all operating segments. The improvement gives the company more room to rebuild margins after a difficult period for its Aetna insurance business.
The recovery is gaining traction, but the path is not risk-free. Medical-cost pressure, reimbursement changes and a changing pharmacy benefit manager environment could still test the durability of the higher outlook.
CVS Q2 Results Show Broad-Based ImprovementSecond-quarter adjusted earnings rose 42.5% year over year to $2.58 per share, while revenues increased 7.3% to $106.10 billion. Adjusted operating income advanced 35.4% to $5.16 billion, reflecting gains across all operating segments.
Health Care Benefits delivered the largest earnings improvement, while Health Services and Pharmacy & Consumer Wellness also posted higher adjusted operating income. That broader contribution matters because the recovery is not resting on a single business line.
CVS Raises Its 2026 Earnings and Cash OutlookCVS lifted its 2026 adjusted EPS guidance to $7.90-$8.10 from $7.30-$7.50. The company now expects consolidated revenues of at least $414 billion and adjusted operating income of $16.58-$16.92 billion.
Here’s where consensus estimates for the company’s revenues and earnings currently stand.
Image Source: Zacks Investment Research
Expected cash flow from operations also rose to at least $11.5 billion from at least $9.5 billion. The stronger cash outlook supports further leverage improvement after the company ended the second quarter with a leverage ratio of about 3.5 times.
CVS Aetna Turnaround Drives the RecoveryAetna's Health Care Benefits business is becoming a larger earnings contributor as pricing discipline and medical-cost management improve results. Second-quarter adjusted operating income reached $2.43 billion, up 85.5% year over year, while the medical benefit ratio improved to 87.4% from 89.9%.
CVS raised the segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above its prior guidance. Management expects the full-year medical benefit ratio to be about 89.75%, plus or minus 25 basis points, while continuing to take a prudent view of second-half medical costs.
CVS Risks Could Test the Raised GuidanceThe higher outlook does not remove execution risk. CVS expects the Health Care Benefits medical benefit ratio to rise materially through the second half, while reimbursement pressure continues in retail pharmacy and pharmacy services. Weakness in the 340B business is also expected to create a 2027 headwind.
Caremark faces another transition as regulatory changes and the shift toward net-cost pricing reshape pharmacy benefit manager economics. Management also expects lower Caremark membership in 2027 as it takes a more disciplined approach to contract renewals and some health-plan clients exit products or markets.
Peer results show that managed-care and pharmacy-services operators are also adjusting to changing cost and contracting conditions. UnitedHealth Group (UNH - Free Report) raised its 2026 adjusted earnings outlook after its second quarter, while The Cigna Group (CI - Free Report) increased its 2026 adjusted income outlook after reporting year-over-year revenue and earnings growth.
CVS Signals Support a Measured Recovery ViewCVS has clearer operating momentum than it did a year ago, led by Aetna's margin recovery, stronger pharmacy execution and higher cash generation. Still, the second-half medical-cost trajectory and 2027 pharmacy-services headwinds argue for a measured view rather than assuming the recovery is complete.
The stock currently carries a Zacks Rank #3 (Hold). CVS also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those favorable Style Scores point to attractive characteristics across valuation, growth and momentum, but the Zacks Rank keeps the near-term signal balanced as investors assess whether the higher guidance can translate into sustained.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Plug Power v pátek roste, protože BTIG uvedla, že celková hrubá marže se blíží bodu zvratu díky silné poptávce po palivových článcích pro materiálovou manipulaci a snižování nákladů. Firma zároveň zlepšuje likviditu prodejem aktiv a daňových kreditů, včetně prodeje projektu v Grahamu v Texasu za zhruba 77 milionů USD (s až 27 miliony USD navázanými na načasování konečného připojení) a asi 44 milionů USD z investičních daňových kreditů z louisianaského vodíkového závodu.
Plug Power Inc. (NASDAQ:PLUG) shares are trading higher on Friday as traders lean into gross margin breakeven progress and improving business mix.
Plug Power stock is moving in positive territory. Why are PLUG shares climbing? BTIG said the company’s overall gross margins are nearing breakeven, helped by strong Material Handling demand for fuel cells and ongoing cost cuts, while the firm’s analyst maintained a Neutral rating.
The note also flagged liquidity actions including the sale of the Graham, Texas project for about $77 million (with up to $27 million tied to final interconnection timing), plus about $44 million of investment tax credits sold from the Louisiana hydrogen plant.
Plug Power’s liquidity narrative is also being shaped by management’s plan to release about $50 million of restricted cash per quarter, lever traders are watching alongside efforts to mitigate cash burn.
"Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company," Plug CEO Jose Luis Crespo said.
The CEO said the company improved gross margins, reduced operating expenses, strengthened liquidity and had revenue growth in the quarter, alongside advancing commercial milestones.
Critical Price Levels To Watch For PLUGFrom a trend perspective, the stock is still trying to repair longer-term damage: it’s trading 3.8% below its 50-day SMA ($2.44), 15.9% below its 100-day SMA ($2.79), and 6% below its 200-day SMA ($2.50). The 20-day SMA ($2.14) is acting as near-term support with shares 9.7% above it, but the 20-day SMA remains below the 50-day SMA and the August death cross (50-day below 200-day) keeps the bigger-picture bias cautious.
Momentum is more balanced than the moving averages suggest, with RSI at 53.66—neutral and consistent with a stock that’s trying to base rather than trend cleanly. RSI is a quick way to gauge whether buying or selling has become "stretched," and this reading implies neither side has a strong momentum edge right now.
Key Resistance: $2.50 — a round-number area that also lines up closely with the 200-day moving average zone where rebounds can stall Key Support: $2.00 — a nearby round-number level that can attract dip buyers if the recent bounce fades PLUG Stock Price Movement on FridayPLUG Stock Price Activity: Plug Power shares were up 1.30% at $2.33 at the time of publication on Friday, according to Benzinga Pro data.
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JD.com uvedla, že její investice do AI už přinášejí měřitelné provozní zlepšení, hlavně v reklamě, zákaznické zkušenosti a logistice. Firma zatím finanční dopad nevyčíslila.
JD.com, Inc. (NASDAQ:JD) says its massive artificial intelligence (AI) spending is paying off, offering a rare bright spot as many global corporations struggle to turn AI adoption into bottom-line profits.
During its second-quarter earnings call, the Chinese e-commerce giant said its investments in generative AI are beginning to show results. Improved customer experience, advertising efficiency, and a reshaped cost structure are among the areas it mentioned.
“Our deep integration of AI is delivering measurable progress, enhancing customer satisfaction while structurally refining our cost structure,” CEO Sandy Ran Xu said during the earnings call.
Xu also pointed to AI-enhanced product search and recommendations, as well as supply chain operations. Rather than treating AI as a standalone initiative, JD.com is embedding the technology into day-to-day operations, she explained.
Advertising Is Emerging as a Key AI Use CaseAmong the areas seeing tangible benefits is JD.com’s advertising business.
CFO Ian Su Shan said the company has been “driving ad distribution efficiency by integrating AI into our algorithms,” which has improved how advertisements are matched with consumers and enhanced overall marketing effectiveness.
That matters because advertising is a higher-margin business than traditional online retail. As AI improves targeting and campaign performance, it could help drive both revenue growth and profitability without requiring a proportional increase in operating costs.
JD.com also said AI is supporting improvements in customer interactions and logistics, reinforcing its broader strategy of using automation to streamline operations rather than simply adding new AI-powered products.
A Sign That AI Spending Is Beginning to Pay OffThe comments come as investors increasingly question whether Big Tech’s multibillion-dollar AI investments can generate meaningful returns.
JD.com’s management suggested the company is beginning to move beyond the investment phase.
“These investments are gradually translating into operational benefits,” Shan said, adding that AI is contributing to improvements across multiple parts of the business instead of delivering value through a single application.
While the company did not quantify the financial impact of those gains, the earnings call offered one of its clearest indications yet that management considers AI to be a source of measurable operational improvement rather than simply a future growth initiative.
The AI, ROI DisconnectJD.com is defying broader corporate trends where AI spending has yet to translate into major bottom-line gains. According to 2025 research from McKinsey & Company, nearly eight in 10 companies using generative A.I. have reported "no significant bottom-line impact."
The core disconnect McKinsey flagged in mid-2025 is still very much alive heading into late 2026 — it just looks a little different now.
McKinsey’s own follow-up survey (fielded June–July 2025, a bit after the piece you cited) found adoption climbing even further, with 88% of organizations now using AI in at least one business function, up from 78% previously. But the value side barely budged: only 39% of respondents attribute any enterprise-level EBIT impact to AI at all, and most of those say it’s under 5% of EBIT.
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Akcie Cintas za poslední měsíc klesly asi o 2,7 % po zveřejnění výsledků. Ve 4. čtvrtletí fiskálního roku 2026 společnost překonala odhady zisku i tržeb a zvýšila výhled na fiskální rok 2027. Ve 4. čtvrtletí fiskálního roku 2026 Cintas vykázala zisk 1,29 USD na akcii a tržby 2,91 miliardy USD.
A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cintas' Q4 Earnings & Revenues Surpass Estimates, Increase Y/YCintas reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.
The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
Cintas’ Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.
Margin ProfileCintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.
Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.
Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.
Cintas’ Balance Sheet & Cash FlowExiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025.
In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.
The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.
Fiscal 2027 OutlookFor fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, Cintas has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Roper's Application Software revenues rose 8% to $1.18 billion in the second quarter of 2026.Aderant, Deltek and CentralReach are supporting segment growth through SaaS adoption and innovation.Roper expects Application Software organic revenue growth above mid-single digits through the rest of 2026. Roper Technologies, Inc. (ROP - Free Report) is witnessing persistent strength in the Application Software segment. In the second quarter of 2026, the Application Software segment accounted for nearly 56% of Roper’s total revenues. Segment revenues increased 8% year over year to $1.18 billion. Organic revenues also increased 5% in the same period.
Strength across its Aderant, Deltek, Vertafore and CentralReach businesses has been supporting the segment’s results. The growing adoption of SaaS solutions and continued GenAI innovation (collections, billing appeals, talent & time) are key catalysts to Aderant’s growth. Solid demand for SaaS solutions in the private sector bodes well for the Deltek business.
The Vertafore business is gaining from excellent enterprise delivery capabilities to the largest customers in the market, which has also resulted in strong annual recurring revenue (ARR) growth. Solid momentum in the CentralReach business, driven by higher recurring revenues, also bodes well for the segment.
Solid momentum in the project-based private sector, higher education, property and casualty insurance, and legal markets also bodes well for the segment’s growth. Roper expects the segment to maintain solid momentum by delivering organic revenue growth of more than mid-single digits for the rest of 2026. The Application Software segment is well-positioned to drive Roper’s long-term growth and profitability, supported by recurring subscription revenues, broader software adoption and ongoing product enhancements.
Segment Snapshot of ROP’s PeersAmong its major peers, Atlassian Corp.’s (TEAM - Free Report) AI-powered capabilities are seeing rapid adoption. Atlassian’s AI-powered Rovo platform and automation tools are boosting growth in its premium and enterprise offerings, driven by strong demand for AI-based workflows. Atlassian’s focus on adding generative AI features to its collaboration software is expected to support long-term revenue growth.
Roper's other peer, Autodesk, Inc.’s (ADSK - Free Report) performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites also bodes well for Autodesk. Autodesk’s aggressive push into cloud infrastructure and AI integration demands substantial capital deployment for data centers, computing resources and specialized talent acquisition.
ROP’s Price Performance, Valuation & EstimatesShares of Roper have gained 14% in the past month compared with the industry’s growth of 13.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 16.91X compared with the industry’s average of 18.93X. Roper carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased 4.7% over the past 60 days.
Image Source: Zacks Investment Research
Roper currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways RITM's Asset Management AUM reached $61 billion in Q2, up from $33 billion in 2023.Newrez's Q2 pre-tax operating income reached $307.6 million, while operating ROE improved to 22%.RITM had $2.4 billion of liquidity versus $40.2 billion of debt as of June 30, 2026.
Rithm Capital Corp. (RITM - Free Report) has gained 12.2% over the past month, sharpening the focus on whether operating momentum can keep supporting the rebound. RITM shares have outperformed the industry, which has gained 0.6% over the same period. The stock has also outperformed its peers, Annaly Capital Management, Inc. (NLY - Free Report) and PennyMac Mortgage Investment Trust (PMT - Free Report) , over the same period.
Price Performance
Image Source: Zacks Investment Research
Growth across asset management, Newrez and Genesis provides support for RITM’s operating performance. However, higher expenses, limited liquidity and mortgage-servicing volatility remain key risks. The recent share-price strength has yet to be matched by a meaningful improvement in earnings estimates.
RITM's One-Month Rally Meets a Mixed BackdropRITM's four-week gain of 12.2% contrasts with a 17.1% decline over the past 52 weeks. The Zacks Consensus Estimate for the current fiscal year has also moved 0.45% lower over the past four weeks, showing that price momentum has strengthened while the earnings-revision trend remains soft.
Mortgage-focused peers face similar rate sensitivity. Annaly reported a $109.4 billion portfolio in the second quarter of 2026, including a large Agency mortgage portfolio, while PennyMac invests primarily in residential mortgage loans and mortgage-related assets, including mortgage servicing rights.
Rithm's Fee-Based Growth Strengthens the StoryRithm’s Asset Management ended the second quarter with about $61 billion in assets under management (AUM), up from $33 billion in 2023. Rithm accelerated growth of its alternative asset management business by completing the acquisition of Sculptor Capital Management in November 2023.
The acquisition of Crestline in December 2025 added about $18 billion of AUM, while the platform has generated $10 billion of organic growth since 2023. Its asset management revenues increased 48.4% year over year to roughly $141 million, helped by higher incentive fee income.
AUM Growth Trend
Image Source: Rithm Capital Corp.
A larger fee-based contribution can broaden Rithm's earnings mix beyond balance-sheet-driven mortgage income. That shift could improve earnings durability over time if fundraising and investment performance continue to support asset growth.
RITM's Newrez Efficiency Gains Add SupportNewrez delivered $307.6 million in second-quarter pre-tax operating income, excluding mark-to-market and other non-operating items. Its annualized operating return on equity (ROE) improved to 22% from 19% in the first quarter, reflecting continued strength across the platform. Meanwhile, servicing unpaid principal balance increased to $865.2 billion.
Technology initiatives offer another efficiency lever. Management expects initiatives, HomeVision and ValonOS workflows to reduce direct fulfillment cost per loan to $787 in 2026 from $886 in 2025 and direct servicing cost per loan to $93 from $118.
Rithm Still Faces Liquidity and MSR RisksRithm had $2.4 billion of liquidity as of June 30, 2026, compared with $40.2 billion of total debt. The gap limits financial flexibility during periods of market stress, particularly as expenses remain elevated following platform expansion.
Mortgage servicing rights also create earnings volatility. In the second quarter of 2026, Rithm recorded a $392.9 million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.
RITM's Valuation Could Support Further UpsideRITM trades at 4.62X forward 12-month earnings, well below the 17.03X multiple for its Zacks sub-industry. That discount provides a valuation cushion and leaves room for multiple expansion if operating gains prove durable.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Rithm also trades below its five-year median forward P/E of 6.1X, indicating a discount to its historical valuation. It is also inexpensive compared with Annaly and PennyMac, which trade at forward 12-month P/E multiples of 7.59X and 7.26X, respectively.
The improving earnings outlook further supports the valuation case. The Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward over the past week, suggesting analysts are becoming more constructive as collections and portfolio revenues improve.
Estimate Revision Trend
Image Source: Zacks Investment Research
RITM's Signals Temper the Momentum CaseRITM's recent rally has more operating support than price action alone suggests, but the earnings-revision and balance-sheet signals remain mixed. Asset management growth and Newrez efficiency gains are constructive, while liquidity and mortgage-servicing volatility keep the near-term case balanced.
The stock currently carries a Zacks Rank #3 (Hold), which is consistent with a neutral near-term stance. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Value Score of B supports RITM's valuation case, but the Growth Score of F, Momentum Score of F and VGM Score of D show why caution still matters. The combination suggests RITM's case is strongest on valuation and operating momentum rather than a broad-based growth and momentum profile, making continued execution and balance-sheet discipline central to sustaining the current setup.
Rithm Capital má nízké ocenění, ale rostoucí náklady a vysoký dluh zůstávají rizikem. Ve 2Q 2026 investovatelná aktiva přesáhla 100 miliard USD, zatímco provozní náklady vzrostly o 34 % meziročně na 1,28 miliardy USD.
Key Takeaways RITM trades at 4.62X forward earnings, well below its 17.03X Zacks sub-industry multiple.RITM's investable assets exceeded $100 billion in Q2 2026, including $61 billion in AUMOperating expenses rose 34% y/y, while liquidity stood at $2.4 billion against $40.2 billion of debt.
Rithm Capital Corp. (RITM - Free Report) presents a balanced investment case. The stock appears inexpensive, while the company is broadening its earnings base through mortgage operations, residential lending and asset management.
However, higher expenses, limited liquidity and mortgage servicing rights exposure could constrain the upside. These risks keep the risk-reward profile balanced and suggest that the low valuation alone is not a sufficient bullish signal.
RITM's Valuation Looks Cheap on Forward EarningsRITM trades at 4.62X forward 12-month earnings, well below the 17.03X multiple for its Zacks sub-industry. The stock also trades below its five-year median forward multiple of 6.12X, reinforcing the valuation argument.
Price-to-Earnings F12M
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Annaly Capital Management, Inc. (NLY - Free Report) and Ellington Financial Inc. (EFC - Free Report) are part of the broader mortgage finance peer group, offering investors additional names for comparison. At present, NLY holds a forward 12-month P/E ratio of 7.59X, while EFC's forward 12-month P/E ratio stands at 6.79X.
That relative discount supports the value case and is consistent with RITM’s Value Score of B. Still, the low multiple could persist as investors remain cautious about leverage, higher costs and earnings volatility.
Rithm's Growth Engines Are BroadeningRithm has built a wider platform around Newrez, Genesis, Sculptor and Rithm Asset Management. Investable assets exceeded $100 billion in the second quarter of 2026, including $61 billion of assets under management (AUM).
The Crestline and Paramount acquisitions have strengthened its fee-based asset management capabilities and expanded its commercial real estate exposure. A larger fee-based business could reduce reliance on balance-sheet-driven mortgage income, although sustained growth will depend on investment performance and continued capital formation.
RITM's Expense and Liquidity Risks Stay ElevatedRithm’s cost structure has come under pressure as it continues to expand its platform. Total operating expenses rose 34% year over year to $1.28 billion in the second quarter. Higher compensation, benefits and integration costs could limit margin expansion if revenue growth does not keep pace.
Liquidity remains another constraint. Rithm had $2.4 billion of total liquidity against $40.2 billion of total debt as of June 30, 2026. This relatively limited liquidity buffer could reduce financial flexibility during periods of market stress or heightened volatility.
Rithm's Earnings Outlook Remains MixedThe Zacks Consensus Estimate points to a mixed earnings outlook. Earnings are projected to decline 3.8% year over year in 2026 before increasing 1.18% in 2027. However, estimates for both years have been revised upward over the past week, suggesting improving analyst sentiment.
Estimate Revision Trend
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Sales expectations are more encouraging. The Zacks Consensus Estimate for sales is pegged at $5.84 billion for 2026 and $6.34 billion for 2027, implying year-over-year growth of 33.21% and 8.66%, respectively.
Revenue Estimates
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RITM's Risk-Reward Case Calls for SelectivityRithm's trailing 12-month return on equity (ROE) stands at 19.86%, well above the industry's 5.70%, while its dividend yield is 9.65%. The strong profitability and income profile, along with a growing fee-based business, could appeal to value and income-oriented investors despite balance-sheet concerns.
Dividend Yield
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Peer context also highlights Rithm’s income profile. Annaly focuses on residential mortgage finance and offers a 12.83% dividend yield, while Ellington Financial invests across mortgage loans, mortgage-backed securities, consumer loans and other credit assets and offers an 11.4% yield. Rithm’s broader platform provides multiple earnings engines, although mortgage servicing rights volatility, rate sensitivity and higher costs remain key risks.
RITM's Mixed Signals Favor a Measured ViewRITM's inexpensive valuation and diversified operating platforms provide support, but rising expenses, heavy debt and mortgage servicing rights volatility argue against treating the stock as a straightforward bargain. The setup favors patience and selectivity rather than an aggressive buy decision based on valuation alone.
RITM 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 has a Value Score of B, but its Growth Score of F, Momentum Score of F and VGM Score of D point to weaker growth and price-trend characteristics. This combination highlights RITM’s attractive valuation while reinforcing that the bullish case depends on improving earnings trends and continued execution.
Investor interest has been reflected in the stock’s recent performance. Over the past three months, RITM shares have gained 14%, against the industry’s decline of 0.1%. While the recent strength supports the value case, the stock’s mixed scores and elevated balance-sheet risks suggest that further gains will require sustained fundamental improvement.
Price Performance
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Rithm Capital udržel čtvrtletní dividendu 25 centů na akcii; zisk k rozdělení ve 2Q 2026 byl 60 centů na akcii. Firma ale čelí vyšším nákladům a má likviditu 2,4 miliardy USD proti dluhu 40,2 miliardy USD.
Key Takeaways RITM's 60-cent Q2 EAD per share more than doubled its 25-cent quarterly dividend.Asset management revenues rose 48.4% y/y to $141 million, with AUM reaching roughly $61 billion.RITM's $2.4 billion liquidity versus $40.2 billion debt raises concerns over dividend flexibility. Rithm Capital Corp. (RITM - Free Report) recently maintained its quarterly cash dividend at 25 cents per share, supporting a dividend yield of roughly 9.6%, well above the industry average of 1.6%. The significantly higher yield strengthens the stock’s income appeal.
Dividend Yield
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However, higher costs, elevated debt and mortgage-related volatility could pressure earnings and liquidity. For income-focused investors, the key question is whether RITM can sustain its attractive payout while managing these pressures.
RITM's Dividend Has Strong Earnings CoverageRithm’s earnings available for distribution have covered common dividends for 27 consecutive quarters, underscoring the consistency of its payout coverage.
In the second quarter of 2026, earnings available for distribution (EAD) were 60 cents per share, more than double the 25-cent quarterly dividend. The 35-cent per-share cushion provides solid coverage, despite lower GAAP earnings due to fair-value movements and other items.
Rithm's Fee-Based Growth Could Support the PayoutAsset management is becoming a larger contributor to Rithm’s earnings mix. Second-quarter asset management revenues increased 48.4% year over year to about $141 million, while assets under management (AUM) reached roughly $61 billion.
A larger fee-based business can broaden earnings sources beyond balance-sheet investing and mortgage activity. Continued asset growth and fee generation could add support for distributions, although the pace will depend on investment performance and capital formation.
RITM's Higher Costs Could Pressure Dividend FlexibilityRithm’s total operating expenses increased 34% year over year to $1.28 billion in the second quarter of 2026. The cost base has expanded following the Crestline and Paramount/Elecor acquisitions, while compensation, benefits and integration costs remain elevated.
Higher expenses could weigh on dividend flexibility. If revenue growth fails to keep pace with the expanded cost base, less excess earnings may be available to absorb market volatility or support shareholder distributions.
Rithm's Liquidity Position Adds a Key RiskRithm had about $2.4 billion of liquidity against $40.2 billion of total debt as of June 30, 2026. This liquidity-to-debt gap makes steady cash generation and continued access to financing important, particularly during periods of market volatility or economic stress.
While Rithm’s leverage supports a diversified operating platform, its liquidity position appears less robust than those of peers, Annaly Capital Management, Inc. (NLY - Free Report) and AGNC Investment Corp. (AGNC - Free Report) . NLY had $9.6 billion in assets available for financing as of June 30, 2026, including $5.5 billion in cash and unencumbered Agency MBS, while AGNC had $7.5 billion of liquidity. These stronger liquidity cushions provide greater balance-sheet flexibility during market stress, making Rithm’s sizable debt load a key risk even if distributable earnings remain sufficient to cover the dividend.
RITM's MSR Exposure Could Make Coverage VolatileNearly 20.5% of Rithm’s total assets were tied to mortgage servicing rights and related financing receivables as of June 30, 2026. The second quarter also included a $392.9 million negative fair-value adjustment on these assets, net of economic hedges.
This concentration leaves earnings exposed to interest-rate movements, mortgage spreads and prepayment trends, which can cause significant quarter-to-quarter swings. Annaly, with exposure to mortgage servicing rights, and AGNC Investment, focused primarily on Agency residential mortgage-backed securities, face similar sensitivity to changing market conditions. For Rithm, such volatility could make consistent earnings coverage of the dividend more challenging when conditions deteriorate.
RITM's Signals Keep the Income Case BalancedThe bottom line remains balanced. Rithm’s dividend is well covered by current distributable earnings, but rising costs, limited liquidity relative to debt and mortgage-servicing rights volatility remain key offsets. The 9.6% yield is attractive, but its sustainability depends on Rithm maintaining earnings power across its capital-intensive businesses.
RITM currently carries a Zacks Rank #3 (Hold), pointing to a neutral near-term earnings outlook. That fits a setup in which the dividend remains well supported, but investors may still want confirmation that earnings and liquidity can withstand market pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past three months, RITM shares have gained 14% against the industry’s 0.1% decline.
Price Performance
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Its Value Score of B supports the valuation and income profile, while its Growth Score of F and Momentum Score of F point to weaker growth and price-trend characteristics. The VGM Score of D keeps the broader style picture cautious, reinforcing the need to weigh payout strength against these offsets.
Elevance Health ve 2. čtvrtletí zvýšila upravený EPS na 7,45 USD a tržby vzrostly o 0,8 % na 49,8 mld. USD. Firma zároveň zvedla výhled upraveného EPS pro rok 2026 na alespoň 27,00 USD.
It has been about a month since the last earnings report for Elevance Health (ELV - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Elevance Health due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Elevance Health, Inc. before we dive into how investors and analysts have reacted as of late.
ELV Beats Q2 Earnings Estimates on Higher CarelonRx Product Revenues
Elevance Health reported second-quarter 2026 adjusted earnings per share (EPS) of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year.
Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%.
The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in overall medical membership and an elevated expense level.
ELV’s Q2 Operational UpdateAs of June 30, 2026, Medical membership of Elevance Health was around 44.9 million, which dipped 1.5% year over year. The decrease was due to the expected loss of some commercial fee-based customers and a decline in Individual ACA and Medicaid membership. The reported figure beat the Zacks Consensus Estimate of 44.8 million and our estimate of 44.5 million.
Premiums totaled $41.3 billion in the quarter under review, which remained flat year over year and surpassed our estimate of $39.3 billion. Product revenues grew 3.7% year over year to $6.3 billion, marginally missing the Zacks Consensus Estimate by 0.9% and our estimate by 0.5%.
Net investment income rose 44.9% year over year to $704 million. The Adjusted operating margin of 3.6% deteriorated 140 basis points (bps) year over year.
Total expenses escalated 2.2% year over year to $48.5 billion in the second quarter, higher than our estimate of $46.7 billion. The year-over-year increase was due to higher cost of products sold, operating expenses and interest expenses.
The operating expense ratio was 11.1%, which increased 100 bps year over year. The benefit expense ratio increased 80 bps year over year to 89.7%.
Q2 Segmental Results of ELVHealth BenefitsThe unit recorded operating revenues of $42.7 billion in the second quarter, which rose 2.7% year over year and beat the Zacks Consensus Estimate of $41.2 billion as well as our estimate of $40.7 billion. The segment benefited from increased premium yields.
The unit recorded an operating gain of $0.9 billion, which fell 43.8% year over year. It also missed the consensus mark of $1 billion. The operating margin deteriorated 170 basis points year over year to 2.1%.
CarelonThe segment’s operating revenues rose 6.1% year over year to $19.2 billion in the quarter under review, beating the Zacks Consensus Estimate of $18.4 billion and our estimate of $18.3 billion. The year-over-year increase was driven by higher CarelonRx product revenues and the scaling of risk-based capabilities in Carelon Services.
The unit’s operating gain of $0.9 billion was up 1% year over year, reflecting better profitability in specialty pharmacy. The operating margin deteriorated 30 bps year over year to 4.9%.
Corporate & OtherOperating revenues amounted to $6 million. The unit incurred an operating loss of $81 million, wider than the prior-year quarter’s loss of $71 million.
ELV’s Financial Details (As of June 30, 2026)Elevance Health exited the second quarter with cash and cash equivalents of $10.2 billion, which advanced 7.8% from the 2025-end level. Total assets of $126.4 billion increased 4.1% from the figure as of 2025-end.
Long-term debt, less the current portion, amounted to $30.7 billion and fell 0.4% from the figure as of Dec. 31, 2025. There were no short-term borrowings at the end of the second quarter, while the current portion of the long-term debt amounted to $375 million.
Total equity of $45 billion was up 2.3% from the 2025-end level.
Elevance Health generated net cash flow from operations of $6.2 billion at the end of the second quarter of 2026. The figure rose from the prior-year figure of $3.1 billion.
ELV: Capital Deployment UpdateElevance Health bought back shares worth $0.7 million in the second quarter. It had a leftover capacity of around $5.3 billion under its share buyback authorization as of June 30, 2026.
Elevance Health paid a quarterly dividend of $1.72 per share, adding up to a cash distribution worth $373 million.
ELV’s Revised 2026 OutlookThe company now expects adjusted EPS to be at least $27.00, up from the previous guidance of at least $26.75.
The operating margin for the Health Benefits segment was earlier estimated to witness a decrease of 50-25 bps from the 2025 reported figure. Also, the operating margin for CarelonRx was expected to see a 25-0 bps decline, while the same for Carelon Services was estimated to witness an increase of 0-25 bps.
Management had earlier projected operating revenues to witness a low-single-digit decline in 2026 from the 2025 level. Premium revenues were estimated to witness a mid-single-digit decline from the 2025 level. Medical enrollment was forecasted to be between 43.2 million and 43.9 million in 2026.
Net investment income was expected to be $1.9 billion. Interest expenses were forecasted to be $1.5 billion in 2026, while operating cash flow guidance raised to at least $6.0 billion. Diluted shares are estimated to be 219-220 million.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresAt this time, Elevance Health has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Elevance Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Key Takeaways Zscaler plans higher CapEx as AI adoption drives demand for more infrastructure and secure workloads.ZS posted 25% revenue growth in Q3, while AI Protect generated more than $100 million in 12-month bookings.Zscaler cut FY26 free cash flow margin guidance to 22.8%-23.3% as CapEx pressures cash flow. Zscaler, Inc. (ZS - Free Report) is preparing for higher capital expenditures as the rapid adoption of artificial intelligence (AI) creates new cybersecurity demands. The company needs to expand its infrastructure to handle increasing data volumes and secure AI workloads, but the added spending could pressure free cash flow in the near term.
Management previously indicated that fiscal 2026 capital expenditures could reach the high-single-digit percentage range of revenues, up from its earlier mid-single-digit forecast. CapEx could increase by another 200 basis points as a percentage of revenues in fiscal 2027. Higher costs for memory, storage and processors are expected to drive much of the increase. To manage these costs, Zscaler has been moving some fiscal 2027 equipment purchases into the fourth quarter of fiscal 2026 to secure current prices.
The bigger question is whether AI-driven demand can generate enough growth to justify the investment. So far, the signs are encouraging. Zscaler’s third-quarter fiscal 2026 revenues increased 25% year over year to $850.4 million, while annual recurring revenues also rose 25% to $3.53 billion. Its AI Protect solution generated more than $100 million in bookings over the past 12 months, showing that AI security is moving beyond an early-stage opportunity.
Zscaler also has enough financial strength to support higher spending. The company generated free cash flow of $136 million in the third quarter and $718.4 million in the first nine months of fiscal 2026. Free cash flow margin for the first three quarters of fiscal 2026 was 29%. However, rising capital expenditure is likely to hurt the company’s cash flow. During the last quarterly results, management lowered its fiscal 2026 free cash flow margin guidance range to 22.8%-23.3% from the earlier forecast of 26.5%-27%.
Higher CapEx creates a near-term financial headwind, but strong AI security demand could make the investment worthwhile if Zscaler converts infrastructure spending into sustained revenue growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates year-over-year revenue growth of 24.6% and 16.9%, respectively.
How Are ZS’ Rivals Investing to Capture AI Security Growth?Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) are taking a different approach to the AI security opportunity. Rather than relying heavily on physical infrastructure spending, both companies are directing more resources toward software, product development and acquisitions.
Palo Alto Networks has been expanding its AI and identity security capabilities through major acquisitions, including buyout deals for agentic security firm Portkey, endpoint specialist Koi Security, and major identity play CyberArk Software.
PANW has also been directing investment toward software integration, such as its Cortex XSIAM platform and Prisma AIRS AI Gateway. The company has also collaborated with AI infrastructure leaders like NVIDIA through which it is embedding security directly into AI infrastructure. This strategy allows Palo Alto Networks to pursue AI growth without relying primarily on higher traditional CapEx.
CrowdStrike is following a similar software-focused model. Its non-GAAP research & development spending jumped 25.3% year over year to $273.4 million in the first quarter of fiscal 2027.
The company has also strengthened its AI security portfolio through acquisitions, including SGNL in January 2026 and Pangea in September 2025. Pangea added AI detection and response capabilities to Falcon, helping CrowdStrike protect AI data, models, agents, identities and infrastructure.
Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 16.7% year to date, while the Zacks Security industry surged 85%.
Zscaler YTD Price Return Performance
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From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 7.77, significantly below the industry’s average of 18.85.
Zscaler Forward 12-Month P/S Ratio
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The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 26.2% and 10.7%, respectively. Estimates for fiscal 2026 have remained unchanged over the past 60 days, while fiscal 2027 estimates have been revised upward in the past 30 days.
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Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kratos Defense ve 2. čtvrtletí zvýšila tržby o 30,5 % na 458,8 milionu USD a její nabídky a návrhy dosáhly zhruba 15 miliard USD. Poměr book-to-bill 1,3:1 naznačuje rostoucí objem nevyřízených zakázek.
Key Takeaways Kratos Defense posted 30.5% revenue growth as broad-based gains lifted second-quarter results.Kratos Defense's bid pipeline grew to $15B, while a 1.3-to-1 book-to-bill points to rising backlog.KTOS targets hypersonics, propulsion, unmanned systems, missiles and space as defense spending increases.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) appears to be building a stronger foundation for sustained growth as increasing defense demand translates into new contract awards and a growing pipeline of potential opportunities. During the second quarter of 2026, the company generated $458.8 million in revenues, up 30.5% year over year, while organic revenues increased 19.1%. The strong performance was supported by broad-based growth across Kratos Government Solutions.
The most notable indicator of Kratos Defense’ future growth potential is its approximately $15 billion bid and proposal pipeline. The opportunity pipeline increased from $14.3 billion at the end of the first quarter, reflecting a growing number of potential programs that could eventually become contract awards. While the pipeline does not represent secured revenues, its expansion provides evidence of the significant addressable opportunity available to the company.
KTOS is targeting several markets where government spending is increasing, including hypersonics, propulsion, unmanned systems, missile systems, space and advanced defense technologies. The company believes these markets are positioned for continued investment as the U.S. military modernizes its capabilities and seeks systems that can be produced at greater scale and lower cost.
This creates an important potential growth cycle: new contract awards increase backlog, production ramp us convert backlog into revenues, and successful program execution can create opportunities for additional awards. Kratos Defense’s current 1.3-to-1 book-to-bill ratio suggests that this cycle is already developing.
If the company continues converting opportunities into awards while successfully expanding production capacity, its $15 billion pipeline could become an increasingly important source of revenue growth and potentially support a stronger earnings trajectory over the coming years.
Companies Gain From Growing Demand for Next-Generation SystemsThe increasing U.S. focus on unmanned systems, hypersonics, propulsion, and other advanced defense technologies could also benefit defense companies with significant exposure to these markets, as discussed below:
Northrop Grumman (NOC - Free Report) has significant exposure to autonomous systems, strategic programs, space and advanced defense technologies, while AeroVironment (AVAV - Free Report) is positioned more directly toward unmanned aircraft and autonomous systems.
KTOS Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share indicates an increase of 49.09% year over year.
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KTOS Stock Trades at a DiscountIn terms of valuation, KTOS’ forward 12-month price-to-sales (P/S) is 5.78X, a discount to the industry’s average of 8.68X.
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KTOS Stock’s Price PerformanceIn the past three months, KTOS’ shares have risen 14.3% compared with the industry’s 0.7% growth.
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KTOS’ Zacks RankThe company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways iRhythm will acquire VitalConnect for about $287.5 million, with closing expected by the end of 2026.VitalConnect adds MCT, multi-vitals monitoring and up to 30-day patient monitoring to iRhythm's portfolio.The deal is expected to boost iRhythm's revenue growth rate starting in 2027 and broaden its care reach.
iRhythm Holdings,Inc. (IRTC - Free Report) recently announced that it will acquire Vital Connect, Inc., a leader in wearable biosensor technology and ambulatory cardiac monitoring. The transaction is expected to expand iRhythm’s addressable market and accelerate its evolution from ambulatory cardiac monitoring into a broader cardiac monitoring and intelligence platform spanning ambulatory, inpatient and hospital-to-home care.
Per management, the acquisition marks an important milestone in iRhythm’s transition from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform. The addition of VitalConnect’s mobile cardiac telemetry (MCT), multi-vitals and hospital monitoring capabilities complements the Zio platform, expands the company’s patient and customer reach, and creates opportunities to accelerate growth, strengthen customer relationships and serve patients across a wider continuum of care.
Likely Trend of IRTC Stock Following the NewsShares of IRTC have lost 4% since the announcement on Aug. 6. Year to date, shares of the company have declined 30.6% against the industry’s 4.4% growth and the S&P 500’s 13.6% gain.
In the long run, the acquisition of VitalConnect could strengthen iRhythm’s growth prospects by broadening its cardiac monitoring portfolio and expanding its reach across different care settings. The combination of VitalConnect’s monitoring technologies with iRhythm’s established Zio platform and commercial infrastructure could create new revenue opportunities, strengthen relationships with healthcare providers and support wider adoption. The expanded portfolio also positions iRhythm to capture demand across ambulatory, inpatient and remote care markets, supporting its transition toward a more comprehensive cardiac monitoring platform.
IRTC currently has a market capitalization of $4.13 billion.
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More on the NewsThe acquisition broadens iRhythm’s cardiac monitoring capabilities by adding VitalConnect’s FDA-cleared platform, which supports multiple monitoring modalities, including MCT, as well as multi-vitals monitoring. VitalConnect offers capabilities including up to 30-day patient monitoring, four-in-one functionality, flexible service models and live look-in.
Together with Zio AT and iRhythm’s planned next-generation MCT offering, the combined portfolio is expected to provide clinicians with greater flexibility across different workflows and care settings. VitalConnect’s biosensor platform can monitor up to 11 physiological parameters, extending iRhythm’s reach into inpatient monitoring, remote patient monitoring and hospital-to-home care.
The transaction also combines complementary technology and expertise. VitalConnect contributes wearable biosensors, AI-enabled algorithms and cloud-based workflows, while iRhythm brings cardiac diagnostic expertise, clinical operations, proprietary algorithms and a scaled commercial platform. The integration could support faster product innovation and enable comprehensive solutions for health systems.
Financial Outlook of AcquisitioniRhythm will acquire VitalConnect for approximately $287.5 million, comprising $237.5 million in cash and approximately $50 million in iRhythm common stock. The company will provide up to $30 million in interim working capital financing to support VitalConnect’s operations before closing. The acquisition is anticipated to close by the end of 2026 and expected to be accretive to iRhythm’s revenue growth rate beginning in 2027.
Industry Prospects Favoring the MarketGoing by the data provided by Mordor Intelligence, the cardiac monitoring market is predicted to be valued at $29.1 billion in 2026 and is expected to witness a CAGR of 5.04% through 2035.
Factors like the rising prevalence of cardiovascular diseases, growing geriatric population, technological advances in wireless & wearable devices, expansion of AI-enabled predictive analytics, reimbursement shift to ambulatory continuous monitoring, as well as increasing awareness and screening programs for heart health, are boosting the market’s growth.
Other NewsiRhythm recently delivered strong second-quarter 2026 results with solid earnings and revenue growth. The quarter reflected broad-based commercial momentum across cardiology, primary care, innovative channels and international markets. Innovative channels were the fastest-growing area, supported by value-based care, primary care and population health partnerships.
The company secured FDA clearance for its third-generation algorithm, expected to reduce technician review time by up to 50% and generate approximately $100 million in cumulative savings over five years. iRhythm is also advancing predictive arrhythmia solutions and expanding its Zio platform.
IRTC’s Zacks Rank & Key PicksIRTC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
WM snížila výhled výnosů na rok 2026 na 26,275–26,475 miliardy USD kvůli očekávanému poklesu objemů Collection and Disposal téměř o 1 %. Zároveň zvýšila výhled upravené marže EBITDA na 31 %–31,2 %.
Key Takeaways WM cuts 2026 revenue guidance as Collection and Disposal volumes are expected to decline nearly 1%.WM raises its adjusted EBITDA margin outlook to 31%-31.2% while keeping its EBITDA target unchanged.WM maintains $3.75-$3.85 billion in 2026 free cash flow guidance after a 56% first-half increase.
WM (WM - Free Report) lowered its 2026 revenue outlook after second-quarter results as weaker Collection and Disposal volumes became the main pressure point. The revised guidance shifts investor attention from top-line growth to the durability of margins and cash flow.
Pricing, productivity and faster-growing businesses are doing more of the work. The question is whether those levers can keep earnings momentum intact while core volumes remain soft.
WM Cuts Revenue Guidance as Volumes WeakenWM now expects 2026 revenues of $26.275-$26.475 billion, down from the prior $26.43-$26.63 billion range. Management attributed the reduction mainly to lower volume expectations, partly offset by higher energy surcharges.
Collection and Disposal volumes are expected to decline nearly 1% for the full year. Management expects relatively flat volumes in the second half, leaving volume softness as the clearest constraint on the revised outlook.
Waste Management Raises Its Margin ExpectationsThe weaker revenue forecast did not alter WM’s adjusted operating EBITDA target of $8.15-$8.25 billion. The company instead raised its adjusted operating EBITDA margin outlook by 20 basis points to 31%-31.2% from 30.8%-31%.
That combination points to confidence in pricing, cost flexibility and productivity. Maintaining the EBITDA range despite lower revenues suggests WM expects operating discipline to absorb part of the volume drag.
WM’s Second Quarter Shows the Margin PlaybookSecond-quarter revenues increased 4% year over year to $6.68 billion, supported by a 5.7% core price increase. Adjusted operating EBITDA margin expanded 40 basis points to 30.9% even as Collection and Disposal volume declined 1.8%.
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Adjusted earnings of $2.02 per share beat the Zacks Consensus Estimate of $1.99 by 1.5%. Collection operating costs rose less than 1.7% despite labor cost increases of about 4%, illustrating how pricing and productivity are protecting profitability.
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Waste Management’s Newer Businesses Add SupportCombined adjusted operating EBITDA from recycling and renewable energy increased 32.5% year over year, driven by higher recycling volumes, automation efficiencies and increased renewable natural gas production. Healthcare Solutions lifted its adjusted operating EBITDA margin to 19% from 17%.
Republic Services, Inc. (RSG - Free Report) also operates across recycling, solid waste and environmental services, while Clean Harbors, Inc. (CLH - Free Report) provides hazardous-waste, industrial and recycling services. Those business mixes show how environmental-services companies can broaden earnings sources beyond traditional collection activity.
WM’s Cash Flow Outlook Raises the StakesWM maintained 2026 free cash flow guidance of $3.75-$3.85 billion after generating $2.02 billion in the first half, up more than 56% year over year. Operating cash flow reached $3.23 billion over the same period.
Cash generation supports capital investment, integration spending and shareholder returns, but leverage remains relevant. WM ended the second quarter at 2.96 times leverage, while current debt was $1.08 billion and long-term debt was $22.28 billion.
WM’s Ratings Reflect a Balanced 2026 SetupWM’s 2026 setup remains balanced. Margin expansion and cash generation are offsetting softer volumes, but they do not remove leverage and execution risks tied to the revised revenue outlook.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its VGM Score of B, Growth Score of B and Momentum Score of B point to favorable characteristics in those styles, while the Value Score of C is more neutral. Together, the ratings support a measured view as investors assess whether margin gains can continue to offset weaker volumes.
WM v 1. pololetí 2025 zvýšila volný cash flow o více než 56 % na 2,02 miliardy USD. Růst marží podpořilo zdražování, ale akcie se dál obchodují za prémiové ocenění.
Key Takeaways WM's adjusted EBITDA rose 5.5% as pricing offset a 1.8% decline in Collection and Disposal volume.WM trades above its sub-industry EV/EBITDA multiple, raising the execution bar for future performance.WM generated $2.02 billion in first-half free cash flow, up more than 56% year over year.
Waste Management, Inc. (WM - Free Report) combines a defensive waste-services franchise with improving profitability and rising cash generation. Second-quarter execution held up despite softer Collection and Disposal volumes, helped by pricing and operating efficiencies.
The question is whether that quality justifies a premium valuation while debt and near-term liquidity remain constraints. Investors must weigh durable earnings growth against the price already reflected in the shares.
WM’s Pricing Power Keeps Profitability Moving HigherWM’s second-quarter core price increased 5.7%, while Collection and Disposal yield improved 3.6%. Those gains helped offset a 1.8% decline in Collection and Disposal volume, partly reflecting the prior-year wildfire cleanup comparison.
Adjusted operating EBITDA rose 5.5% year over year to $2.07 billion, and the adjusted margin expanded 40 basis points to 30.9%. Excluding the prior-year wildfire contribution, adjusted operating EBITDA growth was 9.1%.
Waste Management Has More Than One Growth EngineRecycling and renewable energy are adding growth beyond the core collection network. Combined adjusted operating EBITDA from those businesses increased 32.5% year over year as recycling volumes, automation efficiencies and renewable natural gas production improved.
Healthcare Solutions’ operating EBITDA margin reached 19%, up 200 basis points year over year. Cross-selling had generated $32 million of annual operating EBITDA, adding another source of integration benefits.
WM’s Valuation Leaves Less Room for DisappointmentWM trades at 14.3X trailing 12-month enterprise value to EBITDA, above the Zacks sub-industry’s 12.5X and its own five-year median of 15X. It also carries a 25.7X forward price-to-earnings multiple and a PEG ratio of 2.57.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
The premium raises the execution bar. Republic Services, Inc. (RSG - Free Report) offers recycling, waste and environmental solutions. Clean Harbors, Inc. (CLH - Free Report) provides hazardous and non-hazardous material management and industrial services, giving investors another environmental-services comparison.
Waste Management Still Faces Balance Sheet PressureAt June 30, 2026, WM had $22.28 billion of long-term debt and $1.08 billion of current debt against $557 million of cash. Current assets of $5.40 billion trailed current liabilities of $5.95 billion, leaving a working-capital deficit and a current ratio of 0.91.
Leverage ended the quarter at 2.96 times, within management’s 2.5-3.0 times targeted range, with a decline expected in the second half. The absolute debt load still reduces flexibility if cash generation weakens or capital needs rise.
WM’s Cash Flow Helps Support the Bull CaseFree cash flow reached $2.02 billion in the first half of 2026, up more than 56% year over year. Operating cash flow increased more than 17% to $3.23 billion, supported by earnings growth and lower capital spending.
That cash generation supports investment and shareholder returns, but competing demands remain. WM repurchased $1 billion of shares and paid $764 million in dividends during the first half while also funding acquisitions and servicing debt.
WM’s Ratings Favor Patience Over Aggressive BuyingWM’s operating quality is evident, but its valuation and balance-sheet constraints argue for patience. Pricing, broader growth platforms and cash flow support the earnings case, while the premium multiple leaves less room for execution setbacks.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its VGM Score of B, Growth Score of B and Momentum Score of B are constructive, while the Value Score of C is less supportive. The ratings favor a measured stance rather than an aggressive new entry.
Venture Global má silný růst LNG díky smluvně zajištěným objemům, ale brzdí ho dluh 41,5 mld. USD a arbitráž kolem BP ve výši 3,7 mld. USD s možností přes 6 mld. USD.
Key Takeaways Venture Global's contracted LNG volumes and Plaquemines/CP2 pipeline support long-term growth visibility.VG's long-term debt rose to $41.5B, while management expects $13B of capital spending in 2026.VG faces #3.7B to potentially over $6B in BP claims, while uncontracted 2027 cargoes remain price-sensitive.
Venture Global, Inc. (VG - Free Report) offers substantial liquefied natural gas (LNG - Free Report) growth backed by contracted volumes and improving earnings expectations. The Zacks Consensus Estimate for 2026 earnings has increased 8.8% over the past four weeks, while Plaquemines and CP2 extend the production runway.
That visibility comes at a high cost. Debt, capital spending, arbitration exposure and sensitivity on less-contracted LNG volumes leave investors weighing whether VG's growth and valuation offer enough compensation for balance-sheet and execution risk.
VG's Contracted Growth Supports VisibilityAs of August 11, Venture Global had about 53 million tonnes per annum (MTPA) of long- and medium-term contracts. It had contracted 91% of expected 2026 cargoes and 75% of expected 2027 cargoes. More than 2 MTPA of new or increased offtake agreements signed in the second quarter further support revenue visibility.
Plaquemines Phase I is targeted for commercial operations in the fourth quarter of 2026, with Phase II in mid-2027, while CP2 is scheduled for first LNG in the second half of 2027. Cheniere Energy, Inc. (LNG - Free Report) operates liquefaction facilities at Sabine Pass and Corpus Christi. NextDecade Corporation (NEXT - Free Report) is developing natural gas liquefaction capacity at Rio Grande LNG.
Venture Global Trades at Mixed Valuation LevelsVG trades at 1.9X forward 12-month sales, below the sub-industry's 3.7X. Yet the multiple exceeds the stock's five-year median of 1.8X and the Zacks Oils-Energy sector's 1.4X, so the sales-based valuation is not uniformly discounted.
Forward earnings offer a somewhat cheaper comparison. The stock's 9X forward price-to-earnings multiple is below the industry's 9.7X. That modest discount helps the case, but mixed relative valuations argue against treating VG as an obvious bargain.
VG’s 2027 Estimates Signal a PullbackThe Zacks Consensus Estimate points to 2027 earnings of 98 cents per share, down from $1.56 in 2026. Consensus sales are projected to decline to $17.89 billion from $18.22 billion.
Image Source: Zacks Investment Research
VG's Debt Load Raises the Cost of GrowthLong-term debt, net, climbed to $41.5 billion at June 30 from $33.4 billion at year-end 2025. Management expects $13 billion of capital expenditures in 2026, while six-month capital expenditures reached $6.9 billion. The balance sheet therefore remains tied closely to the pace and cost of project execution.
Venture Global has offsets. Refinancing $5.3 billion of capital since the start of the second quarter is expected to save more than $100 million annually, and cash, restricted cash and available borrowing capacity totaled $21.5 billion. Even so, CP2 and expansion spending keep leverage central to financial flexibility.
Venture Global Faces Arbitration and Spot RiskThe Calcasieu Pass arbitration is a major swing factor. A tribunal found that VGCP breached certain obligations to BP, which is seeking $3.7 billion to potentially more than $6 billion, plus interest, costs and fees. Two other customers seek more than $2.4 billion in aggregate.
Commodity exposure adds another layer. With 75% of expected 2027 cargoes contracted, the remaining portfolio can be sensitive to market pricing. Management estimates each $1 per million British thermal units change in liquefaction fees could move 2027 consolidated adjusted EBITDA by $650-$700 million.
VG's Hold Signal Matches a Balanced SetupVG's risk-reward balance supports patience rather than a clear buy call. Contract coverage and project growth strengthen visibility, while leverage, arbitration exposure and pricing sensitivity leave meaningful downside variables that are not fully neutralized by the stock's selective valuation discounts.
The stock currently carries a Zacks Rank #3 (Hold). Its VGM Score of A and Momentum Score of A, along with a Value Score of B and Growth Score of B, indicate favorable style characteristics. The Style Scores complement the Zacks Rank rather than override it, making the present setup more consistent with holding or waiting than initiating a fresh buy solely on growth.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Key Takeaways Golar LNG posted Q2 EPS of 68 cents, beating estimates and improving year over year.Q2 revenues of $130.5 million outpaced the Zacks Consensus Estimate and improved 72% year over year.GLNG's share of contractual debt at the end of the second quarter increased 31% year over year. Golar LNG Limited (GLNG - Free Report) reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.
Quarterly earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 30 cents and increased year over year. Revenues of $130.5 million outpaced the Zacks Consensus Estimate of $125 million and improved 72% year over year.
Adjusted EBITDA of $127.36 million improved 159% year over year.
GLNG exited the second quarter of 2026 with cash and cash equivalents of $870.47 million compared with $1.01 billion at the end of the prior quarter. GLNG’s share of contractual debt at the end of the reported quarter increased 31% to $2.68 billion.
GLNG’s board of directors approved a second-quarter 2026 dividend of 25 cents per share. The dividend will be paid on Sept. 2, 2026, to shareholders of record at the close of business on Aug. 24. As of June 30, 2026, GLNG had 102.1 million shares issued and outstanding.
Currently, GLNG sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performance of Some Other Stocks Belonging to GLNG's IndustryEni S.p.A.(E - Free Report) reported second-quarter 2026 adjusted earnings of $1.76 per American Depository Receipt, missing the Zacks Consensus Estimate of $1.90 by 7.4%. The bottom line increased 122.8% from the year-ago quarter’s 79 cents. Quarterly revenues of $26.35 billion rose 21.5% year over year and surpassed the consensus estimate of $24 billion by 9.8%.
Higher commodity realizations, production growth and stronger segment profitability supported revenues.
Chevron Corporation(CVX - Free Report) reported second-quarter 2026 adjusted earnings of $6.06 per share, which beat the Zacks Consensus Estimate of $5.80 by 4.5%. The outperformance was driven by higher commodity prices, increased upstream production following the Hess acquisition, stronger refined-product margins and higher sales volumes.
The company generated revenues of $70.06 billion. The metric beat the Zacks Consensus Estimate of $57.53 billion and increased 56.3% year over year. The increase was primarily driven by a 51.4% year-over-year increase in sales and other operating revenues, along with a 296.5% rise in income from equity affiliates.
Kaplan Fox vyšetřuje možné porušení zákonů o cenných papírech u UWM Holdings (NYSE: UWMC) po oznámení ztráty ve výši 451,9 milionu USD a pozastavení čtvrtletní dividendy.
New York, New York--(Newsfile Corp. - August 14, 2026) - Kaplan Fox & Kilsheimer LLP is investigating potential securities violations against UWM Holdings Corporation ("UWM Holdings" or the "Company") (NYSE: UWMC).
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If you are a UWM Holdings investor and have suffered losses, or if you have information that could assist in the UWM Holdings investigation, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (212) 329-8571.
On August 5, 2026, after the close of trading, UWM Holdings issued a press release titled "UWM Holdings Corporation Announces Second Quarter 2026 Results" and reported a "net loss of $451.9 million and adjusted EBITDA of $185.9 million," "a $2.05 billion equity capital investment by Oaktree Capital Management and SFS Group Capital, LLC, a newly formed investment vehicle wholly owned by the Ishbia family," and that "the Company's Board of Directors determined to suspend its quarterly dividend."
During the subsequent earnings call, the Chief Executive Officer ("CEO") stated that "we were over-hedged, if you think of it that way, protecting against the Two Harbors transaction." The CEO further stated that "[w]e don't traditionally hedge our MSRs [Mortgage Servicing Rights]" but "when you're going through and acquiring a company like Two Harbors and a massive MSR book . . . it created a little more risk. So [] we did put a hedge on to protect against that risk and then a lot of things happen[ed] . . . and then obviously, the Two Harbors transaction went away. And so a confluence of events that created a hedge loss."
Following this news, the price of UWM Holdings stock declined from a closing price on August 5, 2026 of $1.84 per share to close at $1.20 per share on August 6, 2026, a decline of $0.64 per share, or by 34.78%, on heavier than average volume.
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Cheniere Energy Partners vykázala ve 2. čtvrtletí zisk 1,10 USD na jednotku, nad odhady, a upravený EBITDA vzrostl meziročně o 35,4 % na 983 milionů USD.
Key Takeaways Cheniere's second-quarter earnings beat estimates, while adjusted EBITDA increased 35.4% year over year.Cheniere's cash flow strengthened, with first-half operating cash flow reaching $1.61 billion.The SPL Expansion Project of Cheniere could add about 20 million tons of annual LNG capacity.
Cheniere Energy Partners, L.P. (CQP - Free Report) has gained 10.8% in the past month, putting the durability of that advance in focus. Recent earnings strength, improving estimates and healthy cash generation give the rally fundamental support.
Valuation and leverage raise the hurdle for further gains. Expansion at Sabine Pass adds a longer-term growth avenue, but execution, financing and commodity-linked risks remain important offsets.
CQP's One-Month Rally Has Fundamental SupportSecond-quarter earnings of $1.10 per unit beat the Zacks Consensus Estimate by 15.8%. Adjusted EBITDA increased 35.4% to $983 million, driven by higher liquified natural gas (LNG - Free Report) margins per million British thermal units and greater volumes recognized in income.
The Zacks Consensus Estimate for 2026 earnings is $4.17 per unit and has moved 2.7% higher over the past four weeks. That combination of an earnings beat and positive estimate revisions offers a firmer backdrop for the recent price momentum.
CQP's Cash Flow and Distribution Picture StrengthenNet cash provided by operating activities reached $1.61 billion in the first half of 2026, up from $1.22 billion a year earlier. CQP also ended June with $443 million in cash and cash equivalents and total available liquidity of $2.34 billion.
The partnership reconfirmed 2026 distribution guidance of $3.10-$3.40 per common unit, including a $3.10 base distribution. The second-quarter distribution was 82 cents per unit, giving income-focused investors a cash-return component alongside the recent unit-price gain.
CQP Expansion Adds a Longer-Term Growth LeverThe proposed SPL Expansion Project could add approximately 20 million tons per annum of peak LNG production capacity, including estimated debottlenecking opportunities. In May, CQP signed a Bechtel engineering, procurement and construction contract for the first phase and authorized early engineering and procurement.
That phase includes Train 7 and a boil-off gas re-liquefaction unit with expected production capacity of more than 6 million tons per annum. Cheniere Energy, Inc. (LNG - Free Report) , CQP's parent, is also expanding its Corpus Christi platform, while Venture Global, Inc. (VG - Free Report) continues developing major U.S. LNG capacity. Those projects underscore the scale of industry investment CQP must compete with.
CQP's Valuation Raises the Bar After the RallyCQP trades at 17.4X forward 12-month earnings, above its five-year median of 14.2X but below the Zacks sub-industry multiple of 24.8X. The units therefore look less inexpensive relative to their own history even though they remain discounted to the sub-industry.
Image Source: Zacks Investment Research
That valuation makes continued execution more important. Further upside would be easier to justify if earnings estimates keep improving and cash generation remains supportive, while disappointment could make the premium to CQP's historical median harder to sustain.
CQP's Earnings Outlook Adds Support to Recent MomentumThe Zacks Consensus Estimate for CQP’s current-quarter earnings is pegged at $1.03 per unit, implying 27.2% growth from the year-ago figure of 81 cents. For the next quarter, the consensus estimate stands at $1.12 per unit, indicating a more modest year-over-year increase of 3.7%. The Zacks Consensus Estimate for 2026 earnings is $3.98 per unit, representing 8.5% growth from $3.67 in the prior year. Earnings are expected to rise another 3.1% in 2027, with the consensus estimate currently at $4.11 per unit. Still, the 2026 estimate range of $3.00-$4.84 points to considerable variation among analysts, while the 2027 range stands at $3.65-$4.71. The expected earnings growth supports CQP’s recent momentum, although the wide estimate range suggests that continued execution will remain important for sustaining investor confidence.
Image Source: Zacks Investment Research
CQP Still Faces Debt and Commodity RisksLong-term debt stood at $14.34 billion at June 30, 2026. CQP refinanced near-term maturities in June, but debt service, expansion funding and capital allocation needs still limit financial flexibility.
Long-term take-or-pay contracts support revenue visibility, yet profitability remains sensitive to LNG margins and commodity-linked economics. Global LNG competition, pending regulatory approvals and the funding needs of the SPL Expansion Project could also constrain future distribution growth.
CQP's Mixed Signals Favor Measured OptimismCQP's recent momentum has support from better quarterly earnings, positive estimate revisions, solid operating cash flow and progress on expansion. Valuation and leverage, however, argue against assuming the past month's advance will continue at the same pace.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a VGM Score of B, with a Value Score of B, Momentum Score of B and Growth Score of C. The favorable Value and Momentum scores add support to the investment case, while the Hold rank and middling Growth score fit a more balanced near-term view.
RUM Group oznámila tržby za 2. čtvrtletí ve výši 40,37 mil. USD, meziročně o 61 % více, a zvýšila výhled tržeb na 87 až 93 mil. USD. Přesto vykázala ztrátu 28 centů na akcii.
RUM Group Inc. (NASDAQ:RUM) shares are trading marginally lower on Friday as traders continue to digest the post-earnings AI-infrastructure storyline and acquisition-driven revenue jump.
RUM Group stock is facing resistance. What’s driving RUM stock lower? What’s Driving RUM Group’s Revenue Growth?Second-quarter revenue came in at $40.37 million (up 61% year-over-year), helped by the closed Northern Data acquisition, which contributed $10.1 million of quarterly revenue and pushed results to a company record. Management also guided third-quarter revenue to $87 million to $93 million versus a Street forecast of $65.2 million that may not yet reflect the closed deal.
Despite the revenue acceleration, the quarter included a net loss of 28 cents per share, wider than the Street’s loss-of-9-cents view, keeping profitability front-and-center even as the AI narrative expands.
Rum Group CEO Chris Pavlovski called this a “transformational quarter” for the company, establishing the Quake AI cloud and AI infrastructure business alongside the Rumble video platform business.
“With Quake AI’s existing GPU estate running at 85% utilization, a new multi-year agreement with Together AI, and 250 megawatts of targeted 2027 power, which we believe represents a $3 billion-plus annual run-rate opportunity, RUM Group is uniquely positioned to power the coming robotic and agentic AI era, combining scaled AI compute with the trove of Rumble’s video data and creator community that today’s neoclouds simply don’t have,” Pavlovski said.
Critical Moving Averages Levels for RUMRUM is trading above all major moving averages, which keeps the intermediate trend constructive: the stock is 18.4% above its 20-day SMA ($6.32) and 16.4% above its 200-day SMA ($6.42). That said, the 20-day SMA is still below the 50-day SMA (a bearish short-term alignment), even as the 50-day SMA remains above the 200-day SMA after the golden cross in June.
For momentum, MACD is the cleaner read right now: it’s above its signal line and the histogram is positive, which suggests upside pressure is improving versus the prior downswing. In plain terms, when MACD is above its signal line, it often means sellers are losing control and buyers are starting to press again.
Key Resistance: $8.50 — a nearby round-number area where rebounds can stall Key Support: $6.00 — a nearby round-number level where dip-buyers may defend RUM Stock Price Movement on FridayRUM Stock Price Activity: RUM Group shares were down 0.13% at $7.53 at the time of publication on Friday, according to Benzinga Pro data.
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Dycom zvýšil výhled tržeb pro fiskální rok 2027 na 7,38–7,65 miliardy USD po silném prvním čtvrtletí. Tržby z kontraktů vzrostly meziročně o 56,1 % na 1,96 miliardy USD.
Key Takeaways Dycom's 21.2% YTD rally is backed by record backlog, strong fiber demand and improving profitability.Dycom raised fiscal 2027 revenue guidance to $7.38-$7.65B after a strong first-quarter performance.DY trades above its industry valuation, while seasonal cash flow remains negative and revisions are mixed. Dycom Industries, Inc. (DY - Free Report) has maintained solid momentum in 2026, with shares gaining 21.2% year to date. The performance is close to the Zacks Building Products - Heavy Construction industry's 23.6% rise and comfortably ahead of the Zacks Construction sector's 10.4% gain and the S&P 500 Index's 13.5% advance.
DY Price Performance (YTD)
Image Source: Zacks Investment Research
The rally has been supported by strong fiber infrastructure spending, growing data center exposure, record backlog and better profitability. Dycom's fiscal first-quarter 2027 results strengthened the case, with contract revenues jumping 56.1% year over year to $1.96 billion and organic growth reaching 24.7%. Adjusted EBITDA surged 74.6% to $262.5 million, while adjusted EPS increased 84.9% to $4.42. The adjusted EBITDA margin expanded 141 basis points to 13.4%.
Still, the stock's valuation premium and mixed estimate revisions suggest that investors should weigh Dycom's strong operating momentum against the expectations already built into the shares.
Dycom's Fiber Demand Supports Further GrowthDycom remains well-positioned to benefit from a multiyear investment cycle in broadband infrastructure. Communications revenues reached $1.57 billion in the fiscal first quarter and increased 24.7% organically, helped by fiber-to-the-home programs, long-haul and middle-mile fiber builds and growing maintenance services. Communications adjusted EBITDA increased 28% to $192.4 million, with margin improving to 12.3%.
Management continues to see strong demand for strategic multiyear fiber-to-the-home and long-haul programs. The company is also expanding geographically and investing in additional workers to support the growing workload. Dycom added 730 employees during the fiscal first quarter, underscoring the scale of the opportunity it is preparing to address.
BEAD-related spending provides another potential growth source. Management said state-level and subgrantee activity is progressing and could provide upside to backlog and the longer-term outlook.
Dycom's Record Backlog Improves VisibilityThe strength of the demand environment is especially clear in Dycom's backlog. Total backlog reached a record $11.9 billion at the end of the fiscal first quarter, rising 25% sequentially and supporting a 2.2X book-to-bill ratio. Management noted that recent awards are becoming more diversified across customers, geographies and demand drivers, while some customers are extending contract durations to secure Dycom's skilled workforce.
Of the total backlog, Communications accounted for $10.8 billion, and Building Systems represented $1.1 billion. Approximately $6.4 billion is expected to be completed over the next 12 months.
This visibility matters because Dycom is investing heavily in employees and capacity. A large committed workload reduces some of the risk associated with those investments and gives management a clearer path for sustaining growth.
Data Centers Expand Dycom's Growth RunwayBuilding Systems is becoming a meaningful second growth engine. The segment generated $395.4 million of fiscal first-quarter revenues and $70 million of adjusted EBITDA, producing a strong 17.7% margin as Power Solutions ramped faster than initially expected.
Dycom is also broadening its data center capabilities through acquisitions. The company agreed to acquire National Technology Integrators for $275 million. The business specializes in structured cabling inside data centers, along with advanced audio-visual and security systems, and has an expected initial annual revenue run rate of roughly $175 million. Its historical adjusted EBITDA margin has been in the mid-to-high teens.
The deal should complement Power Solutions and Dycom's Communications operations, allowing the company to offer infrastructure services from server racks through long-haul networks and ultimately to homes and businesses. This broader offering could create cross-selling opportunities and deepen Dycom's exposure to hyperscaler and data center investment.
Dycom Raises Fiscal 2027 OutlookFollowing the strong start, management raised its fiscal 2027 revenue outlook to $7.38-$7.65 billion, implying GAAP growth of 33.1%-37.9% and organic growth of 12.6%-15.8%. Communications revenues are projected to be $6.03-$6.20 billion, while Building Systems revenues are expected to be $1.35-$1.45 billion. Dycom also continues to expect consolidated adjusted EBITDA margin expansion.
For the fiscal second quarter, management expects revenues of $1.94-$2.01 billion, adjusted EBITDA of $284-$303 million and adjusted EPS of $4.40-$4.82. Importantly, the guidance issued with fiscal first-quarter results excluded contributions from the pending National Technology Integrators acquisition.
Consensus expectations also point to strong growth. The Zacks Consensus Estimate calls for fiscal 2027 EPS of $16.39, up from $16.35 over the past 30 days and implying 36.9% growth. Fiscal 2028 EPS is projected to rise 21.6% to $19.94, although the estimate has edged down from $19.95. Revenue estimates imply growth of 37.2% in fiscal 2027 and 13.1% in fiscal 2028.
DY EPS Estimate Revision
Image Source: Zacks Investment Research
Dycom's Valuation and Cash Flow Warrant AttentionDespite the strong outlook, valuation leaves less room for execution setbacks. Dycom trades at 22.39X forward 12-month earnings, above the industry's 21.58X. That premium is not excessive, but it suggests investors are already paying for above-industry growth.
DY Valuation (P/E F12M)
Image Source: Zacks Investment Research
Cash flow is another point to watch as Dycom invests for expansion. Operating cash outflow improved to $24.6 million in the fiscal first quarter from $54 million a year earlier, while free cash outflow narrowed to $92.1 million from $122.6 million. Dycom ended the quarter with $538.8 million in cash, $2.30 billion of notional net debt and $1.29 billion of liquidity.
Pro forma net leverage stood at roughly 2.3X adjusted EBITDA. While that provides financial flexibility, acquisitions and continued investment make leverage and cash conversion important metrics to follow.
Dycom Faces Strong Infrastructure RivalsDycom competes with MasTec (MTZ - Free Report) in broadband, fiber and wireless infrastructure, Quanta Services (PWR - Free Report) in communications and utility infrastructure and MYR Group (MYRG - Free Report) in electric utility and specialty contracting services. All three have outperformed Dycom this year. Quanta Services shares have climbed 59.4% year to date (YTD), MYR Group has gained 49.8% and MasTec has risen 31.6% compared with Dycom's 21.2% advance.
Dycom, however, offers a lower earnings multiple than all three. Its 22.39X forward P/E compares with 38.04X for Quanta Services, 25.61X for MYR Group and 25.13X for MasTec. Quanta Services commands the largest premium as investors price in its broad utility and power infrastructure exposure. MasTec also benefits from strong communications and energy infrastructure demand, while MYR Group offers substantial electric transmission and distribution exposure. Dycom's relative valuation therefore remains reasonable despite trading slightly above its own industry average.
Should Investors Chase the DY Rally?Wall Street remains highly positive on Dycom. The stock has an Average Brokerage Recommendation of 1.18, with 10 of 11 brokerage recommendations carrying a Strong Buy rating. The average price target of $631 implies roughly 54% upside from the latest closing price.
Image Source: Zacks Investment Research
There is good reason for that optimism. Record backlog, strong organic fiber growth, improving margins, rising data center exposure and an increased fiscal 2027 outlook provide Dycom with several paths for earnings expansion. Yet the stock already trades at a premium to its industry, cash flow remains negative on a seasonal basis and estimate revisions are not uniformly positive.
With Dycom carrying a Zacks Rank #3 (Hold), existing investors may have reason to stay invested and benefit from the multiyear digital infrastructure cycle. However, after the 21.2% YTD gain, new investors may want a more attractive entry point rather than aggressively chasing the rally at current levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- The board of directors of Ameren Corporation (NYSE: AEE) today declared a quarterly cash dividend on its common stock of 75 cents per share. This dividend is payable Sept. 30, 2026, to shareholders of record at the close of business on Sept. 8, 2026.
Separately, the board of directors of Union Electric Company, doing business as Ameren Missouri, declared regular quarterly cash dividends on all classes of Union Electric Company's preferred stock. These preferred stock dividends are payable Nov. 15, 2026, to shareholders of record at the close of business on Oct. 15, 2026.
In addition, the board of directors of Ameren Illinois Company, doing business as Ameren Illinois, declared regular quarterly cash dividends on all classes of Ameren Illinois Company's preferred stock. These preferred stock dividends are payable Nov. 1, 2026, to shareholders of record at the close of business on Oct. 9, 2026.
About Ameren Corporation
St. Louis-based Ameren Corporation powers the quality of life for 2.5 million electric customers and more than 900,000 natural gas customers in a 64,000-square-mile area through its Ameren Missouri and Ameren Illinois rate-regulated utility subsidiaries. Ameren Illinois provides electric transmission and distribution service and natural gas distribution service. Ameren Missouri provides electric generation, transmission and distribution services, as well as natural gas distribution service. Ameren Transmission Company of Illinois develops, owns and operates rate-regulated regional electric transmission projects in the Midcontinent Independent System Operator, Inc. For more information, visit Ameren.com, or follow us at @AmerenCorp, Facebook.com/AmerenCorp, or LinkedIn.com/company/Ameren.
JPMorgan upozornil, že investoři zpochybňují udržitelnost rychlého růstu herního byznysu AppLovin, protože výnosy za 2. čtvrtletí i výhled na 3. čtvrtletí zaostaly za očekáváním.
The firm established a December 2027 price forecast of $400, based on about 18 times its 2028 GAAP earnings estimate of $22.42 per share. AppLovin closed Thursday at $312.67, implying about 28% upside from that level.
AppLovin Gaming Growth Faces Durability QuestionsJPMorgan called AppLovin a leading advertising technology platform for mobile gaming marketers. The company is targeting roughly 30% annual revenue growth over the longer term and adjusted EBITDA margins in the low-80% range.
However, the firm said investors are increasingly questioning how long AppLovin can sustain its rapid gaming growth. The company’s second-quarter revenue fell below the midpoint of its guidance.
Its third-quarter revenue outlook of $2.055 billion to $2.085 billion, representing 46% to 48% year-over-year growth, also fell short of investor expectations, according to JPMorgan’s conversations.
JPMorgan estimates AppLovin’s MAX mediation platform holds more than 70% of the mobile gaming mediation market. Its AppLovin Ads demand-side platform has more than 40% share.
Consumer Advertising Could Drive Next Growth PhaseAppLovin’s expansion beyond gaming could become an important growth engine. The company opened its advertising platform to all advertisers in June.
JPMorgan estimates the consumer business accounted for about 9% of second-quarter gross spend. Consumer spending increased 28% from fourth-quarter 2025 levels.
The firm forecasts consumer net revenue of $777 million in 2026, up 63% year over year, before climbing 75% to $1.4 billion in 2027. Consumer advertising would account for about 14% of total net revenue by 2027 under those estimates.
The opportunity is sizable. JPMorgan estimates the U.S. online advertising market exceeds $335 billion, with retail and consumer packaged goods representing about $140 billion, or 42%, of spending.
Still, JPMorgan said AppLovin must prove it can scale advertiser density, improve its models and demonstrate returns for consumer advertisers in a highly competitive market.
Margins Remain A StandoutDespite those execution risks, JPMorgan remains positive on AppLovin’s market position, reach across more than 1 billion daily active users and ability to improve advertiser returns.
The firm forecasts net advertising revenue of $8.1 billion in 2026, up 48% year over year, with an adjusted EBITDA margin of 84%.
JPMorgan also projects $5.2 billion in 2026 free cash flow, representing about 76% conversion from adjusted EBITDA. AppLovin has about $1.8 billion authorized for share repurchases.
For now, JPMorgan said it wants to see more consistent returns from AppLovin’s gaming model improvements and further evidence that the consumer advertising business can scale meaningfully.
AppLovin Price ActionAPP Price Action: AppLovin shares were up 2.30% at $319.84 at the time of publication on Friday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Key Takeaways SNDR raised 2026 adjusted EPS guidance to 90 cents-$1.10 from the prior view of 70 cents to $1.00.Schneider trades at a lower forward P/S ratio than its industry average, signaling a cheap valuation.SNDR has gained so far this year and outperforms its industry and its peers like EXPD and CHRW.
Schneider National, Inc. (SNDR - Free Report) has unveiled an upbeat earnings outlook for 2026, concurrent with its second-quarter 2026 earnings release on July 30, 2026. Schneider’s second-quarter results mainly benefited from disciplined revenue management, cost reductions and productivity gains.
Raised guidance always acts as a positive indicator of the company’s prospects. Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell SNDR stock now? A more in-depth analysis is needed to make that determination. Before diving into SNDR’s investment prospects, let’s take a glance at its financial numbers.
Schneider’s Raised Earnings Outlook for Full-Year 2026Schneider’s management provided upbeat full-year 2026 earnings guidance. The company raised its 2026 adjusted earnings per share (EPS) to the range of 90 cents to $1.10 per share from the prior view of 70 cents to $1.00. The Zacks Consensus Estimate is currently pegged at $1.02. The outlook assumes an effective tax rate of approximately 24%.
The updated EPS guidance for 2026 is also above the 2025 adjusted EPS of 63 cents. The upside is expected to have been aided by the cost reduction initiatives. With the successful attainment of the cost savings target in 2025, SNDR is hopeful to achieve another $40 million in targeted cost savings in 2026. SNDR aims to boost its earnings by leveraging productivity and asset efficiency actions while improving the topline without incremental growth investments.
Other Factors Working in Favor of Schneider StockSchneider’s solid balance sheet increases financial flexibility. The company ended second-quarter 2026 with cash and cash equivalents of $292.7 million and a current debt level of $10.5 million. This implies that the company has sufficient cash to meet its current debt obligations. Further, SNDR’s long-term debt has declined to $385.6 million at the end of the second quarter of 2026 from $513 million at the end of second-quarter 2025.
A strong balance sheet enables the company to reward shareholders with dividends and share repurchases. As a reflection of its shareholder-friendly stance, in 2022, 2023, 2024 and 2025, SNDR paid dividends of $55.7 million, $63.6 million, $66.6 million and $67 million, respectively. It also returned $34.6 million to shareholders through dividends in the first half of 2026.
SNDR is also active on the buyback front. In January 2026, SNDR's board of directors approved a new stock repurchase program, effective immediately, under which up to $150 million of the company’s outstanding Class A common stock, and/or Class B common stock, may be acquired over the next three years. This share buyback program supersedes and replaces the $150 million stock repurchase authorization approved by SNDR's board on Jan. 31, 2023 (the “Prior Repurchase Program”), which is scheduled to expire on Jan. 31, 2026, and is substantially similar to the Prior Repurchase Program.
During the first half of 2026, SNDR repurchased 0.2 million Class B shares for $5.2 million under its $150 million authorization. Buybacks not only reduce the total outstanding share count, thereby increasing earnings per share, but also signal management's belief in the intrinsic value of the stock. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line.
What Do Earnings Estimates Say for SNDR?The positive sentiment surrounding Schneider stock is evident from the fact that the Zacks Consensus Estimate for the third quarter of 2026 and the fourth quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected northward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
Schneider Stock’s Price PerformanceShares of Schneider have gained 36.9% so far this year, outperforming its transportation-services industry’s 5.7% increase, as well as that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and C.H. Robinson Worldwide, Inc. (CHRW - Free Report) .
Schneider Stock’s YTD Price Comparison Image Source: Zacks Investment Research
Attractive Valuation Picture for SNDR StockSchneider looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), SNDR is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 1.00X compared with 1.65X for the industry over the past five years. These factors indicate that the stock’s valuation is unattractive.
SNDR P/S Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research
Time to Buy Schneider StockApart from being attractively valued, Schneider stock is being well-served by its focus on the successful attainment of cost reduction initiatives. SNDR aims to boost its earnings by leveraging productivity and asset efficiency actions while improving the topline without incremental growth investments. Initiatives to reward its shareholders through dividends and buybacks are praiseworthy as well.
We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding an increase in third-party carrier capacity costs, unplanned auto production shutdowns, raised healthcare costs, higher maintenance costs, lower gains on sale of assets, increased fuel expense, lower brokerage volume, risks associated with an ongoing volatile macro environment and geopolitical tensions. We, therefore, suggest investors add Schneider stock to their portfolios for healthy returns. The company’s Zacks Rank #1 (Strong Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Horizon za poslední měsíc přidal asi 2,4 % po zveřejnění výsledků za 2Q, kde EPS 54 centů překonal odhad 52 centů. Výnosy vzrostly o 7 % na 887 milionů USD.
It has been about a month since the last earnings report for First Horizon National (FHN - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is First Horizon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First Horizon Q2 Earnings Beat Estimates on Higher NII & Fee IncomeFirst Horizon posted second-quarter 2026 earnings per share (EPS) of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter.
Results benefited from higher net interest income and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds.
Net income available to its common shareholders was $260 million, up 12% year over year.
Revenues & Expenses RiseTotal quarterly revenues were $887 million, which increased 7% year over year. The top line surpassed the Zacks Consensus Estimate of $873.5 million.
NII increased 5% year over year to $676 million. Additionally, the net interest margin expanded 9 basis points from the prior-year quarter to 3.49%.
Non-interest income was $211 million, rising 12% year over year. The increase reflected growth in brokerage, trust and insurance income, fixed income revenues, mortgage banking revenues and deferred compensation income.
Non-interest expenses increased 8% year over year to $531 million. The rise was mainly due to higher salaries and benefits, outside services, occupancy and equipment, and deferred compensation expenses.
The efficiency ratio was 59.88%, up from 59.20% in the same quarter last year. A rise in the efficiency ratio indicates lower profitability.
Loans & Deposits Balances IncreaseTotal period-end loans and leases, net of unearned income, were $65.3 billion, up 1.5% from the end of the prior quarter. Total period-end deposits were $68.1 billion, increasing 2.4% sequentially.
Credit Quality ImprovesNon-performing loans and leases totaled roughly $531 million, down from $593 million in the prior-year quarter. The non-performing loans and leases ratio declined to 0.81% from 0.94%.
The allowance for credit losses to loans and leases ratio was 1.24%, down from 1.42% in the year-ago quarter.
Net charge-offs were $33 million, down 3% year over year. Provision for credit losses was $15 million compared with $30 million in the year-ago quarter.
Capital Ratios DeclineAs of June 30, 2026, the common equity tier 1 ratio was 10.5%, down from 11% reported at the end of the year-ago quarter.
The total capital ratio was 13.4%, down from 14% a year ago. The tier 1 leverage ratio declined slightly to 10.5% from 10.6% in the prior-year quarter.
Capital DeploymentDuring the quarter, FHN repurchased $100 million worth of shares at an average price of $24.52 per share. The company had $665 million remaining under its share repurchase authorization.
2026 OutlookAdjusted revenues, excluding deferred compensation, are expected to increase 3-7% from the 2025 baseline of $3.42 billion.
The company expects mid-single-digit balance-sheet growth, supported by commercial loan pipelines and continued relationship expansion.
Adjusted expenses, excluding deferred compensation, are projected to remain roughly flat from the 2025 baseline of $2.05 billion.
The net charge-off ratio is expected to be 0.15-0.25%, compared with 0.19% in 2025.
The effective tax rate is projected at 21-23%, although discrete items may cause quarterly variation.
The company continues to target a CET1 ratio of about 10.5%, with the level likely to vary based on loan growth and capital deployment.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, First Horizon has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Horizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
California Resources ve 2. čtvrtletí 2026 zvýšila tržby o 50,4 % na 1,06 mld. USD, ale upravený zisk na akcii (EPS) klesl o 10 % na 99 centů a kvůli dočasným omezením takeaway minul odhad.
Key Takeaways California Resources' revenues rose 50.4%, while adjusted EPS fell 10% and missed the consensus estimate.CRC delivered $103 million in annualized Berry synergies and improved California drilling efficiency by 25%.CRC's Crimson acquisition adds 2,000 miles of pipelines and storage assets across California.
California Resources Corporation (CRC - Free Report) reported second-quarter 2026 adjusted earnings of 99 cents per share, down 10.0% from $1.10 a year ago and the figure also missed the Zacks Consensus Estimate of $1.31 by 24.43%, mainly due to temporary takeaway constraints, weaker oil differentials and higher transportation and operating costs.
Long Beach, CA-based oil and gas exploration and production company’s oil, natural gas and natural gas liquids revenues of $1.06 billion rose 50.4% from $702 million and beat the Zacks Consensus Estimate of $979 million by 7.87%.
CRC’s board of directors declared a quarterly cash dividend of 40.5 cents per share of common stock, payable on Sept. 18, 2026, to its shareholders of record as of Sept. 4. During this quarter, CRC returned $36 million to its shareholders through dividends.
CRC's Production and Realization TrendsCalifornia Resources' average net production was 149 thousand barrels of oil equivalent per day (MBoe/d), up from 137 MBoe/d in the year-ago quarter. Net oil production averaged 120 thousand barrels per day, while NGL production was 10 thousand barrels per day. Natural gas output averaged 115 million cubic feet per day. Oil represented 81% of total production.
The realized oil price before derivative settlements was $91.55 per barrel, while NGL and natural gas realizations were $49.62 per barrel and $1.84 per Mcf, respectively. CRC built about 137 thousand barrels of oil inventory because of temporary takeaway constraints. The inventory build, weaker differentials and higher operating and transportation costs reduced adjusted EBITDAX and operating cash flow before working-capital changes by about $25 million.
California Resources' Efficiency GainsTotal operating expenses were $786 million, up 10.5% from $711 million a year earlier.Operating costs were $347 million, up 17.6% from $295 million a year earlier. General and administrative expenses increased 22.8% to $97 million. Adjusted G&A expenses, however, declined to $89 million from $99 million in the first quarter, reflecting Berry-related efficiencies.
The company implemented more than 100% of its 2026 Berry synergy target six months ahead of schedule, representing $103 million of annualized savings. California drilling efficiency improved about 25% and nearly 80% of wells drilled year to date outperformed the type curve, with average initial production more than 10% above expectations. CRC lowered its long-term drilling, completions and workover maintenance-capital estimate by about 5% to $450-$475 million with six rigs.
CRC's Cash Flow and Balance SheetNet cash provided by operating activities was $263 million, up 59.4% from $165 million in the prior-year quarter. Free cash flow totaled $114 million, while capital investments were $149 million, including $101 million for drilling, completions and workovers.
CRC ended June with $1.32 billion of liquidity, consisting of $43 million of available cash and $1.28 billion of borrowing capacity, with a debt-to-capitalization of 27.4%. During the quarter, it issued $550 million of 7.25% senior notes due 2035 and redeemed its remaining 8.25% senior notes due 2029.
California Resources' Midstream ExpansionCRC agreed to acquire Crimson Midstream Holdings for $63 million in cash. The transaction adds roughly 2,000 miles of California crude-oil pipelines and storage assets, expanding the company's access to higher-value markets and third-party throughput.
The company also acquired the Line 100 system earlier in 2026. That network includes a 118-mile crude pipeline with 60 thousand barrels per day of capacity and more than 1 million barrels of storage. Management expects the Crimson deal to strengthen market access and commercial flexibility.
CRC's Carbon and Power ProgressCarbon TerraVault I began carbon dioxide (CO2) injection and generated first revenues during the quarter. Management said the project is capturing and injecting about 270 metric tons of CO2 per day and is targeting an annualized rate of roughly 100,000 tons.
CRC also partnered with Beacon Data Centers on the proposed Golden Valley Technology Hub at Elk Hills. The planned campus would have 275 megawatts of capacity and use power from CRC's existing Elk Hills plant. The company has submitted a conditional-use permit and expects the environmental review process to advance later in 2026.
California Resources' 2026 OutlookFor the third quarter, CRC expects net production of 151-154 MBoe/d, capital investments of $150-$170 million and adjusted EBITDAX of $285-$325 million. Oil is expected to represent 80% of output.
For 2026, the company maintained capital-investment guidance of $520-$560 million and expects net production of 150-155 MBoe/d. Adjusted EBITDAX is projected at $1.2-$1.3 billion.
CRC cut expected drilling, completions and workover capital by $10 million to $370-$390 million while continuing to target about 1% entry-to-exit gross production growth. CRC currently holds a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings at a GlanceWhile we have discussed CRC’s second-quarter results in detail, let us take a look at three other key reports in the energy space.
Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.
As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.
Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.
Range Resources’ net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. It repurchased $78 million of shares and paid $24 million in dividends during the quarter.
Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. (KMI - Free Report) reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%.
As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025.
Marathon Petroleum po výsledcích za 2. čtvrtletí vzrostl o 50,9 % díky vyšším rafinérským maržím a silným výnosům pro akcionáře. Čistý zisk meziročně vyskočil na 5,1 miliardy USD.
Key Takeaways MPC's Q2 earnings surged on stronger refining margins, lower downtime and robust shareholder returns.Refining capacity outages and tight fuel inventories support MPC's favorable outlook through 2026 and 2027.MPC trades below the sub-industry P/E average, but its sharp rally raises expectations for sustained margins.
Marathon Petroleum Corporation (MPC - Free Report) has emerged as one of the standout names in the refining space after reporting exceptionally strong second-quarter results. The stock has surged 50.9% following the earnings release as investors responded to stronger refining margins, excellent operational execution and robust shareholder returns.
Image Source: Zacks Investment Research
The rally, however, changes the investment equation. While MPC's latest results and earnings outlook remain encouraging, investors must consider whether the recent gains have already priced in much of the improvement. Let's explore MPC’s growth drivers, risks, valuation and prospects while comparing it with refining peers Valero Energy (VLO - Free Report) and Phillips 66 (PSX - Free Report) .
MPC’s Investment ThesisMPC's second-quarter performance provides a strong fundamental reason behind the stock's recent rally. Net income attributable to MPC jumped to $5.1 billion, or $17.73 per share, from $1.2 billion, or $3.96, in the year-ago quarter. Adjusted EBITDA surged to $8.46 billion from $3.29 billion.
MPC's Refining & Marketing (R&M) segment was the biggest contributor. R&M adjusted EBITDA climbed to $6.66 billion from $1.89 billion, while R&M margin increased to $36.33 per barrel from $17.58. This improvement reflected stronger crack spreads and MPC's ability to optimize its crude and product flows.
Operational execution adds another positive. MPC achieved its lowest level of unplanned downtime in a decade and operated the Gulf Coast system at 100% utilization during the quarter. R&M margin capture exceeded $1 billion in the second quarter and reached 108% for the first half, highlighting the company's ability to outperform benchmark market conditions.
The refining market itself also remains supportive. Management highlighted more than 9 million barrels per day of global planned and unplanned refining capacity downtime, around 4 million barrels per day above historical norms. U.S. gasoline inventories remain below the five-year range, while distillate inventories are at the bottom of that range. MPC expects an enhanced mid-cycle refining environment through year-end and into 2027.
The company also benefits from the integrated logistics network, which provides access to economically advantaged crude and allows it to optimize feedstocks and product yields. Two high-return projects at Robinson and El Paso came online during the second quarter, with management targeting returns of 25% or higher.
Capital allocation is another positive. MPC returned $2.8 billion to its shareholders during the second quarter and repurchased $2.5 billion of stock. It had $6.1 billion remaining under existing repurchase authorizations at the end of June, while MPLX's growth strategy is expected to support 12.5% annual distribution growth in 2026 and 2027.
However, the bullish thesis has meaningful risks. Refining is inherently cyclical, and the exceptional second-quarter margins were helped by unusually tight product markets, geopolitical disruptions and refinery downtime. If capacity returns and crack spreads normalize, MPC's earnings could retreat from current elevated levels.
Capital requirements also remain significant. MPC and MPLX invested $2.64 billion in the first half, while the latter increased its 2026 growth capital outlook by $500 million to $2.9 billion to accelerate Gulf Coast fractionation and export projects.
MPC's Valuation Looks Reasonable, but the Rally Raises the BarMPC's valuation remains a key positive. The stock trades at approximately 8.82x earnings, below the sub-industry average of 9.19x. This suggests that its shares are not excessively valued despite the sharp improvement in profitability.
Image Source: Zacks Investment ResearchThe earnings outlook is also strengthening. The consensus estimates for MPC's 2026 and 2027 earnings have increased 45.09% and 25.50%, respectively, over the past 60 days. The upward revisions indicate that analysts are becoming more confident in the company's earnings potential.
Image Source: Zacks Investment Research
Still, investors should be cautious about interpreting the low P/E in isolation. Refiners often trade at lower multiples when earnings are near cyclical peaks. MPC's valuation is attractive, but sustained upside will depend on whether refining margins remain healthy enough to support current earnings expectations.
MPC vs. Valero and Phillips 66MPC's performance should also be viewed against its major refining peers. Valero Energy offers similarly strong exposure to refining and can benefit from tight refined-product markets. Phillips 66 has a somewhat more diversified business model, with exposure to refining, midstream and chemicals.
MPC's competitive advantage comes from its large refining footprint, extensive logistics network, strong optimization capabilities and ownership interest in MPLX. VLO provides a more concentrated refining investment case, while PSX offers greater diversification. The three companies therefore provide investors with different ways to participate in the favorable refining environment.
MPC Outpaces Valero and Phillips 66 Over the Past Six Months
Image Source: Zacks Investment Research
MPC has outperformed its sub-industry and peers, gaining 75.3% compared with 71.7% for Valero Energy, 44.5% for the Oil Refining & Marketing sub-industry and 45.6% for Phillips 66. MPC's six-month rally also demonstrates that investors are currently placing a premium on strong refining execution. Whether that outperformance continues will depend heavily on margins, product demand and the industry's capacity outlook.
ConclusionMPC’s strong second-quarter results highlight its solid operating performance, supported by higher refining margins, improved reliability and substantial shareholder returns. The outlook also remains constructive, with management expecting a favorable refining environment through the end of 2026 and into 2027. Improving earnings estimates and a valuation below the sub-industry average provide additional support for the investment case.
At the same time, the stock’s 50.9% post-earnings rally has raised expectations. Refining earnings are cyclical, and margins could moderate if product markets loosen or additional capacity returns. The recent share-price gains also mean that some of the improved fundamentals may already be reflected in the stock.
With a Zacks Rank #3 (Hold), MPC presents a balanced risk-reward profile at current levels. The company’s strong fundamentals and earnings momentum are encouraging, but the sharp rally and cyclical nature of refining warrant some caution. Existing shareholders may continue to monitor the stock, while prospective investors may prefer to wait for a more favorable entry point or further evidence that elevated refining margins can be sustained. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemours uvedl Opteon ZE a 515B pro stacionární chillery v datových centrech poháněných AI. Obě chladiva mají nízký GWP a rozšiřují jeho portfolio pro chlazení.
Key Takeaways Chemours launched Opteon ZE and 515B for stationary chillers serving AI-driven data-center cooling needs.Opteon ZE and 515B offer low GWP and are classified as ASHRAE A2L and A1 refrigerants, respectively.Chemours sees growth opportunities as cooling demand rises and regulatory standards become stricter. The Chemours Company (CC - Free Report) has launched Opteon ZE (R-1234ze(E)) and Opteon 515B (R-515B) for stationary chiller applications, targeting the growing cooling requirements of AI-driven data center infrastructure. The new products expand Chemours’ portfolio of low-global-warming-potential (GWP) refrigerants and strengthen its positioning in cooling markets.
The launch is particularly significant as artificial intelligence is increasing demand for efficient and reliable data-center cooling infrastructure. Chemours is therefore leveraging its Opteon platform to address emerging cooling requirements while supporting customers’ environmental sustainability and decarbonization objectives.
The company has been expanding its presence in data-center cooling, including Opteon ZE and Opteon 515B. These refrigerants are characterized by low GWP and classified as ASHRAE A2L and A1, respectively. It complements the existing portfolio of Opteon refrigerants used in air conditioning, refrigeration, heat pumps and across the HVACR industry.
The company also benefits from its expertise in fluorochemicals. Overall, the intellectual property portfolio Chemours is building could provide additional opportunities for growth as regulatory standards get stricter and an increasing number of data centers drive demand for advanced cooling technologies.
CC’s shares have gained 4.4% over the past year compared with the industry’s 5% rise.
Image Source: Zacks Investment Research
CC’s Zacks Rank & Key PicksCC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Neo Performance Materials Inc. (NOPMF - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avient Corporation (AVNT - Free Report) .
While NOPMF currently sports a Zacks Rank #1 (Strong Buy), CRS and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NOPMF’s 2026 earnings is pinned at $1.48 per share, indicating a 202.04% year-over-year increase. NOPMF’sshares have gained 113.6% over the past year.
The Zacks Consensus Estimate for CRS’ fiscal 2027 earnings is pegged at $12.92 per share, indicating a rise of 20.07% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.39%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.17 per share, indicating a 12.41% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 30.1% over the past year.
Quanta Services zvýšila celoroční výhled volného cash flow na 2–2,5 mld. USD pro rok 2026 po růstu na 1,07 mld. USD v prvním pololetí. DSO kleslo na 57 dní z 62 před rokem.
Key Takeaways Quanta raises 2026 FCF outlook to $2-$2.5B after first-half FCF climbed to $1.07B from $288M.DSO fell to 57 days from 62 a year earlier, signaling faster revenue conversion into cash.Quanta sees 55%-60% FCF conversion potential as contract terms and business mix improve cash efficiency. Quanta Services, Inc. (PWR - Free Report) delivered strong cash generation in the second quarter of 2026, reinforcing one of the more encouraging aspects of its recent performance. Following a better-than-expected first half and improved visibility for the remainder of the year, the infrastructure services provider raised its full-year free cash flow (FCF) outlook to $2-$2.5 billion from $1.55-$2.05 billion. The updated forecast assumes operating cash flow of $2.9-$3.4 billion and roughly $900 million of net capital expenditures.
The increase comes after a sharp improvement in cash generation during the first six months of 2026. For the first half, FCF reached $1.07 billion, up from $288 million a year earlier. Operating cash flow totaled $1.49 billion through June, while net capital expenditures were about $417 million. Management cited that Quanta is securing more favorable contracting terms across the business, while expansion in mechanical, electrical and plumbing (MEP), engineering, procurement and construction (EPC), and renewable-energy work is supporting working-capital efficiency and stronger cash conversion.
The company's working-capital metrics also provide evidence of progress. Days sales outstanding stood at 57 days at the end of June 2026, down from 62 days a year earlier and well below Quanta's five-year historical average of 71 days. Lower DSO generally means revenues are being converted into cash faster, supporting operating cash flow. Management continues to view roughly 55% FCF conversion as a reasonable benchmark. However, Quanta sees opportunities to move into a 55%-60% range and says the company could potentially operate near the high end, with opportunities to exceed it depending on business mix.
Improving FCF could become increasingly important as Quanta continues investing aggressively in growth. The company spent $930.3 million on acquisitions during the first half of 2026 and $451 million on capital expenditures. Although accelerating utility activity could pressure working capital as large projects ramp, improving conversion and higher FCF expectations strengthen Quanta's capacity to fund growth and pursue disciplined capital allocation.
MasTec and Comfort Systems Show Mixed Cash Conversion TrendsQuanta’s improving free cash flow profile comes as infrastructure peers MasTec, Inc. (MTZ - Free Report) and Comfort Systems USA, Inc. (FIX - Free Report) also focus on converting strong end-market demand into cash while funding significant growth investments.
MasTec’s near-term cash conversion has been more constrained by working-capital needs. Despite strong second-quarter earnings growth, cash flow from operations was essentially flat as working-capital investment offset higher profitability. However, management still expects more than $1 billion of operating cash flow in 2026, with most of it anticipated in the fourth quarter. MasTec entered the second half with a record $21.4 billion backlog, supported by power delivery, clean energy, pipelines and mission-critical infrastructure, providing a solid base for future cash generation.
Comfort Systems, meanwhile, is demonstrating particularly strong cash conversion. The company generated $999 million of free cash flow in the second quarter, which management noted was roughly 2.5 times quarterly earnings. Favorable payment terms, advanced customer cash and strong project execution supported the performance. Despite funding acquisitions and substantial production-capacity investments, Comfort Systems ended the quarter with more than $1.8 billion of net cash and expects full-year capital expenditures to approximate 5% of revenues.
PWR’s Price Performance, Valuation & EstimatesPWR stock has rallied 59.4% in the year-to-date (YTD) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
PWR YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 40.53X, well above the industry’s 27.29X, as shown below.
PWR Valuation
Image Source: Zacks Investment Research
PWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.11 per share and $18.66, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 38.4% and 49.9%, respectively.
Image Source: Zacks Investment Research
PWR’s Zacks Rank
Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics ve 1. fiskálním čtvrtletí překonal odhady zisku i tržeb, když organické tržby vzrostly o 5,9 %. Firma zároveň zvýšila výhled růstu tržeb pro fiskální 2027 na 5–8 %.
Key Takeaways HAE beat Q1 earnings and revenue estimates as organic sales rose 5.9%, led by Plasma growth of 8.2%. Haemonetics' Plasma growth was supported by share gains, collection trends and Persona PLUS rollout. HAE raised fiscal 2027 reported revenue growth guidance to 5-8% and organic growth to 4-7%. Haemonetics Corporation (HAE - Free Report) posted first-quarter fiscal 2027 adjusted earnings of $1.14 per share, up 3.6% year over year. The figure beat the Zacks Consensus Estimate by 6.5%.
On a GAAP basis, earnings per share were 72 cents compared with 70 cents in the prior-year quarter.
Revenues increased 5.6% year over year to $339.4 million and beat the Zacks Consensus Estimate by 3.5%. Organic revenues rose 5.9%, with Plasma delivering particularly strong 8.2% organic growth.
Following the earnings announcement, HAE’s shares rose 0.4% last Friday.
HAE’s Apheresis Business Builds MomentumApheresis revenues totaled $191.3 million, up 5.3% on a reported basis and 6.0% organically. Plasma revenues increased 7.2% to $155.5 million, while organic growth reached 8.2%, supported by share gains, strong collection trends and the Persona PLUS rollout.
Management said U.S. customer collections rose in the high-single to low-double digits. Persona PLUS adoption was ahead of schedule, with early adopters achieving yield improvements of more than 5% versus earlier Persona offerings. Other Apheresis revenues declined 2.4% to $35.8 million, reflecting portfolio optimization and order timing.
Haemonetics’ MedSurg Growth BroadensMedSurg revenues rose 6.0% to $148.1 million, with organic growth of 5.9%. Blood Management Technologies revenues advanced 8.6% to $88.1 million and 8.1% organically, benefiting from double-digit growth in Hemostasis and Transfusion Management, partly offset by slower Cell Salvage capital upgrades.
Interventional Technologies revenues increased 2.5% to $59.9 million and 2.8% organically. Vascular Closure grew in the low double digits, aided by improving procedure trends, stronger commercial execution and broader use of the VASCADE MVP XL system. Management also cited growing adoption across large-bore venous closure procedures.
HAE’s Margin AnalysisIn the first quarter of fiscal 2027, gross profit increased 5.5% year over year to $202.8 million. Gross margin remained flat at 59.8% as cost of goods sold rose 5.8% to $136.6 million.
Selling, general and administrative expenses increased 7.4% to $118.9 million, while research and development expenses declined 0.4% to $16.2 million. Total operating expenses rose 5.0% to $145.3 million. Operating income increased 6.7% to $57.5 million from $53.9 million in the prior-year quarter, while operating margin expanded 10 basis points to 16.9%.
Haemonetics Strengthens Cash GenerationCash flow from operating activities reached $52.3 million, up $34.9 million from the prior-year quarter’s level. Free cash flow climbed to $39.1 million from $2.5 million, aided by favorable working-capital movements and lower non-cash equipment transfers, partly offset by higher capital expenditures.
Haemonetics ended the quarter with $223.4 million in cash and cash equivalents and total debt of about $1.17 billion. During the quarter, the company repaid $50 million on its revolving credit facility and repaid another $50 million after quarter-end, reducing the outstanding revolver balance to $200 million.
HAE Raises Fiscal 2027 Revenue OutlookManagement raised fiscal 2027 reported revenue growth guidance to 5-8% from 4-7%. Organic revenue growth is now projected to be 4-7%, up from the prior 3-6% guidance, while the expected impact from the 53rd week remains roughly 2%. The Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $1.41 billion.
Adjusted earnings per share are expected to grow in line with revenues. The Zacks Consensus Estimate is pegged at $5.28.
Our TakeHaemonetics ended the fiscal first quarter with both earnings and revenues surpassing estimates. Broad-based growth across the company’s core platforms supported the quarterly performance. HAE’s operating margin expansion looks encouraging.
With a strengthened competitive position and focus on disciplined execution, it has momentum for fiscal 2027 and beyond. Additionally, the raised full-year guidance bodes well for the company.
HAE’s Zacks Rank & Key Picks Haemonetics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Quest Diagnostics (DGX - Free Report) and Medpace (MEDP - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, which outpaced the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.
DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.
Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, which beat the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.
MEDP has a historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.
Selective Insurance zvýšila výhled čistého investičního výnosu po zdanění pro rok 2026 na 480 mil. USD z 465 mil. USD. Akcie Selective Insurance Group, Inc. za poslední rok vzrostly o 20,1 % a jsou blízko 52týdenního maxima.
Key Takeaways SIGI prioritizes underwriting profitability, with strong E&S and improved Personal Lines results. SIGI's renewal pricing increases in general liability and commercial auto aim to offset rising loss costs. SIGI raised 2026 after-tax investment income guidance to $480 million, up from $465 million. Shares of Selective Insurance Group, Inc. (SIGI - Free Report) have gained 20.1% in the past year, outperforming the industry and the Finance sector’s growth of 6.4% and 13.8%, respectively.
Selective Insurance has outperformed its peers, including NMI Holdings Inc. (NMIH - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and RLI Corp. (RLI - Free Report) . Shares of NMIH have gained 14.3%, while WRB and RLI shares have lost 1.5% and 5%, respectively, in the past year.
Image Source: Zacks Investment Research
The insurer has a market capitalization of $5.59 billion. The average volume of shares traded in the last three months was 0.5 million.
Shares of Selective Insurance closed at $93.89 on Thursday, near its 52-week high of $100.40. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 200-day simple moving average (SMA) of $84.94, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.
SIGI Shares are AffordableIts shares are trading at a discount to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.62X is lower than the industry average of 16.98X, the Finance sector’s 4.52X and the Zacks S&P 500 Composite’s 7.36X.
The company has a Value Score of A. This style score helps find the most attractive value stocks.
SIGI’s Growth Projection EncouragesThe Zacks Consensus Estimate for Selective Insurance’s 2026 earnings per share indicates a year-over-year increase of 9%. The consensus estimate for revenues is pegged at $5.46 billion, implying a year-over-year improvement of 2.5%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 8.8% and 0.9%, respectively, from the 2026 estimates. SIGI has an impressive Growth Score of B. This style score helps analyze the growth prospects of a company.
Optimistic Analyst Sentiment for SIGIThree of the five analysts covering the stock have raised estimates for 2026 over the past 30 days. Thus, the Zacks Consensus Estimate for 2026 earnings has moved north 2.5% over the past 60 days.
SIGI’s Favorable Return on EquityReturn on equity in the trailing-12 months was 14.5%, better than the industry average of 7.7%. This highlights the company’s efficiency in utilizing shareholders’ funds.
Factors Favoring SIGI StockSIGI continues to prioritize underwriting profitability over aggressive premium growth. Strong performance in the Excess & Surplus (“E&S”) segment, with a combined ratio of 91.8% in second-quarter 2026, and improved Personal Lines profitability, with a combined ratio of 92.8%, highlight the benefits of disciplined underwriting and selective risk retention. Management is selectively retaining its best-performing accounts while reducing exposure to underperforming businesses.
SIGI continues to raise renewal rates to address elevated loss-cost trends. The company achieved renewal price increases of nearly 10% in general liability over the past seven quarters, well above industry averages. In commercial auto liability, it witnessed pure price increases of almost 9.3% in the second quarter. Management believes these rate increases position the company to offset social inflation and improve long-term underwriting profitability.
Selective Insurance is steadily expanding its Standard Commercial Lines business toward a near-national footprint. It writes Standard Commercial Lines across 36 states and the District of Columbia, and its scale is supported by approximately 1,680 distribution partners operating across about 2,940 office locations, supporting geographic diversification and more stable, cycle-resilient premium growth.
Higher net investment income continues to support earnings growth. After-tax net investment income benefits from favorable yields and a conservatively positioned investment portfolio. Management raised 2026 after-tax net investment income guidance to $480 million from $465 million. The portfolio remains oriented toward fixed income and short-term investments, with an average credit quality of A+ and a fixed income duration of 4.3 years as of the second quarter of 2026.
Selective Insurance is also investing heavily in artificial intelligence and technology capabilities to enhance underwriting, claims processing and risk management. AI tools have already processed more than 0.5 million claims-related documents, while a significant portion of the company's 2026 strategic technology spending is focused on improving risk selection and pricing accuracy.
Selective Insurance continues to return capital through dividends and repurchases while keeping flexibility for underwriting and investment opportunities. The company continues to prioritize profitable growth and aims to return 20-25% of earnings to shareholders through dividends.
ConclusionWhile Selective Insurance remains well-positioned to gain from strong renewals, favorable E&S lines marketplace conditions and higher income earned on its fixed-income securities portfolio, challenges facing the company, such as exposure to catastrophe losses, rising competition and social inflation, can drive earnings volatility.
SIGI should benefit from favorable growth estimates, higher ROE, optimistic analyst sentiment and prudent capital deployment.
Coupled with an impressive dividend history, solid growth projections, favorable ROE and optimistic analyst sentiment, the time appears right for potential investors to bet on this Zacks Rank #2 (Buy) insurer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Selective Insurance also has a VGM Score of A. Stocks with a favorable VGM Score are those with the most attractive value, best growth and most promising momentum compared with peers. Its impressive dividend history as well as attractive valuations are other positives.
Key Takeaways Flowers Foods faces softer loaf demand, price-sensitive consumers and heavy promotions ahead of Q2 results. FLO may see lower volumes and cost pressures weigh on operating leverage and margins. Flowers Foods could benefit from Simple Mills, Nature's Own, keto, protein and snack strength. Flowers Foods, Inc. (FLO - Free Report) is likely to witness a top-and bottom-line decline when it reports second-quarter 2026 earnings on Aug. 20. The Zacks Consensus Estimate for revenues is pegged at around $1.2 billion, indicating a nearly 1% decrease from the year-ago period level.
The consensus mark for earnings has remained unchanged over the past 30 days at 23 cents a share, which suggests a drop of 23.3% from the figure reported in the year-ago period. FLO has a trailing four-quarter earnings surprise of 11.1%, on average.
Factors Likely to Influence FLO’s Upcoming ResultsFlowers Foods’ second-quarter performance is likely to have been pressured by continued softness in the traditional loaf category and strain on household budgets. Inflationary pressures are likely to have kept consumers price-sensitive and selective, encouraging trade-down across price tiers and shifts toward value-oriented channels. An intensely promotional environment is also likely to have weighed on volumes and market share.
On its last earnings call, management remained cautious on the near-term top-line outlook amid challenging category trends and ongoing consumer pressure. Our model suggests a 2.7% decline in volumes for the second quarter.
Lower volumes are likely to have constrained operating leverage and margins. Cost pressures related to diesel fuel, edible oils, packaging resin and potential tariff-related import costs may also have posed headwinds. However, productivity initiatives, disciplined cost management and tight control over commodities and overhead are likely to have provided some offset.
On the positive side, results are likely to benefit from strength in differentiated, better-for-you offerings. Simple Mills’ growth was forecast to accelerate through the balance of 2026 as innovation gained momentum. The Nature’s Own relaunch and supporting marketing campaign are likely to have aided demand, while strength in keto and protein offerings, snacks and other adjacent categories may have supported performance.
Earnings Whispers for FLOOur proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Flowers Foods currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Target Corporation (TGT - Free Report) currently has an Earnings ESP of +5.09% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pinned at $26.1 billion, which indicates 3.4% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s upcoming quarter’s EPS is pegged at $2.25, which implies 9.8% growth year over year. TGT delivered a trailing four-quarter earnings surprise of 8.2%, on average.
Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +1.61 and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.2 billion, which indicates an increase of 4.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Dollar General’s second-quarter fiscal 2026 EPS is pegged at $2.00, implying 7.5% year-over-year growth. DG has a trailing four-quarter earnings surprise of roughly 21%, on average.
Ross Stores, Inc. (ROST - Free Report) currently has an Earnings ESP of +4.03% and a Zacks Rank of 3. The consensus estimate for Ross Stores’ quarterly revenues is pinned at $6.1 billion, which suggests 10.7% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.92, which calls for a 10.7% jump year over year. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average.
Conagra Brands za poslední měsíc přidala 6,4 % poté, co ve 4. fiskálním čtvrtletí překonala odhady zisku a tržeb. Firma ale ve fiskálním roce 2027 očekává pokles organických tržeb o 1–3 %.
It has been about a month since the last earnings report for Conagra Brands (CAG - Free Report) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Conagra Brands due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Conagra Brands before we dive into how investors and analysts have reacted as of late.
Conagra Brands Q4 Earnings Beat Estimates, Sales Rise 3.6% Y/YConagra Brands reported fourth-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals. Adjusted earnings per share (EPS) for the quarter were 47 cents, beating the Zacks Consensus Estimate of 46 cents. The bottom line dropped 16.1% year over year.
Net sales increased 3.6% year over year to $2,882.1 million, slightly exceeding the Zacks Consensus Estimate of $2,876 million. The increase reflected a 7.7% benefit from the 53rd week and a 0.5% favorable foreign exchange impact, partly offset by a 4.6% headwind from M&A activity.
Organic net sales remained flat, supported by a 1.6% increase in price/mix, which offset a 1.6% decline in volume, with the company gaining volume share in categories including frozen single-serve meals, frozen multi-serve meals, frozen vegetables, meat snacks, seeds and pudding.
Adjusted gross profit declined 1.6% to $706 million, while adjusted gross margin contracted 130 basis points to 24.5%, as productivity initiatives, approximately $6 million in tariff refunds and the benefit of the 53rd week were more than offset by cost inflation and unfavorable operating leverage. Adjusted SG&A expenses, which include advertising and promotional expenses, increased 11% to $369 million, due to elevated incentive compensation and the impact of the 53rd week. Adjusted EBITDA declined 11% to $484.4 million.
Decoding CAG’s Segmental PerformanceGrocery & Snacks: Net sales rose 0.3% year over year to about $1.2 billion, reflecting a 7.8% benefit from the 53rd week, partly offset by an 8% M&A headwind, while organic net sales grew 0.5%. Organic growth was driven by a 4% increase in price/mix, partially offset by a 3.5% decline in volume. Adjusted operating profit fell 4.1% to $216 million
Refrigerated & Frozen: Net sales increased 5.3% to $1.2 billion, supported by a 7.6% benefit from the 53rd week despite a 1.8% M&A headwind and a 0.5% decline in organic net sales. Organic sales reflected a 0.8% decline in price/mix, partially offset by a 0.3% increase in volume. Adjusted operating profit decreased 18.5% to $139 million.
International: Sales jumped 6.3% to $244 million, benefiting from 6% favorable foreign exchange and a 7.6% contribution from the 53rd week, partially offset by a 4.9% M&A impact and a 2.4% decline in organic net sales. Organic sales were affected by a 3% decline in volume, partly mitigated by a 0.6% increase in price/mix. Adjusted operating profit slipped 7.1% to $33 million.
Foodservice: Net sales rose 8.1% to $302 million, driven by a 7.7% benefit from the 53rd week and 1.8% organic growth, partially offset by a 1.4% M&A headwind. Organic growth was supported by a 2.6% increase in price/mix despite a 0.8% decline in volume. Adjusted operating profit declined 6.9% to $29 million.
What to Expect From CAG in FY27?For fiscal 2027, the company expects organic net sales to decline 1-3%, adjusted operating margin to be in the range of 10-10.5%, and adjusted EPS of $1.40-$1.50. The outlook also assumes equity earnings of approximately $140 million and free cash flow conversion of more than 90%.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -20.88% due to these changes.
VGM ScoresAt this time, Conagra Brands has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Conagra Brands has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerConagra Brands is part of the Zacks Food - Miscellaneous industry. Over the past month, General Mills (GIS - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended May 2026 more than a month ago.
General Mills reported revenues of $4.61 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $0.95 for the same period compares with $0.74 a year ago.
For the current quarter, General Mills is expected to post earnings of $0.73 per share, indicating a change of -15.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Mills. Also, the stock has a VGM Score of C.
BridgeBio oznámila, že tržby z Attruby ve 2. čtvrtletí více než ztrojnásobily na více než 222 milionů USD. Celkové tržby firmy se téměř zdvojnásobily na téměř 244 milionů USD.
One of the more high-flying stocks in the U.S. biotech sector these days is genetic-disease-focused BridgeBio Pharma (BBIO -1.18%). That's due almost entirely to the outperformance of its Attruby heart medication.
If the generally bullish analyst sentiment on the company is anything to go by, Attruby is only at the start of a long, successful run. Also, BridgeBio is well on track to succeed with pipeline drugs in the near future.
Image source: Getty Images.
A new and popular treatment
Attruby received U.S. Food and Drug Administration (FDA) approval in late 2024 for the treatment of a rare progressive heart disease called transthyretin-mediated amyloid cardiomyopathy (ATTR-CM), a type of cardiac amyloidosis.
The drug is a state-of-the-art treatment for ATTR-CM and as such has seen significant growth in its short commercial life. In its recent second-quarter earnings report, BridgeBio disclosed that Attruby sales more than tripled year over year, to more than $222 million from $71.5 million in the year-ago period (its first full quarter on the market).
Since Attruby is far and away the primary contributor to overall revenue -- it's the only commercialized product currently producing sales -- BridgeBio's top line expanded admirably. Its total second-quarter tally was nearly $244 million, more than double the nearly $111 million in the second quarter of 2025.
The company also boasts quite a promising drug pipeline. In that recently completed quarter, it submitted New Drug Applications (NDAs) for all three of its late-stage developmental programs to the FDA; two were accepted for review.
The trio consists of the muscular dystrophy treatment BBP-418; encaleret, which targets a rare endocrine disorder, autosomal dominant hypocalcemia; and infigratinib, a drug that treats a form of short-stature skeletal dysplasia (commonly referred to as dwarfism).
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The power of the pipeline
That combination of a relatively new medication on a sharp rise and a lineup of high-potential drugs now under review is impressing analysts.
Following the earnings release, Piper Sandler's Biren Amin, to name one, raised his price target on the stock while maintaining his "overweight" (buy) recommendation. He believes the one developmental drug under review that's received a 2026 Prescription Drug User Fee Act (PDUFA) review date from the FDA, BBP-418, will earn approval and start generating revenue by the end of this year. Its PDUFA decision date is Nov. 27.
According to analyst tracking site TipRanks, 16 out of 17 pundits currently following BridgeBio's fortunes recommend it as a buy, with only one rating it a hold. Personally, I find that realistic. I'd go so far as to say that BridgeBio currently has one of the best combinations of a commercialized anchor drug and advanced developmental programs in the biotech sector.
That doesn't mean it's perfect, of course -- the company remains unprofitable. That's understandable, though, given the resources needed to support both the commercialization of Attruby and the late-stage development of three other drugs.
But to my mind, if any investor with some risk appetite is going to take a chance on a biotech, BridgeBio is a fine choice. Like most of those analysts, I think the stock can gain even more altitude.
MasTec má rekordní backlog 21,4 miliardy USD na konci 2. čtvrtletí 2026, meziročně o 30 % vyšší, a většina přírůstku za 1. pololetí ve výši téměř 2,5 miliardy USD má podpořit tržby v roce 2027.
Key Takeaways MasTec's backlog reached a record $21.4B, up 30% year over year at Q2 2026-end.Power Delivery, Clean Energy & Infrastructure and Pipeline are adding depth to backlog.Most of the $2.5B first-half backlog increase is expected to benefit 2027 revenues. MasTec, Inc. (MTZ - Free Report) has expanded its contracted work across power delivery, clean energy, pipeline and mission-critical infrastructure. Demand for grid modernization, power generation, renewables and natural gas infrastructure is supporting new project awards. The broader mix also gives the company multiple avenues to convert infrastructure spending into revenues.
Backlog reached a record $21.4 billion at the end of the second quarter of 2026, up 30% year over year and about 5% sequentially. The company also posted a 1.2x book-to-bill ratio. During the first half, backlog increased nearly $2.5 billion. Only a modest portion of this increase is expected to contribute to 2026 revenues, with the majority expected to benefit 2027.
Power Delivery, Clean Energy & Infrastructure and Pipeline are adding depth to the backlog. Power Delivery backlog reached approximately $6.3 billion, while Clean Energy & Infrastructure backlog rose to $7.8 billion. Pipeline backlog increased 35% sequentially to about $1.8 billion, with a 1.7x book-to-bill ratio. Power Delivery is benefiting from grid modernization and data center power demand, while renewables and natural gas infrastructure are supporting the other two segments.
Reported backlog also does not capture the full level of activity in some businesses. MasTec indicated that Pipeline has strong visibility beyond its reported backlog, while large project pursuits could add further awards. The company expects Power Delivery, Clean Energy & Infrastructure and Pipeline to drive additional backlog growth through year-end. This combination of contracted work and active project opportunities gives MasTec a broad base for revenue conversion as projects move into execution.
How MasTec Compares With Infrastructure Construction LeadersMasTec competes closely with EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) across electrical, mechanical and infrastructure construction. All three companies maintain sizable order books, providing revenue visibility and reflecting demand across power, data center and broader infrastructure markets.
EMCOR has built strong revenue visibility through record Remaining Performance Obligations, or RPOs. RPOs reached $17.14 billion at the end of the second quarter, up 44% year over year and 10% sequentially. About 95% of the increase was organic. Network and communications, led by data center activity, remained a major source of demand. Strong bookings in water and wastewater, health care and institutional markets also broadened the RPO base.
Quanta reported a record backlog of approximately $53.4 billion in the second quarter, up about 49% year over year from $35.8 billion. The order book reflects demand across utility, generation and technology load center markets. Larger programs and multiyear commitments are also developing across these markets, which could support revenues over an extended period. Recent acquisitions have added capabilities across electrical, mechanical, civil and fabrication services, further broadening the addressable market.
Both EMCOR and Quanta offer strong revenue visibility through sizable order books, while MasTec adds exposure across power delivery, pipeline, clean energy and mission-critical infrastructure. The comparison also shows different sources of backlog strength, with EMCOR benefiting from data center-led RPO growth, Quanta from large utility and technology load center programs and MasTec from a broader mix of infrastructure markets.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have gained 31.6% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.
MTZ Price Performance (YTD)
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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 25.13, as shown in the chart below.
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EPS Trend of MTZMTZ's earnings estimates for 2026 have moved upward in the past 30 days to $9.31, but the same for 2027 moved down to $12.67 per share. The revised estimates for 2026 and 2027 imply a year-over-year surge of 42.1% and 36.1%, respectively.
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MasTec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
