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52-Week Range$25.89▼
$84.64Price Target$68.63
In early June, quantum computing firm IonQ Inc. NYSE: IONQ faced some unusual scrutiny from a specific corner of the social media space. Martin Shkreli, the notorious former pharma CEO and convicted fraudster, claimed via a post on X that the company had made a seemingly outlandish claim about cryptocurrencies. Shkreli alleged that IonQ had privately told unnamed companies or investors that its quantum technology would make it possible to mine all remaining Bitcoin in a very short time span.
While IonQ's shares settled down about 3% over the five days of trading following Shkreli's allegation, it doesn't seem to have hampered the stock's performance overall—IONQ is still up about 28% year-to-date (YTD). What the incident may reveal, however, is a potential shift in the balance of power as quantum computing technology accelerates, and a glimpse into how a company like IonQ may one day transform other industries.
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The Latest Interaction Between Cryptocurrency and QuantumRegardless of the veracity of the post in question, this incident constitutes one of the most recent and prominent intersections of the worlds of cryptocurrency and quantum computing. Quantum bulls may increasingly believe that quantum computing will make the crypto world, as it currently exists, obsolete. Recently, a report from Alphabet Inc. NASDAQ: GOOGL identified a so-called "Q-Day" that may be fast approaching, at which point quantum technology will be powerful enough to essentially nullify the cryptographic security processes essential to crypto.
IonQ's alleged claim would pose a different but similarly significant threat to cryptocurrencies: the idea that quantum technology would be so powerful as to be able to solve the complex cryptographic problems necessary to mine all remaining Bitcoin in a short period of time (instead of the many, many years anticipated with traditional computing approaches). To be fair, though, it does not appear that IonQ has publicly made this claim to date.
A Potential Acceleration in the Transformative Power of QuantumSo far, the impact of quantum computing on the cryptocurrency space appears negligible. However, there is clear anticipation among many investors and analysts that quantum technology may reach a point where it becomes a critical factor in how cryptocurrency is structured, created, and used. Taken more broadly, this could be a sign of the overall transformative power of a technology that is still under development.
IonQ's work in pursuit of goals like this could accelerate as the company prepares to acquire SkyWater Technology Solutions Inc. NASDAQ: SKYT, a $1.8-billion deal announced in January 2026 and which appears to still be on track to close by Q3 2026.
The acquisition may be transformative for IonQ, as it will integrate into the quantum firm's operations a pure-play semiconductor foundry located in the United States. IonQ aims to be a fully vertically-integrated quantum platform company, a move that would set it apart from essentially every other pure-play quantum firm (and even some legacy tech giants with quantum operations).
The move to fold foundry operations into IonQ's business may be coming at a pivotal moment for quantum, as a few more tech titans have recently indicated plans to beef up their quantum operations (including, in some cases, via manufacturing). Further, IonQ wasn't among the companies listed by the Commerce Department as recipients of $2 billion in total funding for domestic quantum firms earlier in the quarter, putting it at a disadvantage.
Overall MarketRank™59th Percentile
Analyst RatingModerate Buy
Upside/Downside10.9% Upside
Short Interest LevelHealthy
Dividend StrengthN/A
News Sentiment0.71 Insider TradingSelling Shares
Proj. Earnings GrowthGrowing
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Investors may want to keep an eye on IonQ's ability to maintain its revenue growth amid these new developments. For Q1 2026, the company noted impressive (and record) revenue of nearly $65 million, up more than 700% year-over-year (YOY), with major commercial traction developing as well. The company's continued success—as well as its ability to keep adding to its roughly $3-billion pile of cash, which helps to make deals like the SkyWater purchase possible—will be dependent upon whether it can further accelerate that growth.
One of the other considerations for investors is how much of its transformative potential—whether for crypto or any other industry—is already included in its valuation. With a price-to-sales ratio of nearly 180, IONQ stock is certainly not cheap. That said, despite its significant increase in price YTD, IONQ may still have more room to rally. Analysts see a consensus price target of $68.63, which is still around another 11% above where shares currently trade. On top of that, Wall Street is largely optimistic about the stock, assigning 10 Buys compared to seven Hold or Sell ratings.
Should You Invest $1,000 in IonQ Right Now?Before you consider IonQ, you'll want to hear this.
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IonQ (IONQ +8.52%) stock jumped 7.3% through 11:45 a.m. ET Monday -- and believe it or not, you can thank an IonQ rival, D-Wave Quantum (QBTS +14.51%) for that.
More precisely, you can thank D-Wave and the banker who just praised it.
Image source: Getty Images.
Mizuho loves D-Wave Quantum stock Mizuho analyst Vijay Rakesh raised his price target on D-Wave by 20% today, to $35 per share. Rakesh praised D-Wave's plan to build a gate-based quantum computer with 10 logical qubits (LQ) by 2030, then scale to 100 LQ by 2032, while improving error rates. He also liked D-Wave's prediction that quantum could grow into a $450 billion to $850 billion market by 2040, and declared D-Wave a leader in this market.
Rakesh, however, said nothing about IonQ.
Worse, roughly two months ago, Rakesh lowered his price target on IonQ stock to $61 per share, with StreetInsider.com reporting that, while the analyst said IonQ is "gaining traction with multiple players" and improving its own error correction, quantum remains in "early stages."
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Is IonQ stock better or worse than D-Wave stock? When investing in quantum computing stocks, it's important not to get too caught up in the excitement of analyst upgrades and downgrades, price target hikes, and cuts. Wall Street is tracking a moving target in this industry, and Mizuho is right -- it's hard to pick winners so early in the game.
Big picture, the thing to always keep in mind is this: No one on Wall Street expects either IonQ or D-Wave stock to turn a profit as far out as any analysts are willing to make predictions. Whether they ultimately succeed or fail, both these companies will lose money for at least the next five years.
Check your risk tolerance before investing, and be prepared to be very, very patient.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.
Western Alliance Bancorporation (NYSE: WAL) the parent company of Western Alliance Bank, announced today that Kenneth A. Vecchione, President and Chief Executive Officer, has been appointed Chairman of its Board of Directors, effective as of June 10, 2026. Mr. Vecchione succeeds Bruce Beach, who will continue to serve as a Director and return to the role of Lead Independent Director, which he held from 2010 to 2022.
“Ken has led the company through a number of important milestones in the company’s history during the past eight years as CEO and in two separate tenures as President,” Beach said. “His stewardship has been instrumental in navigating our growth from a small, regionally focused bank to one of the largest commercial banking companies in the U.S. We appreciate his continued commitment to the company and are excited he has agreed to assume this expanded role on our Board of Directors.”
“Bruce brings deep institutional knowledge and proven leadership to the Lead Independent Director role,” said Don Snyder, Chair of the Board’s Nominating and Corporate Governance Committee. “The independent directors have strong confidence in his ability to provide effective oversight and support the Board’s continued focus on performance and accountability.”
Mr. Vecchione was appointed CEO in April 2018 after rejoining the Company in July 2017 as President. He has served in a variety of executive roles in large financial institutions over the past 36 years along with a number of board directorships, including the past 19 years as a Director of Western Alliance.
“It has been my honor to lead Western Alliance through a significant growth period as it has developed into a larger, diversified franchise,” Vecchione said. “As discussed at our recent, inaugural Investor Day, I am proud of the foundation we have built and am eager to lead us through the next phase of our growth and evolution. We are well-positioned to continue generating strong financial results for our shareholders and serving the needs of our extensive client base. I also want to thank Bruce for his four years of service as our Chairman. I appreciate his counsel and am grateful he will continue to serve the Company as a Lead Independent Director.”
About Western Alliance Bancorporation
Western Alliance Bancorporation (NYSE: WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With over $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Mid-Cap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260615498168/en/
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kimco Realty (KIM - Free Report) is headquartered in Jericho, and is in the Finance sector. The stock has seen a price change of 27.82% since the start of the year. Currently paying a dividend of $0.26 per share, the company has a dividend yield of 4.01%. In comparison, the REIT and Equity Trust - Retail industry's yield is 3.8%, while the S&P 500's yield is 1.41%.
Looking at dividend growth, the company's current annualized dividend of $1.04 is up 3% from last year. Over the last 5 years, Kimco Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 14.37%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Kimco Realty's current payout ratio is 58%, meaning it paid out 58% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, KIM expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $1.83 per share, which represents a year-over-year growth rate of 3.98%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, KIM is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Nuvei has agreed to acquire Nasdaq-listed Payoneer Global (NASDAQ:PAYO) in an all-cash deal valuing the cross-border payments company at approximately $2.75 billion, sending Payoneer shares up 4.1%.
Under the terms of the agreement, Nuvei will pay $7.40 per share for all outstanding common stock of Payoneer.
The acquisition would combine Nuvei's payment acceptance capabilities with Payoneer's cross-border payouts, multi-currency accounts and banking network, and same-day and real-time settlement across more than 150 markets.
"The acquisition of Payoneer marks a defining step in Nuvei's evolution into a global financial infrastructure leader," said Phil Fayer, CEO of Nuvei.
Together, the companies would serve customers operating across major digital commerce platforms including Amazon, eBay, Walmart, Airbnb and Shopify.
The deal also brings Payoneer's regulatory footprint, which includes licensing for online payment services in mainland China and authorization in principle as a cross-border payment aggregator in India.
The transaction has been approved by both boards and is expected to close in mid-2027.
Halper Sadeh LLC, an investor rights law firm, is investigating the sale of Payoneer Global Inc. (NASDAQ: PAYO) to Nuvei for $7.40 per share in cash.
Halper Sadeh encourages Payoneer shareholders to click here to learn more about their rights and optionsor contact Daniel Sadeh or Zachary Halper free of charge at (212) 763-0060 or [email protected] or [email protected].
The investigation concerns whether Payoneer and its board of directors violated the federal securities laws and/or breached their fiduciary duties by failing to: (1) obtain the best possible price for Payoneer shareholders; (2) conduct a fair sales process free of any conflicts of interests; and (3) disclose all material information for Payoneer shareholders to evaluate the transaction.
On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief and benefits.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260615872183/en/
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Ademi LLP is investigating Payoneer (NASDAQ: PAYO) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Nuvei.
Click here to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you.
Payoneer stockholders will receive $7.40 per share in cash, representing a total transaction equity value of approximately $2.75 billion. Payoneer insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for Payoneer by imposing a significant penalty if Payoneer accepts a competing bid. We are investigating the conduct of the Payoneer board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.
Nuvei plans to create a global platform for local and cross-border commerce by acquiring Payoneer for $2.75 billion.
The companies have entered into a definitive agreement for the acquisition and expect the transaction to close in mid-2027, subject to approval by Payoneer’s shareholders, regulatory approvals and other customary closing conditions, they said in a Monday (June 15) press release.
The planned acquisition will combine Nuvei’s payment acceptance capabilities and Payoneer’s cross-border payouts, multi-currency accounts and banking network, same-day and real-time settlement in 150 markets, and regulatory footprint across major jurisdictions around the world, according to the release.
This combination will create an always-on, unified financial infrastructure built on trusted rails and will strengthen Nuvei’s ability to support agentic commerce, stablecoin payments, platform-native financial services and other emerging financial models, per the release.
Nuvei Chairman and CEO Phil Fayer said in the release that the acquisition furthers the company’s evolution into a leader in global financial infrastructure.
“By combining complementary capabilities, we can offer businesses a more complete platform to accept payments, send funds, issue cards, manage treasury and FX [foreign exchange] needs, and access embedded financial services — at scale,” Fayer said.
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Payoneer CEO John Caplan said in the release that Payoneer has earned the trust of millions of businesses over two decades and that the combination with Nuvei will extend what Payoneer can offer customers.
“Together, we will reach more businesses, in more markets, with a more complete platform,” Caplan said.
It was reported June 9 that Nuvei was in talks to acquire Payoneer. The report said that payments firms are increasingly looking to scale through mergers and acquisitions, along with exposure to faster-growing segments such as cross-border and B2B payments, as growth in traditional payment processing slows.
In some other recent moves, Nuvei received approval to operate under the European Union’s new regulatory framework for cryptocurrency, boosted its global processing capabilities by migrating core services to Microsoft Azure, and began processing merchant transactions via Wero, the European Payment Initiative’s digital wallet that delivers instant account-to-account payments across Europe.
Meanwhile, Payoneer announced in February that it applied to the Office of the Comptroller of the Currency to open a digital bank and that it added stablecoin capabilities for cross-border businesses.
enGene Therapeutics Inc. (Nasdaq: ENGN, âenGeneâ or the âCompanyâ), a clinical-stage, non-viral genetic medicines company today announced its financial
Investors interested in Steel - Producers stocks are likely familiar with Ternium S.A. (TX - Free Report) and Commercial Metals (CMC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Ternium S.A. has a Zacks Rank of #2 (Buy), while Commercial Metals has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TX has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TX currently has a forward P/E ratio of 10.48, while CMC has a forward P/E of 12.16. We also note that TX has a PEG ratio of 0.20. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CMC currently has a PEG ratio of 0.47.
Another notable valuation metric for TX is its P/B ratio of 0.6. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CMC has a P/B of 1.96.
Based on these metrics and many more, TX holds a Value grade of A, while CMC has a Value grade of C.
TX has seen stronger estimate revision activity and sports more attractive valuation metrics than CMC, so it seems like value investors will conclude that TX is the superior option right now.
Investors might want to bet on Enpro (NPO - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Enpro is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Enpro, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for EnproFor the fiscal year ending December 2026, this industrial products maker is expected to earn $9.14 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Enpro. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Enpro to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways A U.S.-Iran framework deal may reopen Hormuz, boosting oil supply and weighing on crude prices.VLO expects strong refining margins as spare capacity is limited and fuel inventories remain low.MPC can process cheaper U.S. and Canadian crude to produce diesel and jet fuels in demand. The United States and Iran have agreed on a framework deal to end the war and eventually reopen the Strait of Hormuz, which is responsible for the passage of significant oil volumes that are consumed across the globe. The signing of the deal will likely be on Friday in Switzerland, according to Pakistan Prime Minister Shehbaz Sharif. So, once the oil starts flowing, there will be more supply, leading to declining commodity prices. Amid the backdrop, should you bet on the two leading refiners, Valero Energy Corporation (VLO - Free Report) and Marathon Petroleum Corp. (MPC - Free Report) ? Let’s delve deeper.
Oil Price Slipped to $80: Why?The price of West Texas Intermediate crude is now hovering around the $80-per-barrel benchmark, reflecting a sharp decline from the more than $100 per barrel mark a month ago. The peace deal that will likely be signed officially soon is strongly backing the decline in the commodity price.
Although the price of oil is still high, it’s just more than 20% decline, which is definitely having a much bigger impact on the energy business landscape.
Constrained Global Refining CapacityThe global refining capacity is constrained, and fuel inventories are low. On the demand side, gasoline, diesel and jet fuel remain resilient. This means people are still driving and flying quite often, while diesel demand suggests transportation, freight, agriculture and industrial activity are still holding up. As a result, with busy refineries and fuel not in abundant supply, refining margins for refiners are quite strong.
Thus, with crude prices dropping significantly, investors should allocate their money to refining players like Valero Energy and Marathon Petroleum, even though the pricing environment of crude oil is still highly profitable for exploration and production activities. This is because, with plummeting oil prices, refiners’ input costs have declined considerably.
2 Refiners in the Spotlight: VLO, MPC
Valero Energy expects to generate strong refining margins as the world has very little spare refining capacity, while inventories of refined products such as gasoline, jet fuel and diesel are low. VLO will likely benefit from strong demand and tight supply, given its large, complex refineries with the capacity to process discounted heavy sour crude oil.
Valero Energy, sporting a Zacks Rank #1 (Strong Buy), has jumped 11.3% in three months and could see further upside.
Marathon Petroleum runs refining systems that are the largest in the United States. With high utilization of refineries, Marathon Petroleum is well-positioned to capture almost all of the available profitable opportunities. On its first-quarter earnings call, the leading refining player mentioned that roughly 6% of the world’s ability to produce finished fuels went offline due to the conflicts in the Middle East.
Investors should note that the company has the capability of processing cheaper crude from the United States and Canada to produce diesel and jet fuels that are in high demand. The firm currently sports a Zacks Rank of 1 and may have room for further gains. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways FIVE expands social media efforts with a more data-driven approach to consumer trends.FIVE uses AI-generated ads, direct marketing and in-store activations to engage shoppers.FIVE strengthens digital engagement through email growth and targeted outreach to younger consumers. Five Below, Inc. (FIVE - Free Report) indicated that the company’s shift toward social media advertising has increased its engagement with digital platforms and consumer trends. As media spending moves toward social channels, teams are placing greater emphasis on monitoring and analyzing activity across these platforms. While the company had previously tracked social trends, it is now taking a more focused and data-driven approach to better understand consumer behavior and enhance marketing effectiveness.
The company’s sales growth was supported by its ability to capitalize on social trends and engage customers through social media, direct marketing and in-store activations. It also utilized AI-generated content in connected TV commercials centered on seasonal themes. Additionally, the company made significant progress in building its e-mail database, strengthening its ability to deliver targeted digital marketing and foster more personalized relationships with customers.
Five Below attributed sales growth to its ability to engage with social trends and amplify its reach across multiple channels. By adopting a social-first marketing approach, the company has become more responsive and relevant in messaging to Gen Alpha, Gen Z and millennial mom communities. Marketing efforts now span social media, direct marketing and in-store activations, expanding customer engagement opportunities. The company also benefited from higher customer tax refunds and leveraged its value-focused positioning to offer aspirational products at accessible price points.
Management emphasized the agility and effectiveness of these channels in driving customer engagement and advertising returns. Positive early outcomes have increased confidence in expanding these efforts, while maintaining a disciplined test-and-learn approach to new initiatives. Overall, Five Below’s social-first strategy, AI-driven marketing and expanding digital engagement are strengthening brand awareness, helping the company connect with younger consumers and drive sustainable sales growth.
The Zacks Rundown for FIVEThe company’s shares have gained 12.3% in the past six months against the industry’s 17.5% decline. FIVE currently sports a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
From a valuation standpoint, FIVE trades at a forward price-to-earnings ratio of 21.54, higher than the industry’s average of 14.66.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for FIVE’s current and next fiscal year earnings per share implies a year-over-year rise of 30.4% and 10.8%, respectively.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks have been discussed below:
Victoria’s Secret & Co. (VSXY - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSXY flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings suggests growth of 8.8% and 53.7%, respectively, from the year-ago reported numbers. VSXY delivered a trailing four-quarter earnings surprise of 55.1%, on average.
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia and internationally. At present, TPR carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Fossil Group, Inc. (FOSL - Free Report) designs, develops, markets and distributes consumer fashion accessories in the United States, Europe, Asia and internationally. At present, FOSL carries a Zacks Rank of 2.
The Zacks Consensus Estimate for FOSL’s current fiscal-year sales indicates a decline of 4.9%, while the same for earnings suggests growth of 87.6% from the year-ago reported figures. FOSL delivered a trailing four-quarter negative earnings surprise of 381.8%, on average.
Key Takeaways Constellium's Q1 growth was fueled by strength in packaging, aerospace and automotive markets.AA expanded capacity, lifted aluminum sales and invested in recycled aluminum production.CSTM authorized a $300M buyback program and outperformed AA shares over six months. Constellium SE (CSTM - Free Report) and Alcoa Corporation (AA - Free Report) are leading players in the aluminum industry, backed by extensive global operations and diversified business portfolios. With aluminum prices staying elevated amid ongoing economic uncertainty and trade-related challenges, comparing these companies can help investors evaluate opportunities within the Zacks Metal Products - Distribution industry.
Aluminum has become an attractive investment opportunity in recent years, supported by growing demand from lightweight and energy-efficient electric vehicles, increased adoption of recycled aluminum and advancements in rechargeable battery technologies. Demand for the metal continues to increase as industries focus on sustainability and efficiency. The ongoing recovery and expansion of global air travel have led aircraft manufacturers to ramp up production, driving demand for aluminum alloys used in aircraft fuselages and wings.
Against this backdrop, let’s take a closer look at both the companies’ fundamentals, growth prospects and challenges to find out which one is a better investment today.
The Case for ConstelliumConstellium’s Packaging & Automotive Rolled Products segment continues to be a key growth driver for the business. In the first quarter of 2026, revenues from the segment surged 24%, driven by higher metal prices. An increase in orders for packaging rolled products is also driving the segment’s performance.
Also, strength in the Aerospace & Transportation segment is aiding CSTM. The segment’s shipments increased 18% to 60 thousand metric tons in the first quarter, driven by higher shipments of aerospace and transportation, industry and defense (TID) rolled products. Revenues from the segment increased 30% to nearly $609 million, supported by strong shipments and metal prices.
The company’s Automotive Structures & Industry segment’s revenues grew 9% to approximately $415 million, supported by higher metal prices.
CSTM also remains committed to rewarding its shareholders handsomely through share buybacks. For instance, it generated a solid free cash flow of $5 million in the first three months of 2026 and returned approximately $28 million to shareholders through share repurchases.
It’s worth noting that the company’s board authorized a new share buyback program recently to repurchase up to $300 million worth of shares. This program will be effective from May 21, 2026, till Dec. 31, 2028. CSTM ended the quarter with leverage of 2.2x, remaining within the company’s target range of 1.5-2.5x.
However, Constellium has been witnessing the impacts of escalating costs and expenses over time. In the first quarter, the cost of sales increased 18.9% year over year. Selling, general and administrative expenses also rose 24.4% in the year. The increase in operating expenses, if not controlled, might adversely impact the company’s margins in the quarters ahead.
The Case for AlcoaAlcoa is gaining from strength in its Aluminum segment, driven by healthy demand across packaging, electrical and transportation end markets. The segment’s production capacity has expanded following the restart of the San Ciprián smelter in Spain, Alumar in Brazil and Lista in Norway. In the first quarter of 2026, the Aluminum segment’s third-party sales rose to $2.54 billion from $1.91 billion reported in the prior-year quarter.
In May 2026, Alcoa announced a $65 million investment to enhance production capabilities at its Mosjøen smelter in Norway. The project will enable the integration of recycled aluminum into the casting process and increase production capacity by up to 75,000 metric tons. The investment is expected to strengthen Alcoa’s low-carbon aluminum portfolio, improve alloy flexibility and help meet growing demand from the automotive and packaging sectors across Europe. The expansion will be carried out in phases, with commissioning and production ramp-up anticipated through 2028.
The company is also gaining from U.S. tariffs on imported aluminum, which have strengthened domestic market conditions. In June 2025, the U.S. administration increased tariffs on imported aluminum to 50% as a measure to correct trade imbalances and boost the domestic industry. The move has also increased aluminum prices, thus benefiting domestic producers like Alcoa. For first-quarter 2026, aluminum product sales rose to $2.58 billion from $1.96 billion in the year-ago quarter.
Its Alumina segment is poised to gain from higher alumina shipments, driven by the restart of San Ciprián smelter. AA expects alumina production in 2026 to be in the range of 9.7-9.9 million tons, while shipments are anticipated to be 11.8-12.0 million tons.
However, Alcoa has been witnessing the impacts of escalating costs and expenses over time. In the first quarter, the cost of sales increased 3% year over year. The metric, as a percentage of net sales, increased 630 bps to 78.7%. Selling, general and administrative expenses also rose 16.9% in the year. The increase in operating expenses, if not controlled, might adversely impact the company’s margins in the quarters ahead.
The company’s high debt level also remains concerning. AA exited the first quarter with a total debt of $2.55 billion compared with $2.45 billion reported at the end of fourth-quarter 2025. Considering its high debt level, its cash and cash equivalents of $1.35 billion do not look impressive.
How Does the Zacks Consensus Estimate Compare for CSTM & AA?The Zacks Consensus Estimate for CSTM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 26.3% and 74%, respectively. The company’s EPS estimates for 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
While the consensus estimate for Alcoa’s 2026 sales implies year-over-year growth of 21.4%, the same for EPS indicates an increase of 109.3%. AA’s EPS estimates have been trending upward over the past 60 days for 2026.
Image Source: Zacks Investment Research
Price Performance and Valuation of CSTM & AAIn the past six months, Constellium’s shares have surged 92.4%, while Alcoa stock has gained 47.7%.
Image Source: Zacks Investment Research
Constellium is trading at a forward 12-month price-to-earnings ratio of 11.57X compared with its median of 10.04X over the last three years. Alcoa is trading at a forward 12-month price-to-earnings ratio of 8.71X, below its median of 11.56X over the last five years.
Image Source: Zacks Investment Research
Final TakeConstellium is seeing strong growth across its key business segments, supported by higher aluminum prices. Also, the company’s shareholder-friendly policies bode well for strong growth in the quarters ahead.
Alcoa is benefiting from strong demand across key end markets and expanded production capacity, supported by smelter restarts and investments in low-carbon aluminum. However, rising operating costs and a high debt burden remain key concerns for its margins.
Given these factors, CSTM seems a better pick for investors than AA currently. While Constellium sports a Zacks Rank #1 (Strong Buy), Alcoa currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Ulta Beauty posts 5.3% comparable sales growth, led by e-commerce and store performance.Ulta Beauty expands digital capabilities with TikTok Shop, AI tools and same-day delivery options. ULTA grows loyalty membership to nearly 47 million, supporting personalization and engagement. Ulta Beauty, Inc.'s (ULTA - Free Report) omnichannel strategy is a key contributor to first-quarter fiscal 2026 performance. The company reported a 5.3% increase in comparable sales, supported by broad-based growth across all channels. E-commerce was a notable driver, delivering mid-teens sales growth in the quarter, while physical stores also contributed with low single-digit growth. Management emphasized that the balanced performance across digital and store channels underscores the strength of its omnichannel approach.
To enhance the digital guest experience, Ulta Beauty expanded its same-day delivery options through Uber Eats and introduced Buy Now, Pay Later functionality via Klarna. A significant strategic milestone was the launch of a TikTok Shop, featuring exclusive brands and a shoppable live stream that garnered over 5 million impressions. This initiative is designed to position Ulta Beauty at a critical discovery point for younger consumers. Furthermore, the company is leveraging AI through the introduction of an online shopping agent, Ulta AI, and integration with Google’s Gemini to enable agentic commerce.
Physical stores remain a cornerstone of the strategy, with 16 net new stores opened during the quarter. These locations were supported by major promotional events like 21+ Days of Beauty, and the company announced a new highly experiential Times Square flagship slated to open in late 2027 to further drive brand awareness.
The omnichannel ecosystem is unified by the Ulta Beauty Rewards program, which grew 4% year-over-year to nearly 47 million members. By utilizing this vast first-party data, Ulta Beauty is enhancing personalization to predict replenishment needs and maximize cart conversions. Management emphasized that this integrated approach allows guests to browse, buy, and fulfill purchases in the way that best fits their lifestyles. Overall, Ulta Beauty’s integrated omnichannel ecosystem, powered by AI, personalization and loyalty, positions the company to drive sustained customer engagement and growth.
The Zacks Rundown for ULTAThe company’s shares have lost 0.9% in the past year compared with the industry’s 4.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, ULTA trades at a forward price-to-earnings ratio of 15.64, higher than the industry’s average of 14.66. ULTA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ULTA’s current and next fiscal year earnings per share implies a year-over-year rise of 11.8% and 11.3%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 13.8% and 30.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.
The Estée Lauder Companies Inc. (EL - Free Report) manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. At present, EL sports a Zacks Rank of 1.
The Zacks Consensus Estimate for EL’s current fiscal-year sales and earnings indicates growth of 4.5% and 59.6%, respectively, from the year-ago figures. EL delivered a trailing four-quarter earnings surprise of 39.1%, on average.
Interparfums, Inc. (IPAR - Free Report) manufactures, markets, and distributes a range of fragrances and fragrance-related products in the United States and internationally. At present, the company holds a Zacks Rank of 2 (Buy).
The consensus estimate for Interparfums’ current fiscal-year sales and earnings implies a decline of 0.1% and 8%, respectively, from the year-ago figures. IPAR delivered a trailing four-quarter earnings surprise of 8%, on average.
Key Takeaways OKTA subscription revenues rise 11% to $750M as total revenues grows 11% to $765M with 20K customers.Large enterprises drive OKTA growth as 85% of ACV, up from 80%, with 100K ACV customers up 6% YoY.New OKTA products drive ~25% of bookings, led by Identity Governance and Privileged Access strength. Okta (OKTA - Free Report) is benefiting from strong subscription revenue growth, which has become the key growth driver of the company’s financial performance. For the first quarter of fiscal 2027, revenues increased 11% year over year to $765 million. The uptick can be attributed to steady subscription momentum, as subscription revenues increased 11% year over year to $750 million and continued to account for the vast majority of the top line.
This growth is largely attributed to the durability of Okta’s core business, with both the Okta and Auth0 platforms contributing to steady momentum across a diverse and expanding customer base. In the first quarter of fiscal 2027, Okta reported more than 20,000 total customers and 5,180 customers now spending more than $100,000 annually.
The company’s expanding product lineup plays an important role in driving growth. Newer offerings accounted for nearly 25% of first-quarter bookings, reflecting rising customer interest in solutions beyond basic identity management. Identity Governance remained the strongest-performing new product, while Privileged Access delivered encouraging results. Customers are increasingly turning to Okta for a broader set of identity and security needs.
A key driver behind Okta’s subscription growth is its ability to land and expand within large enterprises. Large enterprises now represent 85% of Okta’s annual contract value, up from 80%, reflecting the company’s successful focus on high-value clients. The number of customers with annual contract values exceeding $100,000 grew 6% year over year, highlighting Okta’s success in upselling and cross-selling its broadening portfolio of identity products.
Okta remains confident about its prospects. The company expects revenues to grow 9-10% in fiscal 2027, supported by continued adoption of newer products, expanding enterprise relationships and stronger partner contributions. In addition, management highlighted significant interest in its AI-related offerings, which could create another avenue for long-term subscription revenue growth.
OKTA Faces Tough Competition in the Security SpaceIn the security domain, Okta is facing stiff competition from the likes of SentinelOne (S - Free Report) and Palo Alto Networks (PANW - Free Report) .
While OKTA offers cloud-based identity solutions, SentinelOne focuses on endpoint security, cloud security and threat detection, through its Singularity Platform, which leverages a unified security data lake and Purple AI, its Generative AI engine. Singularity, a complete AI-native platform, benefits from SentinelOne’s AI and automation-driven approach.
Palo Alto Networks’ broad cybersecurity platform and platformization strategy continue to drive growth across its business. The company remains the fastest-growing provider in the SASE market. SASE ARR reaching $1.6 billion in the third fiscal quarter of 2026, up 40% year over year, fueled by strong customer demand for unified security across hybrid workforces and AI applications. The company is also benefiting from increasing adoption of AI security, network security and platform-based solutions as enterprises expand AI deployments and seek consolidated cybersecurity architectures.
OKTA’s Share Price Performance, Valuation & EstimatesOkta shares have appreciated 35.6% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector's 16.5% gain but underperforming the Zacks Security industry’s 41.9% growth.
OKTA Stock’s Price Performance
Image Source: Zacks Investment Research
The Okta stock is currently undervalued, as suggested by a Value Score of D. In terms of forward 12-month Price/Sales, Okta is trading at a ratio of 6.11X, slightly lower than the broader Zacks Computer and Technology sector’s 6.54X.
OKTA Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $3.83 per share, up 2.4% over the past 30 days, suggesting 1.1% growth from the fiscal 2026 reported figure.
Okta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WEST PALM BEACH, FL / ACCESS Newswire / June 15, 2026 / Elektros Inc. (OTC Markets:ELEK), a publicly traded company focused on electrification opportunities, today provided an update regarding its continued focus on hard rock lithium opportunities, patented electric vehicle charging technology, and strategic initiatives supporting the future of transportation, energy infrastructure, and critical minerals.
As global demand for electric vehicles, battery storage systems, and electrification technologies continues to expand, Elektros remains committed to identifying opportunities associated with lithium resources and technologies that may support long-term growth within the evolving energy marketplace.
"Our vision remains centered on the future of energy, transportation, and critical minerals," stated Shlomo Bleier, Chief Executive Officer of Elektros Inc. "We believe electrification continues to be one of the most significant global trends of our generation, creating opportunities across lithium, energy infrastructure, and advanced transportation technologies."
Lithium continues to play an essential role in modern electric vehicle batteries and energy storage systems. Bloomberg and numerous industry analysts have highlighted lithium's importance in supporting the global transition toward electric transportation and renewable energy infrastructure. Tesla CEO Elon Musk has also publicly emphasized the importance of reliable lithium supplies to support continued electric vehicle production worldwide.
The Company's patented electric vehicle charging technology, protected by U.S. Patent No. 12,522,100, relates to multi-port charging technology designed for electric vehicle charging applications and reflects Elektros' continued focus on innovation.
As part of its intellectual property strategy, Elektros has communicated with various automotive industry participants regarding its patented technology. The Company recently received correspondence from counsel representing Volkswagen Group of America acknowledging receipt of the Company's patent-related communication and indicating the matter would be reviewed internally. Such correspondence does not constitute an admission of infringement, liability, licensing, or any commercial agreement.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable federal securities laws. Actual results may differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
"The pace of progress in sustainable transport and energy storage is directly tied to reliable battery materials, and lithium remains a critical component for electric vehicles worldwide." - Elon Musk, CEO of Tesla
Key Takeaways Coherent trades at 48.27X forward P/E, more than double the industry average of 21.76X.COHR's 1.03 PEG sits near equilibrium and below the industry's 1.12, suggesting a relative discount.Coherent's margins expanded as it shifted from industrial lasers to higher-margin AI infrastructure. Coherent Corp. (COHR - Free Report) is currently trading at a 12-month forward price-to-earnings (P/E) multiple of 48.27X, more than double the industry average of 21.76X. While traditionally this is a case of overvaluation, its P/E-to-growth (PEG) ratio suggests otherwise. COHR’s 1.03 PEG is closer to 1, suggesting perfect equilibrium between valuation multiple and anticipated growth. Moreover, the industry’s PEG is at 1.12, implying Coherent’s relative discount to its peers.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
To validate the stock’s justified premium, we need to look beyond basic growth rates and evaluate the structural quality of earnings. In the third quarter of fiscal 2026, Coherent’s gross margin expanded 71 basis points (bps) sequentially and 243 bps on a year-over-year basis. This upward trajectory highlights the company’s shift from a lower-margin industrial lasers business to a higher-margin AI infrastructure.
Coherent’s operating margin moved up 20 bps sequentially and 633 bps on a year-over-year basis, hinting at an immense enhancement in its operational prowess. Such progress is a classic case of revenue growth dropping to the operating profit at an exponential rate. A swift increase in profits can reduce the forward P/E, making the stock highly appealing to investors.
A negative free cash flow (FCF) of $383 million as of the end of March 2026 can be a waving red flag for a pricey stock. However, Coherent deals with the AI infrastructure boom, which means that the negative FCF is constructive. CapEx hit the $290-million mark as of the end of the third quarter of fiscal 2026 to construct cleanrooms and double its internal manufacturing capacity, which is a strategic response to growing demands.
Coherent’s margin expansion and negative FCF demonstrate massive scale-up to dominate the AI transceiver market. A $2-billion equity investment from NVIDIA mitigates the financial risks of cash burn. COHR’s premium is tied to its ability to pivot from a negative FCF to a positive one in the near future as the investments made to expand capacity bear fruit.
COHR’s Price Performance, Valuation & EstimatesCoherent’s stock has rallied a whopping 376.7% in a year, beating the industry’s 8.3% growth. COHR surpassed its competitors, IPG Photonics (IPGP - Free Report) and Novanta (NOVT - Free Report) , which have gained 68.3% and 29.1%, respectively, in the same period.
1-Year Share Price Performance Image Source: Zacks Investment Research
Over the past three months, COHR has risen 55.6%, outpacing the industry’s 10.5% growth. IPG Photonics’ stock has remained flat, while Novanta has moved up 36% in the same period.
Coherent has a Value Score of D. IPG Photonics and Novanta both carry a Value Score of F.
The Zacks Consensus Estimate for COHR’s earnings for 2026 and 2027 has increased 1.7% and 10.1%, respectively, over the past 60 days.
COHR currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The semiconductor rally has continued to act as a trader’s playground. In a recent comment on X, Eric Balchunas, a senior ETF analyst, remarked on a snapshot of his that half of the most-traded ETFs on that day (that was at the start of June) were related to the semiconductor industry.
Balchunas has his fair share of experience, yet he said he’s never seen anything like that. That’s a big deal. And what’s even more remarkable are the volumes in such ETFs. While the snapshot is more than remarkable, things have since settled a bit.
While such semi-related ETFs don’t comprise half of the top ETFs in the volume list, many of them are sticking around. Indeed, there’s been no shortage of momentum and volatility. And until things settle, I’d look for bets for and against the names to keep drawing in considerable interest from across the board.
The 3X semi ETFs have exploded in popularity As it stands today, the Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA:SOXS) is at the top of the list. After last Friday’s plunge in the semiconductor stocks, sparked by rising bond yields and fears that hot jobs could cause rate increases, it should be no mystery as to why this aggressive ETF is back in the spotlight.
Indeed, for those seeking to maximize their gains in a reversal of the semiconductor trade, the Direxion Daily Semiconductor Bear 3X Shares is the instrument of choice. Of course, it’s a risky play, but now that there are prominent dents in the armor of the semiconductor trade, perhaps there are a slew of investors who want to swing for the fences.
After all, the great Dr. Michael Burry from The Big Short is still betting against the semiconductors with bearish put options against the iShares Semiconductor ETF (NASDAQ:SOXX). While it’s not quite the same trade, the idea is pretty much the same. Some prefer to go down the route of options, while others would be happy with a levered short ETF against an industry.
As it turned out, going against the semiconductors was not a smooth ride. At least that’s what last week’s action showed us. The industry bounced back quite sharply after the turbulent Friday session. And with the Dierexion Daily Semiconductor Bull 3X Shares (NYSEARCA:SOXL) also enjoying significant trading volumes this week, it’s clear that there’s interest on both sides of the trade.
Betting against the semis is what’s in Indeed, it feels good to be on the same side of a trade as the likes of Michael Burry. But, at the same time, it’s hard to get the timing right. With various other semi-related ETFs also experiencing massive flows, including bearish 2X short ETFs on individual semi names, including SanDisk (NASDAQ:SNDK | SNDK Price Prediction) and Nvidia (NASDAQ:NVDA), it feels like betting against some form of semi is the hottest trade of the summer.
Given the volatility in both directions, investors had better fasten their seatbelts, as a strong stomach will be needed. To be honest with you, I didn’t even know that individual semi names, like SanDisk and Nvidia, had ETFs tied to them. Either way, though, demand has been scorching this month, and for those looking to capitalize on a ridiculously frothy corner of the market that Michael Burry highlighted, there are ETFs to get the job done.
Personally, I’m staying on the sidelines because there’s no telling if the latest choppiness is anything more than just a blip.
The cohort bounced back quite swiftly, as AI demand has remained hot. While I do think the semis are overcrowded, I think it’s going to be tricky to get the timing right. If the group returns to rally mode, semi-related ETFs could cool off again, at least until the next round of choppiness.
Nvidia CEO Jensen Huang is a bit of a visionary these days. When he speaks, people don't just notice, but they make investment decisions based on his words. That's why when he recently said Marvell Technology (MRVL +7.43%) would be worth $1 trillion one day, investors were quick to buy up shares in the chip company.
Marvell is nowhere near a $1 trillion valuation today, as its market cap is closer to $250 billion. If Huang's projection proves to be correct, however, you could generate a 4x return if you were to invest in Marvell's stock right now. But just how quickly could it really be for the company to soar to such a lofty valuation?
Image source: Getty Images.
Marvell's valuation looks pricey right now In just the past month, shares of Marvell have spiked more than 60%, as Huang's encouraging words definitely put the tech stock on the radar of many investors. The problem, however, is that this has also resulted in a much higher valuation for the stock, raising questions about how high a premium investors will be willing to pay for Marvell.
Currently, its price-to-earnings (P/E) ratio is at 100. Even based on analysts' projections for the year ahead, its forward P/E multiple is still fairly high at around 70. What this means is that investors are effectively buying the stock based on where they think the company may be in a few years, assuming it will have achieved significant growth along the way. If you're investing in the stock today and think it's a good deal, given its inflated valuation, you may need to be fairly certain it'll do well over the next five-plus years. That's a big ask.
Today's Change
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When might Marvell reach $1 trillion in market cap? Given how quickly stocks have been rising, referring to Marvell as the next company to reach $1 trillion suggests that Huang isn't expecting a decade or even several years before it reaches that valuation. Marvell achieved 28% revenue growth in its most recent quarter and anticipates its growth rate to rise higher this year. As that happens and its bottom line improves, its valuation may begin to look more reasonable, prompting more buying from investors.
While I don't think Marvell is going to take off and reach $1 trillion this year, it may be possible within the next two to three years, if it experiences a continued surge in demand. However, investors should be careful not to assume it will be a sure thing, as challenges may arise along the way. Although Huang clearly sees considerable growth ahead for Marvell, investors should tread carefully given the stock's high valuation.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology and Nvidia. The Motley Fool has a disclosure policy.
For much of the past three years, Wall Street has treated artificial intelligence as a single trade. Buy the chipmaker, sell the laggard, repeat. Jay Jacobs of BlackRock, speaking with Troy Millings on the Earn Your Leisure podcast, drew a sharper line. The AI trade is short. The AI investment, he argued, "is going to be a decade." That distinction matters more than any single earnings report, because history says the surplus from infrastructure manias rarely lands where the first wave of money expected it to.
Jacobs broke the opportunity into three phases. Today’s winners sit in infrastructure: data centers, power, and semiconductors. The next phase belongs to companies implementing AI into their businesses. The third, further out, is "real-world AI" like autonomous vehicles and robotics. What’s particularly useful about this map is that the historical precedents already exist. We have walked this hallway before.
Phase 1: The picks-and-shovels story is loud Start with the obvious. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) printed $81.615 billion in Q1 FY27 revenue, up 85% year over year, with Data Center revenue of $75.246 billion, up 92%. Jensen Huang called it "the largest infrastructure expansion in human history." Total supply commitments reached $119.0 billion, and the board approved an additional $80.0 billion buyback.
The supplier ring around NVIDIA is moving faster. Marvell (NASDAQ:MRVL) has vaulted 303% over the past year, trading at a 96 trailing P/E and 69x forward. Micron (NASDAQ:MU) has skyrocketed 747% in twelve months, with Q2 FY26 revenue of $23.86 billion, up 196% year over year. CEO Sanjay Mehrotra said "in the AI era, memory has become a strategic asset."
I’ve been watching infrastructure cycles for two decades now, and the pattern rhymes. From 1996 to 2001, telecoms spent roughly $500 billion laying fiber. Capacity was overbuilt. Cisco fell about 89% from its 2000 peak. Yet internet usage rose tenfold over the following decade, and the application layer that grew on top of those wires minted Google and Amazon. Britain’s 1840s railway mania tripled track mileage and wiped out the equity. The rails ran for a century. In the 1920s, utilities built out rural electrification, crashed in 1929, then powered American productivity through the 1950s.
The precedent is consistent. Phase 1 rewards the shovel makers first, then punishes them on overbuild, then hands the surplus to Phase 2.
Phase 2: The platforms with structural moats Jacobs leaned into the mega-cap advantage. Big companies, he said, hold "really entrenched moats" through proprietary data, engineering talent, and cheap capital, and they "are going to spend close to a trillion dollars this year on CapEx." The receipts back him up.
Microsoft (NASDAQ:MSFT) reported its AI business at a $37 billion annual run rate, up 123% year over year, with commercial remaining performance obligations of $627 billion and Q3 FY26 capex of $30.88 billion, up 84%. Satya Nadella said "our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year."
Alphabet (NASDAQ:GOOGL) reported Q1 2026 Google Cloud revenue of $20.03 billion, up 63%, with backlog nearly doubling quarter on quarter to over $460 billion and 2026 capex guidance of $175 to $185 billion. Gemini is now processing 16 billion tokens per minute. I own Alphabet, bought in April 2012, and the valuation gut-check still surprises me: a 16 P/E on a business compounding cloud at 60%-plus. Compare that to Marvell at 69x forward and the price-of-admission gap between Phase 1 and Phase 2 becomes visible.
Note the divergence in market response. Microsoft is down 18% over one year, even with the run-rate doubling. Crowds at Polymarket pin a 53.5% probability on a June close near $375. The platforms are doing the work. The stock is reluctant.
Phase 3: Real-world AI is still early Jacobs was direct about the third phase. Real-world AI "is much harder AI" and more compute intensive, which is why it remains early-stage. Tesla is the loudest single bet on the thesis: active FSD subscriptions of 1.28 million, up 51%, an Optimus line in Fremont designed for 1 million robots per year, and a trailing P/E above 400. Polymarket assigns only a 3.1% probability to a California robotaxi launch by June 30 and 0.8% probability to an Optimus commercial release this month. The crowd is signaling the story is real but the timing is years out.
The long memory Here is what I keep coming back to. Buy NVIDIA, Marvell, and Micron IF you believe the capex cycle has more years to run. Buy Microsoft and Alphabet IF you believe the platforms capture the application-layer surplus the way Google and Amazon did after 2001. Buy Tesla IF you believe Phase 3 lands inside this decade and not the next.
The honest answer, the one Jacobs settled on, is that it will be "a little bit of a blend." Long term, Wall Street tends to absorb the overbuild and reroute capital to the platforms and applications that monetize it. Short term, the trade has been concentrated. The investment, if history holds, will be wider, slower, and more durable than the current stock action suggests.
The next major breach may have already happened. Adversaries are harvesting encrypted data today with the expectation that quantum computing will unlock it tomorrow.
Key Takeaways Vertiv is highlighted as offering greater upside potential than SMCI in AI data center infrastructure. VRT posted 30% Q1 2026 revenue growth, wider margins and more than doubled free cash flow. SMCI expanded AI rack-scale and liquid-cooling offerings, but faces trade and competition risks. Vertiv (VRT - Free Report) and Super Micro Computer (SMCI - Free Report) are major players in the data center market, particularly in the rapidly growing area of AI data center infrastructure and liquid cooling solutions. While Vertiv focuses on power and cooling infrastructure for data centers, Super Micro Computer is strengthening its position with end-to-end AI rack-scale systems that integrate compute, networking, storage, and liquid cooling.
So, VRT or SMCI —Which of these Data Center Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRT StockVertiv is benefiting from its rich partner base and extensive product portfolio spanning thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions. Vertiv remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles.
In the first quarter of 2026, Vertiv reported 30% year-over-year revenue growth, with organic sales up 23%. Adjusted operating margins expanded 430 basis points, and adjusted free cash flow more than doubled compared to the prior year.
Acquisitions have played an important role in further expanding Vertiv’s footprint. Vertiv recently announced the completion of the acquisition of ThermoKey S.p.A., a leading provider of heat rejection and heat-exchange technologies. The acquisition strengthens Vertiv’s thermal management portfolio and manufacturing capabilities across EMEA, enhancing its ability to deliver advanced cooling solutions for AI factories and high-density data centers while expanding ThermoKey’s global market reach.
Further expanding its portfolio, Vertiv recently introduced Vertiv PurgeRite NearZero, a patent-pending fluid management service designed to reduce water consumption, wastewater generation and hauling requirements during the commissioning of closed-loop hydronic systems in data centers across North America. The solution has demonstrated water savings of up to 78% and reductions in water haul-off volumes of up to 91%, helping data center operators improve commissioning efficiency while supporting sustainability goals.
The Case for SMCI StockSuper Micro Computer is benefiting from the growing deployment of AI and HPC workloads. As data centers are proliferating and existing ones are scaling up their capacity, the demand for SMCI’s high-performance and energy-efficient servers is rising.
The company’s expanding portfolio has been noteworthy. Super Micro Computer recently expanded its AI infrastructure portfolio through collaborations with AMD, Arm and NVIDIA, introducing new rack-scale platforms and data center blueprints designed to accelerate deployment of large-scale agentic AI workloads.
The company continued to position Data Center Building Block Solutions (DCBBS) as a key differentiator, describing the model as a one-stop shop that combines rack-scale systems, liquid cooling infrastructure, networking and software tools.
Building on this momentum, Super Micro Computer recently unveiled DCBBS Blueprints for NVIDIA Vera Rubin NVL72 and HGX Rubin NVL8, enabling scalable AI factory deployments from 1,152 GPUs to gigawatt-scale data centers with integrated compute, storage, networking, liquid cooling, power and end-to-end deployment services.
Price Performance and Valuation of VRT and SMCIIn the year-to-date period, Vertiv shares surged 86.9% while Super Micro Computer shares have risen 4%. The outperformance in VRT can be attributed to its extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar and modular solutions.
Despite SMCI’s expanding portfolio, trade restrictions, strong competition and lingering concerns about past accounting issues remain major issues.
VRT and SMCI Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, VRT and SMCI’s shares are currently overvalued, as suggested by a Value Score of D and C, respectively.
In terms of forward 12-month Price/Sales, VRT shares are trading at 7.51X, higher than SMCI’s 0.36X.
VRT and SMCI Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for VRT & SMCI?The Zacks Consensus Estimate for VRT’s 2026 earnings is pegged at $6.36 per share, which has increased 2% over the past 30 days. This indicates a 51.43% year-over-year increase.
The Zacks’ Consensus Estimate for SMCI’s fiscal 2027 earnings is pegged at $2.56 per share, which has remained unchanged over the past 30 days. This indicates a 24.27% year-over-year increase.
ConclusionWhile both Vertiv and Super Micro Computer are benefiting from the booming data center infrastructure market, Vertiv offers greater upside potential with a strong portfolio, rich partner base and significantly higher earnings momentum compared to SMCI.
Despite SMCI’s expanding portfolio, the company’s business remains exposed to U.S. trade restrictions and export-control regulations. Stiff competition also remains a concern.
Currently, Vertiv has a Zacks Rank #2 (Buy), making the stock a stronger pick than Super Micro Computer, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Defense accounted for 8% of APH's Q1 2026 sales and grew 44% YoY in U.S. dollars.Trexon expanded Amphenol's aerospace and defense interconnect portfolio, strengthening key capabilities.APH expects defense sales to rise in the high single-digit range sequentially in Q2. Amphenol Corporation (APH - Free Report) is strengthening its position in the defense electronics market as governments worldwide increase investments in military modernization and advanced defense capabilities. Rising geopolitical tensions and growing demand for next-generation military technologies are creating opportunities across areas such as missile defense, smart munitions, radar systems and secure communications — all of which require highly reliable interconnect solutions.
The company has steadily expanded its defense presence through both organic investments and acquisitions, including Trexon. The acquisition strengthened APH's portfolio of specialized wire, cable and interconnect solutions used in aerospace and defense applications, complementing its broader RF and connectivity offerings. These capabilities are helping the company serve both established defense contractors and a growing group of emerging defense technology providers.
The defense market accounted for 8% of APH's first-quarter 2026 sales and grew 44% year over year in U.S. dollars, including 25% organic growth. The strength was broad-based, spanning multiple defense applications and geographies, highlighting the company's growing exposure to military modernization efforts worldwide.
Demand trends also remain favorable heading into the second quarter, with defense sales expected to increase in the high single-digit range sequentially. Supported by strong execution and expanding opportunities across defense markets, the segment could emerge as a long-term growth driver for Amphenol.
APH Faces Rising CompetitionSome of APH’s competitors in the defense space include TE Connectivity plc (TEL - Free Report) and Bel Fuse Inc. (BELFB - Free Report) .
TE Connectivity continues to benefit from rising defense spending through its portfolio of ruggedized connectors, sensors and electronic components used in military vehicles, communications systems and aerospace platforms. TEL reported 5% organic growth in its Aerospace, Defense and Marine segment in the second quarter of fiscal 2026.
Bel Fuse is sharpening its focus on defense and aerospace opportunities through its Aerospace, Defense & Rugged Solutions segment. By combining connectivity and power technologies for mission-critical applications, BELFB is enhancing its ability to serve defense, space and rugged industrial markets while expanding its role as a solutions provider. In the first quarter of 2026, the unit’s sales rose 20.1% year over year.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 64.7% over the past year, outperforming the broader Zacks Computer and Technology sector’s 42.6% growth.
Image Source: Zacks Investment Research
Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 29.87X, higher than the sector’s 24.60X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings implies 42.5% growth from the year-ago period.
Image Source: Zacks Investment Research
APH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Opendoor Technologies Inc. OPEN is currently trading at a discount compared with the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 index, with a forward 12-month price-to-sales (P/S) ratio of 0.8. The industry's average is currently 3.65, while the sector's valuation is 6.52 and the S&P 500 index's is 5.08.
Key Takeaways GE HealthCare expanded its clinical engineering services relationship with Carilion Clinic in Virginia.Carilion will implement AAMP and Encompass to improve equipment management and efficiency.Encompass will give Carilion real-time visibility into mobile medical equipment across facilities. GE HealthCare Technologies Inc. (GEHC - Free Report) recently expanded its clinical engineering services relationship with Carilion Clinic to support patient care and community health initiatives across Virginia. Under the collaboration, Carilion Clinic will implement GE HealthCare’s Advanced Asset Management Program (AAMP) and Encompass, a real-time location system (RTLS), to improve medical equipment management and operational efficiency across its healthcare network.
Per management, patient care remains at the center of GE HealthCare's priorities. The company’s long-standing collaboration with Carilion Clinic reflects a shared commitment to delivering a consistent and efficient experience for patients and caregivers across the health system's facilities. By combining advanced asset management capabilities with enhanced digital visibility, GE HealthCare aims to support Carilion's teams in delivering high-quality care to patients.
Likely Trend of GEHC Stock Following the NewsShares of GEHC have gained 1% since the announcement on Thursday. In the year-to-date period, shares of the company have fallen 20.6% compared with the industry’s 23.2% decline. However, the S&P 500 has risen 8.1% in the same timeframe.
In the long run, the expanded collaboration strengthens GEHC’s position in healthcare technology and clinical engineering services. By deepening its relationship with Carilion Clinic, GEHC gains another opportunity to demonstrate the value of its connected healthcare solutions, which could support broader adoption across health systems seeking greater efficiency and cost optimization. The agreement also aligns with the company’s strategy of integrating digital technologies and service-based offerings with its healthcare portfolio to create long-term value and recurring revenue opportunities.
GEHC currently has a market capitalization of $29.65 billion.
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More on the Expanded CollaborationThe collaboration includes GE HealthCare’s Advanced Asset Management Program, which is designed to optimize medical equipment throughout its lifecycle. The program focuses on improving consistency in equipment planning, deployment and support, enabling clinical and operational teams to make more informed decisions while reducing workflow burdens.
Carilion Clinic will expand the use of GE HealthCare’s Encompass web-based RTLS platform, which provides real-time visibility into mobile medical equipment across the healthcare system. The solution helps staff locate equipment efficiently, minimize downtime, reduce patient delays and improve caregiver productivity.
The collaboration also extends Encompass capabilities across Carilion’s facilities, including Roanoke Memorial Hospital’s Crystal Spring Tower. Together, GE HealthCare and Carilion continue to strengthen a partnership focused on operational excellence, clinician support and delivering high-quality care to the communities they serve across Virginia.
Industry Prospects Favoring the MarketGoing by data provided by Precedence Research, the healthcare asset management market is valued at $43.88 billion in 2026 and is expected to witness a CAGR of 26.85% through 2035.
Factors like the rising focus on operational efficiency and cost reduction, the need for better equipment tracking and inventory management, the growing pressure to improve workforce productivity and patient care, as well as accelerating healthcare digitalization, are the major drivers of the market.
Other NewsGE HealthCare recently announced that the FDA has granted 510(k) clearance for MIM Contour ProtegeAI+ 2.0, an AI-enabled auto-contouring software designed to support radiation therapy treatment planning. The latest version expands clinical capabilities with new Magnetic Resonance Brain and updated Computed Tomography Male Pelvis models.
The FDA clearance includes a Predetermined Change Control Plan, providing a pathway for future model updates and expansion into additional anatomical regions and imaging modalities.
Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .
West Pharmaceutical, sporting a Zacks Rank #1 (Strong Buy) at present, reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Globus Medical, currently sporting a Zacks Rank #1, reported first-quarter 2026 adjusted EPS of $1.12, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%.
Globus Medical has an estimated long-term earnings growth rate of 10.2%. GMED’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
Biodesix, currently carrying a Zacks Rank of 2 (Buy), reported a first-quarter 2026 adjusted loss per share of 81 cents, which came narrower than the Zacks Consensus Estimate by 35.7%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.
BDSX has an estimated earnings growth rate of 36% for 2026. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.6%.
Key Takeaways Jabil reports Q3 fiscal 2026 results on June 17, with consensus estimates of $8.53B in sales and $3.09 EPS.JBL expanded AI-focused collaborations spanning 1.6T optical transceivers and TFLN photonics deployments.JBL is benefiting from strength across multiple verticals such as AI infrastructure, and healthcare. Jabil, Inc. (JBL - Free Report) is scheduled to report third-quarter fiscal 2026 earnings on June 17 before the opening bell. The Zacks Consensus Estimate for sales and earnings is pegged at $8.53 billion and $3.09 per share, respectively. Earnings estimates for JBL have remained unchanged for 2026 and have increased 0.98% for 2027, over the past 60 days.
Image Source: Zacks Investment Research
Earnings Surprise HistoryThe leading electronics manufacturing services firm has had a solid earnings surprise history in the trailing four quarters, exceeding earnings expectations on all occasions. It delivered a four-quarter earnings surprise of 7.92%, on average.
Image Source: Zacks Investment Research
Earnings WhispersOur proven model does not conclusively predict an earnings beat for Jabil for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping Upcoming ResultsDuring the quarter, Jabil formed a collaboration with Sivers Semiconductors to develop an energy-efficient 1.6T pluggable optical transceiver module. Demand for 800G and higher optical transceivers are growing rapidly. Jabil’s prudent investment in 1.6T technology at an early stage is expected to give it a competitive edge.
In the quarter under review, HyperLight, UMC, Wavetek and Jabil have entered into a collaboration to accelerate the commercialization and large-scale deployment of Thin-Film Lithium Niobate (TFLN) photonics for AI data centers. In this venture, HyperLight provides the TFLN photonic technology, and UMC and Wavetek manufacture the photonic chips at scale. Jabil is offering its expertise in high-volume manufacturing, supply chain management, system integration and assembly, which helps to bring these products to commercial deployments. The approach is aligned with Jabil’s strategy of moving beyond contract manufacturing toward system-level AI infrastructure integration. Strategic collaboration with industry leaders and a strong focus on innovation bode well for sustainable growth.
In the third quarter, per the Zacks Consensus Estimate, revenues in the Regulated Industries segment are pegged at $3.1 billion, indicating growth from $3.05 billion from the year-ago quarter. Revenues from Connected Living & Digital Commerce are pegged at $1.2 billion, down from $1.33 billion a year ago. Revenues from the Intelligent Infrastructure segment for the third quarter are pegged at $4.2 billion, indicating growth from $3.43 billion.
Price PerformanceOver the past year, JBL has surged 112.8% compared with the industry’s growth of 154.3%. It has underperformed its peers, Flex Ltd. (FLEX - Free Report) and Celestica Inc. (CLS - Free Report) . Flex has gained 240.9%, while Celestica has surged 206.6% during this period.
Image Source: Zacks Investment Research
Key Valuation MetricFrom a valuation standpoint, Jabil appears to be trading at a discount relative to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 27.43 forward earnings, lower than 29.06 for the industry but above its mean of 21.68.
Image Source: Zacks Investment Research
Investment ConsiderationsThe AI infrastructure market remains the biggest growth engine for Jabil. AI is driving a structural transformation across the technology landscape. This represents a long-term secular growth trend rather than a temporary surge. Enterprises are rushing to integrate AI into their operations to improve efficiency, enhance productivity and strengthen their competitive positioning. This shift is prompting hyperscalers such as Amazon, Microsoft and Google to quickly expand AI-focused data center infrastructure.
Per a report from Grand View Research, the AI data center market was valued at $147.28 billion in 2025. It is projected to reach $810.61 billion with a compound annual growth rate of 23.9% from 2026 to 2033. Jabil is strategically expanding its AI-native portfolio to capitalize on this growing opportunity and gain a competitive edge against other players in the electronics manufacturing services industry, such as Flex, Sanmina and Celestica.
Customers are increasing high-speed interconnect investments to support AI workloads. Demand for leading-edge AI racks and AI servers is outpacing Jabil’s ability to supply. Apart from the AI infrastructure business, the healthcare business remains strong. Healthy demand for drug delivery platforms, GLP-1 products, continuous glucose monitors, diagnostics and minimally invasive technologies is driving growth. The automotive business is recovering, backed by growing traction across both traditional internal combustion engine (ICE) and electric vehicle (EV) platforms. Improving EV momentum outside the United States is a tailwind.
Digital commerce pace continues to grow, backed by the adoption of advanced retail systems, warehouse automation and robotics. However, demand softness in consumer-centric products continues to impact growth in this segment. Renewables are showing early signs of recovery. The company's solar business mix now includes both residential and commercial installations.
Moreover, Jabil’s multi-region presence has boosted its reliability to its customers. It is focusing on localizing its manufacturing units to cater to regional demands. These factors are expected to have a favorable impact on Jabil’s third-quarter earnings.
End NoteJabil is set to benefit from an AI-driven infrastructure boom and strong demand in healthcare and warehouse automation verticals. Recovery in the automobile and renewable energy infrastructure is a positive factor. The company has developed the ability to design and deliver fully integrated AI systems by combining compute, networking, power distribution and advanced cooling solutions tailored to customer requirements. This end-to-end approach, combined with a strong supply chain network, significantly boosts its reliability among hyperscaler customers and large organizations by reducing the total cost of ownership and expediting deployment timelines. Owing to these factors, Jabil is a good investment option at present.
onsemi ON has quietly become one of the semiconductor sector's strongest performers in 2026. The stock has surged 115.7% year to date, significantly outperforming the Zacks Semiconductor – Analog and Mixed industry's 65% gain and the S&P 500's 8.6% advance.
The tech-heavy Nasdaq gained 2.9%, while the S&P 500 advanced 1.8%.
Truist Upgrade Boosts SentimentAdding to the positive backdrop, Datadog received a bullish upgrade from Truist Securities, which raised its rating to Buy from Hold and increased its price forecast to $300 from $190.
The firm upgraded the stock after conducting industry checks and attending Datadog’s DASH conference. Truist said enterprise demand for AI adoption continues to outpace efforts to optimize AI spending, creating a favorable environment for Datadog’s consumption-based business model.
The analyst also cited greater confidence in Datadog’s relationships with major AI customers, including OpenAI and Anthropic.
Truist expects the rise of agentic AI applications to increase demand for telemetry and observability tools over time. The firm forecasts fiscal 2027 revenue growth of 25%, above the FactSet consensus estimate of 20.5%.
The $300 price forecast implies roughly 30% upside from Datadog’s June 12 closing price.
The stock carries a Buy rating with an average price forecast of $235.77. Recent analyst moves include:
Truist Securities: Upgraded to Buy (Raises Target to $300.00) (June 15) TD Cowen: Buy (Raises Target to $260.00) (June 11) Macquarie: Outperform (Maintains Target to $230.00) (June 11) Tech Rally Lifts DatadogDatadog’s gains were supported by both the analyst upgrade and improving market sentiment. Investors continued to favor software and cloud-computing stocks as risk appetite strengthened across equity markets.
Market breadth remained positive, with most sectors trading higher. However, Datadog still trailed the broader technology sector. While the stock gained about 1.7%, the Technology sector advanced roughly twice as much.
Technical Trend Remains StrongDatadog continues to trade in a strong long-term uptrend. Shares remain about 57% above their 200-day simple moving average and nearly 33% above their 50-day moving average. The stock has gained almost 93% over the past 12 months.
The bullish trend is supported by a golden cross that formed in May, when the 50-day moving average moved above the 200-day moving average.
However, momentum indicators suggest the pace of gains may be slowing. The moving average convergence divergence (MACD) indicator remains below its signal line, pointing to weaker short-term momentum.
Key resistance sits near $278.50, just below the stock’s 52-week high.
Price ActionDDOG Stock Price Activity: Datadog shares were up 2.64% at $235.98 at the time of publication on Monday, according to Benzinga Pro data.
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Investors looking for stocks in the Medical Services sector might want to consider either Labcorp Holdings (LH - Free Report) or Charles River Laboratories (CRL - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Labcorp Holdings is sporting a Zacks Rank of #2 (Buy), while Charles River Laboratories has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that LH likely has seen a stronger improvement to its earnings outlook than CRL has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LH currently has a forward P/E ratio of 14.78, while CRL has a forward P/E of 16.99. We also note that LH has a PEG ratio of 1.86. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CRL currently has a PEG ratio of 2.14.
Another notable valuation metric for LH is its P/B ratio of 2.51. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, CRL has a P/B of 3.07.
These metrics, and several others, help LH earn a Value grade of B, while CRL has been given a Value grade of C.
LH stands above CRL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LH is the superior value option right now.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In AeroVironment To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in AeroVironment between June 25, 2025 and March 10, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 15, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against AeroVironment, Inc. ("AeroVironment" or the "Company") (NASDAQ: AVAV) and reminds investors of the July 27, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) AeroVironment understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the SCAR program and the U.S. Space Force's ongoing efforts to modernize the SCN; (2) accordingly, Defendants overstated AeroVironment's business and financial prospects; and (3) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding AeroVironment's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the AeroVironment class action, go to www.faruqilaw.com/AVAV or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the AeroVironment Securities Class Action Lawsuit:
What is the AeroVironment securities fraud lawsuit about?
The AeroVironment securities fraud lawsuit is a federal securities class action alleging that AeroVironment, Inc. (NASDAQ: AVAV) and its executives made false and misleading statements to investors by concealing that the Company faced imminent competition for its SCAR program contracts and overstating its business and financial prospects. As the truth emerged through a series of disclosures - including a U.S. government stop work order on January 20, 2026, a Space Force announcement that it was reopening the SCAR program on March 2, 2026, and AeroVironment's disclosure of a $151.3 million goodwill impairment and contract termination on March 10, 2026 - AVAV's stock price dropped sharply, causing significant losses for investors.
Who may be eligible to participate in the lawsuit?
Investors who purchased or acquired AeroVironment (AVAV) stock between June 25, 2025 and March 10, 2026 - the Class Period - and suffered financial losses may be eligible to participate in the AeroVironment securities class action. Participation as a class member does not require taking any affirmative legal action; eligible investors may recover losses simply by remaining members of the class. Whistleblowers, former AeroVironment employees, and others with relevant information about the Company's conduct are also encouraged to come forward.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff in the AeroVironment class action is a court-appointed investor - typically the one with the largest financial interest in the case - who directs and oversees the litigation on behalf of all class members. Any AeroVironment investor who purchased AVAV stock during the Class Period may move the Court to serve as lead plaintiff through counsel of their choice. The deadline to seek lead plaintiff appointment is July 27, 2026. Importantly, choosing not to seek the lead plaintiff role does not affect an investor's ability to share in any recovery obtained for the class.
What should investors do if they purchased AeroVironment stock during the Class Period?
Investors who purchased AeroVironment (AVAV) stock between June 25, 2025 and March 10, 2026 and suffered losses should contact Faruqi & Faruqi, LLP immediately to discuss their legal rights. The deadline to seek appointment as lead plaintiff in the AeroVironment securities class action is July 27, 2026. To speak directly with securities litigation partner Josh Wilson, call 877-247-4292 or 212-983-9330 (Ext. 1310), or visit www.faruqilaw.com/AVAV for more information.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased AeroVironment securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301497
Source: Faruqi & Faruqi LLP
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LOS ANGELES, June 15, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming July 27, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired AeroVironment, Inc. (“AeroVironment” or the “Company”) (NASDAQ: AVAV) securities between June 25, 2025 and March 10, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR AEROVIRONMENT INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On January 20, 2026, AeroVironment disclosed that the US government had issued a stop work order on the Company’s agreement to deliver BADGER phased array antenna systems to the US Space Force’s SCAR program. The Company stated the stop work order “allows for the parties to negotiate an amended agreement for the future of the SCAR program” and that “[t]he Company expects to continue to deliver capabilities and products for the SCAR program.”
On this news, AeroVironment’s stock price fell $61.97, or 15.8%, to close at $330.89 per share on January 20, 2026, thereby injuring investors.
Then, on March 2, 2026, Space News reported that the US Space Force was reopening the SCAR program and “reassessing how to move forward.”
On this news, AeroVironment’s stock price fell $43.93, or 17.4%, to close at $208.32 per share on March 2, 2026.
Then, on March 10, 2026, AeroVironment released its third quarter fiscal 2026 financial results, reporting an operating loss of $179 million, compared to $3.1 million the previous year. The results reflected the impact of a $151.3 million goodwill impairment after the stop work order on the BADGER systems. The Company also revealed that the US Space Force had terminated the Company’s contract for the SCAR program and, as a result, it would have to “recompete” for the program.
On this news, AeroVironment’s stock price fell $13.84, or 6.2%, to close at $207.73 per share on March 11, 2026.
Then, on March 31, 2026, the US Space Force announced its decision to diversify suppliers and rely on less costly commercial, off-the-shelf solutions in connection with its work to upgrade the Satellite Control Network (“SCN”), instead of pursuing another single-vendor bespoke solution.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) AeroVironment understated the likelihood that it would imminently face competition from other vendors for the work it performed in connection with the SCAR program and the U.S. Space Force’s ongoing efforts to modernize the SCN; (2) accordingly, Defendants overstated AeroVironment’s business and financial prospects; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired AeroVironment securities during the Class Period, you may move the Court no later than July 27, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
Principal Asset Management® today announced the launch of Principal® Fit, a fixed income exchange-traded fund (ETF) suite that includes four newly launched exchange-traded funds, expanding the firm’s lineup and enhancing fixed income capabilities for investors. The suite and newly launched ETFs are designed to support more precise and flexible portfolio positioning as investors navigate evolving interest rate, credit, and inflation dynamics.
As fixed income markets grow more complex, there is an increasing need for more precise ways to align portfolio allocations with market views and desired outcomes across distinct market environments. The cohesive new suite of ETFs is designed to help simplify the process by providing targeted exposure across key segments of the fixed income market, including inflation protection, securitized credit, long duration, and collateralized loan obligations. Additionally, each ETF can serve a distinct role within a broader portfolio, with exposures aligned to different interest rates, credit, and inflation conditions, and can be used independently or in combination as conditions evolve.
“Principal Fit is designed to help investors navigate rapidly changing market environments and simplify how they make allocation decisions across fixed income,” said Michael Goosay, chief investment officer and global head of fixed income at Principal Asset Management. “In this environment, broad exposure is often less effective than more targeted approaches, and this lineup provides more precise tools to support portfolio decisions as market conditions shift.”
Together with the Principal Investment Grade Corporate ETF (IG), the five ETFs in the suite form a flexible set of solutions that can be used across portfolios to support income generation, diversification, and portfolio positioning across duration, credit, and inflation expectations. The newly launched ETFs include:
The Principal Inflation Protection ETF (RIZE), which focuses on helping investors manage inflation risk by providing exposure to securities sensitive to changes in price levels. The Principal Securitized Debt ETF (WDE) which provides access to securitized sectors of the fixed income market, offering diversified exposure across structured credit. The Principal Long Duration ETF (DWWN) provides exposure to longer-duration bonds, supporting positioning around changes in interest rates. The Principal CLO ETF (UUPP) offers exposure to collateralized loan obligations and seeks to deliver income through floating-rate credit instruments. Principal Asset Management offers 16 ETFs and approximately $10.4 billion in assets under management across its ETF platform3. The funds are listed on Cboe BZX Exchange and trade under the tickers UUPP, DWWN, IG, WDE, and RIZE.
About Principal Asset Management®
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Learn more at www.PrincipalAM.com
[1] As of March 31, 2026
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[3] As of May 31, 2026
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Fox Corp (NASDAQ:FOXA) is suffering a steep morning drop of 18% to trade at $54.02. The media conglomerate is lower after news broke on purchasing streaming name Roku (ROKU) for $160 per share or $22 billion. The press release said the intention behind the purchase is to grow into a sports, news, and streaming leader. ROKU is down 2.1% at $140.79 on the news.
FOXA is on track for its lowest close since February and worst daily performance on record. The equity has shed 25% in 2026, with today's selloff breaking well below recent support at the 200-day moving average.
Short interest has been inching lower, down 5.5% in the two most recent reporting periods. This accounts for nearly 14% of the stock's available float and would take a hefty eight days for short sellers to buy back.
Options are red hot already, with 2,864 calls and 1,112 puts exchanged so far-- 48 times the average daily trading volume. Most popular looks to be the June and July 55 strike calls, where new options are being sold to open.
Bulls had been moving in ahead of the noise. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FOXA's 10-day call/put volume ratio of 12.80 ranks in the 86th annual percentile.
Premium is affordably priced at the moment, too. This is per the stock's Schaeffer’s Volatility Index (SVI) of 28% that stands in the 27th percentile of its annual range.
Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.
The proposed transaction may contain terms that could limit superior competing offers.
Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.
NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating the merger of Fox Corporation (NASDAQ: FOXA, FOX) and Roku, Inc. Upon closing of the proposed transaction, Fox shareholders are expected to own approximately 73% of the combined company.
Halper Sadeh encourages Fox shareholders to click here to learn more about their rights and options or contact Daniel Sadeh or Zachary Halper free of charge at (212) 763-0060 or [email protected] or [email protected].
The investigation concerns whether Fox and its board of directors violated the federal securities laws and/or breached their fiduciary duties by failing to: (1) obtain the best possible price for Fox shareholders; (2) conduct a fair sales process free of any conflicts of interests; and (3) disclose all material information for Fox shareholders to evaluate the transaction.
On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures, or other relief and benefits.
Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.
Attorney Advertising. Prior results do not guarantee a similar outcome.
In a move to capture the dual market forces of live broadcast television and digital streaming, Fox Corporation on Monday announced it is acquiring Roku, Inc. for $160.00 per share in a deal valued at an enterprise value of $22 billion.
The combination pairs FOX's live entertainment, news and sports portfolios — including The Tubi service, the NFL, MLB and FOX News Media — with the top television streaming platform in the U.S. by hours streamed, accelerating the company's expansion into connected TV advertising.
"This is a defining moment for FOX, and a natural extension of the deliberate and focused strategy we have been executing for nearly a decade," Fox Corporation Executive Chair and CEO Lachlan Murdoch said. "Today, we take the next step: bringing together the most valuable live content portfolio in video consumption with the preeminent streaming platform through which America watches it."
WARNER BROS DISCOVERY SHAREHOLDERS APPROVE PARAMOUNT SKYDANCE DEAL
"We are executing this acquisition from a position of financial strength — maintaining our investment grade balance sheet while providing our shareholders with an uninterrupted return of capital program in the form of share buybacks and dividends," Murdoch continued. "Roku pioneered streaming TV and scaled it into a leading CTV platform. Together, we intend to lead its next chapter."
Fox Corporation announced Monday, June 15, 2026, that it would be acquiring TV maker Roku for $22 billion. (Getty Images)
The transaction positions the combined company as the third-largest player in U.S. television by share of viewing. Currently, Roku is in over 100 million global streaming households, which includes more than half of all U.S. broadband households.
Unanimously approved by the Boards of Directors of both companies, FOX is buying the company using a mix of cash and its own stock. Once the merger is complete, ownership will be split 73% for current FOX shareholders and 27% for Roku shareholders, based on who held shares prior to the deal.
Roku founder, chair and CEO Anthony Wood will maintain an ongoing role at the combined company and will join the FOX Board of Directors following the transaction's close in the first half of 2027.
"Over the past two decades, we’ve built Roku into the leading TV streaming platform, reaching more than 100 million households globally and reshaping how people discover and enjoy entertainment. I’m incredibly proud of what our team has built, and the combination with FOX is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers," Wood said.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"That’s why our Board of Directors unanimously determined after concluding its strategic review process that this transaction offers a significant premium to Roku shareholders while also providing them with the opportunity to participate in the compelling future upside of the combined company," Wood added. "I couldn’t be more excited about what we’ll accomplish together."
The deal remains subject to customary closing conditions, including approvals by FOX and Roku shareholders and U.S. and certain non-U.S. regulatory approvals.
The transaction is expected to close in the first half of calendar year 2027.
Bloomberg Intelligence media analyst Geetha Rangananthan says this deal makes a lot of strategic sense because it gives Fox more of a gateway into streaming. The acquisition will create the third-largest player in the US television market by share of viewing, spanning broadcast, cable, local and streaming, the companies said.
Fox Corporation FOXA is being punished this morning after its management disclosed plans to spend a whopping $22 billion on buying Roku Inc (ROKU).
While the company’s leadership pitched the deal as a “defining moment” to merge live sports and news with a massive digital footprint, Fox investors are pushing back heavily.
Here’s why FOXA shares are being sold off following the ROKU announcement on Jun. 15.
Under the terms of the deal, Roku shareholders will receive $160 a share, structured as $96 in cash and 0.9693 Fox shares (Class A) for each ROKU share.
This means Roku shareholders will end up owning roughly 27% of the combined company.
Institutional investors generally dislike mega-mergers that rely heavily on issuing new stock, as it severely dilutes the ownership percentage and per-share earnings for existing shareholders.
To fund the cash portion of the transaction, FOXA is taking on substantial leverage. The company secured a $12 billion fully committed bridge financing facility from Morgan Stanley.
Investors are being sensitive to this massive new debt load, especially given that the legacy media firm is already grappling with structural declines in its traditional cable TV business.
They’re concerned that servicing this debt will eat into free cash flow and restrict future buybacks or dividend increases.
Roku’s historical success lies in its position as an agnostic, open platform that treats all streaming apps (Netflix, Disney+, Prime Video, etc.) equally.
Now that ROKU will be under Fox’s ownership, investors fear that this platform's neutrality will be compromised.
If rival streaming networks believe FOXA will favour its own content (like Fox Sports, Fox News, or its free ad-supported streaming service, Tubi), they may alter their relationships with Roku.
This could threaten the company’s core advertising and subscription revenue split model, which would hurt Fox stock in the long run.
Fox pivoted away from expensive scripted streaming wars in 2019 by selling its entertainment assets to Disney to focus strictly on live news and sports.
Buying Roku for $22 billion – to some investors – feels like a massive, expensive U-turn back into a highly competitive, crowded digital ecosystem.
FOXA stock is also crashing because ROKU has gained some 20% on the buyout news, making the final price tag a steep pill for its shareholders to swallow.
In short, Fox investors feel the company is taking on too much debt and diluting too much equity to buy a platform whose core asset might be undermined by the acquisition itself.
Heading into Monday, Wall Street had a consensus “Moderate Buy” rating and a $70 mean price target on Fox shares.
However, if analysts share the aforementioned investor concerns, it’s reasonable to assume that they might downwardly revise estimates for FOXA in the days ahead.
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Fox CEO Lachlan Murdoch is making a major acquisition that will boost his company's streaming presence. Bloomberg/Getty Images Fox mostly sat out the streaming wars, but it could soon surpass Netflix in US TV viewership anyway.
Buying Roku would make Fox the third-largest TV distributor in the US by monthly viewership, according to Nielsen's March data (or fourth-largest if Paramount Skydance secures control of Warner Bros. Discovery).
How did that happen? It mostly comes down to viewership growth in the free streaming business, which both Fox and Roku have focused on.
Fox would have a 10% US TV viewership share across its broadcast network, cable channels like Fox News and Fox Business, its free streamer Tubi, and top free streamer The Roku Channel. Fox also owns paid streamers Fox One and Fox Nation and would gain control of Howdy, Roku's $3-per-month streamer, which launched last August.
However, viewership doesn't directly translate into dollars. Netflix gushes cash, with nearly $4 billion in operating income last quarter, and had over 325 million subscribers at the end of 2025. And while Tubi became profitable last year, it's nowhere near the revenue juggernaut that Netflix is.
Netflix is also huge across the world, while Nielsen's data only captures US viewership.
That's why Netflix is valued at over $342 billion.
Fox's unorthodox streaming strategyUnlike some rivals, Fox decided not to spend billions of dollars building out a mass-market streamer in hopes of competing with Netflix.
Instead, Rupert and Lachlan Murdoch's Fox went the other direction by offloading its studio, its Hulu stake, and its library with shows like "The Simpsons" to Disney for $71 billion in 2019.
Fox doubled down on its big bets of live TV, especially sports and news, while rounding out its broadcast programming with cheaper scripted game shows like "The Masked Singer."
Fox also made a key move by buying the free streamer Tubi for $440 million in 2020. The Gen Z-friendly service has surged in popularity in recent years for its huge catalog of old TV and quirky, offbeat shows. Tubi generates more monthly viewership than paid streamers like Peacock and HBO Max, according to Nielsen.
Fox may soon own the two top free, ad-supported streaming services other than YouTube. Nielsen With Roku, Fox would instantly become a superpower in the free streaming space. Roku's free streamer is even bigger than Tubi, with more viewership than any premium video service except for Netflix, the combined Hulu-Disney+, and Prime Video. Free streamers have gained ground as their paid counterparts have raised prices.
Hollywood giants like Netflix and Disney have been brainstorming ways to improve engagement as free services like YouTube, Tubi, and The Roku Channel gain traction among inflation-weary audiences.
Paid streamers have turned to short-form video and video podcasts to add more value and build habits by getting viewers to open their apps throughout the day.
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Shares of CBRE Group (CBRE - Free Report) have gained 2.7% over the past four weeks to close the last trading session at $133.41, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $182.36 indicates a potential upside of 36.7%.
The mean estimate comprises 11 short-term price targets with a standard deviation of $7.93. While the lowest estimate of $170.00 indicates a 27.4% increase from the current price level, the most optimistic analyst expects the stock to surge 49.9% to reach $200.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for CBRE, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in CBREThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0.3%.
Moreover, CBRE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much CBRE could gain, the direction of price movement it implies does appear to be a good guide.
SAN DIEGO--(BUSINESS WIRE)--WD-40® Brand launches the 2026 Repair Challenge, inviting DIYers and pros to showcase their repair skills for a chance to win a $5,000 grand prize.
New York, New York--(Newsfile Corp. - June 15, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Graphic Packaging Holding Company (NYSE: GPK) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Graphic Packaging securities between February 4, 2025 and February 2, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/GPK.
Graphic Packaging Case Details
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that:
Graphic Packaging was experiencing, among other things, significant inventory management issues, as well as significantly reduced demand and volumes and increased costs; Defendants downplayed the true scope and severity of the foregoing issues, which were likely to, and did, have a material negative impact on the Company's business and financial results; Defendants likewise overstated the strength and sustainability of the Company's business model and operations, as well as its ability to weather ongoing macroeconomic headwinds; accordingly, the Company's previously issued FY 2025 financial guidance was unreliable and/or unrealistic; and as a result, Defendants' public statements were materially false and misleading at all relevant times.What's Next for Graphic Packaging Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/GPK, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Graphic Packaging you have until July 6, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Graphic Packaging Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Graphic Packaging Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Source: Bronstein, Gewirtz & Grossman, LLC
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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Graphic Packaging To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Graphic Packaging between February 4, 2025 and February 2, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 15, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Graphic Packaging Holding Company ("Graphic Packaging" or the "Company") (NYSE: GPK) and reminds investors of the July 6, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Graphic Packaging was experiencing, inter alia, significant inventory management issues, as well as significantly reduced demand and volumes and increased costs; (2) Defendants downplayed the true scope and severity of the foregoing issues, which were likely to, and did, have a material negative impact on the Company's business and financial results; (3) Defendants likewise overstated the strength and sustainability of the Company's business model and operations, as well as its ability to weather ongoing macroeconomic headwinds; (4) accordingly, the Company's previously issued FY 2025 financial guidance was unreliable and/or unrealistic; and (5) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Graphic Packaging's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Graphic Packaging class action, go to www.faruqilaw.com/GPK or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Graphic Packaging Holding Company Securities Class Action Lawsuit:
What is the Graphic Packaging securities fraud lawsuit about?
The Graphic Packaging securities fraud lawsuit is a federal securities class action alleging that Graphic Packaging Holding Company (NYSE: GPK) and its executives made false and misleading statements to investors by concealing significant inventory management issues, reduced demand and volumes, and increased costs, while overstating the strength and sustainability of the Company's business model and issuing unreliable financial guidance. As the truth emerged through a series of disclosures - including a May 1, 2025 Q1 earnings miss and sweeping downward revision to FY 2025 guidance, a December 8, 2025 announcement of accelerated inventory reductions, further guidance cuts, and the CEO's departure, and a February 3, 2026 Q4 earnings miss accompanied by a projected meaningful decline in 2026 adjusted EBITDA and the launch of a comprehensive business review - GPK's stock price fell sharply across each disclosure, causing significant cumulative losses for investors.
Who may be eligible to participate in the Graphic Packaging class action lawsuit?
Investors who purchased or acquired Graphic Packaging Holding Company (GPK) stock between February 4, 2025 and February 2, 2026 - the Class Period - and suffered financial losses may be eligible to participate in the Graphic Packaging securities class action. Participation as a class member does not require taking any affirmative legal action; eligible investors may recover losses simply by remaining members of the class. Whistleblowers, former Graphic Packaging employees, and others with relevant information about the Company's conduct are also encouraged to come forward.
What is a lead plaintiff, and how can I seek appointment in the Graphic Packaging lawsuit?
A lead plaintiff in the Graphic Packaging class action is a court-appointed investor - typically the one with the largest financial interest in the case - who directs and oversees the litigation on behalf of all class members. Any Graphic Packaging investor who purchased GPK stock during the Class Period may move the Court to serve as lead plaintiff through counsel of their choice. The deadline to seek lead plaintiff appointment is July 6, 2026. Importantly, choosing not to seek the lead plaintiff role does not affect an investor's ability to share in any recovery obtained for the class.
What should investors do if they purchased Graphic Packaging stock during the Class Period?
Investors who purchased Graphic Packaging Holding Company (GPK) stock between February 4, 2025 and February 2, 2026 and suffered losses should contact Faruqi & Faruqi, LLP immediately to discuss their legal rights. The deadline to seek appointment as lead plaintiff in the Graphic Packaging securities class action is July 6, 2026. To speak directly with securities litigation partner Josh Wilson, call 877-247-4292 or 212-983-9330 (Ext. 1310), or visit www.faruqilaw.com/GPK for more information.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301505
Source: Faruqi & Faruqi LLP
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New York, New York--(Newsfile Corp. - June 15, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Verra Mobility Corporation (NASDAQ: VRRM) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Verra securities between February 24, 2026 and May 26, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/VRRM.
Verra Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Defendants misrepresented the nature and stability of Verra's relationship with Avis Budget Group ("Avis"), including the likelihood of securing a contract extension; Defendants downplayed the risk that major rental car companies, including Avis, could replace Verra's services with in-house solutions or alternative third-party providers; and as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading at all relevant times.What's Next for Verra Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/VRRM, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Verra you have until August 4, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Verra Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Verra Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300536
Source: Bronstein, Gewirtz & Grossman, LLC
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Investors interested in stocks from the Utility - Electric Power sector have probably already heard of ENGIE - Sponsored ADR (ENGIY) and Pinnacle West (PNW). But which of these two stocks is more attractive to value investors?
Key Takeaways Credo's fiscal 2026 revenues rose 206% to $1.3B as AI infrastructure demand lifted its portfolio.Credo expects optical revenues to top $600M in fiscal 2027, with three products above $100M each.Four hyperscale customers each made up at least 10% of Q4 revenues, keeping concentration risk in focus. Credo Technology Group Holding Ltd (CRDO - Free Report) is moving through a new phase of its AI connectivity story. The question is whether rapid demand can broaden beyond one product family while profitability holds.
The setup now spans active electrical cables (AECs), optical digital signal processors, PCIe connectivity and silicon photonics. That wider portfolio gives investors more to track and raises the bar for execution.
CRDO Growth Now Reaches Beyond AECsCredo’s growth is no longer just an AEC story. Fiscal 2026 revenues reached $1.3 billion, up 206% year over year, as AI infrastructure ramps lifted demand across the product base.
AECs remain a key engine for in-rack and multi-rack AI connectivity. Yet management is also pointing to optical products, retimers and digital signal processors as larger contributors, helping frame Credo as an AI connectivity platform.
Lattice Semiconductor Corporation (LSCC - Free Report) , a peer in the semiconductor space, offers low-power field-programmable gate arrays used in communications, computing, industrial and other applications. It gives investors another infrastructure-linked chip name to compare against CRDO’s connectivity focus.
Credo Is Building a Bigger Optical EngineOptics has become the clearest next pillar. Credo completed the DustPhotonics acquisition in May 2026, adding silicon photonics PIC capabilities and strengthening its high-speed optical portfolio.
That deal fits with ZeroFlap optical transceivers and optical digital signal processors. Management expects optical revenues to exceed $600 million in fiscal 2027, with ZeroFlap optics, silicon photonics photonic integrated circuits and optical digital signal processors each contributing more than $100 million.
The optical opportunity also gives Credo more exposure to 800-gigabit and 1.6-terabit connectivity needs. FormFactor, Inc. (FORM - Free Report) , which provides advanced semiconductor test and measurement solutions, sits in a different part of the semiconductor ecosystem but remains relevant to data-infrastructure demand.
CRDO Execution Still Depends on Big CustomersCustomer concentration remains the main counterweight to the growth story. In the fourth quarter of fiscal 2026, four hyperscale customers each accounted for at least 10% of revenues.
The top three represented 34%, 27% and 16% of revenues. That concentration can magnify upside during deployment ramps because one large program can move revenues quickly.
The same structure can create volatility. If a major customer pauses a deployment, changes timing or adds suppliers, quarterly revenues can shift faster than the long-term opportunity would suggest.
Credo is working to diversify across hyperscalers, neo clouds and other customers. Still, management expects three to four customers to remain above 10% of revenues in the coming quarters.
Credo Margins Show Scale but Face TransitionsCredo’s profitability shows the leverage in the model. Fourth-quarter fiscal 2026 non-GAAP gross margin was 68.3%, while non-GAAP operating income reached $216.7 million.
Free cash flow was $177.5 million in the quarter. The company ended fiscal 2026 with $1.4 billion in cash, cash equivalents and short-term investments.
Margins may not move in a straight line. Non-GAAP operating expenses were $81.7 million in the fiscal fourth quarter and are expected to rise to $86-$90 million in the current quarter.
The mix shift toward newer optical products can also affect earnings cadence. Management expects fiscal 2027 non-GAAP gross margin to be broadly consistent with fiscal 2026, but higher spending and product transitions can make quarterly results less linear.
How CRDO Signals Fit the SetupThe bottom line is that Credo has a larger platform story, but investors still need confidence in customer ramps, optical execution and expense discipline. The stock’s growth profile depends on those factors holding together.
CRDO currently carries a Zacks Rank #1 (Strong Buy). That rank is consistent with a stock benefiting from favorable earnings estimate revision trends, which are central to the Zacks Rank framework.
The Style Scores add a more mixed layer. CRDO has a Momentum Score of A, Growth Score of B and VGM Score of C, pointing to favorable price action and growth characteristics but a less complete profile across all styles.
The weaker Value Score of F keeps the investment case rooted more in execution and growth confidence than in cheap valuation. For investors, CRDO remains a stock where the outlook hinges on whether optical scale and broader AI connectivity demand can offset concentration and transition risks.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Credo sells AECs, optical DSPs, retimers and SerDes IP for AI connectivity challenges.Credo's Robin, Cardinal and ZeroFlap products push deeper into 800G and 1.6T optical links.Four hyperscale customers each represented at least 10% of revenues, keeping execution key. Credo Technology Group Holding Ltd (CRDO - Free Report) is increasingly tied to one of the most important bottlenecks in AI infrastructure.
As clusters expand, connectivity has become central to uptime, power efficiency and system performance. Credo’s roadmap shows how demand is shifting across copper, optical and scale-up networking.
CRDO Sits at the Center of AI ConnectivityCredo sells high-speed connectivity solutions built around Serializer/Deserializer, or SerDes, and digital signal processor technology. Its portfolio includes active electrical cables (AECs), optical digital signal processors (DSPs), retimers and SerDes intellectual property licensing.
These products address a clear AI infrastructure problem. As clusters scale from tens of thousands to hundreds of thousands of graphics processing units, customers need better reliability, lower power use and cleaner signal integrity across the network fabric.
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Astera Labs (ALAB - Free Report) also operates in the AI connectivity market, which underscores how investors are treating interconnects as a core part of the data-center buildout rather than a niche hardware category.
Credo Is Pushing Deeper Into Optical LinksCredo is expanding beyond copper as optical links become more important in dense AI networks. Its Robin optical digital signal processor family supports 800G and 400G devices, while Cardinal targets 1.6T optical designs built on 3-nanometer technology and 224G per lane.
The company has also launched 800G ZeroFlap optical transceivers engineered for AI networks. These products are aimed at efficiency, scalability and reliability across data-center fabrics.
DustPhotonics adds silicon photonics technology, with a portfolio spanning 800G and 1.6T solutions and a roadmap to 3.2T. Credo expects optical digital signal processors, SiPho PICs and ZF optics to each contribute more than $100 million in fiscal 2027 revenues.
CRDO Expands Across Scale-Up and Scale-OutCredo’s roadmap is not limited to one AI architecture. Blue Heron is a 224G AI scale-up retimer designed for protocols including UALink, Ethernet and ESUN, and it enables rack-scale cable backplanes and flexible placement of switch chips and graphics processing units.
The acquisition of CoMira Solutions adds link layer, error correction and security intellectual property. That can strengthen Credo’s system-level offerings across Ethernet, ESUN, UALink and PCI Express.
Partnerships also widen the trend story. TensorWave is using Credo connectivity solutions for next-generation AMD-based AI clusters, while Rebellions is integrating ZeroFlap AECs into its RebelPOD AI infrastructure platform.
Credo Trend Tailwinds Still Need Clean ExecutionThe trend is favorable, but execution still matters. Supply chain tightness remains a planning issue, particularly as Credo prepares for an aggressive second-half fiscal 2027 optical ramp.
Tariff uncertainty also clouds near-term visibility. Management’s fiscal 2027 outlook assumes the current tariff regime, which could change and affect costs, sourcing or margins.
Customer concentration is another risk. Four hyperscale customers each represented at least 10% of revenues in the most recent quarter, so large program timing can still affect quarterly results.
How CRDO Ratings Reflect the Trend StoryThe bottom line is that Credo has direct exposure to the AI interconnect upgrade cycle, with products moving across copper, optical, scale-up and scale-out networks. Broadcom Inc. (AVGO - Free Report) , with its AI networking and Ethernet portfolio, offers a larger-cap reference point for the same infrastructure theme.
CRDO currently carries a Zacks Rank #1 (Strong Buy), signaling that earnings estimate revisions are favorable. That aligns with a company whose fiscal 2027 outlook calls for more than 80% year-over-year revenue growth.
The stock’s Momentum Score of A and Growth Score of B fit the market’s willingness to reward operating traction and growth exposure. Its Value Score of F adds the main qualifier. Investors are paying up for the trend, not buying it at a discounted valuation.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Credo's Q4 fiscal 2026 EPS beat estimates by 12.6%, while revenues rose 157% to $437M.Credo trades at 18.6X forward sales, above its sub-industry, sector and S&P 500 levels.Four hyperscalers each generated at least 10% of Q4 revenues, keeping volatility risk in focus. Credo Technology Group Holding Ltd (CRDO - Free Report) has already delivered the kind of share-price move that forces investors to revisit the original thesis.
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The question now is whether earnings growth, estimate revisions, margins and product expansion still support a premium valuation, or whether the stock has outrun the fundamentals.
CRDO Has the Earnings Backdrop Bulls WantCredo’s most recent quarter gave bulls plenty to work with. Fourth-quarter fiscal 2026 earnings of $1.16 per share beat the Zacks Consensus Estimate by 12.6%, while revenues of $437 million topped the consensus mark by 1.6%.
Revenues rose 157% year over year, driven by AI connectivity demand. Fiscal 2026 revenues reached $1.3 billion, more than tripling from fiscal 2025, while annual earnings per share climbed to $3.46 from 70 cents.
The estimate picture also remains supportive. The current fiscal-year earnings estimate has moved higher over the past four weeks, reinforcing the argument that the rally has not been based only on price momentum.
Credo Valuation Looks Rich but Not UnusualCRDO is not a bargain stock. Shares trade at 18.6X forward 12-month sales, above the Zacks sub-industry at 9.5X, the Zacks sector at 6.5X and the S&P 500 at 5.1X.
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That premium matters because it leaves less room for execution mistakes. Astera Labs (ALAB - Free Report) , another AI connectivity name, gives investors a related comparison point for how aggressively the market values companies tied to rack-scale AI infrastructure.
Still, Credo’s valuation is not outside its own historical range. The stock has traded as high as 29.4X forward sales over the past five years, with a median of 12X, suggesting investors are paying for growth leadership rather than a discounted entry point.
CRDO Has Real Cash and Margin SupportCredo’s bull case is stronger because profitability is already visible. Fourth-quarter non-GAAP gross margin was 68.3%, and non-GAAP operating margin reached 49.6%.
The full-year margin profile also improved. Fiscal 2026 non-GAAP gross margin was 68.1%, up 310 basis points, while non-GAAP operating margin expanded to 47.8%.
Cash generation adds another layer of support. Credo produced record operating cash flow of $182.2 million in the fourth quarter and free cash flow of $177.5 million, ending fiscal 2026 with about $1.4 billion in cash, cash equivalents and short-term investments.
CRDO Risks Can Change the Math FastThe main caution is customer concentration. Four hyperscalers each generated at least 10% of fourth-quarter fiscal 2026 revenues, with the top three customers accounting for 34%, 27% and 16%.
Credo still expects three to four customers to contribute more than 10% of revenues in upcoming quarters. That dependence can magnify volatility if a large buyer pauses, delays or rephases deployments.
Costs also need watching. First-quarter fiscal 2027 non-GAAP operating expenses are expected to reach $86 million to $90 million as product investments continue, and the company’s outlook assumes a tariff regime that management described as fluid.
Why CRDO Ratings Still Lean BullishThe bottom line is that CRDO remains a growth-led stock with fundamentals that still justify investor attention, even after a major rally. The setup is not low risk, but the earnings, revenue, margin and cash-flow profile gives bulls more than a momentum argument.
The stock currently carries a Zacks Rank #1 (Strong Buy), which points to favorable earnings estimate revision trends. Broadcom Inc. (AVGO - Free Report) , a larger AI networking and semiconductor peer, shows how deeply investors are focused on data-center connectivity across the chip landscape.
Credo also has a Momentum Score of A and a Growth Score of B, indicating favorable price action and growth characteristics. Its Value Score of F is the counterweight, making the stock better suited to growth-oriented investors than traditional value buyers.
You can see the complete list of today’s Zacks #1 Rank stocks here.
