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Dave & Buster’s stock is among today’s weakest performers. What’s pressuring PLAY stock? Earnings HighlightsDave & Buster’s reported adjusted earnings per share of 22 cents, missing the consensus estimate of 61 cents. In addition, it reported revenue of $559.20 million, missing the consensus estimate of $580.46 million and representing a 1.5% year-over-year decline.

Comparable store sales fell 5.4% compared to the same period in fiscal 2025. The company ended the quarter with $499.1 million in available liquidity.

Dave & Buster’s opened one new domestic store in the first quarter and three additional domestic stores in the second quarter. The company has completed six store remodels in fiscal 2026 and expects two more by year-end. Its international franchise footprint expanded to six stores with openings in May and June.

“While first quarter results fell short of expectations, our back-to-basics strategy is gaining clear traction,” said Tarun Lal, CEO. “We are highly confident in our ability to drive positive comps for the remainder of the year while generating over $100 million in free cash flow in fiscal 2026.”

Analyst Consensus & Recent ActionsThe stock carries a Hold rating with an average price target of $14.67. Recent analyst moves include:

UBS: Neutral (Lowers Target to $12.00) (June 16) Dave & Buster’s Shares CraterPLAY Price Action: At the time of publication, Dave & Buster’s shares are trading 18.02% lower at $10.10, according to data from Benzinga Pro.

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Includes all-new Marvel Infinity Comics series and access to expansive digital catalog of comics

New York, NY--(BUSINESS WIRE)--USA TODAY PLAY, a unified digital hub for casual entertainment and gaming, part of USA TODAY Co., Inc. (NYSE: TDAY), announced a collaboration with Marvel Comics to provide an exclusive vertically-formatted Marvel Infinity “Spider-Man TODAY” Comic series to USA TODAY PLAY. The all-new specially created comic “Spider-Man TODAY” weekly subscriber series written by Al Ewing and illustrated by Todd Nauck will publish every Wednesday for the next 47 weeks showcasing the adventures of the web-slinger teaming up with heroes from across the Marvel Universe.

Additionally, USA TODAY PLAY subscribers can enjoy unlimited access to a catalog of 1,000 digital comics from Marvel’s expansive breadth of characters and storylines including X-Men, Captain America, Black Panther, Fantastic Four, Guardians of the Galaxy, and Captain Marvel among many others. *Non-subscribers can explore a curated weekly selection.

“We’re thrilled to expand the USA TODAY PLAY brand through this exciting collaboration with Marvel,” said Dara Sanderson, Vice President and General Manager of USA TODAY PLAY. “We’re continuing to broaden our offerings, and this project is a testament to that. By blending iconic storytelling with interactive experiences true to the USA TODAY PLAY ethos, we continue to create daily moments that provide users well-deserved breaks from everyday stressors.”

“As digital comics continue to grow, we have the opportunity at Marvel to bring our comics to more fans across different platforms,” said Jon-Michael Ennis, Director of Digital Publishing at Marvel. “We’re excited to be working with USA TODAY to invite even more people to experience our comic book storytelling, whether they’re brand new to comics or lifelong readers.”

Featuring digital comics, puzzles, games and more, USA TODAY offers multiple ways to PLAY. Users can access content ad-free with a subscription, or for free using an ad-supported option. Paid subscribers also enjoy additional benefits, including unlimited hints and reveals in puzzles, full access to archival content, and early access to select new features.

*Subscription Pricing and Availability (subject to applicable terms and conditions)

USA TODAY PLAY monthly subscription: $0.99 for the first month, then $4.99 per month USA TODAY PLAY annual subscription: $39.99 per year Add USA TODAY PLAY monthly subscription to an existing USA TODAY Network subscription: $2 per month Add USA TODAY PLAY annual subscription to an existing USA TODAY Network subscription: $24 per year Anonymous Users: Enjoy access to 1 free Marvel comic a week (from a curated selection of 10) Registered Users: Enjoy access to 2 free Marvel comics a week (from a curated selection of 10) ABOUT USA TODAY CO., INC.

USA TODAY Co., Inc. is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. Our mission is to inspire, inform, and connect audiences. As a media and digital marketing solutions company we are focused on sustainable growth. Through our trusted brands, including the USA TODAY NETWORK, comprised of the national publication, USA TODAY, and our network of local properties, in the United States, and Newsquest, a wholly-owned subsidiary operating in the United Kingdom, we provide essential journalism, local content, and digital experiences to audiences and businesses. We deliver trusted unbiased journalism when and where consumers want it. LocaliQ, our digital marketing solutions brand, supports small and medium-sized businesses with innovative digital marketing products and solutions.

ABOUT USA TODAY

Since its introduction in 1982, USA TODAY has been a cornerstone of the national media landscape under its recognizable and respected brand. It also serves as the foundation for our newsroom network which allows for content sharing capabilities across our local and national markets. Through USA TODAY, we deliver high-quality, trusted content with a commitment to balanced, unbiased journalism, where and when consumers want to engage. Across our digital platforms we reach an audience of approximately 87 million unique visitors each month (based on December 2025 Comscore Media Metrix®).

ABOUT MARVEL

Marvel is one of the world’s most prominent entertainment brands, built on an unparalleled library of iconic characters and stories that have shaped pop culture for over 85 years. The Marvel brand spans entertainment, including film, television, publishing, licensing, games, live events, digital media, and more. For more information visit marvel.com. © 2026 MARVEL

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to whether this initiative will enable USA TODAY Co. to increase sales or revenues, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “could,” “will,” “would,” “ongoing,” “future” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance, or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. For a discussion of some of the risks and important factors that could cause actual results to differ materially from our expectations, see the risks and other factors detailed in “Item 3. Key Information - Risk Factors” in USA TODAY Co.’s (fka Gannett Co., Inc.) 2025 Annual Report on Form 10-K and USA TODAY Co.’s (fka Gannett Co., Inc.) quarterly reports on Form 10-Q and USA TODAY Co.’s (fka Gannett Co., Inc.) other filings with the SEC, in each case as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. USA TODAY Co. disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

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Dave and Buster's Entertainment Inc. (NASDAQ:PLAY) reported downbeat earnings for the first quarter after the closing bell on Monday.

The company posted quarterly earnings of 22 cents per share, which missed the analyst consensus estimate of 61 cents per share. The company reported quarterly sales of $559.200 million, which missed the analyst consensus estimate of $580.461 million.

Dave and Buster's shares fell 8.8% to trade at $11.23 on Tuesday.

These analysts made changes to their price targets on Dave and Buster's following earnings announcement.

UBS analyst Dennis Geiger maintained the stock with a Neutral and lowered the price target from $13 to $12. BMO Capital analyst Andrew Strelzik maintained the stock with an Outperform rating and lowered the price target from $24 to $22. Benchmark analyst Mike Hickey downgraded Dave & Buster’s from Buy to Hold. Considering buying PLAY stock? Here’s what analysts think:

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Dave & Buster's PLAY is experiencing significant pressure after falling short of expectations in its Q1 (April) report. The company reported a notable EPS miss, with revenue declining 1.5% year-over-year to $559.2 million. The primary concern appears to be a drop in customer traffic, particularly during the peak spring break season in March and April, attributed to macroeconomic pressures and declining consumer sentiment. However, management pointed to improving free cash flow, positive trends in food and beverage sales, and strong performance from remodeled locations as indicators that internal changes are beginning to take effect.

Traffic and Food & Beverage Performance: Same-store sales fell by 5.4%, worsening from a 3.3% decline in Q4 (January). On a positive note, food and beverage comps increased by approximately 5%, marking nine consecutive months of growth in this area, indicating that the main issue lies with entertainment traffic. Challenges: The company's $1-per-day promotional messaging did not resonate as intended, compounded by macroeconomic pressures and weaker consumer sentiment during March and April. Although Q2-to-date comps have improved, they remain down about 4%. Successful Remodels: The remodeled locations have outperformed the overall system by nearly 700 basis points. Management noted that the new prototype remodels cost about half of the previous versions while delivering a 7% comp uplift. Traffic Recovery Initiatives: PLAY is working to boost traffic through a marketing reset, new promotions, fresh game offerings, World Cup activations, and value deals like Eat & Play bundles. The company recently introduced 10 new games and anticipates adding at least five more this year. Capital Allocation Strategy: PLAY plans to open 11 new stores in FY26 but has expressed a willingness to allocate more capital towards remodels and core business improvements. Future openings in FY27 and FY28 may slow to around five per year. Future Outlook: The company is still targeting positive comps for the remainder of FY26, along with EBITDA growth and over $100 million in free cash flow. Analysts note that this was not the anticipated start for PLAY or its investors as the company navigates its turnaround. Comp sales have declined in Q1, and while macroeconomic headwinds impacted the busy spring break season, the execution of the promotional strategy also fell short. Although improvements in food and beverage trends, successful remodels, and enhanced free cash flow indicate some internal progress, they have not sufficiently countered the decline in traffic and entertainment revenue. With Q2-to-date comps still down about 4%, it remains challenging to support management's goal for positive comps for the rest of FY26. Until PLAY demonstrates a recovery in traffic and entertainment revenue, investor skepticism regarding the turnaround may persist, despite the positive signs from remodels and cash flow.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Dave & Buster's Entertainment PLAY shares fell about 4% after the company reported weaker-than-expected fiscal first-quarter 2026 results, as softer customer demand and higher operating costs weighed on sales and profitability.

The restaurant and entertainment operator posted adjusted earnings per share of $0.22, missing analysts' consensus estimate of $0.37.

The figure also declined significantly from adjusted earnings of $0.76 per share reported in the year-ago quarter.

Revenue totaled $559.2 million, falling short of Wall Street expectations of approximately $571 million and declining 1.5% from the prior year.

The company said lower comparable-store sales contributed to the revenue decline, partially offset by growth from newer locations.

The quarter was marked by weaker traffic at existing locations, particularly within the company's higher-margin entertainment business.

Comparable-store sales, including Main Event-branded locations, declined 5.4% year over year.

Management attributed the decline largely to reduced walk-in traffic compared with the same period last year.

The weakness came despite continued efforts to improve customer engagement through promotional initiatives and operational enhancements.

Dave & Buster's Chief Executive Officer, Tarun Lal, said the company entered the quarter with positive momentum before broader economic conditions affected consumer behavior.

“Of the macro backdrop, elevated gas prices, geopolitical uncertainty and a meaningful softness in consumer sentiment. They all were a real headwind in April.”

The softer demand environment weighed on discretionary spending, affecting both customer visits and overall sales trends during the quarter.

Performance varied significantly across business segments.

Food and beverage revenue increased 6.5% year over year to $214.1 million, supported by menu updates and enhancements to the company's eat-and-play combo offerings introduced during the second half of fiscal 2025.

The company said these initiatives helped improve food attachment rates and average customer spending.

However, entertainment revenue declined 5.9% year over year to $345.1 million.

Since arcade and gaming operations typically generate higher margins than food and beverage sales, the shift in revenue mix created additional pressure on profitability.

Management also reviewed the effectiveness of its marketing efforts during the quarter.

“We found that our dollar per day messaging did not resonate as strongly as we hoped. And since then, we have pivoted to more compelling promotions, which are resonating with customers,” said Lal.

The company said it has since adjusted its promotional strategy in an effort to better connect with value-conscious consumers.

Profitability weakened during the quarter as lower sales leverage combined with higher expenses.

Operating income declined to $46.9 million from $63.2 million a year earlier. Operating margin fell to 8.4% from 11.1%.

Adjusted EBITDA totaled $123.2 million, down from $136.1 million in the prior-year quarter. Adjusted EBITDA margin contracted to 22% from 24%.

Despite the disappointing results, management highlighted progress in several areas of its turnaround strategy.

The company said improvements to food and beverage offerings, marketing initiatives, and its remodel program are helping enhance the guest experience.

Dave & Buster's also continued to invest in future growth through new store openings, remodel projects, and international franchise expansion.

Management indicated that these initiatives remain central to its long-term strategy despite near-term challenges from a cautious consumer environment.

Urges Stockholders to Vote “FOR” ALL Six of Vaxart’s Director Nominees on the WHITE Proxy Card TODAY

Visit Vote.Vaxart.com for Additional Information and Voting Resources

SOUTH SAN FRANCISCO, Calif., June 16, 2026 (GLOBE NEWSWIRE) --  Vaxart, Inc. (OTCQX: VXRT) (“Vaxart” or the “Company”), a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform, today mailed a letter to shareholders from the Board’s two newest independent directors, James Breitmeyer, M.D., Ph.D., and Kevin Finney, urging them to vote “FOR” ALL six of the company’s highly qualified director nominees on the WHITE proxy card in connection with its upcoming Annual Meeting of Stockholders scheduled to be held on July 16, 2026.

The full text of the letter is as follows:

Dear Fellow Shareholders,

We are Vaxart’s two newest independent directors, having each joined the Board in the last 18 months. We’d like to take this opportunity to explain why we both believe your vote on the WHITE proxy card “FOR” ALL of Vaxart’s directors before the July 16th Annual Meeting is essential.

Between us, we have spent more than 70 years in biotechnology, with expertise spanning clinical development, regulatory strategy, financing, business development and executive leadership. We joined the Board with the explicit purpose of providing fresh perspectives and open minds. We did not come to this Boardroom with preconceived notions or established relationships with Vaxart’s other directors.

We view our roles as the newest members to critically evaluate and review the Company’s current strategy. We are leveraging our respective experiences and very high expectations to hold management accountable for the Company’s performance and execution of its strategy.

Our time on the Board has reinforced that this is a team committed to creating shareholder value. Vaxart is on the brink of unlocking the value of years of scientific innovation. But there is much more work that needs to be done. This is not the time to disrupt a Board that has the experience, independence and judgment to oversee the path forward.

We recommend that shareholders vote on the WHITE proxy card “FOR” ALL 6 of Vaxart’s directors.

Our Board is Driving Vaxart Forward and Holding Management Accountable

Since we joined Vaxart, it has been clear to us that this Board is active, informed and willing to change when needed. Each of the Board’s members brings important and relevant skills to the table and plays an active role in steering the Company to success. Our Board discussions are frequent and substantive. Management is pushed. Alternatives are considered. Decisions are evaluated through the lens of clinical progress, capital discipline, strategic opportunity and long-term shareholder value.

The directors at the center of this election – Steven Lo, Dr. Elaine J. Heron and Dr. David Wheadon – all bring experience that is directly relevant to Vaxart’s needs today: proven life sciences and drug development track records, public company and operational leadership, and decades of clinical research and regulatory experience. Those perspectives are not theoretical.

Removing these directors and replacing them with unqualified nominees would immediately undermine the Company’s ability to bring informed, experienced judgment to the decisions that matter most for Vaxart’s future and to advance critical government and commercial relationships that are essential to success.

Vaxart Leadership is Successfully Navigating a Difficult Macro and Industry Environment

Like many other companies in our industry, Vaxart has faced macro challenges beyond any individual company’s control, including the stop-work orders BARDA issued across many vaccine programs in early 2025. This Board responded decisively, working with management to secure funding for the ongoing Phase 2b COVID-19 study, strengthening Vaxart’s financial position through the Dynavax partnership, streamlining operations and extending the Company’s runway.

These were consequential actions taken to preserve Vaxart’s opportunity to operate. In our view, they demonstrate the kind of oversight and action Vaxart needs: engaged, pragmatic and made possible because of the specific experience and expertise our Board and management team bring to the table. Our CEO, Steven Lo, has been instrumental in all of these efforts. We fully endorse his leadership, and we believe that the actions he has taken have been essential to keeping the Company in business and on a path to realizing the value of our pipeline.

We have seen that same discipline and sense of purpose inside the Company. Recently, Jim spent time with members of Vaxart’s research and development organization. The conversations were candid, data-driven and grounded in a realistic understanding of Vaxart’s opportunities and challenges. The excitement is palpable and we are full steam ahead.

Vote the WHITE Proxy Card Today

Vaxart needs directors who understand the Company at every level and who can apply that knowledge to our future. The current Board brings that exact combination of relevant expertise, Company-specific context and accountability to shareholders. With important clinical and operational milestones ahead, continuity of experienced oversight matters. Focus matters. Avoiding unnecessary disruption matters.

A group of dissident shareholders is seeking to add themselves to the Board and replace half of Vaxart’s directors. These dissident nominees have claimed that Vaxart needs directors who bring stronger oversight and greater accountability. That is not our experience. And the dissident nominees are certainly not the people who will advance our programs, strengthen our partnerships or ensure Vaxart has the financial resources to achieve its goals in this environment.

We joined this Board because we believe in Vaxart’s mission and its potential. We are committed to taking the actions necessary and to holding management’s feet to the fire, so we can bring Vaxart’s important vaccines to market and create value for shareholders.

Join us in voting “FOR” ALL 6 of the Company’s highly qualified director nominees on the WHITE proxy card TODAY. Thank you for your continued support.

Sincerely,

James B. Breitmeyer, M.D., Ph.D., and Kevin P. Finney

Vote “FOR” ALL 6 of Vaxart’s highly qualified director nominees on the WHITE proxy card TODAY!

If you have questions or require assistance with voting your shares, please call Vaxart’s proxy solicitor:

Campaign Management, LLC
Toll-Free: +1 (855) 264-1527

Additional shareholder resources and voting information can be found at Vote.Vaxart.com.

About Vaxart

Vaxart is a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Vaxart vaccines are designed to be administered using pills that can be stored and shipped without refrigeration and eliminate the risk of needle-stick injury. Vaxart believes that its proprietary pill vaccine delivery platform is suitable to deliver recombinant vaccines, positioning the Company to develop oral versions of currently marketed vaccines and to design recombinant vaccines for new indications. Vaxart’s development programs currently include pill vaccines designed to protect against coronavirus, norovirus, and influenza, as well as a therapeutic vaccine for human papillomavirus (HPV), Vaxart’s first immune-oncology indication. Vaxart has filed broad domestic and international patent applications covering its proprietary technology and creations for oral vaccination using adenovirus and TLR3 agonists.

Cautionary Language Concerning Forward-Looking Statements

This communication contains 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, which are subject to the “safe harbor” provisions created by those sections, that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this communication regarding Vaxart’s strategy, prospects, plans and objectives, results from preclinical and clinical trials, commercialization agreements and licenses, and beliefs and expectations of management are forward-looking statements. These forward-looking statements may be accompanied by such words as “should,” “believe,” “could,” “potential,” “will,” “expected,” “anticipate,” “plan,” “target,” “seek,” “intend,” “may,” “predict,” “project,” “would,” and other words and terms of similar meaning. Examples of such statements include, but are not limited to, statements relating to Vaxart’s ability to develop and commercialize its product candidates, including its vaccine booster products; Vaxart’s expectations regarding clinical results and trial data, and the timing of receiving and reporting such clinical results and trial data; Vaxart’s expected timing for future clinical trials; and Vaxart’s expectations with respect to the effectiveness of its product candidates; expectations regarding collaborations, including the collaboration with Dynavax; expectations regarding the pursuit of strategic partnerships and external funding opportunities for Vaxart’s programs; expectations regarding government funding; and expectations regarding Vaxart’s capital resources and funded runway. Vaxart may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in the forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations, and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Vaxart makes, including uncertainties inherent in research and development, including the ability to meet anticipated clinical endpoints, commencement and/or completion dates for clinical trials, regulatory submission dates, regulatory approval dates, and/or launch dates, as well as the possibility of unfavorable new clinical data and further analyses of existing clinical data; the risk that clinical trial data are subject to differing interpretations and assessments by regulatory authorities; whether regulatory authorities will be satisfied with the design of and results from the clinical studies; decisions by regulatory authorities impacting labeling, manufacturing processes, and safety that could affect the availability or commercial potential of any product candidate, including the possibility that Vaxart’s product candidates may not be approved by the FDA or non-U.S. regulatory authorities; that, even if approved by the FDA or non-U.S. regulatory authorities, Vaxart’s product candidates may not achieve broad market acceptance; that a Vaxart collaborator may not attain development and commercial milestones; that Vaxart or its partners may experience manufacturing issues and delays due to events within, or outside of, Vaxart’s or its partners’ control; difficulties in production, particularly in scaling up initial production, including difficulties with production costs and yields, quality control, including stability of the product candidate and quality assurance testing, shortages of qualified personnel or key raw materials, and compliance with strictly enforced federal, state, and foreign regulations; that Vaxart may not be able to obtain, maintain, and enforce necessary patent and other intellectual property protection; that Vaxart’s capital resources may be inadequate; Vaxart’s ability to resolve pending legal matters; Vaxart’s ability to obtain sufficient capital to fund its operations on terms acceptable to Vaxart, if at all; the impact of government healthcare proposals and policies; competitive factors; and other risks and uncertainties described in the “Risk Factors” sections of Vaxart’s most recent Annual Report on Form 10-K, including amendments thereto, and Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. Vaxart undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Important Additional Information and Where to Find It

 Vaxart has filed a definitive proxy statement and form of white proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with its solicitation of proxies for the 2026 Annual Meeting of Stockholders (the “Annual Meeting”). Stockholders are able to obtain the Company’s proxy statement, any amendments or supplements to the proxy statement and other documents filed by the Company with the SEC at no charge at the SEC’s website at www.sec.gov. Copies are also available at no charge at the Company’s website at https://investors.vaxart.com/financials-filings/sec-filings.

Investor Contact

Michael Fein
Campaign Management
(855) 264-1527

Media Contact

Aaron Palash / Adam Pollack
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

Part 1 of this article compares RITM's recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 17 mREIT peers. Due to what has occurred during Q2 2026 (fluctuating rates/yields), understanding the composition of RITM's MSR/investment and derivatives portfolio is crucial in understanding current/future performance. My current RITM BV projection and updated price target is in the “Conclusions Drawn” section. RITM is currently deemed notably undervalued (strong buy recommendation).

In the latest close session, Sirius XM (SIRI - Free Report) was up +1.46% at $27.86. The stock outpaced the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.

Shares of the satellite radio company witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.7%, and the S&P 500's gain of 2.14%.

Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 36.84% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.14 billion, up 0.11% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.1 per share and a revenue of $8.56 billion, indicating changes of -2.82% and +0.02%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Sirius XM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sirius XM is currently a Zacks Rank #3 (Hold).

Investors should also note Sirius XM's current valuation metrics, including its Forward P/E ratio of 8.85. This valuation marks a discount compared to its industry average Forward P/E of 12.69.

It is also worth noting that SIRI currently has a PEG ratio of 0.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Broadcast Radio and Television was holding an average PEG ratio of 1.04 at yesterday's closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 45% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Published June 16, 2026 4:21pm EDT

The layoffs took effect Tuesday and follow multiple rounds of job cuts over the past year Elective vehicle-maker Rivian is laying off hundreds of workers in its service and customer organization.

A company spokesperson told FOX Business that the job cuts represent less than 2% of Rivian's workforce, which totaled about 15,200 employees at the end of 2025. Workers affected by the layoffs may apply for other open roles at the company.

"We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the spokesperson said.

AUTOMAKER GEARS UP FOR SELF-DRIVING FUTURE WITH NEW CHIP

Rivian began releasing R2 SUVs last week, which are a key part of its product roadmap. (Scott Olson/Getty Images)

The job cuts took effect on Tuesday and affected Rivian's service and customer division, which is responsible for sales and marketing duties, as the company looks to restructure its teams to grow efficiently while rolling out a new model.

The Wall Street Journal first reported the layoffs.

Rivian recently conducted multiple rounds of layoffs in the last year while it prepared for the launch of the R2 SUV, which factors heavily into the EV-maker's roadmap for future products.

RIVIAN CEO DISCUSSES TARIFFS, SAYS EV MAKER HAS 'VERY US-CENTRIC SUPPLY CHAIN'

Ticker Security Last Change Change % RIVN RIVIAN AUTOMOTIVE INC. 15.93 -0.75 -4.50% It cut over 600 jobs, or 4.5% of its workforce, in October amid softer demand for its vehicles following the expiration of EV tax credits in October.

The R2 officially debuted last week with a variant that had a larger number of optional add-ons for a starting price around $58,000 – while the automaker is planning to release more affordable versions in the future.

RIVIAN TO LAY OFF 10% OF SALARIED STAFF

Rivian also conducted layoffs last year following the expiration of EV tax credits. (Reuters/Kevin Krolicki/File Photo)

The company is hoping that the lower-cost model will broaden demand and strengthen its sales outlook as it strives for profitability.

Rivian has said that it no longer expects to meet its 2027 adjusted core profit target as it ramps up spending on research and development to accelerate its autonomous driving roadmap.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Reuters contributed to this report.

NEW YORK--(BUSINESS WIRE)--JetBlue (NASDAQ: JBLU) today announced the next evolution of its award-winning Mint® experience with the introduction of Kent Hospitality Group and its strategic partner, Four Clovers Hospitality Group, as JetBlue's new onboard culinary partners. The collaboration brings a fresh, sophisticated and distinctly New York approach to inflight dining, elevating JetBlue's premium business class experience with the creative forces behind some of the city's most coveted restau.

Key Takeaways Lam Research expects advanced packaging revenues to grow more than 50% in 2026.AI chips need advanced packaging to boost performance, bandwidth and power efficiency.Lam Research's Q3'26 revenues rose 24% year over year to a record $5.84 billion. Lam Research Corporation’s (LRCX - Free Report) advanced packaging business is emerging as an important growth driver. With artificial intelligence (AI) driving major changes in chip design, this business could become a meaningful catalyst for future growth.

Unlike traditional semiconductor manufacturing, AI chips require advanced packaging techniques to connect multiple processors and memory components in a compact structure. This improves performance, bandwidth and power efficiency. As a result, chipmakers are increasing investments in packaging technologies, creating additional demand for Lam Research’s etch and deposition equipment.

The company expects advanced packaging revenues to grow more than 50% in 2026, far outpacing many other semiconductor equipment categories. Lam Research is benefiting from rising adoption of high-bandwidth memory (HBM), AI accelerators and chiplet-based architectures, all of which depend heavily on advanced packaging processes.

The company’s overall business remains strong. In the fiscal third quarter of 2026, revenues increased 24% year over year to a record $5.84 billion, while non-GAAP gross margin expanded 90 basis points to 49.9%. Systems revenues climbed 24% to $3.73 billion, reflecting healthy demand across memory and foundry customers. Customer Support Business Group revenues also rose 25% to a record $2.11 billion, providing recurring revenue support.

The long-term opportunity for advanced packaging may be even larger. As AI models become more powerful, semiconductor companies are expected to rely increasingly on advanced packaging to overcome the limits of traditional chip scaling. This shift could expand Lam Research’s served market beyond conventional wafer processing. If the company executes well in this market, packaging could evolve from a niche business into a meaningful contributor to future revenue and earnings growth.

LRCX’s Rivals Are Also Targeting Packaging GrowthTwo major Lam Research competitors, Applied Materials, Inc. (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) , are also benefiting from the advanced packaging boom. Both companies are expanding their presence in technologies that support AI chips, high-bandwidth memory and chiplet-based architectures.

Applied Materials is perhaps the closest competitor to Lam Research in advanced packaging. The company has highlighted advanced packaging as a multibillion-dollar opportunity and continues to develop materials engineering solutions for 2.5D and 3D chip integration. In the last reported results for the second quarter of fiscal 2026, Applied Materials’ revenues increased 11% to $7.91 billion, with its Semiconductor Systems segment remaining the primary growth engine. Rising investments in AI accelerators and HBM are expected to drive further demand for its packaging-related tools.

KLA participates in the market through process control, inspection and metrology solutions. As advanced packages become more complex, chipmakers require additional inspection steps to improve yields and reduce defects. KLA’s second-quarter fiscal 2026 revenues increased 11.5% year over year to $3.42 billion. The company continues to benefit from growing demand for advanced packaging process control technologies. KLAC expects its semiconductor process control advanced packaging portfolio revenues to grow from about $635 million in 2025 to about $1 billion in 2026.

For Lam Research, the opportunity is significant, but competition is intense. Continued innovation in etch and deposition technologies will be critical if the company wants to capture a larger share of the rapidly expanding advanced packaging market.

LRCX’s Share Price Performance, Valuation and EstimatesShares of Lam Research have surged 127.2% year to date compared with the Zacks Electronics – Semiconductors industry’s rise of 52.5%.

Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Lam Research trades at a forward price-to-earnings ratio of 50.78, significantly higher than the industry’s average of 35.02.

Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 37.7% and 35.8%, respectively. Estimates for fiscal 2026 have been revised upward over the past seven days, while estimates for fiscal 2027 have been raised northward over the past 30 days.

Image Source: Zacks Investment Research

Lam Research currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On June 16, 2026, we present a discounted cash flow (DCF) analysis for CSX Corp CSX . The company has shown notable price performance, with a year-to-date increase of 31.6% and a one-year gain of 49.6%. Below are key points from our analysis:

DCF Earnings-based intrinsic value of $30.68 vs current price of $47.39 (margin of safety: -54.5%) DCF FCF-based intrinsic value of $26.64 vs current price (second opinion) GF Score™ of 86/100 indicating high reliability of the DCF inputs What Is CSX Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates CSX's intrinsic value based on its projected earnings growth over the next decade. The model operates in two stages: a growth phase followed by a terminal phase. Below are the assumptions used in the calculation:

Parameter Value Current EPS (TTM, excl. non-recurring) $1.70 10-Year Growth Rate 11.8% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that CSX's EPS will grow at an annual rate of 11.8% for the next 10 years, discounted at a rate of 11%. The value derived from this growth phase is $17.69 per share. In the second stage, we assume a terminal growth rate of 4% for the subsequent 10 years, also discounted at 11%, yielding a terminal value of $12.99 per share. The summary of the calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.8%, discounted at 11% $17.69 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $12.99 Intrinsic Value Growth + Terminal $30.68 With the current price of CSX at $47.39, the intrinsic value of $30.68 indicates that the stock is modestly overvalued, with a margin of safety of -54.5%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than free cash flow. For further details, you can visit the CSX DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for CSX is calculated at $26.64. When comparing this to the earnings-based intrinsic value of $30.68, both models suggest that CSX is modestly overvalued, with a margin of safety of -77.9%. This significant difference in intrinsic values highlights the importance of considering multiple valuation methods.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for CSX is calculated at $35.44, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that CSX is overvalued at its current price. For more information, visit the GF Value™ page.

What Does CSX's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021.

Metric Rating GF Score™ 86/100 Financial Strength 4/10 Profitability 9/10 Growth 8/10 Valuation 5/10 Momentum 10/10 CSX has a predictability rank of 1/5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the CSX stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as CSX, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect actual future performance.

What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—all suggest that CSX is currently overvalued. This conclusion is supported by the significant margins of safety observed in both DCF models.

For the full DCF analysis, visit the CSX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is CSX's intrinsic value based on DCF?

[Answer: earnings-based $30.68, FCF-based $26.64]

Is CSX overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for CSX?

[Answer using predictability rank 1/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways DELL fits the screen with 47.4% fiscal 2026 revenue growth and 26.4% long-term EPS growth.HPE targets 31.3% fiscal 2026 revenue growth, with a 32% long-term earnings growth rate.These stocks combine dividend growth histories with revenue and earnings growth potential. Wall Street rallied comfortably on June 15, 2026, with major indices like the Dow Jones Industrial Average hitting a record high, as global oil prices tumbled to a three-month low amid fresh hopes that a U.S.-Iran peace deal could end the ongoing energy supply crisis. 

However, the long-term viability of this investor optimism remains shrouded in uncertainty, considering Israel’s latest announcement to keep its defense force in Lebanon indefinitely. 

Against this backdrop, risk-averse investors may find that steady dividend-growth stocks offer a more balanced mix of income and stability than high-beta growth plays at this stage.

These dividend-growth stocks boast a consistent track record of raising payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a period in which the traditional growth narrative is being reassessed.

Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks. 

We have selected three dividend growth stocks — Dell Technologies (DELL - Free Report) , Hewlett Packard (HPE - Free Report) and Taiwan Semiconductor (TSM - Free Report) — that could be solid choices for your portfolio.

Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty, as well as broader market volatility. Their steadily rising payouts provide a measure of downside protection.

These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.

A consistent history of dividend growth underscores the potential for continued growth ahead.

Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.

5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.

5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.

5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.

Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.

Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.

Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments.

Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

These few criteria alone narrowed the universe from more than 7,700 stocks to just three.

Here are the three stocks that fit the bill:

Texas-based Dell Technologies is a leading provider of servers, storage, and persona computers. The company’s IT solutions support customers in traditional infrastructure and multi-cloud environments. The Zacks Consensus Estimate for DELL’s fiscal 2026 revenues suggests a year-over-year improvement of 47.4%. The stock boasts a long-term (three-to-five years) earnings growth rate of 26.40%. It has an annual dividend yield of 0.64%.

DELL currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Texas, Hewlett Packard is an enterprise-facing hardware and service business that focuses on servers, supercomputers, storage, networking and cloud services. The Zacks Consensus Estimate for HPE’s fiscal 2026 revenues suggests a year-over-year improvement of 31.3%. The stock boasts a long-term earnings growth rate of 32% and has an annual dividend yield of 1.18%.

HPE currently sports a Zacks Rank #1 and a Growth Score of B.

Taiwan-based Taiwan Semiconductor is the world's first dedicated semiconductor foundry. It manufactures integrated circuits for its customers based on their proprietary IC designs using its advanced production processes. The Zacks Consensus Estimate for TSM’s  2026 revenues suggests a year-over-year improvement of 32.2%. The stock boasts a long-term earnings growth rate of 22.4% and has an annual dividend yield of 0.71%.

TSM currently holds a Zacks Rank #2 and a Growth Score of A.  

Dell Technologies (NYSE: DELL) announces that its board of directors has declared a quarterly cash dividend of $0.63 per common share, which will be payable on July 31 to shareholders of record as of July 21.

About Dell Technologies

Dell Technologies NYSE:DELL helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.

Copyright © 2026 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260616188737/en/

The logo of EssilorLuxottica is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025.... Purchase Licensing Rights, opens new tab Read more

CompaniesJune 16 (Reuters) - EssilorLuxottica (ESLX.PA), opens new tab, the world's largest ​eyewear maker, has signed a long-term ‌deal with chipmaking equipment company Applied Materials (AMAT.O), opens new tab to develop augmented reality display technology and AI ​glasses, the companies said on Tuesday.

Here ​are some details:

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

EssilorLuxottica and Applied Materials will ⁠scale up commercialisation of AI glasses

Research ​and development will focus on advanced optical ​technologies

EssilorLuxottica already leads the AI-glasses market through a long-term partnership with Meta (META.O), opens new tab to sell smart glasses under ​the Ray-Ban and Oakley brands

Their first ​device with a built-in display, the Ray-Ban Meta Display, was ‌launched ⁠in 2025

AI-powered glasses embed a camera, microphone and speakers into a conventional frame, with an AI voice assistant that answers ​questions and ​describes surroundings

Augmented ⁠reality, which overlays digital images onto the user's field of ​vision, is a far more complex ​optical ⁠challenge

California-based Applied Materials makes the specialised equipment used to engineer the ultra-thin material ⁠layers ​at the heart of semiconductor ​chips needed for AR displays

Reporting by Gianluca Lo Nostro; ​Editing by Emelia Sithole-Matarise and Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Zoetis Inc. (NYSE: ZTS).

Shareholders who purchased shares of ZTS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.

CONTACT US HERE:

https://securitiesclasslaw.com/securities/zoetis-inc-loss-submission-form-2/?id=188276&from=4

CLASS PERIOD: January 14, 2025 to May 6, 2026

ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (ii) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (iii) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.

DEADLINE: July 27, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/zoetis-inc-loss-submission-form-2/?id=188276&from=4

NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of ZTS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 27, 2026. There is no cost or obligation to you to participate in this case.

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903

SOURCE The Gross Law Firm

NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Zoetis Inc. (“Zoetis” or the “Company”) (NYSE: ZTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

The class action concerns whether Zoetis and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

You have until July 27, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Zoetis securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.   

[Click here for information about joining the class action]  

On May 7, 2026, Zoetis reported financial results for the first quarter of 2026.  Among other items, Zoetis reported net income of $601 million, flat year over year, and cut its full year 2026 profit guidance to between $6.85 and $7 a share, down from prior guidance of $7.00 to $7.10 a share.  In the earnings release, CEO Kristin Peck said that “the first quarter unfolded in a more challenging operating environment than we anticipated. Pet owners demonstrated increased price sensitivity, resulting in a decline in veterinary visits and softer demand[.]” 

On this news, Zoetis’s stock price fell $23.91 per share, or 21.5%, to close at $87.31 per share on May 7, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT: 
Danielle Peyton 
Pomerantz LLP 
[email protected] 
646-581-9980 ext. 7980 

On June 16, 2026, we present a discounted cash flow (DCF) analysis for Elevance Health Inc ELV . The stock has shown a price performance of -3.5% over the past week, +2.8% over the past month, +15.8% year-to-date, and +6.7% over the past year.

DCF Earnings-based intrinsic value of $643.27 vs current price of $401.89 (margin of safety: 37.5%) DCF FCF-based intrinsic value of $396.80 vs current price (second opinion: fair valued with -1.3% margin of safety) GF Score™ of 90/100 indicating high reliability of the DCF inputs What Is ELV Worth? DCF Earnings-Based Model The DCF earnings-based model for Elevance Health Inc ELV utilizes a two-stage approach, where we first project earnings growth for the initial 10 years, followed by a terminal growth phase. The current EPS, excluding non-recurring items, is $30.78, and we anticipate a growth rate of 14.0% over the next decade. The discount rate applied is 11%, which combines a risk-free rate of 5% and an equity risk premium of 6%.

Parameter Value Current EPS (TTM, excl. non-recurring) $30.78 10-Year Growth Rate 14.0% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we expect EPS to grow at 14.0% annually for 10 years, resulting in a growth stage value of $357.47 per share. In the second stage, we apply a terminal growth rate of 4% for the next 10 years, yielding a terminal stage value of $285.80 per share. The intrinsic value is calculated by summing both stages:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 14.0%, discounted at 11% $357.47 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $285.80 Intrinsic Value Growth + Terminal $643.27 With the current price at $401.89, the intrinsic value of $643.27 indicates that the stock is significantly undervalued, with a margin of safety of 37.5%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the ELV DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Elevance Health Inc is calculated at $396.80. When compared to the earnings-based intrinsic value of $643.27, the FCF model suggests a different perspective, indicating that the stock is fair valued with a margin of safety of -1.3%. This divergence highlights the importance of considering multiple valuation methods when assessing a stock's worth.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Elevance Health Inc is calculated at $508.90, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. In this case, while the DCF earnings model suggests significant undervaluation, the FCF model indicates fair valuation, and GF Value™ falls in between, suggesting that all three models present a nuanced view of ELV's valuation. For more information, visit the GF Value™ page.

What Does ELV's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtested data from 2006 to 2021.

Metric Rating GF Score™ 90/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 8/10 With a predictability rank of 2 out of 5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the ELV stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Elevance Health Inc, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a mixed picture for Elevance Health Inc. The DCF earnings model suggests the stock is significantly undervalued, while the FCF model indicates it is fair valued. The GF Value™ falls in between these assessments. Overall, investors should consider the varying perspectives before making investment decisions. For the full DCF analysis, visit the ELV DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is ELV's intrinsic value based on DCF?

According to our analysis, the earnings-based intrinsic value is $643.28, while the FCF-based intrinsic value is $396.80.

Is ELV overvalued or undervalued?

The DCF earnings model suggests that ELV is undervalued, while the FCF model indicates it is fair valued. The GF Value™ also provides a mixed perspective.

How reliable is the DCF model for ELV?

With a predictability rank of 2 out of 5 stars, the DCF model's reliability for ELV is considered lower.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

© Stockcrafterpro / Shutterstock.com

Western Digital (NASDAQ:WDC | WDC Price Prediction) stock is up 7% in Tuesday morning trading, changing hands near $701 and setting a fresh all-time high. The catalyst is a Morgan Stanley note that reiterated an Overweight rating and lifted its WDC price target by 33%.

The upgrade extends a powerful run. Western Digital stock closed Monday up 16.1% at $653.53, a third straight up day with a Monday intraday high of $658.80.

Seagate Technology (NASDAQ:STX) stock is participating, up 5% to around $1,072 in the early Tuesday hours. SanDisk (NASDAQ:SNDK) and Micron Technology (NASDAQ:MU) shares are also rising modestly, each up 1% as the AI storage trade broadens across the complex.

Morgan Stanley’s 33% Price-Target Hike Lights the Fuse Morgan Stanley raised its Western Digital stock price target to $650 from $488, framing the company’s dual-tracked UltraSMR and HAMR roadmap as undervalued by investors. The bank described HAMR as a source of reliability and strength rather than a technology gap versus peers.

The firm also lifted its per-share earnings estimates for Western Digital to $22.40 for next year and $43.47 for 2028. Morgan Stanley argued Western Digital stock could double next year if its bull-case pricing assumptions play out.

The note lands on top of unusually strong fundamentals. Western Digital reported Q3 FY2026 revenue of $3.34 billion, up 46% year over year (YoY), with non-GAAP gross margin crossing 50% for the first time. Moreover, Western Digital’s management raised the company’s dividend by 20% to $0.15 per share.

Seagate Gains 5% as the AI Storage Trade Broadens Seagate stock is riding the same tailwind. Morgan Stanley separately raised its STX price target to $1,035 from $767 on June 15, while Mizuho and Citi pushed their targets to $1,090 and $1,150, respectively.

The fundamentals back the optimism. Seagate posted Q3 FY2026 non-GAAP revenue of $3.11 billion, up 44% YoY, with free cash flow of $953 million and the data center segment accounting for 80% of total revenue.

CEO Dave Mosley asserted that “Seagate is entering a new era of structural growth as AI applications amplify data creation.” HAMR-based Mozaic drives sit at the center of that thesis, and the analyst community is leaning in.

Super-cycle or Bubble? The Debate Heats Up The community is split. The bulls point to a memory and storage super-cycle in motion: SanDisk’s datacenter segment jumped 645% YoY to $1.47 billion last quarter, and Micron just guided Q3 revenue to $33.5 billion with non-GAAP gross margin near 81%.

The bears counter that valuations have re-rated very quickly. Western Digital stock now trades at a P/E ratio of 39x with a 50-day moving average of $456.29, and the company’s prediction-markets dashboard flags insider net direction as selling. Seagate insiders have also trimmed their positions in recent weeks.

Wall Street still skews bullish. Western Digital stock carries 21 Buy ratings against 3 Holds and 1 Sell, and Seagate stock shows a similar split with an analyst consensus target of $885.91. Reddit chatter on the storage complex registered a very bullish sentiment score of 88 on Monday.

What to Watch Investors can watch for whether Western Digital stock holds above $700. Follow-on analyst notes and any Computex 2026 commentary could keep momentum traders active through the afternoon.

Micron’s upcoming earnings print is the next major data point on the calendar. A confirming beat could reinforce the super-cycle narrative, while any guide-down may give bears the opening they’ve been looking for across WDC, STX, and other memory/storage stocks like Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK).

Western Digital WDC shares have been an immensely lucrative investment in 2026, currently up 250% year-to-date on insatiable demand for AI data center storage and a sold-out HDD inventory.

But discipline is the cornerstone of successful investing; while the hardware boom paints a “rosy” macro picture, a look under the hood suggests the WDC rally may have decoupled from reality.

There are reasons to believe that Western Digital stock is poised for a near-term pullback, which makes now the perfect time to take profit.

At the time of writing, Western Digital stock is trading at a rather stretched forward price-to-earnings (P/E) multiple of more than 58x.

Investors use P/E multiples to assess a company’s valuation relative to its expected future earnings, and with the rise of online trading platforms, tracking these metrics has become much more accessible.

For context, WDC stock currently trades at a significantly higher earnings multiple than AI giant Nvidia, which commands a far more reasonable forward P/E of around 24x.

And that’s when Nvidia controls the higher-margin compute layer of the AI revolution, while WDC plays in the lower-margin storage hardware space.

So, Western Digital is essentially making you pay a premium that heavily outstrips the core engine of AI growth—and that’s a fundamental mismatch.

Investors should note that at the current valuation, options pricing is beginning to turn more dovish on Western Digital shares as well.

According to Barchart, the put-to-call ratio on contracts expiring late July sits at 1.92 currently – indicating a strong bearish skew.

And the lower price on those contracts is set at about $617 at writing, signaling potential for over 10% decline in WDC over the next four-to-six weeks.

Crucially, this bearish sentiment is echoed in technicals. Western Digital’s relative strength index (RSI) has already climbed into the early 70s, indicating “overbought” conditions.

Such a technical setup often triggers algorithmic selling in the near-term.

The stock market is a game of expectations, and right now, Western Digital has absolutely no room for error.

With WDC stock hovering around $700, the market seems to have pulled years of “future growth” into the present.

Disciplined investors should note that cyclical hardware demand can cool just as quickly as it heats up, and any future supply chain normalization or capital expenditure slowdown from big tech may trigger a massive correction.

Western Digital has handed investors a life-changing 200% return in a matter of months – but pigs get fat, hogs get slaughtered. So, it may now be time to lock in those spectacular gains and exit the position.

Investors should also note that analysts—while maintaining their “Strong Buy” rating on WDC – have the highest price target set at $685 currently.

This means the AI infrastructure stock is already trading above the most ambitious Wall Street estimate.

Yum Brands on Tuesday announced it is selling Pizza Hut to private equity firm LongRange Capital for roughly $1.5 billion.

The deal excludes the pizza chain's locations in mainland China; Yum China will acquire those in a separate transaction for about $1.2 billion.

The deals cap off years of struggles for Pizza Hut, which has weighed on Yum's overall financial performance. In the U.S., the pizza chain has transitioned from the sit-down format and salad bars of yore to focus on delivery and carryout — far behind the curve. Rival Domino's Pizza has gobbled up market share from Pizza Hut for years; third-party delivery apps like DoorDash have further stolen sales from the chain.

Shares of Yum were up nearly 2% in morning trading Tuesday.

In November, Yum said it was exploring strategic options for Pizza Hut. On Tuesday, the company said its leadership team and board determined that selling Pizza Hut would provide "the strongest path" to maximize shareholder value and give the pizza chain an ownership structure "tailored to its distinct markets, competitive strengths and long-term priorities."

Across both deals, Yum expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments and fees, excluding a possible earnout of $75 million by 2030 from LongRange. Yum also anticipates one-time expenses of about $85 million during the rest of 2026 tied to the transactions.

The company's management will provide more details about the financial impact of the transactions during Yum's second-quarter conference call on July 30. Yum expects the sales to close in the third quarter, subject to regulatory approval.

Brothers Dan and Frank Carney founded Pizza Hut in 1958 in Wichita, Kansas. A year later, they were franchising the concept.

In 1969, Pizza Hut went public. Just two years later, it was the biggest pizza chain in the world, although it lost that title in 2017 to Domino's.

The deal severs Pizza Hut's decades-long ties to Taco Bell and KFC, its sister brands in Yum's portfolio.

PepsiCo bought Pizza Hut in 1977, marking the beverage giant's entry into the restaurant business. By 1986, it also owned Taco Bell and KFC. When Pepsi spun off its restaurant unit in 1997, the holding company was dubbed Tricon Global Restaurants — later renamed to Yum.

At the end of 2025, Pizza Hut had nearly 20,000 locations across 108 countries and territories and reported $12.8 billion in annual system sales, according to regulatory filings from Yum. The U.S. is its biggest market, representing about 40% of its system sales, followed by China with roughly 20% of its system sales.

Correction: The headline was updated to reflect that the $2.7 billion sale value includes deals with both LongRange Capital and Yum China.

SummaryCompaniesYum China will buy the mainland China business for $1.2 billionLongRange Capital will acquire the rest of Pizza Hut for $1.5 billionUnlike the US business, the China business has been doing wellJune 17 (Reuters) - Yum Brands (YUM.N), opens new tab said ​on Tuesday it would sell its Pizza Hut chain for a combined $2.7 billion in two deals that highlight separate trajectories ‌for its business in China and the rest of the world.

The chain's stores in the U.S. and the rest of the world except for mainland China will be sold to private equity firm LongRange Capital for $1.5 billion.

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Those operations, which encompass over 15,500 restaurants in more than 100 countries, have struggled in recent years, hit by rising inflation, higher ​commodity costs and the growing use of GLP-1 weight-loss drugs, which has nudged consumers toward healthier options. U.S. Pizza Hut comparable store ​sales have declined for 10 straight quarters.

The China business, which has 4,375 stores but has been doing much better, ⁠will be acquired by its longtime operator Yum China Holdings (9987.HK), opens new tab for $1.2 billion.

"LongRange Capital is effectively buying a globally recognised brand in need of sharper focus, ​while Yum China's move gives local operators more control over a key market," said Sam North, market analyst at eToro.

Yum said last year it was ​exploring strategic options for Pizza Hut and entered exclusive talks with LongRange in May.

Pizza Hut was acquired by PepsiCo (PEP.O), opens new tab in 1977 and spun off in 1997 alongside KFC and Taco Bell to form the company that became Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to close in the third quarter of ​2026, pending regulatory approvals.

Item 1 of 2 A security guard stands in front of a Pizza Hut fast food restaurant in Abidjan, Ivory Coast October 5, 2024. REUTERS/Luc Gnago/File Photo

[1/2]A security guard stands in front of a Pizza Hut fast food restaurant in Abidjan, Ivory Coast October 5, 2024. REUTERS/Luc Gnago/File Photo Purchase Licensing Rights, opens new tab

LOCAL OPERATORS TAKE CHARGEThe acquisition of the Pizza Hut brand in China by Yum China underscores the company's optimism about the ​chain's future in the world's second-biggest economy, said China-based independent food industry analyst Zhu Danpeng.

"From store expansion to growth in revenue and profit per store, as well as ‌an increase ⁠in its customer fan base, it is evident that after localisation, Yum China has strengthened its core competitiveness for sustainable development," he said.

Yum China, a spinoff of Yum Brands and which counts private equity firm Primavera Capital and Jack Ma's Ant Group as its main backers, has invested in China-specific products such as black truffle Yunnan mushroom pizza, new store formats and more affordable menu items aimed at cost-conscious consumers.

As a result, Pizza Hut has become the ​largest casual dining restaurant brand in ​China. It added 207 net ⁠new stores in the first quarter and plans to expand to more than 6,000 outlets by 2028. Last year, sales for the chain in China increased 4%. Operating profit jumped 19% and its operating profit margin of 7.9% was ​the highest since 2016.

The sale of the China business mirrors a broader trend of U.S. firms handing control ​to local operators to ⁠navigate tougher competition and shifting demand.

General Mills (GIS.N), opens new tab this month agreed to sell its Haagen-Dazs shops in mainland China to a group led by tea chain Ningji, while Starbucks (SBUX.O), opens new tab sold a majority stake in its China operations to Boyu Capital last year.

Yum Brands and Yum China also agreed to financial incentives tied to KFC China's ⁠growth and will ​collaborate on expanding Taco Bell in mainland China.

Shares of Yum Brands, which also announced ​an additional $4 billion share buyback, rose about 2% on Tuesday. Yum China shares slipped 2% in Wednesday Hong Kong trade.

Reporting by Neil J Kanatt and Koyena Das in Bengaluru and by ​Sophie Yu in Beijing and Kane Wu in Hong Kong; Additional reporting by Casey Hall in Shanghai; Editing by Devika Syamnath, Miyoung Kim and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Kane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.

Yum Brands announced on Tuesday that it is selling Pizza Hut to private equity firm LongRange Capital for $2.7 billion, completing a strategic review of the iconic pizza chain and enabling the company to focus on faster-growing brands likeTaco Bell and KFC.

The transaction would mark a significant shift for one of America's most recognizable pizza chains and underscores growing consolidation across the restaurant industry as operators navigate slowing consumer demand and higher costs.

Under the transaction, LongRange Capital will acquire Pizza Hut's operations outside mainland China for approximately $1.5 billion, while Yum China will purchase the chain's mainland China business for roughly $1.2 billion.

A Pizza Hut restaurant in New York. (Michael Nagle/Bloomberg via Getty Images)

The deal marks a major reshaping of one of the world's largest restaurant companies. After the sale closes, Yum will focus on KFC, Taco Bell and Habit Burger & Grill and will no longer report Pizza Hut as a separate division.

KFC ADDS NEW MENU ITEMS, UPDATES LOGO AS PART OF GLOBAL BRAND REFRESH

Ticker Security Last Change Change % YUM YUM! BRANDS INC. 157.67 +3.00 +1.94% Pizza Hut generated approximately 12% of Yum's revenue in 2025 but reported declining U.S. comparable sales for 10 consecutive quarters, underscoring the difficulties the brand faced in a highly competitive pizza market.

"This transaction enables Yum! to be a more focused company," CEO Chris Turner said in a statement. "The deal will allow Yum to leverage its scale, technology and talent to drive future growth."

The Pizza Hut logo is seen on a street in Warsaw, Poland, on November 28, 2025. (Klaudia Radecka/NurPhoto via Getty Images)

Yum said it expects to receive about $2.3 billion in net proceeds after taxes, fees and other transaction-related adjustments. The company's board also approved an additional $4 billion share repurchase authorization, signaling that a significant portion of the proceeds could be returned to shareholders.

MAJOR CARL'S JR OPERATOR REPORTEDLY SET TO SHUTTER, SELL DOZENS OF CALIFORNIA LOCATIONS

In China, the deal deepens Yum China's commitment to the business. The company, which already operates KFC and Pizza Hut restaurants in the country, agreed to acquire the mainland China business while also accepting new growth incentives tied to KFC China's future sales performance.

A Pizza Hut is located on Citrus Avenue in Azusa, California, on Monday, April 1, 2024. (Robert Gauthier/Los Angeles Times via Getty Images)

The transaction underscores a broader trend of established restaurant companies reshaping brand portfolios in an effort to improve performance and unlock shareholder value.

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The transactions are expected to close in the third quarter, subject to regulatory approvals and customary closing conditions.

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Yum! Brands Inc (NYSE:YUM) announced on Tuesday that it has entered into definitive agreements to sell Pizza Hut for a combined value of approximately $2.7 billion, as the restaurant operator sharpens its focus on its remaining brands, which include KFC and Taco Bell, and capital allocation priorities.

Under the agreements, private equity firm LongRange Capital will acquire Pizza Hut operations outside Mainland China for about $1.5 billion, while Yum China Holdings (NYSE: YUMC) will purchase Pizza Hut China for approximately $1.2 billion.

The transactions are subject to customary closing conditions and regulatory approvals and are expected to close in the third quarter of 2026.

The sale follows a strategic review of Pizza Hut that began in November 2025. Yum! said its leadership team and board concluded that separate ownership structures would provide the best path for the pizza chain's future growth while maximizing value for shareholders.

“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders,” Yum! CEO Chris Turner said in a statement.

Turner added that Pizza Hut would be positioned for future growth under owners with restaurant industry expertise and described the brand as one of the most iconic restaurant chains in the world.

As part of the transaction with LongRange, Yum! may receive an additional earn-out payment of up to $75 million by 2030. Excluding that potential payment, the company expects to receive approximately $2.3 billion in net proceeds after taxes, closing adjustments and transaction-related fees.

Yum! said it expects to incur about $85 million in one-time expenses during the remainder of 2026 related to separating the business.

The company will continue providing its proprietary Byte by Yum! technology platform to Pizza Hut Ex-China and will also offer certain corporate services under a transition agreement to support the separation process.

Yum! and Yum China said they will maintain their partnership following the transaction. The companies agreed to financial incentives tied to future growth in KFC China's system sales and will continue collaborating on long-term expansion plans for Taco Bell in Mainland China.

Alongside the sale announcement, Yum!'s board authorized an additional $4 billion share repurchase program. The company said the net proceeds from the transactions will be used in line with its capital allocation strategy, including investments in the business and returning excess capital to shareholders.

Yum! plans to provide additional details regarding the financial impact of the sale and any updates to its 2026 outlook during its second-quarter earnings conference call on July 30.

Shares of Yum! traded up 2.5% on the news.