Track market-moving stories before they get noisy

Key Takeaways Acadia Healthcare raised 2026 adjusted EBITDA guidance as new facilities exceed expectations.ACHC added 300 beds in the first half of 2026 and remains on track for 500-600 beds.Higher expenses are pressuring margins, while ROE and ROIC remain below industry averages. Acadia Healthcare Company, Inc.(ACHC - Free Report) benefits from strong long-term demand for behavioral health services. The company is expanding its network through joint ventures, de novo facilities and bed additions. Shares of ACHC have surged 113.1% year to date, significantly outperforming the industry’s 13.2% growth during the same period.

Acadia Healthcare has a market capitalization of nearly $2.95 billion. However, the stock appears somewhat expensive relative to its industry peers. ACHC is currently trading at a forward 12-month P/E of 18.17X, higher than the industry average of 11.35X, indicating a premium valuation. ACHC currently carries a Zacks Rank #3 (Hold), along with a Value Scoreof C.

Where Do Estimates for ACHC Stand?The consensus mark for 2026 earnings is pegged at $1.54 per share, which has moved up 4 cents over the past 30 days. The consensus estimate for revenues is pegged at $3.43 billion, indicating 3.5% year-over-year growth. ACHC’s bottom line surpassed estimates in each of the trailing four quarters, the average surprise being 47%.

Acadia Healthcare Company, Inc. Price, Consensus and EPS SurpriseFactors Driving ACHC's PerformanceAcadia is making solid progress in ramping up its recently opened facilities, with revenues and facility-level EBITDA from the 2023-2026 facility cohorts exceeding expectations in the second quarter. It remains confident in generating $200 million of incremental adjusted EBITDA compared with 2025 as these facilities mature. Acadia also raised its 2026 adjusted EBITDA guidance to $590-$615 million from $580-$615 million, supporting its outlook for continued earnings growth.

Acadia continues to expand its network through joint ventures, de novos and bed additions. The company added more than 300 beds during the first half of 2026, including 240 licensed beds from newly constructed facilities in the second quarter. Acadia remains on track to add 500-600 beds in 2026, positioning it to capitalize on sustained behavioral healthcare demand.

Net cash provided by operating activities totaled $223.6 million in the first six months of 2026 compared with $145.0 million in the prior-year period. The company ended the quarter with $171.3 million in cash and cash equivalents and $669.8 million available under its revolving credit facility. Its long-term debt-to-capital ratio of 56.7% remains lower than the industry average of 73.2%, reflecting relatively healthy financial positioning. The company expects positive free cash flow generation in the second half of 2026 as capital expenditures decline to an estimated $235-$255 million. Higher operating cash flow and lower CapEx support financial flexibility.

Risk FactorsAcadia Healthcare continues to face elevated operating and legal expenses, which are pressuring profitability. In the second quarter of 2026, total expenses increased to $843.8 million from $819.2 million in the prior-year period due to higher salaries, wages, benefits, supply costs and professional fees.

Operating expenses also rose to 97.5% of revenues from 94.2% a year ago. Total operating expenses included a $28.6 million PLGL reserve adjustment; excluding this adjustment, operating expenses increased 3.1% year over year. These higher costs could continue to pressure Acadia’s margins and profitability.

ACHC’s profitability and capital efficiency metrics remain below industry averages, reflecting slower returns from recent expansion initiatives. The company’s trailing 12-month return on equity (ROE) was 6.2%, significantly below the industry average of 24.8%. Return on invested capital (ROIC) was 5.5%, below the industry average of 9.4%, indicating weaker return generation despite substantial investments, strong cash generation and valuable real estate assets.

Stocks to ConsiderSome better-ranked stocks in the broader Medical space are Tenet Healthcare Corporation (THC - Free Report) and BrightSpring Health Services, Inc. (BTSG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and LifeStance Health Group, Inc. (LFST - 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 Tenet Healthcare’s 2026 earnings is pegged at $19.85 per share, which has witnessed six upward revisions in the past 30 days, with no movement in the opposite direction. THC beat earnings estimates in each of the trailing four quarters, with the average surprise being 22.7%. The consensus estimate for 2026 revenues is pinned at $22.13 billion, implying 3.9% year-over-year growth.

The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.78 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for 2026 revenues is pinned at $15.24 billion, implying 18.1% year-over-year growth.

The Zacks Consensus Estimate for LifeStance Health’s 2026 earnings is pegged at 15 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. LFST beat earnings estimates in each of the trailing four quarters, with the average surprise being 166.67%. The consensus estimate for 2026 revenues is pinned at $1.71 billion, implying 19.7% year-over-year growth.

Key Takeaways Jack Henry's Q4 sales are expected to rise 2.1%, while earnings are projected to decline 18.3%.Cloud migration and public cloud growth are expected to support Core segment revenue in fiscal Q4.Higher medical costs, cloud spending and commissions may weigh on Jack Henry's Q4 margins.
Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fourth-quarter fiscal 2026 results on Aug. 18, after market close.

For the fiscal fourth quarter, the Zacks Consensus Estimate for sales is pegged at $628.3 million, indicating growth of 2.1% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at $1.43 per share, suggesting a decrease of 18.3% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.96%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence JKHY’s Q4 ResultsJack Henry’s fiscal fourth-quarter results are likely to benefit from growing momentum in services and support categories. The Zacks Consensus Estimate for services and support revenues is pegged at $357.2 million, indicating growth of 1.7% from the year-ago quarter’s reported figure.

Strength across the Core segment due to continued migration from on-premise to private cloud and robust growth in its public cloud offerings is expected to aid the upcoming results. Increasing demand for the Jack Henry Platform, a single public cloud-native platform designed to run the entire financial institution, and the company’s growing technology modernization strategies might have been other positives. The consensus estimate for the Core segment’s revenues is pinned at $194.5 million, indicating a rise of 2.6% from the year-ago reported figure.

Strength across the Payments segment due to robust card transaction solutions and growth in its Enterprise Payment Solutions business is likely to have acted as a tailwind for the company in the quarter under review. Moreover, JKHY’s strong sales across Financial Crimes Defender and continued expansion of faster payments infrastructure, PayCenter, are likely to have driven its Payments segment in the to-be-reported quarter. The consensus mark for Payments revenues is pegged at $234.2 million, implying growth of 2.2% year over year.

The company’s diverse mix of solutions, including Banno, Financial Crimes Defender and Fraud & Risk Management Add-ons, is expected to have driven growth in the Complementary segment during the fiscal fourth quarter. The consensus estimate for Complementary revenues is pegged at $178.4 million, indicating an increase of 1.9% from the year-ago quarter.

However, Management expects slower digital revenue growth in the fourth quarter compared with the previous three quarters because of lower active-user growth, some pressure on card revenues and risk-management revenues, and lower one-time network incentive revenues. Further, higher medical costs, cloud migration infrastructure spending and commissions are also expected to have weighed on the company’s margins during the fourth quarter of fiscal 2026.

What Our Model SaysOur proven model does not conclusively predict an earnings beat for JKHY this season. The combination of a positive Earnings ESP and Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

JKHY currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.37% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is slated to report third-quarter fiscal 2026 results on Aug. 19. The Zacks Consensus Estimate for ADI’s third-quarter earnings is pegged at $3.33 per share, up by a penny over the past 30 days, indicating a rise of 62.4% from the year-ago quarter’s reported figure.

OSI Systems (OSIS - Free Report) has an Earnings ESP of +1.86% and carries a Zacks Rank #2 at present.

OSI Systems is set to report fourth-quarter fiscal 2026 results on Aug. 20. The Zacks Consensus Estimate for OSI Systems’ fourth-quarter earnings is pegged at $3.76 per share, up by 2 cents over the past 30 days, indicating a rise of 16.1% from the year-ago quarter’s reported figure.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +0.52% and carries a Zacks Rank #2 at present.

NVIDIA is set to report second-quarter fiscal 2027 results on Aug. 26. The Zacks Consensus Estimate for NVIDIA’s second-quarter earnings is pegged at $2.09 per share, up by 2 cents over the past 60 days, indicating a rise of 99.1% from the year-ago quarter’s reported figure.

It has been about a month since the last earnings report for JB Hunt (JBHT - Free Report) . Shares have lost about 5.4% 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 JB Hunt 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 latest earnings report in order to get a better handle on the important catalysts.

Earnings Beat at J.B. Hunt in Q2J.B. Hunt Transport Services reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

JBHT's Intermodal Business Leads the UpswingIntermodal revenues increased 22% year over year to $1.75 billion. Volume rose 10%, with transcontinental loads up 5% and Eastern network loads advancing 16%. Revenue per load increased to $3,034 from $2,738, while the metric excluding fuel surcharge revenue improved 1%.

Operating income surged 58% to $150.9 million. Stronger network efficiency, drayage productivity, fewer empty container moves and lower storage expense supported the gain. Cost-to-serve initiatives also helped, though higher insurance and professional driver expenses partly offset the improvement.

J.B. Hunt's Dedicated Operations Stay SteadyDedicated Contract Services revenues rose 9% to $920.7 million. Revenue per truck per week advanced 9% to $5,635, while average truck count was approximately flat. Productivity excluding fuel surcharge revenues increased 2% due to contracted index-based price escalators.

Operating income grew 9% to $102.5 million. Higher revenues, lower group medical claims and continued cost reductions supported profitability. Higher insurance premiums, equipment-related expenses and new-business onboarding costs limited the upside. Customer retention remained approximately 96%.

JBHT's Brokerage Unit Returns to ProfitIntegrated Capacity Solutions’ revenues jumped 49% to $388.5 million. Segment volume increased 19%, while revenue per load rose 26% to $2,477. Contractual freight represented 65% of total loads and 63% of revenues during the quarter.

The segment posted operating income of $1.7 million compared with a loss of $3.6 million a year earlier. Higher volume and revenue per load lifted gross profit despite a 54% increase in purchased transportation expense. Gross margin narrowed to 12.5% from 15.5%, but improved from 12.0% in the first quarter of 2026.

J.B. Hunt's Truckload Costs Pressure ResultsTruckload revenues increased 35% to $239.7 million. Revenues excluding fuel surcharge climbed 28% as load volume grew 14% and revenue per load excluding fuel surcharge advanced 13%. Trailer turns improved 13% because of better network balance and velocity.

The business recorded an operating loss of $1.3 million versus an operating income of $3.4 million in the prior-year quarter. Higher purchased transportation costs drove a 12% decline in gross profit. Cost management and productivity gains provided only a partial offset.

JBHT's Final Mile Sales and Profit DeclineFinal Mile Services revenues fell 6% to $198.0 million. The decrease reflected known business losses tied to efforts to improve account quality and profitability. Stabilizing demand and new business implemented during the past year partly cushioned the decline.

Operating income dropped 30% to $5.6 million. Lower revenues and higher purchased transportation expenses weighed on results. Reduced claims and facility rental expenses, along with continued cost-to-serve improvements, softened the pressure.

J.B. Hunt Expands Margins Despite Higher Transport CostsCompanywide operating income rose 32% to $259.5 million, while operating margin improved to 7.4% from 6.7%. Higher revenues, productivity gains, structural cost reductions and lower medical claims supported margin expansion.

Rents and purchased transportation increased to 48.0% of revenues from 43.3%, reflecting cost pressure in highway-related operations. Salaries, wages and employee benefits declined to 23.5% of revenues from 27.9%, while general and administrative expenses fell to 1.9% from 2.6%.

JBHT Strengthens Its Debt PositionNet cash provided by operating activities totaled $723.3 million for the first six months of 2026 compared with $806.2 million a year earlier. Net capital expenditures declined to $144.9 million from $399.1 million.

Total debt stood at approximately $1.15 billion at June 30, 2026. JBHT repurchased roughly 392,000 shares for about $98 million during the quarter, leaving approximately $791 million under its authorization. The company also narrowed its expected 2026 tax-rate range to 24.0%-24.5%.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

VGM ScoresAt this time, JB Hunt has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise JB Hunt has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Key Takeaways Clean Harbors' Q2 EPS rose 36.4% to $3.22 as revenues climbed 12% to $1.74 billion.CLH raised 2026 adjusted EBITDA guidance to $1.35-$1.41 billion after a strong first half.Clean Harbors trades at 15.8X EV/EBITDA versus 12.5X for its sub-industry, reflecting a premium. Clean Harbors, Inc. (CLH - Free Report) shares have gained 13.3% in the past three months, extending a broader advance as operating results and the 2026 outlook improved.

The recent move has fundamental support from earnings growth, disposal-network demand and higher guidance. Still, a premium valuation leaves less room for execution shortfalls and keeps the investment case balanced.

CLH’s Earnings Momentum Supports the 3-Month GainSecond-quarter earnings rose 36.4% year over year to $3.22 per share and topped the Zacks Consensus Estimate of $2.74 by 17.5%. Revenues increased 12% to $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%.

Profitability strengthened with the top line. Adjusted EBITDA climbed 21.6% to $409 million and the adjusted EBITDA margin expanded 190 basis points to 23.6%. Net income increased 34.3% to $170.5 million, while income from operations advanced 27.9% to $268.9 million.

Clean Harbors’ Disposal Network Is Running HotEnvironmental Services revenues rose 7.7% to $1.46 billion. Technical Services revenues increased 18% as disposal and recycling demand, project activity and acquisitions supported growth. Incinerator utilization reached 91% versus 86% a year earlier, while landfill volumes increased 7%.

The demand picture includes remediation and PFAS-related work, plus a 10-year disposal contract valued at an estimated $600 million. The contract begins in the fourth quarter of 2026 and is expected to reach full capacity in 2030, adding a longer-duration element to the disposal-network story.

CLH Raises Guidance After a Strong First HalfManagement raised the midpoint of 2026 adjusted EBITDA guidance by $110 million to $1.38 billion. The new range is $1.35-$1.41 billion. It also lifted the midpoint of adjusted free cash flow guidance by $30 million to $550 million, within a $520-$580 million range.

The third-quarter outlook points to continued momentum. Clean Harbors expects adjusted EBITDA to grow 24%-28% year over year, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products.

Clean Harbors Still Trades at a PremiumCLH trades at 15.8X EV/EBITDA versus 12.5X for its Zacks sub-industry and above its five-year median of 11.7X. The premium increases the importance of sustained earnings growth and delivery against the raised outlook if the recent share-price advance is to continue.

                                                                           Image Source: Zacks Investment Research

GFL Environmental Inc. (GFL - Free Report) is a large North American environmental-services company focused on solid waste management. Waste Connections, Inc. (WCN - Free Report) provides non-hazardous waste collection, transfer and disposal services, making both useful reference points for investors assessing the broader waste-services landscape.

CLH’s Rating Mix Supports a Balanced ViewThe 13.3% three-month gain is backed by better earnings, higher margins and stronger guidance, but valuation limits the case for extrapolating the advance without qualification. The operating setup remains favorable, while the premium multiple raises the bar for continued execution.

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

Clean Harbors also has a VGM Score of B, Growth Score of B, Momentum Score of B and Value Score of C. The B scores indicate favorable growth and momentum characteristics, while the C Value Score is more neutral. Combined with a Hold rank, the mix supports a measured stance rather than treating recent momentum as an automatic buying signal.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus.

SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027.

One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here.

A Rerating That Erased Half The Stock In A Year
SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits.

The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count.

The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value.

Why The Sell-Side Still Sees A Path Back Above $12
Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum.

H.C. Wainwright’s bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Church’s Texas Chicken, Torchy’s Tacos, and White Castle, expansion into Vision AI and the Agentic+ platform, and cross-selling voice into the Amelia and LivePerson customer bases. Operational leverage is expected to push SoundHound toward adjusted EBITDA break-even by late 2026 or 2027, backed by a debt-free balance sheet.

CEO Keyvan Mohajer told investors that “our pipeline has never been this big, and our win rate has never been this good,” citing an eight-figure commitment signed in less than 90 days from demo to contract. With Gartner projecting agentic AI software spending near $1 trillion by 2030, the analyst view is that SoundHound is early in a category it helped define. Recent revisions have leaned reiteration and upgrade, not downgrade.

SoundHound Fell Alone Among Its Direct Peers
The broader enterprise and voice AI cohort is soft, but SOUN’s 12-month drop is the steepest of the closest comparables.

Cerence (NASDAQ:CRNC), the closest voice-in-vehicle competitor, trades at $8.61 against a consensus target of $10.75, roughly 25% upside. It has fallen 36.32% over the past year. The rating slate skews Hold at one Buy and four Holds.

C3.ai (NYSE:AI | AI Price Prediction) sits at $10.18 with a consensus target of $8.82, meaning analysts collectively see downside from here. Shares are off 45.27% over 12 months, and the rating mix is bearish at one Buy, seven Holds, three Sells, and three Strong Sells following downgrades tied to restructuring under returning CEO Tom Siebel.

BigBear.ai (NYSE:BBAI) trades at $3.34 with a consensus target of $4.00, about 20% upside. The stock is down 42.51% on the year, with one Buy and two Holds and no meaningful upgrade momentum.

The largest analyst-implied upside across the group belongs to SoundHound at 69.92% on consensus, and 167% on the Street-high case.

Consensus Says 70% Upside, The Street-High Says 167%
SOUN trades at $7.48 with an average analyst target of $12.71, implying 69.92% upside. Coverage is concentrated among eight analysts, with six Buy ratings and two Hold, and no Sells.

Year to date, SOUN is off 24.97%, while the S&P 500 is up 14.07%. Recent trading has been firmer, with the stock up 11.81% over the past month following the Q2 report. Reddit sentiment around the earnings release ran very bullish at 82, and insider activity is net buying with 17 recent transactions.

Opportunity Or Value Trap
The bull case strengthens if the LivePerson deal closes cleanly and combined 2027 revenue arrives at the $350 million to $400 million range with gross margin marching back toward the 70% level the CFO explicitly targets. The path to consensus $12.71 runs through EBITDA break-even, continued 40%-plus revenue growth, and OASIS wins that convert eight-figure demos into signed contracts. Scott Buck’s $20 target stops looking like a stretch if that happens.

The bear case takes hold if cash burn chews through the $202.8 million war chest faster than losses narrow, if $21.5 million quarterly stock comp turns growth into permanent dilution, or if LivePerson integration surfaces execution risk. A high beta of 2.83 means the round trip could hurt.

The peer group offers less upside on worse fundamentals, the consensus gap is real, and the operating trajectory is trending the right way. This is a high-volatility bet on execution rather than a safe compounder, and position sizing matters more than conviction here.

Contact [email protected] for any questions or corrections.

Shares of Trump Media & Technology (DJT +0.96%) fell 18.1% this week, according to data from S&P Global Market Intelligence. The holding company for the Trump family media businesses reported earnings earlier this week, posting large losses on its cryptocurrency assets as it searches for a business model.

Shares are now down 87% from the time of Trump Media's merger with a special purpose acquisition corporation (SPAC) in March of 2024. Here's why shares fell this week, and whether now is a good time to buy the dip.

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Selling posts, huge losses On August 10, Trump Media & Technology reported its Q2 earnings. The company generated just $1.7 million in revenue in the quarter, mainly from advertising on the Truth Social platform. However, it had a net loss of $238 million, mainly due to the decline in digital cryptocurrency assets held on its balance sheet, such as Bitcoin.

The company has two new initiatives for the rest of this year. First is the merger with a nuclear fusion company called TAE Technologies, which it expects to close later this year. This is a peculiar merger, as it is a deep technology start-up that generates close to zero revenue and is working on a technology that has never been solved before.

Second, the company is trying to sell investment firms the Truth+ API for upwards of $100,000 a month, which would give immediate access to President Trump's posts on the platform. The service is already being scrutinized closely by the media and courts, as it appears to be a way to sell potentially market-moving information before the wider public sees it.

Image source: Getty Images.

Should you buy the dip? The stock still has a market cap of $2.3 billion and barely any business model today. It has cash and cryptocurrencies on the balance sheet, but the net book value is still around half of where the shares trade today.

Add it up, and investors would be smart to avoid buying the dip on Trump Media & Technology stock today.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways Nebius Group will lease high-density capacity at Vantage's CWL1 campus in Newport for AI workloadsNebius Group's Q2 revenue surged 454%, while its adjusted EBITDA margin reached 41%.Nebius Group targets 5 GW of contracted power by year-end and over 1 GW of annual deployment in 2027. The race to build AI infrastructure is rapidly accelerating, and South Wales has been designated a U.K. AI Growth Zone. The recent agreement between Vantage Data Centers and Nebius Group N.V. (NBIS - Free Report) is set to drive this transformation, bringing high-density, NVIDIA (NVDA - Free Report) -powered AI infrastructure to Vantage’s CWL1 campus in Newport.

Per the deal, NBIS plans to lease high-density capacity at Vantage’s CWL1 campus to support a broad range of workloads, including AI training, inference, agentic AI and enterprise applications. The infrastructure will serve a diverse customer base ranging from startups and researchers to large enterprises and public-sector organizations. The move forms part of Nebius’ much larger U.K. expansion strategy. In June, NBIS announced approximately £1.7 billion of committed capacity buildout across four U.K. sites. Newport expands Nebius’ U.K. capacity while diversifying its AI cloud footprint.

The deployment will leverage NVIDIA’s latest full-stack, end-to-end DSX AI factory reference design. NVIDIA’s AI factory approach is designed to optimize these components as an integrated system. For Nebius, deploying NVIDIA-powered infrastructure in a purpose-built, high-density facility can accelerate the deployment of new AI capacity while giving customers access to a familiar, highly optimized technology stack. NBIS’ second-quarter revenue grew 454% year over year, with adjusted EBITDA margin rising to 41%, driven by high-margin capacity sales and early investments.

Nebius aims to reach 5 GW of contracted power by year-end, with plans to deploy more than 1 GW annually in 2027. Construction of data centers is progressing well, with recent innovations such as asset-light partnerships to scale capacity faster. Deals worth more than $20 million per MW with less than two-year payback will start online in late fourth quarter.

Competition Heats Up for NBIS in the AI Cloud RaceMicrosoft's (MSFT - Free Report) AI investments are converting into measurable commercial traction across its stack. Multi-model flexibility, paired with continued access to OpenAI's frontier models under an IP arrangement extending to 2032, allows customers to optimize cost and performance while keeping Microsoft central to their AI infrastructure decisions. With demand still outpacing available capacity, this positioning across AI infrastructure, tooling and applications should continue widening Microsoft's addressable opportunity heading into fiscal 2027. In May, Microsoft signed new agreements with U.S. and U.K. government partners — the Center for AI Standards and Innovation and the AI Security Institute — to advance AI testing and safety evaluation frameworks.

NBIS’ direct competitor, CoreWeave, Inc. (CRWV - Free Report) , is expanding its global infrastructure as demand for AI cloud services continues to strengthen across sectors, geographies and workloads. In June, CRWV announced a new colocation agreement with Conapto, a provider of scalable, secure and sustainable data center solutions. The partnership covers two data center campuses in Stockholm, Sweden, with initial capacity already operational at the Stockholm 4 South facility. Both campuses will be powered by renewable energy, supporting CoreWeave's efforts to expand its AI cloud infrastructure in Europe while maintaining a focus on sustainability. CoreWeave reported record revenue of $2.6 billion, up 112%.

NBIS Price Performance, Valuation and EstimatesShares of Nebius have gained 204.7% year to date compared with the Internet – Software and Services industry’s growth of 21%.

Image Source: Zacks Investment Research

In terms of price/book, NBIS’ shares are trading at 8.91X, higher than the Internet Software Services industry’s 4.2X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NBIS’ earnings for 2026 has been revised downward over the past 60 days.

Image Source: Zacks Investment Research

NBIS currently carries a Zacks Rank #4 (Sell).

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

Wall Street treats GPUs like disposable electronics. CoreWeave (CRWV -1.10%) is running them like long-duration infrastructure.

What's the deal with this stock? CoreWeave is borrowing tens of billions of dollars to buy Nvidia (NVDA +0.10%) chips and rent them to AI software builders. The bear case against the stock is simple: Graphics chips age quickly. If Nvidia launches faster processors every 12 months, three-year-old chips should become useless, trapping CoreWeave in a cycle of taking on new debt just to replace dying hardware.

That theory has a flaw. The real-world contract data shows older chips are not dying.

Fully depreciated on paper. Fully rented in reality. Image source: The Motley Fool.

Wall Street thinks GPUs decay like iPhones. The contracts say otherwise. On its Q2 2026 earnings call, CoreWeave disclosed a multi-year renewal on a cluster of Nvidia A100 GPUs extending into 2029. Nvidia introduced the A100 in 2020. That means an architecture introduced in 2020 can still generate contracted cash flow nearly a decade later.

Management explicitly laid out the mechanism: As earlier-generation fleets finish their initial contracts, they deliver returns in subsequent years because much of the underlying capital burden has already been paid down. Wall Street models assumed older GPUs would be retired or deeply discounted. Instead, they are staying online at attractive prices.

Older chips do not need to win benchmarks to make money Scarcity explains part of this demand. Power connections take 18 to 24 months to build, so software teams rent whatever active compute is available today. But the longer-term mechanism is workload cascading.

The newest chips naturally get the jobs where speed matters most. Older chips can move down the stack to fine-tuning, inference, coding workloads, and smaller models where customers care more about cost than benchmark leadership.

As the market matures, compute demand splits by cost and task:

Frontier pre-training: Uses top-tier processors like Blackwell because raw speed dictates training time.

Fine-tuning and domain adaptation: Moves to previous-generation chips like the H100, where customers can trade some speed for a lower cost.

Inference and everyday applications: Operates on older architectures like the A100.

An older GPU does not need to beat a new chip on raw speed. It only needs to be cheap and reliable enough for tasks that do not justify top-tier pricing.

The second lease is where the real economics live The economics of a GPU cluster change after its initial contract. During the first lease (typically three to five years), customer payments recover a substantial portion of the original hardware cost and service the debt used to buy it. By the time that lease expires, the unrecovered capital burden sitting on those servers drops significantly.

Second and third leases operate on a different financial equation. Power, facility rent, and maintenance still cost money. But the heavy debt service and capital recovery are largely finished. Every dollar of revenue from a renewal generates higher incremental returns on already-recovered capital.

That creates an asset-management flywheel: The initial contract carries most of the capital burden. The extension monetizes an asset whose original investment has already been substantially recovered.

Lenders are now betting on what happens after year three Debt markets are beginning to price in this residual value. Historically, lenders matched GPU debt maturities directly to the length of the underlying customer contract. CoreWeave's $2.6 billion DDTL 5.5 debt facility broke that pattern. The debt carries a five-year maturity, but the customer contracts backing it average only three years.

That gap matters. Lenders are accepting exposure beyond the initial customer lock-in, which suggests they are increasingly comfortable underwriting some residual economic value after the first contract ends.

Nvidia is building a broader framework around this concept. It partnered with a consortium of six major asset managers and banks (Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR) to mobilize over $500 billion of private capital, explicitly aiming to turn AI compute into a recognized investable asset class. Reporting indicates Nvidia may even provide limited residual-value support on certain debt structures. When equipment suppliers and private credit markets back residual value, GPU compute stops looking like disposable tech hardware and starts looking more like financed infrastructure.

Verdict: The asset machine is working, but leverage is the price of admission CoreWeave is making a clear trade-off. It is taking on heavy debt and significant near-term interest drag to build a massive pool of infrastructure. That strategy fails if older GPUs lose their rental value quickly.

The A100 extension shows that older GPUs can remain economically useful far longer than the bear case assumes. CoreWeave's real advantage is not just getting new Nvidia chips first. It is extracting cash from second and subsequent contracts on hardware the market assumed would be obsolete.

Watch what happens as the first H100 contracts mature and how cheaply CoreWeave can continue financing project-level infrastructure. If older fleets keep renewing at attractive economics while SPV financing remains cheap, the residual-value thesis gets stronger.

After trying and failing to delay the matter, Apple on Thursday submitted its proposal for the commissions it wants to charge on purchases made using external links inside apps on its iOS devices.

In a new filing in the U.S. District Court of Northern California, Apple proposed new commissions of 15% for standard apps, with further discounts for developers who are enrolled in special Apple programs.

Under the proposed structure, small business developers would pay a 5% commission on payments, while those in the Video Partner Program, News Partner Program, and Mini Apps Partner Program would pay 10%. Subscription renewals would also be reduced to 10%, the filing states.

The iPhone maker has been engaged in a years-long legal battle with Epic Games over its alleged anti-competitive policies regarding App Store commissions, and had been attempting to stall its answer to the court’s request for this part of its commission structure.

Apple tried to argue that these lower court proceedings should wait until the Supreme Court ruled on another matter related to the case: whether or not Apple was in contempt of a court order when it imposed a new 27% commission on purchases made through external links, and imposed rules that restricted how developers could present those links to customers.

The Supreme Court on Thursday rejected Apple’s bid to pause further action in the lower court’s case, forcing the company to reveal its planned commission structure.

Apple’s position is that it should be permitted to charge fees on in-app purchases made by users of its devices as a means to recoup its investments in the tools, technology, and services that allow it to maintain its App Store and software.

The company also compared its link-out fees to those on Google Play, which charges 20% link-out rates for standard apps, 15% for apps in special programs, and 10% for subscription renewals, noting that Epic Games had agreed to these rates.

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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.

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At $305.26, Apple (NASDAQ:AAPL | AAPL Price Prediction) is a Hold. The stock hovers just above its fundamental floor in the $280 to $300 range, with a genuinely balanced setup.

Apple remains the world’s most valuable consumer technology company, with a $4.41 trillion market cap anchored by iPhone, growing Services annuity, and one of the most aggressive buyback machines in the market. After rallying to a 52-week high near $344, shares pulled back to their 50-day moving average of $309.48, with the 200-day at $280.09 sitting exactly where the floor thesis lives.

The June-quarter earnings report showed $109.4 billion in revenue, up 16% year over year was strong. Yet the stock is down 2.96% over the past month.

The Bull Case: A Trillion-Dollar Buyback Sink Under A Software Multiple Bulls argue Apple has quietly become a software-margin business wearing hardware clothing. Services generated $30.7 billion at a 75.6% gross margin, pulling total company gross margin to 50.1%. That is annuity-like economics investors will pay up for.

Apple repurchased $62.09 billion in stock across the first nine months of FY2026, on top of $90.71 billion in FY2025 buybacks. That constant float compression puts an automatic bid under the stock near $280. Layer in Siri AI, which management called an “off the charts” product, and the AI ecosystem thesis gives bulls a multi-year narrative.

The Bear Case: A 34x Multiple Meets Memory Inflation And Supply Shocks The bear case starts with valuation. At 35x trailing P/E and a 32x forward P/E, Apple trades like a hyper-grower while guiding to only 9% to 11% revenue growth next quarter. The PEG of 2.486 and 42x price-to-book leave zero room for a stumble.

Margin risk is quantifiable. Tim Cook described memory pricing as a “100-year flood” with September-quarter memory costs even higher than June’s. Roughly 2 points of Q3 gross margin and $0.11 of EPS came from one-time tariff refunds. Strip that out and the beat looks routine. Supply chain leverage tilting toward vendors, illustrated by the CXMT pricing standoff, means margin expansion is not guaranteed.

The Hold Case: A Floor That Holds, A Ceiling That Grinds Neither side clearly wins at $305. The floor is real: buybacks, Services mix, and installed base of more than 2.5 billion active devices defend the low end. But upside is narrow. Analyst consensus sits at $322.28, implying only modest room to run.

Prediction markets echo the pinning dynamic. Polymarket traders assign a 98.5% combined probability to Apple closing August between $280 and $296, with just 25% odds of clearing $336. The range holds.

What The Data Says Apple trades at $305.26, up 12.59% year to date and 31.31% over the past year. That YTD figure roughly tracks the broader S&P 500, and Apple’s one-year return has outpaced the index.

The $322.28 analyst target implies roughly 6% upside. Of 46 covering analysts, 28 rate the stock Buy or Strong Buy, 14 Hold, and 4 Sell or Strong Sell. Valuation runs rich at 34x trailing earnings and 9.45x sales, while the full-chain put/call ratio of 0.42 shows options traders leaning bullish.

The Verdict: Waiting For The Next Catalyst At $305.26, Apple is a Hold.

The floor thesis is intact. Aggressive buybacks, expanding Services mix, and growing installed base defend the $280 to $300 range. But at 32x forward earnings against 9% to 11% near-term revenue growth, upside requires Siri AI to prove itself as a monetizable catalyst rather than a demo.

Specific triggers to watch: A Buy re-rate would require Siri AI monetization traction through iCloud Plus upgrades, memory costs peaking, and iPhone 18 momentum through the holiday. A Sell decision would come if September gross margin lands below the 47% floor, supply constraints deepen beyond forecast, or Services growth slips below the guided sub-10% cadence.

The cost of patience is a modest 6% opportunity cost to the analyst target. The cost of acting prematurely is chasing a stock priced too highly into a quarter management already flagged as one they will be “scrambling on the supply side” to deliver. Until Siri AI or memory costs break the standoff, standing pat is the sharpest call.

Contact [email protected] for any questions or corrections.

Walmart Inc (NYSE:WMT, XETRA:WMT) is expected to post largely in-line second-quarter results, with investor focus centered on second-half guidance, the treatment of potential tariff refunds, and how much of that money gets reinvested into pricing, according to a note from Jefferies.

Analysts at the firm said management has continued to emphasize a consistent strategy built around price leadership, including plans to funnel potential tariff refunds into lower prices to widen the retailer's price gaps against competitors and drive market share gains, particularly in consumables.

Jefferies said Walmart remains upbeat on private label growth and e-commerce, pointing to strong marketplace expansion, improving online profitability, and continued investment in automation and fulfillment as key drivers of long-term share gains and margin expansion. Management has acknowledged some volatility in consumer spending, especially among lower-income shoppers, but still expects solid earnings before interest and taxes growth, the note said.

Investor debate centers on the implied back-half guidance and how management characterizes the company's earnings power beyond an expected solid second-quarter print, Jefferies said. Other investor questions include how tariff refunds would flow through the income statement, how much would be reinvested into price, and whether management adjusts its full-year outlook.

Jefferies flagged a possible modest read-through from the roughly 100 basis point Cyclospora-related headwind expected at Grocery Outlet, noting both retailers have significant grocery exposure and could face similar produce-related demand pressures.

Foot traffic data tracked by Jefferies showed a slight deceleration on a three-month average basis in July, up 1.2% compared with 2.6% in April, though two-year stack trends were steadier at 0.6% versus 0.7%.

Jefferies left its estimates unchanged, forecasting US comparable sales growth of 3.6% and earnings per share of $0.74, broadly in line with consensus.

The firm said it believes investors are underappreciating Walmart's resilience across macroeconomic environments, along with earnings power building from improving e-commerce margins and advertising revenue, as well as the potential upside from future tariff refunds reinvested into price ahead of the back-to-school and holiday seasons.

Key Takeaways Disney's games business topped $4 billion in consumer spending in the latest fiscal year.Nine Disney titles have each generated more than $1 billion at retail, spanning Marvel and other franchises.Disney's Epic Games partnership aims to unite Fortnite, Disney storytelling and creator-made content. Disney (DIS - Free Report) is sharpening its case for gaming as a genuine growth engine. Disney said its games business, largely run through licensing partners, has driven an estimated $3.5 billion in annual consumer spending over the past four years and crossed $4 billion in consumer spending in the most recent fiscal year.

The company disclosed that nine titles in its portfolio have each generated more than $1 billion at retail, spanning franchises such as Kingdom Hearts and Marvel Strike Force, with newer releases including Marvel T??kon: Fighting Souls and the upcoming Marvel's Wolverine, slated for a September launch. Lucasfilm Games contributes titles across more than 20 genres, while Disney and Pixar mobile games, including Disney Solitaire, Disney Tsum Tsum and Disney Magic Kingdoms, have together surpassed one billion installs since 2014.

Layered onto this licensing base is Disney's collaboration with Epic Games, backed by a roughly $1.5 billion investment, aimed at building an entertainment universe combining Fortnite, Disney storytelling and creator-made content. Past activations point to reach: a Simpsons-themed Fortnite event in November 2025 logged 780 million hours played across more than 80 million unique players, while an earlier Marvel-themed in-game event drew over 15 million concurrent players.

These gaming disclosures follow fiscal third-quarter 2026 results, reported Aug. 5, in which total revenues rose 7% to $25.2 billion, and adjusted earnings per share grew 28% to $2.06, both ahead of prior guidance. Streaming revenues increased 11% with a 13% operating margin, and management reiterated full-year adjusted EPS growth guidance near 12%, excluding an extra fiscal week.

Even so, gaming's direct financial contribution remains modest relative to Experiences and streaming, and much of the newly disclosed spending flows through third-party licensees rather than Disney's own books, meaning the segment's promotion to a major growth catalyst is still more aspiration than established fact.

How DIS' Gaming Push Stacks Up Against Sony and Warner BrosUnlike Disney, which largely licenses its IP to partners, Sony (SONY - Free Report) develops and publishes titles directly through PlayStation Studios, giving Sony tighter control over release timing and revenue capture. Sony's 2026–2027 slate includes God of War Laufey, Tomb Raider: Legacy of Atlantis and Ghost of Y??tei-style single-player exclusives, alongside live-service bets like Marathon. Warner Bros. Discovery (WBD - Free Report) , meanwhile, is emerging from a self-described "rebuilding" phase after cancelling Wonder Woman and shuttering Monolith Productions; Warner Bros. has narrowed its pipeline to four franchises—Hogwarts Legacy, Mortal Kombat, Game of Thrones and DC/Batman—with 2026 releases limited to Lego Batman and a Game of Thrones mobile title, while Warner Bros. has signaled its "biggest" franchise returns will land only in 2027–2028.

DIS’ Share Price Performance, Valuation & EstimatesDisney shares have lost 7.9% year to date, underperforming the broader Zacks Consumer Discretionary sector's 6.2% decline.

DIS’ YTD Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, DIS stock is currently trading at a forward 12-month price/earnings ratio of 14.18X compared with the Zacks Media Conglomerates industry's 15.86X, and the stock carries a Value Score of B.

Disney’s Valuation
Image Source: Zacks Investment Research

Estimates for DisneyThe Zacks Consensus Estimate for Disney’s earnings for fiscal 2026 is pegged at $6.88, suggesting year-over-year growth of 16.02%.

DIS 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 Home Depot's Q2 revenues are expected to rise 4.9% y/y to $47.5B, with EPS projected to increase 0.6%.HD's Pro ecosystem, GMS and SRS contributions, and digital growth are expected to support Q2 sales.Home Depot faces housing weakness and margin pressure, with the gross margin modeled to fall 60 bps to 32.8%.
The Home Depot, Inc. (HD - Free Report) is set to report second-quarter fiscal 2026 results on Aug. 18, before market open. The company’s top line is expected to have increased year over year in the to-be-reported quarter. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $47.5 billion, indicating growth of 4.9% from the year-ago quarter’s actual.

The Zacks Consensus Estimate for quarterly earnings per share (EPS) of $4.71 indicates growth of 0.6% from the year-ago period’s reported figure. The consensus estimate for EPS has been unchanged in the past 30 days.

The Atlanta, GA-based leading home improvement retailer delivered a trailing four-quarter average earnings surprise of 1.6%. In the last reported quarter, the company delivered a positive earnings surprise of 0.9%.

HD’s Q2 Earnings WhispersOur proven model conclusively predicts an earnings beat for Home Depot this time around. 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. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Home Depot has an Earnings ESP of +1.35% and a Zacks Rank #3 at present.

Trends to Monitor Before HD’s Q2 EarningsHome Depot’s fiscal second-quarter results will likely hinge on spring demand, weather, Pro momentum, housing-market pressures and gross-margin trends, with several company-specific initiatives offering potential upside. Management entered second-quarter fiscal 2026, encouraged by customer engagement, noting that favorable weather in early May restored spring-project activity to levels seen in February and March. With some of the company’s largest selling weeks falling in the fiscal second quarter, categories such as live goods, patio, grills and outdoor power equipment should support sales.

Another positive is continued progress under the “One Home Depot” interconnected strategy. Digital sales rose more than 10% in the fiscal first quarter, marking the fourth consecutive quarter of double-digit growth, helped by faster delivery, better search and recommendations, and improved fulfillment. Management also cited lower cancellations, faster fulfillment and stronger customer satisfaction, suggesting these investments are translating into greater engagement. These trends are expected to have boosted the company’s sales in the to-be-reported quarter.

Second-quarter fiscal 2026 performance is also expected to have gained from contributions from the GMS acquisition and expansion of the SRS business, which continue to support the company’s Pro ecosystem and market-share growth initiatives.

The expanding Pro ecosystem is another key upside driver. Home Depot is integrating SRS, GMS, HD Supply and Construction Resources while expanding trade credit, jobsite delivery, digital tools and cross-selling. Management expects roughly a $400-million cross-sell run rate this year, with an ambition to double that next year, while complex Pro purchases continue to outgrow overall Pro sales. These benefits are expected to have boosted the performance in the fiscal second quarter.

However, underlying demand remains constrained by elevated mortgage rates, weak housing turnover and consumer uncertainty, which continue to pressure larger discretionary remodeling projects. Margins will be another key focus. On its last reported quarter’s earnings call, management expected year-over-year gross-margin pressure to continue in the fiscal second quarter, although at a smaller magnitude than the first quarter’s 75-basis-point decline, largely reflecting the GMS acquisition and SRS pricing investments. Higher fuel, commodity and tariff-related costs are likely to have added pressure.

Our model predicts a gross margin of 32.8% for the fiscal second quarter, contracting 60 bps year over year. We expect adjusted operating income to decline 0.2% in the fiscal second quarter, with a 70-bps fall in the operating margin to 14.1%.

HD’s Price Performance & ValuationHome Depot’s shares have gained 14.9% in the past three months compared with the industry’s 12.2% growth. The stock also outpaced the S&P 500 and the Retail-Wholesale sector’s growth of 3.2% and 0.8%, respectively, in the same period.

HD’s 3-Month Stock Performance
Image Source: Zacks Investment Research

Home Depot’s current valuation appears quite pricey. The company trades at a forward 12-month P/E multiple of 21.83X, exceeding the industry average of 19.9X.

Image Source: Zacks Investment Research

Other Stocks With the Favorable CombinationHere are some other companies, which, according to our model, also have the right combination of elements to beat on earnings this reporting cycle.

Target Corporation (TGT - Free Report) currently has an Earnings ESP of +7.57% and a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 numbers. The consensus mark for revenues is pegged at $26.1 billion, which indicates a rise of 3.4% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TGT’s quarterly earnings per share of $2.25 implies growth of 9.8% from the year-ago quarter’s actual. The consensus mark has moved up 1.8% in the past seven days. TGT has a trailing four-quarter negative earnings surprise of 8.2%, on average.

Ross Stores Inc. (ROST - Free Report) currently has an Earnings ESP of +6.61% and a Zacks Rank #2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 numbers. The consensus mark for revenues is pegged at $6.12 billion, which indicates growth of 10.7% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Ross Stores’ quarterly earnings per share of $1.92 implies a rise of 23.1% from the year-ago quarter’s actual. The consensus mark has moved up 1.1% in the past 30 days. ROST has a trailing four-quarter earnings surprise of 10.2%, on average.

Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank #3. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for FIVE’s quarterly EPS is pegged at $1.28, suggesting 58% growth from the year-ago period’s actual. The consensus mark has moved up 3.2% in the past 30 days.

The consensus estimate for FIVE’s quarterly revenues is pegged at $1.2 billion, which implies growth of 17.9% from the prior-year quarter’s actual. Five Below has a trailing four-quarter earnings surprise of 70.1%, on average.

Key Takeaways Albemarle shares fell 27.7% in three months as weaker lithium prices pressured the stock.ALB is expanding lithium capacity, improving productivity and cutting costs to support growth.Albemarle expects lithium demand to witness a 10-20% CAGR from 2025 to 2030, led by storage.
Albemarle Corporation’s (ALB - Free Report) shares have tumbled 27.7% in the past three months, underperforming the Zacks Chemical - Diversified industry decline of 8.3% and the S&P 500’s 3.2% increase.

Falling lithium market prices have been weighing on ALB stock. Lithium prices have pulled back amid slowing demand for electric vehicles (EVs) in China, elevated inventories and expectations for higher supply from mine restarts and capacity expansions. EV orders have moderated in China, the world’s largest lithium consumer, while demand from the energy storage market remains resilient.

ALB’s 3-month Price Performance Image Source: Zacks Investment Research

Reflecting the retreat in lithium prices, ALB stock broke below its 50-day simple moving average (SMA) on May 15, 2026. It also slipped below its 200-day SMA on June 23, 2026. The 50-day SMA is reading lower than the 200-day SMA, following a death crossover on July 21, 2026, signaling a bearish trend.      

Albemarle Trades Below 50-Day SMA Image Source: Zacks Investment Research

Given the pullback in Albemarle’s shares, investors might be tempted to snap up the stock. But is this the right time to buy ALB? Let’s find out.

Growing Lithium Demand and Productivity Aid AlbemarleAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.

ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year, with growth already trending near the higher end of the range.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes.

The Salar yield improvement project in Chile has achieved a 50-60% operating rate, and the ramp-up continues to deliver encouraging outcomes. Albemarle, in March 2026, submitted the environmental assessment permit for a commercial direct lithium extraction (DLE) project at Salar de Atacama. The DLE pilot plant supports future growth at Salar de Atacama and has demonstrated lithium recoveries of more than 90%. The CGP3 expansion at the Greenbushes spodumene mine in Australia is underway and is expected to reach full production in first-quarter 2027.

Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $100 million already delivered.

ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.

ALB’s Strong Financial Health Supports Capital AllocationAlbemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior year. At the end of the second quarter of 2026, it had liquidity of around $3.2 billion, including cash and cash equivalents of around $1.6 billion. The company generated an operating cash flow of $710 million and free cash flow of $638 million in the second quarter. Operating cash flow for the first half nearly doubled year over year to roughly $1.1 billion.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 1.3% at the current stock price. Its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Rio Tinto Group (RIO - Free Report) , have a dividend yield of 3.7% and 5%, respectively.

Volume and Margin Pressure Weigh on ALB StockALB’s Energy Storage unit faces volume pressure in 2026, which may affect the segment’s sales. The company’s guidance reflects flat to 4% lower year-over-year Energy Storage sales volumes in 2026. Albemarle expects Energy Storage sales volumes of 225-235 kilotons (kt), compared with 235kt in 2025, as higher Wodgina output partly offsets a delay in the CGP3 ramp-up following the June 9, 2026 fire. Lower sales volumes are expected to result in a decline in Energy Storage sales in the third quarter.

Some impacts of the lithium price retreat are also expected to reflect on the company’s performance in the third quarter. ALB expects sequentially lower prices and volumes to result in a decline in Energy Storage sales and margins compared with the second quarter.

ALB’s Earnings Estimates SouthboundThe Zacks Consensus Estimate for 2026 for ALB has been revised downward over the past 60 days. The consensus estimate for third-quarter 2026 has been going down over the same time frame.

Image Source: Zacks Investment Research

A Look at ALB’s ValuationALB is currently trading at a forward price-to-sales ratio of 2.38, above the industry’s 0.93. It is trading at a premium to Rio Tinto and in line with Sociedad Quimica. Albemarle has a Value Score of B. Rio Tinto and Sociedad Quimica currently have a Value Score of A and C, respectively.

ALB’s P/S F12M Vs. Industry, SQM and RIO Image Source: Zacks Investment Research

Final Thoughts: Hold Onto ALB SharesAlbemarle is poised to benefit from project ramp-ups, ongoing efforts to expand its global lithium conversion capacity and productivity improvement initiatives. The company remains well-positioned to gain from the long-term expansion of the battery-grade lithium market. Near-term headwinds include lower Energy Storage volumes, weaker lithium prices and margin pressure. With shares below key moving averages and trading at a premium to the industry, immediate upside appears limited. Also, declining earnings estimates cast a pall on the company's prospects. Considering these factors, holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it. 

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

Micron Technology MU shares climbed on Friday after New Street upgraded the memory-chip maker to 'Buy', arguing that artificial intelligence could transform the company into a $2 trillion to $3 trillion business by the end of the decade.

New Street raised its rating from Neutral to Buy and set a price target of $1,250, implying roughly 29% upside from current levels. Micron stock was up 1.3% in trading, giving the company a market capitalization of around $1 trillion.

The bullish outlook comes as analysts increasingly expect AI-driven demand for memory chips to reshape the industry's long-term growth trajectory while making earnings less cyclical than in previous decades.

New Street said Micron remains attractively valued despite its recent rally, citing the company's price-to-cost-of-goods-sold ratio as evidence that the shares still offer value.

The stock has already gained more than 10% over the past five trading sessions.

The brokerage expects AI to become the dominant driver of memory demand in the coming years.

According to its forecasts, AI applications will account for roughly two-thirds of total memory demand, with annual memory demand growth reaching 15% beyond 2030, compared with the historical average of about 10% over the past two decades.

The firm also argued that the memory business is becoming structurally stronger.

It said high-bandwidth memory "deserves a premium to commodity DRAM" because demand is increasingly supported by long-term AI infrastructure spending rather than traditional cyclical factors.

Looking further ahead, New Street projects Micron could generate more than $150 billion in annual free cash flow by 2030 while accumulating over $600 billion in cash, describing both figures as peak levels.

Micron's rally has also been supported by improving sentiment across the broader memory sector.

Investors have returned to memory-chip stocks following Sandisk's optimistic long-term outlook presented at its investor day earlier this week.

Shares of South Korean memory producer SK Hynix also moved higher in trading.

Analysts expect memory pricing to remain strong throughout the year.

KeyBanc forecasts dynamic random-access memory (DRAM) prices will increase by 15% to 20% in the third quarter compared with the previous quarter, followed by another 15% increase in the fourth quarter.

For NAND flash memory, the firm expects prices to rise by 30% to 40% in the third quarter before advancing another 15% in the final quarter of the year.

Despite Micron's strong performance, analysts argue the stock still trades at a discount to many semiconductor peers.

According to FactSet data, Micron trades at a forward price-to-earnings ratio of about 6.3 times, though analysts note traditional valuation metrics can be misleading because memory earnings have historically been cyclical.

UBS analyst Timothy Arcuri recently reiterated a $1,625 price target, valuing the company at 11 times his projected 2029 earnings.

Arcuri said he is using 2029 earnings because they "best reflect Micron's through-cycle earnings power under LTAs", adding that his model assumes "a moderate memory downcycle" by then.

With analysts seeing high target prices for Micron, investors weighing an entry point can use investment apps to access research tools and execute trades at the right time.

With AI infrastructure spending continuing to accelerate and analysts forecasting sustained strength in memory pricing, investors are increasingly viewing Micron as a long-term beneficiary of the expanding AI ecosystem.

Key Takeaways BUD's Q2 beer volumes rose 1.1%, while total volumes increased 0.9% amid global market share gains.Michelob Ultra expanded across the Americas, with 40% of Q2 volume growth coming from outside the U.S.BUD's non-alcoholic beer revenues climbed 27%, led by Corona Cero and Michelob Ultra Zero.
Anheuser-Busch InBev SA/NV (BUD - Free Report) , popularly known as AB InBev, delivered encouraging volume performance in the second quarter of 2026, signaling improving momentum across its global business. The company benefited from market share gains, continued investment in its megabrands and growth across emerging markets. Management believes its more diversified portfolio, spanning core and premium beer, non-alcoholic offerings and Beyond Beer, has positioned BUD to capture demand across more consumer occasions.

Beer volumes increased 1.1% year over year in the second quarter, while total volumes rose 0.9%. Revenues advanced 5.6%, supported by 4.2% growth in revenue per hectoliter, reflecting positive mix and revenue management initiatives. BUD also reported market share gains globally, with record second-quarter volumes in markets including Mexico, Colombia and Ecuador.

Several growth initiatives could help sustain the volume recovery. Michelob Ultra is expanding across the Americas, with 40% of the brand's second-quarter volume growth coming from outside the United States. Meanwhile, non-alcoholic beer revenues climbed 27%, led by Corona Cero and Michelob Ultra Zero. BUD is also expanding its Beyond Beer portfolio, giving the company additional avenues to attract consumers and increase participation across growing beverage segments.

Still, the recovery remains uneven across markets. China continues to be a notable pressure point, with revenues declining 8.8% amid adverse weather, a constrained consumer environment and weakness in the on-premise channel. BUD is investing in its brands, innovation and off-trade execution to improve performance there. With stronger volume trends elsewhere and management shifting its focus from resetting the business toward accelerating its growth levers, sustained execution across key markets will be crucial to determining whether the recent volume improvement develops into a broader recovery.

BUD’s Price Performance, Valuation & EstimatesAB InBev’s shares have lost 0.2% in the past six months compared with the industry’s 3.1% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, BUD trades at a forward price-to-earnings ratio of 17.07X compared with the industry’s average of 15.13X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BUD’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 17.2% and 12.3%, respectively. The company’s EPS estimates for 2026 and 2027 have moved upward in the past 30 days.

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AB InBev currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) , which is a global developer and producer of sustainable natural ingredients, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for Darling Ingredients' current financial-year sales indicates growth of 12.7% from the prior-year level. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Coca-Cola Company (KO - Free Report) is a leading beverage company with a portfolio of 32 billion-dollar brands spanning sparkling beverages, water, sports drinks, dairy and value-added beverages. KO currently carries a Zacks Rank #2 (Buy).

    The Zacks Consensus Estimate for Coca-Cola’s current fiscal-year sales and earnings implies growth of 4.03% and 9.7%, respectively, from the year-ago reported figures. Coca-Cola delivered a trailing four-quarter earnings surprise of 4.6%, on average.

Primo Brands Corporation (PRMB - Free Report) is a leading North American branded beverage company focused on healthy hydration. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Primo Brands’ current fiscal-year sales indicates growth of 2.5% from the prior year’s reported levels. PRMB delivered a trailing four-quarter earnings surprise of 7.7%, on average.

Posted by Defense World Staff on Aug 14th, 2026

Aspiriant LLC raised its holdings in Broadcom Inc. (NASDAQ:AVGO – Free Report) by 19.0% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 12,395 shares of the semiconductor manufacturer’s stock after acquiring an additional 1,975 shares during the quarter. Aspiriant LLC’s holdings in Broadcom were worth $4,682,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC grew its holdings in shares of Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC lifted its holdings in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares in the last quarter. Networth Advisors LLC lifted its holdings in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares in the last quarter. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom in the 4th quarter valued at about $33,000. Finally, Family CFO Inc purchased a new stake in Broadcom in the 4th quarter valued at about $35,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have recently commented on AVGO shares. Jefferies Financial Group set a $550.00 target price on shares of Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Dbs Bank upgraded Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. Bank of America increased their price objective on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Susquehanna restated a “positive” rating and set a $490.00 price objective (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, KeyCorp reaffirmed an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

View Our Latest Analysis on AVGO

Broadcom News Summary Here are the key news stories impacting Broadcom this week:

Positive Sentiment: Broadcom and NVIDIA’s efforts to raise debt and private capital to fund AI infrastructure underscore the scale of expected demand for computing capacity, potentially supporting Broadcom’s custom-chip and networking businesses. Nvidia and Broadcom Deepen AI Financing Push — But Wolfe Sees Long-Term Risks Positive Sentiment: Recent earnings commentary highlights optics and high-speed networking as increasingly important parts of the AI buildout, areas where Broadcom is positioned to benefit from hyperscale customer spending. Lumentum and Broadcom: Both Have Seen the Light in AI But How Should Investors Play Them? Positive Sentiment: Analysts and investors continue to focus on surging AI-networking demand, Broadcom’s accelerator programs and its ability to benefit regardless of which AI chip architecture ultimately becomes dominant. Is Broadcom in Focus as AI Networking Demand Surges? Positive Sentiment: Institutional buying provided an additional confidence signal: GAMCO Investors added 6,223 shares, while Bowie Capital previously increased its position by 112,599 shares. Cathie Wood also reportedly purchased approximately $16.2 million of AVGO. GAMCO Investors Boosts Broadcom Stake Neutral Sentiment: Broadcom remains a major beneficiary of the broader AI investment theme, with investors increasingly seeking exposure to the ecosystem and supply chain rather than concentrating only in individual chip stocks. The Future of AI Investing: Harbor Debuts 5 New Ecosystem ETFs Negative Sentiment: Valuation remains a key concern. Broadcom has delivered roughly an 8.7-fold five-year return, while current earnings multiples are viewed as expensive and a discounted-cash-flow estimate is near the market value, leaving less room for execution disappointments. Broadcom Stock Trades Near Fair Value but at a Premium on Earnings Negative Sentiment: Wolfe Research sees longer-term risks from intensifying competition in custom AI silicon, while other market observers warn that semiconductor flows and enthusiasm could be approaching a cyclical peak. Semiconductor Flows Stay Sticky Despite Cycle-Peak Warning Insider Buying and Selling In other news, Director Justine Page sold 1,602 shares of the business’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 61,644 shares of company stock worth $24,016,214 over the last quarter. Insiders own 1.90% of the company’s stock.

Broadcom Trading Up 0.4% NASDAQ:AVGO opened at $417.82 on Friday. The firm has a 50-day simple moving average of $389.65 and a 200-day simple moving average of $373.16. Broadcom Inc. has a one year low of $281.87 and a one year high of $495.00. The firm has a market cap of $1.99 trillion, a P/E ratio of 69.64, a P/E/G ratio of 0.79 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The company’s quarterly revenue was up 47.9% on a year-over-year basis. During the same period last year, the firm earned $1.58 earnings per share. Equities analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom’s dividend payout ratio is currently 43.33%.

Broadcom Company Profile (Free Report)

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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Key Takeaways CVS is building Health100 and Haio to simplify health care and improve consumer engagement.Technology has helped CVS approve over 95% of eligible prior authorizations within 24 hours.CVS' AI claims tool aims to cut processing time by more than 20% on hundreds of millions of claims. CVS Health (CVS - Free Report) sees its technology investments as an inflection point as it works to become a more consumer-based health care technology company. Last year, the company committed to invest $20 billion over the next decade in emerging technologies to simplify the health care experience and improve customer engagement. The investment includes developing an open platform that can provide seamless access to payers, providers, pharmacy benefit managers (PBMs), pharmacies and digital health tools.

CVS recently began the targeted launch of its Health100 platform, including Haio, an artificial intelligence (AI)-powered assistant designed to simplify the consumer experience and help people better engage in their care journey. The company expects to expand access later this year following encouraging early feedback.

CVS is also using technology to simplify the health care experience for providers, focusing on some of the highest priorities, such as prior authorizations, claims processing and access to real-time patient information. Aetna has the fewest medical services subject to prior authorization in the industry. CVS’ focus on embedding technology within each of its businesses has enabled it to approve more than 95% of the eligible prior authorizations within 24 hours, with more than 80% being approved in real time.

The company also launched an AI-enabled claims assist manager, which is expected to reduce processing time by more than 20% and accelerate payments for providers on hundreds of millions of claims annually. CVS is also scaling its Aetna clinical collaboration program, which brings Aetna nurses together with hospital staff to support Medicare Advantage members during care transitions.

Technology infrastructure changes are helping modernize platforms and accelerate data sharing and connectivity with providers and payer partners. CVS Specialty’s focus on technology, automation and AI has helped it maintain adherence above 90% compared with the 80% industry standard.

Updates From CVS Health’s PeersCardinal Health (CAH - Free Report) generated $63.7 billion in fiscal fourth-quarter 2026 revenues, up 6% year over year. Growth was led by strong demand in the company’s Pharmaceutical and Specialty Solutions segment with contributions from three growth businesses within Other - at-Home Solutions, Nuclear and Precision Health Solutions and OptiFreight Logistics. Adjusted earnings per share (EPS) increased 40% to $2.91, reflecting the jump in non-GAAP earnings, including the recognition of a one-time net operating profit impact of International Emergency Economic Powers Act tariff refunds of $100 million in CAH’s Global Medical Products and Distribution segment, a lower effective tax rate and a lower share count.

UnitedHealth Group’s (UNH - Free Report) second-quarter 2026 revenues of $112 billion were largely consistent with the prior year. Operating earnings of $8 billion grew 55% year over year, reflecting product and portfolio actions taken over the past 12 months, along with targeted management disciplines. UNH attributed the lower-than-expected medical cost trends in Medicare so far this year largely to its initiatives, including benefit design, care management models and network curation.

CVS’ Price Performance, Valuation and EstimatesYear to date, CVS Health shares have risen 19.6% compared with the industry’s 1.2% growth. 

Image Source: Zacks Investment Research

CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the 0.52 industry average. The stock has a Value Score of A.

Image Source: Zacks Investment Research

The consensus estimate for the company’s 2026 and 2027 earnings has been showing a bullish trend. 

Image Source: Zacks Investment Research

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

Key Takeaways Aflac's Japan and U.S. businesses are benefiting from solid product demand and premium persistency.Japan sales rose 7%, while U.S. sales increased 2.8% in the first half of 2026.Disciplined expenses and improved benefit trends are supporting growth across Aflac's core markets. Aflac Incorporated (AFL - Free Report) is well-poised to grow, driven by strong product demand and high premium persistency across its key markets, stronger underwriting discipline and effective cost management.

Aflac — with a market capitalization of $60.7 billion — offers supplemental health and life insurance products in Japan and the United States. Its shares climbed 9.8% in the year-to-date period compared with 12.4% growth of the industry.

Courtesy of solid prospects, this Zacks Rank #3 (Hold) stock is worth retaining at the moment.

AFL’s Growth DriversAflac Japan remains an important growth engine, with product innovation helping the company reach new customer segments. The refreshed Tsumitasu savings-type life insurance and Anshin Palette medical insurance continued to generate strong year-over-year sales growth. Japan sales increased 7% year over year in the first half of 2026, while Tsumitasu accounted for about 20% of total sales and is helping attract younger customers and support cross-selling of cancer and medical coverage.

In the United States, Aflac is benefiting from continued demand for group voluntary benefits, dental and vision products. In the first half of 2026, sales increased 2.8% year over year, while net earned premiums grew 2.9%. The company is maintaining a focus on profitable growth, supported by strong premium persistency of 79.4% and continued momentum in its group business.

Aflac is also benefiting from disciplined expense management and favorable benefit trends across its core markets. In the second quarter, Aflac Japan’s expense ratio was 20.2%, near the low end of its 20%-23% outlook for 2026, while its benefit ratio stood at 64%, which improved 250 basis points year over year. In the U.S. segment, the expense ratio was 36.1%, which improved 20 basis points year over year. It expects the unit’s expense ratio to be within the range of 36%-39% in 2026. The benefit ratio came in at 49.5%, within the company’s 48%-52% target range for 2026.

AFL maintains a strong financial position and concluded second-quarter 2026 with $6.1 billion in cash and cash equivalents and maintains a strong times-interest-earned ratio of 24.91X versus the industry’s 21.73X. Shareholder rewards remain a priority for the company. In the first six months of 2026, Aflac repurchased 17.5 million shares worth $2 billion.

Where Do Estimates for AFL Stand?The Zacks Consensus Estimate for AFL’s 2026 earnings is pegged at $7.04 per share. Furthermore, the consensus mark for revenues is pegged at $17 billion for 2026. AFL missed earnings estimates in three of the past four quarters and beat once, with an average surprise of 6.6%.

AFL’s Key RisksThere are some factors, however, that investors should keep a careful eye on.

Operating cash flow has remained under pressure, declining 17.8% in 2023, 15.1% in 2024 and 5.6% in 2025. While the metric rebounded in first-half 2026, rising 9.3% year over year, the company will need to sustain this momentum for a meaningful turnaround.

Aflac’s shares trade at a forward P/E of 16.3X, above both its five-year median of 13.13X and the industry average of 13.7X. The elevated multiple suggests limited upside in the near term as investors may hesitate to extend further premium valuations amid an uneven earnings recovery.

Better-Ranked PlayersSome better-ranked stocks in the insurance space are Hippo Holdings Inc. (HIPO - Free Report) , Slide Insurance Holdings, Inc. (SLDE - Free Report) and The Hanover Insurance Group, Inc. (THG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hippo Holdings’ current-year earnings is pinned at $2.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. HIPO beat earnings estimates in each of the trailing four quarters, with the average surprise being 521.8%. The consensus estimate for current-year revenues is pegged at $581.9 million, implying 24.2% year-over-year growth.

The Zacks Consensus Estimate for Slide Insurance Holdings’ current-year earnings is pinned at $3.91 per share and has witnessed two upward revisions in the past 30 days against one movement in the opposite direction. SLDE beat earnings estimates in each of the trailing four quarters, with the average surprise being 36.9%. The consensus estimate for current-year revenues is pegged at $1.5 billion, implying 33% year-over-year growth.

The Zacks Consensus Estimate for Hanover Insurance Group’s current-year earnings is pinned at $20.15 per share and has witnessed five upward revisions in the past 30 days against no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for current-year revenues is pegged at $7 billion, implying 4.6% year-over-year growth.

Junior miners spend most of their existence chasing grade. Nine Mile Metals Ltd. (CSE:NINE, OTCQB:VMSXF, FRA:KQ9) has the opposite problem at parts of its Bathurst Mining Camp land package: ore so rich that the region's processing infrastructure isn't built to handle it.

It's a strange complaint for a resource company to have. At Nine Mile Brook, drilling has returned intervals grading as high as 15% copper alongside significant lead, zinc, silver and gold. That grade is high enough that the company has entered an agreement with commodities giant Glencore to test whether some of the material could bypass conventional milling altogether and go straight to a smelter.

As Nine Mile CEO Patrick Cruickshank explains, a mill is optimized around a specific type of ore, so it would need to make adjustments for different material.

"The biggest concern is impurities, because the milling process typically helps separate and remove those elements," Cruickshank told Proactive.

Whole drill core has already been shipped to Glencore for direct-to-smelter testing, while two additional bulk samples are undergoing metallurgical and gravity separation testing, a roughly three-month process. Depending on the outcome, the lead-zinc component could ultimately be routed to a Glencore facility in Quebec, with copper-gold material potentially destined for the Horne Smelter.

Even logistics become a variable at this scale. A 3,000-tonne bulk sample carries an estimated contained metal value of roughly $4,000 per tonne, by Cruickshank's estimate, but shipping that tonnage to a facility like Kidd Creek in northern Ontario could cost close to $1 million on its own, and most mills want closer to 10,000 tonnes to justify dedicating a processing shift to unfamiliar ore. "Bulk sampling is not intended to be a revenue-generating activity, so it's a sensitive topic from a regulatory standpoint," Cruickshank noted. "The purpose is to test and validate the metallurgy and processing options."

The grade problem is really a symptom of a broader thesis Cruickshank has been building for two and a half years: that the Bathurst Mining Camp's most efficient path to new production doesn't run through greenfield discovery alone, it runs through mines that were shut down decades ago for reasons that no longer apply.

The Wedge Mine is the clearest example. Operated by Cominco through the 1950s and into the early 1960s before Teck took it over, Wedge produced an estimated 1.5 to 2.5 million tonnes of ore, almost entirely valued for lead and zinc. Silver was trading near $1 an ounce at the time, copper wasn't especially valuable, and gold assays weren't routinely run. "If miners couldn't see the gold, they generally ignored it," Cruickshank said.

Operations ended not because the deposit was exhausted, but because a support pillar collapsed after roughly a third of the vertical deposit had been mined. Repairing it wasn't economical at the commodity prices of the era, so the mine was abandoned with an estimated two-thirds of the system still in the ground.

Six decades later, Nine Mile is revisiting that resource with tools the original operators never had. Drone surveys and geophysical work over the past two years have effectively produced what Cruickshank calls a treasure map of the property. Drilling on the mine's undrilled eastern side added several million tonnes of mineralization, and last year's drilling on the southern portion of the deposit returned copper grades up to 8%. Borehole electromagnetic crews will soon be on site to survey seven holes, generating three-dimensional imagery that extends 300 to 400 metres in every direction from each hole and can distinguish new mineralization from old workings and voids.

The company has already identified three mineralized lenses at Wedge where historically only one was recognized. Cruickshank's stated goal is to demonstrate five to 10 million tonnes remaining, at grades strong enough, when combined with the silver and gold values showing up in recent drilling, to support a return to production.

The same logic underpins the company's approach at Nine Mile Brook, home to what Cruickshank describes as the highest-grade VMS lens ever discovered in the Bathurst camp, and at Canoe Landing, where Nine Mile's ground abuts a 32-million-tonne deposit owned by Wolfden Resources. "Whoever ultimately develops that deposit will almost certainly have to work with us, or vice versa, because together we control the full mineralized system," Cruickshank said, adding that a joint venture or acquisition are both options the company is watching.

It's a strategy built on a simple mining adage Cruickshank likes to repeat: the best place to find a new deposit is in the shadow of an existing one. With 45 known deposits already mapped across the Bathurst camp, he sees more value in applying modern geophysics and AI-assisted target modeling to old, well-understood ground than in searching blind.

Underlying all of it is a change in Nine Mile's financial position that Cruickshank argues is as important as any drill result.

Having raised just over $5.6 million recently, Cruickshank says the company doesn't expect to need additional financing for more than two years, freeing it to run a multi-target drill program across Wedge, Nine Mile Brook, California Lake and Canoe Landing Lake without the dilution pressure that has historically capped its share price rallies. A second drill rig is being mobilized directly to the West Wedge and Tribag targets, part of six priority drill targets identified since January.

That funding also changes the company's appetite for risk. "Previously, we didn't want to start drilling every target because our funding was limited," Cruickshank said. "Now we're fully funded, and we have access to better technology and more advanced algorithms, which gives us the confidence to be much more aggressive."

The bigger picture
Nine Mile's approach is unfolding against a favourable backdrop in New Brunswick, where the provincial government has stated its ambition to become Canada's leading jurisdiction for critical minerals and has pointed to the planned restart of the Lake George antimony project as evidence of that commitment. Cruickshank also points to the arrival of Kinross in the district, growing interest from companies like Rio Tinto and Glencore, and roughly 15 public companies now active in the camp as signs that capital is returning to a region long defined as a lead-zinc district but increasingly valued for its copper, silver and gold.

Whether that momentum translates into a producing mine at Wedge, a fifth lens at Nine Mile Brook, or a resolution to the Canoe Landing overlap with Wolfden, Cruickshank frames the company's task in straightforward terms: "At this point, it's about execution: drilling the programs, delivering results, and creating value."

Key Takeaways Rocket Lab uses HASTE to provide suborbital test capabilities for hypersonic technology development.HASTE leverages Electron's launch expertise and infrastructure for specialized defense and testing missions.HASTE broadens Rocket Lab's launch applications across national security and hypersonic testing programs. Rocket Lab Corporation (RKLB - Free Report) is expanding beyond conventional orbital missions through its Hypersonic Accelerator Suborbital Test Electron (“HASTE”) program. Built around the Electron platform, HASTE provides a dedicated suborbital test capability that can support the development and evaluation of hypersonic technologies. The program gives Rocket Lab an opportunity to leverage its established launch expertise in a specialized defense and testing market.

HASTE adds another dimension to Rocket Lab's launch-services portfolio by addressing missions that require suborbital flight rather than deployment into orbit. This allows the company to utilize its launch infrastructure, vehicle expertise and operational experience for a broader range of government and defense applications. Expanding into such specialized missions can also diversify the types of launch opportunities available to Rocket Lab.

The program benefits from Electron's established capabilities and launch heritage. Rocket Lab can leverage technologies and infrastructure developed for its orbital launch business while adapting the platform for hypersonic testing requirements. This creates an opportunity to generate additional value from an existing launch system while expanding participation in national security-related missions.

As government agencies continue developing and testing hypersonic systems, demand for responsive and repeatable test opportunities could create a growing market for specialized suborbital launch services. HASTE provides Rocket Lab with another potential avenue for expanding its addressable market while broadening the applications of its Electron platform.

Companies Expanding Hypersonic Test CapabilitiesThe growing focus on hypersonic technologies is encouraging defense companies to expand testing and flight capabilities. Companies like Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Lockheed Martin Corporation (LMT - Free Report) are also developing technologies supporting hypersonic testing and advanced flight missions.

Kratos produces hypersonic flight vehicles and rocket systems for national security missions, including its Erinyes hypersonic flight system.

Lockheed Martin develops hypersonic flight vehicles and related technologies for defense applications, supporting the development and testing of next-generation high-speed systems.

Earnings Estimates for RKLB StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 62.96% and 35%, respectively.

Image Source: Zacks Investment Research

RKLB Stock Is Trading at a PremiumRocket Lab is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 41.23X compared with the industry average of 8.68X.

Image Source: Zacks Investment Research

RKLB Stock Price PerformanceOver the past year, RKLB shares have surged 80.9% compared with the industry’s 15.1% growth.

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RKLB’s Zacks RankRocket Lab 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 Crocs shares gained 26.9% in three months as stronger brand trends supported the recent rally.Crocs Brand DTC revenue rose 12.9%, while international sales climbed 7.8% in the second quarter. HEYDUDE revenue fell 5.7%, while tariffs helped push adjusted gross margin down 170 basis points. Shares of Crocs, Inc. (CROX - Free Report) have gained 26.9% in the past three months, putting the focus on whether improving brand trends can support further progress. The rally has coincided with firmer direct-to-consumer demand, international expansion and a broader product mix.

The operating picture is not uniformly positive. HEYDUDE remains under pressure and tariff-related costs have weighed on margins, leaving execution and profitability as key tests after the stock’s recent advance.

Crocs’ Three-Month Rally Meets Stronger Brand MomentumThe Crocs Brand has built momentum through product newness, collaborations and wider demand across footwear categories. Partnerships with BAPE and F1 Red Bull Racing supported engagement in the second quarter, while the BAPE collaboration featuring the Echo RO sold out within minutes globally.

Demand also broadened across Crocband, Echo and Crafted clog franchises and key sandal lines. These developments strengthen the business backdrop that has coincided with the share-price gain, but they should not be read as proof that any single operating initiative caused the stock move.

CROX Gets Support From DTC and International GrowthSecond-quarter Crocs Brand direct-to-consumer revenues increased 12.9% year over year. That performance came alongside reduced promotional activity, supporting the case that consumers are responding to the brand’s newer products and direct channels.

International revenues rose 7.8%, with China, India and Japan posting double-digit growth. Those markets give Crocs additional avenues for expansion as North America remains less consistent and wholesale trends continue to limit growth at home.

Image Source: Zacks Investment Research

Crocs Broadens Demand Beyond the Classic ClogCrocs is extending demand beyond its core Classic Clog. Crocband, Echo and Crafted performed well in the second quarter, while the Miami, Getaway and Brooklyn sandal franchises continued to gain consumer adoption. The Classic Ballet Flat also recorded notable global sellouts, particularly in Asia.

The broader footwear market offers useful context. Deckers Outdoor Corporation (DECK - Free Report) competes through brands including HOKA, UGG and Teva. Birkenstock Holding plc (BIRK - Free Report) has built a broad unisex portfolio around its footbed-based products. For Crocs, adding successful silhouettes can reduce dependence on any single category.

CROX Still Faces HEYDUDE and Margin PressureHEYDUDE remains the clearest operating drag. Second-quarter revenues declined 5.7% to $179 million, while wholesale revenues fell 17.2%. Direct-to-consumer revenues increased 7.2%, but the brand still needs to rebuild broader channel momentum.

Profitability also warrants attention. Adjusted gross margin fell 170 basis points to 60%, primarily because of tariff impacts, while adjusted operating margin declined 180 basis points to 25.1%. Cost actions can help, but continued tariff exposure leaves less room for execution missteps.

Crocs’ Short-Term Signal Supports a Measured ViewThe recent 26.9% gain has been accompanied by better Crocs Brand trends, yet HEYDUDE weakness and margin pressure keep the investment case balanced. Investors still need evidence that international growth and product diversification can translate into durable enterprise-level improvement.

CROX currently carries a Zacks Rank #2 (Buy), a favorable short-term signal. It also has a VGM Score of B and Value Score of B, while its Growth Score of C and Momentum Score of F make the setup less uniform. The combination favors a measured view rather than assuming the recent rally guarantees further upside. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways WM uses AI and machine learning to optimize routes, cut costs and support margin expansion.Stericycle added $653M to WM's net cash and boosted 2025 operating income by $245M.WM's debt reached $23.3B as of June 30, 2026, while cash stood at $557M and its current ratio was 0.91. WM (WM - Free Report) shares have moved up 2.4% in the past three months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 3.8% and 3.6%, respectively.

3-Month Share Price Performance                                                                 Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 revenues is pinned at $26.4 billion, suggesting 4.6% year-over-year growth. For 2027, the consensus estimate is $27.8 billion, implying a 5.4% increase from the preceding year’s actual.

                                                                 Image Source: Zacks Investment Research

For EPS, the consensus mark for 2026 is pegged at $8.14, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for 2027 EPS is pegged at $9.06. The figure suggests 11.3% year-over-year growth.

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Factors That Augur Well for WM’s SuccessTech-Driven Efficiencies Bolster Margins: WM strengthens its margin profile utilizing tech-backed efficiencies. The SmartTruck platform, a combination of AI and machine learning, generates more than $300 million in annual run-rate EBITDA via route optimization, service upgrades, and lower operating expenses.

These innovations kept operating expenses below 60% of the top line for the sixth consecutive quarter despite headwinds. The company is expanding its tech pipeline to incorporate AI tools, autonomous long-haul vehicles and remotely operated heavy equipment to lower operating costs, improve the top line, and act as the catalyst for margin expansion.

Stericycle Buyout Boosts Cash Position: WM’s recent acquisition of Stericycle complements its business platform in medical waste, a sector with robust growth dynamics. In 2025, the company recorded a $653-million increase in net cash, driven by the recent buyout. Stericycle was responsible for a $245-million rise in income from operations during 2025.

Dividends Attract Income-Seeking Investors: WM has paid out dividends to its shareholders since 1998. In 2023, 2024 and 2025, the company paid out dividends totaling $1.1 billion, $1.2 billion and $1.3 billion, respectively. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors. Consistent dividend payments give a green light to income-seeking investors.

Risks Faced by WMHeightened Debt Load: Stericycle buyout and ongoing investments in renewable energy have significantly increased its debt load. The company has issued billions in senior notes, affecting financial flexibility and increasing the potential impacts on shareholder returns if cash flow does not grow as expected.

If WM fails to achieve the anticipated growth in cash flow, it could face challenges in maintaining its operational efficiency and meeting these financial obligations. As of June 30, 2026, the company had current debt of $1.1 billion and long-term debt of $22.2 billion against a cash and equivalent balance of $557 million.

Weak Liquidity Profile: WM's high short-term debt against its cash reserves weakens its liquidity position. At the end of the second quarter of 2026, the company reported a current ratio of 0.91, a sequential dip from 0.93. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations, which is a waving red flag for investors.

WM’s Zacks Rank & Stocks to ConsiderThe company has a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are Coursera (COUR - Free Report) and Gartner (IT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Coursera has a long-term earnings growth expectation of 49.6%. COUR delivered a trailing four-quarter earnings surprise of 10.9%, on average.

Gartner has a long-term earnings growth expectation of 21%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.

Key Takeaways Ciena's backlog rose over $600M sequentially to $7.7B, boosting visibility into 2027 revenue.About $6.4B of the backlog is hardware, with roughly 80% due for delivery over the next 12 months.CIEN raised fiscal 2026 revenue guidance to $6.3B plus minus $100M, implying about 32% growth at the midpoint. Ciena Corporation (CIEN - Free Report) is witnessing strong demand and a growing backlog, which is providing increased visibility into future revenue. In the second quarter of fiscal 2026, Ciena’s backlog increased by more than $600 million sequentially to $7.7 billion, and the company expects it to exit fiscal 2026 at an even higher level. On the last earnings call, management highlighted that the combination of robust order flows, customer collaboration, a growing services business and high-quality backlog provides an excellent view for fiscal 2027. Importantly, about $6.4 billion of the backlog is hardware, with roughly 80% expected to be delivered over the next 12 months, supporting confidence in how the backlog can translate into revenue.

Looking ahead, Ciena expects demand to remain strong as hyperscalers continue expanding capital expenditures into fiscal 2027 and beyond, with a larger share of spending expected to be directed toward network infrastructure. Service providers are also reinvesting in optical infrastructure, while managed optical fiber networks are creating additional opportunities. Ciena expects these service-provider opportunities to be multiyear and durable.
At the same time, AI-driven requirements for high-capacity, low-latency connectivity are supporting demand across traditional WAN markets and data center-related applications.

New product deployments could further support revenue growth. Ciena’s RLS Hyper-Rail platform has secured its first multi-rail order from a leading hyperscaler, with the deployment expected to begin in fiscal 2027. Management said similar engagements with major hyperscalers and service providers are progressing well, with opportunities expected to provide linear growth over the next few years. Hyper-Rail is also expected to generate a meaningful revenue increase in fiscal 2027.

Ciena expects DCOM to remain a multiyear application, while its Nubis portfolio and other interconnect opportunities are positioned for growth in the coming years. With backlog expected to continue increasing, ongoing customer deployments and multiple product opportunities moving toward broader adoption, Ciena’s current order momentum provides a stronger foundation for revenue visibility into fiscal 2027.

For third-quarter fiscal 2026, management expects revenues of $1.625 billion (+/- $50 million). The company also raised its fiscal 2026 revenue outlook to $6.3 billion (+/-$100 million), representing roughly 32% year-over-year growth at the midpoint.

Taking a Look at CIEN’s CompetitorsArista Networks (ANET - Free Report) is well-positioned as cloud, AI and enterprise customers upgrade high-speed Ethernet networks. Demand spans AI fabrics, core data centers, campus and routing, aided by a stronger supply chain and deeper software automation. New AI fabric platforms, including liquid-cooling options and scale-across capabilities, support next-generation AI clusters, while campus recognition shows traction beyond hyperscale cloud. For the third quarter of 2026, management expects revenues to be approximately $3.3 billion, driven by healthy growth momentum and solid demand trends.

Cisco Systems, Inc. (CSCO - Free Report) is seeing broad-based demand, with third-quarter fiscal 2026 revenue of $15.8 billion up 12% year over year. Total product orders rose 35% and networking product orders grew more than 50%, helped by a campus refresh and data center switching orders up more than 40%. For the fourth quarter of fiscal 2026, the company expects revenues of $16.7 billion to $16.9 billion. For fiscal 2026, management raised its outlook to revenue of $62.8 billion to $63.0 billion. Cisco also announced a restructuring plan to reallocate resources toward silicon, optics, security and AI, and expects up to $1 billion of pretax charges, including roughly $450 million in the fourth quarter of fiscal 2026, with the remainder in fiscal 2027.

CIEN Price Performance, Valuation and EstimatesShares of CIEN have surged 387.2% in the past year compared with the Communications - Components industry’s growth of 222.1%.

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CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 56.63, above the industry’s 41.51.

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The Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has remained unchanged over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways Phillips 66 moves ahead with a $5B pipeline project linking refining and marketing operations.Western Gateway will span 1,300 miles with daily capacity of 230,000 barrels.Primarily 10-year take-or-pay contracts are expected to enhance cash-flow visibility for Phillips 66. Phillips 66 (PSX - Free Report) is taking a significant step to strengthen its integrated business model by moving forward with the proposed Western Gateway Pipeline alongside Kinder Morgan, Inc. (KMI - Free Report) and HF Sinclair Corporation (DINO - Free Report) . The partners have made a final investment decision on the approximately $5 billion Western Gateway Pipeline project, with PSX, KMI, DINO holding a 49.9%, 35.1% and 15% stakes, respectively.

For Phillips 66, the project is strategically important because it will create a new refined-products supply route linking the company's Central Corridor and Gulf Coast refining assets with its marketing operations on the West Coast and in the Southwest.

Western Gateway Expands PSX's Market ReachWestern Gateway is expected to span approximately 1,300 miles and have an initial design capacity of 230,000 barrels per day. About 900 miles of new pipeline will connect Borger, TX, with Phoenix, AZ, while KMI will contribute its existing SFPP East and West Line assets. PSX will construct and operate the new-build pipeline, giving PSX a greater role in the infrastructure supporting the movement of its refined products.

The project is also designed for future expansion with limited additional capital and without requiring new pipe, allowing PSX to benefit from rising fuel demand without committing substantial additional investment. This flexibility could improve the company's ability to serve growing markets while strengthening its refining-to-marketing value chain.

Long-Term Contracts Support Phillips 66's Cash FlowA key investment benefit is the project's primarily 10-year, take-or-pay contracts, which should provide greater visibility into future volumes and cash flows once the system enters service. PSX expects to contribute approximately $2.5 billion in cash, while DINO will invest $750 million and KMI approximately $250 million, in addition to KMI’s contribution to existing assets valued at about $1.5 billion.

Sharing the capital burden with KMI and DINO allows PSX to pursue a large-scale infrastructure opportunity while diversifying its investment exposure. The pipeline is expected to improve supply reliability and potentially reduce transportation costs for customers across the Western United States, strengthening PSX's competitive position.

Pipeline Project Enhances PSX's Competitive PositionFor PSX, Western Gateway could provide benefits beyond the direct earnings contribution from the pipeline. The project is expected to enhance market access for PSX's refineries, improve logistics flexibility and create a more efficient connection between its refining and marketing assets.

The long-term contracted structure is expected to support stable cash generation, while scalable capacity could create further growth opportunities. KMI and DINO bring established infrastructure and refining expertise to the venture, helping distribute project execution responsibilities and risk.

Western Gateway Offers Long-Term Value for Phillips 66Targeted for completion in 2029, Western Gateway is a long-term growth investment rather than an immediate earnings catalyst. However, its combination of contracted volumes, strategic market access, scalable capacity and PSX's integrated operating model could strengthen the company's business model and boost cash-flow generation.

The project represents another opportunity for PSX to leverage its refining and marketing footprint, enhance investor appeal and build durable infrastructure-linked earnings, while potentially enhancing long-term shareholder value.

PSX’s Zacks Rank & Key PicksPhillips 66 currently carries a Zacks Rank #3 (Hold).

Another better-ranked refiner in the energy sector is Valero Energy Corporation (VLO - Free Report) .Valero and Kinder Morgan currently carry a Zacks Rank #2 (Buy) each and HF Sinclair sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Valero operates 14 global refineries with a daily refinery throughput capacity of 3 million barrels. The refiner’s ethanol operations are spread across 12 U.S. ethanol plants. During the second quarter of 2026, VLO recorded strong gains in its ethanol sector. Margins expanded to $1.15 per gallon from 52 cents per gallon and operating income rose to 75 cents per gallon compared with 13 cents per gallon a year earlier.