Morgan Stanley (NYSE:MS | MS Price Prediction) and JPMorgan Chase (NYSE:JPM) both posted Q1 2026 results that showcased strength, yet the businesses behind those numbers look nothing alike. Morgan Stanley leaned on advisory fees and wealth flows. JPMorgan flexed a universal-bank engine touching cards, payments, and trading. Each firm’s core revenue engine now sits in a distinctly different part of finance.
Fee Flywheel at Morgan Stanley, Everything Machine at JPMorgan Ted Pick called it “a record quarter”, and the composition matters. Wealth Management pulled in $8.52 billion with $118.4 billion in net new assets and $54 billion of fee-based flows. That is recurring, sticky revenue. Institutional Securities added $10.72 billion, with Advisory alone up 74%. Investment Management slipped 4% on $11.6 billion of equity outflows, a reminder the fee model still has soft spots.
JPMorgan showed scale that Morgan Stanley cannot match. The Commercial & Investment Bank generated $23.38 billion, Markets hit a record $11.6 billion, and Card Services & Auto climbed 13% to $7.76 billion. Consumer credit is a real engine here, and it cuts both ways. The Card net charge-off rate ran at 3.46%, and nonperforming exposure rose 11% to $11.0 billion.
Capital-Light Advisor vs. Cyclical Credit Colossus Lens Morgan Stanley JPMorgan Core Bet Wealth & advisory fees Universal bank scale Q1 Revenue $20.58B $49.84B EPS $3.43 $5.94 Client Assets $7.34T $7.1T Trailing P/E 19 16 Morgan Stanley converts trillions in assets under management directly into predictable, high-margin advisory fee revenue. That shows up as a 27.1% ROTCE and an efficiency ratio compressed to 65%. JPMorgan holds #1 Global IB fees at 9.8% wallet share, but noninterest expense grew 14%, outpacing revenue.
The Next Test Is Credit Normalization and Wealth Flows I will be watching whether Morgan Stanley can push toward its $10 trillion client-asset target while fixing the Investment Management outflows. Polymarket traders currently price a 51% chance MS Q2 IB revenue clears $2.125 billion, which is a real test of momentum. For JPMorgan, credit is the story. Card charge-offs and that rising nonperforming exposure will tell us whether Dimon’s “resilient” consumer holds through year-end.
The Case for Morgan Stanley’s Fee Durability If I want cash-flow durability through a messy macro, I lean toward Morgan Stanley. The wealth engine keeps compounding whether markets chop or trend, and shares are already up 51.97% over the past year for a reason. JPMorgan fits a different investor, one who wants scale, a $1.50 quarterly dividend, and comfort owning the credit cycle. At 16 times earnings, it is cheaper than Morgan Stanley at 19, and that discount exists precisely because the cyclical exposure is real. The setup that would narrow the gap is credit metrics stabilizing at JPMorgan and its expense growth cooling. Until then, Morgan Stanley’s fee flywheel is the more defensive profile of the two.
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Key Takeaways ServiceNow is seeing strong AI Control Tower demand as enterprises expand AI adoption and governance.NOW faces margin pressure and execution risk as it integrates multiple acquisitions across AI and security.NOW's premium valuation and Middle East deal delays warrant a cautious near-term outlook. ServiceNow (NOW - Free Report) is currently trading at a high price-to-earnings (P/E) multiple, above the Zacks Computers - IT Services industry. ServiceNow’s forward 12-month P/E ratio sits at 21.76X, higher than the industry’s forward 12-month P/E ratio of 16.80X. The Zacks Value Score of D also suggests that NOW stock is overvalued.
The stock trades at a premium valuation to its peers as well, including Microsoft (MSFT - Free Report) , Salesforce (CRM - Free Report) and Oracle (ORCL - Free Report) . At present, Microsoft, Salesforce and Oracle have P/E multiples of 21.52X, 11.11X and 17.75X, respectively.
NOW Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
ServiceNow’s elevated valuation raises concerns about whether the stock can justify such lofty multiples. Considering the premium valuation, investors must be wondering whether they should buy, sell or hold the stock, especially amid near-term challenges.
NOW Faces Integration Risk From Multiple AcquisitionsServiceNow is integrating several acquisitions at the same time, including Moveworks, Armis, Veza and Pyramid Analytics. While these acquisitions add new AI, security and data capabilities, they also increase execution risk.
As a result of its back-to-back acquisitions, ServiceNow will need to integrate the acquired products, employees, technologies and sales teams into its existing business. As a result, the company will incur higher costs. These costs are expected to hurt the company's profitability before the benefits of synergies from acquisitions are fully realized.
For instance, the Armis acquisition is also expected to put pressure on profitability in 2026. Management expects Armis to reduce 2026 subscription gross margin by 25 basis points, operating margin by 75 basis points and free cash flow margin by 200 basis points. For the second quarter of 2026, Armis is expected to reduce its operating margin by 125 basis points.
Management expects efficiency gains to offset these pressures over time and eventually eliminate the margin impact. However, if customer adoption is slower than expected, the revenue contribution from these businesses could take longer to materialize.
Middle East Deal Delays Hurt NOW's ProspectsSeveral large sovereign cloud and on-premise deals in the Middle East were delayed during the first quarter of 2026 due to the ongoing regional conflict. Management stated these delays reduced first-quarter subscription revenue growth by approximately 75 basis points. These deals are recognized differently from recurring subscription contracts, so even a small number of delayed transactions can have a noticeable impact on quarterly revenue growth.
Although the delays were due to timing-related issues and not due to a change in underlying demand, the situation highlights that large government and sovereign cloud deals can be affected by geopolitical events. If geopolitical tensions continue, additional delays could affect the timing of future revenue recognition and result in significant volatility in the company's overall growth.
Key Technical Indicator Signals Bearish Trend for NOWServiceNow shares have dipped below their 200-day moving averages, a bearish technical signal that indicates the potential for continued downward pressure in the short term.
NOW 200-Day Simple Moving Average
Image Source: Zacks Investment Research
The above-mentioned factors seem to have weighed on investors’ sentiments, as reflected in the underperformance of NOW’s share price over the past 12 months.
NOW stock has plunged 49.6% over the past 12 months, underperforming the industry’s decline of 36%. The stock has outperformed its industry peers as well, such as Microsoft, Salesforce and Oracle. Over the past 12 months, shares of Microsoft, Salesforce and Oracle have plunged 22.9%, 40.2% and 39.8%, respectively.
12-Month Price Return Performance
Image Source: Zacks Investment Research
Despite the above-mentioned challenges, it’s not all doom and gloom for ServiceNow.
Strong Demand for AI Control Tower Boosts NOW's ProspectsServiceNow is seeing strong demand for AI Control Tower. Rising adoption of AI tools is creating the need for visibility into how these systems operate, what actions they take and whether they comply with company policies. This is where ServiceNow's AI Control Tower comes in to address the above-mentioned requirements and help customers monitor, manage and govern AI agents from a single platform.
Average AI Control Tower deal sizes more than doubled sequentially in the first quarter of 2026. Per management, customers view AI governance more as a requirement rather than an optional feature. Further, as AI agents become more capable and are used across more business functions, they need a platform that can monitor and govern these systems, which should help drive demand for AI Control Tower.
ServiceNow believes its large workflow platform gives AI Control Tower a significant advantage. Management stated that its systems have been trained on more than 95 billion workflows and over seven trillion transactions. Through its Context Engine, AI Control Tower can use information from existing workflows, approvals and business rules to help customers manage AI-driven actions. This allows organizations to manage AI-driven actions using existing business controls and governance frameworks.
Rising adoption of ServiceNow's AI products is boosting the demand for AI Control Tower. For instance, Now Assist is helping generate interest in AI Control Tower as customers expand AI deployments across their organizations. Further, with rising AI adoption, governance becomes more important, and this positions AI Control Tower to become a meaningful contributor to ServiceNow's future growth.
The Zacks Consensus Estimate for ServiceNow's 2026 and 2027 revenues indicates year-over-year growth of 21.9% and 18.1%, respectively.
Image Source: Zacks Investment Research
Conclusion: Hold NOW Stock Right NowServiceNow continues to benefit from strong demand for AI governance as more companies deploy AI agents across their operations. Larger deal sizes for AI Control Tower reflect growing adoption of NOW’s workflow platform. NOW’s large workflow platform and Context Engine give it an advantage as customers deploy more AI agents and provide a favorable long-term growth opportunity for the company.
However, ServiceNow faces several near-term risks, such as geopolitical headwind in the Middle East and dilutive impact on margins as a result of its back-to-back acquisitions, which could hurt NOW’s prospects in the near term. Further, the company’s premium valuation warrants a cautious approach to the stock.
Currently, ServiceNow carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Intuit (INTU - Free Report) Headquartered in Mountain View, CA, Intuit Inc. is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The company has offices in the United States, Canada, India and the U.K.
INTU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. INTU has a Growth Style Score of A, forecasting year-over-year earnings growth of 18.4% for the current fiscal year.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.65 to $23.86 per share. INTU boasts an average earnings surprise of +6.9%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, INTU should be on investors' short list.
Dom Rizzo runs T. Rowe Price’s Global Technology Fund, and the numbers he brings to the table force even skeptics to sit up. His fund has compounded at more than 40% a year over the past three and a half years, beating its benchmark by more than 500 basis points, largely on a fat overweight in semiconductors. On CNBC this week, he made a simple claim. Even after the run, the chips are still where you want to be.
The dispersion trade nobody wants to talk about Rizzo’s opening frame is a widening gap inside tech itself. “We’ve seen semiconductors up 100% and software down roughly 14%,” he said, and the tape backs him up. Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) is up 142% year to date, Intel (NASDAQ:INTC) has run 222%, and Micron has done 227%. His fund is heavy in CPUs, owning both AMD and Intel, so this is not an academic observation for him.
The dispersion matters because most retail portfolios are still calibrated to a 2023 world where software ate everything. Rizzo’s argument is that the compute layer flipped from commodity to bottleneck, and the market has repriced accordingly. When the fund manager beating the tape by 500 basis points a year tells you sector selection inside tech is driving returns, you listen.
A hardware cycle rolling into 2027 “I think we’re going to see a major, major hardware cycle heading into next year,” Rizzo said, referencing meetings with more than 20 tech companies at a recent West Coast summit. His read on spend was uniform across memory, CPU, optics, routers, and networking switches. The infrastructure demand, in his words, “almost doesn’t really matter where you look.”
Recent results support the cycle. NVIDIA (NASDAQ:NVDA) posted $1.87 in non-GAAP EPS on $81.61 billion of revenue for its April quarter, with data center up 92% and networking up 199%, per the company’s Q1 FY27 filing.
Broadcom (NASDAQ:AVGO) guided next-quarter AI semiconductor revenue to $16 billion, up more than 200% year over year. Micron’s fiscal Q3 revenue landed at $41.46 billion, up 345.7% year over year, with gross margins expanding to 84.6%. Those are cycle-peak numbers being posted as guidance keeps stepping higher.
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Rizzo thinks the Street is still low. He expects roughly 75% capex growth from the big five hyperscalers next year and would not be surprised by north of 80%. The unlock, he argues, is agentic coding and reasoning workloads, which are far more CPU and memory intensive than the training-heavy phase everyone got used to. His proof point is Anthropic, which went from roughly $5 billion in run-rate revenue last summer to close to $50 billion. If that curve is directionally right, the DRAM math alone is difficult to argue with.
The valuation argument that keeps him long Rizzo’s valuation math cuts against the run-up narrative. “I look at NVIDIA just 14 times earnings here as we head into the Vera Rubin cycle… I still think semis are the place to be even after this big run.” NVIDIA trades at a forward P/E of 23 on today’s numbers, but Rizzo is looking through to Rubin-era earnings power. He also flagged SK Hynix at just 4 times earnings, which frames how the memory complex is priced in Asia versus the enthusiasm around Micron.
The foundry underneath all of this remains Taiwan Semiconductor, where CEO C.C. Wei has guided full-year revenue growth above 30% and where 3nm now accounts for more than half of wafer revenue. That is the physical substrate Rizzo’s thesis rests on.
What to watch next The near-term risk is optical. Chips sold off Tuesday, with AMD down 5.7%, Micron down 9.74%, and Taiwan Semi down 6.8%, a session that shakes conviction. Rizzo’s frame gives you a way to think through it. If hyperscaler capex compounds at 75% again next year, the multiples on this group are lower a year from now even if the stocks stand still. That is the trade he is making, and his track record earns the benefit of the doubt.
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The first half of 2026 handed investors a split-screen market. The Dow rose roughly 8% in the first half of 2026, while the Nasdaq-100 gained about 26% in Q2, powered almost entirely by the AI infrastructure trade. The question now is which names have the fundamental firepower to keep compounding into the back half. Growth rates north of 40%, AI revenue lines doubling year over year, and management teams raising guidance are the filter. Three stocks clear that bar with room to spare.
Below is the countdown of the top three AI stocks positioned to keep running, ranked by AI momentum, guidance trajectory, and scale.
#3. Palantir Palantir (NASDAQ:PLTR | PLTR Price Prediction) has the growth profile of a company at least twice its size. In Q1 2026, revenue jumped 85% year over year to $1.63 billion, U.S. commercial revenue surged 133% to $595 million, and adjusted EPS of $0.33 beat consensus by 18% for the eighth consecutive quarter. CEO Alex Karp raised full-year guidance to 71% growth, 10 points ahead of the prior guide, and touted a Rule of 40 score of 145%.
The bull case rests on that Rule of 40 print. Karp said “Palantir’s Rule of 40 score has soared to 145%. We have shattered the metric… we grew 85% last quarter, our highest-ever year-over-year growth rate, by more than doubling our U.S. business.” AIP adoption is compounding, and U.S. commercial remaining deal value hit $4.92 billion, up 112% year over year.
The caveat is valuation. Shares carry a trailing P/E near 131 and a forward P/E of 80, and the stock is down about 29% year to date through July 1, a reset that must hold if fundamentals catch up to the multiple.
#2. AMD Advanced Micro Devices (NASDAQ:AMD) is the momentum leader. Shares are up roughly 153% year to date through July 1, backed by strong fundamentals. Q1 2026 revenue reached $10.25 billion, up 38% year over year, with Data Center growing 57% to $5.78 billion. Adjusted EPS of $1.37 beat by nearly 6%, and free cash flow exploded 253% to $2.57 billion.
Q2 guidance calls for roughly $11.2 billion in revenue, implying about 46% growth, alongside gross margin widening to around 56%. Lisa Su said “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.” Signed deployments include up to 6 gigawatts of Instinct GPUs with Meta and a similar-scale OpenAI commitment.
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The risk is valuation. AMD trades at a trailing P/E of 182 and forward P/E of 77, with a beta of 2.49. Any MI450 ramp delays would sting.
#1. Broadcom Broadcom (NASDAQ:AVGO) tops the list because scale plus acceleration is rare at a $1.75 trillion market cap. Q2 FY2026 revenue hit $22.19 billion, up 48% year over year, with AI semiconductor revenue reaching $10.80 billion, up 143%. Operating income jumped 85% to $10.79 billion, free cash flow rose 60% to $10.26 billion, and adjusted EBITDA margin sat at 69% of revenue.
The forward number is the kicker. Broadcom guided Q3 total revenue to roughly $29.4 billion, up 84%, with AI semiconductor revenue projected to grow over 200% year over year to $16.0 billion. CEO Hock Tan said “The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion.” Management’s stated ambition is to exceed $100 billion in AI sales by 2027. Wall Street is aligned, with 44 buy ratings versus 4 holds and no sells, and an analyst target of $523.73.
The caveat: Broadcom is up only about 7% year to date through July 1, and shares fell roughly 20% over the past month, a reminder that even the cleanest AI story faces profit-taking. Seventy-one recent insider transactions skew net selling, worth watching alongside the Q3 earnings report.
Why the Rally Has Room H1 2026’s 8% Dow and 26% Nasdaq-100 Q2 gain were just the opening leg of a longer trade. Palantir’s 85% growth and raised guide, AMD’s 46% Q2 revenue outlook and MI450 pipeline, and Broadcom’s $16 billion AI quarter all point in the same direction: second-half AI numbers are getting bigger. Broadcom lands at #1 because it is delivering triple-digit AI growth at trillion-dollar scale, a combination that historically re-rates rather than fades. Keep an eye on the Q3 earnings report in early September for confirmation.
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Key Takeaways General Dynamics is expanding its submarine role through Electric Boat's U.S. Navy work.Electric Boat builds Virginia-class submarines and leads the Columbia-class replacement program.GD benefits from rising undersea warfare demand, naval modernization and a strong backlog. General Dynamics (GD - Free Report) continues to strengthen its position in the global submarine market through its Electric Boat business, one of the leading designers, builders and sustainment providers of nuclear-powered submarines for the U.S. Navy. The business plays a critical role in supporting the Navy's undersea warfare capabilities by developing advanced submarine platforms equipped with enhanced stealth, survivability and mission effectiveness.
Electric Boat is responsible for the design, engineering and construction of the Virginia-class fast-attack submarines and serves as the prime contractor for the Columbia-class ballistic missile submarines, which are expected to replace the aging Ohio-class fleet and form the backbone of the United States' sea-based nuclear deterrent. The company also provides lifecycle support, modernization and engineering services to help ensure the long-term operational readiness of these strategic assets.
Growing geopolitical tensions, increasing naval modernization efforts and rising investments in undersea warfare capabilities are driving strong demand for advanced submarines worldwide. Modern submarines are increasingly being equipped with improved stealth technologies, long-range strike capabilities, advanced sonar systems and unmanned underwater vehicle integration, making them a critical component of modern naval defense strategies.
General Dynamics is well-positioned to benefit from these long-term trends through its deep expertise in submarine design, engineering and production, supported by decades of experience and a strong backlog of naval programs. The company's continued investments in advanced manufacturing, digital engineering and workforce expansion further reinforce its ability to support future submarine demand.
Submarine Stocks to Keep on the RadarOther aerospace and defense companies strengthening their presence in the submarine market are discussed below:
Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is a key builder of the U.S. Navy's Virginia-class attack submarines and Columbia-class ballistic missile submarines. The company also provides maintenance, modernization and lifecycle sustainment services that support fleet readiness.
BAE Systems (BAESY - Free Report) : The company is a leading participant in the United Kingdom's submarine programs and is the prime contractor for the Royal Navy's Astute-class nuclear-powered attack submarines. It also contributes to the next-generation Dreadnought-class ballistic missile submarine program.
The Zacks Rundown for GDShares of GD have risen 23.5% in the past year compared with the industry’s 8.3% growth.
Image Source: Zacks Investment Research
The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.75X compared with its industry’s average of 2.66X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.
General Dynamics (NYSE:GD | GD Price Prediction) and Lockheed Martin (NYSE:LMT) reported Q1 2026 results pulling the two defense giants in opposite directions. General Dynamics beat on submarines and Gulfstream jets. Lockheed leaned on a record backlog to explain a messy quarter marked by fresh program charges and a cash flow reversal.
Submarines Carry GD. Program Charges Weigh On Lockheed. General Dynamics posted EPS of $4.10 on revenue of $13.48 billion, with Marine Systems growing 21.0% and operating earnings there up 26.4%. Gulfstream delivered 38 aircraft versus 36 a year earlier, and Aerospace orders jumped 63%. CEO Phebe Novakovic said the businesses delivered “strong operating results and excellent cash conversion.” Operating cash flow hit $2.155 billion, a swing from negative territory a year ago.
Lockheed told a different story. EPS of $6.44 missed consensus of $6.70, revenue rose just 0.3%, and free cash flow went negative $291 million. A $125 million unfavorable F-16 adjustment plus hits on C-130, CH-53K, and Seahawk compressed segment margins to 10.1% from 11.6%. That is the second painful quarter in a year, following $1.6 billion in charges in Q2 2025.
A Deep Marine Moat Versus a Concentrated Fighter Bet General Dynamics compounds a two-submarines-per-year cadence with commercial jets and defense IT, giving it a diversified earnings base tied to both long-term government and commercial demand. Total estimated contract value climbed to $188.44 billion, and consolidated book-to-bill ran 2-to-1.
Lockheed’s backlog is bigger at $194 billion, but heavier in fixed-price aeronautics work where losses keep resurfacing. New framework agreements for Patriot, THAAD, and PrSM should eventually lift production rates 3-4x, according to Jim Taiclet, yet near-term earnings look wobbly.
Lens GD LMT Core Bet Nuclear submarines + Gulfstream F-35 and missile framework deals Q1 Free Cash Flow $1.952B -$291M Forward P/E 21x 17x The Next Test Is Execution Watch whether Lockheed closes F-16 issues and stabilizes CH-53K without another reach-forward loss. Guidance calling for $6.5B to $6.8B in 2026 free cash flow assumes a sharp back-half recovery. For General Dynamics, signals are Gulfstream deliveries, further Virginia-class submarine funding tied to the FY2027 shipbuilding budget of $65.8 billion, and whether Technologies margins can stop drifting from 9.5%.
Why I Lean Toward General Dynamics on This Earnings Report General Dynamics looks like the cleaner defense holding. Cash conversion at 192% of net earnings, four straight EPS beats, and a submarine franchise with visible funding give it real downside protection. Lockheed’s $194B backlog and geopolitical tailwinds could reward patient turnaround investors, and Jefferies’ $400 target on GD shows the Street is warming up. For a defensive compounder profile, General Dynamics screens cleaner. For investors focused on fixed-price program noise in a rerating story, Lockheed still has a case.
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For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cummins (CMI - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Cummins is one of 104 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cummins is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CMI's full-year earnings has moved 12.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CMI has returned 33.7% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -5.5% on a year-to-date basis. As we can see, Cummins is performing better than its sector in the calendar year.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Commercial Vehicle Group (CVGI - Free Report) . The stock has returned 236.8% year-to-date.
In Commercial Vehicle Group's case, the consensus EPS estimate for the current year increased 51.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual stocks and currently sits at #1 in the Zacks Industry Rank. This group has gained an average of 32.4% so far this year, so CMI is performing better in this area.
Commercial Vehicle Group, however, belongs to the Automotive - Original Equipment industry. Currently, this 52-stock industry is ranked #171. The industry has moved +4.7% so far this year.
Investors with an interest in Auto-Tires-Trucks stocks should continue to track Cummins and Commercial Vehicle Group. These stocks will be looking to continue their solid performance.
All financial figures are in Canadian dollars unless otherwise noted. This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles ("GAAP"), including annual run rate adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"). For more information see "Non-GAAP and Other Financial Measures" herein.
CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA), Morgan Stanley Infrastructure Partners ("MSIP"), and Kineticor Asset Management ("Kineticor"), partners in the Greenlight Electricity Centre Limited Partnership ("Greenlight") (collectively, the "Partners"), today announced a positive final investment decision on the Greenlight Electricity Centre ("GLEC" or the "Project"). GLEC is a 932 megawatt ("MW") gas-fired combined cycle power generation facility to be located in Sturgeon County, within the Alberta Industrial Heartland, to serve a major data centre development (the "Customer").
Rapid growth in artificial intelligence (AI) and cloud computing is driving durable global demand for data centre capacity and Alberta has positioned itself as an attractive jurisdiction for significant investment. Data centre projects require long-term, reliable power, and natural gas-to-power infrastructure has an important role to play in the success of this growing industry. Pembina and Kineticor have been instrumental in enabling development of the Customer's data centre project, a first of its kind in Canada. The Partners are first movers in responding to Alberta's large-scale data centre power needs and are proud to serve as the Customer's long-term, behind-the-meter power provider.
Highlights
Strategic Fit – The Project fits squarely within Pembina's 3C's Strategy to Capture volumes, Connect them to markets, and Catalyze new demand platforms. Extending its track record of value creation from adjacent new businesses, Pembina will benefit directly from its investment in GLEC through a new long-term, stable cash flow stream, and increased business and customer diversification. Additionally, GLEC will Catalyze intra-basin natural gas demand and provide a valuable new egress option to support Canadian natural gas production growth. This growth is expected to benefit Pembina's existing businesses, including natural gas processing and transportation, and natural gas liquids ("NGL") transportation, fractionation and marketing. Long-term Commercial Support – Consistent with Pembina's fee-based midstream model, GLEC will supply electricity to the Customer's data centre under a long-term tolling agreement. The agreement is a tolling arrangement providing revenues in the form of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs). The anticipated in-service date for the Project is the second half of 2030. Strong Project Economics – Greenlight has obtained a Class III level capital cost estimate of approximately $4 billion, or approximately $2 billion net to Pembina. Approximately 85 percent of this cost has been secured under fixed price agreements. The total Project cost, including $0.6 billion (gross) of interest during construction and other financing costs is expected to be approximately $4.6 billion, or approximately $2.3 billion, net to Pembina. Inclusive of the proceeds of $190 million, net to Pembina, from the sale of land to the Customer, Pembina's total net investment in GLEC will be approximately $2.1 billion. The Project is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. Growth Platform – GLEC will provide a meaningful contribution to Pembina's growth in 2030 and beyond, including its recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030. Further, Pembina believes this to be a highly scalable new business line. Pembina and its partners are advancing potential additional power-to-data centre projects, including a second phase of the generation Project, as well as other opportunities that could contribute significantly to Pembina's long-term growth. Greenlight Ownership – Greenlight is owned by Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent). "This is a tremendously exciting development within Pembina's growing and increasingly diversified business. Together with Kineticor, we have leveraged our advantaged position within the Canadian midstream energy industry and are proud to be the first mover in responding to the power requirements of Alberta-based data centres, all within Pembina's proven midstream model. Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform, through which we are also helping to catalyze new natural gas demand that will provide additional benefits throughout our business." – Scott Burrows, President and Chief Executive Officer, Pembina
"The GLEC represents a significant investment in Alberta's future and a major step forward in establishing a dynamic new industry. Alberta's strong regulatory framework combined with the Province's commitment to the sustainable growth of the data centre industry has created the conditions necessary to advance this project to a positive final investment decision. We remain committed to developing sustainable infrastructure projects across Alberta that deliver affordable and reliable power while supporting long-term economic growth." – Andrew Plaunt, Chief Executive Officer, Kineticor
"Reliable, dispatchable power is the foundation of the AI and cloud economy and Greenlight will deliver it at scale to one of Canada's most important new data centre developments. We are proud to partner with Pembina and Kineticor to begin construction on this landmark project and look forward to expanding the partnership to support future growth in Alberta." – Chris Ortega, Head of the Americas for MSIP
"Alberta natural gas is powering the digital economy forward with this significant investment in electricity generation. This announcement reflects the positive momentum created by the province's memorandum of understanding with the federal government last fall, including the abeyance of the federal government's Clean Electricity Regulations. Investments like this will lead to thousands of jobs, significant economic growth, and hundreds of millions in provincial revenue that can be reinvested to support the services that matter most to Albertans." – Premier Danielle Smith
"Greenlight is a great addition to our Industrial Heartland and we welcome the opportunities it brings with its development. By building new power generation, this project helps create the reliable energy supply needed to enable future industrial growth, attract investment, and strengthen our region's competitiveness without increasing demand on Alberta's electricity grid. We congratulate Greenlight and its partners on moving forward with this project and the role it plays in supporting Alberta's energy future." – Sturgeon County Mayor Alanna Hnatiw
Greenlight Electricity Centre Overview
The Project will consist of a 932 MW combined cycle gas power plant that will supply power on a dedicated basis to the Customer's data centre. The site has the potential to be expanded to a permitted generation capacity of 1,864 MW.
GLEC will utilize two highly efficient SGT6-8000H gas turbines, two SST6-5000 "KN" Steam Turbines coupled with two SGen6-3000W Generators - all from Siemens Energy. Combining gas and steam power production in this configuration increases energy efficiency compared to traditional simple cycle gas turbine generators. Greenlight has ensured delivery timing and cost certainty through a fixed price agreement with Siemens Energy Inc. as well as a long-term service agreement with Siemens Energy Canada Limited.
GLEC will require approximately 150 million cubic feet per day of natural gas. Through recent open seasons on Pembina's Alliance Heartland Expansion Project and the TC Energy Nova Gas Transmission Ltd. systems, and other commercial arrangements, Greenlight has secured sufficient natural gas transportation capacity on a long-term basis to support the Project. Greenlight's natural gas contracting strategy provides redundancy and operational flexibility.
Greenlight has leveraged the combined experience, strong relationships, and contracting expertise of Pembina and Kineticor to support development of the Project. Kineticor led the origination and development of GLEC as part of a fully integrated offering to the Customer and will be responsible for the ongoing development of future expansion opportunities. Pembina will lead the GLEC construction management workstream, leveraging its track record of building infrastructure on time and on budget. Following construction, GLEC will be operated by a third-party contract operator under a long-term services agreement.
The Project has received all major regulatory approvals and has an anticipated in-service date in the second half of 2030.
Commercial Structure
Greenlight and the Customer have entered into a long-term Electrical Energy Supply Agreement ("EESA") under which Greenlight will provide 932 MW of capacity from GLEC to power the Customer's data centre. The EESA is structured as a tolling agreement, supporting a stable stream of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs).
GLEC's commercial structure aligns with Pembina's fee-based midstream model and will strengthen the Company's business profile by generating additional low-risk cash flows and diversifying its customer base with a new, global, investment grade counterparty.
Project Economics and Funding
Greenlight has entered into fixed price agreements with a consortium of Aecon Group Inc. (TSX: ARE) and Técnicas Reunidas for the engineering, procurement, and construction ("EPC") of GLEC. Together with the fixed price agreement for the purchase of turbines from Siemens, approximately 85 percent of the Project's cost has been de-risked.
Once operational, GLEC is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. The Project's economics reflect a prudent risk profile, including a long-term commercial agreement, lump sum EPC agreement, and certain cost protections. Separate from GLEC, Pembina may benefit from additional economics related to gas processing and transportation, liquids transportation, and fractionation.
Greenlight has arranged asset-level debt financing for approximately 60 percent of the Project's cost with the remaining 40 percent to be financed through equity contributions. Pembina's net investment of approximately $2.3 billion represents a requirement whereby each of Pembina and MSIP will fund 50 percent of Greenlight's capital. Pembina's contribution will be financed through a combination of project debt and approximately $1 billion of equity contributions. Capital spending in 2026-2027 will be funded with asset-level debt financing, while capital spending in 2028-2030 will be funded with partner equity contributions.
Integration and Expansion Opportunities
Pembina's advantages include its fully integrated wellhead-to-market infrastructure and ability to service customers across the full hydrocarbon value chain. Through GLEC, Pembina is extending its business into an adjacent opportunity arising from its existing footprint, unique capabilities, and strong relationships.
In addition to the direct benefits of Pembina's investment in the Project, GLEC will create valuable new demand for Canadian natural gas, supporting production growth that is expected to benefit Pembina's existing gas processing and gas transportation businesses, including providing support for a regional expansion of the Canadian segment of the Alliance Pipeline.
Alliance Pipeline's binding open season for a new proposed short-haul point-to-point transportation service on the Canadian segment of its system concluded on April 20, 2026. The proposed Alliance Heartland Expansion Project would provide natural gas delivery to a new meter station in Fort Saskatchewan with an anticipated in-service date in the fourth quarter of 2029. Successful proponents have been awarded capacity conditional on the project being sanctioned. The Alliance Heartland Expansion Project continues to progress toward a final investment decision, with ongoing workstreams focused on engineering and regulatory activities, including the filing of applications with the Canada Energy Regulator, which is expected to occur in August 2026.
Further, growing natural gas production supports the associated growth of other products in the Western Canadian Sedimentary Basin, including condensate and NGL, providing additional benefits to Pembina from increased liquids transportation, fractionation and marketing services.
Future opportunities associated with GLEC include the potential to support development of the Alberta Carbon Grid and the transportation and sequestration of emissions from the Project.
GLEC is the first project within a scalable new platform. The Partners are aligned in their desire to build a midstream power business and aspire to repeat the success of GLEC with an expansion of the existing project and/or through the development of additional power plants for other data centre customers. A future expansion is expected to align well with the AESO's Phase 2 Large Load Allocation process and the Province of Alberta's 'bring your own power' data centre strategy.
Greenlight LP Ownership Update
MSIP has acquired from OPTrust, Kineticor's majority shareholder, its 50 percent ownership interest in Greenlight. In addition, upon FID, Kineticor was granted a five percent interest in Greenlight. The resulting ownership of Greenlight is Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent).
Greenlight's future capital expenditures will be funded equally between Pembina and MSIP.
"Pembina has enjoyed a strong relationship with OPTrust and Kineticor. Together we have supported development of a new data centre industry in Alberta and positioned Greenlight as a dedicated power provider with a scalable, high growth platform," said Scott Burrows, Pembina's President and CEO. "We look forward to working with MSIP given our complementary strengths and mutual desire to invest capital and generate attractive returns. MSIP is well funded and brings valuable expertise in global infrastructure development that will contribute meaningfully to our shared success."
Advisors
Blake, Cassels & Graydon LLP acted as legal counsel to Greenlight with respect to the commercial agreements and project financing.
Norton Rose LLP acted as counsel to Pembina on the joint venture formation and other commercial agreements.
Osler, Hoskin & Harcourt LLP acted as legal counsel with respect to the EPC agreements.
McCarthy Tetrault LLP acted as legal counsel to lenders.
MUFG Bank, Ltd. acted as financial advisor on the project financing.
Santander acted as exclusive M&A and financing advisor to MSIP on the transaction.
Macquarie Capital acted as exclusive financial advisor to OPTrust and Kineticor.
Kirkland & Ellis and Bennett Jones acted as legal counsel to MSIP.
Forward-Looking Information and Statements
This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance.
In particular, this news release contains forward-looking statements and financial outlooks pertaining to, without limitation, the following: Pembina's strategy and the development and expected timing of the Project and any expansion thereof, and the expected costs, financing, impacts, and benefits thereof and opportunities therefrom; expectations regarding the Alliance Heartland Expansion Project, including the expected timing, impacts and benefits thereof; expectations regarding existing and future commercial agreements, including the long-term tolling agreement, and the anticipated timing, product volumes, and benefits thereof; the successful completion of related third-party projects; statements regarding Pembina's financial and operational performance; expectations regarding the future performance of the Company's assets, including future pipeline, processing, transportation, fractionation and marketing operations; and expectations and targets regarding annual run rate adjusted EBITDA and fee-based adjusted EBITDA per share growth.
These forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release, including, among other things: oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; prevailing commodity prices (including long-term average historical pricing and frac spreads), interest rates, carbon prices, tax rates, exchange rates and inflation rates; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any required commercial agreements can be entered into and performed in the manner and on the terms expected by Pembina; that all required regulatory and environmental approvals can be obtained on acceptable terms and in a timely manner; that there are no supply chain disruptions impacting Greenlight's or Pembina's ability to obtain required equipment, materials or labour for the Project; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy).
Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: risks relating to the development, construction, financing and operation of the Project, including contractor and counterparty performance and the ability to complete the Project on the anticipated timeline, budget and economics; the regulatory environment and decisions, including the outcome of regulatory hearings, and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contractual counterparties; actions by governmental or regulatory authorities, including changes in laws and treatment, changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; geopolitical risks; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina's Annual Information Form and Management's Discussion and Analysis, each dated February 26, 2026 for the year ended December 31, 2025 and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.
This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking information and financial outlooks contained in this news release have been approved by management as of the date of this news release. The purpose of these financial outlooks is to assist readers in understanding Pembina's expected and targeted financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Non-GAAP and Other Financial Measures
Throughout this news release, Pembina has disclosed certain financial measures and ratios that are not specified, defined or determined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure specified, defined and determined in accordance with GAAP. These non-GAAP financial measures, together with financial measures specified, defined and determined in accordance with GAAP, are used by management to evaluate the performance and cash flows of Pembina and its businesses and to provide additional useful information respecting Pembina's financial performance and cash flows to investors and analysts.
In this news release, Pembina has disclosed the following non-GAAP financial measures: annual run rate adjusted EBITDA. The non-GAAP financial measures disclosed in this news release do not have any standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. Such financial measures should not, therefore, be considered in isolation or as a substitute for, or superior to, measures of Pembina's financial performance or cash flows specified, defined or determined in accordance with IFRS, including revenue, earnings and cash flow from operating activities.
Except as otherwise described herein, these non-GAAP financial measures are calculated on a consistent basis from period to period. Specific reconciling items may only be relevant in certain periods.
Adjusted EBITDA from Equity Accounted Investees
In accordance with IFRS, Pembina's joint ventures are accounted for using equity accounting. Under equity accounting, the assets and liabilities of the investment are presented net in a single line item in the Consolidated Statement of Financial Position, "Investments in Equity Accounted Investees". Earnings from investments in equity accounted investees are recognized in a single line item in the Consolidated Statement of Earnings and Comprehensive Income "Share of Profit from Equity Accounted Investees". The adjustments made to earnings, in adjusted EBITDA above, are also made to share of profit from investments in equity accounted investees. Cash contributions and distributions from investments in equity accounted investees represent Pembina's share paid and received in the period to and from the investments in equity accounted investees.
12 Months Ended December 31
Pipelines
Facilities
Marketing &
New Ventures
Total
($ millions)
2025
2024
2025
2024
2025
2024
2025
2024
Share of profit from equity accounted investees
1
42
134
231
74
55
209
328
Adjustments to share of profit (loss) from equity accounted investees:
Net finance costs (income)
1
7
113
175
(16)
(23)
98
159
Income tax expense
—
—
46
73
—
—
46
73
Depreciation and amortization
2
39
254
221
—
7
256
267
Unrealized loss on commodity-related derivative financial instruments
—
—
4
2
—
—
4
2
Gain on disposal of assets
—
—
(2)
—
(62)
—
(64)
—
Impairment expense
—
—
193
—
—
—
193
—
Other non-cash provisions
—
—
2
15
—
—
2
15
Total adjustments to share of profit (loss) from equity accounted investees
Ending the trading week early with Friday’s observance of Independence Day, we cram together the last two “Jobs Week” data points: Weekly Jobless Claims and monthly non-farm employment. Pre-market indexes advanced further into the green immediately following these releases: the Dow is +300 points, the S&P 500 +35 and the Nasdaq +240 points. The small-cap Russell 2000, outperforming all major indexes in the first half of 2026, is up +18 points currently.
Non-Farm Payrolls Gain Only Half Expectations: +57KToday’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) is out a day earlier than normal, coming in roughly half what analysts had been expecting: +57K, and well off the downwardly revised +129K for May, which itself fell from +172K originally reported (April was revised down from +179K a month ago to +148K in its final print). The Unemployment Rate dipped 10 basis points (bps) to +4.2%, the lowest in a year.
Before we dig too far into the details, let’s give some context to these shrinking jobs gains: this is the fourth-straight month of job growth from the BLS, which we haven’t seen since the spring of 2025. Before this positive string, we saw five of the previous nine months posting negative jobs numbers. In this way, the BLS figures are correlating with Wednesday’s private-sector payrolls from ADP ((ADP - Free Report) : perhaps weaker than recent trajectories had indicated, but positive jobs growth nevertheless.
Month over month Average Hourly Earnings were right in-line with expectations at +0.3%, where we also were a month ago and up 10 bps from March and April’s +0.2%. Year over year, Wages grew by +3.5%, also in-line, and up 10 bps month over month. We haven’t seen wage-growth figures notably adding to inflation levels since the last few months of last year — a positive for economists (like the Fed) who are looking closely at such things.
That said, Labor Force Participation disappointed at +61.5% — the weakest number since May of 2021, when these figures had been ramping up. This helps explain the dip in Unemployment, but not in a good way. A weakening participation rate is not a positive sign for what otherwise looks like a relatively healthy labor market. The U-6 rate, aka “real unemployment,” dips 20 bps month over month to +7.9%, the lowest since +7.7% reported a year ago.
By industry, Professional & Business Services led the way, somewhat surprisingly: +36K, followed by Social Assistance at +28K and Healthcare +22K. Manufacturing grew by only +3K and Construction was “little changed” — strange, considering that we’re busy with data center buildouts across the country. Leisure & Hospitality, once the leading force in domestic job creation, lost -61K for the month, including -55K in Food Services. This is remarkable in that many analysts had expected a boost to this industry based on the U.S. hosting the FIFA World Cup this summer at various locations around the country.
Perhaps we’ll need to see some revisions in the coming months to get a better idea of how summer jobs growth has transpired this year. The good news is we’re out of the trough we’d spent much of the last year in — all jobs numbers say so. But it appears the numbers aren’t quite so robust as they initially appeared.
Weekly Jobless Claims Narrow, Stay ConsistentOne of the steadiest series of labor data going back a year or more has been Weekly Jobless Claims, of which Initial Jobless Claims came in at +215K last week. This is down -5K from expectations, and a slight dip from the upwardly revised +216K the prior week. For the past year and a half or so, this is where we’ve averaged seeing new jobless claims, aside from a couple dips and jumps here and there.
Continuing Claims, posted a weeks in arrears from Initial Claims, reached 1.814 million, a smidge up from the downwardly revised 1.812 million for the previous week. Though we’re now above 1.8 million for the third-straight week, we remain well off the +1.9 million and higher we routinely saw every week last fall. Again, muted positive jobs data — but that’s a lot better than it might be.
What to Expect from the Market TodayFactory Orders for May come out after the opening bell and June Auto Sales will report throughout the course of the day today. We expect low trading volume based on the three-day weekend ahead of us. We’ll see if market gains in the early session sustain themselves ahead of the close, which is the regular 4pm ET this afternoon.
Federal Bureau of Investigation (FBI) director Kash Patel has disclosed holding shares of Strategy Inc. (NASDAQ: MSTR) 141 days after the Stock Act’s 45-day disclosure.
FBI Director Patel purchased MSTR stock on November 21, 2025, according to an amended Periodic Transaction Report (OGE Form 278-T) signed on May 26, 2026, and analyzed by Finbold on July 2. However, he was supposed to file the purchase by January 5, 2026, in accordance with the law, but failed due to apparent miscommunication.
“On May 26, 2026, Director Patel notified my office that, due to a miscommunication, the transaction was inadvertently omitted from his original Periodic Transaction Report,” William N. Taylor II, Deputy Assistant Attorney General for Management and Compliance, noted.
The FBI Director invested between $100,001 and $250,000 in Strategy late last year, but disclosed the filing nearly five months later. Patel purchased MSTR stock, which is heavily invested in Bitcoin (BTC), but stated that he has no conflict of interest through the transaction. As such, the FBI director noted in the filing that he would divest from MSTR stock should any conflict of interest arise.
Why is MSTR stock dropping despite support from the FBI Director? Over the past year, MSTR stock has plunged by more than 74%, trading at around $102.49 at press time. As such, the company’s market capitalization hovered at about $45.5 billion.
MSTR stock 1-year chart. Source: Finbold The MSTR stock has been on a downward trend over the past year, despite support from the FBI Director and additional institutional investors, amid the multi-month crypto bear market. Notably, the value of Strategy’s Bitcoin holdings has declined by over $6 billion so far in 2026, as Finbold reported.
Nonetheless, Wall Street analysts, including Peter Christiansen from Citigroup Inc. (NYSE: C), believe MSTR stock could rebound over the coming months, as Finbold noted. As such, FBI Director Patel’s bet on Strategy, which was filled at about $170.5 per share, could soon break even and potentially generate profits.
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The Zacks Retail – Supermarkets industry faces persistent cost inflation, pricing pressure and cautious consumer spending. Rising labor, transportation, fuel and technology investments are weighing on margins, while value-focused shoppers are keeping the sector highly promotional. This limits pricing power and increases the need for stronger productivity gains, sharper cost controls and efficient execution.
However, the outlook is supported by expanding omnichannel capabilities, faster delivery models and higher-margin revenue streams such as retail media, memberships and data-driven advertising. Against this mixed backdrop, Walmart Inc. (WMT - Free Report) and The Kroger Co. (KR - Free Report) appear well-positioned due to their scale, digital investments and diversified growth platforms.
About the Industry The Zacks Retail – Supermarkets industry includes supermarket retailers that offer grocery, health and beauty aids, household chemicals, electronics, stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, entertainment products, home furnishings and more. Players in this industry operate through various formats such as supermarkets, multi-department stores, retail stores, discount stores, supercenters, hypermarkets and warehouse clubs. Food retail accounts for a chunk of their business. The industry has undergone a significant transformation over the years, with e-commerce playing a strong role. Given consumers’ rising preference for online shopping, industry participants have enhanced pickup and delivery services and are offering easy payment options.
Major Trends Shaping the Future of the Supermarket Industry Costs Weigh on Margins: The supermarket industry continues to face elevated structural costs despite ongoing productivity initiatives. Rising transportation expenses, fuel volatility, wage investments and supply-chain costs are increasing pressure on operating margins, while retailers must simultaneously invest in automation, artificial intelligence, digital capabilities and store modernization to remain competitive. These investments are becoming essential as customer expectations continue to rise across both physical and digital channels. Going forward, operators will need to generate substantial productivity gains and procurement savings to offset these higher expenses. Companies that struggle to improve efficiency or execute cost reduction programs may face increasing difficulty balancing customer value investments with long-term profitability.
Value Pressure Persists: Although inflation has moderated from recent peaks, consumers remain highly disciplined in their grocery spending, keeping affordability at the center of purchase decisions. Households continue comparing prices across multiple retailers, seeking promotions, trading into private labels and carefully managing discretionary purchases. This environment is prompting supermarket players to narrow price gaps, simplify promotional strategies and maintain aggressive value investments to defend customer traffic. While these actions support volume growth and market share, they also limit pricing flexibility and compress gross margins.
Omnichannel Grocery Gains Ground: The supermarket industry is moving beyond simply offering online grocery to creating fully integrated omnichannel ecosystems that combine stores, pickup and rapid delivery. Retailers are increasingly leveraging their store networks as fulfillment hubs, allowing them to improve delivery speed while lowering fulfillment costs. At the same time, investments in artificial intelligence, automation and predictive inventory management are making digital grocery operations more efficient and scalable. These capabilities are improving order accuracy, strengthening customer engagement and increasing shopping frequency across channels. As fulfillment economics continue to improve, omnichannel grocery is expected to evolve from a necessary service into a sustainable source of revenue growth, customer retention and long-term operating leverage for leading supermarket operators.
New Profit Pools Expand: Supermarket companies are expanding higher-margin businesses such as retail media, digital advertising, loyalty ecosystems, memberships, marketplace services and data monetization. These businesses capitalize on extensive first-party customer relationships while generating earnings that are less dependent on food pricing or promotional intensity. At the same time, richer customer data is enabling increasingly personalized promotions and supplier partnerships, strengthening customer loyalty and vendor engagement. As these platforms mature, supermarkets should benefit from a more diversified profit mix, improved earnings resilience and greater flexibility to reinvest in pricing, technology and customer experience.
Zacks Industry Rank Indicates Dull Prospects The Zacks Retail – Supermarkets industry is housed within the broader Zacks Retail – Wholesale sector. The industry currently carries a Zacks Industry Rank #201, which places it in the bottom 18% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates drab near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the bottom 50% of the Zacks-ranked industries leads to a negative aggregate earnings outlook for the constituent companies. Since the beginning of February 2026, the industry’s consensus estimate for current financial-year earnings has decreased 2.6%.
Let’s look at the industry’s performance and current valuation.
Industry Versus Broader Market The Zacks Retail – Supermarkets industry has underperformed the S&P 500 while outpacing the broader Zacks Retail – Wholesale sector over the past year.
The industry has risen 13.6% over this period compared with the S&P 500’s growth of 23.9%. Meanwhile, the broader sector has climbed 0.5% in the said time frame.
One-Year Price Performance
Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing retail stocks, the industry is currently trading at 33.78X compared with the S&P 500’s 21.13X and the sector’s 22.59X.
Over the last five years, the industry has traded as high as 40.07X and as low as 17.5X, with the median being at 22.18X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
2 Supermarket Stocks to Keep a Close Eye On Walmart: The Zacks Rank #3 (Hold) company continues to strengthen its competitive position by combining its unmatched store network with rapidly expanding digital capabilities and AI-driven innovation. Walmart is successfully diversifying its earnings through higher-margin businesses such as advertising, marketplace services and memberships while improving customer engagement through faster fulfillment and personalized shopping experiences. WMT’s disciplined investments in automation, technology and omnichannel infrastructure reinforce both operational efficiency and long-term profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With multiple growth engines complementing its core retail business, Walmart appears well-positioned to sustain market share gains and deliver durable long-term growth. The Zacks Consensus Estimate for WMT’s current fiscal-year earnings per share (EPS) has remained unchanged at $2.89 in the past 30 days, with the consensus mark indicating growth of 9.5% from the prior-year period. Shares of this Bentonville, AR-based company have gained 10.6% over the past year.
Price and Consensus: WMT
The Kroger Co.: The Cincinnati, OH-based company is sharpening its competitive position through a renewed focus on operational excellence, customer value and digital transformation. Kroger continues to strengthen its fresh food leadership, private-label portfolio and e-commerce capabilities while expanding higher-margin businesses such as retail media. At the same time, disciplined cost management and productivity initiatives are creating greater flexibility to reinvest in pricing and customer experience.
Supported by a loyal customer base, strong data capabilities and a clear strategic roadmap, the Zacks Rank #3 company appears well-positioned to strengthen its competitive standing and drive sustainable long-term growth. The Zacks Consensus Estimate for KR’s current fiscal-year EPS has declined by 0.8% to $5.21 in the past 30 days, though the consensus mark suggests 7.4% growth from the year-ago period reported figure. Kroger shares have tumbled 19.5% over the past year.
Key Takeaways Kroger will acquire Giant Eagle for $1.65B, adding 197 supermarkets and 11 pharmacies.Kroger expects Giant Eagle's fresh foods, loyalty programs and pharmacies to complement digital strengths.KR plans an all-cash funding, keeps buybacks & dividend. EPS gains expected in second full-year after closing. The Kroger Co. (KR - Free Report) has agreed to acquire Giant Eagle for $1.65 billion, in a move that would significantly expand its presence across key Midwestern markets. The transaction includes $1.25 billion in cash and the assumption of roughly $400 million in liabilities. The deal is expected to close in 2027.
Giant Eagle brings a sizeable regional platform to Kroger, generating approximately $9 billion in annual sales through 197 supermarkets and 11 standalone pharmacies. Its operations span northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana, providing Kroger with access to attractive adjacent markets where Giant Eagle has built strong customer loyalty and brand recognition.
The acquisition aligns with Kroger's strategy of pursuing targeted opportunities that can create long-term value for customers, employees and shareholders. Giant Eagle's strengths in fresh foods, pharmacy services, private-label offerings and loyalty programs are expected to complement Kroger's expertise in e-commerce, personalization technology and data-driven merchandising.
Management believes the combination can accelerate growth across both in-store and digital channels while enhancing convenience and improving the overall shopping experience. The companies also intend to expand community-focused initiatives by extending Kroger's Zero Hunger Zero Waste program into new markets served by Giant Eagle.
Kroger plans to fund the purchase entirely with cash while maintaining its targeted leverage range of 2.3-2.5 times adjusted EBITDA. The company expects to preserve its dividend policy, continue its previously authorized $2 billion share repurchase program and retain flexibility to invest in core operations. The transaction is projected to contribute positively to adjusted earnings per share beginning in the second full year after closing, excluding integration-related expenses, although limited store divestitures are anticipated as part of the regulatory review process.
Kroger’s Price Performance, Valuation & EstimatesShares of Kroger have lost 17.8% over the past year against the industry’s13.9% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Kroger trades at a trailing price-to-sales ratio of 0.23X, down from the industry’s average of 1.21X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Kroger’s fiscal 2026 earnings implies a year-over-year growth of 7.4%, whereas the same for fiscal 2027 indicates an uptick of 6.5%. The estimates for fiscal 2026 and 2027 have been revised downward by 1 cent each, respectively, over the past seven days.
Image Source: Zacks Investment Research
Kroger currently carries a Zacks Rank #3 (Hold).
Key PicksWe have highlighted three better-ranked stocks, namely, Ross Stores Inc. (ROST - Free Report) , Dollar Tree Inc. (DLTR - Free Report) and Ollie's Bargain Outlet Holdings (OLLI - Free Report) .
Ross Stores operates as an off-price retailer of apparel and home accessories. The company flaunts 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 Ross Stores’ current fiscal-year earnings and sales suggests growth of 17.1% and 9.1%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
Dollar Tree is an operator of discount variety stores offering a broad assortment of everyday consumables and discretionary merchandise. DLTR currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year earnings and sales suggests growth of 21.4% and 6.5%, respectively, from the year-ago actuals. The company delivered a trailing four-quarter average earnings surprise of 32.1%.
Ollie's Bargain is a value retailer of brand-name merchandise at drastically reduced prices. OLLI also has a Zacks Rank of 2.
The Zacks Consensus Estimate for Ollie's Bargain’s current fiscal-year earnings and sales suggests growth of 17.1% and 12.7%, respectively, from the year-ago actuals. OLLI delivered a trailing four-quarter average earnings surprise of 4.9%.
Key Takeaways NIO delivered 40,597 vehicles in June, up 62.9% year over year, while Q2 deliveries rose 49.4%.NIO rolled out its WorldModel driving system to 700,000 users across third-party and in-house chips.NIO's ES9 hit 10,000 deliveries in 30 days, while the All-New ES8 topped 120,000 cumulative deliveries. NIO Inc. (NIO - Free Report) delivered 40,597 vehicles in June 2026, up 62.9% year over year. The total included 21,908 NIO-branded vehicles, 11,743 ONVO vehicles and 6,946 FIREFLY vehicles. For the second quarter, deliveries rose 49.4% from the prior-year period to 107,658 vehicles. As of June 30, 2026, the company's cumulative deliveries had reached 1,188,715 vehicles.
On June 18, 2026, NIO released the latest version of its WorldModel intelligent driving system to more than 700,000 users simultaneously. The update made NIO the first automaker to support synchronized development and deployment of intelligent driving software across both third-party and in-house chip platforms.
It also introduced an enhanced three-layer training architecture, combining a world model, supervised fine-tuning and closed-loop reinforcement learning, to improve performance in complex driving scenarios, deliver more human-like driving behavior and better balance safety and efficiency.
On June 22, 2026, cumulative deliveries of the All-New ES8 surpassed 120,000 units, underscoring its strong performance in China's premium vehicle segment priced above RMB 400,000. The All-New ES8 Five-Seat variant arrived in showrooms and entered presales on June 28, 2026, with the company expecting it to further strengthen the model's presence in the premium five-seat SUV market.
On June 26, 2026, the NIO ES9 reached 10,000 cumulative deliveries within 30 days of its launch on May 28, 2026, setting a new delivery record in China for premium battery electric vehicles priced above RMB 500,000.
NIO’s Zacks Rank & Other Key PicksNIO currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Cummins Inc. (CMI - Free Report) , China Yuchai International Limited (CYD - Free Report) and Douglas Dynamics, Inc. (PLOW - 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 CMI’s 2026 sales and earnings implies year-over-year growth of 10.6% and 23.3%, respectively. The EPS estimate for 2026 and 2027 has improved 35 cents and $1.04, respectively, over the past 30 days.
The Zacks Consensus Estimate for CYD’s 2026 sales and earnings implies year-over-year growth of 52.2% and 51%, respectively. The EPS estimate for 2026 has improved 15 cents over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
Shares of Tesla (NASDAQ:TSLA | TSLA Price Prediction) are down 7% in morning trading to $395.86, even after the electric vehicle (EV) maker posted a blowout Q2 2026 delivery report that easily cleared Wall Street expectations.
Key Takeaways Affirm will offer BNPL across Bed Bath & Beyond, Overstock and buybuy BABY for eligible shoppers.AFRM had about 515,000 active merchants as of March 31, 2026, up 43.8% year over year.AFRM's Q3 FY26 GMV rose 35% and total transactions increased 45% year over year. Affirm Holdings, Inc. (AFRM - Free Report) has entered a new partnership with Bed Bath & Beyond, making its buy now, pay later (BNPL) solution available to eligible shoppers across the retailer's brands, including Bed Bath & Beyond, Overstock and buybuy BABY. Customers can choose to pay for purchases in biweekly or monthly installments with no late or hidden fees, offering greater payment flexibility while shopping for home-related products.
The agreement expands Affirm's presence in the home retail market, where purchases often involve a higher ticket size than everyday discretionary spending. By giving consumers more payment choices at checkout, the company could attract new users and encourage higher transaction activity. The partnership also allows Affirm to reach shoppers during key life events, such as moving into a new home or preparing for a growing family.
The addition further strengthens AFRM's merchant portfolio. As of March 31, 2026, the company’s active merchants were around 515,000, up 43.8% year over year. Expanding relationships with well-known brands enhances the company's reach, increases consumer touchpoints and supports growth in gross merchandise volume (GMV). In the third quarter of fiscal 2026, GMV grew 35% year over year, while total transactions increased 45%, highlighting strong platform engagement.
As demand for flexible payment solutions continues to grow, adding established retailers can support broader platform adoption and higher payment volumes. The Bed Bath & Beyond partnership aligns with Affirm's strategy of expanding its merchant network and should strengthen its long-term growth opportunities in the evolving digital payments landscape.
How Are Competitors Faring?Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. (PYPL - Free Report) and Visa Inc. (V - Free Report) .
PayPal reported 439 million active accounts in the first quarter of 2026, which rose 1% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 11% year over year in the first quarter of 2026.
Visa’s processed transactions increased 9% year over year in the second quarter of fiscal 2026. Visa’s payment volume rose 9% year over year in the second quarter of fiscal 2026, along with 17% growth in net revenues.
Affirm’s Price Performance, Valuation & EstimatesOver the past year, AFRM’s shares gained 21.2% against the industry’s fall of 19.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6.66, above the industry average of 3.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 726.7% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 30.6% year-over-year growth.
Image Source: Zacks Investment Research
Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SLB (SLB - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this world's largest oilfield services company have returned -20.7%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Technology Services industry, which SLB falls in, has lost 4.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, SLB is expected to post earnings of $0.52 per share, indicating a change of -29.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.6 points to a change of -11.3% from the prior year. Over the last 30 days, this estimate has changed -0.7%.
For the next fiscal year, the consensus earnings estimate of $3.4 indicates a change of +30.7% from what SLB is expected to report a year ago. Over the past month, the estimate has changed -0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SLB.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For SLB, the consensus sales estimate for the current quarter of $8.71 billion indicates a year-over-year change of +2%. For the current and next fiscal years, $36.55 billion and $39.38 billion estimates indicate +2.4% and +7.7% changes, respectively.
Last Reported Results and Surprise HistorySLB reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of +2.7%. EPS of $0.52 for the same period compares with $0.72 a year ago.
Compared to the Zacks Consensus Estimate of $8.63 billion, the reported revenues represent a surprise of +1.09%. The EPS surprise was +1.96%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SLB is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SLB. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Cardinal Health (CAH - Free Report) Headquartered in Dublin, OH, Cardinal Health is one of the world’s largest healthcare services and products providers, operating across Pharmaceutical & Specialty Solutions, Global Medical Products & Distribution (GMPD), and Other growth businesses. The company serves nearly 90% of U.S. hospitals, delivers more than 43,000 pharmaceutical shipments daily, and manages a broad portfolio of medical, surgical, and laboratory products.The Pharmaceutical and Specialty Solutions segment distributes a wide range of pharmaceutical products, including branded and generic drugs, specialty pharmaceuticals, and consumer health products. This segment also provides biopharma solutions, offering data-driven insights, analytics, and commercialization support to pharmaceutical manufacturers. CAH delivers specialty drug distribution services in areas such as oncology, gastroenterology, and rheumatology. Its pharmacy management services cater to hospital and retail pharmacies, enhancing medication access and supply chain efficiency. The company also operates nuclear pharmacies, compounding radiopharmaceuticals used in diagnostic imaging and treatment. It currently has nearly 130 nuclear pharmacies and 30 PET cyclotron facilities.
CAH is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. CAH has a Momentum Style Score of B, and shares are up 21.4% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $10.76 per share. CAH boasts an average earnings surprise of +10.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CAH should be on investors' short list.
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-05128, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Lucid securities between February 25, 2026 and April 13, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Lucid securities during the Class Period, you have until July 28, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Lucid is a technology company that designs, develops, manufactures, and sells electric vehicles, EV powertrains, and battery systems. The Company's products include, inter alia, the "Lucid Air" sedan and "Lucid Gravity" sport utility vehicle.
At all relevant times, Defendants touted purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations. In particular, beginning in late-February 2026, Defendants represented that, in fiscal year ("FY") 2025, they had implemented sustainable improvements in these areas, including with respect to the production and ramp-up of deliveries of the Lucid Gravity. Defendants likewise asserted that these improvements would lead to profitable growth and performance efficiencies in FY 2026. Unbeknownst to investors, however, Lucid's performance was materially hampered by significant supplier and delivery issues in February 2026, putting the Company on track for dismal, rather than improved, performance in its first quarter ("Q1") of 2026.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (ii) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (iii) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The truth began to emerge on April 3, 2026, when Lucid issued a press release "announc[ing its Q1 2026] production and delivery totals[.]" Lucid revealed that it had "produced 5,500 vehicles" during Q1 2026, while only "deliver[ing] 3,093 vehicles." The press release further disclosed that, "[d]uring the quarter, deliveries of the Lucid Gravity were disrupted for 29 days due to a supplier quality issue with the second-row seats" and, "[a]s a result of this, the company's ability to meet customer demand was impacted."
The same day, Reuters published an article entitled "Lucid misses first-quarter vehicle delivery estimates on supplier disruptions". The article provided additional color and comments from Defendant Marc Winterhoff ("Winterhoff"), the Company's Interim Chief Executive Officer ("CEO"), regarding Lucid's disappointing Q1 2026 delivery results—most notably that deliveries were particularly impacted over a month earlier in February 2026, when Lucid paused to reverse an unauthorized supplier change and inspect vehicles already produced.
The next trading day, April 6, 2026, 24/7 Wall St. published an article entitled "Lucid Faces Biggest Disaster Ever", which described the number of vehicles that Lucid delivered in Q1 2026 as "remarkably small", stating that Lucid "cannot sell fewer than 4,000 vehicles and even pretend this is sustainable."
Following the foregoing news and disclosures, Lucid's stock price fell $1.13 per share, or 11.35%, over the following two trading sessions, to close at $8.83 per share on April 7, 2026.
On April 14, 2026, Lucid filed a current report on Form 8-K with the United States Securities and Exchange Commission ("U.S."), reporting, inter alia, its preliminary Q1 2026 financial results, including revenue in the range of $280 million to $284 million—well below the consensus estimate of $433.8 million—and losses from operations in the range of $985 million to $1.005 billion.
The same day, Lucid issued a press release revealing its plans for a $1.05 billion capital raise, including a $300 million public stock offering.
Following these disclosures, Lucid's stock price fell $0.44 per share, or 4.76%, to close at $8.80 per share on April 14, 2026.
Then, on May 5, 2026, Lucid issued a press release reporting its Q1 2026 financial results, including GAAP earnings per share of -$3.46, missing consensus estimates by $0.83, a net loss of over $1 billion, and revenue of $282.47 million, missing consensus estimates by $76.04 million. Defendant Winterhoff, as quoted in the press release, acknowledged that the previously disclosed "supplier issue . . . during the quarter had an impact," and the need to "align[] production and delivery with customer demand." Lucid's Chief Financial Officer, Defendant Taoufiq Boussaid, as quoted in the same press release, likewise acknowledged that "[w]e ended the quarter with elevated inventory that we expect to convert to revenue and cash as deliveries normalize[.]"
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, July 02, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lucid Group, Inc. (“Lucid” or “the Company”) (NASDAQ: LCID) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between February 25, 2026 and April 13, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before July 28, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Lucid’s deliveries were disrupted by a supplier quality issue. The Company suffered a material impact on its business results due to this quality issue. The Company overstated the strength of manufacturing capabilities. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Lucid, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
The new CEO of Lucid Motors is continuing to restructure the company after announcing hundreds of job cuts last month: The EV maker on Thursday said its chief financial officer, Taoufiq Boussaid, will be leaving the company.
Boussaid’s pending departure comes amid a flurry of new executive hires meant to bolster the company’s leadership as Lucid’s new CEO Silvio Napoli tries to “simplify the company.”
Lucid on Thursday said it has hired a new chief financial officer, chief technology officer, chief customer officer, chief digital officer, and chief transformation officer. Napoli is also cutting in half the number of people who directly report to him.
The company said this new leadership team will “come together at the company’s head offices and manufacturing hubs to foster closer collaboration,” and as a result, its senior vice presidents of revenue, marketing, and its vice president of program management “will be leaving Lucid to remain closer to their families and communities.”
All of these changes come just weeks after Napoli officially took over the top role. Lucid Motors spent more than a year trying to find a replacement for Peter Rawlinson, who abruptly resigned as CEO and CTO in February 2025. The Saudi-owned company has struggled to find the kinds of large markets for its electric sedan and SUV that it promised would exist when it went public in a 2021 reverse merger with a special purpose acquisition company.
When it announced layoffs last week, the company said it needed to align its “production plans with anticipated demand.” The company is eliminating a second shift at its factory in Arizona as well. The round of layoffs, its second major workforce reduction this year, is expected to save Lucid Motors about $158 million annually.
On Thursday, Lucid said it delivered 3,953 vehicles in the second quarter, only slightly higher than a year earlier — a sign that its Gravity SUV has not taken off like it had hoped. In contrast, other EV makers are finding ways to navigate the headwinds assailing the U.S. electric vehicle market right now. Rivian, for instance, increased its 2026 sales forecast earlier on Thursday.
Lucid Motors is on the verge of releasing a smaller SUV called Cosmos, which, at an expected price of around $50,000, could be its first mass-market hit. At the same time, Lucid is working with autonomous vehicle tech company Nuro and ride-hail giant Uber to create a luxury robotaxi service that is supposed to launch in San Francisco later this year, and potentially expand to Houston in 2027.
Lucid Motors has said the restructuring is meant to “simplify the company, sharpen execution, and position Lucid to become more competitive over time,” though it hasn’t said whether any of its plans will be affected.
“We are simplifying the organization, strengthening leadership, enforcing accountability and aligning our structure with the priorities that matter most: customers, quality, and innovation,” Napoli said in a statement on Thursday. “The caliber of leaders who are joining the Lucid leadership team is a testament to the inherent value of our business and to the exciting prospects ahead of us. We are building a new team who will transform the company.”
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Sean O’Kane is a reporter who has spent a decade covering the rapidly-evolving business and technology of the transportation industry, including Tesla and the many startups chasing Elon Musk. Most recently, he was a reporter at Bloomberg News where he helped break stories about some of the most notorious EV SPAC flops. He previously worked at The Verge, where he also covered consumer technology, hosted many short- and long-form videos, performed product and editorial photography, and once nearly passed out in a Red Bull Air Race plane.
You can contact or verify outreach from Sean by emailing [email protected] or via encrypted message at okane.01 on Signal.
New York, New York--(Newsfile Corp. - July 2, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Lucid Group, Inc. (NASDAQ: LCID) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Lucid securities between February 25, 2026 and April 13, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/LCID.
Lucid Case Details
The Complaint allegs that throughout the Class Period, Defendants failed to disclose that:
a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; accordingly, the defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and as a result, defendants' public statements were materially false and misleading at all relevant times.What's Next for Lucid Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/LCID, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Lucid you have until July 28, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Lucid Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Lucid Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300160
Source: Bronstein, Gewirtz & Grossman, LLC
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, /PRNewswire/ -- Glancy Prongay Wolke & Rotter LLP announces that investors with losses have opportunity to lead the securities fraud class action lawsuit against Lucid Group, Inc. ("Lucid" or the "Company") (NASDAQ: LCID).
IF YOU SUFFERED A LOSS ON YOUR LUCID INVESTMENTS, CLICK HERE BEFORE JULY 28, 2026 (LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT
What Is The Lawsuit About?
The complaint filed alleges that, between February 25, 2026 and April 13, 2026, Defendants failed to disclose to investors that: (1) a supplier quality issue had significantly disrupted deliveries of the Lucid Gravity; (2) the foregoing was likely to, and did, have a material negative impact on the Company's business and financial results; (3) accordingly, the Defendants had overstated the purported enhancements to Lucid's manufacturing and delivery capabilities and overall operations; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
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If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
NEW YORK, July 02, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against ZoomInfo Technologies Inc. (NASDAQ: GTM) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired ZoomInfo securities between November 3, 2025 and May 11, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/GTM.
ZoomInfo Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose:
(1) The true state of ZoomInfo's slowing seat-based demand, weakening upsell opportunities, and deteriorating fundamentals across its downmarket and upmarket segments.
(2) That Defendants' optimistic growth narrative, including representations that full-year 2026 revenue guidance of $1.247–$1.267 billion was achievable and that Copilot penetration was on or ahead of schedule.
(3) That customers were migrating toward consumption-based models and developing internal AI-driven go-to-market solutions, trends Defendants minimized despite their material adverse impact on ZoomInfo's business.
On May 11, 2026, ZoomInfo reported its first quarter 2026 results and slashed its full-year revenue guidance by approximately $62 million
Following this news, the price of ZoomInfo's common stock declined dramatically, from a closing market price of $6.04 per share on May 11, 2026, ZoomInfo's stock price fell to $4.06 per share on May 12, 2026, a decline of about 33%.
What's Next for ZoomInfo Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/GTM. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in ZoomInfo you have until August 24, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to ZoomInfo Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for ZoomInfo Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
Key Takeaways Upstart is entering a phase where loan growth, funding access and automation shape its next stage.AI drove 91% fully automated loans and supported about 3.5% more originations at equivalent risk.Auto and Home originations surged, but lower near-term take rates keep UPST's execution bar high. Upstart Holdings (UPST - Free Report) is entering a new phase in which loan growth, funding access and automation matter as much as headline revenues. The company still depends heavily on personal lending, but its platform is widening.
For investors, the question is whether larger lending categories can improve economics without adding balance sheet risk. That makes the next stage more about execution than simple market expansion.
How AI Is Expanding Across UpstartArtificial intelligence remains central to Upstart’s underwriting model, but the company is using it more broadly across operations. In first-quarter 2026, 91% of loans were fully automated with no human intervention by Upstart.
The technology is also being applied to servicing, collections, borrower conversations, payment features and quality assurance. Model accuracy improved by 1.4 points versus the benchmark, while expanded use of artificial intelligence to predict post-default recoveries supported about 3.5% more originations at equivalent risk.
Why Upstart Is Leaning Into Secured LendingUpstart is expanding beyond unsecured personal loans through Auto, Home and home equity line of credit products. Auto originations rose more than 300% year over year in first-quarter 2026, while Home originations increased about 250%.
These products open larger addressable markets and add servicing opportunities. More than one-fourth of Home loans were fully automated, and home equity line of credit time to close averaged six days from application to signing.
Why Capital-Light Models Matter for UPSTThe capital-light marketplace remains a key part of the UPST setup. In 2025, institutional investors purchased around 64% of loan principal, lending partners purchased 26% and Upstart held roughly 10% on its balance sheet.
Funding depth is central to scalability. The company has well more than half of funding supported by committed capital, added a 24-month forward-flow agreement in first-quarter 2026 and completed oversubscribed securitizations.
How Upstart’s Charter Could Change the SetupUpstart’s national bank charter application should be viewed as a regulatory and operational trend line rather than an immediate earnings event. The potential benefits include broader 50-state coverage, lower origination friction and faster technology and regulatory iteration.
The charter would not change the main funding strategy. Upstart still expects banks, credit unions and institutional investors to purchase the vast majority of platform loans, keeping the model focused on marketplace fees and servicing rather than balance sheet lending.
What Trend Investors Should Watch CloselyThe key tension is mix. Newer products and super-prime personal loans are scaling, but they carry lower near-term take rates. Contribution margin fell to 50% in first-quarter 2026 from 55% a year earlier and 53% in the prior quarter.
That does not erase the growth story, but it raises the bar for execution. Secured-product take rates may take 12 to 24 months or longer to mature, so investors need evidence that larger markets can produce better unit economics.
The Zacks Consensus Estimate for UPST’s sales suggests growth of 36.53% for 2026 and 30.61% for 2027.
Image Source: Zacks Investment Research
How UPST Scores Reflect This TransitionThe bottom line is that Upstart has meaningful exposure to trends shaping digital lending, but the investment case is still in transition. Affirm Holdings (AFRM - Free Report) brings a point-of-sale lending reference point to the same fintech credit debate.
SoFi Technologies (SOFI - Free Report) adds a broader consumer-finance platform comparison, especially for investors weighing scale, product breadth and funding structure. UPST currently carries a Zacks Rank #3 (Hold), which points to a more balanced near-term earnings-revision picture rather than a clear breakout signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are less supportive. UPST has a VGM Score of F, Value Score of D, Growth Score of F and Momentum Score of F. Since A and B scores are the most favorable, this weak style profile fits a stock with trend exposure but unsettled margin, valuation and momentum signals.
Key Takeaways Upstart's loan recovery depends on funding, automation and newer products beyond core personal loans.In 2025, institutional investors bought 64% of principal while Upstart held roughly 10% on balance sheet.Auto and Home growth widened UPST's market, but lower take rates and margin pressure remain risks. Upstart Holdings (UPST - Free Report) is again drawing attention as loan volumes recover and its lending marketplace leans further into third-party capital.
The key question is whether committed funding, high automation and newer products can turn the rebound into a steadier growth model beyond core personal loans.
How Upstart Makes Its Marketplace WorkUpstart operates a U.S.-only, cloud-based lending marketplace that uses proprietary artificial intelligence risk models to connect banks, credit unions, institutional investors, auto dealers and consumers.
Its reported segment is Personal Lending, covering unsecured personal and small-dollar loans. Revenues are primarily fee-based, including platform, referral, servicing and other fees.
Personal lending remains the core business. Unsecured personal loans are still the main profit engine, giving UPST the cash flow base to test and scale newer categories.
Why UPST Funding Matters So MuchFunding is central because the marketplace works best when third parties buy loans and Upstart earns fees without carrying heavy balance-sheet risk.
In 2025, institutional investors bought about 64% of principal, lending partners 26%, and Upstart held roughly 10% on its balance sheet.
Well more than half of funding is now supported by committed capital and co-investment arrangements. Recent forward-flow renewals and oversubscribed securitizations add depth to that base.
How Upstart Is Using AI to Improve LendingAutomation is a major part of the model. In the first quarter of 2026, 91% of loans were fully automated with no human intervention by Upstart.
Management has cited better model accuracy, higher conversion and about 3.5% more originations at equivalent risk after expanding artificial intelligence to predict post-default recoveries.
The use case is also widening beyond underwriting. Upstart is applying artificial intelligence across servicing, collections, borrower conversations, payment features and quality assurance.
Where Upstart Finds Its Next Growth EnginesThe next layer of growth is coming from Auto, Home, home equity lines of credit and Cash Line, an unsecured revolving credit product launched in 2026.
Auto originations rose more than 300% year over year in the first quarter of 2026, while Home originations increased about 250%. These products widen the addressable market.
The Zacks Consensus Estimate for UPST’s sales also suggests growth of 36.53% for 2026 and 30.61% for 2027.
Image Source: Zacks Investment Research
Still, the economics are not yet as mature as core personal loans. Average take rates in Auto and Home are expected to improve through 2026 as third-party funding rises.
Peers such as SoFi Technologies (SOFI - Free Report) and Affirm Holdings (AFRM - Free Report) offer useful context for investors comparing digital lending and consumer-finance platforms. UPST’s narrower AI marketplace model makes funding quality and loan sell-through especially important.
What Could Still Go Wrong for UpstartThe main risk is that growth may not flow cleanly into margins. Contribution margin fell to 50% in the first quarter of 2026 from 55% a year earlier and 53% in the prior quarter.
The decline reflected a mix shift toward secured products and super-prime personal loans with lower near-term take rates, along with seasonality and marketing investments.
Execution also matters. Better sell-through in Auto and Home is needed to reduce balance-sheet usage and strengthen take rates, while guidance assumes stable macro conditions.
How UPST Signals Read Right NowThe bottom line is that UPST has visible catalysts, but investors still need evidence that margin recovery and product execution can catch up with loan growth.
The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral near-term setup rather than a clear positive or negative earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are weaker. UPST has a Value Score of D, Growth Score of F, Momentum Score of F and VGM Score of F. Since A and B scores are the most favorable under the Zacks Style Scores framework, these grades argue for caution until the operating mix becomes more consistently profitable.
Key Takeaways Corning is benefiting from AI-driven demand, new Amazon and Meta agreements, and margin expansion.GLW introduced Gorilla Glass Ceramic 3 as semiconductor optics and premium glass demand stayed strong.GLW faces consumer electronics cyclicality, stronger competition and China-related trade uncertainty. Corning Incorporated (GLW - Free Report) has gained 318.5% in a year compared with the communications components industry’s growth of 394.3%. The stock has outperformed the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
It has outperformed its competitors, such as Coherent (COHR - Free Report) and Amphenol Corporation (APH - Free Report) . Coherent has surged 317.2%, while Amphenol has gained 74.8%.
GLW Rides on Strength in Multiple Segments, Margin ExpansionCorning is witnessing healthy traction in the Specialty Materials segment, backed by strong demand for premium smartphone cover glass. Despite some weakness, demand for premium Gorilla Glass products remains resilient. In the first quarter of 2026, the company introduced Gorilla Glass Ceramic 3. Leading smartphone manufacturer Motorola has already opted to deploy the solution in its premium smartphone.
The Semiconductor vertical is emerging as another major growth catalyst. Corning supplies advanced optical components used in semiconductor manufacturing equipment, particularly EUV lithography systems. AI expansion is driving demand for advanced chips. Semiconductor manufacturers are expanding production capacity to support the growing demand. This is driving demand for Corning’s leading-edge optics.
Corning recently inked a multi-year supply agreement with Amazon. Per the deal, the company is set to supply optical fiber, cable and connectivity solutions to support Amazon Web Services' growing network of AI data centers across the United States. Earlier this year, Corning secured a multi-year agreement with Meta to support the latter’s AI infrastructure expansion. These partnerships highlight the increasing demand for Corning's advanced optical technologies and its growing capability among hyperscalers.
Corning reported a 20.2% core operating margin in the first quarter of 2026, up 220 basis points from the year-ago quarter. Since the launch of the Springboard plan in the fourth quarter of 2023, Corning has expanded its core operating margin by 390 basis points. Core EPS was up 30% year over year, outpacing the 18% year over year revenue growth rate. Along with strong demand, productivity improvement across operations led to strong improvement in profitability.
Growing Competition and Cyclicality in Consumer Electronics Are WeaknessesCorning’s glass innovation segment continues to be affected by the cyclical nature of the consumer electronics market. Higher memory prices will likely impact smartphone demand during 2026. This may affect demand for the GLW premium Gorilla Glass products.
The substantial growth in the AI networking market is driving global fiber-optic manufacturers to expand their portfolio offerings. Growing competition from other major players, such as Amphenol and Coherent, is weighing on margins to some extent.
Corning maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff-related uncertainty. The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins.
Estimate Revision TrendEarnings estimates for Corning for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of GLWFrom a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 59.6 forward 12-month earnings, higher than 58.74 for the industry.
Image Source: Zacks Investment Research
End NoteMassive hyperscaler demand for fiber, cable and connectivity solutions is a major growth driver for Corning. Rising AI chip production increases demand for advanced optical materials. This is also a major revenue driver. Growing customer base and collaboration with industry leaders such as META and Amazon bode well for sustainable growth. Focus on improving productivity is driving profitability. However, volatility in the consumer electronics market, growing competition in the AI networking space are concerning. Heavy reliance on Chinese panel makers makes it vulnerable to growing trade uncertainty and geopolitical tensions between China and the United States. With a Zacks Rank #3 (Hold), Corning appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Corning (GLW - Free Report) New York-based Corning Incorporated started out as a glass business that was reincorporated in 1936. The company has since developed its glass technologies to produce advanced glass substrates that are used in a large number of applications across multiple markets. Corning reports results under five operating segments following changes to its reporting structure in the first quarter of 2026.
GLW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. GLW has a Momentum Style Score of A, and shares are up 9.9% over the past four weeks.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $3.19 per share. GLW boasts an average earnings surprise of +2.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GLW should be on investors' short list.
Micron Technology (MU 4.33%) delivered fantastic results for the third quarter of fiscal 2026 (which ended on May 28) on June 24. The memory specialist not just crushed Wall Street's expectations by a mile, but its guidance made it clear that the red-hot demand for memory chips isn't going away any time soon.
Micron stock jumped nearly 16% after its blowout quarterly report. The company's performance lifted other memory stocks as well, and Lam Research (LRCX 8.57%) was one of them. Lam Research supplies semiconductor manufacturing equipment to chipmakers, foundries, and memory manufacturers. Its shares jumped over 7% following Micron's results. Let's see why that was the case.
Image source: Getty Images.
Booming memory chip demand is boosting Micron Technology's capex Micron's fiscal Q3 revenue shot up by 346% year over year to $41.5 billion last quarter. However, its earnings per share grew by a whopping 1,215%. Micron management noted on the latest earnings call that demand for both dynamic random-access memory (DRAM) and NAND flash "continues to significantly exceed industry supply."
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What's more, management added that the tight supply conditions will persist beyond 2027, primarily due to AI-fueled demand from data centers, high-end personal computers (PCs), smartphones, vehicles, and robots. Also, Micron notes that demand for high-performance, high-value memory chips is increasing to support AI workloads, which is why the company is on track to significantly ramp up the build-out of new capacity.
The addition of new capacity explains why Micron's capital expenditure in fiscal 2026 is going to land at $27 billion. That's nearly double Micron's capex in fiscal 2025. The company also notes that its quarterly capex in fiscal 2027 will be higher than in fiscal Q4. Micron is forecasting $10 billion in capital spending this quarter, indicating that its fiscal 2027 capex will exceed $40 billion.
Importantly, Micron isn't the only memory manufacturer adding new capacity. Korean memory giant SK Hynix intends to double its wafer capacity over the next five years. Samsung, meanwhile, is planning to spend an enormous $648 billion in South Korea over the next decade to shore up chip production, as reported by Reuters.
All this bodes well for Lam Research, which gets 39% of its revenue from selling memory manufacturing equipment. On the other hand, it derives 54% of its revenue from the sale of foundry equipment. So, Lam is in a solid position to sustain the impressive revenue and earnings growth it has been clocking in recent quarters.
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Strong memory equipment spending should be a tailwind for Lam Research stock Lam Research's revenue has increased by 24.4% in the first nine months of fiscal 2026 to $16.5 billion. Its fiscal Q4 revenue guidance of $6.6 billion indicates that Lam's top line this year will land at $23.1 billion, an increase of 25% over last year. The strong memory spending environment explains why analysts are expecting a spike in Lam's revenue growth in fiscal 2027, followed by another solid increase in fiscal 2028.
Data by YCharts
However, Lam's growth rate could continue to accelerate beyond fiscal 2027, given that the memory shortage is not expected to ease until 2030. SK Hynix estimates that memory wafer supply will trail demand by 20% through 2030, suggesting that memory manufacturers will need to add more capacity. So, Lam's revenue and earnings growth can exceed Wall Street's expectations over the long run.
Lam's earnings are expected to increase to $9.91 per share in fiscal 2028, as evidenced by the following chart.
Data by YCharts
Assuming it can clock 20% annual bottom-line growth in fiscal years 2029 and 2030, its earnings per share could increase to $14.27 after four years. If this AI stock trades at 39.5 times earnings at that time (in line with the tech-focused Nasdaq Composite index's average earnings multiple), its price could reach $564. That represents a potential upside of 44% over the next four years, though stronger gains cannot be ruled out, given the solid memory demand and the ongoing supply shortage.
So, it isn't too late for investors to buy this growth stock that has appreciated 111% so far this year, as it is sitting on a terrific catalyst that could send it even higher.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 2:
Rockwell Automation, Inc. (ROK - Free Report) : This industrial automation company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.
Rockwell Automation's shares gained 32.7% over the last three months compared with the S&P 500’s decline of 14.0%. The company possesses a Momentum Score of A.
Applied Materials, Inc. (AMAT - Free Report) : This semiconductor equipment company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
Applied Materials’ shares gained 87.0% over the last three months compared with the S&P 500’s decline of 14.0%. The company possesses a Momentum Score of A.
Concrete Pumping Holdings, Inc. (BBCP - Free Report) : This concrete pumping and waste management company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 41.7% over the last 60 days.
Concrete Pumping Holdings ’ shares gained 69.8% over the last three months compared with the S&P 500’s decline of 14.0%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Nvidia and Micron Technology have drawn significant investor attention as they power AI infrastructure, but savvy investors may also want to turn some of that attention to Applied Materials (AMAT 7.82%). Applied Materials doesn't make chips, but it designs vital equipment that chipmakers use to create their chips.
In short, Applied Materials is an enabler of chipmakers, but that's not the only thing you need to know when deciding if the stock is a good buying opportunity.
Image source: Getty Images.
A star-studded customer list Applied Materials isn't the only company that produces equipment chipmakers need to create their chips, but it is the largest semiconductor equipment provider in the U.S.
The company's fiscal 2026 second-quarter results highlighted several customer partnerships that suggest accelerated revenue growth is on the way. In its release, Applied Materials mentioned agreements and partnerships with Taiwan Semiconductor Manufacturing, Micron, and SK Hynix. All of these companies have been working together for years, and the parabolic revenue growth they are seeing should translate into higher revenue growth for Applied Materials.
The company delivered 11% year-over-year revenue growth in its fiscal 2026 second quarter, which ended April 26, but it expects at least 30% revenue growth for its semiconductor business in calendar 2026. Semiconductor revenue made up $5.965 billion of the company's $7.91 billion of its second-quarter revenue, which comes to 75% of total revenue.
That segment only had 10.4% year-over-year revenue growth in the quarter, so guidance for 30% revenue growth throughout calendar 2026 implies substantial acceleration in upcoming quarters.
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Applied Materials has an elevated valuation Not every investor is waiting around for Applied Materials to deliver at least 30% revenue growth in calendar 2026. The stock has more than doubled year to date, resulting in a P/E ratio that soared from the mid-teens just a year ago to over 50 right now.
While the current valuation leaves a lower margin of safety, Applied Materials can fit nicely into its new valuation if it delivers on guidance. The company's guidance for 30% revenue growth for its semiconductor segment in calendar 2026 does not mean it will maintain a 30% revenue growth rate for the rest of the year.
Applied Materials has to achieve 40% to 50% revenue growth in future quarters to offset an 11% year-over-year revenue jump in its Q2. The company has maintained high net profit margins, reaching 35.5% in the most recent quarter, so net income should meaningfully advance in calendar 2026.
Applied Materials' fundamentals are set to strengthen thanks to a multiyear AI supercycle. That can address the valuation and make it more attractive in the near future. Investors who buy now, anticipating what the company can become, may be making a wise decision.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
SAN DIEGO, July 02, 2026 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Zoetis Inc. (NYSE: ZTS) securities between January 14, 2025 and May 6, 2026, both dates inclusive (the “Class Period”), have until Monday, July 27, 2026 to seek appointment as lead plaintiff of the Zoetis class action lawsuit. Captioned City of Ann Arbor Retiree Health Care Benefit Plan & Trust v. Zoetis Inc., No. 26-cv-04401 (S.D.N.Y.), the Zoetis class action lawsuit charges Zoetis and certain of Zoetis’ top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Zoetis class action lawsuit, please provide your information here:
You can also contact attorneys Ken Dolitsky or Michael Albert of Robbins Geller by calling 800/851-7783 or via e-mail at [email protected].
CASE ALLEGATIONS: Zoetis engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry. Zoetis’ flagship companion animal products include Librela, Apoquel, Cytopoint, and Simparica Trio.
The Zoetis class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (ii) Zoetis’ Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (iii) Zoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.
On August 5, 2025, Zoetis released its second quarter 2025 financial results, allegedly revealing weakening demand trends within its companion animal portfolio. On this news, the price of Zoetis stock fell nearly 4%, according to the complaint.
Then, on November 4, 2025, Zoetis released third quarter 2025 financial results, allegedly disclosing continued weakness in Librela sales and increased competitive pressure in dermatology and parasiticides. On this news, the price of Zoetis stock fell nearly 14%, according to the complaint.
The Zoetis class action lawsuit further alleges that on February 12, 2026, Zoetis released its fourth quarter and full year 2025 financial results and provided 2026 guidance reflecting further slowing growth. According to the complaint, Zoetis acknowledged increasing competitive pressures in parasiticides and dermatology. On this news, the price of Zoetis stock allegedly fell further, according to the complaint.
Finally, on May 7, 2026, Zoetis reported first quarter 2026 financial results, allegedly disclosing slowing overall revenue growth, declining companion animal sales performance, and worsening results across its key dermatology and parasiticides franchises as competition intensified. On this news, the price of Zoetis stock fell more than 21%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Zoetis securities during the Class Period to seek appointment as lead plaintiff in the Zoetis class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Zoetis class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Zoetis class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Zoetis class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud and shareholder rights litigation. Our Firm ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report, recovering more than $916 million for investors in 2025. This marks our fourth #1 ranking in the past five years. And in those five years alone, Robbins Geller recovered $8.4 billion for investors – $3.4 billion more than any other law firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Zoetis Inc. ("Zoetis" or the "Company") (NYSE: ZTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Zoetis and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until July 27, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Zoetis securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On May 7, 2026, Zoetis reported financial results for the first quarter of 2026. Among other items, Zoetis reported net income of $601 million, flat year over year, and cut its full year 2026 profit guidance to between $6.85 and $7 a share, down from prior guidance of $7.00 to $7.10 a share. In the earnings release, CEO Kristin Peck said that "the first quarter unfolded in a more challenging operating environment than we anticipated. Pet owners demonstrated increased price sensitivity, resulting in a decline in veterinary visits and softer demand[.]"
On this news, Zoetis's stock price fell $23.91 per share, or 21.5%, to close at $87.31 per share on May 7, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, July 02, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Zoetis Inc. (“Zoetis” or “the Company”) (NYSE: ZTS) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between January 14, 2025 and May 6, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before July 27, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Zoetis suffered from weakening veterinarian prescription growth for its Librela medication after the FDA issued safety warnings about neurological complications in dogs. The Company’s Trio product lost market share to competitors. The Company’s Apoquel and Cytopoint dermatology products lost market share to newly launched competing treatments for dogs. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Zoetis, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
NEW YORK, July 02, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zoetis Inc. (NYSE: ZTS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/ZTS.
Zoetis Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements concerning the growth, competitive positioning, market share, and veterinarian adoption of key products within the Companion Animal segment while failing to disclose that:
(1)veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2)Zoetis’ Simparica Trio was losing significant market share to a lower-priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3)Zoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment. What's Next for Zoetis Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/ZTS. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zoetis you have until July 27, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zoetis Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zoetis Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Zoetis Inc. (NYSE: ZTS) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/ZTS.
Zoetis Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements concerning the growth, competitive positioning, market share, and veterinarian adoption of key products within the Companion Animal segment while failing to disclose that:
veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs;Zoetis’ Simparica Trio was losing significant market share to a lower-priced competing canine parasiticide with broader indicated use in a slowing overall market; andZoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.
What's Next for Zoetis Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/ZTS. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Zoetis you have until July 27, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Zoetis Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Zoetis Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with losses related to Zoetis Inc. ("Zoetis" or the "Company") (NYSE: ZTS) have opportunity to lead the securities fraud class action lawsuit.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ZOETIS INC. (ZTS),
CLICK HERE BEFORE JULY 27, 2026 (THE LEAD PLAINTIFF DEADLINE) TO
PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
What Is The Lawsuit About?
The complaint filed alleges that, between January 14, 2025 and May 6, 2026, Defendants failed to disclose to investors that: (1) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (2) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (3) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
The Law Offices of Frank R. Cruz,
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at: www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: DocuSign (DOCU - Free Report) Founded in 2003 and headquartered in San Francisco, Docusign is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
DOCU is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.14; value investors should take notice.
For fiscal 2027, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $4.54 per share. DOCU boasts an average earnings surprise of +8.7%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, DOCU should be on investors' short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Western Digital (WDC - Free Report) .
Western Digital currently has an average brokerage recommendation (ABR) of 1.35, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.35 approximates between Strong Buy and Buy.
Of the 26 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 80.8% and 3.9% of all recommendations.
Brokerage Recommendation Trends for WDC
Check price target & stock forecast for Western Digital here>>>
While the ABR calls for buying Western Digital, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is WDC Worth Investing In?In terms of earnings estimate revisions for Western Digital, the Zacks Consensus Estimate for the current year has increased 7.9% over the past month to $10.05.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Western Digital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Western Digital may serve as a useful guide for investors.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ - Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today announced plans to hold its second quarter 2026 results conference call at 9:00 a.m. MT, on Friday July 24, 2026. The Company plans to release its financial and operating results after market close, Thursday July 23, 2026. In addition to the release, supplemental slides and financial statements will be available on the Company's website, located at www.ovintiv.com.
Ovintiv to Host its Second Quarter 2026 Results Conference Call and Webcast on July 24, 2026 To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4jChG1W to receive an instant automated call back.
You can also dial direct to be entered to the call by an Operator. Please dial 888-510-2154 (toll-free in North America) or 437-900-0527 (international) approximately 15 minutes prior to the call.
The live audio webcast of the event, including slides, also will be available on Ovintiv's website, under Investors/Presentations and Events, and will be archived for approximately 90 days.
Further information on Ovintiv Inc. is available on the Company's website, www.ovintiv.com, or by contacting:
NetApp (NTAP - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this data storage company have returned -13.6% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Computer- Storage Devices industry, to which NetApp belongs, has gained 8.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
NetApp is expected to post earnings of $2.11 per share for the current quarter, representing a year-over-year change of +36.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $8.88 for the current fiscal year indicates a year-over-year change of +9.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.68 indicates a change of +9.1% from what NetApp is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for NetApp.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of NetApp, the consensus sales estimate of $1.83 billion for the current quarter points to a year-over-year change of +17.4%. The $7.48 billion and $7.87 billion estimates for the current and next fiscal years indicate changes of +8.1% and +5.1%, respectively.
Last Reported Results and Surprise HistoryNetApp reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +12.5%. EPS of $2.43 for the same period compares with $1.93 a year ago.
Compared to the Zacks Consensus Estimate of $1.86 billion, the reported revenues represent a surprise of +4.51%. The EPS surprise was +7.05%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
NetApp is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about NetApp. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million.
TPR is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TPR has a Growth Style Score of A, forecasting year-over-year earnings growth of 36.3% for the current fiscal year.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.49 to $6.95 per share. TPR boasts an average earnings surprise of +15.6%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TPR should be on investors' short list.
Rivian Automotive RIVN shares are ripping higher on Thursday morning following a bullish Q2 deliveries update that shattered both internal and Wall Street expectations.
Investors are cheering the EV stock after management revealed it produced 12,513 vehicles in total and delivered 12,194 in the fiscal second quarter.
Analysts – in comparison – had called for 11,000 deliveries instead.
Emboldened by the strong quarterly number, RIVN raised its full-year guidance to at least 65,000, up from its prior estimate set at 62,000 at the lower end of the range.
Following the post-update rally, Rivian stock is hovering around the same price at which it started 2026.
The Q2 deliveries report warrants buying RIVN stock primarily because it signals robust execution on the manufacturing front.
The beat this quarter was driven by growing momentum in Rivian’s electric delivery vans (EDVs), its flagship R1 lineup, and the launch of customer deliveries for its highly anticipated midsize R2 sports utility vehicle (SUV).
Start at a price point of $57,990 for the initial “Performance Launch Package” – the R2 represents Rivian’s transition into high-volume, mass-market manufacturing.
The fact that management is comfortable lifting full-year projections immediately after launching the R2 suggests the production ramp is tracking ahead of internal schedule, vindicating its choice to expand assembly capacity in Illinois.
Long-term investors should consider loading up on Rivian shares also because of proven consumer demand.
While rival luxury EV startups are struggling with order growth and legacy automakers are scaling back their electrification goals, RIVN is demonstrating sticky brand loyalty.
Its Q2 report confirms beyond doubt that consumer interest in the firm’s rugged, lifestyle-oriented trucks and SUVs remains resilient, even after the expiration of federal EV tax credits.
Moreover, macro tailwinds – including volatile gasoline prices amidst geopolitical conflicts – are steering consumers back toward viable all-electric alternatives as well.
By offering an attractive product mix that now scales down into more affordable price brackets, Rivian is capturing a unique premium wedge of the automotive market.
This unique demand profile insulates the Nasdaq-listed company from the fierce, margin-eroding price wars currently damaging lower-end EV competitors.
All in all, Rivian Automotive’s outstanding second-quarter delivery report provides a definitive answer to skeptical investors.
By under-promising and over-delivering in a brutal macroeconomic environment, the company has effectively mitigated two of the market’s biggest anxieties: structural demand visibility and R2 operational execution.
While the company has yet to hit absolute net profitability, its current price-to-sales ratio of roughly 3.77 indicates the market is beginning to appropriately price in its long-term growth potential.
While the consensus rating on RIVN shares remains at “Hold” only, analysts’ price targets on them currently go as high as $25, signaling potential upside of more than 30% from here.
Robinhood‘s (NASDAQ:HOOD | HOOD Price Prediction) shares are up 6% to $115 and change in early trading Thursday, leading a broad bounce across cryptocurrency-linked equities. The rally follows a wave of bullish analyst initiations, reportedly including a new Buy rating from BTIG.
Peers are joining the move. Coinbase (NASDAQ:COIN) shares are up 5% to approximately $167.50, while Strategy (NASDAQ:MSTR) (formerly known as MicroStrategy) shares are up 8% to $100 and change. Bitcoin (CRYPTO:BTC) is trading near $61,800, up 4% over the past 24 hours.
All three names trade as high-beta proxies for crypto sentiment, and today’s session marks a meaningful reset after weeks of pressure. Robinhood stands out because it carries company-specific catalysts on top of the broader risk-on tone.
Analyst Initiations Fuel Robinhood’s Lead Robinhood stock is the standout mover on fresh Wall Street coverage. Reports circulating in the trader community point to a new Buy rating from BTIG, layered onto a Street consensus that already carries an analyst target of $105 with 16 Buy ratings.
Robinhood’s fundamental setup supports the enthusiasm. Q1 2026 revenue landed at $1.07 billion, missing the $1.14 billion estimate, yet transaction revenue grew 7% to $623 million, event contracts surged 320%, and net interest revenue climbed 24% to $359 million. Also, Robinhood Gold subscribers reached 4.3 million, up 36% year over year (YoY).
Robinhood also recently closed a $2.2 billion convertible senior notes offering at a 0% coupon (the notes carry no regular interest), with roughly $290 million earmarked for share repurchases. The company was selected by the U.S. Treasury as broker and sole initial trustee for Trump Accounts, adding a differentiated growth vector alongside prediction markets, crypto, and international banking.
Coinbase and Strategy Ride the Crypto Bounce Coinbase stock is extending gains after a brutal stretch. The shares are down 24% year to date and off 52% over the past year, so today’s 7% move reflects sentiment repair more than fundamentals. The bulls point to long-term crypto infrastructure and upcoming legislative catalysts such as the Clarity Act, while bears cite technical weakness and Q1 2026’s GAAP EPS of -$1.49.
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Strategy is the purest leveraged Bitcoin play in the group, holding 818,334 BTC as of May 3. MicroStrategy stock is down 33% year to date and 75% over the past year, so any Bitcoin move tends to amplify through the shares.
Robinhood stock is the outlier on relative strength. It’s up 4% year to date, while Coinbase and Strategy shares have been among the most beaten-down large caps this year. That gap is why a coordinated bounce reads as sentiment-driven rather than fundamentally uniform.
The Bear Case and What to Watch The bull thesis carries real risks. Robinhood reportedly faces a class-action lawsuit alleging its prediction markets amount to unlicensed sports gambling, and a Supreme Court case is examining disclosures tied to its 2021 IPO. The Q1 2026 EPS of $0.38 also missed the $0.3877 estimate.
The valuation deserves attention, as well. Robinhood stock trades at a P/E ratio of 49x with a beta of 2.3 that magnifies moves in both directions. Furthermore, HOOD stock’s 52-week range of $63.52 to $153.86 tells the volatility story on its own.
These are high-beta, crypto-sensitive names, and one session doesn’t rewrite the long-term thesis. Investors may want to keep their position sizes modest and treat today’s bounce as sentiment repair rather than trend confirmation. That distinction matters most for Coinbase and Strategy shares, which remain deeply below year-ago levels.
Market watchers can watch for whether Robinhood shares hold their gains into the close, whether Bitcoin reclaims $62,000, and whether additional analyst notes surface later today. For now, position sizing can be your key to relative safety in these rough-and-tumble markets.
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Robinhood’s CEO says the U.K. should look to the U.S. to increase retail stock ownership.
“Think of it as similar to where the US was 30 to 40 years ago,” Vlad Tenev said in a Bloomberg Television interview in London published Thursday (July 2).
He cited things like employer-sponsored 401(k) pensions and the White House initiatives to give newborns equity ownership.
“There is no reason why the same things would not also work here,” Tenev said.
As Bloomberg notes, Robinhood arrived in England two years ago with the goal of increasing retail ownership of equities, which are low in the U.K. compared to the U.S. Now, the British government is trying to boost interest in domestic stocks, with measures like easier initial public offerings (IPOs) and tax breaks on trading in new listings.
Asked by Bloomberg about the role of regulators, Tenev said the U.K.’s Financial Conduct Authority (FCA) showed “a great deal of openness to innovation” in his talks with the regulator. The authority recently said it would simplify requirements in its crypto regime coming next year.
Tenev, who is also Robinhood’s founder, added European regulators were ahead with the Markets in Crypto Assets regulation, which was followed by the Genius Act in the U.S.
The report also touched on concerns about an AI bubble, which Tenev dismissed, saying that “companies are generating significant revenue” that demonstrates there is substance behind the businesses, and adding that ownership “is a multidecade game.”
The interview came one day after Robinhood debuted the public mainnet of Robinhood Chain, a Layer 2 blockchain.
“AI-native and purpose-built for real-world assets, Robinhood Chain creates a permissionless environment for builders to innovate seamlessly,” Robinhood said in a news release.
The blockchain is one of several new decentralized finance and agentic products the company announced during its event, “Robinhood Presents: The World is Flat.”
These include new Stock Tokens available on the Robinhood Wallet in 120 countries; the rollout of Robinhood Earn to eligible U.S. users, letting them lend USDG; and an integration that allows users to access perpetual futures on decentralized exchange Lighter within Robinhood Wallet.
Meanwhile, Tenev announced last month that Robinhood securities business can now serve as an underwriter for IPOs. He said becoming an underwriter, and not simply a selling group member, is a natural progression in better serving customers and issuers.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: PBF Energy (PBF - Free Report) PBF Energy Inc. is a leading independent refiner of crude oil based in Parsippany, New Jersey. Through six oil refineries and associated infrastructure in the United States, the company produces unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products. The refineries can collectively process about 1,000,000 barrels of crude oil per day.
PBF is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Oils-Energy stock. PBF has a Momentum Style Score of B, and shares are up 12.9% over the past four weeks.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.47 to $8.55 per share. PBF also boasts an average earnings surprise of +113.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PBF should be on investors' short list.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Zscaler (ZS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 45 recommendations that derive the current ABR, 34 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75.6% and 4.4% of all recommendations.
Brokerage Recommendation Trends for ZS
Check price target & stock forecast for Zscaler here>>>
While the ABR calls for buying Zscaler, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ZS Worth Investing In?Looking at the earnings estimate revisions for Zscaler, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.13.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zscaler. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Zscaler.
Key Takeaways ExxonMobil can continue Permian output with WTI above Midland and Delaware shut-in prices.ExxonMobil aims to grow Permian production to 1.8 million oil-equivalent barrels this year.WTI below $70 remains favorable for Chevron and ConocoPhillips to continue upstream production. Exxon Mobil Corporation (XOM - Free Report) has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.
With West Texas Intermediate (“WTI”) crude oil trading below the $70 per-barrel mark, significantly higher than the shut-in prices, it makes sense for XOM to continue production in the wells. On the first-quarter earnings call, XOM mentioned that it is on track with its plan of growing its production in the most prolific basin to 1.8 million oil-equivalent barrels this year.
Will CVX & COP Also Gain From the Ongoing Oil?Like XOM, Chevron Corporation (CVX - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the ongoing oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the ongoing price of the commodity is favorable for the leading upstream player to continue producing, much like other energy giants, such as XOM and CVX.
The upstream energy giant also has low-cost drilling opportunities across the Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks bright.
Chevron, on the other hand, has been witnessing growth in production volumes, thanks to its footprint in the Permian – the most prolific basin in the United States. CVX is thus well-poised to gain from prevailing oil prices as production makes sense in the Permian.
XOM’s Price Performance, Valuation & EstimatesShares of XOM have gained 22.7% over the past year compared with the 19.8% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA of 9.05X. This is above the broader industry average of 5.87X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen downward revisions over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
