CarMax Inc (NYSE:KMX) shares fell more than 6% in early trade on Wednesday as investors looked past a better-than-expected first quarter earnings report and focused on margin pressure, credit risks and concerns about the company's profitability strategy.
The used-vehicle retailer reported adjusted earnings per share of $1.31 for the quarter, well above analyst estimates of $0.95.
Revenue increased 6.2% year over year to $8.01 billion, topping consensus expectations of about $7.4 billion.
Combined retail and wholesale vehicle sales rose 3.3% to 392,357 units. Wholesale unit sales increased 8.4%, while retail used-vehicle sales were up slightly. Comparable-store used-vehicle sales declined 0.8%.
Investors, however, focused on declining retail vehicle profitability. Gross profit per retail used vehicle fell $230 year over year to $2,177 as CarMax continued pricing actions aimed at supporting sales growth. The company has now experienced several consecutive quarters of margin compression as it prioritizes volume.
Concerns also centered on credit quality within CarMax Auto Finance (CAF). While CAF penetration increased to 43.3% from 41.8% a year earlier, investors remain cautious about rising loan delinquency risks and the company's increased exposure to lower-tier borrowers. CAF income declined 1% to $140.2 million during the quarter.
The company purchased approximately 322,000 vehicles from consumers and dealers, down 4.4% from a year earlier.
The report was the first under new CarMax CEO Keith Barr, who said in a statement that the company has adopted a four-pillar strategic framework aimed at driving unit sales and earnings growth while improving shareholder returns.
“We are entering this fiscal year with a clear strategy that is driving early results,” he said. “Our goal is clear: deliver strong unit sales and earnings growth that enables us to consistently reward our shareholders.”
CarMax KMX is experiencing a decline in stock price despite surpassing expectations in its Q1 earnings report. The used-car retailer achieved a significant earnings per share (EPS) beat, its largest in recent quarters, with revenue rising 6.2% year-over-year to $8.01 billion. This marks a return to revenue growth, driven primarily by improved unit sales trends—both retail and wholesale. The positive results are attributed to competitive pricing, enhanced value, and effective early strategies under new CEO Keith Barr, indicating that the company's turnaround is gaining momentum.
Key Metrics: - Used comps decreased by 0.8% year-over-year, showing sequential improvement against a challenging +8.1% comparison from last year. - Combined retail and wholesale unit sales rose 3.3% to 392,357, with wholesale units up 8.4% and retail used units slightly higher year-over-year. Focus Areas: - CEO Keith Barr highlighted areas needing improvement, including core operations efficiency, retail pricing and selection, high costs, and a complex digital experience. - The digital-to-store transition is causing friction for customers, limiting KMX's ability to fully utilize its scale. Strategy: - KMX's turnaround strategy focuses on four key pillars: enhancing vehicle offerings, simplifying the customer experience, increasing transaction value, and operating more efficiently. - The plan aims to improve pricing, inventory access, conversion rates, CAF/EPP contributions, and reduce structural costs. Margins: - Competitive pricing pressures margins, although cost reductions are mitigating some earnings impact. - Total gross profit fell 4% year-over-year to $854 million, with gross margin contracting about 110 basis points to 10.7%. - Used retail gross profit per unit (GPU) decreased by $230 year-over-year to $2,177, which was better than management's previous expectation of a $300 decline. CAF/EPP: - CAF penetration rose by 150 basis points to 43.3%, supported by KMX's comprehensive financing initiatives. - The rollout of a redesigned EPP offering is anticipated to add approximately $35 per unit in incremental margin by FY27. KMX's recent Q1 results suggest that CEO Keith Barr is implementing effective strategies for the company's turnaround, although management acknowledges that recovery is still in its early stages. The stock's decline may be attributed to profit-taking after a significant rally leading up to the report, as investors anticipated strong performance. While used comps remain negative, the 0.8% decline reflects a sequential improvement against a tough comparison. The overall improvement in combined retail and wholesale units, along with returning revenue growth, indicates that competitive pricing and enhanced value are beginning to stimulate demand. However, GPU and margins continue to face pressure, raising questions about how long KMX will rely on pricing strategies to boost volume. Encouragingly, GPU pressure was less severe than expected, and cost-saving measures, along with higher CAF penetration and EPP redesign, provide KMX with tools to mitigate earnings impacts. The upcoming quarters will be crucial in determining if the improved unit trends and Barr's broader strategy can lead to consistent earnings growth.
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Shares of CarMax (NYSE:KMX | KMX Price Prediction) stock are down 7% midday Wednesday near $48.30 after the used-car retailer reported fiscal Q1 2027 results before the open. The headline numbers cleared expectations comfortably, but the stock fell anyway.
Carvana (NYSE:CVNA) stock is down 8% to around $64.65 in sympathy, with no company-specific catalyst behind the move. The used-car retail group is treating CarMax’s margin commentary and credit data as a read-through to the entire sector.
The setup is unusual. CarMax delivered both an earnings and a revenue beat, but investors zeroed in on shrinking per-unit profitability and rising loan-loss reserves at CarMax Auto Finance (CAF). The “beat but fell” pattern is amplified because CarMax stock had rallied sharply heading into the report.
CarMax stock has been one of the year’s stronger rebound stories, climbing 35% year to date through Tuesday’s close at $52.11. That run set a high bar going into the release and left less margin for any operational disappointment.
Earnings Beat Masked by Margin and Credit Concerns CarMax reported Q1 FY2027 EPS of $1.31 versus consensus near $0.944, and revenue of $8.01 billion topped the $7.42 billion estimate. Both lines beat by a wide margin.
The quality of earnings cracked under the hood. Retail used vehicle gross profit per unit at CarMax fell $230 year over year to $2,177, reflecting deliberate pricing actions to drive volume. Total gross profit declined and net earnings fell 12% to $185.6 million.
Credit signals also tightened at CarMax. The allowance for loan losses rose to 3% of auto loans held for investment from 3% the prior quarter. CAF income slipped to $140.2 million, even as CAF penetration climbed to 43%, partly reflecting more Tier 2 exposure.
There were operational positives at CarMax. SG&A per total unit improved 7% to $1,619, and wholesale revenues rose 14% on higher wholesale unit volume. However, comparable-store used unit sales declined 1%, hinting at soft underlying demand despite the headline revenue beat.
This was also the first report under new CarMax CEO Keith Barr, three months into the role. Barr stated, “I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth.” Notably, Barr introduced a four-pillar framework and reiterated a $200 million SG&A (Selling, General, and Administrative expenses) exit-rate savings target by fiscal year-end 2027.
Carvana Sells Off in Sympathy Carvana has no company-specific news today. The 8% drop in Carvana shares reflects sector read-through from CarMax’s used-vehicle pricing pressure and credit-quality flag. The two stocks often trade together when sector narratives shift.
The selloff hits a stock that has already been choppy. Carvana stock was down 17% year to date heading into today, with a market cap near $45.94 billion. Carvana shares closed at $70.04 on Tuesday before today’s slide.
Carvana’s most recent quarter was strong, with Q4 2025 EPS of $4.22 and revenue of $5.6 billion, up 58% year over year. However, the company carries $4.83 billion in long-term debt, which makes used-auto credit-cycle headlines particularly impactful for Carvana shares. Bullish analyst notes earlier in 2026 have leaned on resilient securitization structures and rising used-car prices as offsets.
What to Watch Next CarMax already held its earnings call this morning at 8:00 a.m. ET, and management has flagged a formal Strategic Update planned for late fall to outline further milestones under Barr’s plan. That event could reshape the bull-bear debate on CarMax shares. The next scheduled earnings release for CarMax is Q2 FY2027 on September 29.
Carvana’s next scheduled catalyst is its Q2 2026 earnings release, expected in late July. Until then, Carvana stock may trade as a high-beta proxy for used-car retail sentiment, magnifying any peer moves on credit or pricing data.
Sector sentiment is the swing factor for both names. Should used-car credit data stabilize in coming weeks, today’s reaction could prove a one-day overshoot at CarMax and Carvana. A continued uptick in subprime auto delinquencies, on the other hand, may keep pressure on the group, particularly given Carvana’s leverage profile.
The takeaway is straightforward: CarMax beat estimates and still fell because investors prioritized per-unit margin compression and rising CAF reserves over the headline number. Investors can watch for whether today’s selloff in both names holds into the close, and whether further sector data points reinforce or ease the concerns flagged in the CarMax report.
Carvana CVNA shares opened in the “red” this morning in sympathy with peer CarMax (KMX) whose Q1 earnings signaled margin compression, stubbornly weak volumes, and rising acquisition costs.
But a compelling case can be made that the market is lazily painting both companies with the same brush, ignoring the fundamental structural differences between how they operate.
Here’s why the sell-off in Carvana stock today is unwarranted and may actually be an opportunity for long-term investors to load up on a quality name at a discount.
The most obvious flaw in the “sympathy sell-off” logic is that Carvana and CarMax are on entirely different growth curves right now.
KMX saw its comparable-store used units slip 0.8% this quarter – continuing a long-running trend of sluggish retail volume.
The company is stuck in a mature, brick-and-mortar bottleneck.
CVNA, on the other hand, is capturing massive market share: In its latest reported quarter, Carvana posted an explosive 40% year-on-year growth in retail units, selling over 187,000 cars.
CarMax explicitly said today that it had to cut prices and sacrifice margin just to “try” and prop up stagnant volumes, but Carvana is pulling in hyper-growth numbers without having to trim its unit economics.
So, a margin squeeze born out of KMX operational stagnation doesn’t automatically mean Carvana is experiencing the same friction – that’s what makes CVNA shares worth buying on the dip.
Investors panicked also because CarMax’s retail gross profit per unit (GPU) tanked by $230 in the first quarter to $2,177.
However, treating this as a death sentence for CVNA ignores how much more vertically integrated and multi-layered its GPU structure really is.
KMX’s profit model is tightly tethered to the traditional spread between wholesale acquisition and retail sticker price.
When wholesale acquisition cost pops (as they did this quarter, driving CarMax’s average selling price up by $1,168), the company’s margins get crushed.
But CVNA’s total GPU isn’t just about the metal. It generates “highly optimized” revenue streams from proprietary digital financing, gap insurance, extended warranties, and a vertically integrated logistics/reconditioning network.
In Q1, the company delivered an industry-leading 10.4% Adjusted EBITDA margin.
So, Carvana shares are attractive because they’re structurally built to absorb fluctuations in vehicle acquisition costs far better than KMX’s legacy model.
CarMax’s new chief executive, Keith Barr, spent much of the earnings call talking about operational inefficiencies, explicitly mentioning that KMX moves roughly 2 million cars annually via transfers but suffers from “too many unproductive transfers.”
Simply put, the company is weighed down by heavy fixed overhead: physical dealerships, massive localized inventory footprints, and regional logistics inefficiencies.
When foot traffic slows down, those fixed costs bleed them quickly. But Carvana’s “digital-first”, centralized hub-and-spoke model allows for much higher variable cost elasticity.
CVNA stock looks compelling as it routes fulfillment dynamically through digital platforms and centralized reconditioning centers; it doesn’t face the same “unproductive localized overhead” that CarMax is currently scrambling to restructure.
CarMax, Inc. delivered a better than expected Q1, though results were boosted by a surprise credit release. Used car margins remain under pressure due to pricing concessions and consumers trading down to cheaper cars, though KMX has stabilized volumes. Financing results were better than expected though its increase in Tier 2 lending will likely drive incremental credit reserves.
CarMax is rated a sell due to unfavorable risk/reward, high valuation multiples, and gross margin pressures. Q1 FY27 results showed revenue growth driven by higher ASPs and wholesale volume, but gross profit per used car declined $230 YoY to $2,177. SG&A cost control and redesigned extended protection plans offer some margin support, but buybacks have paused and customer credit quality is deteriorating.
CarMax revenues are up, and CEO Keith Barr said he is focused on improving the company’s digital car shopping experience.
The used car dealer reported quarterly earnings Wednesday (June 17) that showed net revenues of $8 billion, a 6.2% increase. To continue this trajectory, Barr said during an earnings call that CarMax’s online presence needs to change.
“Our digital experience is too complex and not seamlessly connected to the in-person experience,” he said. “When a customer arrives at one of our stores, we do not make it as easy for them as it should be, given all the steps they have taken online.”
The process has added friction to the customer experience, which has affected conversion and kept CarMax from using its scale and store network, he said.
“We know exactly what needs to change, and we’re moving forward with urgency,” added Barr, who became CarMax’s CEO in March.
Management said during the earnings call that consumer behavior in the automotive sector has pivoted toward a demand for a hybrid experience, combining digital convenience and physical verification. The company said industry research and its own in-house findings bear this out.
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“Buying a car is one of the biggest financial decisions someone makes, and they have a strong desire to see, touch and test drive a vehicle that will be part of their daily lives for years to come,” Barr said.
To address this, management said CarMax is working to remove friction from the buying journey with upgrades like integrating AI assistants into the digital experience.
“We basically improved the entry point for our customers arriving from online ads,” Barr said. “We’ve made it easier to navigate our website to get toward prequalification and reserving a car. We’ve effectively shifted away from sticker prices to monthly payments.”
The company has also streamlined its web navigation to accelerate prequalification and vehicle reservations, making sure that the work a customer does at home translates instantly when they arrive at one of the company’s stores.
“Our stores reach 85% of the U.S. population, which gives us access to the largest total addressable market,” Barr said. “We expect more customers will visit our stores, and we will sell more cars.”
Barr joined CarMax after serving as CEO of InterContinental Hotels Group (IHG). In announcing his appointment earlier this year, CarMax said Barr modernized IHG’s technology, in part by developing a digital reservation system that improved the booking experience and let guests personalize their stays.
Shares of CarMax fell 9% Wednesday after the company beat Wall Street's quarterly earnings expectations and its new CEO detailed a high-level turnaround strategy for the company.
Here's how the company performed in its first fiscal quarter, compared with average estimates compiled by LSEG:
Earnings per share: $1.31 vs. 95 cents expected Revenue: $8.01 billion vs. $7.42 billion expectedDespite the beats, questions remain about the company's ability to grow and cut costs under the plan as it faces tougher market conditions. The used-vehicle retailer reported margin pressure and declining gross profit per retail used vehicle.
CarMax's total gross profit was $854.4 million, down 4.4% compared with last year's first fiscal quarter. Retail used vehicle gross profit decreased 9.5% and retail gross profit per used unit was $2,177, down $230 from last year's all-time record, the company said. Its net revenue was up 6.2% compared with nearly $7.6 billion a year earlier.
CarMax reported net earnings of $185.6 million, down 11.8% from $210.4 million in the same period last year.
Shares of CarMax are still up roughly 25% this year, including a roughly 16% increase since Keith Barr, a former CEO of InterContinental Hotels Group, began leading the company on March 16.
Barr said he will release more details of his plan — which is expected to take multiple years to execute — in late fall, but he noted that leadership is "super confident about it."
"Our new strategy is focused on great offerings, easy experience, adding value, running lean, all of which, again, will drive sustainable long-term growth, which will create value for our shareholders," he told CNBC during an interview.
CarMax and Carvana shares in 2026.
Barr said he has spent his first three months at CarMax better learning the car business, understanding the company's operations and determining potential growth and cost-cutting areas, while aiming to streamline the car-buying processes for customers.
"There's definitely significant opportunity for growth here by having a really integrated, growth-oriented strategy that leverages technology, that leverages our scale, that leverages our stores, that will provide sustainable growth, too," he said.
His initial quick changes have included making tweaks to CarMax's website, such as showing monthly payments; implementing an artificial intelligence call agent service; and trying to better streamline a customer's experience from online to in-store.
Barr was brought in following massive share declines that led to pressure for former CEO Bill Nash to step down in November.
Shares of CarMax's largest competitor, Carvana, also were more than 7% lower during midday trading Wednesday, which coincided with the online vehicle retailer disclosing plans for its new franchised Stellantis stores. Carvana's plan includes using the franchise stores to service vehicles and offer test drives, but it will still exclusively sell its vehicles online, even if customers are at the stores.
Barr declined to comment on Carvana's plans, but said CarMax has found the vast majority of its used-vehicle customers still like to visit stores and see the vehicle they're planning to purchase before doing so.
Carvana shares are sliding. Why is CVNA stock dropping? CarMax Beats Estimates But Margins SlideGross profit fell 4.4% to $854.4 million. Profit tied to retail units dropped 9.5%. Gross profit per retail used unit declined $230 from the prior year to $2,177. CarMax said the decline reflected pricing decisions aimed at supporting stronger sales momentum.
Margin Pressure Expected To ContinueDespite the earnings beat, CarMax warned that pressure on vehicle margins will likely persist as it prioritizes sales growth over margin preservation. Management reiterated that it expects lower gross profit per retail unit for the fiscal year and will continue adjusting prices to stay competitive.
The margin commentary from CarMax, a major peer in the used‑vehicle retail space, appears to be weighing on sentiment toward Carvana as well.
Critical Levels To Watch For Carvana StockMomentum is best evaluated through RSI. The indicator sits at 52.19, which is a neutral reading and consistent with a stock that is moving sideways rather than establishing a new direction. RSI measures how stretched buying or selling pressure has become. This level suggests the decline has not reached oversold conditions even as price tests lower areas.
Key Resistance: $73.00 This level sits near a round number and aligns with the longer moving average zone, including the 200‑day average at $73.61, which can cause rebounds to stall. Key Support: $61.00 — This is a nearby floor just above recent lows where buyers may attempt to stabilize the current downswing. CVNA Shares Are TumblingCVNA Price Action: Carvana shares were down 7.27% at $64.96 at the time of publication on Wednesday. The stock is trading near its 52-week low of $54.46, according to Benzinga Pro.
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Marley Kayden discusses financials leading the market higher while investors digested the Federal Reserve's decision to keep interest rates unchanged. Meanwhile, CarMax (KMX) slid after earnings and Netflix (NFLX) denied reports of interest in acquiring Lionsgate.
CarMax (KMX +13.13%) stock lost ground in Wednesday's trading even though the company recently reported better-than-expected quarterly results. The company's share price fell roughly 9% in a daily session that saw the S&P 500 fall approximately 1.2%, and the Nasdaq Composite decline roughly 1.3%.
Before the market opened this morning, CarMax published results for the first quarter of its 2027 fiscal year -- a period that ended May 31. The company actually posted sales and earnings for fiscal Q1 that beat the market's expectations, but forward guidance wound up coming in below the market's targets.
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CarMax stock sank despite quarterly beats CarMax recorded earnings per share of $1.31 on revenue of $8.01 billion. The company's per-share profit topped the average analyst estimate by $0.37, and revenue came in roughly $580 million higher than the average target.
CarMax's sales rose roughly 6.1% year over year in fiscal Q1, and combined retail and wholesale unit sales were up 3.3% compared to the prior-year period. On the other hand, earnings per share actually declined 5.1% year over year compared to the profit of $1.38 per share recorded by the business in the prior-year period.
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What's next for CarMax? With its fiscal Q1 report, CarMax stated that it was seeing some pressure on selling, general, and administrative expenses -- but management also said that it expected to reach its target for roughly $200 million in category savings in the fiscal year. The company also said that it was on track for roughly $35 per unit in incremental extended protection plans (EPP) in the fiscal year and that it expected its national EPP redesign rollout to be completed in the current quarter. CarMax's fiscal Q1 results actually looked quite solid, but some investors were apparently looking for stronger forward guidance.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarMax. The Motley Fool has a disclosure policy.
CarMax is rated Buy following a post-earnings dip, with Street estimates appearing overly pessimistic given easier upcoming comps. KMX's new four-pillar strategy targets competitive pricing, digital experience, profitability expansion, and cost efficiency, aiming to stabilize gross profit per unit. I project $3.27 in EPS and $27.8B revenue for FY27, materially above consensus, supporting a $59 price target and 24% upside.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.
U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 500 points during the session after the Federal Reserve announced its policy decision.
The Federal Reserve unanimously held the federal funds rate steady at 3.50%-3.75% on Wednesday, as widely expected, in the first policy meeting under new Fed Chair Kevin Warsh.
The Fed’s closely watched dot plot showed that several officials now expect interest rates to rise in 2026. The Fed penciled in higher inflation, a lower unemployment rate and one hike this year, marking a hawkish shift from the March dot plot, which had signaled one additional rate cut.
On the economic data front, U.S. retail sales rose 0.9% month-over-month in May, following a revised 0.4% gain in April and topping market estimates of 0.5%. U.S. pending home sales jumped 3.8% month-over-month in May, compared to a revised 0.3% gain in the previous month and topping market estimates of 0.8%.
CarMax Inc. (NYSE:KMX) reported better-than-expected earnings for the first quarter on Wednesday.
All sectors on the S&P 500 closed on a negative note, with communication services, consumer discretionary and real estate stocks recording the biggest losses on Wednesday.
The Dow Jones closed lower by around 507 points to 51,492.55 on Wednesday. The S&P 500 fell 1.21% to 7,420.10, while the Nasdaq Composite dipped 1.34% at 26,021.66 during Wednesday's session.
What Is CNN Business Fear & Greed Index?At a current reading of 32.7, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 39.1.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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Key Takeaways CarMax framed Q1 around a four-pillar plan focused on offering, experience, value and lean operations.KMX beat earnings and revenue estimates, while net sales rose 6.2% and total unit sales climbed 3.3%.CarMax is using cost savings, dynamic pricing, finance growth and EPP gains to improve transaction economics. CarMax, Inc. (KMX - Free Report) used its first-quarter fiscal 2027 earnings call to shift the focus from a simple quarterly beat to a broader operating reset. Management argued the business has already begun to show better sales and earnings trends, but also acknowledged clear execution gaps.
The central message was that CarMax is moving faster on pricing, digital simplification, cost control and finance penetration, with a deeper strategic update planned for the fall.
CarMax Reframes Growth Around Four PillarsPresident and CEO Keith Barr said CarMax’s strategy now rests on four pillars: great offering, easy experience, add value on each transaction and run lean. He described the framework as a practical operating agenda rather than a long-range aspiration.
Barr said the company’s main weaknesses are not hard to identify. He pointed to slower core operations, pricing and selection that still need improvement, a digital journey that remains too complex and a store experience that is not yet tightly connected to online steps.
That framing mattered more than the headline beat. The company reported earnings per share of $1.31, which beat the Zacks Consensus Estimate of 94 cents, delivering a surprise of 39.4%. KMX’s quarterly revenues of $8.01 billion also surpassed the Zacks Consensus Estimate of $7.60 billion by 5.4%.
KMX Trades Margin for Sales MomentumCarMax reported net sales and operating revenues up 6.2% to $8 billion, while combined retail and wholesale unit sales rose 3.3% to 392,357. Used retail unit sales were essentially flat, and comparable-store used unit sales fell 0.8%, but management emphasized that this came against a strong prior-year comparison.
Chief financial officer Enrique Mayor-Mora said the company has become more flexible in how it manages pricing, marketing and demand within the quarter. That showed up in a $230 decline in used vehicle gross profit per unit to $2,177, which was better than the larger near-term margin give-up management had outlined previously.
Barr said competitive pricing is already helping sales momentum build and should support market share gains through the year. He also said CarMax is feeding more local and vehicle-specific market inputs into its pricing algorithms, signaling a more dynamic approach to balancing sales and profitability.
CarMax Pushes Costs Lower to Fund PriceManagement tied much of the story to self-funded efficiency. Mayor-Mora said SG&A fell 3.7% to $635.2 million, while SG&A per total unit improved $118 to $1,619, helped by lower compensation and benefits costs even as advertising expense rose.
Barr said the larger aim is to fund better prices through leaner operations instead of relying on lower retail margins. He highlighted reconditioning, logistics and corporate overhead as the biggest areas where CarMax can create that flexibility.
Management reiterated that the company remains on track for $200 million in fiscal 2027 exit-rate savings. During Q&A, Mayor-Mora said first-quarter progress matched internal expectations, though he cautioned that year-over-year SG&A pressure could still show up in the balance of the year.
KMX Builds More Value in FinanceThe add-value pillar centered on CarMax Auto Finance and extended protection plans. CAF penetration rose 150 basis points year over year to 43.3%, while CAF income was $140.2 million, down 1.0%.
Senior vice president Jon Daniels said CarMax’s full-spectrum lending push is gaining traction, with CAF becoming the largest Tier 2 lender in the quarter. He said the company’s funding and underwriting work is giving it more room to expand penetration without changing its disciplined posture.
Management also said the EPP redesign is rolling out nationally and remains on track to add about $35 per unit in incremental margin during fiscal 2027. Together, finance and protection products were presented as recurring levers for improving transaction economics beyond used-vehicle retail margins alone.
CarMax Q&A Centers on Logistics and PricingAnalysts focused heavily on whether first-quarter trends marked a real turn in market share, and management answered with unusual directness. Barr told JPMorgan that CarMax has turned the corner and should continue to gain share on a sustainable basis.
Questions from Baird, BNP Paribas and Needham also pressed on logistics and reconditioning. Barr said CarMax transfers more than two million cars a year and needs to reduce unproductive moves, better align cars with location-specific demand and redesign the network for both lower costs and faster sales conversion.
On reconditioning, Barr and Mayor-Mora said the biggest upside lies in digitizing processes, improving labor and parts selection tools and moving inventory faster from acquisition to saleable condition. That answer added specificity to the run-lean pillar and showed where management sees a durable cost advantage.
KMX Sets Up a More Detailed Fall UpdateThe call’s overall tone was more operational than celebratory. Barr repeatedly said CarMax has strong assets, including its store network, brand and digital capabilities, but has not been executing at a level that fully captures them.
That left the quarter looking less like a finished turnaround and more like the opening phase of a broader reset. The planned fall strategic update now stands as the next key milestone for investors watching whether early gains in pricing, conversion and cost discipline can become more durable.
CarMax’s Zacks SignalsKMX currently carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of C, Momentum Score of A and VGM Score of A. Based on the Zacks framework, a Zacks Rank #3 can be held, and stronger Style Scores carry more weight when they are paired with top Zacks Rank stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock’s A grades for Momentum and VGM, plus its B for Value, indicate favorable style characteristics, while the C Growth Score reads as more balanced. Even so, the Zacks framework puts primary emphasis on earnings estimate revisions, which means the current Zacks Rank can change after analysts update forecasts following the just-reported results.
CarMax (NYSE:KMX) reported better-than-expected earnings for the first quarter on Wednesday.
The company posted quarterly earnings of $1.31 per share which beat the analyst consensus estimate of 94 cents per share. The company reported quarterly sales of $8.014 billion which beat the analyst consensus estimate of $7.410 billion.
The company introduced a new growth strategy centered on four pillars: improving offerings, enhancing customer experience, maximizing transaction value, and running lean operations. CarMax said the company remains on track to deliver $200 million in SG&A savings this fiscal year.
“I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth. Three months in, I am more convinced than ever that this is a business with everything it needs to thrive,” said Keith Barr, President and Chief Executive Officer.
CarMax shares rose 0.2% to $47.50 in pre-market trading.
These analysts made changes to their price targets on CarMax following earnings announcement.
B of A Securities analyst John Murphy maintained the stock with an Underperform rating and raised the price target from $40 to $45. Mizuho analyst David Bellinger maintained the stock with a Neutral and raised the price target from $38 to $43. Considering buying KMX stock? Here’s what analysts think:
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Key Takeaways KMX beat Q1 earnings and revenue estimates as total revenues rose 6.2% year over year.CarMax cut SG&A 3.7% and remains on track for $200M in exit-rate savings by fiscal 2027.KMX outlined a four-pillar strategy to drive unit growth, earnings growth and shareholder returns. CarMax, Inc. (KMX - Free Report) reported earnings per share of $1.31 for the first quarter of fiscal 2027, beating the Zacks Consensus Estimate of 94 cents by 39.61%. The bottom line declined 5.1% from $1.38 in the year-ago quarter.
Quarterly revenues rose 6.2% year over year to $8.01 billion, surpassing the consensus mark of $7.6 billion by 5.43%. Results benefited from higher retail and wholesale revenues, while combined retail and wholesale unit sales rose 3.3% to 392,357.
KMX Sales Rise on Higher Vehicle PricingFor the quarter ended May 31, 2026, CarMax’s total net sales and operating revenues were $8.01 billion, up from $7.55 billion a year ago. Used vehicle sales increased 4.7% to $6.39 billion, reflecting a higher average retail selling price.
Total retail used vehicle unit sales were nearly flat at 230,293 versus 230,210 in the prior-year quarter. Comparable-store used-unit sales declined 0.8%, as the company lapped a year-ago quarter that benefited from tariff-driven demand.
CarMax Wholesale Momentum Supports the Top LineWholesale vehicle sales rose 14% year over year to $1.43 billion. Wholesale unit sales increased 8.4% to 162,064, while the average wholesale selling price climbed 5.1% to $8,364.
The wholesale business helped offset pressure on retail profitability. Wholesale vehicle gross profit increased 8.3% to $169.5 million, with gross profit per wholesale unit of $1,046, essentially in line with $1,047 in the prior-year quarter.
KMX Margins Face Pricing PressureTotal gross profit declined 4.4% year over year to $854.4 million. Retail used vehicle gross profit fell 9.5% to $501.4 million, hurt by lower per-unit profitability.
Retail gross profit per used unit was $2,177, down $230 from last year’s all-time record due to the continuation of pricing actions aimed at driving an improved sales trend.
CarMax Cost Cuts Drive SG&A LeverageSelling, general and administrative expenses decreased 3.7% year over year to $635.2 million. The decline was primarily driven by lower compensation and benefits costs as the company made progress on targeted SG&A reductions.
SG&A per total unit improved 6.8% to $1,619, down $118 from the year-ago quarter. CarMax remains on track to achieve $200 million in SG&A exit-rate savings by the end of fiscal 2027.
KMX Finance Arm Expands PenetrationCarMax Auto Finance’s income was $140.2 million, down 1% from the year-ago quarter. The decline reflected lower auto loans outstanding following last year’s $900 million non-prime securitization, partly offset by interest earned on higher-margin receivables and servicing income.
CAF financed 43.3% of units sold after the impact of three-day payoffs, up 150 basis points year over year. The total interest margin percentage improved 20 basis points to 6.7%, while the weighted average contract rate was 11.3%, broadly in line with the prior-year quarter.
CarMax Strategy Focuses on Growth PillarsCEO Keith Barr introduced a four-pillar strategic framework focused on improving CarMax’s offering, simplifying the customer experience, adding value on each transaction and running lean. The company plans to share more details at a strategic update in late fall.
Pricing competitiveness, saleable inventory, digital-to-store conversion, CAF growth, EPP margin expansion, reconditioning efficiency and logistics improvements are key areas of focus for the company. The goal is to drive unit growth and earnings growth while supporting shareholder returns over time.
KMX’s Balance Sheet Remains in FocusCarMax ended the quarter with cash and cash equivalents of $132.2 million and inventory of $4.06 billion. Long-term debt excluding the current portion was $2.06 billion, while the current portion of long-term debt was $17.2 million.
The company did not repurchase shares during the first quarter. It had $1.31 billion remaining under its share repurchase authorization as of May 31, 2026, and intends to resume buybacks at an appropriate time depending on market conditions, leverage and capital needs. KMX carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer ReleasesCarvana Co. (CVNA - Free Report) reported first-quarter 2026 (ended March 31, 2026) earnings of $1.69 per share, which beat the Zacks Consensus Estimate of $1.42 by 18.69% and increased from $1.51 in the year-ago quarter. Better-than-expected revenues across all segments drove the strong performance. Revenues of $6.43 billion beat the Zacks Consensus Estimate of $6.16 billion by 4.39% and increased 52% from last year.
AutoNation, Inc. (AN - Free Report) reported first-quarter 2026 (ended March 31, 2026) adjusted earnings of $4.69 per share, which missed the Zacks Consensus Estimate of $4.71 by 0.43%. Revenues totaled $6.55 billion, missing the Zacks Consensus Estimate of $6.66 billion by 1.6%. The top line declined from $6.69 billion reported in the first quarter of 2025. The results showed a familiar pattern: strong performance in higher-margin businesses was offset by weaker sales volumes and higher costs. Adjusted free cash flow was $255.6 million, with a solid 155% conversion of adjusted net income.
CarMax NYSE: KMX entered a market reversal earlier this year asc it transitioned to a new CEO and activist investors took positions. The story now is that Keith Barr’s four-pillar strategy to increase volume, improve digital sales, add value on each transaction, and drive efficiency is gaining traction.
The question is whether CarMax can preserve its cost savings and return to profitable growth in the coming quarters, and the early signs are encouraging. In this environment, CarMax remains in the middle of an evolving catalyst, with the stronger signal—sustained operational improvement—still to come.
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CarMax Outperforms in Q1, First Report With New CeoCarMax Today
$53.54 -0.12 (-0.23%)
As of 06/18/2026 03:59 PM Eastern
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52-Week Range$30.26▼
$71.99P/E Ratio34.99
Price Target$46.13
CarMax faced headwinds in Q1 fiscal year 2027 (FY2027), including uneven consumer demand and affordability pressure, but performed well, with unit volume increasing by 3.3% across the system.
Revenue grew by 6% to just over $8 billion, outperforming expectations by more than 780 basis points. Segmentally, wholesalers did the heavy lifting, with units up 8% compared to a basically flat retail side.
Lower relative pricing aided the strength and is reflected in the margin. The company managed to reduce selling, general, and administrative (SG&A) expenses and improve efficiency on a per-unit basis, but gross margin impairment offset these gains. The takeaway is that gross profit declined by nearly 5%, net margin contracted by approximately 50 basis points despite an improvement in SG&A, and GAAP earnings declined.
The offset is that earnings per share (EPS) of $1.31 outpaced consensus by a wide 34-cent margin, providing sufficient cash flow to sustain operations and maintain balance sheet quality. CarMax's balance sheet carries debt, but it did not provide any red flags for investors.
The company does not provide specific guidance on operational metrics, but it did offer color on what to expect this year. As it stands, the focus is on improving sales and customer satisfaction, which will put pressure on margins. That trade-off is important for investors to watch. Lower asking prices can help rebuild unit volume, while continued investment in digital services may weigh on profitability until those efficiencies scale.
Among the critical Q1 takeaways, however, are the 84% of retail unit sales supported by digital capabilities and 14% online retail sales, with digital channels central to reducing time-to-close, improving customer outcomes, and supporting longer-term operating efficiency.
Current Price$53.54High Forecast$66.00Average Forecast$46.13Low Forecast$35.00CarMax Stock Forecast Details
Analyst sentiment is central to CarMax’s 2025 stock price decline and 2026 rebound.
After price target cuts and weaker coverage weighed on KMX in 2025, the tone in 2026 has shifted toward cautious optimism as investors evaluate the CEO transition and early signs of operational improvement.
Analyst activity since February 2026 has included initiations, reaffirmed targets, and, more recently, price target increases that have helped stabilize the consensus estimate.
The consensus price target is around $42, below the current share price but aligning with the technical price floor put in place last year, and is likely to advance amid operational improvements and strengthen the expected catalyst.
Institutional trends look more bullish despite mixed activity over the trailing 12-month period. Selling outweighed buying in parts of 2025, but activity in the first half of 2026 suggests renewed accumulation. More importantly, the periods of accumulation and distribution align with CarMax’s price action, revealing group buying on dips and market support at the lower end of its trading range.
The likely outcome is that KMX's downside is limited, and institutional support will strengthen and advance in subsequent quarters.
CarMax Catalysts: There Is More Than One Coming Down the PipeCarMax has several catalysts coming down the pike, centered on its upcoming earnings reports. The reports are expected to show improvements, including cash flow and future profitability. Among the catalysts is the capacity for capital return, which centers on share buybacks.
CarMax paused share repurchases in the latest quarter, but prior buybacks have still reduced the company’s share count over the past year. A resumption of repurchases could become a bullish catalyst if earnings stabilize. Management is also expected to provide more details on its turnaround strategy later this year.
Chart price action is not bullish following the release. The market for KMX stock is down more than 5% and may continue to decline in the near term. The caveat is that this market appears in the midst of a Double-Bottom Reversal, and the mid-June pullback is testing critical support.
Assuming support holds, KMX shares could advance this summer, potentially reaching $70 by early Fall. If not, a move to retest recent lows near $37.50 is probable—lower lows are not expected to come this year.
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In one of the more significant gear shifts on the stock market Thursday, CarMax (KMX +13.13%) roared to a 13% gain after sputtering to a 9% loss the previous trading session. The auto retailer's equity benefited from several positive post-earnings analyst notes; among these was a recommendation upgrade.
Foot on the gas CarMax published its first quarter of fiscal 2027 results on Wednesday morning, and investors reacted negatively, despite convincing top- and bottom-line beats.
Image source: Getty Images.
But Thursday saw analysts weigh in with adjusted takes on the stock, and most of these changes were bullish.
For example, big bank JPMorgan Chase's J.P. Morgan bumped its price target $1 higher to $38, although it maintained its underweight (i.e., sell) recommendation. Baird was more hopeful, raising its price target to $55 per share from $48; it kept its outperform (buy) rating intact.
Of the numerous analyst adjustments, the most impactful was the one made by Stephens pundit Jeff Lick. He upped his outlook on CarMax to overweight (buy) from his preceding equal weight (hold). In doing so, he lifted his price target significantly, to $66 per share from $43.
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Top dog According to reports, Lick wrote that CarMax has the ability to remain the No. 1 used-car retailer in this country. Even if its position weakens to some extent, in his view, it's still a go-to for many customers looking to buy in that segment.
To me, CarMax's quarterly performance was impressive, with top-line growth of 6% year over year in a fairly challenging environment for auto sales. Assuming it can maintain, or at least approach, such growth numbers, its stock should generally do well.
JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarMax and JPMorgan Chase. The Motley Fool has a disclosure policy.
CarMax (KMX) is in a transition phase, executing a four-pillar strategy to enhance customer experience and operational efficiency. KMX reported strong Q1 results, beating EPS and revenue expectations, with management crediting early execution of its strategic plan. Technical analysis signals a bullish trend: KMX trades above its 30-week EMA, with both short- and long-term momentum turning positive.
MARLBOROUGH, Mass.--(BUSINESS WIRE)--Hologic, Inc., a global leader in women's health, today released its 2025 Sustainability Report. The new report coincides with Hologic's 40th anniversary and underscores how the company's longstanding purpose — to enable healthier lives for women everywhere, every day — continues to drive progress for patients, communities and the planet. “We have always firmly believed that our success as a company is fundamentally tied to our ability and commitment to help.
INDIO, Calif.--(BUSINESS WIRE)--Del Webb recently celebrated a major milestone at Del Webb Desert Retreat with the official groundbreaking of the community’s future resort-style clubhouse, the social centerpiece of the new active-adult neighborhood.
Community leaders, project partners, and team members gathered to commemorate the occasion, including Norman Brown, PulteGroup’s Southern California Division President, and Elaine Holmes, Mayor of the City of Indio, who joined in the ceremonial shovel turn marking the next phase of development for the highly anticipated 55+ community.
Once complete, the clubhouse will offer residents a wide range of resort-style amenities designed to support active and social living, including a fitness center and aerobics studio, an indoor golf simulator, a ballroom, arts and billiards rooms, a food and beverage bar, and a resort-style pool and Jacuzzi.
“The clubhouse will be so much more than just an amenity center. It represents the heart of the community and the lifestyle our residents are looking for,” said Brown. "It's where neighbors will gather, friendships will form, and residents can enjoy the activities, experiences, and connections that make Del Webb communities so special."
Del Webb Desert Retreat marks Del Webb’s return to Indio and the Greater Palm Springs region, where the builder has delivered more than 10,000 homes throughout the Coachella Valley over its long history in the market.
Construction of the clubhouse is being supported by RCS Construction Management and Capital Building Services.
The gated community will feature homes ranging from approximately 1,444 to 2,722 square feet with flexible floor plans offering 2–3 bedrooms and 2–2.5 bathrooms. Pricing starts in the mid-$400,000s.
The clubhouse is expected to be completed in the summer of 2027.
About Del Webb
Del Webb is a national brand of PulteGroup, Inc. (NYSE: PHM). Del Webb is the pioneer in active adult communities and America’s leading builder of new consumer-inspired homes and communities for active adults ages 55+ who want to continue to explore, grow, and learn, socially, physically, and intellectually as they look forward to retirement. For more information on Del Webb, visit delwebb.com.
PulteGroup (PHM) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Key Takeaways ITT agreed to acquire Aerospace Contacts, a maker of aerospace and defense metal contact components.ITT expects the deal to strengthen its supply chain and manufacturing capabilities.ITT plans to integrate Aerospace Contacts into its CIT segment after closing in Q3 2026. ITT Inc. (ITT - Free Report) has inked a deal to acquire Aerospace Contacts LLC (Aerospace Contacts). The transaction was valued at approximately $31 million in total.
Based in Gilbert, AZ, Aerospace Contacts is engaged in producing metal contact components for aerospace and defense applications. The company was established in 1999 and it employs about 140 personnel. It has been a long-term supplier to ITT Cannon within the Connect & Control Technologies (CCT) segment.
Acquisition Rationale of ITTThe latest acquisition aligns with ITT’s strategy of acquiring businesses to expand its market share and customer base. The acquisition of Aerospace Contacts is expected to strengthen the company’s supply chain, enhance its aerospace and defense product offerings and boost its manufacturing and engineering capabilities. The transaction is also anticipated to support long-term growth by broadening ITT’s portfolio of interconnect solutions.
ITT will integrate Aerospace Contacts into its CIT segment. The deal is expected to close in the third quarter of 2026, subject to customary closing conditions.
Other Notable AcquisitionsAcquisitions are an essential aspect of ITT’s growth strategy. ITT acquired SPX FLOW in March 2026. The acquisition enhances the company’s capabilities in mixing, fluid handling and thermal solutions. SPX FLOW has been added to the Flow Technologies segment.
In September 2024, ITT acquired kSARIA Parent, Inc. The acquisition will enhance its portfolio of connectivity solutions for the defense and aerospace end markets, technological capabilities and market reach, driving growth and operational efficiency.
Zacks Rank and Price PerformanceITT currently carries a Zacks Rank #2 (Buy).
The company is benefiting from solid momentum in the Flow Technologies segment, which is gaining from an increase in demand for parts, pumps, services and valves. ITT’s innovation investments are also likely to support its growth.
In the past year, the stock rose 28.8% against the industry’s 0.9% decline.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked companies are discussed below:
GPGI, Inc. (GPGI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GPGI delivered a trailing four-quarter average earnings surprise of 25.6%. In the past 30 days, the Zacks Consensus Estimate for the company’s 2026 earnings has remained steady.
Griffon Corporation (GFF - Free Report) currently carries a Zacks Rank of 2. GFF delivered a trailing four-quarter average earnings surprise of 3.3%.
In the past 30 days, the Zacks Consensus Estimate for Griffon’s fiscal 2026 earnings has remained steady.
IDEX Corporation (IEX - Free Report) currently carries a Zacks Rank of 2. IEX delivered a trailing four-quarter average earnings surprise of 6%.
In the past 30 days, the Zacks Consensus Estimate for IDEX’s 2026 earnings has increased 0.2%.
ITT (ITT) 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.
QuantumScape (QS +16.52%), a developer of solid-state batteries for electric vehicles (EVs), went public through a merger with a special purpose acquisition company (SPAC) in Nov. 2020. Its stock opened at $24.80 and soared to a record high of $131.67 a month later.
But as of this writing, QuantumScape's stock trades at about $7. It originally planned to commercialize its first batteries in 2024, but it hasn't yet reached that milestone. That sluggish progress drove away its investors, but could it still be a potential millionaire-maker?
Image source: Getty Images.
When will QuantumScape start generating revenue? QuantumScape's solid-state batteries offer better thermal stability, shorter charging times, and higher charging capacities than lithium-ion batteries. Its QSE-5 battery, co-developed with Volkswagen (OTC:VWAP.Y) over the past decade, has an energy density of 844 Wh/L (watt hours per liter) and can be rapidly charged from 10% to 80% in under 15 minutes.
QuantumScape initially aimed to manufacture the batteries through a joint venture with Volkswagen, but it shifted toward a simpler licensing model in 2024. It now plans to license its technology to Volkswagen's battery subsidiary, PowerCo, as well as other automakers, to generate a recurring stream of higher-margin royalty and licensing revenues.
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QuantumScape upgraded its separator process over the past year to improve its cell reliability, equipment productivity, and total yields. It's been producing higher-volume, near-production "B-sample" cells at its Eagle Line pilot production line, and it expects its cash runway to last through 2029, giving it enough time to expand its commercial licensing business.
Could QuantumScape generate millionaire-making gains? If QuantumScape sticks to that plan, analysts expect its revenue to rise from zero in 2026 to $51.2 million in 2027 and $98.6 million in 2028. With a market cap of $4.3 billion, its stock might seem overvalued at 43 times its 2028 sales.
However, the solid-state battery market could grow at a 47.57% CAGR from 2026 to 2034, according to Fortune Business Insights. If QuantumScape maintains its first-mover advantage in that booming market, its sales could skyrocket over the next decade.
If QuantumScape matches analysts' estimates through 2028 and grows its top line at a 30% CAGR through 2036, its revenue would hit $804 million by the final year. If it trades at 30 times its current year's sales by 2036, its market cap would rise to $24.1 billion.
That would be a near-sixfold gain over the next decade, but it probably wouldn't turn a $10,000 investment -- or even a $100,000 one -- into over $1 million. That said, it could still beat the market if it successfully commercializes its first battery designs and gains more customers.
Quantumscape Corp (NYSE:QS) shares surged about 15% on Thursday after the solid-state battery developer announced a joint research agreement with Honda Motor (NYSE:HMC) subsidiary Honda R&D Co Ltd to advance its battery technology platform.
The multi-year collaboration will focus on solid-state battery development and related manufacturing processes, combining the expertise of both companies.
The agreement follows Honda's completion of a technology evaluation program with QuantumScape that included an in-depth assessment of the company's solid-state battery platform and benchmarking against competing technologies through a series of standard technical tests.
"QS technology demonstrated compelling and unique advantages during our evaluation," Atsushi Ogawa, chief operating officer of Honda R&D's Research Center of Excellence, said in a statement.
He added that the company sees potential for the technology across multiple applications, including automotive uses.
QuantumScape CEO Siva Sivaram said Honda's assessment represented "one of the most rigorous evaluations of our technology to date."
“This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage,” Sivaram said.
The company develops solid-state lithium-metal batteries, which are viewed as a potential alternative to conventional lithium-ion batteries due to their potential for higher energy density and improved safety characteristics.
June 18, 2026 09:00 ET | Source: Quantumscape Corporation
SAN JOSE, Calif., June 18, 2026 (GLOBE NEWSWIRE) -- QuantumScape Corporation (NASDAQ: QS), a global leader in next-generation solid-state lithium-metal battery technology, today announced a joint research agreement with Honda R&D Co., Ltd., a subsidiary of Honda Motor Co., Ltd., one of the world’s leading manufacturers of automobiles, motorcycles and power equipment, aimed at advancing the QS battery platform through the combined contributions and expertise of both parties. The joint program includes a multi-year plan focused on solid-state battery development and associated manufacturing processes.
The agreement follows Honda’s successful completion of a technology evaluation agreement with QS, which included an in-depth, hands-on technical study of QS’s solid-state technology platform as well as competitive benchmarking across a range of standard technical tests.
“QS technology demonstrated compelling and unique advantages during our evaluation,” said Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co., Ltd. “We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.”
“Honda is a leading global automaker renowned for its engineering excellence and product quality across automotive and other applications worldwide, and its evaluation represents one of the most rigorous assessments of our technology to date,” said Dr. Siva Sivaram, CEO and President of QS. “This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage.”
About QuantumScape Corporation
QuantumScape is on a mission to revolutionize energy storage to enable a sustainable future. The company’s next-generation solid-state lithium-metal battery technology is designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future. For more information, visit www.quantumscape.com.
Forward-Looking Statements
Certain information in this press release may be considered “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s expectations for its joint research agreement and joint development program with Honda R&D Co., Ltd., the anticipated benefits and contributions of the parties under that agreement, the commercialization and scaling of its solid-state lithium-metal battery technology, the application of its technology to automotive and other markets. These forward-looking statements are based on management’s current expectations, assumptions, hopes, beliefs, intentions and strategies regarding future events and are based on currently available information as to the outcome and timing of future events. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements due to various risks, including the successful development and commercialization of our solid-state battery technology, achieving technical and financial milestones, building out of high-volume processes and otherwise scaling production, achieving the performance, quality, consistency, reliability, safety, cost and throughput required for commercial production and sale, changes in economic and financial conditions, market demand for EVs and other energy storage applications, retaining key personnel, competition, regulatory changes, broader economic conditions, and other factors, including those discussed in the section titled “Risk Factors” in our Annual Report and Quarterly Reports and other documents filed with the Securities and Exchange Commission from time to time. Except as otherwise required by applicable law, the company disclaims any duty to update any forward-looking statements.
The joint research agreement includes a multi-year plan focused on solid-state battery development and associated manufacturing processes. The deal follows Honda’s successful completion of a technology evaluation agreement with QuantumScape, which included an in-depth, hands-on technical study of the company’s solid-state technology platform as well as competitive benchmarking across a range of standard technical tests.
“QS technology demonstrated compelling and unique advantages during our evaluation,” said Atsushi Ogawa, COO of Honda R&D’s Research Center of Excellence. “We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.”
QuantumScope Shares SurgeQS Price Action: At the time of publication, QuantumScope shares are trading 6.81% higher at $7.37, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Solid-state battery maker QuantumScape (QS +16.52%) has been moving closer to commercializing its technology, and it received a major boost of confidence from a global automaker today.
News that the research and development (R&D) arm of Honda Motor (HMC +0.27%) is working with QuantumScape to advance its battery platform for electric vehicles (EVs) and other applications sent QuantumScape stock soaring today. As of 11:21, shares were up 12.9% after paring some of an earlier 16% gain.
Image source: The Motley Fool.
Massive market opportunity QuantumScape's technology could revolutionize EV batteries. It's not the only company working on solid-state batteries, though, so a partnership with Honda is meaningful for investors hoping to choose a winner in the race to commercialization. That has people buying the stock today.
Honda R&D COO praised QuantumScape, stating, "We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership."
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That's quite a vote of confidence from a major auto company, and gives investors insight into just how big the market could be for QuantumScape and others developing solid-state batteries. Electric cars, motorcycles, power tools, and generators are all Honda products that could utilize the batteries.
Investors see the potential and are betting on QuantumScape stock today. Those who do should know that it's still speculative, so allocate accordingly, as the risk remains high.
Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Quantumscape Corp (NYSE:QS) shares surged about 15% on Thursday after the solid-state battery developer announced a joint research agreement with Honda Motor (NYSE:HMC) subsidiary Honda R&D Co Ltd to advance its battery technology platform.
The multi-year collaboration will focus on solid-state battery development and related manufacturing processes, combining the expertise of both companies.
The agreement follows Honda's completion of a technology evaluation program with QuantumScape that included an in-depth assessment of the company's solid-state battery platform and benchmarking against competing technologies through a series of standard technical tests.
"QS technology demonstrated compelling and unique advantages during our evaluation," Atsushi Ogawa, chief operating officer of Honda R&D's Research Center of Excellence, said in a statement.
He added that the company sees potential for the technology across multiple applications, including automotive uses.
QuantumScape CEO Siva Sivaram said Honda's assessment represented "one of the most rigorous evaluations of our technology to date."
“This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage,” Sivaram said.
The company develops solid-state lithium-metal batteries, which are viewed as a potential alternative to conventional lithium-ion batteries due to their potential for higher energy density and improved safety characteristics.
QuantumScape QS shares are ripping higher on June 18th as investors react to a major new OEM partnership.
The solid-state battery pioneer announced a multi-year joint research agreement with Honda R&D to co-develop next-gen lithium-metal battery platform architectures and manufacturing processes.
And while QuantumScape stock is already up some 15% following the announcement, a solid case can be made that longer-term implications of this agreement are far more bullish than the market realizes.
The Honda partnership is particularly bullish for QS shares because it isn’t just an “exploratory” memorandum of understanding (MoU).
In fact, the joint research deal actually follows the successful completion of a formal technology evaluation agreement; the Japanese conglomerate conducted hands-on technical studies and competitive benchmarking.
For an OEM like Honda to explicitly say the technology demonstrated “compelling and unique advantages” means QuantumScape’s solid-state lithium-metal platform passed a highly restrictive gauntlet.
Honda’s validation shifts QS from the realm of “speculative” lab tech into a commercially vetted asset.
Passing a legacy titan’s strict benchmarking proves that the firm’s proprietary ceramic separator can handle real-world stress, effectively de-risking the tech in the eyes of the broader automotive industry.
Until recently, the major bear case against QuantumScape shares was its heavy reliance on the Volkswagen (via PowerCo).
By bringing Honda officially into a multi-year development and manufacturing process plan, QS proves it can capture multiple global OEMs; it transforms the company from a VW-captive project into a true independent industry standard-bearer.
A subtle but vital note in the press release came from Atsushi Ogawa (COO of Honda R&D), who said there’s potential “across a range of applications, including automotive.”
Honda is a powerhouse in motorcycles, aviation (HondaJet), and power equipment, and solid-state benefits – higher energy density, lower weight, and rapid charging – are arguably more valuable in aviation and small-scale mobility than standard passenger vehicles.
This dramatically widens QuantumScape’s total addressable market and positions the company as a cross‑sector electrification supplier rather than a single‑OEM battery bet.
Ultimately, the Honda agreement represents a fundamental pivot point for QS stock, lifting it out of its single-customer silo and validating its tech on a global stage.
The market is currently treating this as a fleeting, headline-driven momentum, but the structural implications run far deeper.
By proving its proprietary tech can meet the stringent demands of multiple top-tier OEMs – and unlocking massive potential addressable markets in aviation and micro-mobility – QuantumScape is effectively rewriting its long-term bull case.
For investors looking past the immediate double-digit rally, this partnership sets a resilient new floor for the company’s valuation as next-gen electrification edges closer to commercial reality.
QuantumScape (NYSE:QS | QS Price Prediction) stock is surging in Thursday’s midday session, up 11% to $7.67 after the company unveiled a joint research agreement with Honda Motor (NYSE:HMC) to advance solid-state battery technology. The pop builds on an earlier session gain of 8% that accelerated as the news circulated.
Sympathy buying is lifting peer Solid Power (NASDAQ:SLDP) stock, which is trading higher by 4% to around $2.80. Solid Power has no company-specific catalyst today, but renewed enthusiasm for solid-state battery developers is spilling across the group.
The reaction is sharp because it lands inside an otherwise bruising year for QuantumScape shares. QuantumScape stock is down more than 24% year to date in 2026, yet still up more than 81% over the past 12 months, underscoring just how volatile this name has been.
Honda Pact Validates QuantumScape’s Tech Under the agreement, QuantumScape and Honda will work together under a multi-year plan to develop a solid-state battery and determine the production process, with automotive use cases the obvious target. Importantly, the deal was inked only after Honda completed due diligence on QuantumScape’s QSE-5/QS battery platform, including a hands-on technical study, benchmarking, and stress testing.
That sequencing matters. Honda R&D COO Atsushi Ogawa stated QuantumScape’s technology “demonstrated compelling and unique advantages” during evaluation, and QuantumScape CEO Siva Sivaram called Honda’s review one of the most rigorous assessments of its technology to date. For a pre-revenue developer, validation from a top global automaker is a meaningful trust signal.
The pact also expands QuantumScape’s OEM roster beyond lead partner Volkswagen Group‘s (OTC:VWAGY) PowerCo, where the company has expanded licensing and up to 85 GWh annual production rights.
Solid Power Catches a Sympathy Bid Solid Power shares are riding the sector tailwind rather than a fresh announcement. The sulfide-electrolyte specialist has its own roster of partners, including BMW, but today’s bid is purely a read-through from the QuantumScape-Honda headline.
The context cuts both ways for Solid Power. The stock is down 34% year to date in 2026, yet still up 42% over the past year. Like QuantumScape, Solid Power remains a low-priced, highly volatile, pre-commercial story where milestones (not earnings) drive the tape.
What Investors Can Watch Next The bull case is straightforward: a marquee Japanese automaker performed rigorous testing and committed to a multi-year program, which lifts the credibility of the entire solid-state thesis. That’s why Solid Power stock is rallying alongside QuantumScape stock without any news of its own.
The skeptical view deserves equal airtime: both QuantumScape and Solid Power are pre-revenue, cash-burning developers with uncertain commercialization timelines. Insider activity at QuantumScape has also leaned toward disposals in recent weeks, with CTO Timothy Holme and CEO Sivaram among executives reducing positions in May and early June. That’s not a vote of conviction ahead of today’s news.
Near-term, investors can watch for whether QuantumScape stock holds its midday gains into the close, and whether Honda commentary draws follow-on interest from additional OEMs. The next operational checkpoints are QuantumScape’s Eagle Line production scaling and Solid Power’s continuous electrolyte pilot line, which the company is targeting for commissioning by year-end. Position sizing matters here, and investors may want to calibrate their exposure accordingly as these remain speculative names.
QuantumScape (QS +16.52%), a solid-state battery developer for EVs, closed at $8.04, up 16.52%. Shares rose after the announcement of a new joint research agreement with Honda (HMC +0.27%) focused on development and manufacturing processes. Investors are also watching for the late-July earnings window and the company’s commercialization strategy.
Trading volume reached 79.0M shares, coming in about 271% above its three-month average of 21.3M shares. QuantumScape IPO'd in 2020 and has fallen 19% since going public.
How the markets moved todayThe S&P 500 (^GSPC +1.08%) closed at 7,501, up 1.08%, while the Nasdaq Composite (^IXIC +1.91%) closed at 26,518, up 1.91%. Among advanced battery technology peers, Solid Power (SLDP +6.30%) closed at $2.87, up 6.30%, while lithium producer Albemarle (ALB 3.73%) closed at $160.35, down 3.73%.
What this means for investorsQuantumScape will be teaming up with Honda on a new joint research program for its solid-state battery technology. As QuantumScape advances toward validation of the technology and manufacturing capability at scale, investors are gaining optimism about the total addressable market.
Honda isn’t just an automaker; as a partner, it could be a solid-state battery customer for its power equipment as well as for electric cars and motorcycles.
QuantumScape also has a partnership with Volkswagen (VWAGY 0.90%). Earlier this year, QuantumScape debuted a Ducati motorcycle featuring its battery technology. Ducati is part of Volkswagen’s Audi division.
Investors were scooping up QuantumScape shares today, seeing more opportunity beyond EVs once it fully commercializes its solid-state batteries.
Howard Smith has positions in QuantumScape. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
HONG KONG SAR - Media OutReach Newswire – 19 June 2026 – Hong Kong universities continue to excel on the international stage with five institutions ranked among the world's top 100 and, for the first time, two in the top 20 of the 2027 World University Rankings published by Quacquarelli Symonds (QS) on June 18. A spokesman for Hong Kong's Education Bureau (EDB) said that with the Hong Kong Special Administrative Region (HKSAR) Government's full commitment to developing Hong Kong into an education hub, coupled with the support of a series of policy measures, the city's higher education system has again excelled. Announcing the results, QS said in a press release that Hong Kong "emerges as Asia's most improved higher education system for the second consecutive year, and the second most improved globally among systems with three or more ranked universities". Hong Kong is home to five universities consistently ranked in the global top 100 The University of Hong Kong (HKU) maintained its position at 11th in the world; The Chinese University of Hong Kong (CUHK) rose 14 places to 18th; The Hong Kong University of Science and Technology rose 11 places to 33rd; and The Hong Kong Polytechnic University climbed four places to 50th, entering the world's top 50 for the first time. Also among the top 100 is City University of Hong Kong, which improved 11 places to 52nd. In the latest Best Global Universities Rankings published by the U.S. News & World Report just days ago, multiple Hong Kong universities also demonstrated exceptional international competitiveness, with 20 subjects placing in the global top 10. Notably, CUHK, HKU, and The Education University of Hong Kong swept the global top three spots for the Best Global Universities for "Education and Educational Research", underscoring the city's prowess in cultivating talents and conducting academic research. "These achievements fully affirm the effectiveness of the HKSAR Government's steadfast investment in education and its full support through the University Grants Committee (UGC) for institutions to continuously innovate, optimise, expand capacity, and enhance quality. The significant year-on-year rise in the overall rankings of our institutions further validates Hong Kong's strong appeal as a premier hub for international high-end talent," the EDB spokesman said. "The stellar performance of UGC-funded universities in the international rankings is by no means accidental. On one hand, it relies on the tireless efforts of all institutions to actively recruit world-class scholars and invest in infrastructure. On the other hand, the HKSAR Government's stable resource investment, clear and supportive policy guidance, as well as the rigorous quality assurance implemented through the University Accountability Agreements, are also of paramount importance." The University of Hong Kong secured the 11th spot in the latest QS World University Rankings The Government will continue to promote the internationalisation and diversification of post-secondary education, which aims to not only enhance Hong Kong's development momentum but also make proactive contributions to the nation's development, the spokesman said. The strength demonstrated by Hong Kong's higher education system aligns perfectly with the strategic goals set out in the National 15th Five-Year Plan to build a leading nation in education, technology, and talent. To support the post-secondary education sector to grow bigger and stronger, the Government has raised the admission ceiling for non-local students in taught programmes at funded post-secondary institutions to 50 per cent, and increased the over-enrolment ceiling for self-financing places in funded research postgraduate programmes to 120 per cent, among other measures. Meanwhile, the Government is promoting the "Study in Hong Kong" brand. The Task Force on Study in Hong Kong, in collaboration with major institutions, is stepping up promotion of Hong Kong's excellent academic, research, and international collaboration resources on the Chinese Mainland and overseas. It also aims to attract outstanding talent from all over the world through initiatives such as expanding the Belt and Road Scholarship. Hashtag: #HongKong #BrandHongKong #EducationHub #University #QS https://www.brandhk.gov.hk/ https://www.linkedin.com/company/brand-hong-kong/ https://x.com/Brand_HK/ https://www.facebook.com/brandhk.isd https://www.instagram.com/brandhongkongThe issuer is solely responsible for the content of this announcement.
Yet many tanker and shipping stocks are refusing to follow oil lower.
The divergence suggests investors may be focusing on something other than the price of oil itself.
The Market May Be Trading Freight, Not CrudeFor much of the year, rising oil prices and tanker stocks moved in the same direction as geopolitical tensions in the Middle East escalated.
But the recent pullback in crude prices highlights an important distinction.
Tanker operators do not necessarily benefit from higher oil prices. Instead, they benefit from moving oil.
As conflict and uncertainty increase around critical shipping routes such as the Strait of Hormuz, the cost of transporting crude can rise dramatically. Longer voyages, rerouted cargoes, higher insurance costs and elevated freight rates can all boost earnings for tanker operators even if oil prices themselves begin to decline.
That dynamic appears to be playing out now.
While crude prices are responding to diplomatic developments, freight markets may still be pricing in lingering risks to global shipping networks.
The Stocks Tell A Different StoryThe performance gap becomes even more striking when viewed over a longer timeframe.
While USO has gained 65.7% year-to-date, Frontline has surged nearly 89%. Scorpio Tankers has climbed 57%, Matson Inc. (NYSE:MATX) has advanced 56%, and Teekay Tankers has gained almost 44%.
Those returns suggest investors have increasingly viewed shipping companies as a leveraged way to play disruptions in global trade and energy infrastructure.
In other words, the market’s best energy trade may not have been oil itself.
It may have been the ships that move it.
What Investors Are Watching NextThe key question now is whether tanker stocks can continue outperforming if oil prices keep falling.
For now, investors appear to believe that geopolitical risks have not disappeared simply because crude prices have pulled back. Freight markets, shipping routes and energy supply chains remain vulnerable to disruptions, and those factors can continue supporting tanker rates long after the commodity itself cools.
That may explain why oil just suffered one of its worst weeks in months, while many tanker stocks barely flinched.
The market may be signaling that the next chapter of the energy trade is no longer about what’s in the barrel—it’s about how that barrel gets from point A to point B.
Image Via Shutterstock
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That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.
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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Quanta Services (PWR - Free Report) Quanta Services, Inc. is a leading provider of specialty contracting and infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries. Quanta has operations in the United States, Canada, Australia and other selected international markets.
PWR, a #1 (Strong Buy) stock, was added to the Focus List on December 23, 2021 at $111.52 per share. Since then, shares have increased 541.01% to $714.85.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.79 to $13.94. PWR boasts an average earnings surprise of 10.3%.
Additionally, PWR's earnings are expected to grow 29.7% for the current fiscal year.
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Vancouver, British Columbia--(Newsfile Corp. - June 18, 2026) - Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) ("Aegis" or the "Company") is pleased to announce that our product the PWR-Flex 261Q battery energy storage system ("BESS"), in partnership with Aurosi Precision Co., Ltd. ("Aurosi") and SEETEL New Energy (Taiwan) (7740.TW) ("SEETEL"), has successfully completed another product safety standard program for entry into the U.S. marketplace, including fire safety evaluations and supporting NFPA 855 documentation required for deployment across North America.
The PWR-Flex 261Q is a fully integrated AC 261 kWh / 135 kW, liquid-cooled LFP (lithium iron phosphate) outdoor BESS with IP67 battery packs housed in an IP55 enclosure, inverter, chiller, and integrated aerosol fire-suppression and multi-detector safety system. The system has undergone a comprehensive, third-party certification and engineering validation process, including evaluations to UL 9540, UL 9540A, UL 1973, UL 1741 SB, CSA C22.2 No. 107.1, Functional Safety, NFPA 68 and NFPA 69, providing the technical foundation to meet NFPA 855 installation requirements across commercial, industrial and critical-infrastructure applications in North America.
In parallel with this certification milestone, Aegis is also pleased to confirm the successful installation and commissioning of three legacy systems by our partner GG Ventures of the Carolinas, LLC ("GG Ventures") for one of GG Ventures' Fortune 500 clients.
First Quantum-Secured BESS Now Certified
The PWR-Flex 261Q incorporates an embedded quantum-secured cybersecurity architecture, integrating hardware-based Quantum Random Number Generation (QRNG) Quantum eMotion Corp's., (NYSE American: QNC) (TSXV: QNC) (FSE: 34Q0) ("QNC") to provide true quantum-grade entropy for cryptographic keys and signing of commands, telemetry, and firmware updates. The PWR Flex 261Q is delivering one of only fully integrated commercial BESS platforms with built-in quantum-safe protection for data and control systems.
The system is designed for mission-critical and regulated environments including utilities, telecommunications, defence, mining, industrial facilities, remote communities, marine applications and AI/data-center infrastructure.
"This certification program is a turning point for Aegis," said Ramtin Rasoulinezhad, Ph.D., Chief Executive Officer of Aegis Critical Energy Defence Corp. "With PWR-Flex 261Q, we now have a fully certified, fire-validated and quantum-secured BESS platform that can be sold into the U.S. market with the documentation and safety credentials that utilities, industrial operators and regulators demand."
"The NFPA 855 report and the full UL / CSA certification package remove a key barrier to entry and enable our sales channels to move from pilot discussions to revenue-generating projects across North America. At the same time, our first installation of three systems in Indiana with GG Ventures and a Fortune 500 client proves that blue-chip customers are already willing to adopt BESS into secure infrastructure. We see this as a powerful early reference for Aegis as the grid, defence, and data-center sectors begin to treat cyber-resilient power as non-optional," added Dr. Rasoulinezhad.
About Aurosi Precision Co., Ltd.
Aurosi Precision Co., Ltd. ("Aurosi") is a subsidiary of SEETEL New Energy Inc., with Asus, Acer and Taiwan 2nd largest bank "Chalise Bank" as shareholders based in Taichung, Taiwan. Aurosi specializes in the design and manufacturing of advanced battery modules and modular energy-storage systems, with an annual production capacity of approximately 3 GWh Its solutions are engineered for utility-scale projects, AI centers, and data centers, where high reliability, liquid-cooled thermal management and rapid deployment are critical. For more information, visit www.aurosi-precision.com
About SEETEL New Energy Co., Ltd.
SEETEL New Energy Co., Ltd. ("SEETEL") (TW: 7740) is a Taiwan based pioneer in the energy storage industry, providing end to end BESS integration, battery manufacturing and intelligent EMS (energy management system) solutions. Founded in 2017 and listed on the Taiwan Stock Exchange in 2025, SEETEL focuses on lithium battery manufacturing, smart controls and one stop energy storage integration services for utility scale, commercial and industrial, and mobile applications. For more information, visit www.seetel-energy.com
About GG Ventures of the Carolinas, LLC
GG Ventures of the Carolinas, LLC ("GG Ventures") is a strategic investment, advisory and project management firm focused on the power, infrastructure and industrial sectors. The firm offers:
Battery Energy Storage Systems (BESS) supply and distributionConsulting and advisory servicesCapital project financing support and access to capitalProject management across the full asset lifecycle, from planning and design through construction, operations and decommissioning.GG Ventures' founding members have decades of experience working with Fortune 500 companies in strategic management and major capital project delivery, it has a global network of more than 287 industry partners and connections. As Aegis' BESS distribution and integration partner in the United States, GG Ventures is a cornerstone of Aegis' U.S. go to market strategy. For more information, visit www.ggventurescarolinas.com
About Aegis Critical Energy Defence Corp.
Aegis Critical Energy Defence Corp. (CSE: QESS) (OTCQB: QESSF) (FSE: JG6) is a Canadian-based energy technology company focused on the development of secure and resilient energy systems for critical infrastructure. The Company's integrated platform combines advanced energy storage, hybrid and distributed generation systems, intelligent control architectures and cybersecurity to deliver high-reliability solutions for applications across defence, marine, industrial sectors and AI / data centre applications. For more information, visit www.aegiscriticalenergy.com.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Aegis Critical Energy Defence Corp.'s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302068
Source: Aegis Critical Energy Defence Corp.
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Key Takeaways PWR has rallied 66.3% year to date, backed by record first-quarter results and strong momentum.PWR's record $48.5B backlog reflects demand in transmission, utilities, power generation and AI data centers.PWR trades at a premium valuation, making project execution, margins and backlog growth crucial. Quanta Services (PWR - Free Report) has been one of the strongest performers in the engineering and infrastructure space in 2026. The stock has rallied 66.3% year to date, outperforming the Zacks Engineering - R&D Services industry, the broader Zacks Construction sector and the S&P 500, as shown below. The stock is also trading above both its 50-day and 200-day moving averages, reflecting strong technical momentum.
PWR Price Performance (YTD)
Image Source: Zacks Investment Research
PWR's Technical Trend Remains Bullish
Image Source: Zacks Investment Research
The rally has been supported by solid business execution. Quanta delivered record first-quarter 2026 results, raised its full-year outlook and continues to benefit from rising investments in electric grid modernization, power generation and AI-related infrastructure.
The key question is whether the stock still has room to appreciate after such a strong run.
Quanta Is Riding Powerful Industry TailwindsQuanta reported an impressive first quarter, with revenues increasing 26.3% year over year to a record $7.87 billion. Adjusted earnings per share rose to $2.68 from $1.78 a year ago, while adjusted EBITDA reached a record $686 million. The company also generated $392 million in operating cash flow.
Equally encouraging was management's confidence in future demand. Total backlog climbed to a record $48.5 billion, driven by strength across transmission, utility infrastructure, power generation and large-load facilities such as AI data centers. Management raised its 2026 guidance and now expects revenues between $34.7 billion and $35.2 billion, with adjusted earnings per share (EPS) of $13.55-$14.25.
Management also reaffirmed its long-term strategy of more than doubling earnings power by 2030 through investments in transformer manufacturing, off-site fabrication and integrated supply-chain capabilities. These investments should strengthen Quanta's ability to execute large and complex infrastructure projects.
AI Infrastructure Continues to Expand PWR's OpportunityArtificial intelligence remains one of Quanta's biggest growth drivers. The rapid construction of hyperscale data centers is increasing demand for transmission lines, substations, transformers and power generation infrastructure.
Management believes customers increasingly value execution certainty, which plays to Quanta's strengths. The company combines engineering, construction, manufacturing and supply-chain capabilities under one platform, allowing it to complete projects faster and more efficiently than many competitors.
Quanta is also benefiting from investments across transmission, natural gas generation, renewable energy, battery storage and communications infrastructure. During the earnings call, management indicated that demand extends well beyond 2030 as utilities continue expanding the power grid to support electrification and AI-driven electricity consumption.
Earnings Estimates Continue Moving Higher for PWR StockAnalysts have become increasingly optimistic about Quanta's outlook. Over the past 60 days, the Zacks Consensus Estimate for 2026 EPS has increased to $13.94 from $13.15, implying nearly 30% earnings growth from 2025. Revenues are expected to increase 21.5% this year.
Growth is expected to remain healthy in 2027, with consensus estimates calling for 17.5% EPS growth and 12.6% revenue growth.
PWR Estimate Revision Trend
Image Source: Zacks Investment Research
Wall Street sentiment is equally encouraging. Of the 26 analysts covering the stock, 21 rate it a Strong Buy, resulting in an Average Brokerage Recommendation of 1.38. The average price target of $804.13 implies roughly 12.5% upside from current levels.
Image Source: Zacks Investment Research
PWR Stock’s Premium Valuation Raises ExpectationsQuanta's strong fundamentals come at a price. The stock trades at 47.45X forward 12-month earnings, well above the industry average of 31.87X and its three-year median valuation of 33.26X. While still below its three-year peak multiple of 61.73X, the valuation suggests investors already expect sustained double-digit earnings growth.
PWR Valuation
Image Source: Zacks Investment Research
To justify this premium, Quanta must continue executing large projects successfully while maintaining strong margins and backlog growth. Any slowdown in project awards or customer spending could pressure the valuation.
Execution Risks RemainAlthough Quanta's long-term outlook is favorable, investors should keep several risks in mind. Large infrastructure projects remain exposed to permitting delays, labor shortages, adverse weather and supply-chain challenges. While Quanta's integrated operating model helps reduce these risks, execution remains critical.
The company is also investing heavily in manufacturing capacity and supply-chain expansion. These investments should support future growth but require disciplined execution before generating attractive returns. Utility spending and AI infrastructure investments also remain important drivers of future growth, making project timing an important factor for investors.
How PWR Compares With CompetitorsQuanta competes with EMCOR Group (EME - Free Report) , Sterling Infrastructure (STRL - Free Report) and Comfort Systems USA (FIX - Free Report) across several infrastructure markets.
EMCOR continues to benefit from strong demand across data centers, manufacturing facilities and commercial construction. EMCOR has consistently expanded margins through disciplined project execution, making EMCOR one of Quanta's strongest competitors.
Sterling has expanded beyond transportation projects into higher-margin semiconductor, manufacturing and data center construction. Sterling Infrastructure continues to improve profitability, while its growing exposure to AI infrastructure makes it an increasingly important competitor.
Comfort Systems is another major beneficiary of AI-driven infrastructure spending. Comfort Systems specializes in mechanical, electrical and HVAC systems for mission-critical facilities. Comfort Systems continues reporting strong earnings growth, while its expanding backlog reflects healthy demand from technology and industrial customers.
Is PWR Stock Still a Buy?Quanta enters the second half of 2026 with strong momentum. Record backlog, rising earnings estimates, expanding AI infrastructure opportunities and continued grid modernization provide a favorable long-term outlook. Management's higher guidance reinforces confidence that these trends remain intact.
The stock's premium valuation could lead to periods of volatility if project execution slows or infrastructure spending becomes uneven. However, Quanta's industry leadership, improving earnings outlook and long-term growth opportunities continue to support the investment thesis.
With positive estimate revisions, strong operating momentum and a Zacks Rank #1 (Strong Buy), Quanta still appears well positioned for long-term investors despite its impressive rally. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Quanta sees multi-decade demand from grid expansion, data centers and electrification.Quanta aims to more than double earnings power by 2030, with 15%-20% adjusted EPS growth.Quanta ended Q1 with a record $48.5B backlog and raised its 2026 revenue and earnings guidance. Quanta Services, Inc. (PWR - Free Report) is increasingly making the case that its growth story extends far beyond the remainder of this decade. While many investors remain focused on near-term utility spending and AI-driven data center construction, management believes the underlying demand drivers could support growth well into the 2030s and beyond.
During its first-quarter 2026 earnings call, Quanta highlighted that the ongoing expansion of the U.S. power grid, rising electricity demand from data centers, electrification trends and growing generation requirements are creating what it views as a multi-decade infrastructure opportunity. Management noted that utilities are effectively being asked to "double in size," while technology customers continue to demand faster deployment of power infrastructure and large-load facilities.
The company's confidence is reflected in its long-term targets. At its recent Investor Day, Quanta outlined a plan to more than double its earnings power by 2030 while targeting annual adjusted EPS growth of 15%-20%. Management emphasized that these expectations are supported by visible project pipelines, growing customer commitments and strategic investments across its supply chain and manufacturing footprint.
Importantly, Quanta expects demand to remain strong well beyond 2030, driven by ongoing grid modernization, transmission expansion and power generation investments. Management views the buildout needed to support rising electricity demand as a multi-decade effort. Reflecting this outlook, the company ended the first quarter with a record backlog of $48.5 billion and raised its 2026 revenue and earnings guidance after stronger-than-expected results. Quanta is also expanding its transformer manufacturing, fabrication and supply-chain capabilities to capitalize on sustained infrastructure spending.
With the stock often viewed through the lens of current utility capital spending and AI-related projects, investors may be underappreciating the duration of Quanta's growth runway. If management's outlook proves accurate, the company's earnings potential could extend well beyond the current cycle, supporting a stronger long-term valuation than the market currently reflects.
How Does Quanta’s Long-Term Growth Opportunity Compare With Peers?Quanta has become a critical partner in building and modernizing North America's energy and power-delivery networks, positioning it at the center of several long-term secular growth trends. As investors evaluate whether Quanta can sustain its growth momentum beyond 2026, comparisons with EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) underscore the company's differentiated position in the ongoing multiyear infrastructure buildout.
EMCOR is also benefiting from strong demand, especially in electrical, mechanical and mission-critical building systems. Its first-quarter RPOs reached $15.62 billion, supported by data centers, network communications and industrial projects. However, EMCOR’s growth is more closely tied to building construction and facility-related execution.
MasTec is a closer peer, with exposure to power delivery, telecom, clean energy, pipeline and data center infrastructure. MTZ reported a record backlog of $20.3 billion and highlighted durable demand from AI, grid reliability and energy infrastructure.
PWR’s Price Performance, Valuation & EstimatesPWR stock has surged 66.4% in the year-to-date (YTD) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.
PWR YTD Share Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 50.56X, well above the industry’s 31.85X, as shown below.
PWR Valuation
Image Source: Zacks Investment Research
Quanta’s earnings estimates for 2026 and 2027 have increased in the past 60 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 29.7% and 17.5%, respectively.
Image Source: Zacks Investment Research
PWR’s Zacks Rank
Quanta currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways HII delivered its first REMUS 130 UUV to a U.S. ally, boosting its maritime systems business.REMUS UUVs support naval, commercial and research missions with modular, durable designs.HII could benefit as the global UUV market is forecast to reach $25.9 billion by 2035. Huntington Ingalls Industries (HII - Free Report) recently delivered the first REMUS 130 unmanned underwater vehicle (UUV) to a U.S. ally, marking an important milestone for its autonomous maritime systems business.
The delivery highlights HII's continued investment in next-generation underwater technologies and expands the global presence of its REMUS family of UUVs.
HII’s Focus on REMUS UUVsHuntington Ingalls’ REMUS family of UUVs is used to collect data for a variety of operations. They are well-known for their long service life, durability and easy upgradeability. The autonomous systems can operate independently or teamed with crewed platforms — such as Virginia-class nuclear submarines — expanding operational reach while reducing detection risk and personnel exposure.
Designed for flexibility, REMUS UUVs operate at different depths and durations, making them suitable for tasks like offshore exploration, scientific research and naval missions. Their modular design and advanced technology ensure reliable performance while keeping costs manageable. With proven capabilities, REMUS UUVs continue to enhance underwater operations across military and commercial sectors.
The REMUS 130 is the latest version of the REMUS 100 series and the third generation of the platform. Built on the proven REMUS 300 technology, it offers improved underwater capabilities, greater flexibility and a modular design while keeping costs and risks lower. The vehicle is powered by HII’s Odyssey software suite, which helps improve mission coordination, operational efficiency and autonomous operations across different platforms.
Growth ProspectsAccording to a report from Market Research Future, the increased demand for exploration activities among oil and gas manufacturers, along with the growing concerns regarding maritime security and cross-border maritime threats, has led to the growth of the UUV industry. Market Research Future also forecasts that the global UUV market is expected to witness a CAGR of 16.6% during 2025-2035 to reach $25.9 billion by 2035.
This market growth opportunity should boost Huntington Ingalls’ operating results as it is the largest producer of UUVs worldwide.
Opportunities for Other Defense StocksOther defense companies that are likely to benefit from the expanding global UUV market are discussed below:
General Dynamics (GD - Free Report) : General Dynamics’ Mission Systems unit has a wide portfolio of autonomous UUVs, with its major programs including the Knifefish and Bluefin Robotics. Currently, the company is engaged in the production of next-generation UUVs for the U.S. and Australian Navy, which will be deployed on mine-hunting missions all over the world to protect sailors and their ships.
General Dynamics has a long-term (three to five years) earnings growth rate of 9.7%. The Zacks Consensus Estimate for GD’s 2026 sales indicates year-over-year growth of 4.7%.
BAE Systems PLC (BAESY - Free Report) : BAE Systems’ Riptide UUVs have created unmatched vehicles by combining autonomous undersea platforms with world-class sensor and electronic payloads. These UUVs provide multiple capabilities like autonomy, navigation, signals intelligence systems, acoustic, sensor processing and many more.
BAE Systems has a long-term earnings growth rate of 15%. The Zacks Consensus Estimate for BAESY’s 2026 sales indicates year-over-year growth of 56.4%.
Lockheed Martin (LMT - Free Report) : Lockheed Martin’s Marlin is a 10-foot-long autonomous underwater vehicle system. It uses advanced sensors and high-definition video to create 3D models of its undersea environment. With an operational depth of up to 1,000 feet below the surface, it caters to multiple civil and military operations.
Lockheed Martin has a long-term earnings growth rate of 18.5%. The Zacks Consensus Estimate for LMT’s 2026 sales indicates year-over-year growth of 5.3%.
HII Stock’s Price PerformanceShares of Huntington Ingalls have gained 27.5% in the past year compared with the industry’s 7.3% growth.
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HII’s Zacks RankHII currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LONDON--(BUSINESS WIRE)--Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) today announced that following a thorough search process, the Nomination Committee recommended and the Board appointed Julian Ide as an independent non-executive director of the PSH Board. Mr. Ide will join the Board with effect from June 18, 2026. “Julian brings a wealth of global asset management experience and deep expertise in client engagement and product positioning, and we are delighted to welcome him to the Board.
Key Takeaways SJM has durable growth platforms in Uncrustables, Cafe Bustelo and Away From Home. Uncrustables reached $1B in annual sales, added 3M households and has 27% penetration. Fiscal 2027 sales are expected to fall 3-4%, with snack and pet-food softness weighing. The J. M. Smucker Co. (SJM - Free Report) remains a balanced consumer staples story. Uncrustables, Cafe Bustelo and Away From Home give the company several durable growth platforms, while cash generation and coffee margin recovery support the earnings setup.
The offset is visibility. Fiscal 2027 sales are expected to decline, and softer spots in Sweet Baked Snacks and pet foods keep the investment case from becoming a cleaner growth story.
Why SJM Still Has Defensible BrandsSmucker’s portfolio spans coffee, spreads, frozen handheld sandwiches, pet foods and sweet baked goods. Key brands include Folgers, Dunkin’, Cafe Bustelo, Jif, Smucker’s, Uncrustables, Meow Mix, Milk-Bone and Hostess.
That breadth supports resilience because the company sells through food retailers, mass merchandisers, club stores, discount stores, online retailers, pet specialty stores and foodservice distributors. The Kraft Heinz Company (KHC - Free Report) and General Mills, Inc. (GIS - Free Report) remain relevant packaged-food peers, underscoring how scale brands and retail reach still matter in center-store categories.
How Smucker Is Building on UncrustablesUncrustables is Smucker’s clearest scalable growth platform. The brand reached $1 billion in annual sales, added about 3 million households over the past year and still has household penetration of only 27%.
The growth path is not limited to the retail freezer aisle. About 75% of brand sales come from U.S. Retail and 25% from Away From Home, while fridge-friendly offerings and breakfast sandwiches with 12 grams of protein expand usage occasions.
Why Cafe Bustelo Matters for SJMCafe Bustelo gives Smucker a faster-growing asset inside a mature at-home coffee market. The brand grew net sales 39% in fiscal 2026 within U.S. Retail Coffee and reached about $550 million in sales.
Distribution expansion in the Central and West Coast regions, differentiated roast profiles and appeal with Gen Z and Millennial consumers add runway. Smucker’s ambition to make Cafe Bustelo a top-four at-home coffee brand gives the coffee portfolio a more visible growth target.
What Smucker Gains From Away From HomeAway From Home now stands as a separate reportable segment, improving visibility into non-retail channels. In the fourth quarter of fiscal 2026, segment net sales rose 15%, or 14% excluding foreign currency, and segment profit increased 21%.
The segment serves schools, workplaces, lodging, healthcare, convenience stores and restaurants. Its leadership positions in frozen sandwiches, on-demand dispensed coffee and portion-control spreads help broaden demand beyond grocery shelves. Keurig Dr Pepper Inc. (KDP - Free Report) is a useful coffee-channel reference point, given Smucker’s exposure to at-home and away-from-home coffee formats.
What Could Hold SJM Back in 2027The fiscal 2027 outlook keeps the story measured. Net sales are expected to decline 3-4%, reflecting lower net price realization and a decline in volume/mix.
Sweet Baked Snacks remains the clearest execution challenge after fiscal 2026 segment sales fell 18% to $971.3 million. Pet foods is also uneven, with fiscal 2026 U.S. Retail Pet Foods sales down 4% to $1.6 billion as dog snacks and lapped contract manufacturing sales weighed on results.
Higher brand spending adds another watchpoint. Selling, distribution and administrative expenses are projected to rise about 5% in fiscal 2027, including marketing expense of 5.7% of net sales, so stronger volume conversion is needed to support leverage.
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How SJM Signals Fit the Investor SetupThe bottom line is that SJM has credible growth platforms, but investors still need to balance those assets against execution risk and a declining sales outlook. Coffee cost moderation and productivity savings are expected to support adjusted gross margin expansion to about 38%, while free cash flow is projected at about $1 billion.
Valuation also reflects a discount. SJM trades at 11.7X forward 12-month earnings, below 14.14X for its Zacks sub-industry, 16.91X for the Zacks sector and 21.76X for the S&P 500.
The stock currently carries a Zacks Rank #3 (Hold). Its current Style Scores include a Value Score of B and VGM Score of A, which are favorable under the Zacks framework, but the Rank remains the first screen because it reflects earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For SJM, that combination fits a neutral setup. The discounted valuation and brand platforms are positives, while fiscal 2027 sales pressure, snack instability and uneven pet recovery argue for measured expectations.
Key Takeaways SJM is leaning into foodservice, convenience formats, premium coffee and margin recovery. Away From Home sales rose 15% in Q4, driven by coffee, Uncrustables and foodservice demand. Fiscal 2027 sales are expected to fall 3-4%, with lower pricing and softer volume/mix weighing. The J. M. Smucker Company (SJM - Free Report) is trying to make its next phase less dependent on mature grocery categories. The company is leaning into foodservice channels, convenience-led formats, premium coffee and productivity-led margin recovery.
Fiscal 2027 sales are expected to decline 3% to 4%, so investors need proof priority platforms can offset softer demand elsewhere.
How SJM Is Expanding Beyond Retail ShelvesAway From Home is the clearest sign that Smucker is pushing beyond traditional retail shelves. The business serves schools, workplaces, lodging, healthcare, convenience stores and restaurants, giving SJM more ways to reach consumers.
The segment became separately reportable in fiscal 2026, signaling that it is now large enough to influence the company narrative. Fourth-quarter Away From Home sales rose 15%, driven by coffee, Uncrustables, fruit spreads and foodservice demand.
The Kraft Heinz Company (KHC - Free Report) is relevant because packaged food companies are also looking for growth beyond center-store exposure. Smucker’s channel mix gives investors another test of how legacy brands can find new occasions.
Why Smucker Is Betting on ConvenienceUncrustables is the lead example of Smucker’s convenience strategy. The brand reached $1 billion in annual sales, added about 3 million households over the past year and still has household penetration of only 27%.
The product strategy is built around more eating moments. Fridge-friendly Uncrustables can stay fresh in the refrigerator for up to five days, while breakfast varieties with 12 grams of protein extend the brand into morning usage.
Image Source: Zacks Investment Research
How Coffee Trends Favor SJM MarginsCafe Bustelo gives Smucker a faster-growing coffee platform inside a mature category. The brand grew net sales 39% in fiscal 2026 within U.S. Retail Coffee and reached about $550 million in sales.
Growth is supported by expansion in the Central and West Coast regions, differentiated roast profiles, innovation and marketing aimed at a broader audience while preserving its Latin roots. Management has also cited resonance with Gen Z and Millennial consumers.
Coffee also shapes the margin story. Green coffee deflation is expected to weigh on sales as lower costs are passed through, but it is expected to help profitability, with productivity actions supporting adjusted gross margin of about 38% in fiscal 2027. Tariffs remain a watchpoint because guidance does not assume impacts from new or changed tariffs.
Where Smucker Still Faces Demand FrictionNot every category is participating equally. Sweet Baked Snacks remains a stabilization project after fiscal 2026 segment sales fell 18% and segment profit declined nearly 56%.
Pet foods also remain uneven. Cat food has momentum, but dog snacks and the lapping of contract manufacturing sales tied to divested pet food brands weighed on fiscal 2026 U.S. Retail Pet Foods sales.
General Mills, Inc. (GIS - Free Report) is a useful comparison because it also has exposure to packaged foods and pet. For SJM, the key issue is whether pet can move from selective improvement to broader volume support.
What SJM Spending Says About PrioritiesSmucker is putting more money behind the brands it wants to lead the next phase. Selling, distribution and administrative expenses are projected to rise about 5% in fiscal 2027, with marketing expense expected at 5.7% of sales.
That spending is focused on Uncrustables, Cafe Bustelo, Meow Mix and Milk-Bone. The logic is clear, but the payoff still has to show up in durable volume growth during a year when lower pricing and softer volume/mix are expected to pressure sales.
How Smucker Signals Frame the Trend TradeThe bottom line is that SJM has credible trend support, but the stock still reads as a neutral trend trade. Channel diversification, convenience innovation, premium coffee and margin recovery all help, but fiscal 2027 sales visibility remains weak.
The stock currently carries a Zacks Rank #3 (Hold). It also has a Value Score of B, Growth Score of A, Momentum Score of A and VGM Score of A, giving investors favorable style signals to compare with the hold-ranked earnings-revision backdrop. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores are designed to complement the Zacks Rank, not replace it. For SJM, that means favorable grades support monitoring the trend case, while the Zacks Rank #3 keeps the near-term stance measured until sales and execution improve.
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) has been selected by the Illinois Department of Healthcare and Family Services (HFS) to serve members statewide in HealthChoice Illinois, the state’s Medicaid managed care program. Humana looks forward to supporting Illinois’ goals for health and well-being of the individuals and families it will serve.
For more than a decade, Humana has had the privilege of serving some of Illinois’ most vulnerable residents, caring for dual eligible members who navigate both Medicare and Medicaid through the Medicare-Medicaid Alignment Initiative (MMAI), and, today, the state’s Fully Integrated Dual Eligible Special Needs Plan (FIDE-SNP) which launched January 1, 2026. HealthChoice Illinois is an opportunity for Humana to extend that same commitment to more individuals and families the state serves, across 102 counties, in continued partnership with HFS.
“It’s an honor to care for more Illinois Medicaid members and their families,” said Samantha Olds Frey, Humana’s Medicaid President in Illinois. “Our goal has always been to provide whole-person care across every generation, from children to older adults, and HealthChoice Illinois lets us do that. We’re grateful for the confidence HFS has placed in us, and we’ll keep working alongside the state, providers and community organizations to improve care and quality of life for the communities who depend on us.”
Humana’s approach reflects HFS’s priorities and commitment to whole-person care. As an active member of the community, Humana has invested in local organizations that address the health-related social needs of Illinois Medicaid members, including maternal health, behavioral health and housing stability:
Maternal Health: Humana is partnering with the Illinois Public Health Association to ease maternal health workforce shortages in high-disparity counties and expand the availability of community health workers to support enrollees. Behavioral Health: Through collaboration with Southern Illinois University’s Behavioral Health Workforce Center, Humana will help increase workforce capacity in rural and underserved areas. Additionally, Humana is working with Brightpoint to support the Schubert Family Wellness Center in Chicago’s Belmont Cragin neighborhood. Supportive Housing: Mercy Housing Lakefront, one of the nation’s largest nonprofit affordable housing providers, and Humana are working together to provide transitional housing support and help prevent homelessness among members. Humana’s HealthChoice plan is slated to go live in January 2027 and looks forward to continuing its partnership with the state of Illinois to deliver meaningful, member-centered care and drive improved health outcomes for years to come.
About Humana
Humana (NYSE:HUM) is a leading U.S. healthcare company. Through our Humana insurance services and our CenterWell® healthcare services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare and Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com.
@Theotrade's Don Kaufman walks us through today's Big 3 and offers example options trades for his picks. He points to Humana (HUM) as a great bearish opportunity in the weeks to come, Bank of America (BAC) as a bullish opportunity into all-time high territory, and Microsoft (MSFT) not being able to shake bearish trends.
Until recently, it had been a lackluster year for the healthcare sector. From high medical utilization squeezing insurers to structural cost pressures and valuation hangovers, medical stocks stocks have lagged much of the broader market this year. But there are some indications that the tide is turning.
The market’s increasingly concentrated tech focus continues to encourage the rotation into overlooked, defensive sectors like healthcare. At the same time, costs are beginning to stabilize, and the U.S. Food and Drug Administration (FDA) has been supportive of the biopharma pipeline, meeting review deadlines and accelerating pathways for novel therapies.
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Over the past month, healthcare’s 5.4% gain only trails financials (at 6.36%) and tech (at 5.78%). While that broad turnaround has been welcomed by investors looking for a spark from the sector, the outsized performances of three stocks in particular have played a big role in the rally.
Eli Lilly: The Market Cap King of Pharma Continues Its GLP-1 DominanceEli Lilly and Company Stock Forecast Today12-Month Stock Price Forecast:
$1,227.74
11.74% Upside
Moderate Buy
Based on 30 Analyst Ratings
Current Price$1,098.78High Forecast$1,400.00Average Forecast$1,227.74Low Forecast$850.00Eli Lilly and Company Stock Forecast Details
Big Pharma member Eli Lilly NYSE: LLY boasts the largest market cap by far of any healthcare company. At about $1 trillion, Eli Lilly is nearly double that of Johnson & Johnson NYSE: JNJ, whose $562 billion market cap ranks second.
So when LLY outperforms, it has the ability to impact the broader sector as a whole.
Over the past month, shares are up around 11%, continuing a rally that’s seen the stock rise nearly 31% from its year-to-date (YTD) low on April 29. There are numerous catalysts driving Eli Lilly’s performance of late, but principally, the surge boils down to hypergrowth of its GLP-1 metabolic drug line.
The pharmaceutical company’s two flagship GLP-1 drugs, Mounjaro and Zepbound, continue to dominate the global market. In Q1 2026, sales of Mounjaro—which is most often prescribed to treat Type 2 diabetes—jumped 125% year over year (YOY) to nearly $8.7 billion. Zepound added more than $4 billion in sales, good for a YOY increase of around 80%.
On April 1, Eli Lilly received FDA approval for its oral GLP-1 pill, Foundayo. Because Foundayo is a pill and doesn't require strict food and water fasting restrictions like older oral biologics, it vastly expands Eli Lilly’s total addressable market for individuals who are looking to avoid injectable therapeutics.
So it was no surprise when the company blew past earnings expectations in Q1, with earnings per share (EPS) of $8.55 easily surpassing analyst expectations of $6.97, and revenue of $19.8 billion coming in higher than the forecasted $17.82 billion and 56% higher YOY.
But with a forward price-to-earnings (P/E) multiple of around 31, critics contend that LLY is trading at tech stock valuations rather than a defensive healthcare position.
Nonetheless, as the sector’s largest player, 25 of the 30 analysts currently covering Eli Lilly assign it a Buy or Strong Buy, with the stock receiving a consensus Moderate Buy rating. Meanwhile, the average 12-month price target for LLY implies approximately 10% additional upside.
Current Price$360.84High Forecast$441.00Average Forecast$291.35Low Forecast$195.00Humana Stock Forecast Details
Louisville-based insurance provider Humana NYSE: HUM has been one of the market’s biggest comeback stories in 2026.
At the end of Q1, the stock was down more than 70% from its all-time high in 2022.
That was mostly driven by a post-pandemic rush of medical treatment that saw Humana’s benefit ratio—the percentage of premiums spent on actual medical care—climb to an unsustainable 93% by the end of 2025.
But after hitting its five-year low on March 12, the stock has gained nearly 123%, including more than 18% over the past month.
After years of facing staggeringly high benefit ratios, Humana has seen elective treatments moderate, which in turn has widened the company’s margins. In Q1, net income margin stood at 2.99% versus negative 2.39% in Q4 2025 and 0.59% in Q3 2025.
Analysts were also impressed with Humana’s revenue growth, which in Q1 registered 23.47% after averaging just 10.17% over the preceding five quarters. Of the 28 analysts covering Humana, only nine have assigned it a Buy or Strong Buy rating. Overall, it receives a consensus Hold rating and an average 12-month price target that suggests a notable correction could be in the cards after HUM’s share price has run up in recent months.
Current Price$72.47High Forecast$102.00Average Forecast$84.83Low Forecast$64.00DexCom Stock Forecast Details
With a market cap of nearly $28 billion, DexCom NASDAQ: DXCM is the least recognizable stock on this list.
The company develops, manufactures, and distributes medical devices, including continuous glucose monitoring (CGM) systems for people with diabetes.
Its products are designed to provide near-real-time glucose readings, trend data, and alerts to help patients and clinicians manage insulin dosing and reduce the risk of hypoglycemia and hyperglycemia.
The stock had fallen on tough times, down nearly 55% from its all-time high in November 2021. But DexCom changed the narrative with a massive expansion into the non-insulin market.
Historically, CGMs were primarily targeted to intensive insulin users. But the company is aggressively moving into the broader Type 2 diabetes and preventative health markets.
At an American Diabetes Association conference in June, DexCom released landmark data from its CONNECT trial demonstrating that its flagship G7 sensor led to statistically significant reductions in blood sugar levels for adults with Type 2 diabetes who do not use insulin. At the same time, the company released a revamped app for Stelo, the first over-the-counter CGM designed specifically for pre-diabetics and Type 2 diabetics not on insulin, thereby opening up a massive new addressable market for the company.
DXCM is now up more than 27% since its YTD low on April 29, including a gain of more than 15% over the past month. DexCom has beat on EPS for four consecutive quarters, with revenue growth averaging 15.61% over that time versus the 1.97% growth it saw preceding that stretch.
Despite the recent run-up, analysts forecast nearly 19% additional upside over the next 12 months to go along with a consensus Moderate Buy rating.
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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
