Track market-moving stories before they get noisy

Key Takeaways CSX shares gained 45.5% in a year, outperforming the rail industry's 18.2% growth. CSX could benefit from the upgraded SMX service through stronger cross-border freight connectivity. CSX expanded rail-served facilities, raised its dividend 8% and saw higher 2026 and 2027 estimates. CSX (CSX - Free Report) shares have performed impressively on the bourse of late. Shares of this Jacksonville, FL-based company have surged 45.5% over the past year, outperforming the Zacks Transportation - Rail industry’s 22.5% growth.

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Given the impressive price performance, let's take a deeper look at the factors driving growth at this leading rail-based freight transportation service provider, which currently carries a Zacks Rank #2 (Buy), and assess its potential for continued gains. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CSX and Canadian Pacific Kansas City (CP - Free Report) are expected to benefit from the upgraded Southeast Mexico Express (“SMX”) service, as faster transit times, expanded market access and improved network efficiency are introduced. Backed by infrastructure investments, cross-border connectivity between the U.S. Southeast, Texas and Mexico is expected to be strengthened, potentially driving additional freight volumes and supporting long-term growth.

Similarly, Schneider National (SNDR - Free Report) , a premier provider of transportation, intermodal and logistics services, has already benefited from the SMX corridor. The enhanced service offers more reliable, truck-like transit times between Texas, Mexico and the U.S. Southeast, strengthening rail's competitiveness against trucking while providing greater capacity and efficiency for shippers.

CSX continued to broaden its growth opportunities by adding 85 new or expanded rail-served facilities and maintaining a robust pipeline of customer development projects across its network. At the end of 2025, the company also broadened its market reach through new intermodal and interchange agreements while returning $2.4 billion to shareholders through dividends and share repurchases. An 8% dividend increase, combined with ongoing investments in artificial intelligence and predictive analytics, highlights management's confidence in the company's long-term growth, productivity and cash-generation potential.

The company also delivered notable improvements in safety and service performance at the end of 2025. Its FRA personal injury frequency index improved to 0.94, while its train accident rate improved to 3.08, reflecting a strong focus on employee safety and operational discipline. Network performance metrics, including train velocity, terminal dwell and trip-plan performance, also improved throughout the second half of 2025, providing a stronger foundation for service reliability, customer satisfaction and future commercial growth.

Estimate Revisions to Head NorthDriven by the positives discussed above, the Zacks Consensus Estimate for the full-year 2026 and 2027 has been revised upward by 3.26% and 3.37%, respectively, over the past 60 days.

The Magnificent Seven stocks dominate AI headlines, but the most interesting institutional positioning is happening one rung down the supply chain. The companies actually building, wiring, and connecting the AI factories trade at a fraction of the attention, despite reporting revenue growth that puts the mega caps to shame.

Three names stand out in June: a contract manufacturer, an enterprise server giant and a connectivity silicon designer. All three have raised guidance, beaten estimates and quietly compounded while retail flow chased flashier tickers.

Here is the case for each.

Celestica (CLS) Celestica (NYSE:CLS | CLS Price Prediction) is a Toronto-headquartered, US-listed electronics manufacturing services firm that has quietly become a pure-play AI data center infrastructure name. The market cap sits near $44.58 billion, and the stock is up 222% over the past year and 36% year to date.

The Q1 FY26 report on April 27, 2026 delivered revenue of $4.05 billion, up 53% year over year, with adjusted EPS of $2.16 versus the $2.08 estimate, the fourth consecutive EPS beat. The Connectivity & Cloud Solutions segment grew 76% year over year to $3.24 billion. Management raised the 2026 outlook to $19.0 billion in revenue and $10.15 in adjusted EPS, with CEO Rob Mionis stating, “Our outlook for 2027 also continues to strengthen.”

The bull case is simple. Celestica won a co-packaged optics Ethernet switch program with a hyperscaler customer on 1.6T silicon, ramping in 2027. Sentiment scoring across news and social channels reads bullish at 65.29 with medium confidence.

The caveat: customer concentration is extreme. The top three customers represented 36%, 15%, and 12% of Q4 revenue. A single hyperscaler order cut would hit hard.

Dell Technologies (DELL) Dell Technologies (NYSE:DELL) is the under-the-radar AI play hiding in plain sight. Market cap sits near $132.85 billion, the stock trades around $408.84, and it carries a P/E of roughly 22 with a dividend yield near 1%. The shares are up 279% over the past year and 227% year to date.

The Q1 FY27 report on May 28, 2026 was a blowout. Revenue of $43.84 billion grew 88% year over year, beating the $35.77 billion estimate. Non-GAAP EPS of $4.86 crushed the $2.96 consensus. AI-optimized server revenue hit $16.13 billion, up 757% year over year, with $24.4 billion in AI orders booked in the quarter. Dell raised its FY27 outlook to $165 billion to $169 billion in revenue, AI server revenue near $60 billion, and non-GAAP EPS of $17.90 at the midpoint.

The thesis: Dell is the largest enterprise AI server vendor by scale, sitting on a $43 billion AI server backlog entering FY27 after booking $64 billion in FY26 AI orders. Management returned $2.1 billion to shareholders in Q1 on the back of a 20% dividend increase and a $10 billion buyback authorization. At a forward earnings multiple in the low 20s on triple-digit AI growth, the valuation looks restrained.

The risk: gross margin compressed to 18% from 21% as the mix shifted toward lower-margin AI servers. Dell is converting revenue at thinner profitability than legacy ISG.

Astera Labs (ALAB) Astera Labs (NASDAQ:ALAB) is the connectivity silicon designer most retail investors still cannot place. Market cap sits near $63.61 billion, with analyst coverage skewing constructive: seven Strong Buy ratings, 11 Buy ratings, eight Hold ratings and zero Sell ratings. The stock is up 334% over the past year.

The Q1 FY26 report on May 5, 2026 showed revenue of $308.36 million, up 93% year over year and 14% sequentially, with non-GAAP EPS of $0.61 versus the $0.54 estimate. That marks four consecutive EPS beats. GAAP gross margin expanded to 76%. Q2 guidance calls for $355 million to $365 million in revenue and $0.68 to $0.70 in EPS.

CEO Jitendra Mohan framed the runway: “We believe the opportunity ahead is significant, and we are investing to be a leader for rack-scale AI technologies in close partnership with our customers.” The newly launched Scorpio X-Series 320-lane Smart Fabric Switch targets a merchant scale-up market projected at $20 billion by 2030, with production ramping in the second half of 2026.

The caveat: Q2 gross margin guides to roughly 73% as new switch products ramp, and the stock trades at a forward earnings multiple of 132. Beta of 3.963 means any AI capex wobble gets amplified violently in the share price.

What to watch next The common thread across all three is hyperscaler CapEx. PineBridge estimates datacenter equipment growth is essentially locked in for the next four to five years at around 25% annually, constrained more by electrical infrastructure than demand. If that holds, Celestica, Dell, and Astera Labs are positioned where the capital actually lands. The next catalysts: Dell’s Q2 FY27 report, Celestica’s CPO program ramp commentary, and Astera Labs’ Scorpio X-Series production milestones in the second half of 2026.

Several leading semiconductor equipment firms saw their shares hit record highs on Wednesday after a bullish report on the sector from investment firm Citi. ASML (ASML) stock was among those in rarefied air.

Citi analyst Atif Malik increased his bull-case estimates for wafer fabrication equipment (WFE) sales for 2026 and the next two years. He also raised his price targets on buy-rated Applied Materials (AMAT), KLA (KLAC) and Lam Research (LRCX).

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Malik upped his price target on Applied Materials to 710 from 550. On the stock market today, Applied Materials surged 4.4% to close at 592.92. Earlier in the session, AMAT stock notched an all-time high of 623.35.

He raised his price target on KLA to 290 from 206.40. KLA stock rose 0.6% to 238.73 on Wednesday. It is trading below its record high of 267.17, reached on Monday.

Malik increased his price target on Lam stock to 450 from 315. On Wednesday, Lam stock climbed 1.3% to 374.18. In intraday trading, it reached an all-time high of 397.54.

ASML Stock Spikes To Record High Elsewhere among chip gear stocks, ASML jumped 3.5% to close at 1,867.83. Earlier in the day, it hit a record high of 1,938.49.

Semiconductor equipment stocks are benefiting from chipmakers buying new gear to increase capacity to produce logic, memory and other chips for the artificial intelligence boom.

Malik predicted bull-case WFE sales of $145 billion this year, $200 billion in 2027 and $250 billion in 2028.

"We are more constructive on 2028 WFE given continued capacity constraints and expansion at both TSMC and memory makers, as well as recent progress at Intel and Samsung foundries," he said in a client note.

Other chip gear stocks hitting record highs on Wednesday included ACM Research (ACMR), MKS (MKSI), Teradyne (TER) and Tokyo Electron (TOELY).

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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Key Takeaways Elevance Health invested $640M in affordable housing over five years, supporting 2,654 units in 10 states.The strategy pairs housing with healthcare and support services for vulnerable Medicaid and Medicare members.Elevance says stable housing may improve outcomes, manage costs and support long-term growth. Elevance Health, Inc. (ELV - Free Report) recently announced that it has invested $640 million in affordable housing projects over the past five years, reinforcing its broader effort to address social factors that influence health outcomes. The investments supported the development of 2,654 affordable housing units across 15 properties in 10 states, including apartment homes, townhomes and single-family residences. The latest commitment brings ELV's total affordable housing investment to more than $1 billion over nearly two decades, ultimately supporting over 40,000 units across 45 states.

The initiative goes beyond building affordable housing. Elevance aims to pair housing with healthcare and community support services, particularly for vulnerable populations. The company believes that stable housing can improve health outcomes, increase access to care and help address social factors that often lead to poorer health. By helping high-risk Medicaid and Medicare members secure reliable housing, Elevance hopes to create healthier communities and improve member well-being.

The investment also aligns with Elevance's broader strategy of managing healthcare costs while improving member outcomes. For the first quarter of 2026, the company reported adjusted earnings per share of $12.58 and raised its full-year adjusted EPS guidance. As healthcare utilization remains elevated across government-sponsored programs, addressing the root causes of poor health could help moderate medical costs and support long-term margin stability.

The announcement signals a long-term value creation strategy rather than an immediate earnings catalyst. These community-focused investments could strengthen Elevance's relationships with state agencies and enhance its position when competing for government-sponsored healthcare contracts. Overall, the initiative reflects management's focus on sustainable growth and long-term shareholder value.

ELV’s Stock Price PerformanceShares of Elevance Health have gained 11.6% year to date compared to the industry’s 6.5% decline over the same period.

Image Source: Zacks Investment Research

ELV’s Zacks Rank & Key PicksElevance Health currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Medical space are Surgery Partners, Inc. (SGRY - Free Report) , BrightSpring Health Services, Inc. (BTSG - Free Report) and Alignment Healthcare, Inc. (ALHC - 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 Surgery Partners’ 2026 earnings is pegged at 36 cents per share, which has witnessed three upward revisions in the past 60 days, with no movement in the opposite direction. The consensus estimate for SGRY’s 2026 revenues is pinned at $3.41 billion, implying 3% year-over-year growth.

The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.67 per share, which has witnessed five upward revisions in the past 60 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 14.6%. The consensus estimate for 2026 revenues is pinned at $15.05 billion, implying 16.6% year-over-year growth.

The Zacks Consensus Estimate for Alignment Healthcare’s 2026 earnings is pegged at 20 cents per share, which has witnessed four upward revisions in the past 60 days, with no movement in the opposite direction. ALHC beat earnings estimates in each of the trailing four quarters, with the average surprise being 198.8%. The consensus estimate for 2026 revenues is pinned at $5.19 billion, implying 31.4% year-over-year growth.

The TJX Companies (TJX +0.47%) has earned its reputation for providing value to both its customers and its long-term shareholders. Yet with shares up 34% over the past year and the stock now trading at roughly 32 times this year's earnings estimates, the value proposition for investors may be fading.

Operationally, the business remains strong. In the first quarter, same-store (comp) sales rose 6%, driven by higher customer traffic and spending per visit. The balanced growth across TJ Maxx, Marshalls, and HomeGoods, which posted an impressive 9% comp, shows the company continues to attract a broad range of customers.

The company's "treasure hunt" shopping experience has proven a durable advantage that resonates with younger shoppers. These Gen Z and millennial shoppers now account for a disproportionate number of its new customers, according to management.

TJX's margins are also expanding at a time when many retailers are facing pressure, with gross margin expanding by nearly 2 percentage points, reaching 31.3% in the quarter.

Image source: Getty Images

An opportunistic buying model The retailer's track record stems from its ability to capitalize on shifting fashion trends. While most companies struggle with excess inventory, the off-price retailer takes advantage, acquiring merchandise at deep discounts during times of distress.

The company leverages its relationships with over 21,000 vendors, giving it unmatched access to deals on brand-name goods. This allows TJX to sell brand-name and designer merchandise at prices typically 20% to 60% below those of traditional retailers. This value proposition continues to drive consistent traffic to its stores.

With over 5,200 stores globally, extending the growth story requires creativity. Management has outlined a pathway to an additional 1,800 stores within its current markets.

A significant portion of this growth is focused on the U.S. home furnishings market, which management estimates is worth over $30 billion. The company recently raised its long-term store target for HomeGoods in the U.S. from 1,000 to 1,800 locations.

This banner, along with its growing Homesense format, offers a source of profitable growth to complement its maturing apparel business while facing limited off-price competition.

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A high price for quality While the domestic growth story is compelling, international stores continue to report below-average profitability. TJX International's segment profit margin was just 4.6% in the first quarter, compared with the low-to-mid-teens for the rest of the business.

The company generated nearly $5 billion in free cash flow last year and maintains a strong balance sheet with $2.7 billion in net cash. This financial flexibility allows management to be patient, enabling it to invest in its next leg of growth, which could include entering a new category to expand its total addressable market.

After its strong run, the company needs to deliver on continued growth and margin expansion to drive returns from here. TJX remains one of the best-run companies in retail, and the off-price category remains a compelling space to invest, but at over 30 times earnings, patience may be the best approach.

Vale VALE board members have voted against Previ's proposal to remove Daniel André Stieler as chairman, setting up a possible governance battle at the world's top iron ore producer. The decision could influence proxy advisory firms and institutional investors ahead of Vale's extraordinary shareholder meeting on July 22.

Previ, which owns 7% of Vale, is pushing to remove Stieler before his mandate expires in April 2027. The pension fund is backing independent director Manuel Lino Oliveira as chairman, while also appointing former Previ CEO José Mauricio Pereira Coelho to take a vacant board seat.

Vale's board majority is preparing its own slate, with current vice chairman Marcelo Gasparino expected to compete as an alternative chairman candidate and former BP BP executive Ieda Gomes Yell set to run for the vacant seat, according to people familiar with the matter. The vote could become a key test of Vale's governance direction, with major shareholders including Mitsui, BlackRock and Capital World Investors watching the contest.

© Stockcrafterpro / Shutterstock.com

Micron Technology (NASDAQ:MU | MU Price Prediction) stock is up about 6% in Monday morning trading to around $1,199, leading a broad memory and storage rally into the company’s Wednesday earnings report. Western Digital (NASDAQ:WDC) stock is also up by about 6% to around $788, while SanDisk (NASDAQ:SNDK) stock is up 5% to around $2,294.

The group is resisting worries about renewed U.S.-Iran tensions, including fresh strike threats and concerns over the Strait of Hormuz.

That memory and storage are catching a bid despite the geopolitical backdrop underscores how much conviction has built around the so-called memory supercycle. The memory/storage complex hit record highs last Thursday, with Friday, June 19, closed for Juneteenth.

Needham’s $1,550 Micron Target Lights the Fuse The freshest catalyst is a major Wall Street endorsement. Needham raised its price target on Micron stock to $1,550, up from $500, and maintained a Buy rating ahead of Wednesday’s report.

The firm argued that the memory market has continued to strengthen over the past 90 days, with fundamentals “stronger for longer” thanks to robust demand, a firm pricing environment, and limited capacity additions. Needham also believes long-term agreements being signed across the industry are giving suppliers, including Micron, better demand visibility that extends over multiple years.

Micron stock has been a freight train into the earnings report. The shares are up 298% year to date (YTD) through June 18, with last quarter’s results showing revenue of $23.86 billion and a guide for fiscal Q3 2026 revenue of $33.5 billion plus or minus $750 million.

Storage Peers Get Their Own Upgrades The bullish analyst drumbeat isn’t isolated to Micron. JPMorgan raised its Western Digital price target to $650 from $530 (Overweight) on June 12, citing a more positive pricing view and accelerating year-over-year price increases for HDD makers. Wells Fargo raised its Western Digital stock price target to $575 from $500 (Overweight) on June 1.

Micron stock also received price target upgrades last week from Wedbush, Rosenblatt, and Stifel. Adding to the demand-side narrative, Apple (NASDAQ:AAPL) CEO Tim Cook’s recent comments that memory and storage cost increases are making Apple price hikes “unavoidable” helped fuel the sector’s bullish momentum last week.

SanDisk stock, the NAND-focused spinoff, has ridden the same wave. Last quarter, SanDisk reported revenue of $5.95 billion with gross margin of 78%, validating the AI-storage thesis.

Bubble or Supercycle? The Debate Heats Up Not everyone is convinced that the move can continue without a pause. Technical readings are flashing yellow across the group, with RSI readings of 66.4 for Micron, 70.9 for SanDisk, 74 for Seagate, and 78 for Western Digital, with 70-plus generally considered overbought.

The crowd is also split. Retail sentiment on StockTwits has been bearish for SanDisk and Micron even amid the rally, even as the Polymarket contract for Micron’s Wednesday report is pricing in a 97% probability of a non-GAAP EPS beat above the $19.66 consensus. The analyst consensus target on Micron stock sits at $945.6, well below the current price, reflecting how far the tape has run ahead of Street models.

What to Watch The next pivot is Wednesday, June 24, after the close, when Micron reports its fiscal Q3 2026 results. Investors can watch for whether management’s guidance validates the “stronger for longer” thesis or gives the overbought tape a reason to cool.

Until then, the memory complex looks willing to ignore the macro noise. Keep an eye on whether Micron stock can hold above the $1,200 level, and whether Western Digital stock and SanDisk stock track it tick for tick.

Best Buy Co Inc (NYSE:BBY) is positioned for a new phase of growth under incoming CEO Jason Bonfig, according to Jefferies analysts, who said that recent discussions with the executive left them increasingly confident in the company’s outlook amid shifting dynamics in consumer electronics.

Jefferies sees a supportive backdrop for the retailer as replacement cycles, product innovation and category complexity converge, creating what it describes as an opportunity for higher industry growth and above-average expansion for Best Buy.

The firm highlighted potential upside drivers, including retail media, third-party marketplace growth, TV replacement demand, and share gains in appliances.

Jefferies pointed to Bonfig’s long-standing relationships with key vendors as a strategic advantage, particularly in the context of ongoing supply chain constraints such as memory chip shortages.

The analysts also highlighted his role in securing Best Buy’s early exclusivity around RGB televisions, citing it as evidence of his ability to commercialize emerging technology trends.

According to Jefferies, the launch of RGB TVs is expected imminently, with employee training completed and a broad marketing campaign set to begin later this month. The rollout will include bundled services such as delivery, installation and haul-away, which the firm said reflects a deliberate effort to target consumers who may not yet have an urgent replacement need.

On Best Buy’s advertising business, Jefferies said recent technology investments could enable more flexible and scalable campaign formats, including multiple simultaneous store “takeover” campaigns across different geographies and customer segments. The firm described this as a potential acceleration point for what is already a high-margin revenue stream.

Jefferies also compared Best Buy’s positioning in the current AI cycle to the early days of Wi-Fi adoption, arguing that new technology waves tend to benefit the retailer as consumers rely on in-store expertise to navigate complex product shifts.

In appliances, the note highlighted a strategy focused on delivery speed and fulfillment optimization, including expanded rural inventory positioning and later cutoffs for next-day delivery in urban markets. Jefferies wrote that these changes could help capture incremental demand from time-sensitive purchases.

The firm added that Best Buy’s third-party marketplace expansion is expected to scale faster in the US than it did in Canada, where Bonfig previously led similar efforts.

Jefferies concluded that Best Buy is well positioned in an “agentic commerce” environment, where automated shopping tools may increase price transparency but also surface fulfillment and service advantages such as rapid delivery and installation—areas where the retailer maintains structural strengths.

Best Buy shares traded hands at about $74 on Tuesday, up almost 11% in the year to date.

Three Democratic senators have urged the Federal Communications Commission (FCC) to put the Paramount-Warner Bros. Discovery merger on pause over concerns about foreign investors controlling what would be one of the largest media companies in the United States.

In a joint letter to FCC Chairman Brendan Carr, senators Cory Booker, D- N.J.; Adam Schiff, D-Calif.; and Elizabeth Warren, D-Mass., demanded he “must foreclose any attempt by Paramount to close this transaction” before an adequate review of the involved foreign investors is completed.

The lawmakers said the FCC must conduct this review to evaluate possible “national security threats posed by foreign government investment” in the $110 billion entity. If approved, the merger would bring CNN and CBS News under one corporate owner, further consolidating the news media landscape.

Paramount, led by CEO David Ellison, acknowledged in an April financial disclosure cited by the senators that foreign ownership in the new corporation will rise to “approximately 49.5 percent.” In that document, Paramount also said that all voting rights will be “controlled by the Ellison family through U.S. entities.”

Federal Communications Commission (FCC) Chair Brendan Carr speaks during the U.S. Chamber of Commerce 2025 Global Aerospace Summit in Washington, D.C., U.S., September 9, 2025. REUTERS The document revealed that Saudi Arabia’s public investment fund and various entities based in the United Arab Emirates and Qatar would be equity holders.

Paramount told the FCC in April that this arrangement would not present “any national security, law enforcement, or foreign or trade policy concerns.”

The senators want a more rigorous check of what this level of foreign ownership would mean, telling Carr in their letter that he should not take the Ellison family’s statements “at face value.”

The Paramount water tower is shown on the Paramount studio lot in Hollywood, Los Angeles, California, U.S., January 13, 2026. REUTERS They argued that the FCC should reject Paramount’s petition for preemptive approval. Under Section 310 of the 1934 Communications Act, foreign individuals, companies and governments are generally prohibited from owning more than 25% of a U.S.-based firm that has an FCC-issued broadcast license.

Booker, Schiff and Warren gave Carr a July 1 deadline to notify Paramount that the deal cannot close until the foreign investment review is completed.

The FCC’s pending approval is the largest regulatory hurdle in the way of the merger. The Department of Justice signaled last week it would not challenge Paramount’s bid to acquire Warner Bros.

Senator Elizabeth Warren (D-MA) speaks at a press conference with Senate Minority Leader Chuck Schumer (D-NY) and Senator Patty Murray (D-WA) on Democrat’s plan to lower the cost of childcare, at the U.S. Capitol in Washington, DC on June 17, 2026. Nathan Posner/Shutterstock The DOJ’s antitrust division concluded after an eight-month review that “the transaction is not likely to result in harm to competition or American consumers” with regard to on-demand streaming, linear television and studio development and the production and distribution of films.

Warren criticized this decision by the DOJ and urged state attorneys general to continue fighting the transaction. California Attorney General Rob Bonta was already leading a coalition of states in preparing a lawsuit to block Paramount from adding Warner Bros. to its growing portfolio.

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More than 5,000 filmmakers and actors working in Hollywood signed an open letter in April furiously demanding that the merger be stopped. They argued that it would stifle competition and reduce job opportunities.

“Our industry is already under severe strain, in large part due to prior waves of consolidation. We have witnessed a steep decline in the number of films produced and released,” according to the petition. “We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good.”

DALLAS — Carvana is aiming to bring its online strategy for selling used vehicles to sales of new cars and trucks.

But don't expect the company to actually sell you a vehicle at one of its seven Stellantis franchised dealerships.

Instead, the online vehicle retailer said it intends to use such dealerships as service locations, test-drive centers and potentially "playgrounds" for consumers to decide what vehicle they would like to buy through Carvana's online platforms, marking a stark contrast from how traditional franchised dealers handle new products.

"Every single car that we sell, whether it's used or new, is online," Tom Taira, Carvana president of special projects who's leading the new vehicle operations, told CNBC during an interview at its franchise in Texas. "That's a very inherent difference. Even coming into the store, you're buying it online, and that's a big difference in how people think about it."

Shares of Carvana fell 10% during trading Wednesday, which coincided with CarMax, the company's largest rival, beating Wall Street's quarterly expectations but reporting margin pressure and declining gross profit per retail used vehicle.

Through its used vehicle sales, Carvana has become the most valuable auto retailer in the U.S. with a more than $70 billion market cap. Carvana's target with the new vehicle business is to grow its market share and customer base as well as assist used vehicle sales through trade-ins and other means, according to Taira.

If the company is successful, the strategy could cause a ripple effect across the U.S. franchised dealership model, which the National Automobile Dealers Association says includes 16,990 retailers that topped $1.3 trillion in sales last year.

This week marks the first time Carvana has publicly talked about its plans for new vehicles since it purchased its first Chrysler-Dodge-Jeep-Ram franchised store for Stellantis early last year in Arizona. Its network has since grown to other Carvana-popular markets in Sacramento and San Diego, California; Dallas; Atlanta; Cleveland; and Boston. 

"When we got into new cars, we said the only way we're going to make this happen is to ensure that it goes the Carvana way. That we actually sell cars exactly the same way that we do to used car customers," Taira said during a media event at its Dallas location. "Why break something that already works?"

Carvana spent roughly $171 million on its acquisitions of new Stellantis vehicle franchised dealerships, excluding its most recent purchase of a retailer in Ohio, according to public filings. The company declined to disclose any further investments in the stores to implement its strategy.

Taira and the company also declined to disclose Carvana's new vehicle sales so far or its future expansion plans for additional brands or other Stellantis dealerships. CNBC previously confirmed that the company has quickly grown its new vehicle sales, including a location in Arizona becoming the top-selling dealer in the country for Stellantis.

"We believe that this was worth it to us, as long as we could go out and increase share and increase the pie," Taira said. He declined to comment on whether the new vehicle business is profitable.

To be able to integrate its new vehicle sales into its current website, as first reported by CNBC, Carvana was approved as a certified website provider for Stellantis instead of utilizing mandated third-party companies. Several franchised dealers said they believed that was a unique benefit for Carvana.

Stellantis, in an statement to CNBC, said Carvana operates as a "corporate owner" of its brands, similarly to other large publicly traded companies such as Lithia and AutoNation. 

"We apply the same consistent standards and criteria to all dealer partners, and any organization that meets our qualifications is eligible to operate as a franchisee," the automaker said, adding that Stellantis "certifies tools and services that will enhance our program and be beneficial to our network. All certified providers must complete a rigorous onboarding process and meet program standards and requirement."

Test-drives, vehicle 'playground'Carvana is using a location in Dallas as a test center for its foray into new vehicle sales. The facility looks like a traditional Stellantis dealership from the outside, but the consumer process for purchasing a vehicle and the responsibilities of its employees are unprecedented.

Couches and chairs replace cubicles and sales offices. There are no finance and insurance departments, and instead of an army of commission-based employees, the facility has associates that are paid hourly to assist customers — if they want the help.

The experience is meant to be as self-guided as a customer wants. By scanning QR codes located on 10-foot-by-10-foot screens inside the building or on vehicles and displays outside, shoppers can customize a vehicle, learn about a product's features and conduct test-drives before deciding whether to purchase anything. If they do decide to buy something, it's online and not originated from a sales person, the company said.

The playground has roughly 50 vehicles divided by brand, with each having a theme. Jeep has an off-road display. Dodge has race tracks, including a Carvana-themed Charger pace car and part of a traditional track fence barrier. Chrysler minivans, meanwhile, have a soccer net and Ram's area is truck-centric.

Carvana is not committing to expanding the exact experience to its other franchised dealer locations, but Taira told CNBC that the overall process of online sales, vehicle testing and service are expected to be consistent throughout the locations.

"I think the business case and the case for additional stores comes out through this location first," he told CNBC, adding that it built out the store in weeks. "Is it important for us to launch a second? No, I think what's important is that we get this right. … There's no giant plan to build test-drive centers everywhere."

Vehicle inventory constraintsOnce a customer decides to test-drive or even purchases a vehicle from the location, that's where the process can get more complex, depending on what model a consumer wants.

Taira said the company chose to purchase Stellantis dealerships for the automaker's breadth of brands as well as its variety of products, which can be a double-edged sword when it comes to consumers actually finding the exact vehicle they want to test-drive or purchase.

Unlike a traditional dealership that stockpiles vehicles for customers to test-drive before purchasing, at the Texas facility, Carvana has roughly 50 display cars on its playground, with twin vehicles for test-drives. It had roughly 3,000 new vehicles for sale nationwide compared with more than 60,000 used models as of Wednesday morning, according to its website.

This means that a customer may not be able to test-drive the exact vehicle or even model they're purchasing, but the online process tries to match the best test-drive vehicle possible with what they want. It also describes what's the same and what's different.

Carvana's stock over five years.

Looking at the Texas location's system for vehicles such as an $87,000 Ram 1500 RHO performance model, the closest thing on-site for a test-drive was a roughly $61,000 Ram 1500 Big Horn with the same interior and four-door configuration but no other feature matches, including its performance engine.

It's why traditional automotive dealers have large vehicle inventories, especially for pickup trucks that have a litany of build options and wide bandwidth of performance specs.

Taira said Carvana is continuing to take lessons learned from its year-plus experience of selling new vehicles into its day-to-day operations. He said the company is learning what vehicles to keep in stock and is working to ensure customers know they are buying a new vehicle rather than a used one.

"We're going through all this technology. This is brand new," Taira said. "All these things are active, meaning the amount of progression we're going to make over the course of the next days to weeks to months."

Taira said the company prioritizes new vehicle sales to local customers, much like it does for used vehicles, to avoid additional costs, but it does use its nationwide logistics network and more than 100 U.S. Carvana locations when necessary.

Carvana will service vehiclesA major question of Stellantis franchised dealers and Wall Street analysts before Carvana revealed its new vehicle plans was how the company planned to service the new products it sells.

Taira said the company, for the time being, will operationally run its service departments like a traditional franchised dealer, but with its guiding strategy of transparent, nonhaggling pricing and "hassle-free" customer experience.

"As it relates to how you actually do service, they're traditional. It's a traditional setup in that way," he told CNBC. "In that way, what we're doing … as it relates to service, we believe the same principles that we have with selling cars."

At the end of the day, selling cars is Carvana's core business, but servicing vehicles has historically been a lucrative market for franchised dealers, along with customer financing, which Carvana has always focused on for its business.

Much like its used vehicles, Carvana is currently only accepting cash or offering financing through the company itself, including selling consumer auto loans it originates to institutional investors and partner banks, such as Ally Financial, to maintain liquidity.

Taira did not dismiss the possibility of Carvana offering leasing or using Stellantis' financial services, which have been highly profitable for automakers, but said the offerings would need to seamlessly integrate into its current online selling platforms.

"Part of what makes this great, this experience, is what we already know. What we already know is the system that we have in place," he said. "That does not mean that integration isn't something that we're going to be [doing] as part of our learning and experimentation going forward."

June 22, 2026 07:00 ET  | Source: Robinhood Markets, Inc.

Opportunistic capital raise with proceeds used to enhance strategic flexibility to invest for future growth     

Approximately $300 million of the proceeds to be used to repurchase shares, although the amount of Class A common stock that Robinhood actually repurchases may be more or less than $300 million

Additionally, a portion of the proceeds to be used to purchase capped calls intended to offset any share dilution until at least a targeted 125% premium to the last reported sale price of Robinhood’s Class A common stock on the date of pricing

MENLO PARK, Calif., June 22, 2026 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced that, subject to market conditions, it intends to offer $2.0 billion in aggregate principal amount of convertible senior notes due 2029 (the “Notes”) in a private placement (the “Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Robinhood also intends to grant the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period from, and including the date on which the Notes are first issued, up to an additional $200 million aggregate principal amount of Notes.

The Notes will be senior, unsecured obligations of Robinhood. Robinhood will settle conversions by paying cash up to the aggregate principal amount of the Notes to be converted and paying or delivering, as the case may be, cash, shares of Robinhood’s Class A common stock or a combination of cash and shares of Robinhood’s Class A common stock, at Robinhood’s election, in respect of the remainder, if any, of Robinhood’s conversion obligation in excess of the aggregate principal amount of the Notes being converted, based on the then applicable conversion rate. The Notes will mature on October 1, 2029, unless earlier converted, redeemed or repurchased.

Robinhood may not redeem the Notes prior to July 1, 2028, except in the event of a cleanup redemption (as defined below). Robinhood may redeem for cash all or any portion of the Notes (subject to certain limitations), at its option, on or after July 1, 2028 and prior to the 21st scheduled trading day immediately preceding October 1, 2029, if the last reported sale price of Robinhood’s Class A common stock has been at least 120% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Robinhood provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In addition, the Notes will be redeemable at any time if the aggregate principal amount of the Notes that remains outstanding is less than $100 million and certain other conditions are satisfied (a “cleanup redemption”).

The interest rate, the initial conversion rate and certain other terms of the Notes will be determined at the time of pricing of the Offering.

Robinhood intends to use (i) approximately $300 million of the net proceeds from the Offering to repurchase its Class A common stock, although the amount of its Class A common stock that Robinhood actually repurchases may be more or less than $300 million, (ii) a portion of the net proceeds from the Offering to fund the costs of the capped call transactions described below and (iii) the remainder of the net proceeds from the Offering, if any, for general corporate purposes, which may include organic growth investments, potential acquisitions and/or capital expenditures. If the initial purchasers exercise their option to purchase additional Notes, Robinhood expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions. In addition, following the Offering, Robinhood plans to continue to repurchase additional shares of its Class A common stock pursuant to Robinhood’s stock repurchase program. The repurchases of Robinhood’s Class A common stock described above could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes. In the case of repurchases effected concurrently with the Offering, this activity could affect the market price of Robinhood’s Class A common stock prior to, concurrently with or shortly after the pricing of the Notes, and could result in a higher effective conversion price for the Notes.

In connection with the pricing of the Notes, Robinhood expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Notes or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments, the number of shares of Robinhood’s Class A common stock initially underlying the Notes sold in the Offering. The capped call transactions are expected generally to reduce potential dilution to Robinhood’s Class A common stock upon conversion of any Notes and/or offset any cash payments Robinhood is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap.

Robinhood has been advised that, as is customary for convertible note offerings that include capped call transactions, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of Robinhood’s Class A common stock and/or enter into various derivative transactions with respect to Robinhood’s Class A common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Robinhood’s Class A common stock or the Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Robinhood’s Class A common stock and/or purchasing or selling Robinhood’s Class A common stock or other securities of Robinhood in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so (x) during any observation period related to a conversion of Notes or following any repurchase of Notes in connection with any “fundamental change” (as defined in the indenture for the Notes) and (y) following any other repurchase of Notes if Robinhood elects to unwind a portion of the capped call transactions in connection with such repurchase). This activity could also cause or avoid an increase or decrease in the market price of Robinhood’s Class A common stock or the Notes, which could affect the ability of noteholders to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the amount and value of the consideration that noteholders will receive upon conversion of the Notes.

Neither the Notes nor the shares of Robinhood’s Class A common stock potentially issuable upon conversion of the Notes, if any, have been, or will be, registered under the Securities Act, the securities laws of any other jurisdiction or any state securities laws and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act. This news release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale is unlawful. No assurance can be made that the Offering will be consummated on its proposed terms or at all.

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Forward-Looking Statements

This press release contains forward-looking statements regarding Robinhood and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”), including, but not limited to, statements regarding the anticipated terms of the Notes, the completion, timing and size of the Offering and capped call transactions, the anticipated effects of entering into the capped call transactions, and the intended use of the net proceeds from the Offering and the anticipated effects thereof. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Factors that contribute to the uncertain nature of our forward-looking statements include, among others, risks and uncertainties associated with market conditions, including market interest rates, the trading price and volatility of Robinhood's Class A common stock and risks related to this Offering, and Robinhood’s business and operations and results of operations. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, June 22, 2026, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

, /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided second quarter 2026 earnings guidance in the range of $3.51 to $3.55 per diluted share. Comparatively, the company's sequential first quarter 2026 earnings were $2.78 per diluted share, and prior year second quarter earnings were $2.01 per diluted share.

Estimated second quarter earnings have been reduced by $16 million, as a result of asset write-downs related to the decision to relocate the company's planned second satellite aluminum recycled slab center from Arizona to Columbus, Mississippi, as differences with Arizona state officials risked the construction and operations of the facility.  

Second quarter 2026 profitability from the company's steel operations is expected to be meaningfully higher than first quarter results, driven by strong demand and metal margin expansion across the platform, as average realized selling values increased more than scrap raw material costs. Order activity remains strong, supported by underlying demand and persistently low steel inventories, which continue to support favorable pricing conditions. Demand across key end markets remains solid, with non-residential construction, energy, automotive, and industrial sectors leading performance.

Second quarter 2026 earnings from the company's metals recycling operations are expected to be similar to sequential first quarter results, as increased ferrous and non-ferrous shipments are expected to be offset by expected nonferrous unrealized hedging losses.  

Second quarter 2026 earnings from the company's steel fabrication operations are expected to be incrementally below sequential first quarter results, as the benefit from stronger shipments combined with steady pricing is offset by higher steel raw material input costs. Customer order activity has remained strong, continuing the momentum beginning at the end of 2025. The order backlog is now nearly 40% higher than a year ago and extends through the end of the year and into 2027. Current demand is being supported by commercial construction, data center and warehouse buildouts, manufacturing, and healthcare end markets. The company expects further volume improvement throughout the year and into 2027, supported by domestic manufacturing investment, U.S. infrastructure investment, other stimulus programs, and ongoing onshoring activity.

Second quarter 2026 earnings from the company's aluminum operations are expected to improve significantly compared to first quarter sequential results, based on increased shipments and higher realized pricing. The aluminum team continues to make strong progress on the commissioning and startup of the company's aluminum flat rolled products mill in Columbus, Mississippi. Two of the three cold mills are now operational, and the third cold mill is expected to begin qualifying material in July. Additionally, the first of two Continuous Annealing and Solution Heat (CASH) lines, which support the production of finished automotive products, is operating and shipping material for customer qualification. The second CASH line is also expected to begin material qualifications in the fourth quarter 2026.

The company has repurchased $170 million, or one half of one percent, of its common stock so far during the second quarter 2026. 

The company currently plans to release its second quarter 2026 earnings after the market closes on July 20, 2026, and will hold a conference call the next day at 11:00 a.m. Eastern Daylight Time to discuss the company's performance. 

About Steel Dynamics, Inc.

Steel Dynamics is a leading industrial metals solutions company, with facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission, quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers in North America, combined with a meaningful downstream steel fabrication platform. The company also has aluminum operations, further diversifying its product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Steel Dynamics is committed to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added metal products.

Forward-Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals marketplaces, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) the cyclical nature of the metals industries and the industries we serve; (4) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (5) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (6) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations; (7) compliance with and changes in environmental and remediation requirements; (8) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (9) availability of an adequate source of supply of scrap for our metals recycling operations; (10) cybersecurity threats and risks to the security of our sensitive data and information technology; (11) the implementation of our growth strategy; (12) our ability to retain, develop and attract key personnel; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) difficulties in the launch or production ramp-up of new products; (16) our aluminum operations depend on a core group of significant customers; (17) governmental agencies may refuse to grant or renew some of our licenses and permits; (18) our existing debt agreements contain, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (19) the impacts of impairment charges.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."

SOURCE Steel Dynamics, Inc.