When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
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 Merck (MRK - Free Report) .
Merck currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.
Of the 30 recommendations that derive the current ABR, 18 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60% and 6.7% of all recommendations.
Brokerage Recommendation Trends for MRK
Check price target & stock forecast for Merck here>>>
While the ABR calls for buying Merck, 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.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
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 MRK Worth Investing In?In terms of earnings estimate revisions for Merck, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $5.17.
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 Merck. 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 Merck.
Charter Communications stock is at the top of the S&P 500. SpaceX and Comcast are part of the move with possible changes coming to U.S. Internet providers.
Key Takeaways Chevron is evaluating U.S. data center projects beyond Project Kilby to meet rising AI electricity demand.CVX plans natural gas-fired facilities in multiple regions, with Project Kilby targeting first power in 2028.Chevron sees dedicated power projects as a potential long-term revenue stream beyond commodity prices. Per Reuters, Chevron Corporation (CVX - Free Report) is expanding its ambitions in the fast-growing data center power market by exploring additional projects across the United States. Building on the momentum of Project Kilby, the company is evaluating opportunities in several strategic regions to support the rapidly increasing electricity demand driven by artificial intelligence (AI) and cloud computing.
With abundant natural gas resources, proven energy infrastructure expertise and a growing pipeline of potential customers, Chevron is positioning itself as a key provider of dedicated power solutions for next-generation digital infrastructure.
Building on the Success of Project KilbyProject Kilby represents Chevron's first dedicated natural gas-fired power project designed specifically for a hyperscale data center. The 2.67-gigawatt facility will supply electricity to Microsoft's data center campus in Pecos, TX, with enough generating capacity to power a city the size of San Francisco.
The project reflects Chevron's strategy of combining its extensive energy development experience with growing demand from technology companies seeking reliable, large-scale power sources for AI workloads.
Chevron expects to make a final investment decision by the end of the year, while the first electricity from Project Kilby is anticipated in 2028. The facility also has the potential to expand beyond its initial capacity as future demand increases.
Chevron Is Exploring New Growth Opportunities NationwideFollowing Project Kilby, Chevron is actively evaluating similar opportunities in several regions, including West Texas, the Midwest, the Gulf Coast and areas near Colorado's Rocky Mountains. The company is also considering projects in Utah, where it already operates a hydrogen facility.
Chevron has indicated that future developments could involve both Microsoft and other technology customers, depending on project economics and commercial viability. The company believes multiple locations across the country offer the right combination of energy resources, infrastructure and customer demand to support dedicated data center power facilities.
Natural Gas Supports Reliable AI InfrastructureAs AI adoption accelerates, reliable electricity has become one of the biggest challenges facing data center expansion. Chevron believes natural gas offers an effective solution, backed by its abundant domestic supply, operational flexibility, and ability to provide continuous, dispatchable power.
Unlike intermittent energy sources, natural gas generation can quickly respond to changing electricity demand while maintaining stable operations. This reliability is particularly valuable for data centers, where uninterrupted power is essential to support AI processing, cloud services and other digital workloads.
CVX Is Balancing New Opportunities With Existing OperationsWhile expanding into dedicated power generation, Chevron continues to prioritize the energy needs of its own operations. The company evaluates new investments across its broader business to ensure projects supporting external customers do not compromise the reliability of power required for activities such as drilling operations and compression infrastructure in the Permian Basin.
This enterprise-wide approach allows Chevron to pursue emerging business opportunities while maintaining operational efficiency across its core energy portfolio.
Creating a New Long-Term Revenue StreamBeyond supporting growing electricity demand, data center power projects provide Chevron with an opportunity to diversify its revenue sources. Dedicated power generation offers income that is less directly exposed to fluctuations in oil and natural gas commodity prices, creating a potentially more stable long-term business segment.
Although industry analysts believe it is still too early to determine the financial impact of these projects, Chevron continues to advance its plans as demand for AI infrastructure grows across the United States.
Chevron Looks Beyond Project KilbyThe rapid expansion of AI and cloud computing is reshaping electricity demand, creating significant opportunities for energy providers capable of delivering reliable, large-scale power. Chevron's strategy extends well beyond Project Kilby, with multiple regions under evaluation for future developments.
By leveraging its natural gas resources, project execution capabilities and established energy infrastructure, Chevron aims to play an increasingly important role in powering the next generation of AI-driven data centers while strengthening its long-term growth strategy.
CVX’s Zacks Rank & Key PicksChevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. Currently, CVX carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may consider some top-ranked stocks like Global Partners LP (GLP - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and Liberty Energy Inc. (LBRT - 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.
Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. It owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for GLP’s 2026 earnings indicates 113.1% year-over-year growth.
TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into two reportable segments: Refining and Logistics. The Zacks Consensus Estimate for DK’s 2026 revenues indicates 5.9% year-over-year growth.
Liberty Energy is a leading North American oilfield services company, specializing in hydraulic fracturing and completion solutions. The company provides differentiated services through advanced technology integration and real-time data analytics. The Zacks Consensus Estimate for LBRT’s 2026 earnings indicates 66.7% year-over-year growth.
As technology companies build larger and more powerful data centers, utilities and energy producers are scrambling to find ways to supply the enormous amounts of power these facilities require.
That's where oil and gas giants Chevron (CVX 1.10%) and ExxonMobil (XOM 0.13%) see a new opportunity. Both companies are pursuing natural gas-fired power plants designed specifically to support artificial intelligence (AI) data centers.
But for now, Chevron appears to have taken the lead. Here's why.
4 Gigawatts Earlier this month, Chevron announced a partnership with Microsoft and power developer Engine No. 1 to develop natural gas-powered generation projects that could eventually supply up to 4 gigawatts of electricity to U.S. data centers. To put that in perspective, 4 gigawatts is enough to supply electricity to roughly 3 million average U.S. homes, depending on consumption and plant utilization.
The agreement marked Chevron's first major move into supplying dedicated power for AI infrastructure and establishes a long-term relationship with one of the world's largest cloud computing companies.
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Rather than relying entirely on the existing electric grid, the projects are designed to colocate power generation with data centers, thereby providing the reliable, around-the-clock electricity needed to support AI workloads while reducing pressure on regional transmission systems.
Chevron expects to bring the first facilities online by 2028. For Chevron, this isn't just another natural gas customer. It actually establishes a direct relationship with one of the world's largest AI infrastructure builders at a time when demand for computing power continues to rise. This is not trivial. And ExxonMobil is chasing the same opportunity.
Exxon's angle ExxonMobil recently partnered with NextEra Energy to market an initial 1.2 gigawatt natural gas power project equipped with carbon capture for AI data centers. The companies are combining their respective strengths. ExxonMobil brings expertise in natural gas production and carbon capture, while NextEra has decades of experience developing and operating utility-scale power projects.
Together, the companies are trying to offer data center operators a dedicated source of reliable electricity that can run around the clock. Exxon's approach is to pair natural gas generation with carbon capture to make that power more attractive to technology companies under pressure to control emissions.
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Of course, Exxon is still looking for customers. While the NextEra partnership outlines an ambitious vision, the projects remain in the development and marketing stage. Chevron, meanwhile, has already secured a major technology customer and a specific deployment plan.
Bigger than a power plant To be sure, this opportunity extends far beyond a handful of power plants. The Electric Power Research Institute (EPRI) estimates that data centers could consume between 9% and 17% of all U.S. electricity by 2030, up from about 4% to 5% today, as AI adoption accelerates.
Image source: Getty Images.
At the same time, rising electricity demand from manufacturing, electric vehicles, and building electrification is putting additional pressure on the nation's power grid.
Now, renewable energy will likely play a major role in powering the next generation of data centers. In fact, many of the world's largest technology companies continue to invest heavily in solar, wind, battery storage, and advanced nuclear projects.
But AI-driven electricity demand is growing so quickly that utilities and developers are looking for every available source of new generation capacity. As a result, the future power mix for AI infrastructure will include both renewable energy and natural gas rather than one replacing the other.
And that's creating a new market that didn't exist in a meaningful way just a few years ago. Indeed, Chevron and ExxonMobil are no longer simply producing oil and natural gas. They're increasingly positioning themselves as providers of energy infrastructure for the AI economy.
Both companies could benefit if demand for dedicated data center power continues to grow. But at least for now, Chevron has moved from talking about the opportunity to signing one of the industry's first major commercial agreements.
Key Takeaways CCL has 93% of 2026 business booked, with pricing ahead of last year at historic highs.Customer deposits hit a record $9.0B as onboard revenues and pre-cruise sales increased.Fuel costs rose nearly 30%, while Europe disruption, logistics and currency risks remain. Carnival Corporation Ltd. (CCL - Free Report) is gaining investor attention as its recovery story shifts from broad cruise demand to stronger execution. Booking visibility, onboard spending and destination investments are giving the company more ways to support revenues and earnings.
Royal Caribbean Group (RCL - Free Report) , which currently carries a Zacks Rank #3 (Hold), remains a relevant peer for investors tracking cruise pricing and destination-led demand. Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , which currently has a Zacks Rank #4 (Sell), also provides a useful comparison as investors assess whether cruise demand can support higher yields across the industry.
Carnival Bookings Stretch Far AheadCarnival’s booking curve remains the furthest out on record, giving the company unusual visibility into future revenues. For 2026, 93% of business is already on the books, with the booked position ahead of last year at historically high prices.
Demand is not limited to the current year. Since March, bookings for 2027 and beyond have been running ahead of prior-year levels on both volume and price, including stronger European bookings.
CCL Turns Demand Into Higher YieldsCarnival delivered its 12th consecutive quarter of record net yields. That matters because the company is not just filling ships, it is capturing demand at better price points.
Customer deposits reached an all-time high of $9.0 billion, up more than $450 million from the prior-year record. Higher second-quarter onboard revenues and increased pre-cruise onboard sales also show that more guest spending is being captured before sailings begin.
Carnival Builds a Destination AdvantageCarnival’s destination strategy is becoming a larger part of its investment case. Celebration Key now accommodates up to four ships and more than 13,000 guests on any given day, and is expected to welcome 3.5 million visitors in fiscal 2027.
RelaxAway, Half Moon Cay can support up to 12,000 visitors per day, while Isla Tropicale added a 48,000-square-foot recreational area. Carnival’s Alaska platform, with five brands, 19 ships, four embarkation ports, lodges, rail assets and motor coach operations, adds another layer of itinerary differentiation.
CCL Still Has Meaningful HeadwindsDemand strength does not remove margin risk. Cruise and tour operating expenses increased to $4.23 billion in the second quarter from $3.89 billion a year earlier, while selling and administrative expenses rose to $863 million from $816 million.
Fuel is another pressure point. Fuel expense rose to $595 million from $468 million, reflecting a nearly 30% increase in fuel prices. Geopolitical disruption in Europe, elevated logistics costs and currency sensitivity also remain risks that can affect yields, costs and earnings timing.
What Carnival’s Zacks Rank AddsThe bottom line is that Carnival’s story now depends on execution as much as demand. The company has stronger booking visibility, record deposits, higher onboard spending and a more differentiated destination portfolio, but cost and fuel volatility keep the setup from being one-sided.
CCL currently carries a Zacks Rank #3. It also has a Value Score of A, Growth Score of B, Momentum Score of B and VGM Score of A.
Those Style Scores are supportive, especially for investors looking for value, growth and momentum traits together. The Zacks Rank #3, however, points to a measured near-term outlook rather than a more aggressive bullish signal.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Carnival ended fiscal Q2 with 93% of 2026 booked and less inventory left than a year earlier.CCL's onboard and other revenues rose to $2.39B as pre-cruise sales and deposits increased.Carnival is using owned destinations and a slower ship delivery pace to support returns and differentiation. Carnival Corporation Ltd. (CCL - Free Report) is giving investors a useful view of how cruise earnings power is changing. The company’s latest results point to a profit model built less on simply filling ships and more on pricing, onboard spending capture, owned destinations and disciplined capacity growth.
That shift matters across the cruise group. Royal Caribbean Group (RCL - Free Report) , which currently carries a Zacks Rank #3 (Hold), and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , which currently has a Zacks Rank #4 (Sell), give investors peer context for whether these same profit levers are becoming broader industry standards.
Carnival Shows a Longer Booking CurveCarnival ended the second quarter of fiscal 2026 with 93% of the year already on the books and less inventory left to sell than at the same time last year. Its booked position for the remainder of 2026 was ahead of the prior year at historically high prices.
That matters because a longer booking curve gives operators better revenue visibility before ships sail. It can also reduce reliance on late discounting, allowing cruise companies to protect pricing rather than chase occupancy at the expense of yields.
CCL Leans Harder on Onboard SpendCarnival’s onboard and other revenues rose to $2.39 billion in the fiscal second quarter from $2.22 billion a year earlier. Management also pointed to higher second-quarter onboard revenues, increased pre-cruise onboard sales and record customer deposits.
The message is that profit growth is not only about selling more tickets. Carnival is trying to capture more guest spending before and during the trip, which can improve revenue mix and support yields even when external pressures affect certain deployments.
Carnival Expands Owned DestinationsCarnival’s destination strategy is becoming a more important part of its profit story. Celebration Key is expected to welcome 3.5 million visitors in fiscal 2027, while RelaxAway, Half Moon Cay can support up to 12,000 visitors per day.
These owned and exclusive assets can increase guest engagement and create more spending opportunities tied directly to Carnival’s ecosystem. The Paradise Collection is expected to welcome more than 9 million guest visits in fiscal 2027, giving the company another lever for product differentiation.
CCL Reflects Stricter Capacity DisciplineCarnival has moved toward a one- to two-ship annual delivery cadence, down from the historical pace of three to four ships per year. That approach signals a stronger focus on returns and asset productivity rather than faster capacity expansion.
The company is also investing in modernization. Holland America Evolution includes a multiyear investment of more than $500 million across six ships, while AIDA Evolution continues to refresh existing assets. These efforts can extend the earnings life of ships and add onboard revenue opportunities.
Why Carnival’s Zacks Rank MattersThe bottom line is that Carnival’s profit model is becoming more disciplined. Longer booking curves, higher onboard capture, destination ownership and measured capacity growth all point to a business trying to improve returns from each guest and each asset.
CCL currently carries a Zacks Rank #3, matching RCL’s near-term rank but standing above NCLH’s Zacks Rank #4. That keeps Carnival in a middle-ground stock view rather than a clearly bullish or bearish position.
The stock also has a Value Score of A and a VGM Score of A, along with a Growth Score of B and Momentum Score of B. The Style Scores suggest Carnival screens well across several investment characteristics, especially value and the combined value, growth and momentum profile, while the Zacks Rank keeps the near-term stock stance balanced.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced it has entered into a definitive agreement to sell its Brazilian operations, operated under the CERATTI® brand to Zanchetta Alimentos LTDA, a Brazilian food company with an established presence in the market.
The divestiture reflects Hormel Foods ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.
The transaction is expected to close in the coming weeks, subject to customary closing conditions, including required regulatory approval. In the interim, operations will continue as usual for employees, customers and partners.
Financial details of the transaction have not been disclosed. Hormel Foods expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results. The company expects to share additional information during its earnings call for the third quarter of fiscal 2026.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which are based on the current assumptions and expectations of Hormel Foods Corporation ("Hormel"). These statements are typically accompanied by the words "expect," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding Hormel's anticipated sale of its Ceratti business in Brazil, international growth opportunities, and the expected impact of the transaction on Hormel's fiscal 2026 financial results.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although Hormel believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors which could cause Hormel's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that Hormel may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and Hormel's recent corporate restructuring plan; risk of unfavorable changes in Hormel's relationships with third parties; risk of Hormel's inability to protect information technology (IT) systems against, or effectively respond to, cyber-attacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for Hormel's products; risks related to Hormel's ability to respond to changing consumer preferences; damage to Hormel's reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of Hormel's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at www.hormelfoods.com in the "Investors" section. Though Hormel has attempted to list comprehensively these important cautionary risk factors, Hormel cautions that other factors may in the future prove to be important in affecting Hormel's business or results of operations. Forward-looking statements speak only as of the date they are made, and Hormel does not undertake any obligation to update any forward-looking statement except as otherwise required by law.
Contact:
Media Relations
Hormel Foods
[email protected]
Investors looking for stocks in the Transportation - Services sector might want to consider either ZTO Express (Cayman) Inc. (ZTO) or C.H. Robinson Worldwide (CHRW).
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? 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 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 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 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.
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.
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: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.15; value investors should take notice.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $10.65 per share. TMUS boasts an average earnings surprise of +12.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TMUS should be on investors' short list.
US telecom stocks Verizon VZ, T-Mobile (TMUS), and AT&T (T) are slipping this morning after Comcast (CMCSA) announced plans of splitting itself into two independent, public companies.
The corporate overhaul will decouple CMCSA’s core telecom infrastructure from its huge media and entertainment segments through a tax-free spin-off to existing shareholders.
Here’s why Comcast’s announcement is largely negative for the likes of VZ, TMUS, and T shares.
By shedding NBCUniversal, the “New” Comcast becomes a lean, ultra-focused, well-capitalized broadband and wireless pure-play.
Telecom analysts are warning that a CMCSA unburdened by legacy media drag is positioned to protect its broadband turf aggressively and expand its mobile virtual network operator (MVNO) wireless business.
This presents a direct, amplified threat to the subscriber bases of Verizon, AT&T, and T-Mobile in an already saturated, low-growth telecom market.
With billions in capital liberated from funding streaming content, Comcast can aggressively scale its high-margin mobile bundles, forcing the Big Three wireless carriers into a defensive, margin-eroding price war to safeguard their post-paid users.
With NBCUniversal hitting the public markets as a standalone entity in roughly a year, analysts immediately flagged it as the ultimate consolidation target.
Wall Street analysts are already speculating on suitors, with Netflix being floated as a top candidate after recently missing out on the Warner Bros assets.
If NBCUniversal pairs its massive content library and theme parks with a dominant technology or streaming platform, it dramatically shifts the media-distribution landscape, leaving the traditional telecom giants’ own legacy content/bundling strategies looking far less competitive.
This consolidation would devalue the carrier bundles that AT&T and Verizon rely on for customer retention, forcing them to pay steeper licensing fees for premium content or watch their subscribers churn toward more powerful, platform-exclusive tech and media alliances.
Compounding the negative sentiment, the FCC’s just-concluded Auction 113 results dropped recently.
And here’s what was revealed: Verizon shelled out a massive $3.2 billion on 82 spectrum licenses to stay competitive, while newcomers like SpaceX’s Starlink treaded lightly.
This serves as a stark reminder to investors of the massive, ongoing capital expenditure required to be a traditional wireless carrier – contrasting sharply with Comcast’s new asset-light corporate structure.
While the legacy carriers sink billions into raw airwaves just to maintain network parity, Comcast can lean on its existing, highly profitable fiber-coaxial footprint.
This capital disparity allows the newly unbundled tech giant to return cash to shareholders or fund aggressive customer acquisition, leaving the major US telecom stocks at a significant structural disadvantage.
Investors should note, however, that Wall Street maintains buy-equivalent ratings on all three – Verizon, AT&T, and T-Mobile US Inc for the next 12 months.
Investors interested in Chemical - Diversified stocks are likely familiar with Dow Inc. (DOW) and Albemarle (ALB). But which of these two stocks offers value investors a better bang for their buck right now?
Investors looking for stocks in the Manufacturing - Farm Equipment sector might want to consider either Alamo Group (ALG) or Deere (DE). But which of these two stocks offers value investors a better bang for their buck right now?
MetLife (MET) is well-positioned in the life insurance and benefits sector, exhibiting fundamental momentum that the broader market hasn't fully priced in.
Backed by scale, brand equity, and an experienced leadership team, MetLife is firing on all cylinders.
Premium & Sales Growth: In Q1, MetLife's core premiums and fees grew 10%, driven largely by international and domestic demand: Asia jumped 22%, Latin America 20%, while US Group Benefits gained 15%.Unlocking Efficiency via AI: While many investors focus on AI companies, they may be ignoring how AI and technological innovation can help old economy businesses. MetLife is poised to lead the industry in margin expansion (20–25 bps annually) by keeping expense growth firmly below revenue gains.Earnings Power: Consensus estimates project nearly 25% EPS growth over the next two years, from an expected $9.94 in FY2026 to $12.40 in FY2028. Roughly 5% of the forecast EPS growth is expected from buybacks (there is just under $1.2 billion remaining in the existing buyback program). Strong recent sales, favorable group life underwriting, and rising equity markets are boosting alternative investments. ROE and Capital Management: MetLife's average ROE of 17.2% is at the upper end of its 15–17% target range. Given MetLife's strong fundamental tailwinds and clear path to EPS upside, I like a September 77.5/87.5/92.5 call spread risk reversal (below), structured to either capture further upside, or potentially purchase the stock close to the long-term average ~$78.
It allows investors to capture MetLife's upward momentum while mitigating immediate downside risk after the stock's impressive recent rally and also reducing the impact of "theta" (aka "decay").
Defined Risk, Leveraged Reward: By purchasing an at-the-money call, you gain exposure to MetLife's upside. By simultaneously selling a higher-strike call and lower strike put, you collect premium that lowers your net cost (debit), reducing your breakeven.Mitigating Volatility: While rising equity markets and strong alternative investment returns provide a tailwind for MetLife's stock, selling the outer strike helps offset the cost of implied volatility. Note, too, that September expiration captures earnings (the company is expected to report on August 6th) - after which options premiums tend to fall more sharply, a phenomenon sometimes referred to as a post-catalyst "vol crush".EPS Timelines: Choosing the Sep expiration not only captures upcoming quarterly earnings reports, but acknowledges that the market has been choppier recently, and it captures most of September, which has also historically seen above-average volatility.Trade Management: If MetLife's stock surges, use the opportunity to "monetize" (i.e., cover) the short put, and possibly roll the debit call spread up (meaning to higher strikes), or up and out (in time).
SummaryAmerican Tower Corporation offers stable, low single-digit growth, a 4.2% dividend yield, and trades at ~16x FFO, presenting an attractive margin of safety.AMT’s long-term contracts, high switching costs, and scale-driven efficiencies provide robust moats, supporting gradual FFO and dividend growth.While long-term risks from satellite Internet (e.g., SpaceX’s Starlink) exist, near-term disruption is expected to be minimal; sector headwinds are more pressing.I maintain a Buy rating on AMT, citing reasonable valuation, resilient fundamentals, and a prospective IRR near 10% for a high-quality, perpetual asset. Lawrey/iStock via Getty Images
American Tower Corporation (AMT) trades at 16x FFO, with low growth, in the low single digits. Dividend yield of ~4.2%. Boring business. I think all of this makes even more sense when we remember that just a few weeks ago, SpaceX (
2.8K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Block (XYZ) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
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Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
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Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
On March 28, 2017, XYZ was added to the Focus List at $17.25 per share. Shares have increased 351.13% to $77.82 since then, and the company is a #1 (Strong Buy) on the Zacks Rank.
For fiscal 2026, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.21 to $3.89. XYZ boasts an average earnings surprise of 3.5%.
Additionally, XYZ's earnings are expected to grow 64.1% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, 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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Block (XYZ - Free Report) Block, Inc. was incorporated in San Francisco in 2009. The company does not designate a headquarters location as it adopted a distributed work model in 2021. It has been an S&P 500 constituent since July 2025.
XYZ is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. XYZ has a Momentum Style Score of A, and shares are up 2.8% over the past four weeks.
13 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.21 to $3.89 per share. XYZ boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, XYZ should be on investors' short list.
SAN DIEGO, June 29, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating Hyliion Holdings Corp. (NYSE American: HYLN) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.
What Should Hyliion Investors Do?
If you purchased Hyliion securities and suffered losses on your investment, you are encouraged to contact Johnson Fistel to learn more about the investigation.
To join the investigation click here.
For more information, contact Jim Baker at [email protected] or (619) 814-4471.
There is no cost or obligation to you.
Why Is Johnson Fistel Investigating Hyliion?
On June 23, 2026, Pelican Way Research published a short report concerning Hyliion titled “Hyliion: A Glorified Science Project Who Has Continuously Failed To Meet Expectations And Is Now Throwing Around A Meaningless Deal.” The report stated that Hyliion’s stock had risen significantly following the Company’s announcement of a non-binding LOI with VFG Holdings for up to 250 KARNO Cores, representing approximately $133 million in potential revenue.
Pelican Way Research alleged that the VFG LOI accounted for roughly one-third of Hyliion’s reported $400 million-plus pipeline and questioned whether the LOI provided meaningful commercial validation. The report further alleged that VFG, which Pelican Way identified as VFG Tech Holdings, LLC, was incorporated in January 2026, appeared to have only four LinkedIn employees, had a minimal website, and lacked evidence of funding or operating substance sufficient to support an order of that size.
In light of these allegations, Johnson Fistel is investigating whether Hyliion Holdings complied with federal securities laws. If you suffered losses, or are a long-term holder of Hyliion stock, contact Johnson Fistel.
About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder litigation involving securities fraud, breaches of fiduciary duties, and other violations of state and federal law.
Johnson Fistel has been recognized as one of the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. In 2024, the firm recovered approximately $90,725,000 for investors.
Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. The attorney responsible for this communication is Frank J. Johnson.
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Johnson Fistel, PLLP
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James Baker, Investor Relations – or – Frank J. Johnson, Esq.
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New York, New York--(Newsfile Corp. - June 29, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against First Solar, Inc. (NASDAQ: FSLR) 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 First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FSLR.
First Solar Case Details
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges that:
Defendants had overstated First Solar's capacity to manage the impact of U.S. tariff policy on the Company's business Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar's projected performance in the 2026 fiscal year; as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for First Solar 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/FSLR, 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 First Solar 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 First Solar 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 First Solar 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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AbbVie (ABBV) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
When a stock hits a new 52-week high, it can be a sign that things are going well for the business and that investors are recognizing some encouraging value. However, it also means that the stock has become more expensive of late. Thus, it isn't always clear whether it's a good buy, since buying a stock at an elevated price can lead to less-than-stellar returns later on.
Healthcare giant AbbVie (ABBV +0.26%) hit a new 52-week high on Monday. And in the past 12 months, it's now up around 40%. Can it go even higher, or has its valuation become too rich to make it a good buy?
Image source: Getty Images.
Why a rally for AbbVie may have been overdue While it may seem like AbbVie has become a hot stock of late, given that it has hit new highs, on a year-to-date basis, it has risen by just around 11%. That's better than the S&P 500's gains of about 8%, but it hasn't been taking off the way some top growth stocks have.
Given the company's level of earnings, the stock should arguably have been trading at a higher price than it has. Even with its rise in value this year, the stock trades at less than 18 times its estimated future earnings (based on analyst expectations). This is still below the S&P 500 average of 21.
Due to concerns about healthcare reform under the current administration, investors may have been a bit hesitant to load up on the stock. But with AbbVie continually reporting strong numbers, it's been demonstrating solid resiliency, reminding investors as to why it's a top blue chip stock to own.
Today's Change
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It isn't too late to buy AbbVie stock AbbVie is a growth beast as it continues to expand its business through acquisitions. Most recently, it announced a $10.9 billion acquisition of Apogee Therapeutics, which will expand its immunology portfolio. While acquisition-related expenses can weigh on its earnings, in the long run, they enable the pharmaceutical giant to diversify and generate some impressive results. along the way.
With an attractive valuation, strong financials, an appetite for more growth, and an above-average dividend that yields 2.7%, AbbVie makes for a terrific all-around stock to buy and hold for the long run. Although its share price may seem inflated, being that it's at a new 52-week high, it's not too late to buy the stock, especially if you're planning to hang on to it for the long haul.
Key Takeaways AbbVie received positive CHMP opinions for Rinvoq in severe alopecia areata and non-segmental vitiligo.ABBV expects European Commission decisions in the coming months for both Rinvoq indications under review.AbbVie also secured FDA approval for Skyrizi in pediatric plaque psoriasis or psoriatic arthritis. AbbVie (ABBV - Free Report) announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has rendered a positive opinion recommending approval for its blockbuster immunology drug, Rinvoq (upadacitinib), for the treatment of adolescent and adult patients with severe alopecia areata (AA).
Separately, the CHMP also rendered a positive opinion recommending approval of Rinvoq for the treatment of adult and adolescent patients with non-segmental vitiligo (NSV).
A final decision from the European Commission is expected in the coming months for both indications. If approved for the NSV indication, Rinvoq is likely to become the first systemic medication approved for this patient population.
Rinvoq is presently approved for several indications in the EU, including atopic dermatitis, radiographic axial spondylarthritis, non-radiographic axial spondylarthritis, psoriatic arthritis, rheumatoid arthritis, ulcerative colitis, Crohn's disease, and giant cell arteritis.
Regulatory applications seeking approval of Rinvoq in NSV and AA are also under review in the United States.
ABBV’s Price PerformanceYear to date, shares of AbbVie have risen 12.7% compared with the industry’s growth of 13.1%.
Image Source: Zacks Investment Research
ABBV Gets FDA Nod for Skyrizi in Psoriatic DiseaseIn a separate press release, AbbVie announced that the FDA has approved its other blockbuster immunology drug, Skyrizi (risankizumab), for the treatment of children aged six years and older with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy, or with active psoriatic arthritis.
The latest FDA approval includes a new 55 mg pre-filled syringe (PFS) for patients weighing less than 40 kg, while the existing 150 mg PFS and Pen remain approved for patients weighing 40 kg or more.
Following the nod, Skyrizi became the first and only IL-23 inhibitor to be approved for treating pediatric patients aged six years and older weighing less than 40 kg with plaque psoriasis or psoriatic arthritis in the United States.
The approval was based on data from the phase III OptIMMize psoriasis clinical program.
Last week, Skyrizi was approved in the EU for children and adolescents aged six years and above with moderate-to-severe plaque psoriasis who are candidates for systemic therapy.
Skyrizi is currently approved for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis, both in the United States and in Europe.
ABBV Bets on Skyrizi & Rinvoq to Aid RevenuesBoth Skyrizi and Rinvoq continue to deliver strong growth across their approved indications. These medicines have played a key role in offsetting the continued decline in sales of AbbVie's legacy drug Humira, which has faced biosimilar competition in the United States since 2023.
In the first quarter of 2026, Skyrizi sales increased 29.2% year over year to $4.48 billion, while Rinvoq sales rose 20.2% to $2.12 billion. Together, the two medicines were key contributors to AbbVie's double-digit revenue growth during the quarter.
Reflecting their continued momentum, the company raised its 2026 sales guidance for both drugs by $100 million each and now expects Skyrizi and Rinvoq to generate $21.6 billion and $10.2 billion in sales, respectively, this year. Combined, the two medicines are projected to deliver more than 20% sales growth in 2026.
ABBV’s Zacks Rank & Stocks to ConsiderAbbVie currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Kiniksa Pharmaceuticals (KNSA - Free Report) , Immunocore (IMCR - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 EPS have increased from $1.09 to $1.24. Over the same period, EPS estimates for 2027 have risen from $1.54 to $1.70. KNSA shares have surged 43.5% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters and missed in the remaining two quarters, with the average surprise being 1.53%.
Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR stock has lost 11% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while estimates for 2027 have increased from $2.91 to $4.81 during the same time. LQDA shares have surged 126.7% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
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.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value 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 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 ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American International Group (AIG - Free Report) American International Group is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals protect their assets and manage risks through AIG operations, licenses and authorizations, as well as network partners. It serves clients in over 200 countries and jurisdictions, ranging from individuals and small and medium-sized businesses to multinational Fortune 500 companies.
AIG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. AIG has a Momentum Style Score of B, and shares are up 1.8% over the past four weeks.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $7.98 per share. AIG boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AIG should be on investors' short list.
Key Takeaways Molson Coors is making Beyond Beer central to Horizon 2030 as it diversifies beyond traditional beer.Beyond Beer was the fastest-growing portfolio area in Q1 2026, led by Fever-Tree and Topo Chico Hard.Monaco Cocktails adds RTD scale, convenience-store reach and about 80 sales employees to support growth. Molson Coors Beverage Company (TAP - Free Report) is accelerating its transformation beyond traditional beer as management seeks new avenues for long-term growth. While beer remains the company's core business, faster-growing categories such as ready-to-drink (RTD) cocktails, hard seltzers and premium mixers are becoming increasingly important to diversify revenues and reach new consumers. TAP's Horizon 2030 strategy places Beyond Beer at the center of portfolio expansion, reflecting management's view that future growth will come from participating in a broader range of beverage occasions rather than relying solely on the mature beer category.
The strategy is already gaining traction. Management described Beyond Beer as the fastest-growing part of the portfolio during the first quarter of 2026, supported by brands such as Fever-Tree, Topo Chico Hard and the recently acquired Monaco Cocktails. Fever-Tree contributed meaningfully to first-quarter net sales and recently launched its first national U.S. advertising campaign. Meanwhile, Topo Chico Hard returned to growth following last year's regional refocusing. Molson Coors also completed the acquisition of Atomic Brands, adding Monaco Cocktails to establish a meaningful presence in the RTD market. Management expects Monaco to contribute roughly 1% of global net sales on a trailing 12-month basis while generating incremental profitability in its first year, despite being included in the portfolio for only nine months during 2026. The acquisition also brought approximately 80 sales employees, strengthening commercial execution across the Beyond Beer business.
Importantly, Molson Coors views Beyond Beer as more than a collection of new brands. The company is building dedicated commercial capabilities, expanding retail coverage and using acquisitions to address portfolio gaps while leveraging its existing distribution network. Management believes Monaco strengthens its convenience-store presence, while Fever-Tree and Topo Chico Hard broaden exposure to premium and fast-growing beverage segments. As these brands scale alongside continued marketing investments and distribution gains, Beyond Beer could evolve into one of Molson Coors' most important long-term growth engines.
TAP’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 11.4% in the past six months, underperforming the Zacks Beverages - Soft Drinks industry’s growth of 18.2% and the broader Consumer Staples sector’s fall of 10.1%.
TAP Stock's Six-Month Performance
Image Source: Zacks Investment Research
Is TAP Stock a Value Play?Molson Coors shares are currently trading at a forward 12-month price-to-earnings (P/E) multiple of 8.43X, at a discount compared with the industry’s average of 15.94X. The stock is undervalued compared with its industry peers, offering compelling value to investors looking for exposure to the beverage segment.
TAP P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderARKO Corp. (ARKO - Free Report) operates a chain of convenience stores in the United States. ARKO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 2.8%, while the same for current fiscal-year earnings implies growth of 93.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 43.2%, on average.
Fomento Economico Mexicano (FMX - Free Report) is a leading multinational consumer company with operations spanning proximity retail, fuel, health, digital financial services, logistics and distribution, while also holding a controlling stake in Coca-Cola FEMSA, the world's largest Coca-Cola franchise bottler. The company presently flaunts a Zacks Rank #1.
FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average. The Zacks Consensus Estimate for FMX’s current financial-year sales and EPS indicates growth of 17.5% and 115.3%, respectively, from the year-ago reported numbers.
The Vita Coco Company Inc. (COCO - Free Report) is a leading beverage company that develops, markets and distributes coconut water and other plant-based hydration products under brands such as Vita Coco, Farmers Organic and PWR LIFT across retail, e-commerce and foodservice channels worldwide. It currently sports a Zacks Rank #1.
Vita Coco delivered a trailing four-quarter earnings surprise of 11.7%, on average. The Zacks Consensus Estimate for COCO’s current financial-year sales and EPS indicates growth of 21.4% and 47.9%, respectively, from the year-ago reported numbers.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
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 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.
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.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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: DaVita HealthCare (DVA - Free Report) Denver, CO-headquartered DaVita Inc. is a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD). The company operates outpatient dialysis centers and provides related services primarily in its dialysis centers and contracted hospitals across the United States, in addition to offering integrated kidney care services under value-based arrangements. Its services include outpatient dialysis services, hospital inpatient dialysis services and certain ancillary services.
DVA is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.4; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.91 to $15.07 per share. DVA boasts an average earnings surprise of +2.4%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, DVA should be on investors' short list.
When investors think of buying businesses at the leading edge of artificial intelligence (AI), hyperscalers might be the first to come to mind. But don't forget Lemonade (LMND +1.46%), which is leveraging this new technology throughout its entire organization.
The innovative insurance business is a disruptive force that's taking the industry by storm. Its growth is tremendous. And the market is taking notice. Shares have surged 249% in the past three years (as of June 26).
Is it too late to buy this fintech stock?
Image source: The Motley Fool.
Betting it all on AI Lemonade operates with the primary goal of providing the best insurance experience for its customers. There are no physical branches or sales agents. It's a digital and direct-to-consumer business model with AI at the core. That focus on applying AI makes complete sense given how data-heavy this industry is, with proper risk management being a non-negotiable priority.
The company's adoption has been unbelievable. As of March 31, Lemonade had over 3.1 million customers. This is about 182% higher than the 1.1 million it had five years earlier. In-force premiums soared 429% during that time, which propelled revenue 11-fold.
Younger consumers are flocking to the platform. Lemonade says that 70% of its policyholders are under the age of 35. Compared to traditional rivals, this is 10 years younger. This is a very attractive setup for the business, as it can establish a relationship early on and offer insurance products at various stages of customers' lives.
If investors already have meaningful exposure to Nvidia or the top cloud computing stocks and want to find under-the-radar AI opportunities, it's hard not to come away impressed by what Lemonade has built. Although not known for being tech-savvy and forward-thinking, insurance is a huge market that Lemonade is entering.
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Investors should focus on profits No one will argue with the view that Lemonade has found product-market fit. However, a huge unanswered question remains: Will the company ever become consistently profitable? The investment thesis rests on this unknown.
Management believes Lemonade will record positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of this year for the first time. That's a step in the right direction, but investors shouldn't put too much weight on this metric.
The consensus view among Wall Street sell-side analysts, professionals who follow this company closely, is that Lemonade won't register positive earnings per share until 2028. That means investors will have to deal with net losses in the meantime.
After a monster 249% trailing-three-year gain, it might be too late to buy this exciting growth stock. That stance could change once investors have clear visibility into Lemonade's earnings trajectory.
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.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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.
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.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Bristol Myers Squibb (BMY - Free Report) New York-based Bristol Myers is one of the leading global specialty biopharmaceutical companies focused on developing treatments targeting severe diseases. Blockbuster immuno-oncology drug Opdivo maintains momentum on consistent label expansions. The company’s efforts to revive its portfolio amid generic competition for legacy drugs like Revlimid, Pomalyst, Sprycel and Abraxane are impressive.
BMY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. BMY has a Momentum Style Score of B, and shares are up 0.6% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $6.32 per share. BMY boasts an average earnings surprise of +16.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, BMY should be on investors' short list.
At 66 with $1.3 million, the math is straightforward. A 5% blended yield throws off roughly $65,000 a year before Social Security. The cash flow underneath these three blue chips is what matters most for a retiree. I dug into each dividend to see which ones a 66-year-old can actually rely on.
Bristol Myers Squibb: Patent Cliff Meets a 41% Payout Ratio Bristol Myers Squibb (NYSE:BMY | BMY Price Prediction) just raised its payout for a 17th consecutive year, backed by 94 straight years of dividend payments.
Metric Value Annual dividend $2.52 Yield 4.63% Earnings payout ratio ~41% Net debt ~$33.6B Most recent raise 1.6% The Growth Portfolio rose 12% to $6.23B in Q1 2026, with Eliquis up 16% and Camzyos up 97%. CEO Christopher Boerner said BMY is “off to a good start in 2026, with first quarter results reflecting sustained momentum.” The Legacy book is shrinking 12% to 16% on generics, but a 41% payout leaves real cushion.
Verdict: Safe. Bull case: Growth Portfolio offsets the patent cliff. Bear case: Eliquis exclusivity erodes faster than expected and debt service crowds out raises.
Pfizer: The 6.6% Yield Is Earned the Hard Way Pfizer (NYSE:PFE) is the highest yielder here, and the coverage is the tightest.
Metric Value Annual dividend $1.72 Yield 6.64% 2025 FCF vs. dividends $9.08B / $9.77B FCF coverage 0.93x Net debt / EBITDA 3.26x Free cash flow covered just 93% of 2025 dividends, the first shortfall since 2023. Operating cash flow has slid from $32.6B in 2021 to $11.7B in 2025. CEO Albert Bourla called 2026 “an important year rich in key catalysts.” Buybacks are paused, with none anticipated in 2026, and the $7.0B Metsera obesity deal adds integration risk.
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Verdict: Moderate Risk. Bull case: pipeline and obesity bets refill the revenue gap. Bear case: LOE drag widens and FCF stays below the payout.
Verizon: 6% Yield, $172B in Debt, and Real Cash Flow Verizon (NYSE:VZ) raised its dividend for a 19th straight year after closing the Frontier acquisition.
Metric Value Annualized dividend ~$2.83 Yield 6.09% 2025 FCF $20.1B FCF payout ratio ~56% Net unsecured leverage 2.6x 2026 guidance calls for FCF of $21.5B+ against roughly $11.8B in dividends. CEO Dan Schulman said the “turnaround is not only progressing, it is gaining momentum” and raised adjusted EPS guidance to $4.95 to $4.99. Total debt of $172.5B is heavy, but 56% FCF coverage gives plenty of room.
Verdict: Safe. Bull case: fiber and postpaid phone adds (first positive Q1 since 2013) sustain cash flow. Bear case: refinancing Frontier debt at higher rates squeezes future raises.
For an income-focused retiree, BMY and VZ look like the dependable core of this trio; PFE is the higher-yield position that warrants the closest watch on quarterly cash flow.
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Albemarle (ALB - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 24.2% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why ALB Could Bounce Back Before LongThe RSI reading of 27.16 for ALB is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ALB in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 4.8% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, ALB currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum 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 A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To 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.
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: Roku (ROKU - Free Report) Roku is the leading TV streaming platform provider in the United States, Canada and Mexico based on hours streamed.
ROKU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Discretionary stock. ROKU has a Momentum Style Score of A, and shares are up 4% over the past four weeks.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.28 to $2.41 per share. ROKU boasts an average earnings surprise of +107.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROKU should be on investors' short list.
As Micron Technology Inc. (NASDAQ: MU) shares ride the Artificial Intelligence (AI) boom, C J Muse, an analyst at Cantor Fitzgerald, has signaled further bullishness on Micron stock over the next 12 months.
On June 29, Muse reiterated a ‘Buy’ rating for Micron stock, according to a note shared with clients analyzed by Finbold. Muse raised the 12-month price target for Micron Technology stock from $1,500 to $2,000, thus a potential 65.15% upside from press time.
On June 28, Yik Ban Chong, an analyst at Phillip Securities, reiterated a ‘Buy’ rating on the stock. Chong increased Micron Technology’s 12-month price target from $530 to $1,870, implying a 76.63% upside.
The analyst expects the industry memory shortage to persist beyond 2027. As such, Chong believes this could enable Micron Technology to secure additional agreements with both existing and new customers in the coming quarters.
What’s the average Micron stock price target from Wall Street analysts? At the time of reporting, MU stock has received an average rating of ‘Strong Buy’ from 30 Wall Street analysts over the past 30 days, based on data from TipRanks. As such, Wall Street analysts have set an average target price of $1,556 for Micron Technology stock over the next 12 months.
MU stock price forecast. Source: TipRanks The highest MU stock price forecast was about $2,200, while the lowest prediction was at approximately $1,100.
MU stock price outlook The company’s stock market has rallied more than 296% year to date (YTD), currently trading at around $1,132.33 at the time of reporting.
Micron Technology stock chart YTD. Source: Finbold As a result, MU stock valuation was at roughly $1.3 trillion at the time of publication. With Wall Street analysts anticipating a further upsurge over the next 12 months, Micron stock valuation could rise significantly.
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Micron Technology (NASDAQ: MU | MU Price Prediction) and Apple (NASDAQ: AAPL) just reported earnings that expose who holds the AI era’s supply chain leverage. Micron posted a record fiscal Q3 with an 84.9% non-GAAP gross margin. Apple delivered its best March quarter ever at $111.184 billion while flagging reliance on third parties for components as a core risk.
HBM Inhales Wafers. iPhone 17 Carries Cupertino. Micron’s quarter was a memory squeeze made visible. Revenue hit $41.456 billion, up 345.72% year over year, with DRAM prices up in the low-60s% range. CEO Sanjay Mehrotra told investors “DRAM and NAND industry demand continues to significantly exceed industry supply” and that tightness extends beyond calendar 2027. HBM4 is already in volume, with over $1 billion in HBM4 revenue shipped.
Apple leaned on the consumer franchise. iPhone revenue reached $56.994 billion, Services hit an all-time high at $30.976 billion, and Tim Cook credited “extraordinary demand for the iPhone 17 lineup“. Gross margin landed at 46.9%, healthy for hardware but a fraction of Micron’s number.
Floor Pricing vs. Sticker Shock The real story sits in Micron’s contracts. Mehrotra disclosed 16 Strategic Customer Agreements covering roughly 20% of DRAM volume and one-third of NAND volume, with RPO of approximately $100 billion. Crucially, “gross margins at the floor will be well beyond the peaks we experienced in prior cycles.” That is a polite way of saying customers signed away the downside.
Apple sits on the receiving end. According to industry context, Cupertino has been pressured to accept higher memory prices to defend hardware margins from the memory tax. The buyback machine is enormous, with a fresh $100 billion buyback authorization, yet the input costs still flow through Boise.
Lens Micron Apple Gross Margin 84.9% 46.9% Core Bet HBM4 and SCA lock-ins iPhone 17 and Services Key Vulnerability Lead-customer concentration Consumer sticker shock The iPhone 18 Cycle Will Test Both Polymarket pegs 96.2% odds on an iPhone 18 launch in 2026, meaning Apple’s next mass build hits during the tightest memory window in years. I will be watching whether Micron’s Q4 revenue guide of $50.0B and EPS of $31.00 holds as hyperscaler order books refresh, and whether Apple’s Services moat can mask hardware margin compression once consumers see the new price tags.
Why the Supplier Looks Structurally Advantaged, With Caveats For exposure to the side dictating terms in this cycle, Micron looks structurally advantaged right now. The $100 billion RPO floor and forward P/E near 7x tell me the cash flow is not fully priced in yet, even after a 296.92% year-to-date move. Apple offers a steadier profile: a $100 billion buyback and Services growth cushion the input shock. Both names carry downside risk if hyperscaler capex blinks. Memory cycles always end. This one just has unusually strong contractual scaffolding.
As of the end of last week, shares of Micron Technology (MU 1.59%) were up close to 300% since the beginning of the year. It has been among the hottest stocks to own. But what may surprise you is that despite such impressive gains, it's still not the best-performing stock on the S&P 500.
The one S&P 500 stock that's been outperforming Micron this year is Sandisk (SNDK 4.26%). Its gains of over 780% have dwarfed Micron's performance. It's also a big name in the memory market, and so it may not be all that surprising that it's been doing well given the ongoing supply shortages. The big question, however, is whether it can still go higher.
Image source: Getty Images.
Sandisk's seemingly modest valuation may have been attracting more investors Although Sandisk's stock is up a staggering amount this year, with a market cap of around $300 billion, it's nowhere near what Micron is worth right now (close to $1.2 trillion). For growth investors, that could make the memory stock a more appealing buy, with the hope that it might have more room to rise higher in the long run.
Ironically, however, in terms of earnings, Sandisk is the more expensive stock to own. Based on analyst expectations, it's trading at a forward price-to-earnings (P/E) multiple of 32 while Micron trades at a multiple of just seven. The S&P 500, meanwhile, averages a forward P/E multiple of 21. When based on earnings, there's a stronger case to be made for Micron to rally higher than there is for Sandisk.
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Is Sandisk stock still worth buying? Sandisk's stock has been red hot, and its financial performance has also been impressive. Revenue was up 251% in the quarter ending April 3, totaling just under $6 billion. And its bottom line flipped from a loss of $1.9 billion a year ago to a profit of more than $3.6 billion this past quarter. Demand for its flash memory products remains high, as is evident in its guidance for the current quarter, which calls for revenue of up to $8.3 billion and for gross margin to be up around 81%.
Sandisk's stock may still rise higher due to its strong results, but with its valuation ballooning and becoming much more significant of late, its returns from here on out may be more limited. Ultimately, I think there are many cheaper and better tech stocks to consider instead of Sandisk.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
Key Takeaways Micron's data center revenues topped $25B in Q3 FY26, led by robust AI-driven demand.Micron is expanding AI memory products, including HBM4, HBM4E, DDR5 RDIMMs and PCIe Gen6 SSDs.Micron has 16 multi-year customer agreements that improve long-term data center revenue visibility. Micron Technology's (MU - Free Report) booming data center business has become its biggest growth driver, positioning the company to benefit from sustained AI infrastructure investments. In third-quarter fiscal 2026, the company's data center revenues exceeded $25 billion, representing an annualized run rate of more than $100 billion, while data center SSD revenues more than doubled sequentially. Management attributed this momentum to robust AI-driven demand, with hyperscalers requiring greater memory bandwidth and capacity for increasingly complex AI workloads. The company expects DRAM and NAND demand to continue outpacing industry supply beyond 2027, supporting favorable pricing and revenue growth.
Micron is further strengthening its position through advanced AI memory products, including HBM4, HBM4E, high-capacity DDR5 RDIMMs and next-generation PCIe Gen6 SSDs, enabling it to capture higher-value opportunities across AI servers and cloud infrastructure. The company is also benefiting from 16 multi-year Strategic Customer Agreements, which provide committed supply arrangements and improve long-term revenue visibility from leading data center customers.
Beyond the quarterly results, Micron reinforced its AI data center strategy during COMPUTEX 2026 by expanding its end-to-end AI memory and storage portfolio, and its recent strategic collaboration in June 2026 with Anthropic further strengthens its role in next-generation AI infrastructure. With AI adoption accelerating across cloud computing, enterprise applications and emerging inference workloads, Micron appears well-positioned to sustain strong data center growth.
Continued product leadership, expanding customer commitments and structural industry supply constraints could provide additional upside for the company's revenues over the coming years, supporting the Zacks Consensus Estimate for annual revenue growth of 224.96% in fiscal 2026 and 83.21% in fiscal 2027.
How Micron Is Tackling AI Data Center CompetitionNVIDIA (NVDA - Free Report) holds a broader competitive advantage through its full-stack AI platform spanning GPUs, networking, software and systems. NVIDIA emphasizes integrated AI infrastructure and ecosystem expansion, while Micron supplies critical HBM memory. NVIDIA benefits from larger AI infrastructure opportunities, stronger platform lock-in and superior ecosystem scale.
Compared with Micron’s memory-centric AI strategy, Marvell Technology (MRVL - Free Report) competes through custom AI silicon, networking and optical interconnects for hyperscale data centers. Marvell Technology prioritizes cloud infrastructure partnerships and connectivity solutions, complementing Micron’s HBM offerings. Marvell Technology gains strength from custom chip design, networking expertise, and expanding AI infrastructure demand.
MU’s Share Price Performance, Valuation & EstimatesMicron shares have surged 286.9% in the past six-month period, outperforming the Zacks Computer-Integrated Systems industry’s 129.3% rally and the broader Computer and Technology sector’s return of 11.8%.
MU’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MU trades at a forward price/sales (P/S) ratio of 6.24x, slightly lower than the sector’s average of 6.35x. The company carries a Value Score of F.
MU Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Micron’s earnings per share is pegged at $64.26 for fiscal 2026 and $124.34 for fiscal 2027. These projections imply year-over-year growth of 675.15% for fiscal 2026 and 93.49% for fiscal 2027 and have been revised upward over the past 30 days for both fiscal years.
Image Source: Zacks Investment Research
Micron currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron reported $41.46 billion in revenue, nearly 85% gross margin, and record cash flow, while guidance significantly exceeded Wall Street expectations. 16 take-or-pay agreements through 2030 secured $22 billion of customer commitments, fundamentally improving revenue visibility and pricing stability. AI demand now exceeds available memory supply through at least 2028, with HBM, enterprise SSDs, and agentic AI driving structural shortages.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Three times the current price would put Micron Technology (NASDAQ:MU | MU Price Prediction) somewhere around $3,000 a share. That is a number that sits above every published Wall Street target on the stock. The only way there runs through a memory supercycle that lasts longer and runs hotter than even bulls currently model. Let’s take a look at how Micron could get there, even though Goldman Sachs has a sharp counter to the whole exercise.
The June quarter that re-rated DRAM and HBM Micron’s fiscal third quarter, reported June 24, forced analysts to redraw their spreadsheets. Revenue came in at $41.456 billion, up 345.72% year over year from $9.30 billion. Non-GAAP EPS landed at $25.11 against a $20.2843 consensus. GAAP gross margin printed 84.6%, against 37.7% a year earlier. Operating cash flow of $25.388 billion in a single quarter argues for structural change beyond a normal cyclical bounce.
CEO Sanjay Mehrotra was direct about why. “The memory industry has been structurally transformed by the proliferation of AI.” Management has signed 16 strategic customer agreements with take-or-pay terms that represent roughly $100 billion in remaining performance obligations and projected $22 billion in customer cash deposits and related commitments.
The strategic supply agreement with Anthropic disclosed June 22, 2026 is the headline example. Mehrotra also said HBM can fill only 50% to two-thirds of demand in 2026.
The bull thesis writes itself from there. Micron is one of only three HBM suppliers, alongside SK Hynix and Samsung. It crossed $1 trillion in market cap in May. Year to date the stock is up 296.92%. Q4 guidance of $50 billion in revenue and $31.00 in non-GAAP EPS implies the trajectory is accelerating.
What a 3x from here actually requires At roughly $1,046.96 on June 29, a 3x outcome puts shares near $3,000. Every sell-side target sits below that. UBS is the Wall Street high near $1,625. Bank of America, Needham, Stifel and TD Cowen cluster between $1,300 and $1,600. Post-earnings, Susquehanna and DA Davidson have pushed to $2,000, which is the most aggressive published number on the desk and still well short of the headline scenario.
To get to $3,000, you need a stack of three things to break right. First, EPS power has to climb past the $31.00 ± $1.00 Q4 guide into a sustained run rate few analysts will underwrite today. Second, the multiple has to hold or expand, even though the trailing P/E already sits around 26x and the forward P/E near 7x reflects estimates that have not yet caught up to guidance.
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Third, the take-or-pay contracts have to do what Mehrotra claims, which is convert memory into something closer to a utility deserving a premium for predictable cash flows. Each of those is defensible. Obviously, none is guaranteed.
The bear case Goldman is making Goldman Sachs sits at roughly $900. Their argument is that today’s near 85% gross margins represent a cycle peak that will normalize lower. Memory has always been a synchronized capacity business, and SK Hynix, Samsung and Micron are all spending.
Micron itself guided full-year FY2026 capex to approximately $27 billion, with ID1 on track for first wafer output in mid-calendar 2027 and ID2 in late-calendar 2028. When that bit supply lands, even strong AI demand will compress pricing power. CFO Mark Murphy effectively conceded the point on the call, saying “we are at margin levels where incremental price yields less gross margin expansion.”
There is also concentration risk. Lead-customer dependence on HBM4, hyperscaler research into memory compression techniques that could cut usage by up to 40x, and the historical track record of memory cycles ending badly all sit on this side of the ledger.
The verdict The fair read is that Micron is a different company than it was 24 months ago, and the multi-year contracts genuinely change the cyclicality argument. A double over a few years is defensible on the numbers in hand.
A triple requires the supercycle to extend deep into 2028 and beyond, with margins holding far above prior peaks. Bulls have current data. Bears have cycle history. Both are right until one of them is not.
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OpenAI’s ChatGPT has built an ideal $1,000 stock portfolio for the second half of 2026, focusing on companies positioned to benefit from the ongoing artificial intelligence infrastructure boom.
The portfolio was created after analyzing U.S. stock market fundamentals, earnings trends, AI-related capital spending, interest rate risks, and sector-specific growth opportunities.
The resulting allocation is concentrated in companies at the center of AI infrastructure, cloud computing, semiconductors, and enterprise software.
The portfolio is designed for investors seeking growth through the remainder of 2026, a period expected to be driven by rising AI spending, strong corporate earnings, and continued demand for data center infrastructure.
H2 2026 $1,000 allocation Nvidia (NASDAQ: NVDA) received the largest allocation at 25%, representing a $250 investment. The chipmaker remains at the center of the AI boom as the leading supplier of AI accelerators powering data centers built by major cloud providers.
Microsoft (NASDAQ: MSFT) secured a 20% weighting, equivalent to $200. Alongside its AI exposure through Azure, the company benefits from diversified revenue streams across enterprise software, cloud services, and productivity applications.
Another 20% of the portfolio was allocated to Broadcom (NASDAQ: AVGO). The semiconductor and infrastructure software company has emerged as a key beneficiary of growing demand for custom AI chips and networking equipment needed to support large-scale AI deployments.
Micron Technology (NASDAQ: MU) ranked fourth with a 15% allocation, or $150. The company is benefiting from strong demand for high-bandwidth memory, a critical component used in AI servers that is expected to remain supply-constrained through much of 2026.
ChatGPT also allocated 10% of the portfolio to Oracle (NASDAQ: ORCL), representing a $100 position. Rising demand for AI-related cloud infrastructure has helped drive growth in the company’s cloud business and contract backlog.
Rounding out the portfolio is Palantir Technologies (NASDAQ: PLTR), which received the remaining 10%, or $100. The software company continues expanding its presence in both government and commercial AI markets, providing direct exposure to growing AI adoption.
Explaining AI dominance The portfolio is built around what many analysts view as the market’s strongest investment theme in AI infrastructure spending.
In this line, hyperscalers are expected to invest hundreds of billions of dollars in AI infrastructure this year, driving demand across semiconductors, cloud computing, networking, and enterprise software. As a result, AI and semiconductor stocks remain among the market’s strongest earnings-growth opportunities.
However, ChatGPT identified several risks, noting that many AI-related stocks trade at elevated valuations following strong gains over the past two years.
Persistent inflation and higher interest rates could pressure growth stocks, while any slowdown in AI spending could weigh on earnings and broader sector performance.
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Zillow economists just published their updated 12-month forecast, projecting that U.S. home prices—as measured by the Zillow Home Value Index—will shift -0.2% between May 2026 and May 2027.
That’s a tiny downward revision from its 12-month national forecast published in April (+0.1%) and its 12-month national forecast published in March (+0.5%).
U.S. home prices, as measured by the Zillow Home Value Index, are currently up 0.8% year over year. Zillow’s latest 12-month outlook (-0.1%) expects national home prices to remain near that subdued pace.
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As long as national home price growth remains below U.S. wage growth (currently up 3.5%), underlying fundamentals should continue to improve as overheating from the pandemic housing boom gets smoothed out. If that trend continues—and mortgage rates don’t spike—national housing affordability should also continue to gradually improve.
While Zillow’s national home price forecast isn’t negative, it isn’t exactly bullish either. Analysts are predicting a soft national housing market in 2026, one where national housing affordability may improve slightly as U.S. income growth outpaces U.S. home price growth.
What type of regional variation does Zillow anticipate over the next 12 months?
Key Takeaways ABT expects CGM sales to return to double-digit growth after temporary second-quarter headwinds ease.ABT secured CE Mark for Libre Duo and Libre Duo 10 Day with dual glucose and ketone sensing.Abbott sees broader Volt and TactiFlex Duo PFA rollout boosting Electrophysiology growth acceleration. Abbott (ABT - Free Report) generates the largest share of its revenues from the Medical Devices unit. Sales in 2025 reached $21.39 billion, up 11.9% from the prior-year levels. That strength continued into the first quarter of 2026, with revenues rising 8.5% on a comparable basis, led by the strong performance of its cardiovascular device businesses. Abbott believes its investments in the foundational businesses like Rhythm Management and Vascular continue to pay off, even as the traditionally higher-growth segments draw most of the attention. With the July 16 second-quarter 2026 earnings approaching, several recent developments and pipeline progress are expected to help sustain this momentum, with some expected to have a greater impact as the year progresses and beyond.
In Diabetes Care, continuous glucose monitoring (CGM) sales will likely return to the double-digit growth in the second quarter, after temporary headwinds from delays in the renewal process related to an international tender and difficult prior-year comparisons. Abbott expanded the portfolio by recently securing CE Mark for Libre Duo and Libre Duo 10 Day, the world's first-ever dual glucose-ketone sensing technology designed to continuously measure glucose and ketone levels every minute.
Further, Rhythm Management could continue outperforming the broader market, supported by the strong adoption of the AVEIR leadless pacemaker. Together with ongoing investments in conduction system pacing and other novel technologies, Abbott believes the $10 billion Rhythm Management market offers substantial room to expand share and drive sustainable long-term growth.
Meanwhile, the Heart Assist Devices portfolio for the treatment of chronic and temporary conditions is expected to remain a strong contributor to the Heart Failure business. In Electrphysiology, Abbott expects growth to accelerate as it broadens the rollout of Volt and TactiFlex Duo Pulsed Field Ablation (PFA) catheters.
ABT’s Peer Activity in FocusMedtronic (MDT - Free Report) recently completed the acquisition of Scientia Vascular, a privately held medical device company in Salt Lake City. The deal is valued at $550 million, subject to customary adjustments, with potential undisclosed earn-out and milestone payments post-acquisition. The addition of Scientia's access technologies is expected to boost Medtronic’s Neuroscience Portfolio.Financially, the deal is expected to be minimally dilutive to the company’s adjusted EPS in FY 2027 and accretive thereafter.
Quest Diagnostics’ (DGX - Free Report) Haystack MRD test has been approved by the New York State Department of Health's Clinical Laboratory Evaluation Program. The circulating tumor DNA liquid biopsy test is meant for use in identifying residual or recurring disease in patients with a range of solid tumor cancers. Quest Diagnostics developed the test under CLIA regulations and has been available for clinician ordering since late 2024 in 49 states and the District of Columbia.
ABT’s Price Performance, Valuation & EstimatesOver the past year, ABT shares have plunged 30.8% compared with the industry’s 28% decline.
Image Source: Zacks Investment Research
In terms of valuation, Abbott is trading at a forward, five-year Price/Sales (P/S) of 3.11X, lower than its 4.63X median but above its industry average of 2.16X.
Image Source: Zacks Investment Research
Here’s how consensus estimates for Abbott’s 2026 and 2027 earnings have been shaping up.
Image Source: Zacks Investment Research
Abbott currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With the S&P 500 looking historically expensive at 31 times earnings, it's a good time to buy a few defensive dividend stocks to hedge against a market crash. These stocks might also swoon during a downturn, but they'll reward patient investors with steady income. If you reinvest those dividends, you'll also accumulate more shares at lower prices.
The healthcare sector is a good place to find stable dividend stocks, as the market leaders usually generate ample cash and are well insulated from macro headwinds. These three pharma giants check those boxes and are arguably no-brainer income plays right now: AbbVie (ABBV +0.23%), Johnson & Johnson (JNJ +0.94%), and Pfizer (PFE 0.37%).
Image source: Getty Images.
AbbVie AbbVie struggled after its blockbuster autoimmune disease drug, Humira, lost its U.S. patent exclusivity in 2023. But it offset that pressure with two newer immunology drugs, Skyrizi and Rinvoq, which it expects to generate combined sales of over $31 billion by 2027. It's also spent more than $20 billion on acquisitions over the past three years to diversify its portfolio.
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AbbVie has raised its dividend every year since its spin-off from Abbott Laboratories (ABT 0.05%) in 2013. It currently pays a forward yield of 2.7%, and its dividends only consumed 59% of its free cash flow (FCF) over the past 12 months.
Wall Street expects AbbVie's adjusted EPS to grow 42% in 2026 and 14% in 2027, driven by its Skyrizi and Rinvoq, the expansion of its neuroscience business, the stabilization of its oncology portfolio, and its resilient sales of Botox (which it gained from its takeover of Allergan in 2019). At 18 times forward earnings, it still looks like a bargain in this frothy market.
Johnson & Johnson Johnson & Johnson has raised its dividend for 64 consecutive years. After its 50th dividend hike, it became a Dividend King. It currently pays a forward yield of 2.1%, and its trailing payout ratio of 60% gives it plenty of room for future increases.
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Over the past few years, J&J streamlined its business by divesting its slower-growth segments. Today, it only operates two core businesses: Innovative Medicine, which sells pharmaceutical products; and MedTech, which sells medical devices.
The Innovative Medicine segment -- which sells higher-margin, patent-protected drugs for cancer, autoimmune diseases, cardiopulmonary conditions, and neurological disorders -- is driving most of its growth. Its blockbuster psoriasis drug, Stelara, lost its patent exclusivity in the U.S. last year. Still, it expects its sales of newer drugs -- including Tremfya for autoimmune disorders and Icotye for psoriasis -- to offset that pressure.
Analysts expect J&J's adjusted EPS to rise 7% in 2026 and 10% in 2027. Its stock still looks reasonably valued at 22 times forward earnings, and its scale and diversification will enable it to easily recover from the next market downturn.
Pfizer Pfizer's stock soared during the pandemic as its sales of COVID-19 vaccines skyrocketed, but it plummeted after the pandemic ended. To fill that void, Pfizer acquired more companies (including the oncology company Seagen in 2023) but struggled to keep pace with its peers in the GLP-1 race. At the same time, several of its top-selling drugs faced patent cliffs.
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However, Pfizer recently reached settlements with three generic drugmakers to extend the patent protection of Vyndamax, one of its best-selling drugs, through 2031. That extension will buy it more time to expand its respiratory vaccine, oncology, and GLP-1 portfolios.
Pfizer's stock will remain in the penalty box until those tailwinds kick in, but it looks dirt cheap at 8 times forward earnings and pays a hefty forward yield of 7.1%. Its dividend payments eclipsed its EPS and FCF over the past 12 months, and it hasn't raised its payout for over a year, but it will likely only slash its dividend as a last resort if its turnaround efforts fizzle out. It's a riskier play than AbbVie and J&J, but it also has a lot more upside potential if it plays its cards right.
Key Takeaways Eli Lilly reached an all-time high after Jaypirca's positive CHMP opinion and Medicare pricing updates.LLY's Jaypirca label expansion filing now heads to the EC after CHMP backed broader CLL use.Eli Lilly will offer eligible Medicare Part D patients Zepbound and Foundayo for $50 monthly. Shares of Eli Lilly (LLY - Free Report) rose more than 7% on Friday after the company announced several positive developments related to its marketed products.
An EMA advisory committee recommended approving the company’s filing seeking label expansion for the oncology drug Jaypirca (pirtobrutinib) to treat adults with chronic lymphocytic leukemia (CLL) across all lines of therapy.
The momentum was further boosted after Lilly announced that its popular obesity drugs, Zepbound and Foundayo, will be available via Medicare for $50 per month starting from July 1, 2026.
LLY Stock PerformanceFollowing these announcements, Lilly's shares climbed to an all-time high of $1,215.76. While neither development materially changes the company's near-term outlook, both strengthen its long-term growth prospects. Expanded Medicare access to its obesity drugs could improve patient affordability and support continued growth for its blockbuster metabolic franchise. Meanwhile, the positive recommendation for Jaypirca not only strengthens Lilly's oncology portfolio but also diversifies its growth across therapeutic areas.
Year to date, the stock has risen 12.4% compared with the industry’s 11.6% growth.
Image Source: Zacks Investment Research
CHMP Backs Lilly’s Filing for Jaypirca Label ExpansionJaypirca is currently approved in the European Union to treat adult patients with relapsed or refractory CLL who have been previously treated with a BTK inhibitor. The latest CHMP opinion supports expanding its use to adults with CLL across all lines of therapy, regardless of prior BTK inhibitor treatment, significantly broadening the drug's potential patient population.
Lilly’s regulatory filing has now been referred to the European Commission (“EC”), with a final decision expected within the next one to two months. While the EC is not obligated to follow the CHMP's recommendation, it generally does.
The positive opinion is supported by positive data from two late-stage studies. One study evaluated Jaypirca against a chemoimmunotherapy regimen (bendamustine plus rituximab) in treatment-naïve CLL patients. The other compared Lilly’s cancer pill with AbbVie’s (ABBV - Free Report) /J&J’s (JNJ - Free Report) Imbruvica (ibrutinib) in treatment-naïve patients as well as previously treated patients who were BTK inhibitor-naïve. A similar regulatory filing is also under review with the FDA, with a final decision expected before this year’s end.
Medicare Access Expands Reach of Lilly's Obesity DrugsLilly also announced that eligible Medicare Part D beneficiaries prescribed Zepbound or Foundayo for obesity will be able to access the medicines for $50 per month starting next month. The initiative is aimed at improving affordability and expanding access to the company's two obesity drugs, the once-weekly injection Zepbound and daily pill Foundayo.
The move could further strengthen Lilly's competitive position against Novo Nordisk (NVO - Free Report) , which markets Wegovy in both injectable and oral formulations. While Lilly's obesity therapies have demonstrated superior efficacy in clinical studies, NVO's Wegovy products have a longer commercial track record and a well-established safety and tolerability profile. By improving affordability for Medicare beneficiaries, Lilly could further expand the reach of its obesity franchise in an increasingly competitive market. The company estimates that 20 million Medicare patients could meet clinical criteria for obesity medicines.
LLY Zacks RankEli Lilly currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The AI investment story has shifted repeatedly over the past year. Investors first piled into semiconductor companies, then power producers, networking firms, and data center infrastructure providers as the race to build AI capacity accelerated.
Software companies, however, became the market’s biggest casualty after fears emerged that AI agents could replace many traditional software applications altogether. The result was one of the broadest selloffs the software sector has experienced in years. Yet markets have a habit of overshooting, and recent trading suggests investors are beginning to rethink whether the AI threat was ever quite as severe as first believed.
The AI Panic Went Too Far The spark came at the end of January when Anthropic unveiled 11 new plug-ins for its Claude Cowork AI platform. The update expanded Claude’s ability to automate workflows across legal services, finance, marketing, and other white-collar professions. Investors immediately concluded that AI agents would bypass many software applications altogether.
The selling was relentless. Over just six trading days, software and IT services companies collectively lost nearly $1 trillion in market value as investors rushed toward AI infrastructure stocks instead. Many of the industry’s biggest names have since fallen 40% or more from their highs despite continuing to post healthy revenue growth and recurring subscription income.
The selling was remarkably indiscriminate. Companies serving different customers, industries, and use cases were lumped together under the assumption that AI would eventually replace them all.
JPMorgan published a list of software companies it believed were well-positioned to benefit from AI rather than be disrupted by it. The firm’s view was straightforward: companies with large customer bases, proprietary enterprise data, and established workflows were more likely to integrate AI than lose customers to it.
That view received an endorsement from Goldman Sachs CEO David Solomon, who said, “There’ll be winners and losers — plenty of companies will pivot and do just fine.”
AI will almost certainly reshape enterprise software, but disruption rarely affects every company equally. Some applications become obsolete. Others become more valuable by embedding AI directly into products customers already use every day.
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The Rotation May Already Be Starting Recent trading suggests investors are beginning to recognize that difference. Several software companies that endured some of the steepest declines have posted strong gains over the past few sessions. Shares of ServiceNow (NYSE:NOW | NOW Price Prediction), Salesforce (NYSE:CRM), and Adobe (NASDAQ:ADBE) have all risen 10% or more as investors rotated into some of the market’s biggest laggards.
At the same time, many AI infrastructure leaders — including networking, connectivity, and other AI bottleneck stocks that dominated in recent weeks — have stumbled as investors locked in profits after exceptional gains.
That doesn’t necessarily signal the end of the AI infrastructure trade. Demand for semiconductors, networking equipment, memory, and data centers remains supported by hundreds of billions of dollars in planned hyperscale capital spending over the next several years.
Instead, it may signal something healthier: investors are broadening their view of who benefits from AI.
Key Takeaway In short, investors shouldn’t abandon the companies building AI’s infrastructure. Those businesses remain essential to the long-term expansion of artificial intelligence.
That said, markets rarely reward chasing yesterday’s biggest winners forever. Some of the highest-quality software companies now trade near multi-year valuation lows after losing 40% or more during the AI panic, despite continuing to grow revenue and generate substantial free cash flow.
Granted, not every SaaS company will emerge stronger. Some business models will struggle as AI agents become more capable. But others will use AI to deepen customer relationships, automate workflows, and expand their competitive advantages.
Ultimately, smart investors don’t have to choose between AI infrastructure and AI applications. Taking partial profits in stocks that have already delivered outsized gains while gradually accumulating well-positioned software leaders at discounted valuations could prove to be one of the better opportunities created by this year’s AI-driven volatility.
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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.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Dynamics (GD - Free Report) Headquartered in Falls Church, VA, General Dynamics Corporation engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. The company was incorporated in February 1952.
GD 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 20.9; value investors should take notice.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.29 to $16.59 per share. GD boasts an average earnings surprise of +5.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GD should be on investors' short list.
Shares of CVS Health (CVS - Free Report) have been strong performers lately, with the stock up 14.7% over the past month. The stock hit a new 52-week high of $106.15 in the previous session. CVS Health has gained 31.5% since the start of the year compared to the 1.4% gain for the Zacks Medical sector and the -1.8% return for the Zacks Medical Services industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, CVS Health reported EPS of $2.57 versus consensus estimate of $2.21 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, CVS Health is expected to post earnings of $7.44 per share on $409 in revenues. This represents a 10.22% change in EPS on a 1.72% change in revenues. For the next fiscal year, the company is expected to earn $8.37 per share on $425.13 in revenues. This represents a year-over-year change of 12.5% and 3.94%, respectively.
Valuation MetricsWhile CVS Health has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CVS Health has a Value Score of A. The stock's Growth and Momentum Scores are C and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.7X. On a trailing cash flow basis, the stock currently trades at 7X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 1.02. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making CVS Health an interesting choice for value investors.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, CVS Health currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CVS Health fits the bill. Thus, it seems as though CVS Health shares could still be poised for more gains ahead.
How Does CVS Stack Up to the Competition?Shares of CVS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Concentra Group Holdings Parent, Inc. (CON - Free Report) . CON has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Concentra Group Holdings Parent, Inc. beat our consensus estimate by 14.29%, and for the current fiscal year, CON is expected to post earnings of $1.53 per share on revenue of $2.33 billion.
Shares of Concentra Group Holdings Parent, Inc. have gained 21.4% over the past month, and currently trade at a forward P/E of 19.72X and a P/CF of 15.12X.
The Medical Services industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CVS and CON, even beyond their own solid fundamental situation.
Decentralized exchange Oxium will shut down on Aug. 1 after prolonged weak market conditions made the business financially unsustainable, becoming the latest casualty of a difficult environment for smaller crypto trading platforms.
In a statement published on X, the team behind the Sei-based decentralized exchange said declining revenue had made it impossible to continue operating despite years of development on the network. Users have been advised to close positions, cancel open orders and withdraw assets before the web interface is taken offline on Aug. 1, although the protocol’s smart contracts will remain accessible for recovering funds.
The closure underscores the pressure facing smaller decentralized finance protocols as trading volumes remain concentrated among a handful of dominant exchanges and liquidity providers. Even as Bitcoin trades near historic highs, many DeFi applications continue to struggle to generate sufficient fees to sustain development teams.
Team Cites Revenue Collapse Rather Than Security Problems Unlike many recent DeFi shutdowns triggered by hacks or exploits, Oxium said its closure is purely financial.
“After careful consideration, we have made the difficult decision to wind down Oxium,” the team wrote. “Prolonged unfavorable market conditions have left our revenue too low to sustain operations, and running the platform is no longer financially viable.”
The team emphasized that user assets remain secure because they are held in smart contracts rather than under the platform’s custody.
Users have until Aug. 1, 2026 to use the Oxium interface to withdraw assets. After that date, funds will remain recoverable directly through the underlying smart contracts, although the process will become significantly more technical.
Oxium Wind Down Details Reason for closure Insufficient revenue Blockchain Sei Interface shutdown Aug. 1, 2026 User assets Remain recoverable through smart contracts User action requested Withdraw funds before interface closes Crypto Recovery Has Not Reached Every Protocol The announcement illustrates an increasingly visible divide within the digital asset industry.
While Bitcoin, stablecoins and institutional infrastructure businesses have experienced renewed growth during 2025 and 2026, many smaller decentralized applications continue facing declining activity. Liquidity has become increasingly concentrated among larger exchanges, perpetual futures platforms and dominant DeFi protocols, making it difficult for smaller venues to attract sufficient trading volume.
Why Smaller DeFi Platforms Continue To Shut Down
Challenge Impact Lower trading volumes Reduced protocol fees Liquidity concentration Harder to attract traders High development costs Operating losses increase Competition from major exchanges Revenue pressure intensifies For decentralized exchanges, transaction fees remain the primary source of operating revenue. When trading activity slows, protocol income can fall rapidly while engineering, infrastructure and security costs remain largely fixed.
Oxium’s statement suggests that the platform ultimately reached the point where operating expenses exceeded sustainable fee generation.
Users Retain Custody Of Assets The team stressed that customer assets remain safe because the protocol operates through smart contracts.
Rather than freezing withdrawals, Oxium is encouraging users to exit while its interface remains online. After Aug. 1, users would need to interact directly with blockchain contracts to recover assets, a process that typically requires greater technical knowledge and specialized wallet tools.
That distinction highlights one of decentralized finance’s key structural differences from centralized exchanges. Even when a protocol’s operating company closes, properly designed smart contracts can continue functioning independently of the original development team.
FinanceFeeds recently covered MoonPay’s acquisition of AI finance platform Entendre, Galaxy Digital’s investment in institutional crypto lending infrastructure, Zero Hash’s expansion into staking infrastructure, Payward’s continued global licensing expansion, and Bitcoin Suisse’s MiCAR licence. While institutional crypto infrastructure continues attracting investment and regulatory approvals, Oxium’s closure shows that smaller DeFi trading venues remain under significant commercial pressure.
Industry Consolidation Continues Oxium’s shutdown reflects a broader consolidation trend across digital assets, where capital and liquidity continue flowing toward larger, better-capitalized platforms.
For users, the immediate priority is withdrawing assets before the interface disappears. For the industry, the announcement serves as another reminder that successful blockchain technology alone does not guarantee a sustainable business model if trading activity and protocol revenue fail to reach critical scale.
Takeaway Oxium is closing because its business became economically unsustainable, not because of a security breach or technical failure. The announcement highlights an increasingly important reality in crypto markets: while institutional adoption continues accelerating, many smaller DeFi platforms remain unable to generate enough trading activity to support long-term operations. As liquidity concentrates around larger ecosystems, commercial viability is becoming just as important as technological innovation.
Kraken is listing a batch of Bittensor subnet alpha tokens, marking the first time a major centralized exchange has opened the door to these specialized AI-focused assets. Until now, trading these tokens meant navigating on-chain AMM pools or scraping together liquidity on smaller platforms.
The listed tokens include Chutes AI (Subnet 64), Targon Compute (Subnet 4), Webuildscore, Lium io, Ridges ai, Hippius subnet, and VantaTrading. For a network that has quietly built one of the most ambitious decentralized AI ecosystems in crypto, getting shelf space on Kraken is a meaningful shift in visibility.
What are subnet alpha tokens, and why should you care Think of Bittensor as a decentralized marketplace for AI services, broken into specialized divisions called subnets. Each subnet handles a different job. Chutes AI, for example, focuses on serverless AI inference, essentially letting developers run AI models without managing their own servers. Targon Compute provides decentralized verifiable AI compute.
Bittensor currently operates over 128 active subnets, each with its own alpha token. These tokens function as direct exposure to a specific subnet’s performance, emissions, and revenue generation. In English: buying a subnet alpha is like buying equity in one department of a larger company, rather than buying the parent company’s stock (which would be TAO itself).
The mechanism that makes all of this possible is called dynamic TAO, or dTAO. Introduced in late 2025 or early 2026, dTAO allows each subnet to issue its own token that trades against TAO through on-chain automated market maker pools. Before dTAO, the only way to interact with Bittensor’s economics was through the TAO token. Now each subnet has its own price signal, its own liquidity, and its own market dynamics.
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Leading subnets like Chutes and Targon have already achieved market caps in the tens to over $100 million range.
Why Kraken’s move matters Before this listing, subnet alpha tokens lived almost entirely on-chain. There was one isolated instance of a subnet token trading on MEXC, but for the most part, accessing these assets required comfort with decentralized trading infrastructure. That’s a meaningful barrier for retail investors, and an even bigger one for institutions that need regulated, familiar platforms.
Kraken stepping in brings centralized exchange liquidity, cleaner price discovery, and the kind of accessibility that attracts a much broader investor base. Kraken already supported the core TAO token. This expansion into subnet-level assets signals the exchange sees commercial viability in the deeper layers of the Bittensor ecosystem, not just the top-level token.
The bigger picture for decentralized AI Bittensor’s subnet architecture creates a genuine marketplace where different teams compete to provide the best AI services. The dTAO mechanism turns that competition into tradeable assets, letting the market price each subnet’s contribution in real time.
With 128-plus subnets operating and their alpha tokens now reaching major exchanges, the Bittensor ecosystem is transitioning from a niche experiment to something that resembles a functioning decentralized AI economy. Each subnet’s token acts as a real-time gauge of market confidence in that subnet’s utility and revenue potential.
Unlike many crypto tokens that derive value purely from speculation, subnet alphas are tied to actual economic output. When a subnet like Chutes AI processes inference requests, that activity flows into the token’s value proposition.
What this means for investors Subnet alpha tokens introduce a new layer of granularity for crypto investors interested in AI infrastructure. Instead of making a broad bet on the Bittensor network through TAO, investors can now take targeted positions on specific subnets they believe will outperform.
The risk side of the ledger is straightforward: subnet tokens are narrower bets with less liquidity than TAO, even with Kraken’s support. A subnet that loses validators, faces technical issues, or gets outcompeted by a rival subnet could see its alpha token decline sharply. The dTAO mechanism means these tokens are ultimately priced relative to TAO, so a broad TAO selloff would drag subnet tokens down regardless of individual subnet performance.
For investors evaluating these assets, the key metrics to monitor are each subnet’s compute utilization rates, revenue generation, validator count, and market cap relative to its economic output.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
