Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Motors (GM - Free Report) One of the world’s largest automakers, General Motors held the largest share of the U.S. auto market at 16.5% in 2024. Headquartered in Detroit, the auto giant has had a long and checkered history. Founded in 1908, the company rose to dominate the U.S. industry. However, hit by the financial crisis, General Motors filed for bankruptcy on Jun 1, 2009. Just within 40 days, the firm emerged from bankruptcy. In 2010, the company launched its IPO – the biggest in U.S. history at that time – and has been steadily profitable since then. From going bankrupt in 2009 to becoming one of the world’s best-run car companies, General Motors has indeed come a long way.
GM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.34; value investors should take notice.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.37 to $12.85 per share. GM boasts an average earnings surprise of +20.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GM should be on investors' short list.
Home Depot (NYSE:HD | HD Price Prediction) is the largest home improvement retailer in America, and right now it’s stuck in a frustrating holding pattern.
CEO Ted Decker told investors after Q1 that “the underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.” Translation: the business is fine, the macro is not. Shares are down 3.89% YTD while consumer spending grinds higher. So can HD really hit $450 by 2028? Let’s run the math.
What’s Holding Home Depot Back Right Now The issue is the housing cycle. Existing home turnover remains depressed, big-ticket remodel demand has been soft, and customer transactions fell 1.3% in Q1 FY2026. GAAP operating margin compressed to 11.9% from 12.9% as SRS Distribution amortization weighed on profitability.
Shares have fallen 7.13% over the past year and sit 11% below the 52-week high of $418.06. With a beta of 0.974, this is a slow grind that has tested patience. The recent 5.18% one-week bounce hints sentiment may be turning, but the housing overhang is real.
Wall Street Sees Modest Upside. Our Model Sees More Wall Street’s consensus price target sits at $370.18, with 4 Strong Buy, 18 Buy, and 14 Hold ratings, no Sell calls. That is a polite shrug. Our base case lands at $373.86 for a 14.68% two-year return, with a bull case of $426.42 and a bear case of $339.18. Our confidence sits at 90%, which is high.
I think analysts are anchoring too hard on FY26 guidance and underweighting what happens when housing turnover normalizes. With 61% of analysts bullish and insiders net buying across 54 recent transactions, the conviction is quietly building.
The Path to $450 Per Share Here is the math. Reaching $450 from today’s price of $326.01 would require a gain of 38%. With forward EPS of $16.31, a price of $450 implies a forward P/E of 28x. Our base case of $373.86 already implies 22x, meaning the bold target requires roughly 5x of additional multiple expansion.
Is that achievable? I think yes, under the right conditions. Our 247Factor adjustment came in at 1.061, driven by moderate analyst optimism (+0.037 contribution) and a mega-cap dampening that limits upside math. But the bigger story is the macro.
BEA data shows furnishings spending climbed to $527.5B in April 2026 from $516.7B in January, and housing services spending reached $3,930.7B. If mortgage rates ease and remodel demand reawakens, FY27 and FY28 EPS could push well past $17.
Layer in SRS and GMS contributions scaling, and a 27x multiple on rising earnings becomes defensible. The primary risk: a prolonged housing recession that keeps comps flat into 2028.
Where Home Depot Trades Today vs Its Earnings Power At $326.01, HD trades at a forward P/E of 20x, which strikes me as cheap for a business with 128.4% ROE and 156 consecutive dividend payments.
Shares sit between a 52-week low of $286.95 and high of $418.06. Over the past decade, HD has returned 224.88%, a reminder that patience here usually pays. The current valuation reflects cycle pessimism, not structural decline.
Is $450 Realistic? Here’s My Take Reaching $450 by 2028 requires a 38% gain from here. I think it is a stretch but not a long shot.
Three things need to go right: housing turnover normalizes by late 2027, SRS and GMS integration drives operating margin back above 13%, and the Fed cuts enough to revive big-ticket projects.
What derails it? A second leg lower in housing that keeps comps negative into FY27. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Home Depot could reach $450 in 2028.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
McDonald's currently has an average brokerage recommendation (ABR) of 1.95, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 37 brokerage firms. An ABR of 1.95 approximates between Strong Buy and Buy.
Of the 37 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 51.4% and 2.7% of all recommendations.
Brokerage Recommendation Trends for MCD
Check price target & stock forecast for McDonald's here>>>
While the ABR calls for buying McDonald's, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MCD Worth Investing In?Looking at the earnings estimate revisions for McDonald's, the Zacks Consensus Estimate for the current year has declined 0.2% over the past month to $12.93.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for McDonald's with a grain of salt.
Key Takeaways SBUX reported 6% global comparable sales growth, with transaction growth topping 4%.SBUX credits Green Apron Service for better staffing, faster service and higher customer scores.SBUX saw traffic growth across all dayparts and income groups, with morning visits rebounding. Starbucks Corporation (SBUX - Free Report) is showing signs that its turnaround strategy is gaining traction, with improved customer service emerging as a key driver of renewed traffic growth. During the second quarter of fiscal 2026, the coffee giant reported global comparable sales growth of 6%, including more than 7% growth in North America. Notably, transaction growth exceeded 4%, marking the strongest customer traffic performance the company has seen in roughly three years.
At the center of this recovery is Starbucks' "Green Apron Service" initiative, which focuses on better staffing, scheduling, leadership stability and faster service. Management noted that customer experience scores continued to improve during the quarter, while service times remained on target despite higher transaction volumes. The company has also introduced new operational tools, such as the Grow scorecard, to help stores maintain consistent service standards and identify areas for improvement.
The improvements appear to be resonating with consumers. Starbucks reported transaction growth across all dayparts and income groups, suggesting that customers are responding positively to a more reliable and engaging in-store experience. Management highlighted that morning traffic has nearly returned to fiscal 2022 levels, while brand affinity, purchase intent and customer perception of value have all strengthened.
While menu innovation and rewards program enhancements have also contributed to growth, Starbucks' leadership believes superior service is the foundation of its recovery. If the company continues to execute on the customer experience initiatives, it may be well positioned to sustain traffic gains and strengthen long-term growth prospects.
How Do Competitors Compare on Customer Experience?Starbucks' renewed focus on service quality puts it in direct competition with other coffee and beverage chains that are also investing heavily in customer experience. Among its key rivals are Dutch Bros Inc. (BROS - Free Report) and Restaurant Brands International's (QSR - Free Report) Tim Hortons.
Dutch Bros has built its brand around fast service and energetic customer interactions. The company emphasizes friendly employee engagement and efficient drive-thru operations, helping it attract younger consumers and generate strong customer loyalty. As Dutch Bros expands nationally, its people-centric service model presents a meaningful challenge to Starbucks, particularly in drive-thru-focused markets.
Meanwhile, Tim Hortons, a dominant coffee chain in Canada with a growing international presence, continues to invest in digital ordering, loyalty programs and operational improvements. Restaurant Brands International's brand has focused on reducing wait times and enhancing convenience through mobile technology, similar to Starbucks' efforts to improve order accuracy and speed.
While both competitors are strengthening their customer experience initiatives, Starbucks' combination of premium coffee offerings, personalized rewards, upgraded stores and Green Apron Service gives it a differentiated approach. The recent rebound in traffic suggests these investments are helping Starbucks regain its competitive edge.
SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 21.1% in the past six months compared with the industry’s 0.9% growth.
SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 35.82, above the industry’s average of 23.05.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. The EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
Image Source: Zacks Investment Research
SBUX’s Zacks RankSBUX stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways RCL benefits from record pricing, strong onboard spending and continued double-digit growth expectations.RCL is expanding exclusive destinations, loyalty programs and digital tools to boost engagement.RCL faces risks from fuel costs, geopolitical uncertainty and modest earnings estimate cuts. Royal Caribbean Cruises Ltd.’s (RCL - Free Report) shares have climbed 16.5% over the past month, compared with the industry’s increase of 7.2%. The company’s ability to sustain strong demand, expand margins and generate long-term earnings growth despite a volatile macroeconomic backdrop bodes well.
The rally has been fueled by management’s upbeat commentary on consumer spending trends, record booking activity, resilient pricing, growing onboard spending and confidence in delivering another year of double-digit revenue and earnings growth.
Investors also appear encouraged by Royal Caribbean’s expanding portfolio of exclusive destinations, growing loyalty ecosystem and technology-driven initiatives that are helping deepen customer engagement and strengthen its competitive position. While geopolitical uncertainties and fuel-cost pressures remain concerns, the cruise operator continues to demonstrate why it is viewed as one of the strongest players in the global vacation industry.
On the other hand, within the same time frame, shares of other industry players like Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Carnival Corporation & plc (CCL - Free Report) have gained 27.3% and 17.1%, respectively.
Price Performance
Image Source: Zacks Investment Research
What’s Working in Royal Caribbean’s Favor?Royal Caribbean continues to benefit from one of the strongest demand environments in the travel industry. Management noted that consumers remain highly engaged, prioritizing experiences over material purchases. The company’s booking position remains at record pricing levels, while onboard spending continues to run well above pre-pandemic norms. This combination is supporting healthy revenue growth and profitability.
Another major strength is Royal Caribbean’s leadership in the Caribbean market. The region represents more than half of the company’s deployment, and management expects positive Caribbean yield growth in 2026 despite industry capacity additions. Premium destinations such as Perfect Day at CocoCay and Royal Beach Club Paradise Island continue to differentiate the company’s offerings and support pricing power.
The company is also seeing increasing benefits from its digital transformation initiatives. Mobile app adoption exceeds 90%, digital booking penetration has more than doubled since 2019 and over half of onboard purchases are now made before guests board a ship. These trends allow Royal Caribbean to personalize vacations, improve guest engagement and drive higher onboard spending.
Loyalty initiatives are creating another growth avenue. Repeat guests now account for roughly 40% of customers, up from historical levels. Management noted that repeat customers spend about 25% more than first-time cruisers, boosting customer lifetime value and reducing acquisition costs. The company’s Status Match program and new Royal ONE co-branded credit card should further strengthen customer retention.
Growth prospects also remain compelling. Royal Caribbean continues expanding its destination ecosystem through projects such as Royal Beach Club Santorini, Royal Beach Club Cozumel and Perfect Day Mexico. The latter is expected to become a major draw for the underpenetrated Texas cruise market. Meanwhile, the Icon-class fleet continues to generate strong consumer demand, with bookings for the upcoming Legend of the Seas reportedly ahead of previous Icon-class launches.
Financially, the company remains on a solid footing. First-quarter adjusted EBITDA margin expanded more than 300 basis points year over year to 38%, operating cash flow increased 13%, and leverage ended the quarter below 3x. Strong cash generation provides flexibility for fleet investments, debt reduction and shareholder returns.
What Could Hurt RCL Going Forward?Despite the favorable outlook, investors should not overlook several risks. The most immediate concern is geopolitical uncertainty. Royal Caribbean acknowledged that conflicts in the Middle East temporarily weakened booking trends for high-yield Mediterranean itineraries. Although management said bookings have rebounded and demand has “turned the corner,” these disruptions forced the company to reduce its yield expectations for parts of 2026.
Fuel costs represent another challenge. Rising fuel prices are expected to create a significant earnings headwind this year. Management estimates current fuel prices could reduce earnings by approximately 62 cents per share, even with nearly 60% of 2026 fuel consumption hedged. Additional energy price volatility could pressure margins.
Airfare inflation and travel disruptions also remain concerns. Higher flight costs and reduced airline capacity negatively affected Mediterranean bookings during the quarter. While conditions have improved, further disruptions could impact customer travel decisions, particularly for international itineraries.
The company is also navigating capacity growth across the industry. While Royal Caribbean believes its premium destinations and newer ships provide a competitive advantage, increased cruise supply could eventually put pressure on prices if demand softens.
RCL Estimate RevisionsIn the past 30 days, analysts have trimmed their estimates for the current and the next years by 0.5% to $17.27 and 0.7% to $19.86, respectively. These estimates indicate year-over-year growth rates of 10.4% and 15%, respectively. Then again, Carnival and Norwegian Cruise’s current-year earnings are estimated to witness year-over-year declines of 1.3% and 20.4%, respectively.
Image Source: Zacks Investment Research
Royal Caribbean Trades at a DiscountRCL is currently priced at an attractive discount relative to its industry, making it a compelling opportunity for investors. With a forward 12-month price-to-earnings (P/E) ratio of 15.96, below the industry average, RCL’s valuation suggests room for upside, reinforcing its appeal for those looking to capitalize on its growth trajectory.
Image Source: Zacks Investment Research
Wrapping UpRoyal Caribbean appears well positioned to continue benefiting from strong consumer demand, premium vacation offerings, a growing base of loyal customers and an expanding portfolio of exclusive destinations. The company’s focus on enhancing guest experiences through new ships, destination investments and digital innovation should support long-term revenue and profit growth.
However, the stock’s recent surge leaves less room for error, particularly as the company navigates geopolitical uncertainties, elevated fuel costs and potential travel disruptions that could weigh on demand in certain regions. While Royal Caribbean's competitive advantages and growth initiatives justify confidence in its long-term outlook, the recent rally and modest downward revisions to earnings estimates suggest that risk-reward is becoming more balanced. Consequently, current shareholders may consider holding the stock to participate in the company's ongoing growth story, while prospective investors may prefer to wait for a more favorable entry point before building new positions.
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Paypal (PYPL - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this technology platform and digital payments company have returned -6.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Financial Transaction Services industry, which Paypal falls in, has lost 2.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Paypal is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of -8.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The consensus earnings estimate of $5.3 for the current fiscal year indicates a year-over-year change of -0.2%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.78 indicates a change of +9.1% from what Paypal is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Paypal.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Paypal, the consensus sales estimate of $8.5 billion for the current quarter points to a year-over-year change of +2.6%. The $34.26 billion and $35.71 billion estimates for the current and next fiscal years indicate changes of +3.3% and +4.2%, respectively.
Last Reported Results and Surprise HistoryPaypal reported revenues of $8.35 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $1.34 for the same period compares with $1.33 a year ago.
Compared to the Zacks Consensus Estimate of $8.11 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +5.51%.
Over the last four quarters, Paypal surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Paypal is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paypal. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Intel (INTC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this world's largest chipmaker have returned +14.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Semiconductor - General industry, which Intel falls in, has lost 5.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Intel is expected to post earnings of $0.21 per share, indicating a change of +310% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.06 points to a change of +152.4% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $1.45 indicates a change of +36.8% from what Intel is expected to report a year ago. Over the past month, the estimate has changed +0.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Intel is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Intel, the consensus sales estimate for the current quarter of $14.39 billion indicates a year-over-year change of +11.9%. For the current and next fiscal years, $57.79 billion and $63.16 billion estimates indicate +9.3% and +9.3% changes, respectively.
Last Reported Results and Surprise HistoryIntel reported revenues of $13.58 billion in the last reported quarter, representing a year-over-year change of +7.2%. EPS of $0.29 for the same period compares with $0.13 a year ago.
Compared to the Zacks Consensus Estimate of $12.33 billion, the reported revenues represent a surprise of +10.09%. The EPS surprise was +2800%.
Over the last four quarters, Intel surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Intel is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intel. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Adobe (ADBE - Free Report) . ADBE is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.92. This compares to its industry's average Forward P/E of 20.49. ADBE's Forward P/E has been as high as 29.40 and as low as 14.85, with a median of 19.20, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ADBE has a P/S ratio of 3.27. This compares to its industry's average P/S of 3.45.
These are only a few of the key metrics included in Adobe's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ADBE looks like an impressive value stock at the moment.
Shopify (SHOP - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this cloud-based commerce company have returned +7.9%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Internet - Services industry, which Shopify falls in, has lost 6.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Shopify is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of +11.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.8 for the current fiscal year indicates a year-over-year change of +53.9%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.17 indicates a change of +20.8% from what Shopify is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Shopify is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Shopify, the consensus sales estimate of $3.43 billion for the current quarter points to a year-over-year change of +28%. The $14.71 billion and $17.99 billion estimates for the current and next fiscal years indicate changes of +27.3% and +22.3%, respectively.
Last Reported Results and Surprise HistoryShopify reported revenues of $3.17 billion in the last reported quarter, representing a year-over-year change of +34.3%. EPS of $0.36 for the same period compares with $0.25 a year ago.
Compared to the Zacks Consensus Estimate of $3.08 billion, the reported revenues represent a surprise of +2.79%. The EPS surprise was +12.5%.
Over the last four quarters, Shopify surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Shopify is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Shopify. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Shopify (SHOP - Free Report) Ottawa,Canada-based Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. Its platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.
SHOP, a #3 (Hold) stock, was added to the Focus List on September 6, 2022 at $29.94 per share. Since then, shares have increased 261.52% to $108.24.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $1.8. SHOP also boasts an average earnings surprise of 7.4%.
Moreover, analysts are expecting SHOP's earnings to grow 53.9% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Pfizer (PFE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned +3.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which Pfizer falls in, has gained 7.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Pfizer is expected to post earnings of $0.68 per share, indicating a change of -12.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $2.99 for the current fiscal year indicates a year-over-year change of -7.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.86 indicates a change of -4.3% from what Pfizer is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Pfizer is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Pfizer, the consensus sales estimate for the current quarter of $14.4 billion indicates a year-over-year change of -1.7%. For the current and next fiscal years, $61.64 billion and $59.75 billion estimates indicate -1.5% and -3.1% changes, respectively.
Last Reported Results and Surprise HistoryPfizer reported revenues of $14.45 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.75 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $13.82 billion, the reported revenues represent a surprise of +4.56%. The EPS surprise was +5.63%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pfizer is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Pfizer. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
PFE trades at a steep discount as COVID sales fade and patent cliffs loom, but new products, oncology strength and pipeline plans could shape its future.
Grants Help Nonprofits Connect Communities to Digital Skills, Technology and Resources
Key Takeaways
Spectrum has awarded $1.1 million in 2026 Spectrum Digital Education grants to 56 nonprofits. Since 2017, Spectrum Digital Education has distributed over $12 million in grants to 233 organizations across the U.S. This year's grants will support programs that help people build digital skills and access the technology needed to learn, work and stay connected. , /PRNewswire/ -- Across the country, local nonprofits are helping people strengthen their digital skills, access technology and stay connected to the opportunities and services that are part of everyday life. Spectrum is supporting that work with $1.1 million in 2026 Spectrum Digital Education grants to 56 nonprofits across its service area. The latest grants bring Spectrum's total investment in the program to more than $12 million since 2017.
What is Spectrum Digital Education?
Spectrum Digital Education partners with local nonprofits on programs that expand access to technology and digital skills training in the communities Spectrum serves. Grants have helped create computer and learning labs, provide devices for individuals and families in need, offer digital literacy programs for seniors, deliver career readiness and workforce training to adults and introduce students to hands-on STEM learning.
"Digital access is important for strong communities – it's at the center of how people learn, work, access services and stay connected to the people and information that matter most," said Rahman Khan, Group Vice President, Community Impact. "As America's Connectivity Company, we understand the role technology plays in everyday life, and Spectrum Digital Education supports nonprofits that give communities the skills, tools and support to make the most of it."
Expanding Access, Building Opportunity
Since 2017, Spectrum Digital Education has:
Awarded more than $12 million to support nonprofits and their communities Delivered 438 grants to 233 unique organizations Helped to distribute more than 20,000 laptops and devices Sponsored more than 50,000 digital education classes Supported programs benefitting nearly 225,000 community members across the U.S. Where This Year's Grants Will Make an Impact
This year's grants will support nonprofits that expand digital skills, technology access and opportunities in their communities including:
Fund for Public Housing (New York City): Expanding an intergenerational technology program that helps youth and community leaders build digital skills for education, career readiness and community engagement. Los Angeles Urban League (Los Angeles): Supporting workforce training that equips job seekers and workers with digital skills, career coaching and pathways into high-growth fields. CARDBOARD Project (Dallas): Providing laptops, digital skills training and workforce preparation for adults experiencing homelessness and other underserved populations. Acton Digital Inc. (O'ahu): Supporting a teen-led program that helps seniors build confidence using technology, from telehealth and online safety to everyday digital tools. MERS Missouri Goodwill Industries (St. Louis): Delivering digital skills workshops and employment resources through a mobile workforce unit. For more information, visit corporate.charter.com/digital-education/grants.
About Spectrum
Spectrum is a suite of advanced communications services offered by Charter Communications, Inc. (NASDAQ:CHTR), a leading broadband connectivity company available to nearly 59 million homes and small to large businesses across 41 states. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.
More information can be found at corporate.charter.com.
Electronic Arts, the digital interactive entertainment company, announced EA Advertising, a new way for brands to connect with fans through its portfolio of games, the company said in a press release Monday.
EA Advertising is expanding EA's ecosystem by enabling brands to integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.
In these interactive gameplay environments, brands become part of the game itself, reflecting how players engage with advertising in real-world contexts through digital ad boards, scoreboards, and brand broadcast overlays.
According to the company, EA has reached over 120 million players each month in 2026, playing the equivalent of 23,000 NFL seasons every day in Madden NFL and completing more than 1 billion matches each month in EA SPORTS FC.
EA is hoping to create meaningful opportunities for brands to connect with its audience through authentic, interactive experiences.
"With EA Advertising, we're helping brands become part of those moments in ways that are relevant and built for players." David Tinson, Chief Experience Officer at Electronic Arts, said in the release.
EA Advertising partners directly with brands to create custom integrations for games and audiences, with in-game challenges, reward-driven objectives, custom vanity items, and branded content.
Advertisers can now collaborate with EA in a privacy-safe way to improve targeting and gain deeper campaign insights using its new proprietary ad server. EA ensures ads are viewable, delivered to real audiences, and measured using industry-accredited standards.
A new partner programEA has also launched the EA SPORTS Partner Program. The program gives brands access to one of the world's most engaged sports communities through opportunities ranging from live events to in-game integrations, live service activations, creator tools, social play experiences, and community-driven programs.
EA has partnered with brands in the past to deliver in-game experiences, including Visa, Lowe's, Red Bull, Xfinity, Peacock, and Mountain Dew.
Last year, EA announced it would go private after being acquired by the Public Investment Fund of Saudi Arabia, Silver Lake, and Affinity Partners in an all-cash deal worth $55 billion.
The Iran war shut down the Strait of Hormuz in late February. Brent crude oil went from around $70 a barrel to briefly over $120 in a matter of days. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP 3.47%) is up nearly 34% year to date over the same stretch, and soaring oil prices are the catalyst.
Understand, however, that oil and explorers don't see their stock prices correlate directly with oil. That's because they're corporations, not commodities, and they've likely hedged their oil price exposure months earlier
But with even higher oil prices a distinct possibility, the environment for explorers and producers to translate those higher prices to the bottom line improves. The International Energy Agency (IEA) has called this the "largest disruption in history." The Iran war shows only on-and-off signs of reaching a resolution, and higher oil prices are not yet fully baked into this sector.
That makes the State Street SPDR S&P Oil & Gas Exploration & Production ETF a buy.
Image source: Getty Images.
How XOP is constructed This ETF tracks the S&P Oil & Gas Exploration & Production Select Industry Index, which targets companies in the integrated oil and gas, exploration and production, and refining and marketing industries. It currently holds 49 stocks and equally weights the final portfolio.
The equal weighting is key to limiting volatility in a concentrated sector. The State Street Energy Select Sector SPDR ETF (XLE 3.20%) has a lot of overlap with this fund, but it also has a 39% combined weighting in ExxonMobil (XOM 3.96%) and Chevron (CVX 3.67%). That's too much faith to put into just two companies. In the State Street SPDR S&P Oil & Gas Exploration & Production ETF, that combined weight is only 5.2%. In other words, the smallest players get as much influence as the bigger players. That's important for diversifying away unnecessary risk.
The earnings story is still developing MetricXOPExpense ratio0.35%Assets under management$3.4 billion1-year return36.4%5-year return (annualized)14.4%Forward price-to-earnings (P/E) ratio8.6Price-to-book (P/B) ratio1.65Top holdingsSM Energy (3.3%), HF Sinclair (3.3%), Murphy Oil (3.1%), Marathon Petroleum (3%) Data source: State Street.
From a structural standpoint, this fund meets all the important criteria for being liquid and tradable. With well over $3 billion in assets, it has more than enough daily trading volume to keep spreads tight. The 0.35% expense isn't Vanguard-esque, but it's reasonable for an equally weighted portfolio of around 50 stocks.
The real story might be the value. The forward price-to-earnings (P/E) ratio of 8.6 is about as cheap as this sector has ever been. The price-to-book (P/B) ratio is about average, historically speaking. But it's evident that recent price gains and revenue/income growth haven't made this ETF expensive by any means.
NYSEMKT: XOPSPDR Series Trust - State Street SPDR S&P Oil & Gas Exploration & Production ETF
Today's Change
(
-3.47
%) $
-5.74
Current Price
$
159.60
The longer the Iran war drags on, the more financially beneficial it becomes for the producers. As I mentioned earlier, producers often lock in hedges months in advance to create more pricing certainty. Many of those hedges were likely in place before oil prices shot higher. If they can eventually negotiate new hedges at $80 to $100 or better, that will result in significant revenue growth, especially for the smaller companies in this portfolio.
In other words, we might yet see significant revenue and earnings improvement over the next few quarters.
But any resolution in the Middle East could quickly reverse that. If the conflict comes to an end, oil prices are likely to drop quickly, which negatively impacts the top and bottom lines. With tensions escalating just over the past few days, it looks like the "higher for longer" outcome is the more likely one.
Be prepared to move on an XOP trade quickly An investment in the State Street SPDR S&P Oil & Gas Exploration & ETF in the short term will depend heavily on geopolitical considerations. The fund is clearly a better buy when oil prices are high than when they're declining. Overall, given its macro outlook, financial conditions, and relative value, this fund is the best buy in this space right now.
Oil prices crashed again Monday morning, with Brent crude futures falling 5.6% and WTI down 5.9% through 10:50 a.m. ET.
As you'd expect, oil stocks are following oil prices lower, with Chevron Corp (CVX 3.67%) stock down 3.1% -- but here's the thing: A 3.1% drop in Conoco stock is only about half the drop in Brent prices, for example.
So why isn't Chevron stock down even more?
Image source: Getty Images.
Peace in the Middle East Let's start with the obvious: why oil prices are dropping at all today. Over the weekend, President Trump announced he has reached a peace deal with Iran. The Strait of Hormuz will open toll-free, and the U.S. naval blockade on Iran will simultaneously cease, and "oil will flow on both ends again for the Region, and the World!"
Iran confirms the peace deal, affirming that fighting will cease "immediately and permanently." Oil investors are selling their shares in anticipation that free-flowing Persian Gulf oil will rebalance supply with demand, causing prices -- and profits -- to drop.
This may be exactly what happens next.
Today's Change
(
-3.67
%) $
-6.88
Current Price
$
180.34
What this means for Chevron stock Or it may not.
Media reports on the peace deal, which won't be officially signed until Friday, conflict on or omit multiple details, for example, on how (or if) Iran's stockpiles of enriched uranium will be seized and disposed of, and whether the U.S. will pay reparations or unfreeze Iranian foreign assets.
Until these details are firmed up -- and acted upon -- it's difficult to call the conflict really over. And there's always the possibility that a peace deal will be violated and the Strait will be bottled up all over again.
Long story short, oil prices and Chevron's stock price are both down today. There's no guarantee either one will stay down for long.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Caterpillar (NYSE:CAT | CAT Price Prediction) has been one of the most surprising large-cap winners of 2026. The world’s largest construction and mining equipment maker has ridden an AI-driven power generation boom, a record backlog, and aggressive buybacks to a 59.63% year-to-date gain and a 155% one-year run. The question now is how much rally is left.
Our 24/7 Wall St. price target for Caterpillar is $984.35, implying 8.1% upside from $910.57. We rate it a buy with a 90% confidence level, the high end of our scale.
24/7 Wall St. Price Target Summary Metric Value Current Price $910.57 24/7 Wall St. Price Target $984.35 Upside 8.1% Recommendation BUY Confidence Level 90% A Data Center Tailwind Reshapes the Story Caterpillar is trading near its $946.83 52-week high after climbing from a $353.14 low.
The catalyst has been Q1 2026 results released April 30. Revenue jumped 22.22% year over year to $17.4 billion, EPS came in at $5.54 versus a $4.6439 estimate, and Power Generation revenue surged 41% on AI data center demand for large reciprocating engines and turbines. Construction Industries also reaccelerated, with revenue up 38%.
CEO Joe Creed framed it bluntly: “A record backlog provides a strong foundation for continued positive momentum.” That backlog reached $63 billion. Management also raised 2026 sales guidance to low double digits and hiked the dividend 8% to $1.63 per share, the 32nd consecutive year of dividend growth.
The Case for $1,030 and Beyond Our bull case price target sits at $1,029.88, a 13.1% return. The bull thesis is straightforward. Independent research from PineBridge and MetLife Investment Management argues data center equipment demand is essentially locked in for the next four to five years, with constraints producing around 25% annually in equipment growth. Caterpillar sits squarely in that pipeline through its turbine and reciprocating engine business.
Add a $63 billion backlog, $5 billion in Q1 buybacks, and a Zacks Rank #1 momentum classification, and the path to a re-rating is visible. Analyst consensus sits at $944.10 with 14 Buy and 1 Strong Buy ratings.
The Risks Worth Watching Our bear case target is $784.39, a 13.86% drawdown. The setup is rich. Caterpillar trades at a 45x trailing P/E and 38x forward, well above its historical range. UBS already downgraded the stock on valuation. Resource Industries segment profit dropped 39% year over year on tariff-driven manufacturing costs, with 7 points of margin compression.
Bulls would counter that the margin hit is concentrated in one segment and largely tariff-mechanical rather than demand-driven, and that dealer inventory builds reflect genuine restocking. Still, with insider activity skewing toward selling and Iran-related supply chain risks rising, a multiple compression toward the high 30s is plausible if 2026 EPS misses.
Caterpillar Price Prediction 2026-2030 The 24/7 Wall St. price target of $984.35 reflects a buy at 90% confidence. The tipping factor is the data center exposure inside Power Generation, which gives Caterpillar a secular growth lane its industrial peers cannot match.
The setup favors investors who can stomach a 1.6 beta and a forward multiple in the high 30s. The thesis weakens if AI capex guidance from hyperscalers cools or if tariff pressure spreads beyond Resource Industries.
Looking further out, here is where our model projects Caterpillar could trade, assuming current growth trajectories and AI infrastructure demand hold.
Year 24/7 Wall St. Price Target 2026 $984.35 2027 $1,045 2028 $1,115 2029 $1,180 2030 $1,243.25 These projections assume Caterpillar continues capturing data center power generation demand and managing tariff costs. Significant upside or downside could come from AI capex cycle shifts or a sustained commodity downturn.
PANAMA CITY, June 15, 2026 (GLOBE NEWSWIRE) -- BingX, a leading cryptocurrency exchange and Web3-AI company, today announced the launch of its Stock Trading Carnival campaign, featuring a total new prize pool of more than $1 million. The campaign marks another step in BingX's broader multi-asset expansion strategy, reinforcing its vision of connecting users to opportunities across both digital assets and traditional financial markets through a single trading platform.
As the third edition of BingX's Global Capital Gala series, this stock-themed campaign will run from June 15 to July 4, 2026. Traders can share the $1 million prize pool by inviting friends to trade stocks, participating in trading activities, with additional rewards available for first-time stock traders on BingX. Users can access popular and trending names such as NVIDIA (NVDA), Micron (MU), Samsung, and SK Hynix, while benefiting from several key advantages:
24/7 Trading for Popular Stocks: Users can seize market opportunities beyond traditional market hours through extended access to selected stock products.Broad Selection of Trending Global Stocks: BingX continuously expands its stock offerings to include some of the world's most sought-after companies and emerging market favorites.Deep Liquidity Across Global Markets: With peak daily TradFi trading volume exceeding $2 billion, BingX enables efficient execution across a diverse range of global equities.Ongoing Market Engagement: Through monthly Global Capital Gala trading events, BingX users are able to explore different asset classes while benefiting from exclusive rewards. "Stock trading represents a key pillar of our multi-asset strategy and reflects growing demand from users seeking broader exposure beyond crypto," said Pablo Monti, spokesperson of BingX. "Through BingX TradFi, we're making it easier for traders to access global markets from a single platform while maintaining the flexibility, accessibility, and user experience they expect from BingX."
About BingX
Founded in 2018, BingX is a leading crypto exchange and Web3-AI company, serving over 40 million users worldwide. Ranked among the top five global crypto derivatives exchanges and a pioneer of crypto copy trading, BingX addresses the evolving needs of users across all experience levels.
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Salesforce (NYSE: CRM), the global leader in CRM, today announced it has signed a definitive agreement to acquire Fin, formerly Intercom, an industry-leading customer agent company. Under the terms of the agreement, Salesforce will acquire Fin for approximately $3.6 billion, subject to customary purchase price adjustments.
Fin’s core offering, its AI Agent, resolves complex customer queries end-to-end, across every channel, including live chat, email, WhatsApp, SMS, phone, and Slack. The AI Agent is powered by the company’s proprietary AI model, Apex, that is purpose-built for customer support and has demonstrated industry-leading resolution rates that outperform top commercially available frontier models.
"We’re thrilled to welcome Fin to Salesforce as we enable every company to become an agentic enterprise,” said Marc Benioff, Chair and CEO, Salesforce. “Fin brings proven agent technology, a deep commitment to customer success, and an incredible AI team that will complement Agentforce with powerful service agent capabilities. Together, we’ll help companies of every size seize this opportunity — accelerating time to value with trusted agents that deliver measurable outcomes at scale."
"This is a major win for consumers of the world,” said Eoghan McCabe, Chief Executive Officer and Co-Founder of Fin. “Our technology has defined this category and set the new standards for what great customer service looks like today. By joining forces with Salesforce, we can deploy it far and wide at a rate far faster than we could have ever achieved on our own.”
Accelerating Agentic Time-to-Value Across Customer Segments
Building on the strength of Agentforce, which reached $1.2 billion in ARR in Q1 FY27, up 205% year-over-year, Fin’s packaged offerings and proprietary models will complement Agentforce’s deeply customizable platform with additional fast-to-value deployment options for service organizations.
Upon close, Salesforce and Fin will give customers more ways to deploy AI agents across their customer service operations, with fast time-to-value options especially well-suited for SMB and some commercial organizations that need to launch quickly, integrate with existing systems, and deliver measurable outcomes. Together, Salesforce and Fin will support customers at every stage of AI adoption, from rapidly deployable support agents to more tailored, enterprise-scale transformations built on trusted data, security, governance, and integration.
Fin’s AI agent technology will help organizations improve autonomous resolution, reduce cost-to-serve, and accelerate AI adoption across their service organizations. The AI Agent has already demonstrated strong customer outcomes, including examples of AI agents resolving on average 76% of support volume end-to-end. The acquisition will also bring a long-tenured technical AI team and an established global customer base of more than 30,000 companies to Salesforce.
Transaction Details
The transaction is expected to close in the fourth quarter of Salesforce’s fiscal year 2027, subject to the satisfaction of customary closing conditions, including the receipt of required regulatory clearances. Based on the expected timing of closing of the transaction, there is no anticipated change to Salesforce’s fiscal year 2027 financial guidance, previously announced on May 27, 2026. The transaction will not impact Salesforce’s capital return program.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding the proposed acquisition of Fin by Salesforce that involve substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. Forward-looking statements in this report include, among other things, statements about the potential benefits of the proposed acquisition and its lack of impact on previously announced guidance and our capital return program, Salesforce’s plans, the financial condition, results of operations and business of Salesforce and the anticipated timing of the closing of the proposed acquisition. Risks and uncertainties include, but are not limited to: the satisfaction of closing conditions; Salesforce’s ability to successfully integrate Fin; and potential disruptions to business relationships resulting from the announcement. Additional information is detailed in Salesforce’s latest filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Salesforce assumes no obligation to, and does not intend to, update these forward-looking statements, except as required by law.
About Salesforce
Salesforce helps organizations of any size become agentic enterprises - integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation. Visit www.salesforce.com for more information.
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Salesforce on Monday said it is buying AI customer service platform Fin for about $3.6 billion as businesses accelerate their agentic offerings for enterprises.
The deal, expected to close in the fourth quarter of the company's fiscal 2027 year, will complement its flagship Agentforce platform, offering additional ways to deploy agentic artificial intelligence, the company said in a release.
Fin's primary offering is an AI agent capable of resolving chat, email, WhatsApp, text message, phone, and Slack queries, Salesforce said. The agent is powered by its proprietary AI model known as Apex.
"Together, we'll help companies of every size seize this opportunity — accelerating time to value with trusted agents that deliver measurable outcomes at scale," said Salesforce CEO Marc Benioff in a release.
Like many software-as-a-service companies, Salesforce is grappling with concerns that new AI tools will render its business model obsolete. Against this backdrop, Salesforce shares have shed more than a third of their value in 2026.
Read more CNBC tech newsA year after Meta tapped Alexandr Wang to build a new AI model, Zuckerberg has to sell itAnthropic disables access to Fable 5 and Mythos 5 to comply with government directiveFrom 10% chance of success to $2 trillion market cap: SpaceX's historic IPONew SpaceX millionaires are reinventing the business of managing large wealthAt the same time, the rise of agentic AI is heightening competition and forcing companies to beef up and invest in more autonomous tech for customers.
"Over the past few years we've been shipping intensely," CEO Eoghan McCabe wrote in a post to social media platform X. "Including recently our groundbreaking model, Apex, and our paradigm-defining internal agent, Operator. With the resources of Salesforce, this will only accelerate."
McCabe has publicly endorsed President Donald Trump and posted photos with the president and his administration on social media.
In its nearly three-decade history, Salesforce has made several multibillion-dollar acquisitions. Its largest was a more than $27 billion deal for chat software company Slack, which closed in 2021.
In its recent quarterly earnings report, Salesforce topped Wall Street's estimates, but its backlog came up short.
Joining Jim Cramer's "Mad Money" following the results, Benioff shot down concerns that the company is getting disrupted by AI. He said the company saw "record" transactions in the first quarter, and Slack experienced strong growth due to AI.
"We've never seen this many large transactions happen, and also I think we're going to see in the second quarter — attrition is probably coming down," he said.
Image Credits:Interim Archives / Getty Images Salesforce announced on Monday that it will acquire AI customer service platform Fin for $3.6 billion. Formerly known as Intercom, Fin offers an AI agent that can resolve customer queries across channels, using live chat, WhatsApp, SMS, phone calls, Slack, and more.
Salesforce says it wants to use Fin’s team and technology to improve Agentforce, its existing enterprise platform that businesses can use to build custom AI agents that automate tasks.
“Fin brings proven agent technology, a deep commitment to customer success, and an incredible AI team that will complement Agentforce with powerful service agent capabilities,” said Salesforce CEO Marc Benioff in a statement. “Together, we’ll help companies of every size seize this opportunity — accelerating time to value with trusted agents that deliver measurable outcomes at scale.”
The transaction is expected to close in the last quarter of Salesforce’s 2027 fiscal year, which is actually slated for the first few months of 2027 because of how the company reports its financials.
“To our customers: Over the past few years we’ve been shipping intensely. Including recently our groundbreaking model, Apex, and our paradigm-defining internal agent, Operator,” wrote Fin co-founder and CEO Eoghan McCabe in an X post. “With the resources of Salesforce this will only accelerate. And yet little will practically change. I’ll still be CEO, Des will still be running R&D, we’ll both still be committed to continuing to lead this category. Thank you very sincerely and deeply for your belief in us.”
We’re excited to share that we just signed an agreement for @salesforce to acquire @fin_ai for ~$3.6B. The transaction is expected to close in the fourth quarter of Salesforce’s fiscal year 2027.
Fin started as Intercom 15 years ago. We changed our name to cap our transformation… pic.twitter.com/ghD3xGld55
Salesforce Inc (NYSE:CRM, XETRA:FOO) said on Monday it has agreed to acquire Fin, formerly known as Intercom, in a deal valued at approximately $3.6 billion, as the enterprise software giant looks to bolster its artificial intelligence agent capabilities.
Fin's core product is an AI agent that handles customer service queries across channels including live chat, email, WhatsApp, SMS, phone, and Slack. The agent runs on a proprietary AI model called Apex, built specifically for customer support, which the company says has resolved an average of 76% of support volume end-to-end.
"We're thrilled to welcome Fin to Salesforce as we enable every company to become an agentic enterprise," Salesforce CEO Marc Benioff said in a statement. "Fin brings proven agent technology, a deep commitment to customer success, and an incredible AI team that will complement Agentforce with powerful service agent capabilities."
The deal adds more than 30,000 companies to Salesforce's customer base and brings Fin's technical AI team into the fold. Fin CEO and co-founder Eoghan McCabe said the combination would allow the company to deploy its technology more broadly than it could have independently.
The acquisition is expected to close in the fourth quarter of Salesforce's fiscal year 2027.
Fin's technology will complement Agentforce, Salesforce's existing AI platform, which reached $1.2 billion in annual recurring revenue in the first quarter of fiscal 2027, up 205% year-over-year. Salesforce said the combined offering would be particularly suited to small and mid-sized businesses looking to deploy AI-powered customer service quickly.
Salesforce shares were up approximately 1.2% on Monday.
Wall Street rallied toward record highs Monday as President Donald Trump declared the Strait of Hormuz reopened and oil prices plunged, yet a cluster of the market’s biggest names are still trading well below their pre-war levels.
West Texas Intermediate fell 5.4% on Monday to about $80 a barrel, now trading more than 30% below its wartime peak, as the U.S. and Iran moved to end the conflict and reopen the strait.
Using Benzinga Pro, a screen of stocks worth more than $100 billion turns up 20 names still trading below their February 27 close, the last session before the war began. Each remains down by 15% to 24%.
What Trump Said On IranTrump announced the agreement Sunday on Truth Social, clearing the reopening of the waterway and lifting the United States naval blockade.
"The Deal with the Islamic Republic of Iran is now complete. … Ships of the world, start your engines. Let the oil flow!"
On Monday, Trump added the relief was already reaching the water.
“Ships are starting to move, many loaded up with Oil, out of the Strait,” he wrote on Truth Social on Monday, describing a southern shipping route he called safe and secure. Roughly a fifth of the world's oil moves through the strait. Its closure since late February had built a war premium into every barrel.
The formal peace agreement is now set to be signed Friday in Switzerland. Vice President JD Vance said the full text would be released this week.
Which Stocks Lagged During Iran War?According to Benzinga Pro, the stocks still trading below their February 27, 2026 close cluster in consumer staples, healthcare, communication services, software and mining.
China is the world's biggest crude importer, so the Hormuz shock hit it hardest. Higher energy costs fed straight into the cost base of its companies and squeezed profit margins.
For these names the weakness is not a war story. The group has kept sliding over the past quarter, extending a downtrend that was already in place before the first shot was fired.
Image: Shutterstock
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TMUS has a Growth Style Score of B, forecasting year-over-year earnings growth of 9.6% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $10.65 per share. TMUS also boasts an average earnings surprise of +12.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TMUS should be on investors' short list.
US stocks opened higher on Monday as investors welcomed signs of a potential agreement between the United States and Iran to end their conflict, while continued enthusiasm surrounding SpaceX’s blockbuster market debut added to the positive sentiment.
The Dow Jones Industrial Average climbed 621 points, or 1.21%, while the S&P 500 advanced 1.5%.
Nasdaq Composite led the gains, rising 2.37% as technology and artificial intelligence-related stocks moved higher.
The rally followed reports that Washington and Tehran had reached a preliminary framework aimed at ending the conflict and reopening the Strait of Hormuz, a key global shipping route.
According to reports, the agreement could be formally signed in Switzerland on Friday.
Investor sentiment received a boost after President Donald Trump announced that an agreement with Iran was “now complete.”
Pakistan Prime Minister Shehbaz Sharif later said the memorandum of understanding would be signed later this week.
The prospect of renewed oil flows from the Middle East sent crude prices sharply lower.
US crude fell about 5% to around $80 per barrel, while broader energy markets dropped to their lowest levels since March.
Lower oil prices lifted shares of companies that typically benefit from reduced fuel costs.
United Airlines rose 7% in trading, while Delta Air Lines and American Airlines each gained 4.3% and 3.8% respectively .
Cruise operators Norwegian Cruise Line and Carnival also advanced roughly 5%.
Energy producers moved in the opposite direction.
Shares of Exxon Mobil and Chevron each declined more than 4% as investors adjusted to the prospect of weaker crude prices.
Markets also remained focused on SpaceX after the Elon Musk-led company completed one of the most closely watched public offerings in recent years.
SpaceX shares rose another 5.2% in trading after surging more than 19% during their Nasdaq debut on Friday.
The company ended its first trading day with a market capitalization exceeding $2 trillion.
The successful launch has strengthened confidence in the IPO market ahead of several highly anticipated listings expected later this year.
Analysts said the smooth debut could provide a template for future public offerings, including potential listings from OpenAI and Anthropic.
Technology and semiconductor stocks also advanced as investors rotated back into AI-related names.
Micron surged 7.8% after several brokerages raised their price targets on the stock.
Nvidia gained 2.5%, Intel added 4%, and Marvell Technology rose 4.1% in trading.
Meanwhile, investors continued to monitor the upcoming Federal Reserve policy meeting, the first under Chair Kevin Warsh.
Markets overwhelmingly expect policymakers to leave interest rates unchanged this week, although traders remain focused on any signals regarding the future path of monetary policy.
The CBOE Volatility Index, often referred to as Wall Street’s fear gauge, fell to a more than one-week low, reflecting improving investor confidence as geopolitical concerns eased and growth-focused sectors regained momentum.
Have you assessed how the international operations of Oracle (ORCL - Free Report) performed in the quarter ended May 2026? For this software maker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of ORCL's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter stood at $19.18 billion, increasing 20.6% year over year. Now, let's delve into ORCL's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Dive into ORCL's International Revenue TrendsEurope, Middle East and Africa generated $4.09 billion in revenues for the company in the last quarter, constituting 21.3% of the total. This represented a surprise of -6.8% compared to the $4.39 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $3.96 billion (23.1%), and in the year-ago quarter, it contributed $4 billion (25.1%) to the total revenue.
Asia-Pacific accounted for 11% of the company's total revenue during the quarter, translating to $2.1 billion. Revenues from this region represented a surprise of +1.78%, with Wall Street analysts collectively expecting $2.07 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $1.87 billion (10.9%) and $1.87 billion (11.8%) to the total revenue, respectively.
Revenue Forecasts for the International MarketsIt is projected by analysts on Wall Street that Oracle will post revenues of $19.13 billion for the ongoing fiscal quarter, an increase of 28.1% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia-Pacific to this revenue are 22.7%, and 10.7%, translating into $4.34 billion, and $2.04 billion, respectively.
Analysts expect the company to report a total annual revenue of $89.74 billion for the full year, marking an increase of 33.2% compared to last year. The expected revenue contributions from Europe, Middle East and Africa and Asia-Pacific are projected to be 22.8% ($20.49 billion), and 10.7% ($9.64 billion) of the total revenue, in that order.
In ConclusionOracle's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Oracle, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Reviewing Oracle's Recent Stock Price TrendsOver the past month, the stock has lost 4.6% versus the Zacks S&P 500 composite's 0.5% increase. The Zacks Computer and Technology sector, of which Oracle is a part, has risen 0.3% over the same period. The company's shares have increased 23% over the past three months compared to the S&P 500's 11.7% increase. Over the same period, the sector has risen 20.4%
Oracle ORCL shares staged a sharp rebound on Monday, rising around 6% to trade near $194 as investors returned to the software giant following a steep selloff earlier this month.
Oracle shares entered the session down roughly 18% for the month.
The rally came alongside a broader market advance after US President Donald Trump announced that an agreement had been reached to end the war between the United States and Iran.
The Dow Jones Industrial Average gained 630 points, or 1.2%, and reached a new all-time intraday high.
The S&P 500 climbed 1.6%, while the Nasdaq Composite advanced 2.4%.
Analysts remain positive on growth outlookInvestor sentiment received additional support after Mizuho reiterated its Outperform rating and maintained a $320 price target on Oracle.
The firm said Oracle delivered a strong fourth-quarter performance, highlighting Infrastructure-as-a-Service revenue growth of more than 90% year over year as new capacity and the Abilene supercluster came online as scheduled.
Mizuho described Oracle's fiscal 2027 revenue guidance as a conservative starting point and said the company's bring-your-own-cloud strategy and customer prepayment model could help it reach a stage where growth becomes self-funded.
AI spending remains a key debateThe rebound follows a difficult stretch for the stock after investors reacted negatively to Oracle's latest earnings report despite the company exceeding Wall Street expectations.
Last week, Oracle shares fell sharply after management disclosed plans for an additional $20 billion capital raise and reported negative free cash flow for the fiscal year.
For its fiscal fourth quarter, Oracle reported revenue of $19.18 billion, up 21% year over year and above analyst expectations of $19.1 billion, according to LSEG data.
Adjusted earnings per share came in at $2.03, exceeding consensus estimates of $1.96.
However, investors focused on the costs associated with the company's aggressive artificial intelligence infrastructure expansion.
Oracle reported negative free cash flow of $23.7 billion for the fiscal year and said it plans to raise $40 billion through a combination of debt and equity financing.
That includes a previously announced $20 billion share sale.
The company had already raised $43 billion in debt and $5 billion in equity during fiscal 2026.
Capital expenditures surged 162% to $55.7 billion during the year.
New Chief Financial Officer Hilary Maxson said net cash outflows related to capital expenditures are expected to reach approximately $70 billion during fiscal 2027, excluding between $20 billion and $25 billion of customer prepayments.
Despite concerns over spending, Oracle maintained its fiscal 2027 revenue target of $90 billion while increasing its adjusted earnings-per-share forecast to $8.05.
Analysts had been expecting earnings of $8.01 per share on revenue of $88.9 billion.
For the fiscal first quarter, Oracle projected adjusted earnings per share between $1.72 and $1.76 alongside revenue growth of 27% to 29%.
Analysts surveyed by LSEG had been expecting adjusted earnings per share of $1.68.
Cloud infrastructure remained a major growth driver. Revenue from the segment climbed 93% to $5.8 billion during the quarter.
The company's remaining performance obligations, a key measure of future contracted revenue, rose 363% year over year to $638 billion as of May 31.
Analysts polled by StreetAccount had been expecting approximately $595.7 billion.
Piper Sandler said in a report following the earnings release that Oracle would likely remain a debated stock but added that the firm remains constructive on the company's AI-driven consumption growth and continues to recommend the shares.
For investors, the key question remains whether Oracle's enormous AI-related spending will ultimately translate into sustained profit growth.
Wells Fargo announced it has been named a preferred home mortgage lender for ICON, the global leader in advanced construction technologies. The collaboration expands access to financing for buyers of ICON homes and supports broader adoption of innovative construction methods designed to address housing supply and affordability challenges.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260615093622/en/
Wells Fargo sign at branch
Through the relationship, Wells Fargo Home Mortgage will offer a 50-basis point lender credit to qualified buyers who finance the purchase of an ICON home through Wells Fargo.
“At a time when the housing market needs new ways to increase supply and improve affordability, we see strong potential in ICON’s technology,” said Serhat Oztop, head of Home Lending at Wells Fargo. “By serving as a preferred lender, we’re helping turn innovative construction into real homeownership opportunities while supporting responsible growth in this emerging space.”
“Having one of the nation’s leading banking institutions step in as a preferred lender helps more people understand that 3D‑printed homes are ready for the market,” said Jason Ballard, co‑founder and CEO of ICON. “This collaboration makes it easier for buyers to access financing and supports broader adoption of this technology.”
Wells Fargo’s relationship with ICON builds on a collaboration that began in 2019 when Wells Fargo Technology Banking began discussions with ICON around payments automation and capital markets. The mutually shared values around driving innovation for home ownership and sustainability became the common thread that grew the relationship. The conversations quickly expanded, including introducing ICON to the Wells Fargo Foundation to support Initiative 99, a global architecture competition focused on designing high-quality homes that could be built for $99,000 or less using 3D-printing technology. As part of that effort, Wells Fargo provided a $500,000 grant to help bring winning Initiative 99 designs to life at Mobile Loaves & Fishes' Community First! Village in Austin, Texas, advancing solutions for the chronically homeless while demonstrating the cost and waste reduction potential of robotic construction.
About ICON
ICON is the global leader in advanced construction technologies, developing robotics, intelligent software systems, and advanced materials that are changing the way the world builds on Earth and beyond. For more information visit www.iconbuild.com or follow on X™, Instagram®, Facebook®, YouTube®, LinkedIn, or Threads® (@ICON3DTech).
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $2.2 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 33 on Fortune’s 2025 rankings of America’s largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Equal Housing Lender
Additional information may be found at [url="]www.wellsfargo.com [/url]
LinkedIn: https://www.linkedin.com/company/wellsfargo
News Release Category: WF-PS
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Key Takeaways Block launched Square High Yield Savings, offering eligible sellers a 3.5% APY on reserves.XYZ activates the higher APY automatically when Square Savings balances reach $10,000.Block plans a sales tax folder to automate tax savings and simplify cash management. Block's (XYZ - Free Report) banking subsidiary, Square Financial Services (“SFS”), has introduced Square High Yield Savings, allowing eligible Square sellers who maintain at least $10,000 in daily cash reserves in their Square Savings account to earn a 3.5% annual percentage yield (APY). The offered rate is significantly above the national average savings account yield, enhancing the value proposition for merchants using Square's ecosystem.
The initiative supports SFS' strategy to grow core deposits while providing sellers with an attractive return on idle cash. A larger deposit base can also strengthen SFS' ability to fund lending programs and further expand Block's suite of financial services for businesses and consumers.
Square sellers can automatically allocate a portion of their daily sales into their Square Savings account through the Square Dashboard. Once account balances reach the $10,000 threshold, the higher APY is activated automatically.
Key features of the program include no minimum deposit requirement, no monthly maintenance fees and FDIC insurance coverage of up to $2.5 million through the Square Savings deposit sweep program. Interest accrues daily and is applied to the entire account balance.
Square plans to launch an automated sales tax folder within Square Savings. The feature will automatically set aside sales tax collected from eligible card transactions, helping sellers streamline cash management and reduce administrative work. The tool will leverage existing Square tax settings and support businesses operating across multiple locations and tax jurisdictions.
ConclusionBlock’s launch of Square High Yield Savings strengthens the value of its merchant ecosystem by offering competitive returns on cash reserves while encouraging deeper use of its financial services. Combined with upcoming cash management tools, the initiative supports deposit growth, enhances seller convenience and expands the capabilities of Square Financial Services.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have gained 16.1% against the industry's decline of 1.8%.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and Atlassian (TEAM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward by a cent to $2.64 over the past week.
The consensus estimate for TEAM’s 2026 EPS has moved up 17.1% to $5.48 per share over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Snowflake Inc. (SNOW - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned +47.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Internet - Software industry, to which Snowflake belongs, has gained 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Snowflake is expected to post earnings of $0.45 per share for the current quarter, representing a year-over-year change of +28.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.8%.
For the current fiscal year, the consensus earnings estimate of $1.93 points to a change of +54.4% from the prior year. Over the last 30 days, this estimate has changed +13.1%.
For the next fiscal year, the consensus earnings estimate of $2.57 indicates a change of +33.2% from what Snowflake is expected to report a year ago. Over the past month, the estimate has changed +7.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Snowflake.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Snowflake, the consensus sales estimate for the current quarter of $1.47 billion indicates a year-over-year change of +28.4%. For the current and next fiscal years, $6.07 billion and $7.55 billion estimates indicate +29.6% and +24.4% changes, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.39 billion in the last reported quarter, representing a year-over-year change of +33.5%. EPS of $0.39 for the same period compares with $0.24 a year ago.
Compared to the Zacks Consensus Estimate of $1.32 billion, the reported revenues represent a surprise of +5.23%. The EPS surprise was +21.88%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Globe Life (GL - Free Report) Based in McKinney, TX, and founded in 1979, Globe Life Inc. (formerly known as Torchmark Corporation) is an insurance holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower-middle to middle-income households throughout the United States. Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products, which include traditional whole life, term life and other life insurance. Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans.
GL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. GL has a Momentum Style Score of A, and shares are up 7.6% over the past four weeks.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.37 to $15.64 per share. GL boasts an average earnings surprise of +1.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, GL should be on investors' short list.
Costco (COST - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this warehouse club operator have returned -6.4%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Retail - Discount Stores industry, which Costco falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Costco is expected to post earnings of $6.49 per share for the current quarter, representing a year-over-year change of +10.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
The consensus earnings estimate of $20.38 for the current fiscal year indicates a year-over-year change of +13.3%. This estimate has changed +0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $22.46 indicates a change of +10.2% from what Costco is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Costco.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Costco, the consensus sales estimate for the current quarter of $93.85 billion indicates a year-over-year change of +8.9%. For the current and next fiscal years, $301.03 billion and $324.4 billion estimates indicate +9.4% and +7.8% changes, respectively.
Last Reported Results and Surprise HistoryCostco reported revenues of $70.53 billion in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $4.93 for the same period compares with $4.28 a year ago.
Compared to the Zacks Consensus Estimate of $69.5 billion, the reported revenues represent a surprise of +1.47%. The EPS surprise was +0.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Costco is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Costco. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Costco (COST - Free Report) Based in Issaquah, WA, Costco Wholesale Corporation sells high volumes of food and general merchandise (including household products and appliances) at discounted prices through membership warehouses. It is one of the largest warehouse club operators in the United States. The company also operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China.
COST is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. COST has a Growth Style Score of A, forecasting year-over-year earnings growth of 13.3% for the current fiscal year.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $20.38 per share. COST also boasts an average earnings surprise of +1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, COST should be on investors' short list.
Moody's Corporation is a dominant global credit ratings agency benefiting from oligopoly dynamics, high barriers to entry, and recurring revenues. MCO has delivered 17 consecutive years of dividend growth, a 10-year CAGR of 10.7%, and maintains a low 29.5% payout ratio, supporting future increases. CFRA forecasts 15% annual EPS growth over the next three years, driven by M&A, AI-driven financing, and robust market conditions, supporting a mid-teens total return outlook.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: SSR Mining (SSRM - Free Report) SSR Mining Inc. is a precious metals miner engaged in the operation, acquisition, exploration and development of gold and silver assets across four key jurisdictions: the United States, Türkiye, Canada and Argentina. Incorporated in British Columbia in 2005, the company is headquartered in Denver, Colorado. Its portfolio is anchored in several of the world’s most prolific mineral belts. These include the Çöpler mine along the Tethyan Metallogenic Belt in Türkiye; the Marigold mine situated on Nevada’s Battle Mountain–Eureka trend; the Cripple Creek & Victor (CC&V) mine in Colorado’s historic Cripple Creek Mining District; the Seabee operation along the Trans-Hudson Corridor in Saskatchewan, Canada; and the Puna operation positioned within the Bolivian silver belt in Jujuy, Argentina.
SSRM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.22; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.61 to $4.38 per share. SSRM also boasts an average earnings surprise of +54%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, SSRM should be on investors' short list.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is StoneCo (STNE - Free Report) . STNE is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.19, while its industry has an average P/E of 25.65. STNE's Forward P/E has been as high as 11.19 and as low as 6.09, with a median of 8.65, all within the past year.
Investors should also note that STNE holds a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. STNE's industry has an average PEG of 0.92 right now. Within the past year, STNE's PEG has been as high as 0.45 and as low as 0.28, with a median of 0.35.
Investors should also recognize that STNE has a P/B ratio of 2.71. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.34. Within the past 52 weeks, STNE's P/B has been as high as 2.71 and as low as 0.88, with a median of 1.45.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. STNE has a P/S ratio of 1.04. This compares to its industry's average P/S of 2.72.
These are only a few of the key metrics included in StoneCo's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, STNE looks like an impressive value stock at the moment.
Shares of StoneCo Ltd. (STNE - Free Report) have gained 17.2% over the past four weeks to close the last trading session at $11.26, 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 $14.99 indicates a potential upside of 33.1%.
The average comprises nine short-term price targets ranging from a low of $9.00 to a high of $23.00, with a standard deviation of $4.4. While the lowest estimate indicates a decline of 20.1% from the current price level, the most optimistic estimate points to a 104.3% upside. More than the range, one should 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 STNE, 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.
Why STNE Could Witness a Solid UpsideThere 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.
The Zacks Consensus Estimate for the current year has increased 16.1% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, STNE 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 STNE could gain, the direction of price movement it implies does appear to be a good guide.
The Federal Reserve has cut 75 basis points since September 2025, dragging the fed funds upper bound to 3.75%. That backdrop matters for Duke Energy (NYSE:DUK | DUK Price Prediction), a regulated electric and gas utility serving 10 million customers across the Carolinas, Florida, Indiana, Ohio and Kentucky. Lower rates ease refinancing costs on a $103 billion five-year capital plan and push income investors back toward the stock’s 3.41% yield. The question I want to answer: is that dividend bulletproof?
Dividend Snapshot Metric Value Annual Dividend $4.24 per share Dividend Yield 3.41% Quarterly Rate $1.065 Most Recent Increase +1.9% (Q1 2026) Beta 0.379 Payout Ratios Leave Comfortable Room on Earnings, Less on Reported FCF TTM EPS of $6.50 against a $4.24 dividend pencils out to a 65% earnings payout ratio, squarely in the healthy zone for a regulated utility. Operating cash flow tells an even better story: $12.352 billion in 2025 covered $3.3 billion of common dividends 3.74x over.
Metric Value Assessment Earnings Payout Ratio 65% Healthy OCF Dividend Coverage 3.74x Strong FCF (post-CapEx) -$1.67B Capex-driven, financed Reported FCF is negative because CapEx ran $14.02 billion as Duke builds out generation and grid for AI load. That is the utility model: dividends are funded from cash flow while growth CapEx is funded by rate base recovery and debt.
Balance Sheet Built for the Build-Out EBITDA of $16.48 billion and equity of $54.46 billion support the leverage. Cash jumped to $2.14B in Q1 2026, up 350% YoY, helped by $5.3 billion in strategic transactions that strengthened the credit profile.
A Streak That Keeps Climbing Year Quarterly Dividend 2026 $1.065 2025 $1.045 2024 $1.045 / $1.025 2023 $1.025 2022 $1.005 The dividend has risen every year in the available record from $0.78 in 2013 to $1.065 in 2026. No cuts, no freezes.
Management Sounds Confident CEO Harry Sideris told investors on the Q4 2025 call: “The fundamentals of our business have never been stronger… we are well-positioned to deliver 5% to 7% EPS growth through 2030.” With 2026 EPS guided to $6.55 to $6.80 and 7.6 GW of data center demand contracted, the earnings runway supports continued raises.
The Verdict: This Dividend Is Rock Solid Dividend Safety Rating: Safe. A 65% earnings payout, 3.74x OCF coverage, a beta of 0.379, and an easing Fed that lowers Duke’s refinancing burden all line up for income investors. The setup looks attractive for income investors if rates keep drifting lower and rate cases continue clearing. The risks to monitor are regulators rejecting the 14% North Carolina rate request or data center demand underdelivers. On the numbers in front of me, this payout looks built to last.
After a few years of spectacular gains, Palantir Technologies (PLTR +4.84%) stock has finally been cooling off. Entering this week, it's down 28% since the beginning of the year. Over a five-year stretch, its gains remain impressive at around 420%, but there's clearly been less excitement around the company of late.
Palantir's stock is trading near its 52-week low of $122.68, potentially making it a more enticing value option for investors. The business has, after all, been generating some impressive growth. Is now a good time to buy Palantir Technologies stock?
Image source: Getty Images.
Palantir has been a big winner due to AI Using artificial intelligence (AI) to enhance its platform has been a huge win for Palantir. Its data analytics software helps businesses and government organizations make the best decisions available. It's highly trusted, with U.S. President Donald Trump previously posting on social media about Palantir and its impressive technological abilities on the battlefield.
The proof is in the numbers: Palantir has continually improved its growth rate. Even as its business is growing rapidly, it's still accelerating higher, which is no small task, underscoring just how strong demand has been for the company's products and services.
PLTR Revenue (Quarterly YoY Growth) data by YCharts
In its most recent quarter, which covered the first three months of the year, Palantir also boasted of its Rule of 40 score, which came in at 145%. The score encompasses both its growth rate and adjusted operating margin. It's an excellent sign for a growth stock that it's doing well on both its top and bottom lines. CEO Alex Karp says the company has effectively "shattered the metric."
Today's Change
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Its growth may be impressive, but that may not be enough for the stock to rally higher The problem with Palantir has been that the stock has been trading at exceedingly high levels for a while, which means its valuation is pricing in the company's future growth opportunities. Investors who buy the stock today are paying a significant premium, as its price-to-earnings multiple is more than 140. Even though that has come down significantly from a year ago, it's still fairly high, given that the average stock in the S&P 500 trades at 25 times its earnings.
With a high valuation, it may not be easy for the stock to rise further, especially given many other growth stocks that may be more attractive to retail investors today and in the near future, including new offerings such as SpaceX, OpenAI, and Anthropic. Palantir may no longer be the hot stock to own for retail investors, which is why I wouldn't be surprised if it continues to fall even further this year.
Palantir Technologies Inc. (PLTR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -4.5%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Internet - Software industry, which Palantir Technologies falls in, has gained 0.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Palantir Technologies is expected to post earnings of $0.35 per share for the current quarter, representing a year-over-year change of +118.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.49 for the current fiscal year indicates a year-over-year change of +98.7%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.1 indicates a change of +41% from what Palantir Technologies is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Palantir Technologies.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Palantir Technologies, the consensus sales estimate of $1.81 billion for the current quarter points to a year-over-year change of +80%. The $7.69 billion and $10.86 billion estimates for the current and next fiscal years indicate changes of +71.8% and +41.3%, respectively.
Last Reported Results and Surprise HistoryPalantir Technologies reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +84.7%. EPS of $0.33 for the same period compares with $0.13 a year ago.
Compared to the Zacks Consensus Estimate of $1.54 billion, the reported revenues represent a surprise of +6.04%. The EPS surprise was +13.79%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Palantir Technologies is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Palantir Technologies. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
With the 10-Year Treasury yielding 4.48% and the Fed signaling more cuts ahead, income investors are hunting for yield that compounds. Bristol Myers Squibb (NYSE:BMY | BMY Price Prediction) offers a 4.39% yield backed by 94 consecutive years of dividend payments. The pharma giant is rebuilding around a Growth Portfolio (Eliquis, Camzyos, Breyanzi) while legacy drugs face generic erosion. The question I want answered: is this payout actually safe?
Dividend Snapshot Metric Value Annual Dividend $2.52 per share Dividend Yield 4.39% Consecutive Increases 17 years Most Recent Increase 1.6% (February 2026) Aristocrat Status No (17 of 25 years) Payout Ratios Leave Real Room to Breathe BMY paid out roughly $5.15 billion in dividends against FY2025 non-GAAP EPS of $6.15, putting the earnings payout ratio near 41%. Through nine months of 2025, operating cash flow hit $6.3 billion, comfortably above the ~$3.9 billion of dividends paid in the same window.
Metric Value Assessment Earnings Payout Ratio ~41% Healthy OCF Coverage (9M 2025) ~1.6x Adequate 2026 EPS Guidance $6.05 to $6.35 Covers dividend 2.4x Leverage Is Elevated but Manageable Metric Value Assessment Net Debt ~$33.6B Elevated Net Debt / EBITDA ~1.8x Manageable EBITDA (TTM) $18.97B Strong Cash on Hand $9.57B Solid Buffer A dovish Fed matters here: lower refinancing costs on that ~$49B debt stack directly protect cash available for shareholders.
The Streak Is Intact, Growth Is Modest Year Annual Dividend 2026 $2.52 2025 $2.48 2024 $2.40 2023 $2.28 2022 $2.16 Recent hikes have decelerated to roughly 1.6%, signaling management is preserving capital for pipeline investment rather than chasing aggressive raises.
Management’s Tone Is Confident CEO Christopher Boerner told investors on the Q4 2025 call that BMY has “a strengthened balance sheet that provides the strategic flexibility to continue investing in growth drivers” and pointed to “industry-leading, sustainable growth into the 2030s and beyond”. That is the language of a team prioritizing the dividend.
Verdict: Safe, With Slower Growth Ahead Dividend Safety Rating: Safe. A ~41% earnings payout ratio, inelastic demand for oncology and immunology treatments, and 2026 EPS guidance that covers the payout more than twice over leave a real margin of safety. The dividend looks well-supported if the Growth Portfolio keeps expanding double-digits and pivotal readouts like the ADEPT trial and iberdomide’s August 17, 2026 PDUFA land favorably. The risk picture darkens if legacy erosion overshoots the guided 12-16% decline and debt paydown slows. The dividend is safe; future raises will likely stay modest.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Albemarle (ALB - Free Report) .
Albemarle currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 13 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52% and 8% of all recommendations.
Brokerage Recommendation Trends for ALB
Check price target & stock forecast for Albemarle here>>>
The ABR suggests buying Albemarle, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ALB Worth Investing In?In terms of earnings estimate revisions for Albemarle, the Zacks Consensus Estimate for the current year has increased 7.7% over the past month to $12.39.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Albemarle. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Albemarle may serve as a useful guide for investors.
Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Albemarle (ALB - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
Albemarle is a member of the Basic Materials sector. This group includes 248 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Albemarle is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ALB's full-year earnings has moved 52% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, ALB has moved about 20.5% on a year-to-date basis. In comparison, Basic Materials companies have returned an average of 14.8%. This means that Albemarle is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, CF Industries (CF - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 41.6%.
In CF Industries' case, the consensus EPS estimate for the current year increased 94.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Albemarle belongs to the Chemical - Diversified industry, which includes 29 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, stocks in this group have gained 26% this year, meaning that ALB is slightly underperforming its industry in terms of year-to-date returns.
In contrast, CF Industries falls under the Fertilizers industry. Currently, this industry has 6 stocks and is ranked #47. Since the beginning of the year, the industry has moved +13%.
Investors with an interest in Basic Materials stocks should continue to track Albemarle and CF Industries. These stocks will be looking to continue their solid performance.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Pinterest (PINS - Free Report) Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco. The company provides a platform to show its users (called Pinners) visual recommendations (called Pins) based on their personal taste and interests. Users then save and organize these recommendations into collections (called Boards).
PINS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. PINS has a Momentum Style Score of A, and shares are up 3.8% over the past four weeks.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $1.93 per share. PINS boasts an average earnings surprise of +4.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PINS should be on investors' short list.
Fox agrees to acquire Roku, combining Tubi with a platform of more than 100 million subscribers. Summary
Deal could create the third-largest U.S. television player by viewing share.
Fox Corporation FOXA has agreed to acquire Roku ROKU in a deal valuing the streaming platform at about $22 billion including debt, marking a major push to combine television content, streaming distribution, and digital advertising under one roof. The deal would bring Fox's sports, news, and entertainment channels, including its free ad-supported platform Tubi, together with Roku's platform of more than 100 million subscribers. The companies said the combination would create the third-largest player in the U.S. television market by share of viewing, spanning broadcast, cable, local, and streaming.
Fox will pay $96 in cash and 0.9693 Fox Class A shares for each Roku share. Based on Fox's 10-day volume-weighted average price as of June 10, the stock portion represents $64 per Roku share. Roku shares rose about 1% to $145.25 in premarket trading Monday after jumping 20% Friday, while Fox shares fell 13%, suggesting investors may be weighing the strategic upside against the cost and execution risk of a large media transaction.
Roku helped accelerate the digital home entertainment shift through streaming devices that let viewers access apps such as Netflix and HBO Max on televisions. The company also sells branded TVs and projectors, operates its own streaming channel, and said in April that its devices are used by more than half of all U.S. broadband households. Roku's platform segment generated $4.1 billion, or 87.5% of revenue, last year, while Fox has secured $12 billion in fully committed bridge financing from Morgan Stanley Senior Funding. The deal is expected to close in the first half of 2027.
Fox Corporation FOXA fell 10.81% in premarket after announcing a definitive agreement to acquire Roku ROKU for $160 per share in a cash-and-stock transaction, implying a $22 billion enterprise value. The offer comprises $96 in cash and 0.9693 Fox Class A shares per Roku share, representing an 11.7% premium to Roku's last close. Roku rose 1.63% premarket.
The deal unites Fox's sports, news, and entertainment content, with Roku's connected TV platform and The Roku Channel, which together reach more than 100 million global streaming households. Post-close, Fox shareholders are expected to own approximately 73% of the combined company and Roku shareholders 27%. Fox expects $400 million in run-rate cost synergies, has secured a $12 billion committed bridge financing facility, and anticipates the deal will be accretive to free cash flow per share by the second full year after closing. Net leverage at close is expected at 2.8x LTM EBITDA. The transaction has been unanimously approved by both boards and is expected to close in the first half of 2027.
Roku founder and CEO Anthony Wood will retain a role at the combined company and join the Fox board. Wood and entities controlling a majority of Roku's voting power have signed a voting and support agreement backing the deal. Roku's platform segment generated $4.1 billion in revenue last year, representing 87.5% of total company revenue, with Q1 digital advertising revenue of $613 million, up 27% year-over-year.
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 sale of Roku, Inc. (NASDAQ: ROKU) to Fox Corporation for $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share outstanding.
Halper Sadeh encourages Roku 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 Roku 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 Roku shareholders; (2) conduct a fair sales process free of any conflicts of interests; and (3) disclose all material information for Roku 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.
Halper Sadeh LLC, an investor rights law firm, is investigating the sale of Roku, Inc. (NASDAQ: ROKU) to Fox Corporation for $96.00 in cash and 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share outstanding.
Halper Sadeh encourages Roku 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 Roku 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 Roku shareholders; (2) conduct a fair sales process free of any conflicts of interests; and (3) disclose all material information for Roku 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/20260615149704/en/
