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New facility strengthens Western New York manufacturing, supports critical military aircraft programs, and expands opportunities for the next generation

EAST AURORA, N.Y.--(BUSINESS WIRE)--Moog Inc. (NYSE: MOG.A and MOG.B) today celebrated the opening of its new Advanced Integrated Manufacturing (AIM) facility while marking the company's 75th anniversary, highlighting a continued commitment to Western New York through advanced manufacturing investments, workforce development, economic growth, and STEM education.

"Today's celebration is about more than opening a building," said Pat Roche, President & CEO of Moog Inc. "It reflects our confidence in Western New York, our employees, and the future of advanced manufacturing."

Share Company leaders, elected officials, community partners, and employees gathered for a ribbon-cutting ceremony and facility tour showcasing the new 150,000-square-foot manufacturing center, a $150 million investment designed to increase production capabilities, create a more efficient work environment, and strengthen the U.S. defense manufacturing industry in the region.

The AIM facility provides nearly 50 percent more space than the operation it replaces and features advanced machining, automation, robotics and inspection technologies that will help improve efficiency, quality, safety, and product flow while supporting critical military aircraft programs.

“Today's celebration is about more than opening a building," said Pat Roche, President & CEO of Moog Inc. "It reflects our confidence in Western New York, our employees, and the future of advanced manufacturing. Moog began as a small, engineer-led startup in 1951 by Bill Moog and has grown into a global leader in advanced motion control over the past 75 years. AIM is part of a broader commitment we've made across Western New York, to continue to develop critical technologies, creating high-quality jobs, and supporting our customers for generations to come."

Moog employs more than 4,300 people in Western New York, making it the company's largest global location and one of the largest advanced manufacturing and engineering employers in the region. Approximately 30 percent of Moog's global workforce is based here. Last year alone, the company provided nearly a half billion dollars in local wages, spent approximately $40 million with more than 200 Western New York suppliers, and contributed nearly $1 million to local non-for-profit/community organizations.

The new AIM facility is part of more than $300 million Moog has invested in Western New York over the last five years. Recent projects include the expansion of the company's Space Actuation and Avionics operations in East Aurora, into a 120,000-square-foot center for the development, production, and testing of precision actuation and avionics systems for launch vehicles, spacecraft, and defense applications, as well as a new propulsion clean room in Niagara Falls that will increase production capacity by more than 80 percent to support growing demand for satellite and missile propulsion technologies. Last year, Moog opened a 13,000-square-foot Operations Training Center that provides hands-on training and career development paths, ensuring the advanced manufacturing workforce can meet the growing manufacturing demand.

Speaking to attendees, company leaders emphasized how continued investments in facilities, technology, and workforce development are helping strengthen both the regional economy and the nation's aerospace and defense industrial base.

"Western New York has played a crucial role in Moog's success since our founding in 1951," said Mark Graczyk, President of Moog Military Aircraft. "The AIM facility brings together people, process and technology in a way that strengthens our ability to deliver high-quality, safety-critical products while creating a safer, more efficient environment for our employees."

Over the next several years, nearly 1,500 parts will transition into the AIM facility, beginning with some of the company's highest-volume products. The facility will support current military aircraft programs while providing flexibility for future growth and next-generation technologies.

As part of the celebration, Moog also reflected on its longstanding impact on the region and announced a new STEM education initiative in honor of its 75th anniversary.

The company unveiled a commitment to fund 75 STEM scholarships of $1,951 each, recognizing the year Moog was founded. The scholarships will be administered through four Western New York organizations: Buffalo Prep, Dream It Do It Western New York, Northland Workforce Training Center and Say Yes Buffalo.

"Investing in future innovators is one of the most meaningful ways we can celebrate this milestone," Roche said. "Our success has always depended on talented people, and these scholarships will help create opportunities for the next generation of engineers, technicians and problem-solvers."

Representing the Moog founding family, Nancy Aubrecht, daughter of founder Bill Moog, joined the event to reflect on the company's legacy and its enduring commitment to innovation, people and community impact.

During the program, Moog also recognized multi-generational employee families whose connections to the company span decades, highlighting the role the company has played in creating long-term career opportunities throughout the region and a great place to work.

Government and Community Leader Remarks

Governor Kathy Hochul said:
“For 75 years, Moog has stood as a crown jewel of New York manufacturing, transforming Western New York into a global hub for aerospace and technological innovation,” said Governor Hochul. “From its humble beginnings in an East Aurora hangar to its modern role shaping precision motion-control systems, Moog’s legacy is proof that when we invest in New York ingenuity and high-tech manufacturing, it results in good-paying jobs for our communities.”

U.S. Representative Nick Langworthy said:
"Moog is one of the great Western New York success stories, who for the last 75 years, has been pushing the boundaries of innovation while creating excellent paying careers and strengthening our manufacturing base," said Congressman Nick Langworthy. "The investment in this new AIM facility shows that the next 75 years can be just as successful as the first. I am proud to represent the thousands of Moog employees across Western New York who come to work every day designing and building technologies that keep our country safe, advance American innovation, and compete on a global stage. I look forward to seeing all that Moog will continue to accomplish right here in Western New York.”

U.S. Representative Tim Kennedy said:
"For 75 years, Moog has been a symbol of what Western New York does best: innovate, build, and never stop pushing the boundaries of what's possible," said Congressman Tim Kennedy (NY-26). "From its roots in a small East Aurora hangar to a global leader in aerospace and defense technology with operations right here in Buffalo, Moog has created and sustained thousands of good-paying jobs while proving that world-class engineering can call Western New York home. I'm proud to congratulate Moog on this milestone, and I'll keep supporting the workers and innovators who make this company, and our region, so special.”

U.S. Representative Claudia Tenney said:
“For 75 years, Moog has shown what American innovation and a world class workforce can accomplish right here in Western New York,” said Congresswoman Claudia Tenney. “This new advanced manufacturing facility builds on that legacy by strengthening our defense industrial base, supporting good paying American jobs, and ensuring our servicemembers have access to the cutting-edge technologies they need. Moog’s continued investment in Western New York, its workforce, and the next generation of innovators will help keep our region and our nation at the forefront of advanced manufacturing for years to come.”

About Moog Inc.
Moog is a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems. Moog's products and technologies support aerospace, defense, space, industrial and medical applications around the world. Founded in 1951, the company maintains a significant presence in Western New York, where it continues to invest in innovation, advanced manufacturing and workforce development.

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Key Takeaways MP Materials' first-half revenues jumped 68%, fueled by higher NdPr sales, pricing and production.The Magnetics segment added $37.6 million in first-half revenues as precursor production ramped.MP Materials is expanding Independence and launching its 10X facility to support future growth. MP Materials (MP - Free Report) reported an 89% year-over-year surge in second-quarter 2026 revenues to $108.5 million, bringing first-half revenues to $199 million. Compared with the first half of 2025, this represents a 68% increase. 

The strong performance was attributed to higher revenues in the Materials segment, supported by the continued ramp-up in production and sales of separated rare earth products, as well as higher market prices. Increased revenues from magnetic precursor products reflecting the ramp-up at the Magnetics segment also contributed to growth.

MP Materials also benefited from $17.58 million in income related to a price protection agreement (PPA) with the Department of War (DoW) in the second quarter. For the first half of 2026, PPA-related income totaled $59.8 million.
The robust performance reflects the company’s continued shift toward higher-value neodymium-praseodymium (NdPr) products. MP Materials produced 1,757 metric tons of NdPr in the first half of 2026, up 51% year over year, while NdPr sales jumped 122% to 2,012 metric tons.

The company reported no rare earth oxide (REO) concentrate sales during the period, following its decision to cease sales into the Chinese market in July 2025. Instead, MP Materials is processing the concentrate into separated rare earth products or stockpiling it for future use.

Despite the absence of concentrate sales, the Materials segment generated approximately $168 million in first-half revenues, up 80% year over year, driven by higher NdPr sales volumes and pricing.

The Magnetics segment is also becoming an increasingly important revenue contributor. It generated $37.6 million in revenues during the first half of 2026, supported by increased production of magnetic precursor products at the Independence facility.

Under its long-term supply agreement with General Motors (GM - Free Report) , MP Materials has collected all required prepayments totaling $150 million for magnetic precursor products. As of June 30, 2026, the company had sold $104.5 million of these products to General Motors, leaving $45.5 million to be transferred, which is expected within one year.

Once this agreement is fulfilled, MP Materials does not expect additional magnetic precursor product sales to GM. Instead, the company plans to begin selling finished magnets to General Motors. 

Looking ahead, several initiatives could support MP Material’s future revenue growth. The company is advancing key growth initiatives, such as expanding operations at Independence and breaking ground on the 10X magnetics facility, its second domestic rare earth magnet manufacturing facility. Meanwhile, scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass.

Among industry peers, Lynas Rare Earths (LYSDY - Free Report) also delivered strong revenue growth. Fourth-quarter fiscal 2026 revenues, for the quarter ended June 30, 2026, jumped 70% year over year to AUD 288.9 million ($204.9 million), marking the company’s highest quarterly revenues since the fourth quarter of fiscal 2022. Growth was driven by higher NdPr prices and increased sales volumes of total REO products.

Lynas Rare Earth reported NdPr production of 1,857 tons, a decline of 11% year over year. The company also produced 19 tons of dysprosium and terbium during the quarter. Total REO production for the quarter reached 3,481 tons, up 8% from the prior-year period. 

Following its first production of samarium oxide in March 2026, Lynas has seen strong customer demand, with the customer qualification process now underway. The company expects to fulfill its first customer orders in the first quarter of fiscal 2027.

MP’s Price Performance, Valuation & EstimatesMP Materials’ shares have declined 19.9% in a year against the industry’s 40.7% growth.

Image Source: Zacks Investment Research

MP is trading at a forward 12-month price/sales multiple of 14.98X, a significant premium to the industry’s 1.42X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MP Materials’ 2026 revenues indicates a 102% increase year over year. The consensus estimate for 2026 earnings is currently pegged at 16 cents per share, suggesting a solid improvement from the loss of 24 cents reported in 2025. 

The consensus estimate for MP’s 2027 revenues suggests year-over-year growth of 72%, with earnings expected to surge 494%.

Image Source: Zacks Investment Research

The estimate for both 2026 and 2027 has, however, moved down in the past 60 days, as shown in the chart below.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Tidewater Midstream and Infrastructure TSE: TWM raised its 2026 adjusted EBITDA outlook after reporting record second-quarter consolidated adjusted EBITDA, supported by strong refining and renewable diesel market conditions, higher facility utilization and debt reduction.

During a joint second-quarter call with Tidewater Renewables, CEO Jeremy Baines said the company’s Prince George Refinery and HDRD renewable diesel complex benefited from favorable fuel markets, while management continued to advance a sustainable aviation fuel project toward a potential final investment decision in the fourth quarter.

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Record EBITDA and Higher Guidance
CFO Ian Quartly said Tidewater’s consolidated adjusted EBITDA reached a quarterly record of C$88.9 million in the second quarter, up C$39.2 million from the first quarter of 2026.

Tidewater Renewables generated record adjusted EBITDA of C$56 million. Quartly said the result reflected above-nameplate operation at the HDRD complex, improving market pricing and offtake contracts indexed to U.S. import-pricing benchmarks. The result included C$7.7 million of expected Biofuel Production Incentive proceeds recognized in the quarter and C$7.7 million of adjusted EBITDA from the company’s equity investment in a cattle company, primarily reflecting higher cattle prices.

Tidewater Midstream generated deconsolidated adjusted EBITDA of C$32.9 million, an increase of C$7.3 million from the first quarter. Quartly attributed the improvement primarily to stronger crack spreads at the Prince George Refinery, partly offset by realized losses on crack-spread hedges.

The company increased its 2026 consolidated adjusted EBITDA guidance to between C$230 million and C$250 million, representing a 20% increase at the midpoint from its prior outlook. Tidewater Renewables increased its guidance to C$130 million to C$140 million, while Tidewater Midstream raised its deconsolidated adjusted EBITDA guidance to C$100 million to C$110 million.

Management cited higher facility utilization, sustained strength in forward crack spreads, and improved renewable diesel and emissions-credit pricing as the main drivers of the higher outlook. Forecast capital expenditures remained unchanged at C$2 million to C$3 million for Tidewater Renewables and C$20 million to C$25 million for Tidewater Midstream on a consolidated basis.

Refining and Renewable Diesel Operations
The HDRD complex processed a record average of 3,315 barrels per day during the second quarter, or 111% utilization, Baines said. Low-cost debottlenecking work and facility reliability enabled the complex to operate above nameplate capacity. The company also realized record margins on renewable diesel sold at U.S. import-parity pricing and captured an additional C$0.16 per liter from the Biofuel Production Incentive.

Natural Resources Canada conditionally approved Tidewater Renewables for the Biofuel Production Incentive program during the first quarter. The contribution agreement was executed July 7, securing funding aligned with the HDRD complex’s full annual production capacity. Baines said the company expects to receive C$13.8 million in first- and second-quarter cash contributions during the third quarter, followed by quarterly payments in arrears.

At the Prince George Refinery, average throughput was 10,032 barrels per day because of a planned 17-day partial outage in April for equipment cleaning and maintenance. Excluding the outage, throughput averaged 12,060 barrels per day, or 101% of design capacity.

The Prince George crack spread averaged C$118 per barrel in the second quarter, up 16% from the first quarter. Baines said global supply disruptions, reduced refining capacity in the Middle East and Russia, and low refined-product inventories supported market conditions.

The company had hedged about 50% of crack-spread exposure between April and December 2026. In the second half of July, it added hedges covering roughly 40% of 2027 crack-spread exposure at fixed prices that Baines said were significantly above mid-cycle pricing and 2026 realized hedge pricing. He said the company views about 50% as an appropriate general hedging level, while retaining flexibility to go above that level opportunistically.

Debt Reduction and Midstream Utilization
Consolidated net debt declined C$44.4 million during the quarter, including a C$30.9 million reduction at Tidewater Midstream and a C$13.5 million reduction at Tidewater Renewables. Tidewater Renewables reported debt to adjusted EBITDA of 1.47 times at June 30, while Tidewater Midstream reported 2.3 times. Consolidated leverage was 1.7 times, within the company’s 1.2-times to 2.5-times target range.

At the Brazeau River Complex, gas processing throughput averaged 105 million cubic feet per day, down 8% from the prior quarter due primarily to NGTL curtailments. Fractionation utilization fell to 76% from 90% in the first quarter. Baines said the company remains in discussions with prospective and existing customers to increase utilization.

The Ram River Gas Plant remained temporarily curtailed, though sulfur-handling operations continued. Baines said current sulfur prices are highly economic for sour-gas producers and that Tidewater intends to restart the plant when area production resumes.

SAF Project and Asset Sales
Tidewater Renewables continued to target a fourth-quarter final investment decision for its sustainable aviation fuel project. The company executed a new initiative agreement with British Columbia on June 19 that is expected to provide additional BC LCFS credits for critical pre-FID work. The company expects to receive credits in the third and fourth quarters as milestones are achieved.

Baines said a final investment decision depends on regulatory support, including anticipated amendments related to sustainable aviation fuel under the Clean Fuel Regulations and other Canadian support programs. He put the project’s capital cost at about C$1.2 billion and said it has a Class 3 front-end engineering and design package.

If sanctioned, the project would have a three-year construction period and be online in 2030, according to Baines. He said Tidewater believes it could fund the project through Part Three agreements and operating cash flow, while also considering a potential First Nations equity partner and other partnership alternatives.

Management said it will continue to pursue non-core asset sales, focusing on assets that do not fit its strategy or do not generate appropriate returns. The company said free cash flow from its disciplined capital program will primarily be directed toward debt reduction.

About Tidewater Midstream and Infrastructure (TSE:TWM)Tidewater Midstream and Infrastructure Ltd is a Canadian company that is engaged in providing midstream infrastructure and a natural gas storage facility. It mainly focuses on the purchase, sale, and transportation of Natural Gas Liquids (NGLs) such as propane and natural gasoline throughout North America and export to premium markets. The business activities of the company include gathering, processing, and transportation relates to raw gas gathering systems, processing plants and pipelines, NGL marketing and Extraction, refined products, and other activities.

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Key Takeaways H&R Block's Q4 adjusted EPS rose 4.8% to $2.38, while revenues increased 3% y/y to $1.14 billion.HRB expects fiscal 2027 revenues of $4.11B-$4.16B and adjusted EPS of $6.04-$6.24.H&R Block returned $713.7M to shareholders in fiscal 2026 and raised its quarterly dividend by 10%.
H&R Block, Inc. (HRB - Free Report) reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.

HRB’s adjusted earnings of $2.38 per share topped the Zacks Consensus Estimate of $2.23 by 6.7% and increased 4.8% year over year.

Revenues of $1.14 billion surpassed the consensus mark of $1.12 billion by 2.5% and rose 3% year over year. Assisted tax preparation and Wave contributed to growth. During fiscal 2026, client conversion improved 200 basis points, while retention increased 190 basis points.

The better-than-expected results and strong fiscal 2027 guidance impressed investors, as the stock has gained 14.3% since the company released results on Aug. 11.

HRB expects its fiscal 2027 revenues to be between $4.11 billion and $4.16 billion. The Zacks Consensus Estimate for the same is pegged at $4.03 billion. The company has guided its adjusted earnings in the range of $6.04 to $6.24 per share. The consensus estimate for the same is $5.81 per share. 

HRB’s shares have risen 6.4% over the past year against the industry’s 13.7% dip. The Zacks S&P 500 composite has risen 22.3% over the same time frame.

HRB's Assisted Tax Business Supports GrowthU.S. tax preparation and related services revenues increased 2.8% year over year to $1 billion in the fiscal fourth quarter. Assisted tax preparation revenues rose 4.1% to $714.2 million, while Refund Transfer revenues advanced 6.4% to $23.7 million. Tax Identity Shield revenues increased 15.8% to $17.3 million.

The company maintained Assisted category market share during the 2026 tax season after two consecutive years of improvement. Company-owned tax returns increased 2% for fiscal 2026, while net average charge at company-owned operations rose 4% to $282.89. Management attributed stronger performance to improved conversion, retention and a shift toward more complex clients.

H&R Block Sees Wave & International GainsInternational revenues increased 5.6% year over year to $94.9 million in the quarter. Wave revenues climbed 12.3% to $33.2 million, continuing momentum in the company's small-business offering.

For fiscal 2026, Wave posted its second consecutive year of double-digit revenue growth, supported by paid ProTier subscriptions and higher payments volume. Management continues to view small-business services as an important growth opportunity as it integrates expert advice, products and digital capabilities.

HRB's Expense Growth Moderates Profit GainsFiscal fourth-quarter operating expenses increased 3.8% year over year to $768.1 million. Compensation and benefits rose to $396.8 million from $383.1 million, while occupancy costs increased to $117.5 million from $112.8 million. Marketing and advertising expenses advanced to $69.1 million.

EBITDA increased 1.8% to $420.5 million. Adjusted net income declined 1.6% to $304.2 million, but adjusted earnings per share rose as the weighted-average share count fell 6.3% to 127 million. The reduction reflects H&R Block's continued share repurchases.

H&R Block Strengthens Client EconomicsManagement highlighted continued improvement in the quality of its client base. The share of clients within its targeted household adjusted gross income range of $50,000-$200,000 has increased from 38% to 50% over the past few years. H&R Block is serving more clients with investment income, small-business needs and more complex income streams.

Technology remained central to the strategy. Artificial Intelligence Tax Assist handled 4.2 million client interactions during the season and generated nearly twice the engagement of the prior year. Client Experience Monitors contributed to a 550-basis-point increase in product attachment, while the company's Sidekick AI assistant supported tax professionals handling complex questions.

HRB Delivers Strong Cash FlowH&R Block generated $838.7 million of operating cash flow in fiscal 2026 and $756.1 million of free cash flow. It returned $713.7 million to shareholders through dividends and share repurchases, including $500.3 million spent to repurchase about 10.5 million shares.

The board raised the quarterly dividend by 10% to 46 cents per share.

HRB Provides Other Fiscal 2027 Guidance With Higher OutlookFor fiscal 2027, adjusted EBITDA is projected in the range of $1.11 billion to $1.14 billion. The effective tax rate is forecasted at roughly 23%.

HRB expects about $400 million of share repurchases in fiscal 2027 and has approximately $600 million remaining under its current $1.5 billion authorization.

Management expects industry growth to remain below the historical norm but sees opportunities from Assisted market-share performance, small-business growth and selective franchise acquisitions. The company plans greater investment in automation and its consultative client experience while maintaining cost discipline.

Currently, H&R Block carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings SnapshotsClean Harbors, Inc. (CLH - Free Report) posted better-than-expected second-quarter 2026 results. CLH’s adjusted earnings of $3.22 per share beat the Zacks Consensus Estimate by 17.5% and rose 36.4% year over year. Total revenues of $1.74 billion surpassed the consensus estimate by 6.8% and increased 12% from the year-ago quarter.

Rollins, Inc. (ROL - Free Report) posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter.

Key Takeaways Capri Holdings trades at 6.87X forward earnings, below its five-year median and sub-industry multiple.Capri Holdings cut fiscal 2027 revenue guidance to $3.4 billion as Michael Kors faces ongoing pressure.Jimmy Choo's growth and lower leverage strengthen the turnaround, but Michael Kors remains the key test.
Capri Holdings Limited (CPRI - Free Report) looks inexpensive after a steep share-price decline, but the discount reflects a turnaround that is still short of a sustained revenue recovery. The stock trades at 6.87X forward 12-month earnings, well below the Zacks sub-industry’s 13.48X multiple.

The operating picture is improving in important areas. Yet Michael Kors remains under pressure, fiscal 2027 revenue guidance was reduced and external risks could slow the recovery.

Image Source: Zacks Investment Research

Capri’s Valuation Makes the Bull Case Hard to IgnoreCPRI shares are down 36.2% year to date and 27% over the trailing 12 months. The current forward earnings multiple is also below the stock’s five-year median of 9.53X, giving value-focused investors a clear reason to keep Capri on the radar.

The first quarter of fiscal 2027 provided some support for that discount-closing case. Adjusted earnings rose 34% year over year to 67 cents per share, while gross margin expanded 200 basis points to 65%. Adjusted operating income increased 40% to $28 million even as revenues declined 3.5% to $769 million.

Balance-sheet risk has fallen sharply following the Versace sale. Capri ended the quarter with net debt of $224 million, down from about $1.5 billion a year earlier. Free cash flow was $48 million, and the company repurchased about $50 million of shares during the quarter.

Turnaround Progress is Real, but Michael Kors is the TestJimmy Choo is providing the clearest evidence of brand momentum. First-quarter revenues increased 10.5% to $179 million, while operating margin expanded 480 basis points to 7.3%. Michael Kors, however, still accounts for most of Capri’s business and posted a 7.1% revenue decline to $590 million.

Capri now expects fiscal 2027 revenues of about $3.4 billion, down from its prior $3.525 billion outlook. The revision reflects inventory delays at Michael Kors, softer EMEA demand and foreign currency headwinds. Management still expects earnings of about $2.15 per share, supported by lower operating expenses, but the reduced sales outlook leaves less room for execution missteps.

Tariff uncertainty, inflation, competitive pressure and weak consumer confidence remain additional risks. The turnaround depends on full-price selling, product innovation, marketing and store renovations translating into durable revenue stabilization without giving back recent margin gains.

Peers Show the Bar for Luxury ExecutionTapestry, Inc. (TPR - Free Report) offers a useful comparison because Coach and Kate Spade also compete for accessories and lifestyle spending. Tapestry reported fiscal 2026 revenues of $8.0 billion and a 23% adjusted operating margin, showing the available profitability when brand momentum and execution are stronger.

Ralph Lauren Corporation (RL - Free Report) also entered fiscal 2027 with healthier top-line momentum. Its first-quarter revenues increased 14% on a reported basis, and the company raised its full-year constant-currency revenue and adjusted operating-margin outlook.

Should Investors Buy CPRI Now?Capri’s valuation is difficult to dismiss, and its lower leverage, margin improvement and Jimmy Choo growth make the turnaround more credible. The central question is whether Michael Kors can return to growth quickly enough to validate the low earnings multiple.

CPRI currently carries a Zacks Rank #3 (Hold), alongside a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. The strong Value and VGM scores support the stock’s inexpensive profile, while the weak Momentum Score tempers the near-term setup. Because Style Scores are designed to complement the Zacks Rank, the combination favors patience while investors look for firmer evidence of sustained revenue recovery.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways EAT expects fiscal 2027 revenue of $6.15-$6.27B and adjusted EPS of $12.60-$13.40.The 53rd week is expected to add about 2% to revenue and 70 cents to adjusted EPS.Brinker plans 60-80 Chili's reimages while managing inflation and pricing to protect its value proposition. Brinker International, Inc. (EAT - Free Report) expects another year of revenue and earnings growth in fiscal 2027, helped by an unusual 53rd operating week. The calendar benefit is meaningful, but it is only one part of the outlook.

Investors still have to weigh Chili's traffic assumptions, restaurant reinvestment and cost pressures to judge how much of the projected growth reflects underlying operating progress.

Brinker's Fiscal 2027 Guidance Extends MomentumBrinker expects fiscal 2027 revenues of $6.15-$6.27 billion and adjusted earnings of $12.60-$13.40 per share. Management built the outlook around mid-single-digit Chili's same-store sales growth and positive traffic for the remainder of the year.

That keeps Chili's execution at the center of the forecast. Darden Restaurants, Inc. (DRI - Free Report) , with brands including Olive Garden and LongHorn Steakhouse, provides another large full-service dining benchmark. Texas Roadhouse, Inc. (TXRH - Free Report) operates predominantly in casual dining, making traffic and restaurant-level execution important points of comparison across the category.

EAT Gets a 53rd-Week Earnings TailwindThe extra operating week is expected to add about 2% to fiscal 2027 revenues and 70 cents to adjusted earnings per share. Because that contribution comes from the calendar, it should be separated from the company's underlying sales and margin progress.

The distinction matters when comparing fiscal 2027 with fiscal 2026. Growth supported by a 53rd week is real for the reported year, but Chili's comparable sales, traffic and restaurant economics will provide a cleaner read on operating momentum.

Brinker's Reimage Plan Adds a Longer Growth LeverBrinker completed 11 Chili's reimages in fiscal 2026 and plans another 60-80 in fiscal 2027. The program expands a growth lever that is separate from near-term comparable-sales gains and is intended to refresh more of the restaurant base.

Fiscal 2027 guidance also assumes three net new company-owned restaurant openings. Brinker plans to acquire 12 franchised Chili's restaurants in Alabama and Mississippi, while management expects a larger new-unit development ramp beginning in later fiscal years.

EAT Still Has to Manage Inflation and PricingCommodity inflation is expected to ease through fiscal 2027, from about 4% in the first quarter to 3% in the second, 2% in the third and 1% in the fourth. Beef remains the main commodity pressure after contributing to higher food costs in the most recent quarter.

Brinker also plans to keep pricing near the lower end of its 3-5% range to protect Chili's value proposition. That approach supports traffic goals but reduces the pricing cushion available if commodity or other restaurant costs prove more persistent.

Brinker's Maggiano's Turnaround Remains a DragMaggiano's recovery remains slower than planned. Management has incorporated that slower turnaround into fiscal 2027 guidance and modeled roughly flat revenues and profits for the brand.

The brand's smaller contribution limits its effect on consolidated results, but execution still matters. Fiscal 2026 comparable sales fell 3.9%, traffic declined 9.3% and restaurant operating margin dropped to 10.1% from 16.3%, leaving little room for further deterioration.

EAT's Growth Scores Back the Outlook With CaveatsThe bottom line is that the 53rd week gives fiscal 2027 a clear earnings and revenue lift, while Chili's traffic, reimages and unit actions provide the more durable operating tests. Inflation, pricing discipline and Maggiano's weakness remain offsets.

EAT currently carries a Zacks Rank #3 (Hold), along with a Growth Score of A, Momentum Score of A and VGM Score of A. Its Value Score is C. The Style Scores point to favorable growth and momentum characteristics, but they are designed to complement the Zacks Rank. With a #3 Rank rather than a #1 or #2, the combination supports a measured stance instead of an unqualified buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Memory has historically been the worst business in the semiconductor industry. Brutal cycles, no pricing power, capacity built at exactly the wrong moment. So when Melius Research’s head of technology tells CNBC that a memory company can hand back roughly its entire pre-2026 market cap in buybacks over three years, the reflex is skepticism. The claim deserves better than a reflex.

On CNBC this morning, Ben Reitzes said SanDisk (NASDAQ:SNDK | SNDK Price Prediction) could buy back roughly $100 billion of its own stock over the next three years, and lifted his price target to $3,600 after the company’s analyst day. He values the shares at about 11 times earnings on his forward numbers. SanDisk currently trades around $1,613.45 with a market cap near $238 billion and a trailing P/E of roughly 21x. The stock has gained 492% year to date, so the gap between the current price and Reitzes’ target implies the market is only partway to pricing in what he sees.

The Argument That Memory Stopped Being A Commodity
Reitzes’ thesis centers on customer behavior more than on SanDisk’s technology. “The largest customers are actually going back to folks like SanDisk and Micron saying, you know what, let’s sign up for these contracts. It’s really game on. We need this. We cannot be caught short,” he said, naming Google and Microsoft as examples. His view is that AI has rewritten the game: “Memory sort of got reinvented with the whole AI. The more memory you use, the better AI gets.” He also credits CEO David Goeckeler personally, saying, “We think that Dave is doing a great job of really making that business model more predictable.”

That predictability has a specific name inside SanDisk. On the Q4 call, management disclosed that 8 diverse data center and edge customers have now signed New Business Model agreements, with total expected minimum revenue of $93.9 billion at floor pricing and a weighted-average duration of over 4 years. Goeckeler said customers “are giving us demand signals for all the way out to the end of the decade.” Buyers voluntarily giving up price optionality in exchange for guaranteed supply is not commodity behavior.

What The $100 Billion Actually Requires
The math is credible. SanDisk generated $11.43 billion in net income in fiscal 2026 with a negligible debt-to-equity ratio and no term loan B. The board authorized an additional $14 billion in repurchases, bringing the remaining authorization to $15.5 billion, and the company already retired 2.8 million shares for $4.5 billion in a single quarter.

Goeckeler was direct on the call: “We believe that at this point in time…the best way to do it is to return cash to investors via share buybacks.” Q1 FY2027 guidance calls for revenue of $10.30B–$10.80B and non-GAAP EPS of $44.00–$46.00. Extrapolate that quarterly cash generation over 12 quarters, and the Reitzes’ number stops being absurd.

You can see the pace SanDisk has already sustained in the Q4 press release filed with the SEC and in the 437% year-over-year growth in datacenter revenue, which is driving mix higher.

The Counter Argument
Every memory cycle in history has produced a “this time the cycle is dead” thesis, and every one has eventually been wrong. Contracts get renegotiated when spot prices collapse; reputational cost is a real deterrent but not an infinite one.

SanDisk has been a standalone public company only since its February 21, 2025 separation from Western Digital, so there is no long independent track record to stress-test. Current sell-side consensus sits at a target of $2,053.50 with 18 Buy, 4 Hold, and 1 Sell ratings. That is bullish, but well short of $3,600.

The Takeaway
Reitzes is directionally correct on the mechanism. NBMs with $16.5 billion in financial guarantees behind them are qualitatively different from spot NAND, and the free cash flow is real. For the full $100 billion to be achievable, three things must hold: hyperscaler contracts must survive at least one down-cycle without material renegotiation, capital intensity must stay near the approximately 6% for full-year FY2027 Goeckeler guided to, and pricing on non-contracted bits cannot collapse.

If any two of those hold, the buyback is still enormous, just smaller than $100 billion. The durability of the contracts matters more than peak-cycle EPS when valuing the stock. The commodity discount is what is going away. Whether that discount stays gone will determine how much of Reitzes’ target the market ultimately validates.

Contact [email protected] for any questions or corrections.

USD/CAD extends its decline farther below 1.4000 on Friday and heads for a third consecutive weekly loss. At the time of writing, the pair trades around 1.3877, at levels last seen in early July.

The recent strength in the Canadian Dollar (CAD) is driven by broad US Dollar (USD) weakness and relatively stronger Canadian economic data, while elevated Oil prices provide underlying support to the commodity-linked Loonie.

Monetary policy expectations remain in focus. In the US, moderating inflation, weaker consumer spending and signs of labour market softness have lowered the chances of a Federal Reserve (Fed) interest rate hike next month. Across the border, next week’s Consumer Price Index (CPI) report will provide a fresh update on inflation and its possible impact on the Bank of Canada’s (BoC) policy path.

BoC seen prioritising soft core inflation as output gap closes only graduallyAccording to TD Securities, the Bank of Canada is likely to place greater emphasis on the “softer trajectory for core inflation” at its 2 September decision, noting that the limited “passthrough from higher oil prices gives it more scope to continue looking through the energy shock.” The bank adds that the “recent deceleration across core inflation measures also helps to validate the Bank's assessment around excess supply and capacity to absorb stronger growth amid the rebound in Q2 GDP tracking.”

In TD’s view, this backdrop “should allow the Bank of Canada to stick to its recent messaging next month, with a focus on softer underlying inflation and the gradual timeline to close the output gap.”

Technical analysis

From a technical perspective, USD/CAD maintains a steady downtrend, forming a series of lower highs and lower lows since reversing from above 1.4200 in late June. The pair subsequently slipped below the 50-day Simple Moving Average (SMA), while the latest leg lower has pushed it beneath the 100-day SMA.

The Relative Strength Index (14) around 29 signals oversold conditions and warns that downside momentum may be stretched even as the Moving Average Convergence Divergence (MACD) remains in negative territory.

On the downside, immediate support is aligned with the 200-day SMA close to 1.3850, ahead of a more substantial horizontal floor at 1.3700, with a deeper bearish extension exposing the structural level at 1.3542.

On the topside, a recovery attempt would first face resistance at the 100-day SMA at 1.3920, with any stronger rebound likely capped by the higher 50-day SMA at 1.4077 unless sellers lose control of the medium-term trend.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.

USDEURGBPJPYCADAUDNZDCHFUSD-0.31%-0.35%-0.08%-0.39%-0.29%-0.59%-0.14%EUR0.31%-0.04%0.22%-0.10%0.02%-0.30%0.17%GBP0.35%0.04%0.28%-0.08%0.06%-0.24%0.22%JPY0.08%-0.22%-0.28%-0.30%-0.21%-0.54%-0.04%CAD0.39%0.10%0.08%0.30%0.10%-0.20%0.26%AUD0.29%-0.02%-0.06%0.21%-0.10%-0.30%0.16%NZD0.59%0.30%0.24%0.54%0.20%0.30%0.48%CHF0.14%-0.17%-0.22%0.04%-0.26%-0.16%-0.48%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

It has been about a month since the last earnings report for Johnson & Johnson (JNJ - Free Report) . Shares have added about 4.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Johnson & Johnson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Q2 Earnings & Sales Beat EstimatesJ&J’s second-quarter 2026 earnings came in at $2.90 per share, which beat the Zacks Consensus Estimate of $2.84. Earnings rose 4.7% from the year-ago period.

Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.27 per share, down 0.9% year over year.

Sales of $25.3 billion marginally beat the Zacks Consensus Estimate of $25.1 billion.

Sales rose 6.6% from the year-ago quarter, reflecting an operational increase of 5.6% and a positive currency impact of 1.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 5.7% on an operational basis. Stelara’s LOE negatively impacted total revenue growth by approximately 460 basis points. Excluding Stelara, sales grew in a double-digit range in the quarter.

Second-quarter sales in the domestic market rose 7.3% to $14.53 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 7.4% in the quarter.

International sales rose 5.7% on a reported basis to $10.8 billion, reflecting an operational increase of 3.4% and a positive currency impact of 2.3%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 3.5% in the quarter.

Segment DetailsInnovative Medicines SegmentInnovative Medicine sales rose 7.8% year over year to $16.38 billion. Operational sales increased 6.8%, while adjusted operational growth was 6.9%. U.S. sales advanced 8.9%, and international sales increased 6% on a reported basis. Innovative Medicines sales slightly beat the Zacks Consensus Estimate of $16.16 billion.

Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Zytiga.

Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 760 basis points in the quarter.

Oncology 

Worldwide oncology sales increased 17.3% to $7.41 billion.

Darzalex rose 18.9% to $4.21 billion in the quarter, driven by continued share gains across all lines of therapy, particularly the front-line setting, as well as continued market growth. Sales beat the Zacks Consensus Estimate of $4.16 billion.

Imbruvica sales declined 18.6% to $599 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales missed the Zacks Consensus Estimate of $630.0 million.

Erleada sales increased 9.5% to $995 million, driven by share gains and market growth, partially offset by unfavorable patient mix and inventory dynamics. Erleada sales missed the Zacks Consensus Estimate of $1.06 billion.

    Among the newer cancer drugs, Carvykti sales surged 49.4% to $657 million, driven by share gains and continued capacity expansion. Another new drug, Tecvayli’s sales jumped 56.5% year over year and 29.2% sequentially to $260 million, driven by launch uptake, share gains from continued expansion into the community setting and the launch of Tecvayli plus Darzalex Faspro for relapsed/refractory multiple myeloma.

Talvey sales advanced 63.3% to $174 million, driven by continued expansion into the community setting.

Rybrevant/Lazcluze sales climbed 60.8% to $289 million, driven by continued launch uptake in all regions, share gains and the rapid uptake of Rybrevant Faspro.

J&J’s newly launched therapy, Inlexzo, delivered a strong second quarter, with sales more than doubling sequentially from the first quarter number of around $30 million. Sales comfortably exceeded consensus expectations, although J&J did not disclose the exact sales figure. The launch continued to gain momentum in the United States, supported by permanent J-code reimbursement, with one in three eligible patients now starting an Inlexzo regimen, up from one in four in the first quarter.

Immunology

Worldwide immunology sales declined 3.7% to $3.84 billion as biosimilar competition continued to put pressure on Stelara, whose sales fell 55.2% to $740 million. Increasing adoption of novel classes and unfavorable patient mix also hurt Stelara sales in the quarter. However, Stelara sales beat the Zacks Consensus Estimate of $654.0 million.

Tremfya remained the key growth driver, with sales rising 72.5% to $2.05 billion, driven by share gains across all indications, particularly the IBD indications as well as continued market growth. Tremfya sales beat the Zacks Consensus Estimate of $1.85 billion.

Remicade revenues decreased 25.8% to $338 million. Simponi and Simponi Aria sales declined 10.5% to $618 million.

On the conference call, J&J said that it is seeing strong launches for its newly launched oral pill for plaque psoriasis, Icotyde, as well as new drug Imaavy for generalized myasthenia gravis.

Neuroscience, PH and Other Drugs

Neuroscience sales increased 14% to $2.34 billion. Spravato revenues grew 40.8% year over year and 24.8% on a sequential basis to $584 million driven by strong demand trends.

Caplyta, added from last year’s acquisition of Intra-Cellular Therapies, generated $361 million, up 70.9% year over year backed by new patient starts and continuing patient growth following its FDA approval in adjunctive major depressive disorder. Caplyta new patient starts were up 122% year over year.

Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales rose 2.3% to $1.02 billion in the quarter.

Pulmonary hypertension drug Uptravi recorded second-quarter 2026 sales of $494 million, up 3.8% year over year. Opsumit/Opsynvi sales increased 3.4% to $602 million.

Xarelto sales rose 7.1% to $664 million. Sales of Prezista/Prezcobix/Rezolsta/Symtuza declined 6.3% to $372 million.

MedTech SegmentMedTech sales increased 4.5% to $8.93 billion, including operational growth of 3.6%. However, MedTech segment sales slightly missed the Zacks Consensus Estimate of $8.96 billion.

Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 3.7%.

In the MedTech segment, sales rose 3.9% in the United States and 3.2% outside of the United States on an operational basis.

On the conference call J&J clarified that while its Cardiovascular sales slowed down in the second quarter due to weakness in Abiomed, its other three businesses, Surgery, Vision and Orthopedics accelerated in the quarter and performed above expectations. J&J claimed that overall procedure volumes were stable and there was no broad-based slowdown in medical procedure volumes across its MedTech business. J&J clarified that although some large U.S. hospitals have reported weaker volumes for certain elective procedures, those trends are not reflected in its own business. J&J also said that the expiration of Affordable Care Act (ACA) subsidies has not had any meaningful impact on procedure volumes so far and is unlikely to materially affect MedTech demand.

Cardiovascular sales rose 4% to $2.40 billion. However, the growth was slower than prior trends due to competitive pressure in electrophysiology business and decline in Abiomed sales, partially offset by continued double-digit growth in Shockwave.

Shockwave revenues rose 14.6% to $335 million. Electrophysiology sales increased 4.4% to $1.53 billion as procedure growth, commercial execution and contribution from new products was partially offset by competitive PFA pressures and negative impact from China inventory dynamics.

Abiomed sales declined 2% to $440 million due to slow procedural volumes driven by usage patterns. Abiomed procedure volumes were hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures. J&J believes this led to slower Impella usage as doctors reassessed patient selection for the device. J&J believes this is a temporary issue and is working with physicians to ensure the device is used in the right patients based on its existing clinical evidence. However, Abiomed sales in outside U.S. markets remained strong.

Worldwide Surgery grew 3.9% to $2.65 billion as growth in wound closure and biosurgery offset the impact of competitive pressure in energy and endocutters and VBP issues in China. Worldwide orthopedics rose 4.9% to $2.42 billion, driven by new product launches and strong commercial execution. Worldwide Vision rose 6.0% to $1.45 billion, driven primarily by higher growth in contact lenses and Surgical Vision partially offset by competitive pressures in the United States in Surgical Vision.

Slightly Ups 2026 GuidanceBacked by a strong second-quarter performance and uptake of new products, J&J raised its 2026 reported sales guidance to $100.8-$101.4 billion from $100.3-$101.3 billion. The sales projection indicates growth in the range of 7.0%-7.6% versus the prior expectation of 6.5%-7.5%. Operational sales growth is expected in the range of 6.5%-7.1% versus the prior expectation of 5.9%-6.9%.

Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 6.2%-6.8% versus the prior expectation of 5.6%-6.6%.

In 2026, the 53rd week is expected to provide a benefit of approximately 100 basis points. Operational sales growth is expected to improve in the second half of the year with fourth-quarter growth expected to be higher due to the benefit from the 53rd week.

Adjusted earnings per share guidance was raised from a range of $11.45-$11.65 to $11.60-$11.75. Adjusted earnings per share growth is expected in the range of 7.5%-8.9% versus the prior expectation of 6.1%-8.1%.

Adjusted pretax operating margin is expected to improve by approximately 75 basis points, higher than the prior expectation of 50 basis points.

The company projects net interest expense to be between $250 million and $300 million, slightly lower than the prior expectation of $300 million to $400 million. The adjusted tax rate is expected to be approximately 17.0% to 18.0% (previous expectations: 17.5% to 18.5%).

J&J expects its Innovative Medicine segment to remain a key growth driver in the second half of 2026. The growth is expected to be driven by its key products, such as Darzalex, Tremfya, Spravato, Carvykti and Erleada as well as increased contribution from new launches like Icotyde, Rybrevant, and Inlexzo which can offset the ongoing impact of Stelara biosimilar competition. J&J expects continued above-market growth through the remainder of 2026.

Other than Stelara LOE impact, J&J expects generic impact for both Simponi and Opsumit to begin in 2026.

J&J expects its MedTech business to perform better in the second half of the year than it did in the first half. However, it has lowered expectations for Abiomed, anticipating only modest growth through the remainder of 2026 instead of a sharper rebound. However, it emphasized that the business is not expected to decline, with growth likely to gradually improve as the year progresses. J&J expects a more meaningful acceleration in Abiomed's growth to occur after the release of the PROTECT IV study data in 2027.

Overall, J&J expects MedTech growth to improve in the second half, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresAt this time, Johnson & Johnson has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Johnson & Johnson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Valneva SE (NASDAQ:VALN) stock is surging on Friday after the company and its partner Pfizer Inc. (NYSE:PFE) announced that the European Medicines Agency (EMA) has validated the Marketing Authorization Application (MAA) for PF-07307405, their Lyme disease vaccine candidate.

The EMA will now commence its assessment of the application.

Clinical Trial ResultsThe application for PF-07307405 is supported by encouraging efficacy data from the Phase 3 VALOR clinical trial.

The trial evaluated the vaccine candidate’s ability to prevent Lyme disease in individuals aged five and older. The results demonstrated an efficacy of over 70%.

Furthermore, the vaccine was well-tolerated among trial participants, with no safety concerns reported.

Read Next

In March, the companies released topline results from the Phase 3 VALOR clinical trial for its Lyme disease vaccine candidate, which did not meet the primary endpoint criteria.

The Phase 3 VALOR trial results showed that fewer Lyme disease cases were accrued than anticipated, and the primary endpoint was not met in the first analysis.

Collaborative EffortPF-07307405 was developed through a collaboration between Pfizer and Valneva. The vaccine candidate has undergone rigorous evaluation for its efficacy, safety, tolerability, immunogenicity, and manufacturing lot consistency.

The two companies entered into a collaboration and license agreement in April 2020. Under this agreement, they are co-developing PF-07307405, and Pfizer holds the exclusive rights to manufacture and commercialize the vaccine, pending regulatory approval.

VALN Stock Price Activity: Valneva shares were up 24.96% at $7.06 at the time of publication on Friday,
according to Benzinga Pro data.

Photo: Shutterstock

Read Next

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It has been about a month since the last earnings report for M&T Bank Corporation (MTB - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is M&T Bank due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for M&T Bank Corporation before we dive into how investors and analysts have reacted as of late.

M&T Bank Q2 Earnings Beat Estimates on Strong NII & Fee Income GrowthM&T Bank reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.

Results were aided by higher net interest income and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds.

Net income available to common shareholders was $781 million, up 15% from the prior-year quarter.

Revenues & Expenses Rise Y/Y

The company’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year.

NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements.

Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations.

Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses.

The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability.

Loan & Deposit Balances Increase

Total loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion.

Credit Quality Improves

Net charge-offs decreased 25.9% to $80 million from the prior-year quarter.

The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter.

Non-performing assets declined 23.2% year over year to $1.23 billion.

The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%.

Capital Position Mixed & Profitability Ratios Improve Y/Y

M&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025.

The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter.

Outlook2026

Management expects taxable-equivalent NII to be in the lower half of the $7.2-$7.35 billion range. The company expects NIM to be in the high 3.60% range. The outlook remains dependent on loan growth, deposit trends and the shape of the yield curve.

Non-interest income is expected to be between $2.8 billion and $2.85 billion, revised upward from the prior guidance of $2.68-$2.77 billion. The increase reflects broad-based fee income growth and higher mortgage sub-servicing income beginning in the third quarter.

Management expects 2026 GAAP expenses, including intangible amortization, to be at the high end of its $5.5-$5.6 billion guidance range. This reflects continued investments in enterprise initiatives despite disciplined control of non-investment spending.

Average loan balances are expected to be $141-$143 billion, revised upward from the prior projection of $140-$142 billion. The growth reflects commercial loan momentum, improving CRE balances and continued consumer growth. Average deposit balances are anticipated to remain at $165-$167 billion.

The net charge-off rate is projected to be around 37 basis points, revised downward from the prior expectation of around 40 basis points.

The CET1 ratio is expected to be between 10% and 10.5%, compared with the prior expectation of around 10%.

The tax rate is anticipated to be around 24% for 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.

VGM ScoresAt this time, M&T Bank has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook M&T Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways AIG launched a Parametric Cloud Outage Solution to cover losses from cloud and SaaS disruptions.The policy can trigger payments after outages exceed two hours, using Parametrix's live outage data.AIG sees an opportunity to grow cyber insurance and deepen its commercial client base as cloud usage rises. American International Group, I (AIG - Free Report) is expanding its cyber insurance offering with a new Parametric Cloud Outage Solution for eligible business clients. Developed with technology monitoring specialist Parametrix, the solution protects businesses against financial losses from disruptions involving cloud infrastructure and software-as-a-service (SaaS) providers. It combines cloud outage coverage with traditional cyber protection, giving businesses broader coverage under one policy.

The policy is designed to help businesses receive payments faster after a covered outage. Parametrix tracks more than 750 data centers and 9,000 cloud and software providers in real time, allowing AIG to verify covered outages using live data. If a covered outage lasts more than two hours, the policy can trigger a payment based on agreed terms, with no monetary retention after the waiting period. Businesses do not have to spend as much time documenting their actual losses, helping them access financial support more quickly following an unexpected technology shutdown.

Businesses are becoming increasingly dependent on cloud technology. Enterprise spending on cloud infrastructure reached $129 billion in the first quarter of 2026, up 35% from the year-ago level. A major outage can disrupt payments, customer services and daily operations. AIG is responding to this growing risk by expanding its cyber insurance capabilities. Its partnership with Parametrix also provides real-time data to help address emerging cloud risks.

The new solution could help the company expand its cyber insurance business and deepen relationships with commercial clients. As cloud dependence grows, the offering could support demand for AIG’s commercial insurance products. The near-term financial impact is likely to be modest. Still, the launch gives it another opportunity to diversify its commercial insurance portfolio and capture demand for protection against growing cloud-related risks.

AIG’s Stock Price PerformanceShares of AIG have lost 2.8% over the past six months compared to the industry’s 9.4% growth.

Image Source: Zacks Investment Research

AIG’s Zacks Rank & Key PicksAIG currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are The Travelers Companies, Inc. (TRV - Free Report) and Heritage Insurance Holdings, Inc. (HRTG - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and First American Financial Corporation (FAF - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Travelers’ 2026 earnings is pegged at $33.82 per share, indicating 22.58% year-over-year growth. TRV beat earnings estimates in each of the trailing four quarters, with the average surprise being 41.68%. The consensus estimate for 2026 revenues is pinned at $48.82 billion.

The Zacks Consensus Estimate for Heritage Insurance’s 2026 earnings is pegged at $5.50 per share, which has seen two upward revisions over the past 30 days, with no downward revision. HRTG beat earnings estimates in three of the last four quarters and missed once, with an average surprise of 81.49%. The consensus estimate for 2026 revenues is pegged at $860.96 million.

The Zacks Consensus Estimate for First American’s 2026 earnings is pegged at $7.02 per share, indicating 16% year-over-year growth. FAF beat earnings estimates in each of the trailing four quarters, with the average surprise being 23.58%. The consensus estimate for 2026 revenues is pinned at $8.16 billion, implying 9.45% year-over-year growth.

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Broadcom‘s (NASDAQ:AVGO | AVGO Price Prediction) stock is sinking 6% to $390.69 in early Friday afternoon trading, while Advanced Micro Devices (NASDAQ:AMD) stock is climbing 4% to $502.95. The split reaction within a single AI theme reveals opposing verdicts on how AI infrastructure gets financed.

A Bank of America (NYSE:BAC) note flagged a $370 billion estimate tied to Broadcom’s off-balance-sheet financing vehicle, while Baird issued a Street-high price target on AMD’s accelerator roadmap. Year-to-date through Thursday’s close, Broadcom stock was up 21% and Advanced Micro Devices stock was up 126%.

Broadcom Slides on AI Debt Vehicle Estimate Bank of America analyst Tom Curcuruto flagged that Broadcom’s chip-financing vehicle could reach $370 billion of senior debt by mid-2029 at 20-gigawatt scale, including roughly $150 billion of new issuance in 2027 alone. Per Broadcom’s latest 10-Q, an investor partner assumed the purchase and lease agreements, and Broadcom agreed to backstop lease payments for five years, with maximum exposure of up to $29 billion on the initial transaction.

The $370 billion isn’t Broadcom’s debt; the vehicle raises capital and leases custom AI accelerators to customers. Broadcom’s fiscal Q2 2026 revenue was $22.19 billion, up 47.9% year over year, with AI chip revenue up 143%, and management has guided to $16 billion of AI semiconductor revenue for the current quarter. Polymarket traders give Broadcom a 94% chance of topping $15 billion in AI revenue this quarter and a 78% chance of exceeding $16 billion, and today’s selloff targets the financing structure rather than underlying demand.

AMD Rallies on Baird’s Street-High $1,250 Call Baird analyst Tristan Gerra doubled his AMD price target to a Street-high $1,250 from $625 while maintaining Outperform. His model implies AMD AI GPU platform revenue reaching $147 billion by 2030 on 15% share of the data center AI accelerator TAM. Bank of America raised its 2030 server CPU market forecast to more than $210 billion, up from $170 billion this week and kept Advanced Micro Devices as its top pick.

Advanced Micro Devices stock initially fell after the Aug. 4 Q2 2026 report despite revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue more than doubling to $6.72 billion. The culprit was flat gross margin guidance of 56% for Q3 2026. Per prior 24/7 Wall St. coverage, the post-earnings drop was 9%.

AMD’s put-to-call open interest ratio has climbed to 1.15, and its 20-day Chaikin Money Flow reads -0.142, the weakest of 10 major chip names, while NVIDIA (NASDAQ:NVDA), Broadcom, Taiwan Semiconductor (NYSE:TSM) and Qualcomm (NASDAQ:QCOM) show accumulation. Options positioning hedges AMD even as sell-side targets rise.

Sector Move Confirms a Single-Name Story Intel (NASDAQ:INTC) stock is down 2%, and the iShares Semiconductor ETF (NASDAQ:SOXX) is down 0.7%. A broad semiconductor fund barely moving while Broadcom stock falls 6% and AMD stock rises 4% confirms that today is a repricing of individual balance sheets and analyst calls rather than the broader AI trade.

NVIDIA went public this week with a plan to collectively finance AI computing deals totaling roughly $500 billion, alongside Goldman Sachs (NYSE:GS), Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO), with KKR (NYSE:KKR), BlackRock (NYSE:BLK) and Brookfield (NYSE:BN) added days before. Jensen Huang clarified that NVIDIA’s support would cover as much as 25% of an opportunity, and no deals were signed at the time of the announcement. Broadcom’s structurally similar arrangement, anchored by Apollo and Blackstone, got a number attached Friday and the stock fell.

Broadcom’s vehicle launched in June when Apollo and Blackstone led a $35 billion financing for Broadcom’s AI XPV Platform. That deal funds more than 1 gigawatt of compute for Anthropic, with the platform sized to support more than 20 gigawatts for frontier AI labs through 2028. Blackstone has already sounded out investors for another transaction exceeding $30 billion.

What Investors Can Watch Next Investors can watch for whether Broadcom’s backstop exposure grows beyond the disclosed $29 billion as the AI XPV Platform scales toward 20 gigawatts. They can also check to see if NVIDIA’s $500 billion framework converts into signed contracts, since none were in place at announcement.

Additionally, traders may want to look for signs of AMD’s elevated put open interest unwinding without a price breakdown, suggesting hedgers were protecting gains rather than exiting. The key question is whether the market treats vendor-backstopped AI financing as reassurance for one company and risk for another. Investors should size their positions carefully given how quickly narratives around AI leverage are shifting.

Contact [email protected] for any questions or corrections.

Plug Power Inc. (NASDAQ:PLUG) shares are trading higher on Friday as traders lean into gross margin breakeven progress and improving business mix.

Plug Power stock is moving in positive territory. Why are PLUG shares climbing? BTIG said the company’s overall gross margins are nearing breakeven, helped by strong Material Handling demand for fuel cells and ongoing cost cuts, while the firm’s analyst maintained a Neutral rating.

The note also flagged liquidity actions including the sale of the Graham, Texas project for about $77 million (with up to $27 million tied to final interconnection timing), plus about $44 million of investment tax credits sold from the Louisiana hydrogen plant.

Plug Power’s liquidity narrative is also being shaped by management’s plan to release about $50 million of restricted cash per quarter, lever traders are watching alongside efforts to mitigate cash burn.

"Our second quarter results demonstrate that Plug is executing its transformation into a stronger, more efficient and profitable company," Plug CEO Jose Luis Crespo said.

The CEO said the company improved gross margins, reduced operating expenses, strengthened liquidity and had revenue growth in the quarter, alongside advancing commercial milestones.

Critical Price Levels To Watch For PLUGFrom a trend perspective, the stock is still trying to repair longer-term damage: it’s trading 3.8% below its 50-day SMA ($2.44), 15.9% below its 100-day SMA ($2.79), and 6% below its 200-day SMA ($2.50). The 20-day SMA ($2.14) is acting as near-term support with shares 9.7% above it, but the 20-day SMA remains below the 50-day SMA and the August death cross (50-day below 200-day) keeps the bigger-picture bias cautious.

Momentum is more balanced than the moving averages suggest, with RSI at 53.66—neutral and consistent with a stock that’s trying to base rather than trend cleanly. RSI is a quick way to gauge whether buying or selling has become "stretched," and this reading implies neither side has a strong momentum edge right now.

Key Resistance: $2.50 — a round-number area that also lines up closely with the 200-day moving average zone where rebounds can stall Key Support: $2.00 — a nearby round-number level that can attract dip buyers if the recent bounce fades PLUG Stock Price Movement on FridayPLUG Stock Price Activity: Plug Power shares were up 1.30% at $2.33 at the time of publication on Friday, according to Benzinga Pro data.

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A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Cintas' Q4 Earnings & Revenues Surpass Estimates, Increase Y/YCintas reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.

The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.

Cintas’ Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.

Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.

The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.

Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.

Margin ProfileCintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.

Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.

Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.

Cintas’ Balance Sheet & Cash FlowExiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025.

In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.

The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.

Fiscal 2027 OutlookFor fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.

Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

VGM ScoresAt this time, Cintas has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Key Takeaways RITM's Asset Management AUM reached $61 billion in Q2, up from $33 billion in 2023.Newrez's Q2 pre-tax operating income reached $307.6 million, while operating ROE improved to 22%.RITM had $2.4 billion of liquidity versus $40.2 billion of debt as of June 30, 2026.
Rithm Capital Corp. (RITM - Free Report) has gained 12.2% over the past month, sharpening the focus on whether operating momentum can keep supporting the rebound. RITM shares have outperformed the industry, which has gained 0.6% over the same period. The stock has also outperformed its peers, Annaly Capital Management, Inc. (NLY - Free Report) and PennyMac Mortgage Investment Trust (PMT - Free Report) , over the same period.

Price Performance
Image Source: Zacks Investment Research

Growth across asset management, Newrez and Genesis provides support for RITM’s operating performance. However, higher expenses, limited liquidity and mortgage-servicing volatility remain key risks. The recent share-price strength has yet to be matched by a meaningful improvement in earnings estimates.

RITM's One-Month Rally Meets a Mixed BackdropRITM's four-week gain of 12.2% contrasts with a 17.1% decline over the past 52 weeks. The Zacks Consensus Estimate for the current fiscal year has also moved 0.45% lower over the past four weeks, showing that price momentum has strengthened while the earnings-revision trend remains soft.

Mortgage-focused peers face similar rate sensitivity. Annaly reported a $109.4 billion portfolio in the second quarter of 2026, including a large Agency mortgage portfolio, while PennyMac invests primarily in residential mortgage loans and mortgage-related assets, including mortgage servicing rights.

Rithm's Fee-Based Growth Strengthens the StoryRithm’s Asset Management ended the second quarter with about $61 billion in assets under management (AUM), up from $33 billion in 2023. Rithm accelerated growth of its alternative asset management business by completing the acquisition of Sculptor Capital Management in November 2023.

The acquisition of Crestline in December 2025 added about $18 billion of AUM, while the platform has generated $10 billion of organic growth since 2023. Its asset management revenues increased 48.4% year over year to roughly $141 million, helped by higher incentive fee income.

AUM Growth Trend
Image Source: Rithm Capital Corp.

A larger fee-based contribution can broaden Rithm's earnings mix beyond balance-sheet-driven mortgage income. That shift could improve earnings durability over time if fundraising and investment performance continue to support asset growth.

RITM's Newrez Efficiency Gains Add SupportNewrez delivered $307.6 million in second-quarter pre-tax operating income, excluding mark-to-market and other non-operating items. Its annualized operating return on equity (ROE) improved to 22% from 19% in the first quarter, reflecting continued strength across the platform. Meanwhile, servicing unpaid principal balance increased to $865.2 billion.

Technology initiatives offer another efficiency lever. Management expects initiatives, HomeVision and ValonOS workflows to reduce direct fulfillment cost per loan to $787 in 2026 from $886 in 2025 and direct servicing cost per loan to $93 from $118.

Rithm Still Faces Liquidity and MSR RisksRithm had $2.4 billion of liquidity as of June 30, 2026, compared with $40.2 billion of total debt. The gap limits financial flexibility during periods of market stress, particularly as expenses remain elevated following platform expansion.

Mortgage servicing rights also create earnings volatility. In the second quarter of 2026, Rithm recorded a $392.9 million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.

RITM's Valuation Could Support Further UpsideRITM trades at 4.62X forward 12-month earnings, well below the 17.03X multiple for its Zacks sub-industry. That discount provides a valuation cushion and leaves room for multiple expansion if operating gains prove durable.

Price-to-Earnings F12M
Image Source: Zacks Investment Research

Rithm also trades below its five-year median forward P/E of 6.1X, indicating a discount to its historical valuation. It is also inexpensive compared with Annaly and PennyMac, which trade at forward 12-month P/E multiples of 7.59X and 7.26X, respectively.

The improving earnings outlook further supports the valuation case. The Zacks Consensus Estimate for 2026 and 2027 earnings has been revised upward over the past week, suggesting analysts are becoming more constructive as collections and portfolio revenues improve.

Estimate Revision Trend
Image Source: Zacks Investment Research

RITM's Signals Temper the Momentum CaseRITM's recent rally has more operating support than price action alone suggests, but the earnings-revision and balance-sheet signals remain mixed. Asset management growth and Newrez efficiency gains are constructive, while liquidity and mortgage-servicing volatility keep the near-term case balanced.

The stock currently carries a Zacks Rank #3 (Hold), which is consistent with a neutral near-term stance. You can see  the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Value Score of B supports RITM's valuation case, but the Growth Score of F, Momentum Score of F and VGM Score of D show why caution still matters. The combination suggests RITM's case is strongest on valuation and operating momentum rather than a broad-based growth and momentum profile, making continued execution and balance-sheet discipline central to sustaining the current setup.

Key Takeaways RITM's 60-cent Q2 EAD per share more than doubled its 25-cent quarterly dividend.Asset management revenues rose 48.4% y/y to $141 million, with AUM reaching roughly $61 billion.RITM's $2.4 billion liquidity versus $40.2 billion debt raises concerns over dividend flexibility. Rithm Capital Corp. (RITM - Free Report) recently maintained its quarterly cash dividend at 25 cents per share, supporting a dividend yield of roughly 9.6%, well above the industry average of 1.6%. The significantly higher yield strengthens the stock’s income appeal.

Dividend Yield
Image Source: Zacks Investment Research

However, higher costs, elevated debt and mortgage-related volatility could pressure earnings and liquidity. For income-focused investors, the key question is whether RITM can sustain its attractive payout while managing these pressures.

RITM's Dividend Has Strong Earnings CoverageRithm’s earnings available for distribution have covered common dividends for 27 consecutive quarters, underscoring the consistency of its payout coverage.

In the second quarter of 2026, earnings available for distribution (EAD) were 60 cents per share, more than double the 25-cent quarterly dividend. The 35-cent per-share cushion provides solid coverage, despite lower GAAP earnings due to fair-value movements and other items.

Rithm's Fee-Based Growth Could Support the PayoutAsset management is becoming a larger contributor to Rithm’s earnings mix. Second-quarter asset management revenues increased 48.4% year over year to about $141 million, while assets under management (AUM) reached roughly $61 billion.

A larger fee-based business can broaden earnings sources beyond balance-sheet investing and mortgage activity. Continued asset growth and fee generation could add support for distributions, although the pace will depend on investment performance and capital formation.

RITM's Higher Costs Could Pressure Dividend FlexibilityRithm’s total operating expenses increased 34% year over year to $1.28 billion in the second quarter of 2026. The cost base has expanded following the Crestline and Paramount/Elecor acquisitions, while compensation, benefits and integration costs remain elevated.

Higher expenses could weigh on dividend flexibility. If revenue growth fails to keep pace with the expanded cost base, less excess earnings may be available to absorb market volatility or support shareholder distributions.

Rithm's Liquidity Position Adds a Key RiskRithm had about $2.4 billion of liquidity against $40.2 billion of total debt as of June 30, 2026. This liquidity-to-debt gap makes steady cash generation and continued access to financing important, particularly during periods of market volatility or economic stress.

While Rithm’s leverage supports a diversified operating platform, its liquidity position appears less robust than those of peers, Annaly Capital Management, Inc. (NLY - Free Report) and AGNC Investment Corp. (AGNC - Free Report) . NLY had $9.6 billion in assets available for financing as of June 30, 2026, including $5.5 billion in cash and unencumbered Agency MBS, while AGNC had $7.5 billion of liquidity. These stronger liquidity cushions provide greater balance-sheet flexibility during market stress, making Rithm’s sizable debt load a key risk even if distributable earnings remain sufficient to cover the dividend.

RITM's MSR Exposure Could Make Coverage VolatileNearly 20.5% of Rithm’s total assets were tied to mortgage servicing rights and related financing receivables as of June 30, 2026. The second quarter also included a $392.9 million negative fair-value adjustment on these assets, net of economic hedges.

This concentration leaves earnings exposed to interest-rate movements, mortgage spreads and prepayment trends, which can cause significant quarter-to-quarter swings. Annaly, with exposure to mortgage servicing rights, and AGNC Investment, focused primarily on Agency residential mortgage-backed securities, face similar sensitivity to changing market conditions. For Rithm, such volatility could make consistent earnings coverage of the dividend more challenging when conditions deteriorate.

RITM's Signals Keep the Income Case BalancedThe bottom line remains balanced. Rithm’s dividend is well covered by current distributable earnings, but rising costs, limited liquidity relative to debt and mortgage-servicing rights volatility remain key offsets. The 9.6% yield is attractive, but its sustainability depends on Rithm maintaining earnings power across its capital-intensive businesses.

RITM currently carries a Zacks Rank #3 (Hold), pointing to a neutral near-term earnings outlook. That fits a setup in which the dividend remains well supported, but investors may still want confirmation that earnings and liquidity can withstand market pressures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past three months, RITM shares have gained 14% against the industry’s 0.1% decline.

Price Performance
Image Source: Zacks Investment Research

Its Value Score of B supports the valuation and income profile, while its Growth Score of F and Momentum Score of F point to weaker growth and price-trend characteristics. The VGM Score of D keeps the broader style picture cautious, reinforcing the need to weigh payout strength against these offsets.

Key Takeaways Zscaler plans higher CapEx as AI adoption drives demand for more infrastructure and secure workloads.ZS posted 25% revenue growth in Q3, while AI Protect generated more than $100 million in 12-month bookings.Zscaler cut FY26 free cash flow margin guidance to 22.8%-23.3% as CapEx pressures cash flow. Zscaler, Inc. (ZS - Free Report) is preparing for higher capital expenditures as the rapid adoption of artificial intelligence (AI) creates new cybersecurity demands. The company needs to expand its infrastructure to handle increasing data volumes and secure AI workloads, but the added spending could pressure free cash flow in the near term.

Management previously indicated that fiscal 2026 capital expenditures could reach the high-single-digit percentage range of revenues, up from its earlier mid-single-digit forecast. CapEx could increase by another 200 basis points as a percentage of revenues in fiscal 2027. Higher costs for memory, storage and processors are expected to drive much of the increase. To manage these costs, Zscaler has been moving some fiscal 2027 equipment purchases into the fourth quarter of fiscal 2026 to secure current prices.

The bigger question is whether AI-driven demand can generate enough growth to justify the investment. So far, the signs are encouraging. Zscaler’s third-quarter fiscal 2026 revenues increased 25% year over year to $850.4 million, while annual recurring revenues also rose 25% to $3.53 billion. Its AI Protect solution generated more than $100 million in bookings over the past 12 months, showing that AI security is moving beyond an early-stage opportunity.

Zscaler also has enough financial strength to support higher spending. The company generated free cash flow of $136 million in the third quarter and $718.4 million in the first nine months of fiscal 2026. Free cash flow margin for the first three quarters of fiscal 2026 was 29%. However, rising capital expenditure is likely to hurt the company’s cash flow. During the last quarterly results, management lowered its fiscal 2026 free cash flow margin guidance range to 22.8%-23.3% from the earlier forecast of 26.5%-27%.

Higher CapEx creates a near-term financial headwind, but strong AI security demand could make the investment worthwhile if Zscaler converts infrastructure spending into sustained revenue growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates year-over-year revenue growth of 24.6% and 16.9%, respectively.

How Are ZS’ Rivals Investing to Capture AI Security Growth?Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) are taking a different approach to the AI security opportunity. Rather than relying heavily on physical infrastructure spending, both companies are directing more resources toward software, product development and acquisitions.

Palo Alto Networks has been expanding its AI and identity security capabilities through major acquisitions, including buyout deals for agentic security firm Portkey, endpoint specialist Koi Security, and major identity play CyberArk Software.

PANW has also been directing investment toward software integration, such as its Cortex XSIAM platform and Prisma AIRS AI Gateway. The company has also collaborated with AI infrastructure leaders like NVIDIA through which it is embedding security directly into AI infrastructure. This strategy allows Palo Alto Networks to pursue AI growth without relying primarily on higher traditional CapEx.

CrowdStrike is following a similar software-focused model. Its non-GAAP research & development spending jumped 25.3% year over year to $273.4 million in the first quarter of fiscal 2027.

The company has also strengthened its AI security portfolio through acquisitions, including SGNL in January 2026 and Pangea in September 2025. Pangea added AI detection and response capabilities to Falcon, helping CrowdStrike protect AI data, models, agents, identities and infrastructure.

Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 16.7% year to date, while the Zacks Security industry surged 85%.

Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 7.77, significantly below the industry’s average of 18.85.

Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 26.2% and 10.7%, respectively. Estimates for fiscal 2026 have remained unchanged over the past 60 days, while fiscal 2027 estimates have been revised upward in the past 30 days.

Image Source: Zacks Investment Research

Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways iRhythm will acquire VitalConnect for about $287.5 million, with closing expected by the end of 2026.VitalConnect adds MCT, multi-vitals monitoring and up to 30-day patient monitoring to iRhythm's portfolio.The deal is expected to boost iRhythm's revenue growth rate starting in 2027 and broaden its care reach.
iRhythm Holdings,Inc. (IRTC - Free Report) recently announced that it will acquire Vital Connect, Inc., a leader in wearable biosensor technology and ambulatory cardiac monitoring. The transaction is expected to expand iRhythm’s addressable market and accelerate its evolution from ambulatory cardiac monitoring into a broader cardiac monitoring and intelligence platform spanning ambulatory, inpatient and hospital-to-home care.

Per management, the acquisition marks an important milestone in iRhythm’s transition from ambulatory cardiac monitoring to a broader cardiac monitoring and intelligence platform. The addition of VitalConnect’s mobile cardiac telemetry (MCT), multi-vitals and hospital monitoring capabilities complements the Zio platform, expands the company’s patient and customer reach, and creates opportunities to accelerate growth, strengthen customer relationships and serve patients across a wider continuum of care.

Likely Trend of IRTC Stock Following the NewsShares of IRTC have lost 4% since the announcement on Aug. 6. Year to date, shares of the company have declined 30.6% against the industry’s 4.4% growth and the S&P 500’s 13.6% gain.

In the long run, the acquisition of VitalConnect could strengthen iRhythm’s growth prospects by broadening its cardiac monitoring portfolio and expanding its reach across different care settings. The combination of VitalConnect’s monitoring technologies with iRhythm’s established Zio platform and commercial infrastructure could create new revenue opportunities, strengthen relationships with healthcare providers and support wider adoption. The expanded portfolio also positions iRhythm to capture demand across ambulatory, inpatient and remote care markets, supporting its transition toward a more comprehensive cardiac monitoring platform.

IRTC currently has a market capitalization of $4.13 billion.

Image Source: Zacks Investment Research

More on the NewsThe acquisition broadens iRhythm’s cardiac monitoring capabilities by adding VitalConnect’s FDA-cleared platform, which supports multiple monitoring modalities, including MCT, as well as multi-vitals monitoring. VitalConnect offers capabilities including up to 30-day patient monitoring, four-in-one functionality, flexible service models and live look-in.

Together with Zio AT and iRhythm’s planned next-generation MCT offering, the combined portfolio is expected to provide clinicians with greater flexibility across different workflows and care settings. VitalConnect’s biosensor platform can monitor up to 11 physiological parameters, extending iRhythm’s reach into inpatient monitoring, remote patient monitoring and hospital-to-home care.

The transaction also combines complementary technology and expertise. VitalConnect contributes wearable biosensors, AI-enabled algorithms and cloud-based workflows, while iRhythm brings cardiac diagnostic expertise, clinical operations, proprietary algorithms and a scaled commercial platform. The integration could support faster product innovation and enable comprehensive solutions for health systems.

Financial Outlook of AcquisitioniRhythm will acquire VitalConnect for approximately $287.5 million, comprising $237.5 million in cash and approximately $50 million in iRhythm common stock. The company will provide up to $30 million in interim working capital financing to support VitalConnect’s operations before closing. The acquisition is anticipated to close by the end of 2026 and expected to be accretive to iRhythm’s revenue growth rate beginning in 2027.

Industry Prospects Favoring the MarketGoing by the data provided by Mordor Intelligence, the cardiac monitoring market is predicted to be valued at $29.1 billion in 2026 and is expected to witness a CAGR of 5.04% through 2035.

Factors like the rising prevalence of cardiovascular diseases, growing geriatric population, technological advances in wireless & wearable devices, expansion of AI-enabled predictive analytics, reimbursement shift to ambulatory continuous monitoring, as well as increasing awareness and screening programs for heart health, are boosting the market’s growth.

Other NewsiRhythm recently delivered strong second-quarter 2026 results with solid earnings and revenue growth. The quarter reflected broad-based commercial momentum across cardiology, primary care, innovative channels and international markets. Innovative channels were the fastest-growing area, supported by value-based care, primary care and population health partnerships.

The company secured FDA clearance for its third-generation algorithm, expected to reduce technician review time by up to 50% and generate approximately $100 million in cumulative savings over five years. iRhythm is also advancing predictive arrhythmia solutions and expanding its Zio platform.

IRTC’s Zacks Rank & Key PicksIRTC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways WM's adjusted EBITDA rose 5.5% as pricing offset a 1.8% decline in Collection and Disposal volume.WM trades above its sub-industry EV/EBITDA multiple, raising the execution bar for future performance.WM generated $2.02 billion in first-half free cash flow, up more than 56% year over year.
Waste Management, Inc. (WM - Free Report) combines a defensive waste-services franchise with improving profitability and rising cash generation. Second-quarter execution held up despite softer Collection and Disposal volumes, helped by pricing and operating efficiencies.

The question is whether that quality justifies a premium valuation while debt and near-term liquidity remain constraints. Investors must weigh durable earnings growth against the price already reflected in the shares.

WM’s Pricing Power Keeps Profitability Moving HigherWM’s second-quarter core price increased 5.7%, while Collection and Disposal yield improved 3.6%. Those gains helped offset a 1.8% decline in Collection and Disposal volume, partly reflecting the prior-year wildfire cleanup comparison.

Adjusted operating EBITDA rose 5.5% year over year to $2.07 billion, and the adjusted margin expanded 40 basis points to 30.9%. Excluding the prior-year wildfire contribution, adjusted operating EBITDA growth was 9.1%.

Waste Management Has More Than One Growth EngineRecycling and renewable energy are adding growth beyond the core collection network. Combined adjusted operating EBITDA from those businesses increased 32.5% year over year as recycling volumes, automation efficiencies and renewable natural gas production improved.

Healthcare Solutions’ operating EBITDA margin reached 19%, up 200 basis points year over year. Cross-selling had generated $32 million of annual operating EBITDA, adding another source of integration benefits.

WM’s Valuation Leaves Less Room for DisappointmentWM trades at 14.3X trailing 12-month enterprise value to EBITDA, above the Zacks sub-industry’s 12.5X and its own five-year median of 15X. It also carries a 25.7X forward price-to-earnings multiple and a PEG ratio of 2.57.

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                                                                 Image Source: Zacks Investment Research

The premium raises the execution bar. Republic Services, Inc. (RSG - Free Report) offers recycling, waste and environmental solutions. Clean Harbors, Inc. (CLH - Free Report) provides hazardous and non-hazardous material management and industrial services, giving investors another environmental-services comparison.

Waste Management Still Faces Balance Sheet PressureAt June 30, 2026, WM had $22.28 billion of long-term debt and $1.08 billion of current debt against $557 million of cash. Current assets of $5.40 billion trailed current liabilities of $5.95 billion, leaving a working-capital deficit and a current ratio of 0.91.

Leverage ended the quarter at 2.96 times, within management’s 2.5-3.0 times targeted range, with a decline expected in the second half. The absolute debt load still reduces flexibility if cash generation weakens or capital needs rise.

WM’s Cash Flow Helps Support the Bull CaseFree cash flow reached $2.02 billion in the first half of 2026, up more than 56% year over year. Operating cash flow increased more than 17% to $3.23 billion, supported by earnings growth and lower capital spending.

That cash generation supports investment and shareholder returns, but competing demands remain. WM repurchased $1 billion of shares and paid $764 million in dividends during the first half while also funding acquisitions and servicing debt.

WM’s Ratings Favor Patience Over Aggressive BuyingWM’s operating quality is evident, but its valuation and balance-sheet constraints argue for patience. Pricing, broader growth platforms and cash flow support the earnings case, while the premium multiple leaves less room for execution setbacks.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Its VGM Score of B, Growth Score of B and Momentum Score of B are constructive, while the Value Score of C is less supportive. The ratings favor a measured stance rather than an aggressive new entry.

Key Takeaways Golar LNG posted Q2 EPS of 68 cents, beating estimates and improving year over year.Q2 revenues of $130.5 million outpaced the Zacks Consensus Estimate and improved 72% year over year.GLNG's share of contractual debt at the end of the second quarter increased 31% year over year. Golar LNG Limited (GLNG - Free Report)  reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year.

Quarterly earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 30 cents and increased year over year. Revenues of $130.5 million outpaced the Zacks Consensus Estimate of $125 million and improved 72% year over year.

Adjusted EBITDA of $127.36 million improved 159% year over year.

GLNG exited the second quarter of 2026 with cash and cash equivalents of $870.47 million compared with $1.01 billion at the end of the prior quarter. GLNG’s share of contractual debt at the end of the reported quarter increased 31% to $2.68 billion.

GLNG’s board of directors approved a second-quarter 2026 dividend of 25 cents per share. The dividend will be paid on Sept. 2, 2026, to shareholders of record at the close of business on Aug. 24. As of June 30, 2026, GLNG had 102.1 million shares issued and outstanding.

Currently, GLNG sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performance of Some Other Stocks Belonging to GLNG's IndustryEni S.p.A.(E - Free Report) reported second-quarter 2026 adjusted earnings of $1.76 per American Depository Receipt, missing the Zacks Consensus Estimate of $1.90 by 7.4%. The bottom line increased 122.8% from the year-ago quarter’s 79 cents. Quarterly revenues of $26.35 billion rose 21.5% year over year and surpassed the consensus estimate of $24 billion by 9.8%.

Higher commodity realizations, production growth and stronger segment profitability supported revenues.

Chevron Corporation(CVX - Free Report) reported second-quarter 2026 adjusted earnings of $6.06 per share, which beat the Zacks Consensus Estimate of $5.80 by 4.5%. The outperformance was driven by higher commodity prices, increased upstream production following the Hess acquisition, stronger refined-product margins and higher sales volumes.

The company generated revenues of $70.06 billion. The metric beat the Zacks Consensus Estimate of $57.53 billion and increased 56.3% year over year.  The increase was primarily driven by a 51.4% year-over-year increase in sales and other operating revenues, along with a 296.5% rise in income from equity affiliates.

Key Takeaways Cheniere's second-quarter earnings beat estimates, while adjusted EBITDA increased 35.4% year over year.Cheniere's cash flow strengthened, with first-half operating cash flow reaching $1.61 billion.The SPL Expansion Project of Cheniere could add about 20 million tons of annual LNG capacity.
Cheniere Energy Partners, L.P. (CQP - Free Report) has gained 10.8% in the past month, putting the durability of that advance in focus. Recent earnings strength, improving estimates and healthy cash generation give the rally fundamental support.

Valuation and leverage raise the hurdle for further gains. Expansion at Sabine Pass adds a longer-term growth avenue, but execution, financing and commodity-linked risks remain important offsets.

CQP's One-Month Rally Has Fundamental SupportSecond-quarter earnings of $1.10 per unit beat the Zacks Consensus Estimate by 15.8%. Adjusted EBITDA increased 35.4% to $983 million, driven by higher  liquified natural gas (LNG - Free Report) margins per million British thermal units and greater volumes recognized in income.

The Zacks Consensus Estimate for 2026 earnings is $4.17 per unit and has moved 2.7% higher over the past four weeks. That combination of an earnings beat and positive estimate revisions offers a firmer backdrop for the recent price momentum.

CQP's Cash Flow and Distribution Picture StrengthenNet cash provided by operating activities reached $1.61 billion in the first half of 2026, up from $1.22 billion a year earlier. CQP also ended June with $443 million in cash and cash equivalents and total available liquidity of $2.34 billion.

The partnership reconfirmed 2026 distribution guidance of $3.10-$3.40 per common unit, including a $3.10 base distribution. The second-quarter distribution was 82 cents per unit, giving income-focused investors a cash-return component alongside the recent unit-price gain.

CQP Expansion Adds a Longer-Term Growth LeverThe proposed SPL Expansion Project could add approximately 20 million tons per annum of peak LNG production capacity, including estimated debottlenecking opportunities. In May, CQP signed a Bechtel engineering, procurement and construction contract for the first phase and authorized early engineering and procurement.

That phase includes Train 7 and a boil-off gas re-liquefaction unit with expected production capacity of more than 6 million tons per annum. Cheniere Energy, Inc. (LNG - Free Report) , CQP's parent, is also expanding its Corpus Christi platform, while Venture Global, Inc. (VG - Free Report) continues developing major U.S. LNG capacity. Those projects underscore the scale of industry investment CQP must compete with.

CQP's Valuation Raises the Bar After the RallyCQP trades at 17.4X forward 12-month earnings, above its five-year median of 14.2X but below the Zacks sub-industry multiple of 24.8X. The units therefore look less inexpensive relative to their own history even though they remain discounted to the sub-industry.

Image Source: Zacks Investment Research

That valuation makes continued execution more important. Further upside would be easier to justify if earnings estimates keep improving and cash generation remains supportive, while disappointment could make the premium to CQP's historical median harder to sustain.

CQP's Earnings Outlook Adds Support to Recent MomentumThe Zacks Consensus Estimate for CQP’s current-quarter earnings is pegged at $1.03 per unit, implying 27.2% growth from the year-ago figure of 81 cents. For the next quarter, the consensus estimate stands at $1.12 per unit, indicating a more modest year-over-year increase of 3.7%. The Zacks Consensus Estimate for 2026 earnings is $3.98 per unit, representing 8.5% growth from $3.67 in the prior year. Earnings are expected to rise another 3.1% in 2027, with the consensus estimate currently at $4.11 per unit. Still, the 2026 estimate range of $3.00-$4.84 points to considerable variation among analysts, while the 2027 range stands at $3.65-$4.71. The expected earnings growth supports CQP’s recent momentum, although the wide estimate range suggests that continued execution will remain important for sustaining investor confidence.

Image Source: Zacks Investment Research

CQP Still Faces Debt and Commodity RisksLong-term debt stood at $14.34 billion at June 30, 2026. CQP refinanced near-term maturities in June, but debt service, expansion funding and capital allocation needs still limit financial flexibility.

Long-term take-or-pay contracts support revenue visibility, yet profitability remains sensitive to LNG margins and commodity-linked economics. Global LNG competition, pending regulatory approvals and the funding needs of the SPL Expansion Project could also constrain future distribution growth.

CQP's Mixed Signals Favor Measured OptimismCQP's recent momentum has support from better quarterly earnings, positive estimate revisions, solid operating cash flow and progress on expansion. Valuation and leverage, however, argue against assuming the past month's advance will continue at the same pace.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a VGM Score of B, with a Value Score of B, Momentum Score of B and Growth Score of C. The favorable Value and Momentum scores add support to the investment case, while the Hold rank and middling Growth score fit a more balanced near-term view.

Key Takeaways Dycom's 21.2% YTD rally is backed by record backlog, strong fiber demand and improving profitability.Dycom raised fiscal 2027 revenue guidance to $7.38-$7.65B after a strong first-quarter performance.DY trades above its industry valuation, while seasonal cash flow remains negative and revisions are mixed. Dycom Industries, Inc. (DY - Free Report) has maintained solid momentum in 2026, with shares gaining 21.2% year to date. The performance is close to the Zacks Building Products - Heavy Construction industry's 23.6% rise and comfortably ahead of the Zacks Construction sector's 10.4% gain and the S&P 500 Index's 13.5% advance.

DY Price Performance (YTD)

Image Source: Zacks Investment Research

The rally has been supported by strong fiber infrastructure spending, growing data center exposure, record backlog and better profitability. Dycom's fiscal first-quarter 2027 results strengthened the case, with contract revenues jumping 56.1% year over year to $1.96 billion and organic growth reaching 24.7%. Adjusted EBITDA surged 74.6% to $262.5 million, while adjusted EPS increased 84.9% to $4.42. The adjusted EBITDA margin expanded 141 basis points to 13.4%.

Still, the stock's valuation premium and mixed estimate revisions suggest that investors should weigh Dycom's strong operating momentum against the expectations already built into the shares.

Dycom's Fiber Demand Supports Further GrowthDycom remains well-positioned to benefit from a multiyear investment cycle in broadband infrastructure. Communications revenues reached $1.57 billion in the fiscal first quarter and increased 24.7% organically, helped by fiber-to-the-home programs, long-haul and middle-mile fiber builds and growing maintenance services. Communications adjusted EBITDA increased 28% to $192.4 million, with margin improving to 12.3%.

Management continues to see strong demand for strategic multiyear fiber-to-the-home and long-haul programs. The company is also expanding geographically and investing in additional workers to support the growing workload. Dycom added 730 employees during the fiscal first quarter, underscoring the scale of the opportunity it is preparing to address.

BEAD-related spending provides another potential growth source. Management said state-level and subgrantee activity is progressing and could provide upside to backlog and the longer-term outlook.

Dycom's Record Backlog Improves VisibilityThe strength of the demand environment is especially clear in Dycom's backlog. Total backlog reached a record $11.9 billion at the end of the fiscal first quarter, rising 25% sequentially and supporting a 2.2X book-to-bill ratio. Management noted that recent awards are becoming more diversified across customers, geographies and demand drivers, while some customers are extending contract durations to secure Dycom's skilled workforce.

Of the total backlog, Communications accounted for $10.8 billion, and Building Systems represented $1.1 billion. Approximately $6.4 billion is expected to be completed over the next 12 months.

This visibility matters because Dycom is investing heavily in employees and capacity. A large committed workload reduces some of the risk associated with those investments and gives management a clearer path for sustaining growth.

Data Centers Expand Dycom's Growth RunwayBuilding Systems is becoming a meaningful second growth engine. The segment generated $395.4 million of fiscal first-quarter revenues and $70 million of adjusted EBITDA, producing a strong 17.7% margin as Power Solutions ramped faster than initially expected.

Dycom is also broadening its data center capabilities through acquisitions. The company agreed to acquire National Technology Integrators for $275 million. The business specializes in structured cabling inside data centers, along with advanced audio-visual and security systems, and has an expected initial annual revenue run rate of roughly $175 million. Its historical adjusted EBITDA margin has been in the mid-to-high teens.

The deal should complement Power Solutions and Dycom's Communications operations, allowing the company to offer infrastructure services from server racks through long-haul networks and ultimately to homes and businesses. This broader offering could create cross-selling opportunities and deepen Dycom's exposure to hyperscaler and data center investment.

Dycom Raises Fiscal 2027 OutlookFollowing the strong start, management raised its fiscal 2027 revenue outlook to $7.38-$7.65 billion, implying GAAP growth of 33.1%-37.9% and organic growth of 12.6%-15.8%. Communications revenues are projected to be $6.03-$6.20 billion, while Building Systems revenues are expected to be $1.35-$1.45 billion. Dycom also continues to expect consolidated adjusted EBITDA margin expansion.

For the fiscal second quarter, management expects revenues of $1.94-$2.01 billion, adjusted EBITDA of $284-$303 million and adjusted EPS of $4.40-$4.82. Importantly, the guidance issued with fiscal first-quarter results excluded contributions from the pending National Technology Integrators acquisition.

Consensus expectations also point to strong growth. The Zacks Consensus Estimate calls for fiscal 2027 EPS of $16.39, up from $16.35 over the past 30 days and implying 36.9% growth. Fiscal 2028 EPS is projected to rise 21.6% to $19.94, although the estimate has edged down from $19.95. Revenue estimates imply growth of 37.2% in fiscal 2027 and 13.1% in fiscal 2028.

DY EPS Estimate Revision

Image Source: Zacks Investment Research

Dycom's Valuation and Cash Flow Warrant AttentionDespite the strong outlook, valuation leaves less room for execution setbacks. Dycom trades at 22.39X forward 12-month earnings, above the industry's 21.58X. That premium is not excessive, but it suggests investors are already paying for above-industry growth.

DY Valuation (P/E F12M)

Image Source: Zacks Investment Research

Cash flow is another point to watch as Dycom invests for expansion. Operating cash outflow improved to $24.6 million in the fiscal first quarter from $54 million a year earlier, while free cash outflow narrowed to $92.1 million from $122.6 million. Dycom ended the quarter with $538.8 million in cash, $2.30 billion of notional net debt and $1.29 billion of liquidity.

Pro forma net leverage stood at roughly 2.3X adjusted EBITDA. While that provides financial flexibility, acquisitions and continued investment make leverage and cash conversion important metrics to follow.

Dycom Faces Strong Infrastructure RivalsDycom competes with MasTec (MTZ - Free Report) in broadband, fiber and wireless infrastructure, Quanta Services (PWR - Free Report) in communications and utility infrastructure and MYR Group (MYRG - Free Report) in electric utility and specialty contracting services. All three have outperformed Dycom this year. Quanta Services shares have climbed 59.4% year to date (YTD), MYR Group has gained 49.8% and MasTec has risen 31.6% compared with Dycom's 21.2% advance.

Dycom, however, offers a lower earnings multiple than all three. Its 22.39X forward P/E compares with 38.04X for Quanta Services, 25.61X for MYR Group and 25.13X for MasTec. Quanta Services commands the largest premium as investors price in its broad utility and power infrastructure exposure. MasTec also benefits from strong communications and energy infrastructure demand, while MYR Group offers substantial electric transmission and distribution exposure. Dycom's relative valuation therefore remains reasonable despite trading slightly above its own industry average.

Should Investors Chase the DY Rally?Wall Street remains highly positive on Dycom. The stock has an Average Brokerage Recommendation of 1.18, with 10 of 11 brokerage recommendations carrying a Strong Buy rating. The average price target of $631 implies roughly 54% upside from the latest closing price.
 

Image Source: Zacks Investment Research

There is good reason for that optimism. Record backlog, strong organic fiber growth, improving margins, rising data center exposure and an increased fiscal 2027 outlook provide Dycom with several paths for earnings expansion. Yet the stock already trades at a premium to its industry, cash flow remains negative on a seasonal basis and estimate revisions are not uniformly positive.

With Dycom carrying a Zacks Rank #3 (Hold), existing investors may have reason to stay invested and benefit from the multiyear digital infrastructure cycle. However, after the 21.2% YTD gain, new investors may want a more attractive entry point rather than aggressively chasing the rally at current levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The firm established a December 2027 price forecast of $400, based on about 18 times its 2028 GAAP earnings estimate of $22.42 per share. AppLovin closed Thursday at $312.67, implying about 28% upside from that level.

AppLovin Gaming Growth Faces Durability QuestionsJPMorgan called AppLovin a leading advertising technology platform for mobile gaming marketers. The company is targeting roughly 30% annual revenue growth over the longer term and adjusted EBITDA margins in the low-80% range.

However, the firm said investors are increasingly questioning how long AppLovin can sustain its rapid gaming growth. The company’s second-quarter revenue fell below the midpoint of its guidance.

Its third-quarter revenue outlook of $2.055 billion to $2.085 billion, representing 46% to 48% year-over-year growth, also fell short of investor expectations, according to JPMorgan’s conversations.

JPMorgan estimates AppLovin’s MAX mediation platform holds more than 70% of the mobile gaming mediation market. Its AppLovin Ads demand-side platform has more than 40% share.

Consumer Advertising Could Drive Next Growth PhaseAppLovin’s expansion beyond gaming could become an important growth engine. The company opened its advertising platform to all advertisers in June.

JPMorgan estimates the consumer business accounted for about 9% of second-quarter gross spend. Consumer spending increased 28% from fourth-quarter 2025 levels.

The firm forecasts consumer net revenue of $777 million in 2026, up 63% year over year, before climbing 75% to $1.4 billion in 2027. Consumer advertising would account for about 14% of total net revenue by 2027 under those estimates.

The opportunity is sizable. JPMorgan estimates the U.S. online advertising market exceeds $335 billion, with retail and consumer packaged goods representing about $140 billion, or 42%, of spending.

Still, JPMorgan said AppLovin must prove it can scale advertiser density, improve its models and demonstrate returns for consumer advertisers in a highly competitive market.

Margins Remain A StandoutDespite those execution risks, JPMorgan remains positive on AppLovin’s market position, reach across more than 1 billion daily active users and ability to improve advertiser returns.

The firm forecasts net advertising revenue of $8.1 billion in 2026, up 48% year over year, with an adjusted EBITDA margin of 84%.

JPMorgan also projects $5.2 billion in 2026 free cash flow, representing about 76% conversion from adjusted EBITDA. AppLovin has about $1.8 billion authorized for share repurchases.

For now, JPMorgan said it wants to see more consistent returns from AppLovin’s gaming model improvements and further evidence that the consumer advertising business can scale meaningfully.

AppLovin Price ActionAPP Price Action: AppLovin shares were up 2.30% at $319.84 at the time of publication on Friday, according to Benzinga Pro data.

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It has been about a month since the last earnings report for First Horizon National (FHN - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is First Horizon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

First Horizon Q2 Earnings Beat Estimates on Higher NII & Fee IncomeFirst Horizon posted second-quarter 2026 earnings per share (EPS) of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter.

Results benefited from higher net interest income and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. 

Net income available to its common shareholders was $260 million, up 12% year over year.

Revenues & Expenses RiseTotal quarterly revenues were $887 million, which increased 7% year over year. The top line surpassed the Zacks Consensus Estimate of $873.5 million.

NII increased 5% year over year to $676 million. Additionally, the net interest margin expanded 9 basis points from the prior-year quarter to 3.49%.

Non-interest income was $211 million, rising 12% year over year. The increase reflected growth in brokerage, trust and insurance income, fixed income revenues, mortgage banking revenues and deferred compensation income.

Non-interest expenses increased 8% year over year to $531 million. The rise was mainly due to higher salaries and benefits, outside services, occupancy and equipment, and deferred compensation expenses.

The efficiency ratio was 59.88%, up from 59.20% in the same quarter last year. A rise in the efficiency ratio indicates lower profitability.

Loans & Deposits Balances IncreaseTotal period-end loans and leases, net of unearned income, were $65.3 billion, up 1.5% from the end of the prior quarter. Total period-end deposits were $68.1 billion, increasing 2.4% sequentially.

Credit Quality ImprovesNon-performing loans and leases totaled roughly $531 million, down from $593 million in the prior-year quarter. The non-performing loans and leases ratio declined to 0.81% from 0.94%.

The allowance for credit losses to loans and leases ratio was 1.24%, down from 1.42% in the year-ago quarter.

Net charge-offs were $33 million, down 3% year over year. Provision for credit losses was $15 million compared with $30 million in the year-ago quarter.

Capital Ratios DeclineAs of June 30, 2026, the common equity tier 1 ratio was 10.5%, down from 11% reported at the end of the year-ago quarter.

The total capital ratio was 13.4%, down from 14% a year ago. The tier 1 leverage ratio declined slightly to 10.5% from 10.6% in the prior-year quarter.

Capital DeploymentDuring the quarter, FHN repurchased $100 million worth of shares at an average price of $24.52 per share. The company had $665 million remaining under its share repurchase authorization.

2026 OutlookAdjusted revenues, excluding deferred compensation, are expected to increase 3-7% from the 2025 baseline of $3.42 billion.

The company expects mid-single-digit balance-sheet growth, supported by commercial loan pipelines and continued relationship expansion.

Adjusted expenses, excluding deferred compensation, are projected to remain roughly flat from the 2025 baseline of $2.05 billion.

The net charge-off ratio is expected to be 0.15-0.25%, compared with 0.19% in 2025.

The effective tax rate is projected at 21-23%, although discrete items may cause quarterly variation.

The company continues to target a CET1 ratio of about 10.5%, with the level likely to vary based on loan growth and capital deployment.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, First Horizon has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Horizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.