The Iridium 9604 Module and Development Kit streamline global IoT development with integrated satellite, cellular, and GNSS connectivity
, /PRNewswire/ -- Iridium Communications Inc. (Nasdaq: IRDM), a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, today announced commercial availability of the Iridium® 9604 module and Development Kit, giving developers, OEMs, and solution providers a faster path to build and scale connected IoT solutions worldwide.
Iridium 9604 Module and Development Kit Combining Iridium Short Burst Data® (SBD®) satellite connectivity, LTE-M cellular, and GNSS positioning, the Iridium 9604 module delivers a compact, integrated solution for global IoT deployments. Alongside the Iridium 9604 Development Kit, developers can rapidly prototype, test, and validate hybrid satellite, cellular, and GNSS applications with resources that simplify integration and streamline deployment workflows.
Built on the u-blox SARA-R5 platform, the Iridium 9604 is designed to reduce hardware complexity, lower integration costs, and accelerate time to market for connected solutions operating across industrial, infrastructure, transportation, mobility, utilities, maritime, and remote monitoring applications. The integrated design helps reduce board space requirements by 60 percent or more while simplifying RF routing, power architecture, and firmware development.
"The Iridium 9604 module and Development Kit represent a major milestone in making truly global IoT connectivity more accessible and easier to deploy," said Tim Last, executive vice president, Iridium. "By replacing three separate components with one integrated solution, developers can simplify device design, reduce costs, and create smarter, location-aware products capable of staying connected far beyond terrestrial coverage."
Early developers and beta participants reported significant operational and economic benefits from the platform's integrated architecture.
"The Iridium 9604 has enabled us to develop a truly global asset tracking solution without relying on terrestrial network infrastructure. Its reliable coverage, compact form factor, and straightforward integration have significantly accelerated our development process and allowed us to focus on optimizing the end-user experience," said Askar Gabit, CEO, GPSOne. "For applications in remote and challenging environments, the Iridium network provides the confidence that critical data can be delivered when it matters most."
The Iridium 9604 gives developers independent control over satellite, LTE-M, and GNSS subsystems, enabling flexible implementation of failover logic, location-aware connectivity decisions, and application-specific routing strategies. A unified AT command set and comprehensive SDK resources further simplify development and integration.
Built for scalable and power-sensitive IoT applications, the Iridium 9604 features a compact 16 mm x 26 mm x 2.4 mm form factor optimized for deployments where size, resiliency, and efficiency are critical. The platform supports GPS, GLONASS, Galileo, and BeiDou GNSS services alongside LTE-M (Cat-M1) and Iridium's 100% global L-band satellite network.
The Iridium 9604 represents the next evolution of Iridium's broader IoT strategy, expanding beyond traditional satellite-only hardware to support unified, multi-mode connectivity architectures. The Iridium network now supports multiple IoT pathways, including dedicated Iridium SBD modules, Iridium NTN DirectSM standards-based direct-to-device capabilities, and larger payload connectivity through the Iridium Certus® 9704 module.
Operating on the world's only truly global mobile satellite network, the Iridium 9604 delivers reliable connectivity across remote land areas, oceans, airways, and polar regions where other networks are unavailable or unreliable.
To learn more about the Iridium 9604 IoT module, visit: www.iridium.com/9604
To order the Iridium 9604 Development Kit, visit: www.iridium.com/9604-devkit
For more information about Iridium, visit: www.iridium.com
About Iridium Communications Inc.
Iridium Communications Inc. (Nasdaq: IRDM) operates the world's only truly global mobile satellite network, delivering reliable voice, data, and positioning, navigation and timing (PNT) services anywhere on Earth. Iridium supports safety- and mission-critical operations for diverse markets such as aviation, maritime, government, emergency services, critical infrastructure, autonomous systems, and remote monitoring applications, where connectivity is essential. Headquartered in McLean, Virginia, Iridium provides its products and services through an ecosystem of 500-plus partner companies around the world. For more information, visit www.iridium.com.
Forward-Looking Statements Disclosure
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The Company has based these statements on its current expectations and the information currently available to us. Forward-looking statements in this press release include statements regarding the capabilities, benefits and availability of the Iridium 9604, expected demand by developers and the suitability of the Iridium 9604 for dual-mode IoT deployments across industrial, infrastructure, and mobility applications. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding the company's ability to maintain the health, capacity and content of its satellite constellation, general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 12, 2026, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium's forward-looking statements speak only as of the date of this press release, and Iridium undertakes no obligation to update or revise any forward-looking statements.
HPQ signed an LOI with LN Innov' and Novacium SAS to evaluate a Canadian-based platform integrating advanced batteries, electric motors and propulsion systems for North American drone and defense markets. HPQ has direct exposure to the proposed platform through their 36.8% equity interest in Novacium SAS and exclusive North American commercialization rights. More than 20 customers have tested LN Innov electric propulsion systems, and more than a dozen have subsequently placed commercial orders. LN Innov is presently scaling up its manufacturing capacity to reach up to 20,000 drone motors per month in France by the end of Q3 2026. Novacium's advanced battery technologies are currently being evaluated by French drone manufacturers introduced through LN Innov for potential integration into future drone platforms. , /PRNewswire/ - HPQ Silicon Inc. ("HPQ" or the "Company") (TSXV: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in advanced materials innovation and next-generation industrial processes, today announced that it signed a Letter of Intent ("LOI") with LN Innov' ("LN Innov"), a French developer and manufacturer of high-performance electric propulsion systems, and Novacium SAS ("Novacium") on June 16 2026, during the 2026 edition of the Eurosatory exhibition in Paris, France.
HPQ holds a 36.8% equity interest in Novacium and exclusive North American commercialization rights to its technologies.
"As drones become increasingly critical across commercial, industrial and defense applications, governments and industry are recognizing that batteries and electric propulsion systems have become strategic technologies," said Bernard Tourillon, President and CEO of HPQ Silicon. "Today, much of that supply chain remains concentrated in Asia, creating vulnerabilities that many jurisdictions are actively working to reduce. Through our partnership with Novacium and this new collaboration with LN Innov, we have an opportunity to evaluate the adaptation of an industrial model currently being deployed in Europe for North American markets, combining advanced battery technologies with proven electric propulsion expertise. For HPQ, this represents another step in our broader strategy of identifying innovative technologies with demonstrated market potential and positioning the Company to assess potential commercialization opportunities across North America."
Scope of the LOI
The LOI establishes a framework for HPQ, Novacium and LN Innov to evaluate, over the next 190 days, the feasibility of establishing a Canadian-based platform integrating Novacium's battery technologies, to be sold under the HPQ ENDURA+ brand and LN Innov's electric propulsion systems for drone, robotics and defense markets across North America.
The parties have already completed preliminary technical reviews that supported the decision to enter into this LOI. The evaluation contemplated under the LOI will focus primarily on industrialization, manufacturing, supply-chain requirements, certification pathways, target applications, business structure and potential commercialization strategies for North American markets.
The LOI is non-binding, does not grant exclusivity and does not include financial commitments, payment obligations or minimum purchase requirements. Any future collaboration would remain subject to further evaluation and the negotiation of definitive agreements.
Any future collaboration would remain subject to further evaluation and the negotiation of definitive agreements.
There can be no assurance that the evaluation activities contemplated by the LOI will result in the execution of a definitive agreement or any commercial arrangement between the parties.
LN Innov' Sovereign High-Performance Electric Propulsion Platform
Electric motors are at the heart of every autonomous platform, directly influencing performance, efficiency and thrust-to-weight ratio. LN Innov' develops and manufactures high-performance propulsion systems for a broad range of applications, including FPV drones, interception systems, surveillance platforms and payload-delivery drones.
More than 20 customers operating in the drone, robotics and defense sectors have tested LN Innov's electric motors under operating conditions, and more than a dozen customers have subsequently placed commercial orders.
These activities support LN Innov's ongoing efforts to expand its production capacity in France, with the objective of scaling its manufacturing capability to up to 20,000 drone motors per month by the end of Q3 2026. The parties intend to evaluate whether elements of this industrial model could be adapted for North American markets.
"We are still at the beginning of this adventure, but the market signals are encouraging," said Nathalie Mazeau, President of LN Innov'. "Having more than 20 customers test our motors and seeing more than a dozen subsequently place orders provides valuable feedback regarding the performance of our technology. This Letter of Intent creates an opportunity to explore how our industrial and technological expertise, combined with Novacium's advanced battery technologies and HPQ's North American presence, could contribute to the development of an electric propulsion ecosystem in North America."
As drone adoption continues to expand across commercial, industrial and defense applications, operators seek battery solutions that balance energy density, reliability, safety and manufacturability.
Novacium is developing silicon-enhanced battery technologies intended for drone and autonomous-system applications. As part of its ongoing development activities, Novacium has produced battery configurations designed to meet operating requirements commonly used in current drone platforms, including systems delivering approximately 15 Ah capacity, 21.3 V nominal voltage and energy densities near 205 Wh/kg.
Novacium's advanced silicon-enhanced battery technologies are being developed to meet these requirements while providing a pathway toward future higher-energy-density solutions.
Novacium's battery technologies are currently being evaluated by industrial and defense-sector participants to assess their suitability for integration into future drone and autonomous-system platforms.
The proposed collaboration with LN Innov provides an opportunity to evaluate the integration of Novacium's advanced battery technologies, marketed under the HPQ ENDURA+ brand, into complete electric propulsion systems for drone, robotics and autonomous-system applications in North America.
"One of the most important developments in our battery program is that manufacturers are evaluating our technologies against defined operational requirements," said Jed Kraiem, COO of Novacium. "The collaboration with LN Innov creates an opportunity to assess how advanced battery technologies and high-performance electric propulsion systems can be combined into integrated solutions for drone, robotics and autonomous-system applications."
About HPQ Silicon
HPQ Silicon Inc. is a Quebec-based TSX Venture Exchange industrial issuer (TSX-V: HPQ) focused on innovation in advanced materials and critical process development. In partnership with its research and development partner Novacium—of which HPQ is a shareholder—the Company is advancing next-generation silicon-based anode materials (Gen3 and Gen4) for batteries, commercializing its ENDURA+ lithium-ion cells, and developing breakthrough clean-hydrogen and waste-to-energy technologies, for which HPQ holds exclusive North American rights.
HPQ is also pursuing proprietary technologies to become a low-cost, zero-CO₂ producer of fumed silica with technical support from PyroGenesis Inc. Together, these initiatives position HPQ to capture growth opportunities in the energy storage, clean hydrogen, and advanced materials markets essential to achieving global net-zero goals.
For more information, please visit HPQ Silicon web site.
About NOVACIUM SAS
Novacium is an innovative technology start-up created in 2022, in France. It is an engineering and R&D company dedicated to materials for energy, with a specialization in silicon and hydrogen. Novacium is developing 2 technologies. The first concerns a new silicon-based anode material that significantly increases the capacity of Li-ion batteries. Novacium's second activity is the generation of hydrogen. Novacium is developing an autonomous hydrogen generation system for civil and military applications fueled by a patented alloy based on silicon and aluminum.
About LN Innov'
LN Innov' is a French technology company specialized in high-performance electric propulsion systems for drones and unmanned platforms. The company develops next-generation motors and integrated propulsion solutions delivering industry-leading power-to-weight ratios, efficiency and reliability. Through its Groupe Moto-Propulseur strategy, LN Innov' is building a complete ecosystem integrating batteries, power electronics, motors and propulsion
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking statements. These statements rely on assumptions about technology performance, market demand, permits, financing, supply chains, and economic conditions but remain subject to significant risks, including delays, regulatory challenges, competition, pricing, financing availability, and macroeconomic uncertainties. Actual outcomes may differ materially from expectations. Detailed risk factors are outlined in HPQ's Annual Information Form available on SEDAR+. Forward-looking information is provided solely to outline management's future expectations and objectives.
A more detailed cautionary note regarding forward-looking information related to the HPQ Endura+ batteries project is available for download [here].
Further information regarding the Company is available in the SEDAR+ database (www.sedarplus.ca), and on the Company's website at: http://www.hpqsilicon.com/
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release is available on the company's CEO Verified Discussion Forum, a moderated social media platform that enables civilized discussion and Q&A between Management and Shareholders.
Strategic acquisition of 3rd largest self-storage platform in Canada expected to create long-term internal and external growth opportunities
Transaction valued at $1.2 billion and primarily funded with Public Storage Operating Partnership Units (“OPUs”)
Acquisition to provide attractive going-in NOI yield in the high-5’s, significant operational upside on 83% occupied portfolio, and double-digit IRR potential
FRISCO, Texas--(BUSINESS WIRE)--Public Storage (NYSE: PSA) (“Public Storage” or the “Company”), the largest owner of self-storage facilities, today announced that its operating partnership, Public Storage OP, L.P. (“Public Storage OP”), and Public Storage Operating Company (“PSOC”) have entered into an agreement to acquire Public Storage Canada (“PS Canada”) in a transaction valued at approximately $1.2 billion USD ($1.67 billion CAD). The PS Canada platform was built by industry visionary and Public Storage founder Wayne Hughes and has been independently owned and operated by the Hughes family under the Public Storage® brand for decades. The acquisition is expected to expand Public Storage’s platform in major Canadian markets with long-term growth driven by high household incomes, strong relative population growth, and low supply per capita compared to the U.S.
Under the terms of the transaction, PSOC will pay consideration worth approximately $1.2 billion at closing, consisting of approximately $889 million of Public Storage OP units (2.76 million OPUs, valuing each such unit at $321.98 per unit) and approximately $310 million in cash, subject to customary purchase price adjustments. The transaction will also include an opportunity for the sellers to receive earn-out consideration of up to $288 million in Public Storage OP units priced at $375 per unit, contingent on the achievement of certain NOI performance targets. All values are represented in USD. The transaction was entered into with Tamara Hughes Gustavson and family pursuant to the Company’s existing Right-of-First-Offer (“ROFO”) and Right-of-First-Refusal (“ROFR”), providing attractive pricing due to off-market purchase.
Strategic Rationale
Public Storage believes the acquisition offers compelling strategic benefits, including:
gaining exposure to a growing Canadian self-storage industry with low supply ratios; revenue and operational upside through the PS Next™ operating platform; a platform opportunity in major Canadian markets, including expanded acquisition, new development, expansion, and lending opportunities; an existing Public Storage®-branded portfolio that reduces upfront capital expenditures and minimizes customer disruption; and allows for low-cost CAD-denominated borrowing to fund recently announced external growth. Portfolio Highlights
The portfolio consists of 68 properties totaling 5.3M square feet. PS Canada had Q1 2026 same-store occupancy of 83.1% with same store rents of $23.24 (USD) per occupied square foot. The portfolio is located in the key Canadian markets of Toronto, Vancouver, Montreal, Calgary, and Ottawa. These markets benefit from low supply per capita (well below the U.S. average) and the portfolio features robust 3-mile trade area populations and household incomes.
Financial Highlights
Public Storage expects the acquisition to provide:
an attractive going-in NOI yield in the high-5’s; high-single-digit compounding NOI growth near-term as synergies and operational upside are realized, driven by implementation of the PS NextTM operating platform with key areas of focus on customer experience, rental revenue, operating expense efficiencies, and tenant reinsurance; accretive to long-term portfolio IRR, NOI growth, and FFO per share growth given attractive basis and cash flow upside; and leverage-neutral OP unit funding that retains balance sheet strength for future opportunities. The transaction is expected to close in the second half of 2026, subject to the satisfaction of customary closing conditions.
Tom Boyle, CEO, said, “The acquisition of PS Canada represents a strategic opportunity to expand the Public Storage platform into major Canadian markets with attractive long-term fundamentals. This portfolio includes high-quality real estate in key markets, carries the Public Storage brand, and offers meaningful upside through our PS Next™ operating platform. Together with our previously announced National Storage Affiliates Trust transaction, this acquisition demonstrates the momentum of our value creation engine and the opportunity to deploy capital into highly strategic external growth opportunities. We are grateful to Tamara Hughes Gustavson and family for the opportunity to acquire this exceptional portfolio, which was thoughtfully built and operated for many decades. We are humbled by their continued confidence in the Company through a meaningful further investment as part of this transaction.”
Advisors
Scotiabank is serving as the financial advisor to Public Storage. Wachtell, Lipton, Rosen & Katz and Torys LLP are serving as legal advisors, and Kekst CNC is serving as strategic communications advisor to Public Storage. Eastdil Secured is serving as financial advisor, and Allen Matkins Leck Gamble Mallory & Natsis LLP and Osler, Hoskin & Harcourt LLP are serving as legal advisors to the sellers.
About Public Storage
Public Storage, a member of the S&P 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At March 31, 2026, the Company: (i) owned and/or operated 3,546 self-storage facilities located in 40 states with approximately 259 million net rentable square feet in the United States and (ii) owned a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 333 self-storage facilities located in seven Western European countries with approximately 19 million net rentable square feet operated under the Shurgard® brand. Public Storage is headquartered in Frisco, Texas.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this communication, other than statements of historical fact, are forward-looking statements, which may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” and similar expressions. These forward-looking statements involve known and unknown risks and uncertainties, which may cause actual events to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to, risks relating to the Transaction, including the ability to realize the anticipated benefits of the Transaction and the parties’ ability to satisfy the closing conditions to consummating the Transaction, including required regulatory approvals, and complete the Transaction on the proposed terms or on the anticipated timeline, if at all. Additional factors that could affect future results of the Company can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2026, in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2026, filed with the SEC on April 27, 2026, and in the Company’s other filings with the SEC. Public Storage does not undertake any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise.
Key Takeaways Public Storage plans a $1.2B acquisition of Public Storage Canada, entering major Canadian markets.The 68-property portfolio has 5.3M square feet and first-quarter 2026 occupancy of 83.1%.PSA expects a high-5% NOI yield and potential double-digit internal rates of return over time. Public Storage (PSA - Free Report) is taking a major step beyond its core U.S. footprint with a planned $1.2 billion acquisition of Public Storage Canada. The deal gives PSA an immediate presence in several major Canadian markets, including Toronto, Vancouver, Montreal, Calgary and Ottawa, instead of building that network one property at a time.
The move is expected to benefit Public Storage by adding a well-known self-storage brand in markets with strong population growth, high household incomes and relatively lower storage supply than the United States. The portfolio includes 68 properties and 5.3 million net rentable square feet, with first-quarter 2026 occupancy of 83.1%, leaving room for better pricing and operations over time.
Public Storage expects the acquisition to deliver a going-in NOI yield in the high-5% range and potential double-digit internal rates of return over the long run. The company also plans to use its PS Next operating platform to improve revenue management, control costs, enhance customer experience and grow tenant reinsurance income.
The consideration will comprise $889 million in Public Storage OP units and $310 million in cash, subject to adjustments. Sellers may also receive up to $288 million in additional OP units if certain NOI performance targets are met.
The Canada deal comes as Public Storage is already pursuing another large transaction. Its pending acquisition of National Storage Affiliates Trust is valued at about $10.5 billion. Together, these moves show a clear focus on scale and market reach. In first-quarter 2026, PSA reported core FFO of $4.22 per share, up 2.4% from a year earlier.
For investors, the key point is that Public Storage is not just buying assets; it is buying future growth channels. Canada gives PSA a solid platform in attractive urban markets, while the use of operating partnership units helps preserve balance sheet flexibility. However, the deal still needs to close, and execution will matter, but it adds another reason to watch Public Storage as a large, disciplined player in self-storage.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 19.5%, outperforming the industry's growth of 10.2%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Equinix, Inc. (EQIX - Free Report) and Prologis, Inc. (PLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Equinix’s 2026 FFO per share is pinned at $42.93. This indicates projected year-over-year growth of 12%.
The Zacks Consensus Estimate for Prologis’ 2026 FFO per share is pegged at $6.18. This calls for year-over-year growth of 6.37%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
After soaring to new highs in 2026, CrowdStrike (CRWD +1.03%) announced its first-ever stock split. When trading opens on June 2, a 4-for-1 split of CrowdStrike's shares will go into effect.
Before CrowdStrike's stock officially splits, it's important to understand exactly what this means (and doesn't mean) for you as an investor before you open your brokerage account and find four times the number of shares you bought.
Image source: Getty Images.
Like most processes involving publicly traded companies, such as dividend distributions, there are a few dates that you might hear when it comes to stock splits. With CrowdStrike:
June 25 (record date)-Every shareholder of record as of the close of trading on this date will receive three additional shares. July 1 (distribution date)-The additional shares will be distributed after the close of trading on this date. July 2 (effective date)-CrowdStrike stock will start trading on a split-adjusted basis on this date. Here's a key takeaway before we move on. For most investors, the effective date of July 2 is the only one you'll notice. If you own shares of CrowdStrike in your brokerage account, they'll trade normally until the end of the day on July 1. When you log into your brokerage account the following morning, you'll notice the split adjustments.
What the split does (and doesn't) mean Here's exactly what will change when you log into your brokerage account on July 2:
You'll notice there are four times the number of shares you previously owned. If you owned 50 shares of CrowdStrike prior to the split, you'll now have 200 shares in your account. The share price will be (approximately) one-fourth of what it was pre-split. As of this writing, CrowdStrike trades for about $694 per share. If this were the price at the time of the split, each share would be worth $173.50 after the split went into effect. If you own CrowdStrike options, you will have four times the number of contracts, and the strike price of each will be divided by four as well. Because the number of shares is multiplying by four and the share price is being divided by four, the net effect on the value of your investment is neutral. Stock splits are generally intended to make a stock with a high share price more accessible to investors. They don't have any effect on the value of the business, the percentage of ownership your investment represents, or the company's fundamentals.
Will CrowdStrike's split boost the stock price? As a final thought, although the mechanics of a stock split don't change the value of a business all by themselves, a stock split is a sign of confidence by management. In simple terms, CrowdStrike is implying that its stock price will remain elevated and that the split is necessary to ensure it is accessible to investors.
The recent results from the business back this up. In the most recent quarter, CrowdStrike's net new annual recurring revenue grew 32%, cash flow reached an all-time high, and earnings per share came in well above expectations. Plus, it's looking more like the agentic AI revolution will be a net tailwind for the business and its cybersecurity platform, not a disruptive force. After all, agentic AI could create a new generation of security threats, and companies positioned to help fight them could be big winners.
The bottom line is that CrowdStrike's upcoming stock split doesn't change anything with your investment, other than the number of shares. The overall economic interest you have in CrowdStrike will remain the same. Having said that, a stock split like this is usually a sign of confidence that management believes there's still significant upside ahead.
AUSTIN, Texas & NEW YORK--(BUSINESS WIRE)--AWS Summit New York – CrowdStrike (NASDAQ: CRWD) today announced that it is expanding Project QuiltWorks with Amazon Web Services (AWS), extending the coalition from the technology, services, and financial protection to mitigate frontier AI risk, to the attack surface where vulnerabilities live and are exploited. As frontier AI collapses the window between vulnerability and exploitation – marking a significant inflection point in cybersecurity history.
CrowdStrike expands Falcon AI Detection and Response protections for AI applications built on AWS and broadens Falcon platform access through AWS Marketplace free trials and new cloud-scale integrations
AUSTIN, Texas & NEW YORK--(BUSINESS WIRE)--AWS Summit New York -- CrowdStrike (NASDAQ: CRWD), in collaboration with Amazon Web Services (AWS), today announced new AI, cloud, and Next-Gen SIEM innovations that help organizations securely build, deploy, and operate AI applications and cloud workloads on AWS.
CrowdStrike is expanding CrowdStrike Falcon® AI Detection and Response (AIDR) capabilities on AWS, helping organizations identify and mitigate AI runtime risks across AI applications built with AWS technologies including Amazon Bedrock, Kiro, and Strands Agents.
CrowdStrike is also expanding CrowdStrike Falcon® platform availability in AWS Marketplace with new 30-day free trials for CrowdStrike Falcon® Next-Gen SIEM, CrowdStrike Falcon® Cloud Security, and CrowdStrike Falcon® Endpoint Security on a pay-as-you-go basis. New Quick Start connectors for Amazon CloudWatch and Amazon Simple Storage Service (Amazon S3) access logs help streamline onboarding and accelerate time-to-value. AWS PrivateLink cross-region support further simplifies cloud-scale security operations on AWS.
Securing AI Applications on AWS
As organizations operationalize AI agents and autonomous workflows on AWS, CrowdStrike is helping customers securely build, deploy, and scale AI applications across the AI development and deployment lifecycle. Building on CrowdStrike's designation as an inaugural AWS Agentic AI Specialization Partner and the companies' broader work advancing secure frontier AI innovation through Anthropic's Project Glasswing initiative, CrowdStrike is extending visibility and protection across customer AI applications built on AWS.
Falcon AIDR delivers real-time security evaluation of agent, LLM, and Model Context Protocol (MCP) communications to help stop prompt injection, sensitive data leakage, and malicious AI activity. CrowdStrike is extending these protections across AI applications built on AWS, including applications developed with Kiro, agents built with Strands Agents, and workloads running on Amazon Bedrock, helping organizations identify and mitigate AI runtime risks while maintaining continuous visibility across the AI development and deployment lifecycle.
The CrowdStrike Falcon MCP integration for Kiro enables developers to securely access CrowdStrike intelligence, detections, and security context directly within coding workflows, creating real-time feedback loops during agentic application development. Together with Falcon Next-Gen SIEM and Falcon Cloud Security, organizations can secure their broader AI workload stack on AWS by protecting non-human identities and credentials, governing data flows, and assessing Amazon Bedrock and AWS service misconfigurations, enabling customers to accelerate AI adoption with confidence.
"Organizations are rapidly moving AI applications from experimentation into production," said Daniel Bernard, chief business officer at CrowdStrike. “Together, CrowdStrike is helping customers securely build, deploy, and operate AI-powered applications on AWS, with protection that spans development, runtime, identities, and cloud infrastructure."
Expanding Flexible Access to Falcon on AWS
Following the flexible pay-as-you-go consumption model introduced for the Falcon platform in AWS Marketplace, the new 30-day free trials make it easier for organizations to experience Falcon Next-Gen SIEM, Falcon Cloud Security and Falcon Endpoint Security before transitioning to consumption-based pricing, accelerating onboarding and time-to-value.
Accelerating Cloud-Scale Security Operations on AWS
Building on recent Falcon Next-Gen SIEM integrations for AWS services including AWS Security Hub, Amazon GuardDuty, and AWS CloudTrail, CrowdStrike is introducing new AWS Quick Start connectors for Amazon CloudWatch and Amazon S3 access logs, streamlining onboarding and helping organizations rapidly ingest AWS telemetry at scale across multi-account, multi-region AWS deployments.
CrowdStrike is also introducing AWS PrivateLink cross-region support, enabling organizations to securely route Falcon platform traffic across the AWS backbone while reducing internet exposure and data transfer costs.
Together, these capabilities help organizations accelerate investigations, simplify operations, and optimize security at cloud scale.
For more information on the CrowdStrike and AWS collaboration, visit CrowdStrike at AWS Summit New York Booth #438.
Forward-Looking Statements
This press release may include discussion of unreleased services or features. Any unreleased services or features referenced here are still in development and subject to change. Customers should make their purchase decisions based upon features that are currently available.
About CrowdStrike
CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.
CrowdStrike: We stop breaches.
Learn more: https://www.crowdstrike.com/
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Start a free trial today: https://www.crowdstrike.com/trial
AWS Summit New York -- CrowdStrike (NASDAQ: CRWD), in collaboration with Amazon Web Services (AWS), today announced new AI, cloud, and Next-Gen SIEM innovations that help organizations securely build, deploy, and operate AI applications and cloud workloads on AWS.
CrowdStrike is expanding CrowdStrike Falcon® AI Detection and Response (AIDR) capabilities on AWS, helping organizations identify and mitigate AI runtime risks across AI applications built with AWS technologies including Amazon Bedrock, Kiro, and Strands Agents.
CrowdStrike is also expanding CrowdStrike Falcon® platform availability in AWS Marketplace with new 30-day free trials for CrowdStrike Falcon® Next-Gen SIEM, CrowdStrike Falcon® Cloud Security, and CrowdStrike Falcon® Endpoint Security on a pay-as-you-go basis. New Quick Start connectors for Amazon CloudWatch and Amazon Simple Storage Service (Amazon S3) access logs help streamline onboarding and accelerate time-to-value. AWS PrivateLink cross-region support further simplifies cloud-scale security operations on AWS.
Securing AI Applications on AWS
As organizations operationalize AI agents and autonomous workflows on AWS, CrowdStrike is helping customers securely build, deploy, and scale AI applications across the AI development and deployment lifecycle. Building on CrowdStrike's designation as an inaugural AWS Agentic AI Specialization Partner and the companies' broader work advancing secure frontier AI innovation through Anthropic's Project Glasswing initiative, CrowdStrike is extending visibility and protection across customer AI applications built on AWS.
Falcon AIDR delivers real-time security evaluation of agent, LLM, and Model Context Protocol (MCP) communications to help stop prompt injection, sensitive data leakage, and malicious AI activity. CrowdStrike is extending these protections across AI applications built on AWS, including applications developed with Kiro, agents built with Strands Agents, and workloads running on Amazon Bedrock, helping organizations identify and mitigate AI runtime risks while maintaining continuous visibility across the AI development and deployment lifecycle.
The CrowdStrike Falcon MCP integration for Kiro enables developers to securely access CrowdStrike intelligence, detections, and security context directly within coding workflows, creating real-time feedback loops during agentic application development. Together with Falcon Next-Gen SIEM and Falcon Cloud Security, organizations can secure their broader AI workload stack on AWS by protecting non-human identities and credentials, governing data flows, and assessing Amazon Bedrock and AWS service misconfigurations, enabling customers to accelerate AI adoption with confidence.
"Organizations are rapidly moving AI applications from experimentation into production," said Daniel Bernard, chief business officer at CrowdStrike. “Together, CrowdStrike is helping customers securely build, deploy, and operate AI-powered applications on AWS, with protection that spans development, runtime, identities, and cloud infrastructure."
Expanding Flexible Access to Falcon on AWS
Following the flexible pay-as-you-go consumption model introduced for the Falcon platform in AWS Marketplace, the new 30-day free trials make it easier for organizations to experience Falcon Next-Gen SIEM, Falcon Cloud Security and Falcon Endpoint Security before transitioning to consumption-based pricing, accelerating onboarding and time-to-value.
Accelerating Cloud-Scale Security Operations on AWS
Building on recent Falcon Next-Gen SIEM integrations for AWS services including AWS Security Hub, Amazon GuardDuty, and AWS CloudTrail, CrowdStrike is introducing new AWS Quick Start connectors for Amazon CloudWatch and Amazon S3 access logs, streamlining onboarding and helping organizations rapidly ingest AWS telemetry at scale across multi-account, multi-region AWS deployments.
CrowdStrike is also introducing AWS PrivateLink cross-region support, enabling organizations to securely route Falcon platform traffic across the AWS backbone while reducing internet exposure and data transfer costs.
Together, these capabilities help organizations accelerate investigations, simplify operations, and optimize security at cloud scale.
For more information on the CrowdStrike and AWS collaboration, visit CrowdStrike at AWS Summit New York Booth #438.
Forward-Looking Statements
This press release may include discussion of unreleased services or features. Any unreleased services or features referenced here are still in development and subject to change. Customers should make their purchase decisions based upon features that are currently available.
About CrowdStrike
CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.
CrowdStrike: We stop breaches.
Learn more: https://www.crowdstrike.com/
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Start a free trial today: https://www.crowdstrike.com/trial
CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) is a stock worth owning for decades because cybersecurity has quietly become a non-negotiable utility, and the Falcon platform now sits at the center of how the world’s largest enterprises secure both their existing infrastructure and the new wave of AI workloads that businesses cannot switch off even during a downturn.
For a retirement-focused investor who has been burned chasing trends, the appeal here is the structural reality that long-term tech analysts keep returning to: cybersecurity has shifted from a discretionary corporate expense to a non-negotiable utility, and CrowdStrike stands out as the gold standard in end-user and cloud security thanks to its cloud-native Falcon platform.
Pillar 1: Durability of the Business CrowdStrike’s revenue is overwhelmingly recurring. In the most recent quarter, $1.32 billion of $1.39 billion in Q1 revenue came from subscriptions, and total ARR reached $5.51 billion, up 24% year over year. Customers are deepening their commitment: 51% of customers now run 6 or more modules, 35% run 7 or more, and 25% run 8 or more. The platform is wired into AWS, Microsoft, NVIDIA, Google Cloud, OpenAI, Anthropic, IBM, and Salesforce, which makes Falcon less a vendor and more a layer of enterprise plumbing.
CEO George Kurtz framed the position bluntly: “CrowdStrike is AI security infrastructure, critical to successful AI adoption.” That is the language of a utility.
Pillar 2: Compounding Through Free Cash Flow CrowdStrike pays no dividend, so the compounding case rests on free cash flow and buybacks. Q1 free cash flow reached $468.5 million, up 66.76% year over year, at a 34% margin. Full-year FY26 free cash flow was $1.24 billion, and the company holds $4.55 billion in cash against $949.4 million remaining under its share repurchase program. Management already repurchased $175.6 million of stock in Q1 FY27. Management’s long-range marker is $20 billion in ending ARR by FY36, a goal supported by FY27 EPS guidance of $4.88 to $4.96.
Pillar 3: Surviving Market Cycles Enterprises freeze hiring before they freeze endpoint protection. Gross retention sits at 97%, and CrowdStrike is the first pure-play cybersecurity company to reach $5.25 billion in ending ARR. Analyst sentiment confirms the durability of the franchise, with 43 buy ratings against 1 sell.
The Scenario Where It Underperforms The underperformance case is a risk-off market. CrowdStrike trades at a forward earnings multiple of 141x, and in a sharp bear market, high-multiple software names compress first. The stock has already run 45.7% year to date and 178.86% over five years, so drawdowns of 30% or more are part of the ride. That volatility does not change the forever thesis. The recurring revenue keeps compounding, the buyback keeps shrinking the share count, and the platform keeps absorbing new attack surfaces as AI agents proliferate. Owners who stop watching the quote stay aligned with the cash flows.
The thesis rewards long-term ownership over short-term trading.
CrowdStrike Holdings (CRWD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this cloud-based security company have returned +5.7%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Security industry, which CrowdStrike falls in, has gained 11.5%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
CrowdStrike is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +25.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -10%.
The consensus earnings estimate of $4.93 for the current fiscal year indicates a year-over-year change of +32.2%. This estimate has changed -8.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.24 indicates a change of +26.7% from what CrowdStrike is expected to report a year ago. Over the past month, the estimate has changed +1.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, CrowdStrike is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of CrowdStrike, the consensus sales estimate of $1.44 billion for the current quarter points to a year-over-year change of +23.2%. The $5.94 billion and $7.23 billion estimates for the current and next fiscal years indicate changes of +23.5% and +21.6%, respectively.
Last Reported Results and Surprise HistoryCrowdStrike reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +25.6%. EPS of $1.1 for the same period compares with $0.73 a year ago.
Compared to the Zacks Consensus Estimate of $1.36 billion, the reported revenues represent a surprise of +1.7%. The EPS surprise was +2.8%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
CrowdStrike is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about CrowdStrike. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Palo Alto Networks (PANW +1.65%) could be one of the biggest winners from the invisible artificial intelligence cybersecurity war. CrowdStrike (CRWD +1.03%) remains a powerful competitor, but Palo Alto's broader platform strategy, cheaper valuation, and enterprise consolidation opportunity may give investors a more compelling risk-reward setup today.
Stock prices used were the market prices of June 11, 2026. The video was published on June 21, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
CrowdStrike Holdings Inc. NASDAQ: CRWD is up approximately 45% in 2026, making it one of the best-performing stocks of 2026. However, CRWD is down approximately 10% since reporting solid earnings on June 3.
That dip comes even though the company’s board approved a 4-for-1 stock split. Shareholders of record as of June 25 will receive three additional shares for every share they own, and the stock is expected to begin trading on a split-adjusted basis on July 2.
Get CrowdStrike alerts:
A stock split can increase shareholder value indirectly, but by itself, shouldn’t be a reason to buy or sell a stock. Instead, investors ought to look at the company’s fundamentals and its valuation.
CrowdStrike Just Delivered a Strong ReportIt's hard to overstate the strength of CrowdStrike’s recent earnings report. The cybersecurity company beat on the top and bottom lines. Revenue of $1.39 billion was up 26% year-over-year (YOY). Earnings per share (EPS) growth was even stronger with the company’s $1.10 coming in 51% higher YOY.
A key metric for cybersecurity companies is annual recurring revenue (ARR). CrowdStrike’s Falcon platform has had a significant flywheel effect in which companies sign up for one or more services and not only continue to use those services but also add additional modules over time. That’s a key reason why the company raised its net new ARR growth guidance for the current fiscal year by 520 basis points to 27.7%.
Look Past the Split: What Actually Supports CRWDSimply put, there's a difference between price and value. A stock split doesn't change a company's valuation, so the fact that CrowdStrike will soon trade at a more accessible price won't make the stock a better value than it was pre-split.
And on traditional valuation metrics—price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B)—CRWD looks expensive, so investors focused on those measures may find better options elsewhere. The bull case for the stock rests less on it being cheap and more on other factors.
One of those is that the company is betting on itself. CrowdStrike recently announced a $500 million increase to its prior authorization, bringing the new authorization to approximately $1.5 billion. Companies don’t increase a buyback authorization without the free cash flow (FCF) to support it.
Another is index membership. CRWD is part of the S&P 500 index, and it was the fastest cybersecurity company to achieve that milestone. It also means the stock is included in many of the largest technology and cybersecurity-focused exchange-traded funds (ETFs) and index funds. Over 71% of the stock’s shares are owned by institutions.
The takeaway for investors: a lofty share price doesn't appear to be keeping people away from the stock.
Why You Shouldn’t Discount the SplitThe split won't change CRWD's valuation, but it could still change how investors respond to the stock—and with more retail investors in the market than ever, that psychology matters.
Many retail investors prefer not to own fractional shares, even though the option is available to them. For those investors, seeing CRWD trade for under $200 is likely to hold significantly more appeal. That’s particularly true for growth-focused investors. CrowdStrike doesn’t pay a dividend, so aside from buybacks, stock price appreciation is the primary compensation for shareholders.
To be clear, none of this is the "right" reason to buy CRWD—a split creates no real value. But markets aren't perfectly efficient, and sometimes how investors feel about a price matters as much as the underlying valuation.
A Cautiously Bullish ChartCRWD is trading around $690, well extended above its 50-day simple moving average (SMA) at $571.48. That gap signals strong momentum, but also elevated short-term risk.
The stock staged a powerful breakout in May, surging from the $400s to a high near $790 before pulling back into a consolidation range around $680–$720. That pullback appears healthy rather than bearish, with price holding well above the 50-day SMA.
The relative strength index sits at 59, with the signal line at 61. The bearish RSI cross visible on the chart coincides with the recent peak. That's a classic momentum fade following an overbought reading above 80. Current RSI levels are neutral-to-bullish, leaving room to run without immediate overbought pressure.
Adding to that optimism, volume remains constructive, supporting the thesis that institutional buyers absorbed the breakout. The dotted resistance line near $760–$780 is the key level to watch on the next leg higher.
Should You Invest $1,000 in CrowdStrike Right Now?Before you consider CrowdStrike, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CrowdStrike wasn't on the list.
While CrowdStrike currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- Presidio, a leading global digital services and AI solutions provider, today announced its participation in CrowdStrike’s Project QuiltWorks, expanding its ability to enable enterprises to connect vulnerability discovery with practical, validated remediation. Project QuiltWorks is the only coalition uniting frontier AI labs, top systems integrators, leaders from the cyber insurance industry, and cloud infrastructure to assess, prioritize, remediate, and financially protect against frontier AI risk.
As frontier AI accelerates vulnerability discovery and exploitation, Presidio bridges the gap between vulnerability insight and remediation action, helping companies to find and fix what matters most before cyberattackers can take advantage.
“Presidio’s participation in CrowdStrike’s Project QuiltWorks reflects the depth of our technical integration and our shared commitment to delivering measurable security outcomes for joint customers,” said Dustin Harriman, Cybersecurity Consulting Services Sr. Director at Presidio. “Together, we are accelerating the adoption of the Falcon platform across enterprise environments and setting a higher standard for what integrated security looks like in practice.”
Project QuiltWorks works with partners like Presidio to secure every layer of frontier AI risk, including the development of board-level analysis that transforms incident reports and data into clear answers and actionable insights for stakeholders. For Presidio, this milestone builds on its cybersecurity practice and deep partner ecosystem, helping enterprises reduce risk, improve resilience, and close the gap between what is discovered and what is resolved.
For more information, please visit https://www.presidio.com/solutions/cybersecurity/.
About Presidio
At Presidio, speed and quality meet technology and innovation. Presidio is a trusted ally for organizations across industries with a decades-long history of building traditional IT foundations and deep expertise in AI and automation, security, networking, digital transformation, and cloud computing. Presidio fills gaps, removes hurdles, optimizes costs, and reduces risk. Presidio’s expert technical team develops custom applications, provides managed services, enables actionable data insights and builds forward-thinking solutions that drive strategic outcomes for clients globally. For more information, visit www.presidio.com.
CrowdStrike Holdings Inc. NASDAQ: CRWD is up approximately 45% in 2026, making it one of the best-performing stocks of 2026. However, CRWD is down approximately 10% since reporting solid earnings on June 3.
That dip comes even though the company’s board approved a 4-for-1 stock split. Shareholders of record as of June 25 will receive three additional shares for every share they own, and the stock is expected to begin trading on a split-adjusted basis on July 2.
Get CrowdStrike alerts:
A stock split can increase shareholder value indirectly, but by itself, shouldn’t be a reason to buy or sell a stock. Instead, investors ought to look at the company’s fundamentals and its valuation.
CrowdStrike Just Delivered a Strong ReportIt's hard to overstate the strength of CrowdStrike’s recent earnings report. The cybersecurity company beat on the top and bottom lines. Revenue of $1.39 billion was up 26% year-over-year (YOY). Earnings per share (EPS) growth was even stronger with the company’s $1.10 coming in 51% higher YOY.
A key metric for cybersecurity companies is annual recurring revenue (ARR). CrowdStrike’s Falcon platform has had a significant flywheel effect in which companies sign up for one or more services and not only continue to use those services but also add additional modules over time. That’s a key reason why the company raised its net new ARR growth guidance for the current fiscal year by 520 basis points to 27.7%.
Look Past the Split: What Actually Supports CRWDSimply put, there's a difference between price and value. A stock split doesn't change a company's valuation, so the fact that CrowdStrike will soon trade at a more accessible price won't make the stock a better value than it was pre-split.
And on traditional valuation metrics—price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B)—CRWD looks expensive, so investors focused on those measures may find better options elsewhere. The bull case for the stock rests less on it being cheap and more on other factors.
One of those is that the company is betting on itself. CrowdStrike recently announced a $500 million increase to its prior authorization, bringing the new authorization to approximately $1.5 billion. Companies don’t increase a buyback authorization without the free cash flow (FCF) to support it.
Another is index membership. CRWD is part of the S&P 500 index, and it was the fastest cybersecurity company to achieve that milestone. It also means the stock is included in many of the largest technology and cybersecurity-focused exchange-traded funds (ETFs) and index funds. Over 71% of the stock’s shares are owned by institutions.
The takeaway for investors: a lofty share price doesn't appear to be keeping people away from the stock.
Why You Shouldn’t Discount the SplitThe split won't change CRWD's valuation, but it could still change how investors respond to the stock—and with more retail investors in the market than ever, that psychology matters.
Many retail investors prefer not to own fractional shares, even though the option is available to them. For those investors, seeing CRWD trade for under $200 is likely to hold significantly more appeal. That’s particularly true for growth-focused investors. CrowdStrike doesn’t pay a dividend, so aside from buybacks, stock price appreciation is the primary compensation for shareholders.
To be clear, none of this is the "right" reason to buy CRWD—a split creates no real value. But markets aren't perfectly efficient, and sometimes how investors feel about a price matters as much as the underlying valuation.
A Cautiously Bullish ChartCRWD is trading around $690, well extended above its 50-day simple moving average (SMA) at $571.48. That gap signals strong momentum, but also elevated short-term risk.
The stock staged a powerful breakout in May, surging from the $400s to a high near $790 before pulling back into a consolidation range around $680–$720. That pullback appears healthy rather than bearish, with price holding well above the 50-day SMA.
The relative strength index sits at 59, with the signal line at 61. The bearish RSI cross visible on the chart coincides with the recent peak. That's a classic momentum fade following an overbought reading above 80. Current RSI levels are neutral-to-bullish, leaving room to run without immediate overbought pressure.
Adding to that optimism, volume remains constructive, supporting the thesis that institutional buyers absorbed the breakout. The dotted resistance line near $760–$780 is the key level to watch on the next leg higher.
Should You Invest $1,000 in CrowdStrike Right Now?Before you consider CrowdStrike, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CrowdStrike wasn't on the list.
While CrowdStrike currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Magnite (MGNI) 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.
Magnite delivered strong Q1 results, with CTV contribution ex-TAC up 30% YoY and now over 50% of total contribution. I remain bullish and reiterate my buy rating, citing positive sentiment, robust CTV growth, and improved profitability metrics including a 27% adj. EBITDA margin. MGNI paid down $205M in senior notes, reducing net leverage to 0.7x and aligning with management's target of less than 1x.
Sean Patrick Buckley, President of Revenue and Market Strategy, reported the sale of 19,233 shares of Magnite (MGNI +3.15%) in an open-market transaction executed on June 17, 2026, as disclosed in the SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)19,233Transaction value$365,000Post-transaction shares (direct)373,514Post-transaction value (direct ownership)$6.8 millionTransaction value based on SEC Form 4 reported price ($19.00); post-transaction value based on June 17, 2026 market close ($18.24).
Key questionsHow does the size of Buckley’s latest sale compare to his historical pattern of open-market sales?
This transaction’s 19,233 shares is moderately above his historical sell-only average of ~15,847 shares per trade, but well within his established range (2,213 shares to 40,000 shares) and consistent with prior allocations.Did this sale impact Buckley’s indirect or derivative holdings?
No; the transaction affected only direct common stock holdings, with no changes to indirect entities or derivative security positions.What proportion of Buckley’s total direct Magnite stake was involved in this transaction?
The sale represented 4.90% of his direct shares, moving his direct holdings from 392,747 to 373,514 shares post-transaction.Is there evidence this sale reflects a shift in strategy or accelerated disposition?
No; the cadence and scale of the sale are consistent with Buckley’s multi-year pattern of Rule 10b5-1 plan-driven activity, and capacity analysis shows that trade sizes have naturally trended lower as overall holdings have declined.Company overviewMetricValueRevenue (TTM)$722.55 millionNet income (TTM)$158.66 millionEmployees9051-year price change-4.43%* 1-year performance calculated using June 17th, 2026 as the reference date.
Company snapshotMagnite provides a global digital advertising platform enabling publishers to manage and monetize ad inventory across connected TV, mobile, and web channels.It operates a marketplace model, earning revenue through technology fees and commissions from facilitating transactions between advertising buyers and sellers.The company serves digital content publishers, advertisers, agencies, agency trading desks, and demand-side platforms worldwide.Magnite, Inc. is an independent provider of programmatic advertising technology, supporting publishers and buyers in the digital ad ecosystem. The company leverages a scalable sell-side platform and international sales presence to deliver advanced monetization and procurement solutions.
What this transaction means for investorsThe June 17 sale of Magnite stock by the company’s President of Revenue and Market Strategy, Sean Buckley, came at a time when shares were on an upswing, well above the 52-week low of $10.82 reached in February of this year. Even so, the disposition is not a cause for investor concern as it was a non-discretionary transaction.
The sale was part of a pre-arranged Rule 10b5-1 trading plan adopted back in September of 2025. Such plans are often implemented by insiders to avoid accusations of trading based on insider information.
Magnite stock has rebounded due to a solid first-quarter earnings report. Sales totaled $164.4 million, representing a 6% year-over-year increase. Moreover, the company swung from a net loss of $9.6 million in Q1 of 2025 to net income of $4.4 million this year thanks to a combination of rising revenue and cost reductions.
Magnite has also steadily lowered its debt, and acquired key digital advertising partnerships with the likes of Walmart. These wins bolstered investor confidence in the company, helping shares to rise.
Robert Izquierdo has positions in Magnite and Walmart. The Motley Fool has positions in and recommends Walmart. The Motley Fool recommends Magnite. The Motley Fool has a disclosure policy.
When most tech sector investors think of neocloud businesses, the ones that come to mind are Nebius (NBIS 2.79%) and Iren (IREN 3.78%). And both of them have performed well for those who have held their shares over the last year and a half, delivering multibagger returns.
However, at this point, the AI data center operators offering investors the best chances for high returns may be a couple that aren't on most people's radars.
Mara Holdings (MARA 1.01%) and Soluna Holdings (SLNH 3.59%) don't receive as much attention in this industry. They are smaller than Nebius and Iren, but both have pivoted away from crypto mining and now have multigigawatt pipelines of AI data center projects under development. These projects should produce tremendous recurring revenues once they are complete. Here are some key details to consider when comparing these two growth stocks.
Image source: Getty Images.
Soluna Holdings has a larger gigawatt pipeline If you're looking just at their development pipelines, Soluna Holdings is the winner. It closed out the first quarter with 4.3 gigawatts (GW) of data centers in the works. Mara Holdings only said it had 2.2 gigawatts of combined operational and development capacity in a recent press release.
For data center operators, securing gigawatts of power and development capacity puts them on course for higher annual recurring revenues in the future. Soluna Holdings has more potential, especially since it has added gigawatts quickly. The company's pipeline exceeded 1 gigawatt in Q3 2025 and reached 4.3 gigawatts in Q4 2025. Management cited "new curtailment assessments, active term sheet discussions, and six new development-stage projects" as the catalysts that resulted in that elevated power pipeline.
Soluna Holdings is following a similar playbook to Iren's: Get the gigawatts now and figure out the monetization later. For now, Soluna Holdings continues to burn through cash, but that's a problem across the entire industry.
Mara Holdings is closer to monetizing its sites Although Soluna Holdings has a more impressive development pipeline, most of its sites are still in the early stages of construction. Mara Holdings is closer to artificial intelligence (AI) monetization, and the company recently outlined a near-term goal of delivering more than 1 gigawatt of IT capacity. Most of Soluna Holdings' 4.3 gigawatt pipeline is multiple years away from energization.
The longer it takes for neocloud providers to build and monetize AI data centers, the more they will have to rely on financing. Higher interest rates will take a toll on these companies' finances, but since Mara Holdings is closer to the finish line with its projects, it won't be affected as much.
Right now, neither of these companies is making much money. Soluna Holdings made $9.4 million in Q1, which was a 58% year-over-year increase, from a mix of data center hosting and crypto mining. Mara Holdings reported $174.6 million in revenue. Although it's a much higher figure, it represents an 18% year-over-year decline and is from crypto mining. Both companies reported heavy net losses as they work to break free from their unprofitable crypto mining business models.
Mara Holdings is making more progress in that regard. The company recently entered a partnership with Starwood Capital Group to jointly develop, finance, and operate digital infrastructure projects across Mara Holdings' existing energy capacity. That deal reduces Mara Holdings' financial burden as it seeks to capitalize on the AI build-out. Soluna Holdings also uses joint ventures to minimize its total costs.
These arrangements are good in the short run, but they involve giving up a percentage of the total revenue that these sites can generate. Since Mara Holdings is closer to monetization, it benefits from the present returns of joint ventures while maintaining greater near-term financial flexibility to build AI data centers without partners in the future.
The final verdict There's no clear-cut answer as to which of these two picks is the better investment; your conclusion will depend largely on your risk tolerance. Soluna Holdings has greater potential due to its larger development pipeline. It can make substantially more money than Mara Holdings once it gets its new data centers energized and online.
However, Mara Holdings will likely make big tech deals with hyperscalers sooner and generate high annual recurring revenue. The fact that Mara Holdings is closer to monetization also reduces the execution and financial risks for its shareholders.
Both companies are well positioned to benefit from the rising demand for AI, which should continue for some time. Grand View Research projects that the AI market as a whole will grow at a 30.6% compound annual rate from now until 2033, and intensifying public activism in communities across the country against AI data center projects could make existing facilities more valuable.
Goldman Sachs recently released a report projecting that AI data center power demand in 2027 would be twice as much as it was in 2025. It's important to understand the tailwinds driving Mara Holdings' and Soluna Holdings' stock. It just comes down to how long investors are willing to wait for secured gigawatts to turn into dollars.
Bitcoin's wild decade produced two very different stories on Wall Street. MARA Holdings (NASDAQ: MARA | MARA Price Prediction), then known as Marathon Digital, focused on running mining rigs, while Strategy (NASDAQ: MSTR), the software firm formerly known as MicroStrategy, bet its balance sheet on holding the coins themselves.
Yet while Bitcoin continues to trade far below its highs, two closely watched crypto stocks are starting to send a very different message.
The divergence is raising an interesting question: Are crypto stocks seeing a recovery before Bitcoin itself?
Bitcoin Is Still Deep In A DrawdownThe scale of Bitcoin’s decline remains significant.
A drop from roughly $123,641 to $62,533 represents a loss of more than $61,000 per coin and places Bitcoin nearly 50% below its October high.
The cryptocurrency is also down about 29% year-to-date and nearly 38% over the past year, according to TradingView data.
Historically, moves of this magnitude have weighed heavily on crypto-linked equities, particularly miners whose revenues are tied to Bitcoin prices.
That’s what makes the recent technical developments in MARA and HIVE noteworthy.
MARA And HIVE Are Flashing A Different SignalChart created using Benzinga Pro
MARA shares are trading near $14.43 and recently formed a golden cross as the stock’s 50-day moving average climbed above its 200-day moving average.
A similar pattern has emerged at HIVE, where shares are trading around $4.51.
Chart created using Benzinga Pro
For technical traders, golden crosses are often interpreted as evidence that momentum is improving and that investors are beginning to position for a potential recovery.
The signals don’t guarantee higher prices. But they do suggest the market may be becoming more optimistic about the outlook for crypto-related equities despite Bitcoin’s ongoing weakness.
What Are Investors Seeing?One possibility is that investors believe much of Bitcoin’s bad news has already been priced into mining stocks.
Another is that equity investors are looking beyond current cryptocurrency prices and focusing on future catalysts, including improving industry economics, lower competition and the possibility of a broader recovery in digital assets.
HIVE also brings an additional dimension to the conversation. In recent years, the company has expanded into high-performance computing and AI-focused infrastructure, giving investors exposure to themes beyond cryptocurrency mining alone.
A Leading Indicator Or A False Start?Markets often move ahead of fundamentals.
Homebuilders can rally before housing data improves. Semiconductor stocks frequently bottom before chip demand recovers. The same dynamic can sometimes play out in crypto-related equities.
That doesn’t mean Bitcoin has found its bottom.
But with the cryptocurrency still down nearly 50% from its peak and both MARA and HIVE flashing bullish technical signals, investors are left with a question worth watching:
Are crypto miners getting ahead of themselves—or are they seeing a recovery that Bitcoin hasn’t yet priced in?
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NIO shares are showing limited movement. What should traders watch with NIO? What Is Driving NIO Stock Amid Geopolitical Tensions?The Trump administration has labeled Nio a "Chinese military company," and the automaker says the inclusion is "not justified," adding it plans to engage with the U.S. Department of Defense and may pursue legal action if needed. The Pentagon list also includes other China-linked names such as BYD, Baidu and Alibaba Group.
Nio has also explicitly denied any military ties, saying it is "not a Chinese military company or a military-civil fusion contributor," keeping the focus on whether a formal challenge can compress the risk premium while the Nasdaq tries to stay bid.
NIO Stock: Key Technical Levels To WatchTechnically, NIO is still in rebuild mode: at $5.01 it's trading 8.6% below its 20-day SMA ($5.48) and 15.9% below its 50-day SMA ($5.96), so rallies often struggle until the mid-$5s are reclaimed. It's also 14.2% below the 200-day SMA ($5.84), reinforcing that overhead supply remains an issue on bounces.
The moving-average structure is mixed, with the 20-day SMA below the 50-day SMA (bearish near-term), but the 50-day SMA still above the 200-day SMA after the golden cross in April, which keeps the longer-term recovery case alive if price can base. Key turning points also frame the range: the stock broke below support in February, set a swing high in April, and then put in a swing low in May.
For momentum, MACD is the cleaner read right now: it's below its signal line and the histogram is negative, which points to fading upside pressure versus the recent baseline unless buyers step back in. That cooling momentum fits with the stock sitting below multiple moving averages rather than trending cleanly higher.
Key Resistance: $6.00 — a round-number ceiling that lines up closely with the 50-day SMA ($5.96), where rebounds can stall Key Support: $5.00 — a round-number floor just below current price that acts as a quick sentiment check What Is NIO and How Does It Operate?Nio is a leading electric vehicle maker, targeting the premium segment. Founded in November 2014, it designs, develops, jointly manufactures, and sells premium smart electric vehicles, and it tries to stand out with battery swapping and autonomous driving.
Its current model portfolio spans midsize to large sedans and SUVs, and it sold around 326,000 EVs in 2025—about 2% of China's passenger new energy vehicle market. That's why U.S. policy and regulatory headlines can matter so much for the stock: they can quickly change the risk premium investors assign to China-linked EV names.
NIO Stock Price Action For WednesdayNIO Stock Price Activity: Nio shares were trading at $5.01 Wednesday morning, according to Benzinga Pro data.
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NIO stock is moving in positive territory. Why is NIO stock advancing? What Is NIO’s Response to Military Company Label?The Trump administration has labeled Nio a "Chinese military company," and the automaker says the inclusion is "not justified," adding it plans to engage with the U.S. Department of Defense and may pursue legal action if needed. The Pentagon list also includes other China-linked names such as BYD, Baidu and Alibaba Group.
Nio has also explicitly denied any military ties, saying it is "not a Chinese military company or a military-civil fusion contributor," keeping the focus on whether a formal challenge can change the near-term risk premium.
NIO Stock: Key Levels and Momentum IndicatorsNIO is still trying to rebuild its trend, and the chart shows why rallies have been choppy: at $5.19, the stock is trading 5.4% below its 20-day SMA ($5.45) and 13.2% below its 50-day SMA ($5.93). It's also 11.6% below the 200-day SMA ($5.83), so there's still overhead supply to work through if buyers want a cleaner recovery.
Momentum is best read through MACD right now: MACD is below its signal line and the histogram is negative, which points to upside pressure fading versus the recent baseline unless buyers step back in. In plain terms, when MACD sits below its signal line, it often means the latest bounce is losing steam rather than accelerating.
The moving-average structure is mixed across timeframes, with the 20-day SMA below the 50-day SMA (bearish near-term), but the 50-day SMA remains above the 200-day SMA after the golden cross in April (a longer-term constructive backdrop if price can base). Key turning points help frame the current range: the stock broke below support in February, set a swing high in April, and then carved a swing low in May.
Key Resistance: $6.00 — a round-number ceiling that also sits near the 50-day SMA area, where rebounds can stall Key Support: $5.00 — a round-number floor just below current price that acts as a quick sentiment check What Is NIO and How Does It Compete?Nio is a leading electric vehicle maker focused on the premium segment in China, and it differentiates itself with tech like battery swapping and autonomous driving. It designs, develops, jointly manufactures, and sells smart EVs across a lineup of sedans and SUVs.
That positioning matters for the current tape because U.S.-listed China ADRs can see their risk premium expand or compress quickly on regulatory and geopolitical headlines. Nio sold around 326,000 EVs in 2025—about 2% of China's passenger new energy vehicle market—so sentiment can swing between "scale story" and "headline risk" depending on the day.
NIO Stock Price Movement in Thursday’s PremarketNIO Stock Price Activity: Nio shares were up 2.38% at $5.17 during premarket trading on Thursday, according to Benzinga Pro data.
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NIO Inc. (NIO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -10.4%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Automotive - Foreign industry, which NIO falls in, has lost 7.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
NIO is expected to post a loss of $0.07 per share for the current quarter, representing a year-over-year change of +78.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.5%.
The consensus earnings estimate of -$0.13 for the current fiscal year indicates a year-over-year change of +86.7%. This estimate has changed +40.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.05 indicates a change of +137.2% from what NIO is expected to report a year ago. Over the past month, the estimate has changed -502.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, NIO is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For NIO, the consensus sales estimate for the current quarter of $4.87 billion indicates a year-over-year change of +83.4%. For the current and next fiscal years, $19.41 billion and $23.03 billion estimates indicate +57.4% and +18.7% changes, respectively.
Last Reported Results and Surprise HistoryNIO reported revenues of $3.7 billion in the last reported quarter, representing a year-over-year change of +123.2%. EPS of -$0.03 for the same period compares with -$0.45 a year ago.
Compared to the Zacks Consensus Estimate of $3.55 billion, the reported revenues represent a surprise of +4.28%. The EPS surprise was +87.5%.
Over the last four quarters, NIO surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
NIO is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about NIO. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
While most of the world is concerned about the rapid expansion of Chinese automakers that have the ability to severely undercut on price while still boasting advanced electric vehicles (EVs), Chinese companies have big issues at home. For them, the grass is truly greener on the other side, and exports are surging to support their businesses.
While many competitors in China are feeling the pain, one domestic automaker is bucking the trend: Nio (NIO +0.79%). Can that continue? Or is the other shoe about to drop, sending Nio's results more in line with domestic competitors?
What's going on Chinese automakers might be scary-looking as they gain market share across the globe, but they're struggling on their home turf, with EV sales nationwide plunging, sending earnings and margins reeling. Investors looking for a culprit can quickly find it in a new-vehicle tax, reduced EV subsidies, and a stumbling economy. That's caused consumers to be cautious about big-ticket purchases, and that sentiment hasn't budged. Included in those challenges was that subsidies dropped to 8% of new-energy vehicle (NEV) prices.
China's domestic NEV sales in April declined 38% to roughly 443,000 vehicles, the fourth straight monthly decline, per the China Passenger Car Association. April's result was actually an improvement, considering year-to-date NEV sales have spiraled 47% lower. All of those factors sent net income at some of China's biggest players plunging. BYD's net income dropped a staggering 55% in the quarter ended March 31, while Geely's net income fell 26%, according to Automotive News.
While larger players are better equipped to handle and absorb these pressures, Nio has been a bright spot in China's auto industry.
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Still thriving Nio managed to buck the dreadful domestic trend in 2026 and delivered 37,705 vehicles in May, a staggering 62.3% increase compared to the prior year. While that was a bit of a slowdown, it certainly wasn't a one-hit wonder, as Nio's year-to-date deliveries through May have increased nearly 69% to 150,526 vehicles.
Part of Nio's strong comparisons are due to its sub-brands, Onvo and Firefly, gaining more traction. In fact, Nio's namesake premium brand still accounts for the majority of deliveries at 20,013 in May, but Onvo and Firefly are now generating serious results with deliveries of 12,029 and 5,663 vehicles, respectively. There's even a bit of upside as Nio drives through the remainder of the year, as it recently launched its ES9, a flagship executive SUV, with deliveries only starting on May 28.
Nio ES9 Image source: Nio.
Looking beyond Nio's thriving delivery results, its first-quarter vehicle margin checked in at 18.8%, compared to 10.2% during the prior year's first quarter. It still had momentum in the first quarter as it compared favorably to the fourth quarter of 2025's 18.1% vehicle margin. Despite all the domestic market headwinds, Nio also managed to generate an adjusted profit from operations during the first quarter.
What to expect Nio isn't magically immune to the Chinese auto industry pressures, and investors should probably expect some bumps in the road with margins and adjusted profits through the remainder of the year. Further, Nio was a bit slower to begin exporting vehicles overseas, and it won't immediately offer the company enough support to offset potential domestic weakness, at least right away.
It's likely that incremental growth from its sub-brands can offset some delivery pressure as NEV sales continue to spiral lower nationwide, and Nio may continue to be more of a bright spot, but expecting Nio to continue improving vehicle and gross margins throughout 2026 is a lot to ask, despite the company's impressive efforts to improve efficiency and lower costs.
The key thing for investors to watch during the back half of the year is whether Nio can achieve its original guidance of generating a full-year adjusted operating profit for 2026. This was set up to be a special year for Nio and its investors, as it was intended to be its first full-year annual adjusted profit, but we'll have to wait for the second-quarter results and guidance to have more insight. If it can still achieve its guidance, that will indeed be a special year amid all the headwinds.
Agibot G2 robots working on a Longcheer tablet production line. Screenshot from an Agibot promo video.
John Koetsier
The new flex in humanoid robotics isn’t a backflip or a dance routine. It’s a webcam pointed at a factory floor, running for days, watching robots do actual work on actual production lines in actual factories. Starting today and continuing through June 28, Chinese embodied-AI company Agibot is livestreaming a fleet of its G2 humanoid robots with customized grippers working a real production line at Longcheer Technology’s factory in Nanchang. The robots are stationed in the quality-inspection section of a tablet mass-production line, operating alongside human workers and the existing industrial workflow. Anyone can watch on Agibot’s X and YouTube channels.
The company’s wheeled G2 robots have been working on the production line since at least April of this year. Using customized grippers for the specific job they’re doing, they’re picking up, moving and placing tablets for testing, among other things.
Humanoid makers are under increased pressure to show actual utility in their robots and cobots, and livestreams appear to be part of that plan.
If a multi-day factory livestream feels familiar, that’s because Figure AI just did something similar, turning it into a bit of a challenge and spectacle. Last month, Figure ran a 10-hour "Human vs. Robot" package-sorting challenge, pitting its Figure 03 humanoid against a hapless human intern named Aime. The human won, barely: Aime sorted 12,924 packages to the robot's 12,732, a margin of just 192.
Humanity’s last win, perhaps?
Of course, winning wasn’t really the point: the intern’s fingers and hands were sore enough to quit, while Figure was still working. In this iteration of the rabbit versus the tortoise, we won the sprint but the robot was built for the marathon.
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And Figure leaned in farther, live-streaming the first eight hours, then 24, then well past 100. Viewers gave the robots names like Bob, Frank, Gary, Rose, and Jim, watched to see which would jam or drop a box and turned an intentionally tedious feed into something between a reality show and a sleep aid. Figure later pushed the format to a 200-hour continuous run, with Figure 03 processing roughly 249,560 packages — about 1,248 boxes an hour, or one every 2.88 seconds.
Of course, the tedium is the point. If humanoids are going to earn a place in our factories and warehouses, the test isn’t a single elegant motion, it’s doing the same unglamorous thing for hours and days on end without failing.
Humanoid makers racing onto the factory floorThe bigger story of course is that the entire humanoid robotics industry is trying to prove a point: humanoids are not just toys. They can do actual real work.
Figure’s earlier Figure 02 went into BMW’s plant in Spartanburg, South Carolina, placing sheet-metal parts into fixtures and Figure 3 is going to be working at retail holding company Catalyst Brands. Agility Robotics’ Digit broke the ice as the first humanoid with a real job back in late 2024 and Tesla’s Optimus has been demonstrating battery sorting and parts handling inside Tesla’s own factories. In China, the list is long: Ubtech’s Walker S has trained inside auto plants for NIO, Geely’s Zeekr, BYD and others and expanded to Foxconn and SF Express; and Xiaomi hired a humanoid for an "internship" in its own car factory, reporting a 90.2% success rate on bilateral nut-fastening over a three-hour autonomous run.
None of these machines is necessarily the optimal tool yet. For fixed, repetitive motions, a purpose-built robotic arm is still faster and more reliable, and skilled humans remain cheaper and far better at handling the unexpected like a jammed box, a tilted bin, a dropped part.
But things are changing fast, and humanoid models are getting better and better, with robotic hands that are increasingly capable.
The relatively recent ecosystem-level change, however, is the burden of proof for humanoid makers.
The credible flex is no longer a cool demo video or a robot dance. The flex is "watch our robot do it live, IRL, for days on end, and see if it breaks."
Agibot’s six-day broadcast is the latest entry in a contest the whole field is now starting to run in public, one livestream at a time.
Nio stock price dropped to a crucial support level this week as investors continued selling Chinese electric vehicle shares. It was trading at $5.05, and may be at risk of further downside after forming a risky chart pattern despite its strong revenue and delivery growth.
The weekly chart shows that Nio shares peaked at $7.95 in September 2025 and then pulled back to a low of $4.35. A closer look shows that the stock has slowly formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis. It is now trading along this pattern’s neckline.
The stock has slumped below the 50-week Exponential Moving Average (EMA) and is about to fall below the Strong, Pivot, Reverse of the Murrey Math Lines tool of $4.70.
A break below the lower side of the H&S pattern points to more downside, potentially to the key support level of $3, its lowest level in April last year. If this happens, it will drop by about 40% below the current level.
On the other hand, a move above the right shoulder section of $7 will invalidate the bearish outlook and point to further gains ahead.
Nio stock chart | Source: TradingView
The ongoing Nio stock retreat mirrors that of other Chinese EV companies like Li Auto, XPeng, BYD, and Li Auto. All these stocks have plunged by double digits from their all-time highs.
The retreat has coincided with the recent decision by the Chinese government to start scaling down its EV subsidies, a move that will make them more expensive over time.
Most importantly, the Chinese market is now flooded with EVs and Internal Combustion Vehicles (ICE). A look at most EV companies, including Xiaomi, Geely, Polestar, and Tesla shows that they have boosted their output in the past few months.
Other companies in the ICE industry, like Mercedes-Benz, Toyota, Nissan, and Dongfeng, have continued to boost their production. The implication of all this is that companies like Nio and Xpeng have been engaged in a price war, a trend that will continue in the foreseeable future.
Still, despite all this, Nio is one of the best-performing Chinese EV companies, with the most recent results showing that its deliveries rose by 62.3% in May to 37,705. Its YTD deliveries jumped by 68.7% to 150,526.
Most of its sales are still from its Nio brand, which jumped to 20,013, while 12,029 were from its ONVO brand. The management has admitted that it needs to do more work to boost ONVO’s brand appeal in the country.
Still, it is seeing a modest demand for ONVO L80. Nio has also boosted its model lineup, including by launching ES9, which is the successor to the most popular ES8 model.
Analysts believe that the annual revenue jumped by 56% YoY to 136.6 billion yuan ($20 billion), followed by $22 billion next year.
A key challenge for the company is its profitability. While it made a net profit in the fourth quarter of last year, this reversed in the first quarter. Despite all this, analysts anticipate that it will make a net profit of 0.43 CNY per share this year, followed by 1.01 CNY next year.
Plug Power (PLUG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this alternative energy company have returned -19.9% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Electronics - Miscellaneous Products industry, to which Plug Power belongs, has gained 18.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Plug Power is expected to post a loss of $0.08 per share, indicating a change of +50% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.32 points to a change of +77.5% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $0.12 indicates a change of +62% from what Plug Power is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Plug Power.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Plug Power, the consensus sales estimate for the current quarter of $173.03 million indicates a year-over-year change of -0.5%. For the current and next fiscal years, $811.37 million and $978.27 million estimates indicate +14.3% and +20.6% changes, respectively.
Last Reported Results and Surprise HistoryPlug Power reported revenues of $163.51 million in the last reported quarter, representing a year-over-year change of +22.3%. EPS of -$0.08 for the same period compares with -$0.21 a year ago.
Compared to the Zacks Consensus Estimate of $142.52 million, the reported revenues represent a surprise of +14.73%. The EPS surprise was +11.11%.
Over the last four quarters, Plug Power surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Plug Power is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Plug Power. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Plug Power shares are trending higher. Why is PLUG stock advancing? What Is Driving Plug Power’s Recent Liquidity Update?Plug disclosed the sale of a federal investment tax credit worth about $39.2 million tied to its St. Gabriel hydrogen liquefaction facility in Louisiana, following another $30 million ITC transfer completed in January 2025 for its Woodbine, Georgia hydrogen project. The liquidity push is landing alongside recent operating momentum, including Q1 revenue up 23% to $163 million.
Plug's bid also comes after the stock recently hovered around $2.80, keeping traders focused on whether incremental liquidity can help the company work through near-term funding questions without stalling growth. That same setup has kept attention on execution versus financing as the market prices the next leg for PLUG.
Critical Price Levels To Watch For PLUGFrom a trend perspective, PLUG is still dealing with overhead supply: it's trading 21.1% below its 20-day SMA ($3.41) and 17.7% below its 50-day SMA ($3.27), which can make rallies choppy until those zones are reclaimed. The longer-term structure is steadier, with shares about in-line with the 100-day SMA ($2.71) and 5% above the 200-day SMA ($2.56).
Momentum is best framed through MACD right now: MACD is below its signal line and the histogram is negative, which points to cooling upside pressure unless buyers can push back above that baseline. In plain terms, MACD compares a faster and slower trend, and being below the signal line often means the prior upswing is losing steam.
The moving-average stack still carries a longer-term positive, with the golden cross that formed in September 2025 (50-day SMA above the 200-day SMA). But with the stock still well below the $4.58 52-week high (set in October 2025), bulls typically want to see follow-through back above mid-term averages to argue this is more than a bounce.
Key Resistance: $3.22 — a nearby overhead area that lines up closely with the 50-day moving average zone Key Support: $2.53 — near the 200-day SMA, often treated as a longer-term line in the sand What Is Plug Power’s Green Hydrogen Strategy?Plug Power is building an end-to-end green hydrogen ecosystem—production, storage, delivery, and energy generation—so the market often treats liquidity and funding updates as "make-or-break" inputs for the story. The company's plan to build and operate green hydrogen highways across North America and Europe also means capital needs can be front-loaded, making balance-sheet moves especially relevant.
Plug aims to deliver green hydrogen solutions directly to customers and through joint venture partners across material handling, e-mobility, power generation, and industrial applications. That mix ties the stock to both execution (building supply and demand) and the broader appetite for higher-risk energy-transition names.
PLUG Stock Price Movement on ThursdayPLUG Stock Price Activity: Plug Power shares were up 2.26% at $2.71 at the time of publication on Thursday, according to Benzinga Pro data.
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Choosing between Eos Energy Enterprises (EOSE 11.58%) and Plug Power (PLUG 3.40%) requires understanding two distinct paths to future energy as the world pivots toward renewables.
Eos Energy focuses on long-duration zinc batteries for utilities, while Plug Power builds a comprehensive ecosystem for liquid hydrogen and fuel cells. Both companies are currently recording significant net losses as they scale their manufacturing and infrastructure. Comparing their financial stability and valuation helps determine which stock offers a better risk-to-reward profile for your portfolio.
The case for Eos Energy EnterprisesThe clean energy landscape is rapidly evolving, attracting significant interest from those looking at renewable energy stocks that focus on sustainability.
Eos Energy Enterprises designs and manufactures zinc-based energy storage systems for utility-scale and industrial applications. These systems provide grid-congestion relief and help integrate renewable energy sources into the existing power grid. During fiscal year 2025, two customers accounted for roughly 51.5% and 18.8% of total revenue.
In FY 2025, revenue reached nearly $114.2 million, a massive leap from the roughly $15.6 million reported in the previous year. The company reported a net loss of approximately $969.6 million, resulting in a negative net margin of roughly 849.1%. Net margin measures how much profit or loss a company generates as a percentage of its total revenue.
As of its December 2025 balance sheet, the current ratio is roughly 4.9x, which measures a company's ability to pay short-term debts with assets that can be converted to cash within a year. The debt-to-equity ratio is nearly -1.0x, indicating that total liabilities exceed shareholder equity mainly because of accumulated losses. Free cash flow (FCF), or the cash remaining after paying for operations and capital equipment, was approximately negative $265.0 million in FY 2025.
The case for Plug PowerPlug Power is building an end-to-end clean hydrogen ecosystem that includes production, storage, and energy generation. The company has deployed more than 74,000 fuel cell systems and operates hundreds of fueling stations for material handling and logistics. For the year ended Dec. 31, 2025, Walmart (WMT +2.11%) accounted for nearly 24.2% of total revenue, while the second-largest customer accounted for 14.3%.
In FY 2025, revenue reached approximately $709.9 million, up from nearly $628.8 million in the prior year. However, the company recorded a net loss of roughly $1.6 billion, representing a negative net margin of approximately 229.8%. This metric reflects the company's high ongoing costs relative to its current sales levels.
As of the December 2025 balance sheet, the company's debt-to-equity ratio is close to 1.0x, which measures total debt relative to shareholder equity. The current ratio is roughly 2.3x, showing the company has more than double the short-term assets needed to cover near-term obligations. FCF for FY 2025 was approximately negative $661.5 million.
Risk profile comparisonEos Energy Enterprises faces intense competition from established lithium-ion battery manufacturers. These competitors often have greater vertical integration and lower operating expenses, particularly those based in China. The company also relies heavily on government subsidies, and any reduction or expiration of these programs could significantly lower demand for its technology.
Plug Power competes with major hydrogen players, such as Bloom Energy (BE 7.14%), which has a strong customer base and is growing rapidly. It also competes with incumbents such as Linde (LIN 0.78%) that have significantly larger resources and established infrastructure for traditional energy generation. The company also faces risks related to amendments to government tax incentives, specifically under the One Big Beautiful Bill Act, which could impair the financial viability of hydrogen projects.
Valuation comparisonEos Energy Enterprises carries a much lower valuation relative to its future earnings estimates, while Plug Power offers a lower multiple relative to its current sales.
MetricEos Energy EnterprisesPlug PowerSector BenchmarkForward P/E12.6xn/a29.8xP/S ratio13.8x4.5xSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?If I had to buy one stock today for 2026 and beyond, it would be Eos Energy.
The single biggest risk with early-stage clean energy companies is production. Eos is actively scaling manufacturing. Its automated "Battery Line 2" is online, and its production volume is growing. In Q1 2026, Eos delivered 5.7 times more battery modules as production ramped up.
Conversely, Plug Power has a multi-year history of over-promising on hydrogen infrastructure timelines and underdelivering. Although it is also increasing capacity and even producing green hydrogen in-house to cut costs and reliance on third parties, it had to recently stall or abandon some projects that were linked to federal loan guarantees under the previous government, which were later shelved by the Trump administration.
Eos also has a rapidly growing backlog, now sitting at $600 million. That’s huge for a start-up. It also recently partnered with Cerberus Capital to create an independent company, Frontier Power USA, that will develop and operate energy storage projects using Eos’ battery technology.
Just days ago, Eos also secured its first massive European master supply agreement with a 50 megawatt-hour (MWh) capacity commitment with potential to scale up to 2 gigawatt hours through 2031. Under the agreement, Germany-based CAPAC Energy will be the exclusive distributor of Eos’ technology across Germany, Austria, and Switzerland.
Plug Power is turning around and expects to become fully profitable by 2028. That’s an ambitious goal that could send the stock soaring if the company achieves it. Yet, I’d still bet on Eos Energy today, as it is advancing on tangible operational milestones and has a big backlog.
Key Takeaways PLUG posted a Q1 2026 net loss of about $246M, wider than $196.9M a year earlier.PLUG improved Q1 gross margin to negative 13% from negative 55% year over year.PLUG is pursuing margin gains via cost cuts, hydrogen network expansion and electrolyzer growth. Plug Power Inc. (PLUG - Free Report) continues to face profitability challenges despite making progress through cost-reduction and operational efficiency initiatives. The company is focused on lowering hydrogen sourcing costs, optimizing its workforce and reorganizing its manufacturing and real estate setup. These steps are meant to lower expenses and help improve margins over time by increasing utilization across its hydrogen network.
However, Plug Power remains unprofitable. In the first quarter of 2026, PLUG reported a net loss of approximately $246 million compared with a net loss of $196.9 million in the year-ago quarter. Ongoing operating losses and cash usage continue to pressure the company's financial performance.
Plug Power delivered significant margin improvement during the quarter. In the first quarter, its gross margin improved to negative 13% from negative 55% reported in the year-ago period, improving 71% year over year. The improvement was driven by higher sales volumes, cost optimization efforts, enhanced service performance and lower third-party hydrogen sourcing costs. Hydrogen fuel margin rates also improved 54% year over year due to greater leverage on the company's hydrogen network, higher volumes and improved operating efficiency.
Despite the challenges, Plug Power remains committed to long-term recovery. The company continues to focus on margin expansion, disciplined capital deployment and converting its project pipeline into profitable growth. Through ongoing cost reductions, expansion of its hydrogen production network and growth in its electrolyzer business, Plug Power aims to improve its margin trajectory.
Margin Performance of PLUG’s PeersAmong PLUG’s major peers, Bloom Energy Corp.’s (BE - Free Report) cost of revenues surged more than 100% year over year in the first quarter of 2026. However, Bloom Energy’s gross profit rose 154.3% year over year. Bloom Energy’s gross margin expanded 280 basis points to 30%, driven by productivity gains, higher volumes and favorable pricing.
Plug Power’s another peer, Flux Power Holdings, Inc.’s (FLUX - Free Report) total cost of sales was $4.8 million, down 58% year over year in the fiscal third quarter of 2026. However, Flux Power’s gross profit declined 66% year over year. Flux Power’s gross margin decreased 430 basis points year over year.
The Zacks Rundown for PLUGShares of Plug Power have surged 161.5% in a year compared with the industry’s growth of 113.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Plug Power is trading at a forward price-to-earnings ratio of a negative 15.85X against the industry average of 38.36X. PLUG carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PLUG’s bottom line for 2026 has declined in the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Plug Power (PLUG - Free Report) ended the recent trading session at $2.79, demonstrating a -2.11% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
Prior to today's trading, shares of the alternative energy company had lost 24.6% lagged the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
The investment community will be paying close attention to the earnings performance of Plug Power in its upcoming release. The company is expected to report EPS of -$0.08, up 50% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $173.03 million, indicating a 0.54% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.32 per share and revenue of $811.37 million. These totals would mark changes of +77.46% and +14.29%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Plug Power. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Plug Power is currently a Zacks Rank #2 (Buy).
The Electronics - Miscellaneous Products industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Viatris (VTRS - Free Report) . VTRS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
We should also highlight that VTRS has a P/B ratio of 0.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.91. Over the past year, VTRS's P/B has been as high as 0.81 and as low as 0.55, with a median of 0.70.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VTRS has a P/S ratio of 1.23. This compares to its industry's average P/S of 1.39.
Finally, we should also recognize that VTRS has a P/CF ratio of 5.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.44. Over the past 52 weeks, VTRS's P/CF has been as high as 8.41 and as low as 4.30, with a median of 5.49.
Value investors will likely look at more than just these metrics, but the above data helps show that Viatris is likely undervalued currently. And when considering the strength of its earnings outlook, VTRS sticks out as one of the market's strongest value stocks.
Investors interested in Medical Services stocks are likely familiar with Viatris (VTRS - Free Report) and Danaher (DHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Viatris has a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VTRS likely has seen a stronger improvement to its earnings outlook than DHR has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VTRS currently has a forward P/E ratio of 6.22, while DHR has a forward P/E of 21.09. We also note that VTRS has a PEG ratio of 1.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DHR currently has a PEG ratio of 2.27.
Another notable valuation metric for VTRS is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DHR has a P/B of 2.38.
These metrics, and several others, help VTRS earn a Value grade of A, while DHR has been given a Value grade of D.
VTRS sticks out from DHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that VTRS is the better option right now.
Viatris Inc. ends the first half of 2026 on a high note. On May 8, its stock reached a 52-week high of $17.53. One of the key drivers behind Viatris' recent rally is its pipeline, which includes more than 10 late-stage product candidates.
In the latest trading session, Coupang, Inc. (CPNG - Free Report) closed at $18.00, marking a -4.41% move from the previous day. This change lagged the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
Shares of the company have appreciated by 20.55% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 5.56%, and the S&P 500's gain of 0.29%.
The investment community will be closely monitoring the performance of Coupang, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.14, marking a 800% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.93 billion, up 4.8% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.17 per share and revenue of $37.75 billion. These totals would mark changes of -241.67% and +9.31%, respectively, from last year.
Any recent changes to analyst estimates for Coupang, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Coupang, Inc. holds a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
The 2026 stock market continues to be shaped by several key investing themes, including artificial intelligence (AI), space, semiconductor chips, the data center build-out, and the ancillary companies that support these industries. In this excitement, many region-dominating, consumer-facing stocks have gotten left behind by the market -- and I think that's a once-in-a-decade opportunity for investors.
Here are five niche-leading growth stocks to consider buying on the dip as the market turns its attention elsewhere.
Image source: The Motley Fool.
1. MercadoLibre: 37% below 52-week high Latin American e-commerce and fintech behemoth MercadoLibre (MELI 0.10%) is a 59-bagger since its 2007 initial public offering and has become a key component of the region's economy. MercadoLibre is now home to 84 million active buyers and 82 million fintech users and continues to experience incredible growth rates, with its sales rising 49% in its latest quarter.
However, as the company spends heavily on its logistics network to offer features like a lower free shipping threshold in Brazil and continues to grow its loan portfolio faster than its overall revenue, its margins have dipped this year, prompting the stock's pullback.
Today's Change
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$
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Now trading at a reasonable 43 times earnings -- considering its blistering sales growth rates, expansion into new geographies, and budding growth optionality through its new adjacent products -- MercadoLibre might be my favorite stock to add to right now.
2. Coupang: 46% below 52-week high It has been a brutal year for South Korean e-commerce juggernaut Coupang (CPNG +1.16%) following its data leak from November 2025 that affected over 33 million customers. This leak led to a $409 million fine by South Korean regulators and prompted U.S.-based Coupang to spend $1.2 billion on a voucher program to make amends with its customers. This has weighed heavily on the company's recent results.
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That said, I think the worst is finally behind the company. Management noted that it has recouped 80% of the memberships it lost during the fiasco, and has been buying shares back hand over fist while its price remains discounted.
Currently trading at about 0.9 times sales -- near its lowest-ever mark -- Coupang looks like a reasonably priced buy as it expands further into Taiwan and Japan while building out a larger ecosystem of offerings for its members.
3. Sea Limited: 54% below 52-week high Southeast Asian e-commerce and fintech company Sea Limited (SE +3.09%) also dominates its region, much like MercadoLibre and Coupang. However, its shares have traded down sharply over the past year. The company's margins dipped while it defended its territory through seller incentives and various promotions.
While this is a reasonable reaction from the market, I think it has been overdone -- especially as Sea grew sales by 47% in its latest quarter. Best yet, Sea's VIP membership grew by 40% to over 10 million customers, and Brazil remained the fastest-growing market for Shopee (Sea's e-commerce unit).
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Interested investors will want to keep a close eye on loan performance in the fintech unit. But for now, things look fine, and the growth looks incredible, with Monee loan principal outstanding soaring 71%.
Trading at just 23 times forward earnings, while guiding for sales growth of 25% in 2026, Sea remains an intriguing growth stock, provided its profitability doesn't turn negative.
4. Grab Holdings: 46% below 52-week high Singapore-based mobility, delivery, and fintech "super app" Grab Holdings (GRAB 0.86%) has quickly become the leading power in Southeast Asia. In its last quarter, Grab grew sales by 24% and users by 16%, bringing its total to nearly 52 million.
However, despite its steady 20%-plus growth over the past year, Grab's stock has plummeted amid market concerns about its minimal profitability. These concerns are perfectly valid -- at some point, we want to see some tangible profits -- but I think it is far too early to worry about profitability, considering the number of irons that Grab has in the fire.
With taxis, rental cars, motorcycles, food and grocery delivery, package delivery, and even a suite of fintech products sold across eight countries in Southeast Asia, Grab isn't a simple operation, and it may take time for profitability to fully bloom. However, this complexity should prove to be a feature, not a bug, for investors looking at the long haul, as peers won't easily replicate it.
Trading at 38 times forward earnings (despite minimal profitability so far), Grab could quickly outgrow its reasonable valuation as it continues expanding.
Image source: The Motley Fool.
5. Uber: 28% below 52-week high Shares of the world's leading ride-hailing app, Uber Technologies (UBER 2.35%), remain more volatile than the stock's impressive underlying operations might suggest. Facing mounting worries from a growing list of competitors offering autonomous ridesharing vehicles, Uber's stock has slid over the last year. However, I think it is short-sighted to say this is catching Uber by surprise.
In fact, Uber already has numerous autonomous vehicle (AV) partnerships in place, and could theoretically become a more profitable company as it relies on fewer human drivers. Furthermore, I think Uber is well-positioned to become the "aggregator" of choice for autonomous vehicle makers, which will likely find access to the company's 200 million monthly active customers a natural fit to partner with.
Trading at just 15 times free cash flow, despite growing sales by 10% in its latest quarter, Uber is being priced as though AVs will only hurt the company's business, rather than providing the tailwind I think they could become.
NEW YORK--(BUSINESS WIRE)--Schrödinger, Inc. (Nasdaq: SDGR) today reported that on June 12, 2026, the company granted restricted stock units (RSUs) with respect to 10,771 shares of the company’s common stock to seven newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.
The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.
The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.
About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.
Schrödinger, Inc. (Nasdaq: SDGR) today reported that on June 12, 2026, the company granted restricted stock units (RSUs) with respect to 10,771 shares of the company’s common stock to seven newly hired employees. These grants were made pursuant to the company’s 2021 Inducement Equity Incentive Plan, were approved by the compensation committee of the board of directors pursuant to a delegation by the company’s board of directors, and were made as a material inducement to such employees’ acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) as a component of his or her employment compensation.
The RSUs vest over four years, with 25 percent of such RSUs vesting when such employee completes 12 months of continuous service measured from the vesting commencement date, and the balance of the RSUs vesting in a series of successive equal yearly installments of 1/4 of the original number of RSUs upon each such employee’s completion of each additional year of service over the three-year period following the first anniversary of the vesting commencement date.
The inducement grants are subject to the terms and conditions of award agreements covering the grants and the company’s 2021 Inducement Equity Incentive Plan.
About Schrödinger
Schrödinger is transforming molecular discovery with its computational platform, which enables the discovery of novel, highly optimized molecules for drug development and materials design. Schrödinger’s software platform is built on more than 30 years of R&D investment and is licensed by biotechnology, pharmaceutical and industrial companies, and academic institutions around the world. Schrödinger also leverages the platform to advance a portfolio of collaborative and proprietary programs. Founded in 1990, Schrödinger has approximately 800 employees operating from 15 locations globally. To learn more, visit www.schrodinger.com, follow us on LinkedIn, or visit our blog, Extrapolations.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260618500600/en/
NORTHBROOK, Ill.--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today announced estimated catastrophe losses for the month of May of $289 million or $228 million, after-tax. Total catastrophe losses for April and May were $1.16 billion or $915 million, after-tax.
Allstate Protection policies in force are as follows:
Allstate Protection Policies in Force (1)
(in thousands)
May 31,
2026
April 30,
2026
May 31,
2025
May 31, 2026 v
Apr. 30, 2026
May 31, 2026 v
May 31, 2025
Auto
25,901
25,805
25,226
0.4 %
2.7 %
Homeowners
7,788
7,764
7,587
0.3 %
2.6 %
Other personal lines
4,930
4,919
4,887
0.2 %
0.9 %
Commercial lines
180
179
180
0.6 %
— %
Total
38,799
38,667
37,880
0.3 %
2.4 %
(1) Policy counts are based on items rather than customers. A multi-car customer would generate multiple item (policy) counts, even if all cars were insured under one policy. Lender-placed policies are excluded from policy counts because relationships are with the lenders.
As previously communicated, policies in force will be reported in our quarterly earnings release going forward.
Financial information, including material announcements about The Allstate Corporation, is routinely posted on www.allstateinvestors.com.
Forward-Looking Statements
This news release contains “forward-looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like “plans,” “seeks,” “expects,” “will,” “should,” “anticipates,” “estimates,” “intends,” “believes,” “likely,” “targets” and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement.
About Allstate
The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with affordable, simple and connected protection for autos, homes, electronic devices, and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate has 212 million policies in force and is widely known for the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com.
Key Takeaways CSU forecasts a milder 2026 hurricane season, with 11 named storms, five hurricanes and two major hurricanes.PGR, ALL, HCI and PLMR are backed by stronger pricing, disciplined underwriting and healthy capital positions.Insurers are using analytics, AI and connected data to improve risk selection, claims efficiency and costs. Colorado State University (CSU) expects the 2026 hurricane season to be milder than normal, forecasting 11 named storms, including five hurricanes and two major hurricanes. The Atlantic hurricane season generally runs from June through November, with peak activity in August and September, making the third quarter particularly important for property and casualty insurers.
Despite catastrophe-related risks, insurers such as HCI Group (HCI - Free Report) , The Progressive Corporation (PGR - Free Report) , The Allstate Corporation (ALL - Free Report) and Palomar Holdings (PLMR - Free Report) are expected to remain resilient, supported by stronger pricing, disciplined underwriting, favorable reserve development, increased exposure and healthy capital positions.
According to Aon, natural disasters caused global economic losses of $260 billion last year, while insured losses exceeded $127 billion. Yet the industry generated an estimated net underwriting gain of $63 billion in 2025, significantly higher than $23 billion in 2024, per Verisk. The combined ratio improved to 92.9% from 96.6%, benefiting from relatively lower catastrophe losses. However, Swiss Re projects the combined ratio to deteriorate by 50 basis points to 99% in 2026 as catastrophe pressures normalize. Insurance Information Institute and Milliman expect personal lines insurers to face higher catastrophe-related losses, which could weigh on underwriting profitability.
Although incurred losses and loss adjustment expenses declined, industry net income fell 12.4% year over year to $148 billion in 2025, while policyholders’ surplus increased 9.1% to $1.2 trillion, reflecting strong capitalization per Verisk report.
In the first quarter of 2026, Aon estimated catastrophe-related economic losses at $37 billion, with insured losses of roughly $20 billion from storms and floods. Nonetheless, better pricing and frequent natural disasters are supporting policy renewals and improving insurers’ ability to absorb catastrophe losses.
At the same time, Marsh’s Global Insurance Market Index reported a 5% decline in global commercial insurance rates in first-quarter 2026, marking the seventh consecutive quarter of pricing moderation due to stronger competition, favorable claims trends and improved reinsurance conditions.
Still, prudent pricing remains essential, as accurately priced portfolios improve loss ratios and support efficient capital deployment. Fitch Ratings noted continued strength in personal auto insurance driven by stronger investment income and lower claims frequency. S&P Global expects underwriting profitability to stabilize as insurers balance growth and pricing discipline. Swiss Re forecasts 4% premium growth in 2026, while Deloitte projects global insurance premiums to reach $722 billion by 2030.
Meanwhile, technology adoption across the industry continues to accelerate. Insurers are investing heavily in digital platforms, advanced analytics and generative AI to improve underwriting precision, claims efficiency, scalability and overall operating performance.
Stocks in FocusCatastrophe events are driving higher policy renewal rates and stronger pricing power for Zacks Property and Casualty Insurance industry players. At the same time, advanced analytics, AI, and connected data are improving risk selection, reducing fraud, enhancing claims efficiency, and lowering costs, supporting stronger underwriting margins and profitability. With the help of the Zacks Stock Screener, we have selected four stocks that carry a favorable Zacks Rank and have witnessed upward estimate revisions.
HCI Group, a Zacks Rank #2 (Buy) Florida-focused insurance business, has been growing its homeowners business, acquiring profitable books of business, proactively managing risk and loss costs and deploying excess capital into investments and growth initiatives. The company also benefits from favorable industry dynamics as larger national insurers continue reducing exposure in high-risk coastal markets, creating opportunities for premium growth and market share expansion. Additionally, HCI’s real estate and technology subsidiaries provide diversification beyond traditional insurance operations.
Though estimates for its 2026 bottom line indicate a 20.5% year-over-year decline, they have moved 1.4% north over the past 30 days, reflecting analysts' optimism. It has a VGM Score of B.
Progressive is one of the country’s largest auto insurance groups, the largest seller of motorcycle and boat policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written. A solid market presence, a convincing portfolio of products and services, and underwriting and operational expertise should help this insurer deliver steady profitability.
Progressive’s leadership in Personal Auto remains a major driver of long-term growth. Its growth strategy is its push toward bundled offerings, particularly auto and home bundles, which deepen customer engagement and improve retention economics. Also, technology remains at the core of Progressive’s competitive edge. It has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for PGR’s 2026 bottom line have risen 2.7% over the past 30 days but suggest a 7.8% decrease from the year-ago reported number. Its expected long-term earnings growth is pegged at 1.9%. It has a VGM Score of B.
Allstate is the third-largest property and casualty insurer and the largest publicly traded personal lines insurer in the United States. The company is currently executing a strategic transformation to become a more cost-efficient and digitally enabled insurer with broad distribution capabilities. Its auto insurance business recently regained targeted profitability, while the homeowners segment continues to deliver stable and attractive returns. The company has been restructuring its portfolio to prioritize its personal property-liability operations. Allstate is also expanding its Protection Services segment to create additional growth opportunities beyond traditional insurance. ALL carries a Zacks Rank #3.
Though estimates for its 2026 bottom line indicate a 15.2% year-over-year decline, the same have moved 1.5% north over the past 30 days, reflecting analysts' optimism. It has a VGM Score of B.
Palomar Holdings is a rapidly growing and profitable insurance holding company focused on the provision of catastrophe insurance for personal and commercial property. Premium growth across lines, expanding fee income, rising investment yield and disciplined reinsurance will sustain earnings momentum.
Palomar’s fee-based platform, PLMR-FRONT, is positioned to drive medium-term growth. The addition of this revenue stream is expected to strengthen its earnings foundation. PLMR identifies Surety as an attractive long-term growth opportunity. Like crop insurance, Surety is not correlated with the traditional property and casualty insurance cycle, offering diversification and stability. The stock carries a Zacks Rank #3.
Estimates for Palomar’s 2026 bottom line have moved 1.1% north over the past 30 days, implying a 25.3% increase from the year-ago reported number. It has a Growth Score of A.
Ares Capital (ARCC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this private equity firm have returned +0.3% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Financial - SBIC & Commercial Industry industry, to which Ares Capital belongs, has lost 1.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Ares Capital is expected to post earnings of $0.47 per share, indicating a change of -6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $1.91 for the current fiscal year indicates a year-over-year change of -5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.93 indicates a change of +1% from what Ares Capital is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ares Capital.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Ares Capital, the consensus sales estimate of $776.52 million for the current quarter points to a year-over-year change of +4.2%. The $3.14 billion and $3.2 billion estimates for the current and next fiscal years indicate changes of +3% and +1.9%, respectively.
Last Reported Results and Surprise HistoryAres Capital reported revenues of $763 million in the last reported quarter, representing a year-over-year change of +4.2%. EPS of $0.47 for the same period compares with $0.5 a year ago.
Compared to the Zacks Consensus Estimate of $768.96 million, the reported revenues represent a surprise of -0.77%. The EPS surprise was -2.08%.
Over the last four quarters, Ares Capital surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Ares Capital is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ares Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Sixty thousand dollars a year is the income many retirees are actually trying to replace. It is enough to support a comfortable lifestyle in much of the country, especially for households that have paid off their mortgage and eliminated other major debts. The challenge is not simply generating that income today. It is generating it in a way that preserves purchasing power tomorrow. The question this article answers is straightforward: How much capital does it take to produce $60,000 a year, and which income strategy leaves you with more money ten years down the road?
The three yield tiers, in dollars The math is unforgiving. Income target divided by yield equals capital required.
Conservative (3% to 4%): At a 3.5% yield, the capital required lands in the dividend growth zone of blue-chip payers like Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) yielding 2.3%, Procter & Gamble (NYSE:PG) at about 3%, Coca-Cola (NYSE:KO) at 2.7%, and broad dividend-growth equity funds. Highest capital required, lowest risk of income disruption. Moderate (5% to 7%): At a 7% yield, the capital needed drops sharply. Preferred shares, equity REITs, covered-call equity funds, and high-dividend value funds live here. Growth slows or stalls, and upside is often capped. Aggressive (8% to 14%): At a 12% yield, capital required drops the most. This is Ares Capital (NASDAQ:ARCC) at 10.2%, AGNC Investment (NASDAQ:AGNC) near 14%, leveraged covered-call funds, and high-yield credit. Lowest capital today. Highest risk that distributions get cut and principal erodes. How $60,000 becomes $125,000 Yield is a snapshot.
Dividend growth is the movie. Johnson & Johnson has raised its dividend for 64 consecutive years, increasing its quarterly payout from $0.375 in 2006 to $1.34 in 2026. Coca-Cola and Procter & Gamble have also spent decades steadily increasing their distributions, rewarding investors who prioritized growth over headline yield.
Now consider the math. A dividend income stream growing at 7% annually roughly doubles every ten years. That means a portfolio generating $60,000 today could be producing nearly $120,000 a decade from now and substantially more after that. This is the core appeal of dividend-growth investing: accepting a smaller paycheck today in exchange for a much larger one later. Over a long retirement, the portfolio that starts behind can ultimately finish far ahead.
What inflation does to a flat check A flat income stream is not really flat. Inflation steadily erodes purchasing power, even when the dollar amount never changes. At 3% annual inflation, a $60,000 income stream buys significantly less after 10 years and dramatically less after 20. The high-yield investment that looks generous in year one may not feel nearly as generous a decade later if the payout fails to grow alongside the cost of living.
Investor A versus Investor B Investor A starts with a higher income stream that remains largely unchanged. Investor B starts with less income but increases that income by 7% per year. Over time, the growing stream catches and eventually surpasses the flat one. Given a long enough horizon, the lower-yield, higher-growth portfolio can produce both greater annual income and greater cumulative income, despite starting far behind.
When current yield wins anyway Dividend growth works best when time is on your side. Investors with shorter time horizons may reasonably prefer current income over future income growth. Someone in their late seventies who depends on portfolio income today may benefit more from a larger check now than a potentially larger check fifteen years from now. In those situations, higher-yield investments can make a great deal of sense.
The key variable is time. A retiree with twenty or thirty years ahead may be well served by accepting a lower starting yield in exchange for decades of dividend growth. A retiree with a much shorter horizon may reach the opposite conclusion. Neither approach is inherently right or wrong. The best choice depends on whether you have enough time for compounding to matter.
What now? Calculate your actual spending, not your salary. The replacement number is often well below gross income because payroll taxes and savings contributions disappear in retirement. Compare the 10-year total return of a dividend-growth fund against a high-yield fund, including reinvestment. The gap is rarely closed by yield alone. If you are within five years of needing the income, model a blended portfolio: aggressive-tier yield on the dollars you need in years 1 to 5, dividend growth on the dollars you need in years 10 and beyond.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Ares Capital (ARCC - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Ares Capital currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, nine are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 60% and 13.3% of all recommendations.
Brokerage Recommendation Trends for ARCC
Check price target & stock forecast for Ares Capital here>>>
While the ABR calls for buying Ares Capital, 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.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
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.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
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.
Should You Invest in ARCC?In terms of earnings estimate revisions for Ares Capital, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.91.
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 Ares Capital. 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 Ares Capital.
A $2 million dividend portfolio may appear straightforward on paper, but the amount investors actually get to spend depends heavily on taxes. In California, the gap between gross portfolio income and after-tax cash flow can be substantial. Federal dividend tax rates, the net investment income tax, state income taxes, and the classification of each distribution all influence how much money ultimately reaches a retiree’s bank account.
That distinction is often overlooked in income comparisons. Two portfolios can produce the same headline yield while delivering very different amounts of spendable income. In some cases, a lower-yield portfolio built around qualified dividends can generate more after-tax cash than a much higher-yield portfolio whose distributions are taxed as ordinary income. Yield is only the starting point. What matters is how much of that income survives the tax bill.
The Conservative Tier: Qualified Dividends from Blue Chips Consider Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) as the anchor. The current yield sits at 2.3%, and the company just raised its quarterly payout to $1.34 per share, extending a 64-year streak of annual increases. Build a diversified dividend-growth sleeve around it and a 3.5% blended yield is reasonable.
On $2 million at 3.5%, gross income is $70,000. These are qualified dividends. For a high-bracket California couple, the stack is roughly 20% federal + 3.8% NIIT + 13.3% state, or about 37% combined. Net spendable income: roughly $44,100.
The trade-off is that JNJ’s dividend grew from $0.54 per quarter in 2010 to $1.34 in 2026. That compounding is the whole point of this tier.
The Moderate Tier: REITs and Utility CEFs Stepping up to 5% to 7% yield brings in real estate and closed-end utility funds. Realty Income (NYSE:O) yields 5.4% and pays monthly, with 670 consecutive monthly distributions and a current payment of $0.2705 per share. Reaves Utility Income Fund (NYSE:UTG) pushes the yield closer to 7% through $0.20 monthly distributions.
At a 6% blended yield, $2 million produces $120,000 gross. Here the tax math turns ugly. REIT distributions are pass-through ordinary income, though the 20% qualified business income deduction softens the federal bite. UTG mixes qualified dividends with return of capital. Assume a blended effective rate near 40% for a top-bracket Californian. Net spendable: about $72,000.
The income jumps. The growth slows. Realty Income’s monthly raise from $0.27 to $0.2705 is the cadence to expect: real, but small.
The Aggressive Tier: BDCs and Leveraged Bond Funds Ares Capital (NASDAQ:ARCC) yields 10.2% with a steady $0.48 quarterly distribution that has held for eight consecutive quarters. PIMCO Dynamic Income Fund (NYSE:PDI) pays a flat $0.2205 monthly, pushing distribution yield into the 13% to 14% range.
A 50/50 split would yield roughly 12%, or $240,000 on $2 million. BDC and leveraged CEF distributions are almost entirely ordinary income. In California, the top federal rate of 37%, plus 3.8% NIIT, plus 13.3% state can exceed 50%. Net spendable: roughly $120,000.
Two further problems hide inside that number. ARCC trades around $19, just below its roughly $20 NAV, and is down about 6% over the past year. PDI’s flat distribution since 2020 has been supported by periodic special year-end distributions that effectively returned capital. High yield, eroding base.
The Tax Trap Hidden Inside Portfolio Income Two portfolios can generate the same $120,000 in annual income and leave their owners with very different amounts of spendable cash. The difference often comes down to taxes. Income from qualified dividends generally receives more favorable tax treatment than REIT distributions, closed-end fund payouts, bond interest, or business development company distributions. In high-tax states such as California, that distinction can translate into thousands of dollars of additional after-tax income each year.
That advantage compounds over time. A portfolio built around companies with a history of dividend growth not only benefits from favorable tax treatment but also has the potential to generate a larger income stream in the future. Dividend increases help offset inflation and reduce the need to reach for ever-higher yields. Investors who focus exclusively on headline income can miss the fact that the most valuable dollar is often the one they actually get to keep.
The long-term effect becomes even more pronounced when income growth enters the equation. A company that steadily raises its dividend can turn a modest yield today into a much larger income stream a decade from now. Higher-yield investments still have a place, particularly for investors who need income immediately, but the combination of tax efficiency and dividend growth can make lower-yielding portfolios surprisingly competitive over a full retirement.
Today’s “To Do” List Pull your actual California marginal rate and federal bracket, then recalculate each tier using your real combined rate rather than the top-of-stack assumption used here. California’s cost of living index near 111 compresses purchasing power further. Compare 10-year total return, not yield, between a qualified-dividend grower and a high-yield BDC or bond CEF. Add reinvested distributions on both sides before deciding. Benchmark every yield against the 4.5% 10-year Treasury. If a position pays you 5% pre-tax of ordinary income, the after-tax spread over Treasuries may be negative for a top-bracket Californian.
The average American household spent about $200 per month on gasoline according to the latest federal expenditure data. With gasoline prices remaining elevated in 2026, many families are paying considerably more. Most people treat their gas bill as a fact of life. Investors can treat it as an income target. The goal is simple: build a portfolio that generates enough cash flow to cover every trip to the pump without touching principal.
Four yield tiers to keep you on the road The math is straightforward: annual gasoline spending divided by portfolio yield equals the capital required. Using a fuel budget of about $2,400 per year, here is what different income strategies require.
3.5% yield (conservative dividend growth): about $68,600. This is the territory of dividend aristocrats and regulated utilities. Slowest income today, fastest income growth tomorrow. 5% yield (balanced): $2,400 divided by 0.05 equals $48,000. Net-lease REITs and high-dividend equities live here. Moderate growth, monthly cash in many cases. 7% yield (high income): $2,400 divided by 0.07 equals about $34,300. Covered-call funds, preferred shares, and selected BDCs land here. Growth slows; income is the point. 10% yield (aggressive): $2,400 divided by 0.10 equals $24,000. BDCs and mortgage REITs dominate. Highest current income, real risk of NAV erosion. Investors who prioritize safety over income growth have another option. With the 10-year Treasury yielding around 4.5%, a portfolio of roughly $53,000 could generate enough interest to cover a $2,400 annual fuel bill while avoiding stock market risk altogether.
3.5% that grows vs. 10% that does not Consider two portfolios sized to cover $3,000 today.
Portfolio A: $85,700 at 3.5% yield, with dividends growing 7% a year. Think Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction), which just raised its quarterly dividend to $1.34, its 64th consecutive year of increases; Coca-Cola (NYSE:KO), whose quarterly payout rose from $0.51 to $0.53 this year; and NextEra Energy (NYSE:NEE), where the quarterly dividend climbed from $0.5665 to $0.6232.
Portfolio B: $30,000 at 10% yield, flat. Ares Capital (NASDAQ:ARCC) has held its dividend at $0.48 a quarter since Q1 2023, and its share price is down about 4% over the past year.
Both pay $3,000 in year one. By year 10, Portfolio A throws off roughly $5,900. By year 20, it produces about $11,600, enough to cover gasoline, auto insurance, and routine maintenance combined. Portfolio B still pays $3,000, assuming no dividend cuts.
Why growth beats yield over decades Fuel prices swing, vehicles get more efficient, and EVs change the equation entirely. A static 10% payout looks generous today and inadequate in 15 years if inflation persists. A 3.5% yield that compounds at 7% doubles in roughly a decade, which is why JNJ has returned about 168% over 10 years while NEE returned roughly 256%, both before reinvested dividends.
When not to build this portfolio Income investing is not the right first move for everyone. Only 46% of U.S. adults have three months of rainy-day savings, and 38% carry a credit card balance. If your emergency fund is thin or you are paying 22% on a card balance, retiring that debt outyields almost any dividend portfolio on a risk-adjusted basis. Build the cushion first, then build the gas-paying machine.
Three actions to take this week Pull 12 months of credit card statements and total your actual fuel spend. Many households overestimate; some underestimate by 30%. Compare a dividend grower’s long-term income growth against a high-yield income vehicle. Ares Capital has delivered strong returns, but much of its appeal comes from current income, while companies such as JNJ and Coca-Cola have historically relied more heavily on steadily rising dividends. Hold BDC and REIT shares inside a Roth IRA or traditional IRA when possible, since their distributions are largely taxed as ordinary income. The goal is to stop worrying about gasoline. Once the portfolio covers the pump, every future dividend increase starts buying something else.
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The average federal student loan borrower leaves school owing roughly $38,000, though balances of $50,000 or more are common among graduate students and many private-college graduates. Depending on interest rates and repayment terms, that debt can create a substantial monthly obligation just as a young adult is trying to rent an apartment, buy a first home, start a family, or begin saving for retirement.
Helping a child carry $50,000 of student loan debt typically costs a parent about $600 a month, or $7,200 a year, for a decade. That money has to come from somewhere: wages, Social Security, retirement savings, or portfolio income. A different approach is to build a portfolio whose dividends cover the payment, allowing the underlying capital to remain invested while the income stream does the work.
Why Parents Might Pay Off Their Child’s Student Loans Many parents already carry education debt of their own through private loans or Parent PLUS loans used to help fund a child’s education. Those obligations are separate from student loans in the child’s name, which often come with lower interest rates and more flexible repayment options.
For some families, helping with those student loans is about more than generosity. A lower debt burden can help a young adult qualify for a mortgage, move into their own place, start saving, and build financial stability sooner. In that sense, paying down student debt may be viewed not just as a gift, but as an investment in a child’s independence.
Parents in this situation may also be giving their children the gift of a stronger credit profile. When the loans are in the child’s name, consistent payments help build a positive payment history, while a declining loan balance improves the borrower’s overall debt picture. A stronger credit record can translate into better borrowing terms in the future, potentially lowering the cost of mortgages, auto loans, and other forms of credit.
Here are three tiers to reach the goal of funding $600 monthly payments on a $50,000 student loan debt.
The 3.5% Tier: Blue-Chip Dividend Growth This is the “sleep at night” range populated by dividend kings and regulated utilities. Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) yields about 2.2% after raising its quarterly payout to $1.34, extending a six-decade streak of annual increases. Southern Company (NYSE:SO), the Atlanta utility serving millions of customers across the Southeast, yields about 3.2% and has lifted its quarterly dividend from $0.64 in 2021 to $0.74 recently. A blended 3.5% basket is diversified and is the most likely to appreciate, but it takes the largest check upfront.
The 5% Tier: REITs and Mature Telecom Realty Income (NYSE:O), the net-lease REIT known for its 670+ consecutive monthly dividends, yields about 5.2%. Mature telecom names guiding to strong free cash flow round out this tier with similar payouts. The tradeoff at this tier is slower dividend growth and a payout that tracks, but does not lead, inflation.
The 7% Tier: Hybrid Income Reaching 7% generally means blending REITs with preferred shares, investment-grade corporate bond funds yielding above the 4.5% 10-year Treasury, and selective covered-call equity strategies. Capital drops to about $102,900, but the income stream stops compounding meaningfully.
The 10% Tier: BDCs and Mortgage REITs Ares Capital (NASDAQ:ARCC), the largest publicly traded business development company, yields nearly 10% at its $0.48 quarterly rate. AGNC Investment (NASDAQ:AGNC) yields about 14%, but its dividend has fallen from $1.50 quarterly in 2009 to $0.12 monthly, and tangible book value declined last quarter. High current income, frequent principal erosion.
Check vs. Portfolio Writing the check from wages or a 401(k) withdrawal locks the family’s cash flow to the loan schedule. A portfolio paying $600 in dividends preserves the principal, can be re-tasked to other needs once the loan is gone, and steps the parent off the monthly treadmill. The tradeoff is the capital itself: if that $144,000 came from a brokerage account, it is no longer available for an emergency.
Why Lower Yield Often Wins A 3.5% portfolio that grows its payout 7% a year delivers about $14,160 of annual income after 10 years and roughly $27,860 after 20. A 10% portfolio with a flat or declining payout still produces $7,200 in year one but is generating the same nominal dollars two decades later, while CPI has risen to 334.0 and counting. JNJ illustrates the compounding: its quarterly payout grew from $0.80 in 2016 to $1.34 today.
When Paying Off the Loans Is the Better Investment A dividend portfolio is not automatically the right answer. When student loans carry high interest rates, especially variable-rate private loans or newer Parent PLUS loans with rates in the upper single digits, paying off the debt may provide a better risk-adjusted return. Eliminating a loan charging 8% or more is effectively a guaranteed return that many income portfolios cannot match after taxes and volatility.
The type of loan matters as well. If the debt is in the child’s name, the obligation remains with the child even if the parent helping with payments passes away. Parent PLUS loans work differently. Because the debt belongs to the parent borrower, the remaining balance is generally discharged upon the parent’s death. For some families, that makes directing extra dollars toward the child’s loans a higher priority, since those balances could otherwise follow the child for many years.
Direct payoff is also the stronger choice for households approaching retirement without a substantial emergency fund or for investors who know they would struggle to stay invested during a market downturn. Income strategies only work if the investor can hold through the inevitable periods of volatility.
Three Actions Pull the loan’s actual interest rate and amortization schedule. Anything above 7% fixed is hard to beat with dividends after tax. Compare a 10-year total-return chart of a 3.5%-yield dividend grower against a 10%-yield BDC or mortgage REIT before committing capital to either tier. Decide whether the goal is covering the payment for 10 years or building a permanent income stream. The answer dictates which tier fits.
In the latest close session, Warner Bros. Discovery (WBD - Free Report) was down 1.35% at $26.24. The stock's change was less than the S&P 500's daily loss of 1.22%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.35%.
The operator of cable TV channels such as TLC and Animal Planet's stock has dropped by 1.81% in the past month, falling short of the Consumer Discretionary sector's gain of 2.1% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Warner Bros. Discovery in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.12, reflecting a 119.05% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.39 billion, indicating a 4.33% decline compared to the corresponding quarter of the prior year.
WBD's full-year Zacks Consensus Estimates are calling for earnings of -$1.07 per share and revenue of $37.04 billion. These results would represent year-over-year changes of -468.97% and -0.69%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Warner Bros Discovery. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 49.63% lower. At present, Warner Bros. Discovery boasts a Zacks Rank of #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Warner Bros. Discovery (WBD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this operator of cable TV channels such as TLC and Animal Planet have returned -3.1% over the past month versus the Zacks S&P 500 composite's +2% change. The Zacks Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, has lost 11.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Warner Bros. Discovery is expected to post a loss of $0.12 per share for the current quarter, representing a year-over-year change of -119.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.4%.
For the current fiscal year, the consensus earnings estimate of -$1.07 points to a change of -469% from the prior year. Over the last 30 days, this estimate has changed -49.6%.
For the next fiscal year, the consensus earnings estimate of $0.03 indicates a change of +97.3% from what Warner Bros. Discovery is expected to report a year ago. Over the past month, the estimate has changed -62.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Warner Bros. Discovery is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Warner Bros. Discovery, the consensus sales estimate for the current quarter of $9.39 billion indicates a year-over-year change of -4.3%. For the current and next fiscal years, $37.04 billion and $38.02 billion estimates indicate -0.7% and +2.6% changes, respectively.
Last Reported Results and Surprise HistoryWarner Bros. Discovery reported revenues of $8.89 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of -$1.17 for the same period compares with -$0.18 a year ago.
Compared to the Zacks Consensus Estimate of $8.93 billion, the reported revenues represent a surprise of -0.42%. The EPS surprise was -1070%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Warner Bros. Discovery is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Warner Bros. Discovery. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The media and entertainment sector is undergoing a terminal consolidation phase, completely altering how capital flows through the sector. Investors chasing unverified buyout rumors learned a harsh lesson when speculative chatter surrounding Lionsgate Studios Corp. NYSE: LION and Netflix, Inc. NASDAQ: NFLX collapsed overnight. Retail traders piled in on hopes of a premium buyout, only to be crushed by a swift denial from Netflix management. Speculative intellectual property hunting is a wealth hazard. Smart money is deploying capital in entirely different ways.
Trillion-dollar technology conglomerates exercise strict discipline, prioritizing margin defense over legacy studio bailouts. The unconditional Department of Justice clearance of the $110.9 billion Paramount Skydance NASDAQ: PSKY and Warner Bros. Discovery, Inc. NASDAQ: WBD mega-merger, alongside the $22 billion Fox Corporation NASDAQ: FOXA buyout of Roku, Inc. NASDAQ: ROKU, establishes a new paradigm. The mergers-and-acquisitions playbook has permanently pivoted from content hoarding to distribution control and hard arbitrage.
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Debt Traps and Dead Scripts: The Studio IllusionLionsgate Studios Today
LION
Lionsgate Studios
$15.05 -0.16 (-1.05%)
As of 03:58 PM Eastern
52-Week Range$5.55▼
$16.70Price Target$15.37
When options volume for Lionsgate Studios spiked to over 21,646 contracts on June 16, heavily concentrated in July 2026 $16 and $18 speculative calls, the trap was set. The swift denial instantly crushed this premium. This serves as a textbook case of retail behavior generating highly monetizable shorting opportunities for institutional desks.
Let's unpack why the buyout rumor never made fundamental sense. Acquiring intellectual property sounds strategic until you examine the underlying balance sheets. Recent 10-K filings reveal Lionsgate Studios faces an estimated $1.96 billion in debt service obligations over the next 12 months. In an environment where capital costs remain elevated, acquiring an overleveraged balance sheet severely dilutes free cash flow margins for any potential buyer.
Lionsgate Studios carries a massive forward price-to-earnings ratio of over 88, suggesting the current valuation is heavily skewed toward an artificial acquisition premium rather than fundamental earnings growth. Last quarter, Lionsgate Studios missed earnings-per-share estimates, reporting a 7-cent loss versus an expected 2-cent loss.
This lack of fundamental profitability makes the $1.96 billion debt wall even more precarious. Netflix operates with a highly disciplined capital allocation framework. Netflix refuses to function as a white knight for struggling studios just to acquire legacy film franchises.
Netflix simply does not need expensive, debt-laden acquisitions to drive top-line revenue. Netflix surpassed 250 million monthly active users on its ad-supported tier in May 2026. Coupled with aggressive live sports integration, organic average revenue per user is expanding rapidly. Net margins are robust at 28.52%. Sustainable organic growth negates the strategic necessity for margin-dilutive acquisitions.
Institutional short sellers understood this reality. Financial Industry Regulatory Authority data indicates that short interest in Lionsgate Studios surged by more than 191% over the trailing 12 months, representing roughly 9.4% of the float. Smart money bet against the standalone viability of Lionsgate Studios long before retail investors chased the intraday spike.
Digital Tollbooths: Owning the Living Room Operating SystemThe fundamental value in the entertainment sector has migrated from the content itself to the hardware and software that delivers it. Content production is highly commoditized and incredibly capital-intensive. Distribution infrastructure operates as a high-margin digital tollbooth. Fox Corporation recognized this structural dynamic and formalized an agreement to acquire Roku for $22 billion.
FOX Today
$48.79 -0.60 (-1.21%)
As of 04:00 PM Eastern
52-Week Range$48.55▼
$76.39Dividend Yield1.15%
P/E Ratio12.87
Price Target$74.36
This transaction is a masterclass in modern media strategy. Fox Corporation secures the connected television home screen and the invaluable first-party viewing data of over 100 million households. First-party viewing data allows Roku to charge premium rates for targeted programmatic advertising.
By controlling the interface where viewers select streaming applications, Roku extracts a toll from every media transaction on the television screen. Fox Corporation recognized that integrating this targeted advertising engine with its live broadcast network creates a monetization loop that traditional content studios simply cannot replicate.
Owning the living room operating system yields higher structural leverage than owning a mid-tier movie catalog. For investors, the optimal strategy is to accumulate equities that control these digital gateways.
Infrastructure providers operating ad-insertion software, smart television operating systems, and programmatic video ecosystems present compelling fundamentals. These infrastructure providers operate with high-margin, software-as-a-service models.
Roku and similar infrastructure providers remain completely immune to the heavy capital expenditures required to produce blockbuster films or prestige television. When legacy studios realize they cannot survive without localized distribution and targeted ad-insertion capabilities, these infrastructure stocks become the next wave of highly probable acquisition targets.
Spin-Off Scripts: Trading the Sum of the Media PartsGenerating absolute returns in the current volatile environment demands rotating out of mid-cap studio rumors and deploying capital into mathematical spreads. The Paramount Skydance and Warner Bros. Discovery transaction offers a defined, hard catalyst. Warner Bros. Discovery currently trades near $27, down from a finalized $31 all-cash buyout price. That represents a roughly 14 % merger arbitrage spread.
Warner Bros. Discovery Today
WBD
Warner Bros. Discovery
$26.88 -0.07 (-0.26%)
As of 04:00 PM Eastern
52-Week Range$10.75▼
$30.00Price Target$27.04
Historically, media mega-mergers faced intense regulatory scrutiny, keeping arbitrage spreads wide as investors priced in the risk of deal collapse. With the Department of Justice Antitrust Division granting unconditional clearance to the $110.9 billion transaction, the regulatory risk profile is exceptionally asymmetric.
For retail and institutional investors, merger arbitrage involves purchasing Warner Bros. Discovery shares at a discount to the open market price and holding them until the acquiring company finalizes the transaction, automatically converting those shares into the $31 cash payout. Institutional capital will increasingly rotate out of volatile equities and into these high-probability, event-driven spreads to capture yield as the Paramount Skydance deal approaches its closing date.
Beyond outright acquisitions, persistent margin compression across the interactive entertainment space is forcing major corporate restructuring. Microsoft Corporation NASDAQ: MSFT is facing widespread speculation regarding the restructuring of its struggling gaming unit. Internal options reportedly include spinning off the Xbox division into a wholly owned subsidiary or an independent venture to mitigate the capital drain.
This highlights a broader structural shift toward capital efficiency. Buying Microsoft Corporation purely for a minor gaming restructuring offers diluted returns. The actionable trade involves waiting for definitive SEC S-1 filings or spin-off authorizations, then acquiring the newly separated, pure-play equity. Standalone entities unburdened by parent-company overhead typically experience immediate repricing of their sum-of-the-parts valuation. This dynamic consistently attracts aggressive institutional accumulation.
Final Cut: Directing Capital Toward Media GatewaysThe era of throwing capital at any studio with a recognizable film franchise is over. Media consolidation is entering its endgame, rewarding investors who prioritize structural leverage and definitive catalysts over unverified chatter.
Selling into rumor-driven liquidity vacuums capitalizes on retail behavior while maintaining strict institutional risk management. Capital deployment requires formalized term sheets rather than reacting to sector-wide fear of missing out. The swift 5% after-hours correction in Lionsgate Studios shares following Netflix's denial proves that legacy technology companies will not overpay for content.
Investors may want to evaluate media-sector exposure, rotating away from speculative intellectual property holders facing massive debt maturities. Accumulating connected television infrastructure companies or capturing the yield in cleared merger spreads offers a highly calculated approach to navigating the media industry's structural transformation.
Should You Invest $1,000 in Lionsgate Studios Right Now?Before you consider Lionsgate Studios, you'll want to hear this.
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