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Key Takeaways Comfort Systems' Q2 EPS jumped 92% to $12.53, while revenues surpassed $3 billion for the first time.FIX's record $14.06 billion backlog rose 73%, with Technology driving 57.6% of first-half revenues.Modular capacity is set to expand as customer commitments support growth through late summer 2027. Comfort Systems USA, Inc. (FIX - Free Report) delivered another blockbuster second quarter of 2026, raising the question of whether its latest earnings surge is merely the beginning of a longer growth cycle. The company’s second-quarter 2026 earnings per share (EPS) jumped 92% year over year to $12.53, while revenues soared 50.3% to $3.27 billion, marking the first quarter in which revenues surpassed $3 billion.

The growth was accompanied by powerful margin expansion. Gross margin improved to 25.9% from 23.5% a year ago, while operating margin expanded to 17.1% from 13.8%. Adjusted EBITDA surged 79.7% to $600.5 million, reflecting strong execution, favorable project economics and operating leverage.

FIX’s backlog reached a record $14.06 billion, up 73% year over year, with same-store backlog climbing 69%. Technology represented 57.6% of first-half 2026 revenues, underscoring the company’s increasing exposure to the data-center and AI infrastructure buildout. Management said demand from hyperscalers remains strong, with no signs of a slowdown. Its Modular business adds another growth lever. The company expects production capacity to rise from more than 3.5 million square feet currently to more than 4 million by year-end and roughly 5 million by late summer 2027, supported by customer commitments.

Cash generation further strengthens the outlook. Second-quarter 2026 operating cash flow reached $1.14 billion, while free cash flow was nearly $1 billion. With $1.85 billion of cash and just $54.1 million of debt, FIX has substantial financial flexibility for acquisitions, capacity expansion and shareholder returns. While exceptionally tough comparisons could moderate growth rates, record backlog, technology exposure, Modular expansion and strong execution suggest Comfort Systems’ earnings momentum could have further room to run.

Comfort Systems vs. Carrier Global & AAON: Profit Push?Comfort Systems appears to have the strongest bottom-line momentum among the three, with the second-quarter 2026 EPS surging 92% and adjusted EBITDA jumping nearly 80%. Margin expansion, favorable project execution, disciplined capacity management and high-return Modular investments are helping amplify earnings growth.

Carrier Global Corporation (CARR - Free Report) is pursuing profitability through operating efficiencies, portfolio actions, share repurchases and investments in commercial HVAC, while strong data-center orders are supporting earnings. Second-quarter 2026 adjusted EPS rose to 86 cents, and the company raised its full-year adjusted EPS outlook to $2.90. AAON, Inc. (AAON - Free Report) delivered the fastest reported bottom-line growth, with second-quarter 2026 EPS soaring 258%, supported by higher throughput, capacity utilization and operating leverage. Pricing actions, sourcing initiatives and tighter cost discipline are expected to drive further margin improvement.

Overall, FIX stands out for the combination of earnings growth, margins and visibility, while AAON offers significant operating leverage and Carrier Global brings scale and portfolio-driven efficiency.

FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have climbed 20.5% over the past six months, outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

FIX stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 30.57, as the trend lines suggest below.

Image Source: Zacks Investment Research

Earnings Estimate Trend of FIXFIX’s earnings estimates for 2026 and 2027 have increased over the past 60 days to $47.65 and $59.31 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 65% and 24.5%, respectively.

Image Source: Zacks Investment Research

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

Sylvamo Corporation (NYSE:SLVM – Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $31.58 and last traded at $32.2810, with a volume of 361637 shares traded. The stock had previously closed at $32.48.

Wall Street Analysts Forecast Growth Several equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Sylvamo in a report on Friday, August 7th. Truist Financial reissued a “buy” rating and set a $49.00 price target (down from $51.00) on shares of Sylvamo in a report on Monday, August 10th. Royal Bank Of Canada dropped their price target on shares of Sylvamo from $49.00 to $46.00 and set a “sector perform” rating on the stock in a research report on Friday, July 17th. Wall Street Zen raised shares of Sylvamo from a “sell” rating to a “hold” rating in a report on Sunday, August 2nd. Finally, Wells Fargo & Company assumed coverage on shares of Sylvamo in a research report on Wednesday, September 16th. They issued an “overweight” rating and a $47.00 price objective for the company. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Sylvamo presently has a consensus rating of “Hold” and a consensus price target of $46.75.

Read Our Latest Stock Analysis on SLVM

Sylvamo Stock Performance The firm has a market cap of $1.29 billion, a PE ratio of 17.20, a PEG ratio of 1.17 and a beta of 0.87. The company has a debt-to-equity ratio of 0.88, a quick ratio of 0.80 and a current ratio of 1.47. The firm’s 50 day moving average price is $36.63 and its two-hundred day moving average price is $38.83. Sylvamo (NYSE:SLVM – Get Free Report) last posted its earnings results on Friday, August 7th. The company reported $0.03 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.01. Sylvamo had a net margin of 2.31% and a return on equity of 8.36%. The firm had revenue of $806.00 million during the quarter, compared to the consensus estimate of $811.25 million. During the same quarter last year, the firm earned $0.37 EPS. The firm’s revenue for the quarter was up 1.5% on a year-over-year basis. On average, research analysts forecast that Sylvamo Corporation will post 1.53 earnings per share for the current year.

Sylvamo Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, October 2nd will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.80 dividend on an annualized basis and a dividend yield of 5.6%. Sylvamo’s payout ratio is currently 95.74%.

Hedge Funds Weigh In On Sylvamo A number of institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp lifted its holdings in shares of Sylvamo by 5.2% in the 2nd quarter. State Street Corp now owns 1,389,749 shares of the company’s stock valued at $52,533,000 after purchasing an additional 69,299 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new position in shares of Sylvamo in the 2nd quarter valued at $224,000. Tidal Investments LLC purchased a new stake in shares of Sylvamo during the second quarter worth approximately $1,299,000. Engineers Gate Manager LP lifted its holdings in shares of Sylvamo by 115.8% during the second quarter. Engineers Gate Manager LP now owns 15,757 shares of the company’s stock worth $596,000 after purchasing an additional 8,457 shares during the period. Finally, Squarepoint Ops LLC acquired a new position in Sylvamo in the 2nd quarter valued at $746,000. Institutional investors and hedge funds own 91.16% of the company’s stock.

Sylvamo Company Profile (Get Free Report)

Sylvamo Corporation (NYSE: SLVM) is a global producer of uncoated paper products. The company manufactures paper used for printing, writing, copying, office applications, and other commercial and industrial purposes. Its portfolio includes cut-size office paper, offset and publishing papers, and specialty paper products sold under brands such as Hammermill, Springhill, and Williamsburg.

Headquartered in Memphis, Tennessee, Sylvamo serves customers through operations and sales networks in North America, Latin America, and Europe.

Featured Articles Five stocks we like better than Sylvamo First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets These 3 Short-Squeeze Candidates Have Catalysts, But Their Risks Are Just as Large 3 High-Yield Dividend Stocks That May Be Safer Than They Seem Insider Trades: Dell Sees Over $1 Billion in Sales, Berkshire Buys a Top Homebuilder Receive News & Ratings for Sylvamo Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sylvamo and related companies with MarketBeat.com's FREE daily email newsletter.

Stifel analyst Tore Svanberg raised the price target for ON Semiconductor (NASDAQ:ON) from $75 to $80. With the inventory correction largely complete but demand recovery still developing, the analyst maintained the Hold rating on the stock.

• ON Semiconductor shares are consolidating. What’s the outlook for ON shares?

Cautious About Demand Recovery PaceThe analyst cites the need for greater visibility into the recovery across its Industrial and Automotive businesses following the recent inventory correction.

At the same time, ON Semi’s growing design-win pipeline across AI/data centers, electric vehicles and energy infrastructure could support stronger margins and provide exposure to a $213 billion total addressable market by 2030, notes the analyst.

The analyst expects the company to report third-quarter revenue slightly above its $1.70 billion estimate, with non-GAAP EPS of 87 cents (versus consensus of 88 cents).

For the fourth quarter, Svanberg forecasts revenue of $1.73 billion, in line with Street consensus, along with non-GAAP EPS of 97 cents versus the 95 cents consensus. The projected December-quarter revenue growth is also above the five-year seasonal average decline of 1.8%.

Estimates Double-Digit Long-Term GrowthThe analyst expects the company to eventually deliver its 12%-14% long-term revenue CAGR target, aided by its diversified customer base and presence across multiple end markets.

Svanberg also believes On Semi’s business transformation and leaner cost structure have improved its margin floor during downturns.

Despite the improving backdrop, the analyst remains cautious about the timing and strength of further gross-margin expansion following the 80-basis-point sequential improvement.

Higher costs could weigh on margins in the near to medium term, while management has yet to see a meaningful Automotive inventory replenishment cycle, adds the analyst.

Read Next

ON Stock Price Activity: ON Semiconductor shares were up 1% at $85.76 at the time of publication on Monday.

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Jefferies initiated coverage of connected-operations platform Samsara (NYSE: IOT) with a 'buy' rating and a $50 price target, saying the company is well positioned to gain share in a large, underpenetrated market for physical operations technology.

Samsara’s platform combines software, proprietary hardware, artificial intelligence, analytics and automation to help businesses reduce liability and improve productivity across physical operations.

Jefferies estimates Samsara can deliver a 22% revenue compound annual growth rate through fiscal 2029, reaching nearly $3 billion of revenue while maintaining a Rule of 40 margin profile.

The analyst said Samsara’s platform processes more than 30 trillion data points annually, creating a proprietary data asset that supports increasingly valuable AI insights, automation and new product development.

Jefferies also sees limited risk from AI-related employee displacement because Samsara’s pricing is primarily linked to physical assets rather than users or employees.

Samsara has captured about 1% of its self-defined $175 billion global addressable market, while penetration of its core product opportunity remains below 5%, leaving room for new customer wins, enterprise share gains and international expansion.

Jefferies highlighted Samsara’s 115% or higher core customer net revenue retention, supported by customers adding products beyond telematics and video safety to include equipment monitoring, asset tracking, routing, maintenance and workflow automation.

The analyst said 96% of large customers use at least two Samsara products, while 72% use three or more, with emerging products contributing more than 20% of new annual contract value.

Jefferies expects upward revisions to Samsara’s conservative fiscal 2027 guidance, supported by improving cRPO and billings coverage, strong customer retention and multi-product adoption.

The shares trade at 10 times calendar 2028 enterprise value to gross profit, according to Jefferies, which sees its $50 target, equivalent to 12.7 times, as justified by comparable growth and profitability.

Key Takeaways Quanta raised its 2026 free cash flow outlook to $2-$2.5 billion after a strong first half.Record backlog of $53.4 billion supports Quanta's revenue visibility and cash-generation outlook.Quanta's cash flow could fluctuate with project timing, working capital, capex and acquisitions. Quanta Services (PWR - Free Report) is entering the second half of 2026 with strengthening cash-generation momentum, supported by robust operating performance, favorable working-capital trends and strong demand across its critical-infrastructure markets.

During the second quarter, Quanta generated operating cash flow of $1.10 billion and free cash flow (FCF) of $886 million. First-half FCF reached $1.07 billion, sharply higher than $288 million in the comparable 2025 period. Management attributed the second-quarter strength partly to favorable working-capital dynamics, particularly from large-load and renewable projects, while days sales outstanding improved to 57 days.

Strong Operations Support Higher Cash OutlookFollowing the strong first half, Quanta raised its full-year 2026 FCF outlook to $2-$2.5 billion, alongside operating cash flow expectations of $2.9-$3.4 billion. The outlook is underpinned by record backlog, expanding project activity and rising investment in electric grids, power generation, data centers and other mission-critical infrastructure.

Quanta's record $53.4 billion backlog also provides substantial revenue visibility, while its self-perform model, broader project scope and efficient resource utilization could help sustain profitability and cash conversion.

Can the Momentum Continue?Cash generation nevertheless could fluctuate with project timing and working-capital requirements. Quanta also expects roughly $900 million of net capital expenditures in 2026, while acquisitions continue to absorb capital. Weather, permitting, supply-chain issues, inflation and project execution remain additional risks.

Still, strong backlog, healthy end-market demand and improving collections suggest Quanta remains well positioned to sustain solid cash momentum through 2026.

Quanta Faces Competition From MasTec and EMCORQuanta Services faces competition from MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) across power, electrical and mission-critical infrastructure markets. MasTec continues to strengthen its position through rising activity in power delivery, clean energy and data-center infrastructure. Its record $21.4 billion backlog supports future growth, while management expects more than $1 billion of operating cash flow in 2026. However, MasTec generated negative $59 million of free cash flow in the second quarter, highlighting comparatively greater working-capital and investment requirements.

EMCOR, meanwhile, is benefiting from strong demand across electrical and mechanical construction, particularly network and communications, manufacturing and other mission-critical markets. Record RPOs of $17.14 billion provide solid revenue visibility, while EMCOR’s operating discipline and strong revenue-to-cash-flow conversion reinforce its financial flexibility. Overall, both competitors have healthy pipelines, but Quanta’s stronger current free-cash-flow momentum remains an important competitive advantage.

PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 58.1% over the past year, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 Index.

Quanta's 1-Year Price Performance

Image Source: Zacks Investment Research

PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 36.07, as evidenced by the chart below.

Quanta Stock's Valuation (P/E F12M)

Image Source: Zacks Investment Research

Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 are pinned at $16.70 and $19.41 per share, respectively, reflecting an upward trend over the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 55.4% and 16.2%, respectively.
 

Image Source: Zacks Investment Research

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

Key Takeaways Ultragenyx's MPS IIIA gene therapy gained EMA validation, advancing its application toward formal review.Clinical data showed a durable efficacy nearly 8 years after treatment with an acceptable safety profile.Gene therapy-treated patients showed a 23.5-point greater mean Bayley-III Cognitive score change. Ultragenyx Pharmaceutical (RARE - Free Report) announced that the European Medicines Agency (EMA) has validated its Marketing Authorization Application (MAA) for the investigational gene therapy rebisufligene etisparvovec (also known as UX111) to treat mucopolysaccharidosis type IIIA (MPS IIIA), also known as Sanfilippo syndrome Type A. The validation marks a key regulatory milestone as the therapy advances toward formal review in Europe.

EMA validation confirms that the application is sufficiently complete for the agency to begin its scientific assessment. However, the validation does not indicate the therapy’s safety or efficacy, nor does it guarantee that the MAA will ultimately be approved. As an investigational advanced therapy, the MAA will undergo the EU’s Joint Clinical Assessment, which supports a coordinated clinical evaluation across EU member states as part of the broader pathway to patient access.

Last month, Ultragenyx received standard full FDA approval for rebisufligene etisparvovec to be marketed in the United States as Fayuvi for treating the neurologic manifestations of MPS IIIA in pediatric patients with preserved neurodevelopmental function. The approval made Fayuvi the first FDA-approved treatment for the rare and fatal neurodegenerative disorder. The approval marked Ultragenyx’s second gene therapy approval and sixth FDA approval overall.

Ultragenyx in-licensed the drug from Abeona Therapeutics in 2022 under an exclusive agreement for ABO-102, which RARE later developed as UX111. Under the deal, Ultragenyx assumed responsibility for the program and obtained exclusive rights to develop, manufacture and commercialize the therapy worldwide. In return, Abeona is eligible for tiered royalties ranging from mid-single-digit percentages to 8% of net sales, along with up to $30 million in commercial milestone payments following regulatory approval.

Clinical Data Backs the FDA Approval of RARE’s MPS IIIA DrugThe EMA validation of the MAA for rebisufligene etisparvovec in MPS IIIA is supported by data from the pivotal Transpher A study and long-term follow-up studies. According to Ultragenyx, clinical data now extend to nearly eight years and show a durable treatment effect across multiple clinical assessments and biomarkers, while maintaining an acceptable safety profile. Biochemical efficacy was demonstrated through reductions in accumulated cerebrospinal fluid heparan sulfate levels, reflecting replacement of the deficient enzyme responsible for the disease throughout the study and across all age groups.

Year to date, Ultragenyx shares have plunged 33.8% against the industry’s 4% growth.

Image Source: Zacks Investment Research

The key efficacy analysis compared 17 rebisufligene etisparvovec-treated patients in the modified intention-to-treat population with 27 untreated patients from an external natural-history cohort. Between 24 and 60 months of age, rebisufligene etisparvovec-treated patients demonstrated a 23.5-point greater mean change in Bayley-III Cognitive raw score compared with the natural-history group. The difference was statistically significant and provided the efficacy basis for the FDA’s standard full approval.

MPS IIIA is an ultra-rare lysosomal storage disorder caused by mutations that result in a deficiency of the sulfamidase enzyme. The resulting accumulation of heparan sulfate primarily damages the central nervous system, leading to progressive developmental delay and eventual loss of cognitive, language and motor abilities. Ultragenyx estimates that the disease affects approximately 3,000 to 5,000 patients across commercially accessible geographies, with a median life expectancy of about 15 years.

Ultragenyx’s rebisufligene etisparvovec is designed as a single-dose intravenous AAV9 gene therapy that delivers a functional copy of the SGSH gene. This enables production of the sulfamidase enzyme that is deficient in patients with MPS IIIA and is intended to address the underlying cause of the disease.

Treatment options for children affected by MPS IIIA remain limited outside the United States, underscoring the significant unmet medical need in this patient population. Rebisufligene etisparvovec has received Priority Medicines (PRIME) and Orphan Drug designations from the EMA, reflecting the rarity and severity of MPS IIIA and the need for new treatment options. These designations support the development and regulatory evaluation of medicines for serious and rare conditions and do not imply that marketing authorization will ultimately be granted.

Ultragenyx is also engaging with health authorities across multiple regions, including initiating discussions with the regulatory bodies in the United Kingdom and Saudi Arabia, as it works toward potential geographic expansion.

RARE’s Zacks Rank & Stocks to ConsiderUltragenyx currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Precigen (PGEN - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and AC Immune (ACIU - Free Report) and Aldeyra Therapeutics (ALDX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Precigen’s 2026 bottom line have improved from a loss of 2 cents to earnings per share of 24 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 73 cents. PGEN shares have increased 104.3% year to date.

Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.

Over the past 60 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents. ACIU shares have lost 13.2% year to date.

AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.

Over the past 60 days, loss per share estimates for Aldeyra Therapeutics have narrowed from 43 cents to 39 cents for 2026. Over the same period, estimates for 2027 loss per share have narrowed from 22 cents to 16 cents. ALDX shares have plunged 77.4% year to date.

Aldeyra Therapeutics’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 29.25%.

Credo Technology Group Holding Ltd. (NASDAQ:CRDO – Get Free Report) fell 4.8% on Monday after an insider sold shares in the company. The stock traded as low as $206.35 and last traded at $208.1210. 1,404,463 shares changed hands during trading, a decline of 81% from the average daily volume of 7,497,591 shares. The stock had previously closed at $218.64.

Specifically, COO Yat Lam sold 50,000 shares of the firm’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $205.22, for a total value of $10,261,000.00. Following the completion of the transaction, the chief operating officer owned 2,254,169 shares in the company, valued at $462,600,562.18. This trade represents a 2.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Chi Cheng sold 27,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total transaction of $5,333,075.00. Following the completion of the transaction, the chief technology officer owned 5,662,397 shares of the company’s stock, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, COO Yat Lam sold 50,000 shares of the company’s stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $206.30, for a total transaction of $10,315,000.00. Following the sale, the chief operating officer owned 2,479,169 shares of the company’s stock, valued at approximately $511,452,564.70. This represents a 1.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades CRDO has been the topic of several research analyst reports. Wall Street Zen cut shares of Credo Technology Group from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Rosenblatt Securities upped their target price on Credo Technology Group from $215.00 to $235.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 2nd. Barclays raised their price target on Credo Technology Group from $260.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Stifel Nicolaus lowered their target price on shares of Credo Technology Group from $350.00 to $310.00 and set a “buy” rating on the stock in a research note on Monday. Finally, Weiss Ratings raised shares of Credo Technology Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Credo Technology Group currently has an average rating of “Moderate Buy” and a consensus target price of $262.67.

View Our Latest Stock Report on Credo Technology Group Credo Technology Group Trading Down 3.6% The business’s fifty day simple moving average is $207.21 and its 200-day simple moving average is $198.59. The firm has a market cap of $39.62 billion, a P/E ratio of 74.42, a price-to-earnings-growth ratio of 0.87 and a beta of 3.25.

Credo Technology Group (NASDAQ:CRDO – Get Free Report) last posted its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.03. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%.The company had revenue of $479.00 million for the quarter, compared to analysts’ expectations of $473.30 million. During the same period last year, the firm earned $0.52 earnings per share. Credo Technology Group’s quarterly revenue was up 114.7% on a year-over-year basis. Analysts anticipate that Credo Technology Group Holding Ltd. will post 5.02 earnings per share for the current year.

Hedge Funds Weigh In On Credo Technology Group A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. Polaris Financial Partners purchased a new stake in Credo Technology Group in the third quarter worth $681,000. GoalVest Advisory LLC increased its position in Credo Technology Group by 49,226.5% during the 3rd quarter. GoalVest Advisory LLC now owns 24,170 shares of the company’s stock valued at $4,708,000 after purchasing an additional 24,121 shares during the period. Burkett Financial Services LLC bought a new position in Credo Technology Group in the 3rd quarter worth $33,000. QRG Capital Management Inc. raised its holdings in Credo Technology Group by 20.8% in the 2nd quarter. QRG Capital Management Inc. now owns 6,527 shares of the company’s stock worth $1,774,000 after purchasing an additional 1,125 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in shares of Credo Technology Group in the 2nd quarter worth about $548,000. Institutional investors own 80.46% of the company’s stock.

Credo Technology Group Company Profile (Get Free Report)

Credo Technology Group Holding Ltd. develops high-speed connectivity solutions for data infrastructure. Its technologies are designed to improve the performance, power efficiency and reliability of connections used in cloud computing, artificial intelligence, high-performance computing, telecommunications and enterprise networks.

The company’s product portfolio includes serializer/deserializer (SerDes) intellectual property, integrated circuits, active electrical cables and optical connectivity products.

Read More Five stocks we like better than Credo Technology Group First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets These 3 Short-Squeeze Candidates Have Catalysts, But Their Risks Are Just as Large 3 High-Yield Dividend Stocks That May Be Safer Than They Seem Insider Trades: Dell Sees Over $1 Billion in Sales, Berkshire Buys a Top Homebuilder Receive News & Ratings for Credo Technology Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Credo Technology Group and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Oceaneering secured a five-year follow-on award from the Navy for Dry Deck Shelter program support.Oceaneering has supported the Dry Deck Shelter program since 2002, building specialized mission expertise.The contract adds potential recurring work while broadening Oceaneering's exposure to defense markets. Oceaneering International, Inc. (OII - Free Report) announced that its Aerospace and Defense Technologies (“ADTech”) segment has secured a follow-on contract from the U.S. Navy to support the Dry Deck Shelter program. The five-year award, which includes one base year and four option years, carries a potential value of $154 million.

The agreement covers maintenance, overhaul, engineering and field change services for Dry Deck Shelters, specialized systems that help enable the deployment of special operations forces and undersea vehicles. For Oceaneering, the award reinforces its position in the U.S. defense market while creating the potential for recurring work over the five-year contract period within its ADTech business.

New Contract Expands Revenue VisibilityThe structure of the contract is important from an investor perspective. While the full $154 million value depends on the exercise of the four option years, the initial base-year award provides a foundation for continued engagement with the Navy. Multi-year contracts can improve revenue visibility and help contractors plan staffing, equipment and resources around established program requirements.

The follow-on nature of the award also distinguishes it from a new customer win. Oceaneering has supported the Navy’s Dry Deck Shelter program since 2002, giving the company a long operating history with the mission. That experience can be valuable in programs where reliability, technical proficiency and familiarity with demanding operating conditions are critical.

Longstanding Expertise Supports Competitive PositionDry Deck Shelter operations involve mission-sensitive activities in which system performance and safety are essential. Oceaneering’s ADTech Marine Services Division has built specialized expertise around sustaining these systems, including maintenance, overhaul and engineering support.

The company’s long relationship with the Navy may strengthen its competitive standing as it continues to pursue work in the undersea defense market. Customers operating specialized military systems often place significant emphasis on technical knowledge, execution discipline and the ability to perform work under strict schedules. Oceaneering’s experience in this program positions the company to address those requirements.

The award also highlights the broader capabilities of ADTech. Oceaneering said the segment provides engineered solutions for U.S. Navy undersea programs and draws on decades of experience in building and sustaining both manned and unmanned subsea systems. This technical foundation gives the company exposure to defense applications that require specialized engineering rather than commoditized services.

Defense Exposure Could Broaden Business MixFor investors, the contract underscores the role that defense and government-related work can play in diversifying Oceaneering’s business. The company is widely associated with subsea technologies and services, but its ADTech operations provide exposure to aerospace and defense applications where long-duration programs can generate more predictable opportunities.

A larger contribution from defense contracts could also help Oceaneering balance fluctuations across other areas of its portfolio. Demand in energy-related markets can vary with commodity prices, offshore activity and customer capital spending. The defense business can provide exposure to programs tied to long-term operational requirements, potentially complementing demand across Oceaneering’s offshore energy businesses. While contract awards do not eliminate business volatility, they can add another source of demand.

Specialized Workforce Remains an AssetThe award also places a spotlight on Oceaneering’s specialized workforce. Management noted that the Dry Deck Shelter program operates on tight schedules and requires personnel with a high level of proficiency in mission-critical work. Maintaining such expertise can create an important barrier to entry in technically demanding defense programs. Oceaneering’s ability to retain knowledge from more than two decades of supporting the Navy could help it execute the latest contract efficiently and compete for related assignments.

Management’s comments also indicate that safety and reliability remain central to the company’s role in the program. That focus is particularly relevant for undersea systems supporting special operations, where equipment availability and dependable performance are essential. Sustained execution in these areas can enhance customer confidence and reinforce Oceaneering’s credentials across the broader undersea market.

Execution Will Remain KeyThe $154 million potential value is meaningful, but investors should focus on execution as the program progresses. Since the award includes four option years, actual revenues and profitability will depend on contract performance, customer requirements and the exercise of those options.

Oceaneering’s established relationship with the Navy is a positive factor because the company has a track record on the program. Continued execution could strengthen its position for future opportunities within the undersea enterprise and help extend its role across other specialized defense programs.

The latest award therefore represents more than an incremental contract win. It reinforces Oceaneering’s longstanding relationship with the U.S. Navy, adds potential revenue visibility and highlights the technical capabilities of its ADTech segment. With demand for reliable undersea systems remaining strategically important, the contract could support Oceaneering’s efforts to expand its presence in specialized defense markets while complementing its broader subsea business.

OII's Zacks Rank & Other Key PicksCurrently, OII has a Zacks Rank #2 (Buy).

Investors interested in the energy sector might consider some better-ranked stocks, such as Marathon Petroleum (MPC - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Chevron Corporation (CVX - Free Report) , carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Marathon Petroleum is valued at $123.29 billion. Marathon Petroleum is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. The company benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.

Delek US Holdings is valued at $4.54 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Chevron is valued at $408.37 billion. Chevron is a leading integrated energy company engaged in exploring, producing, refining and marketing oil and natural gas. The company’s diversified operations, strong production base and focus on capital discipline support long-term growth and shareholder returns.

Key Takeaways Magnolia expects $100M in annual WildFire synergies, with one-third realized by year-end 2026.Q4 production is forecast at 159-161 Mboe/d as Magnolia enters its first full pro forma quarter.MGY plans dividends, quarterly share repurchases and excess cash flow toward lower leverage. Magnolia Oil & Gas Corporation (MGY - Free Report) is moving quickly to integrate WildFire Energy while laying out a more ambitious production and capital framework for the newly combined business. The company provided an interim update that highlighted early portfolio actions, stronger-than-expected deleveraging and a larger production base following the acquisition.

WildFire Adds Scale and Operating EfficiencyMagnolia said the WildFire transaction is progressing smoothly and should strengthen its position across the Eagle Ford and Austin Chalk. The combined portfolio is expected to deliver 4% to 5% annual organic growth in both oil and total production, while keeping drilling and completion (D&C) capital reinvestment well below 55% of adjusted EBITDAX.

Management also expects more than $100 million of annual run-rate synergies from the deal, with at least one-third expected to be realized by year-end 2026. The larger, contiguous South Texas position is expected to improve operating efficiency and free cash flow.

Magnolia has already completed several portfolio actions. It sold non-core properties in Dimmit and Zavala counties for $47.5 million and received 616 net acres in Gonzales County. The added acreage lifted its average operated working interest in the contiguous Karnes position to 98%. The divested properties had about 1.4 thousand barrels of oil equivalent per day (Mboe/d) of next-12-month production, roughly 84% of which was oil.

Balance Sheet Progress Supports Capital ReturnsPer the company’s press release, MGY ended the third quarter with approximately $1.9 billion of net debt. At current strip prices, leverage was below 1.0x net debt to 2027E EBITDA, putting the company more than a year ahead of the deleveraging timetable initially expected when WildFire was announced.

The improved balance sheet gives Magnolia room to pursue shareholder returns while reducing debt. The company plans to maintain a safe and growing dividend, repurchase at least 1% of outstanding shares each quarter and direct excess free cash flow toward a target of 0.5x net debt to EBITDA or lower. During the third quarter, Magnolia repurchased about 2.3 million shares, leaving roughly 267 million shares outstanding at the end of the quarter.

Production and Capital Spending OutlookFor the third quarter of 2026, Magnolia expects production of 116 to 118 Mboe/d, with oil accounting for about 42% of output. D&C capital spending is expected at $155 million to $165 million.

The fourth quarter will be the first full pro forma quarter following the WildFire acquisition. Production is expected at 159 to 161 Mboe/d, with oil comprising 49% to 50% of total volumes. D&C capital spending is forecast at about $235 million. For 2027, Magnolia expects oil and total production to increase 4% to 5% from the second-quarter 2026 pro forma base of roughly 78 Mbod of oil and 158 Mboe/d of total production. D&C capital spending is projected at $900 million to $950 million, including a modest allowance for oilfield service inflation.

The company also issued detailed fourth-quarter guidance. Lease operating expense is expected at $5.80 to $6.20 per barrel of oil equivalent (BOE), while gathering, processing and transportation costs are projected at $1.80 to $2.10 per Boe. Depreciation, depletion and amortization is guided at $14 to $15 per BOE. Production and ad valorem taxes are expected at 5.5% to 6.5%, interest expense at $35 million to $40 million and the effective tax rate at approximately 21%. Cash taxes are projected at 0% to 2%, and pre-hedge oil realization to MEH is expected at negative $2 per barrel. Magnolia also allows for opportunistic short-term hedging based on oil-price volatility.

Hedging and Free Cash Flow ProtectionMagnolia strengthened oil-price protection by adding costless collars to hedges inherited through the WildFire acquisition. More than half of oil production is now hedged through the second quarter of 2027, supporting debt reduction while retaining upside exposure to higher prices.

The newly added collars cover 3.68 million barrels in fourth-quarter 2026 at a weighted average floor of $73.75 per barrel and ceiling of $90.97. For the first and second quarters of 2027, the added volumes total 2.7 million and 2.275 million barrels, respectively, with floors of $70.83 and $70 and ceilings of $88.68 and $82.31. Another 920,000 barrels are hedged for the third quarter of 2027 with a $70 floor and $80.08 ceiling. Magnolia also retains inherited WildFire swaps with weighted average prices ranging from $63.46 to $67.37 per barrel across the first three quarters of 2027.

Investment TakeawayMagnolia enters the post-WildFire period with a larger asset base, clearer production visibility and a stronger balance sheet. The company is pairing 4% to 5% expected annual production growth with disciplined capital spending, meaningful cost synergies and a stated commitment to dividends and share repurchases.

The key issue for investors will be execution. Magnolia must integrate WildFire while delivering the projected synergies, sustaining production growth and continuing to lower leverage. The larger resource base, improving free cash flow and hedging provide a solid framework, but capital discipline and execution remain important as the acquisition flows into results.

MGY's Zacks Rank & Key PicksCurrently, MGY has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might consider some better-ranked stocks, such as Marathon Petroleum (MPC - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International (OII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.

Marathon Petroleum is valued at $123.29 billion. Marathon Petroleum is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. The company benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.

Delek US Holdings is valued at $4.54 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Oceaneering International is valued at $4.41 billion. It is a global technology and engineering company. Oceaneering International provides subsea robotics, offshore services, engineered products and advanced solutions to the energy, defense, aerospace and other industries.  

Joby Aviation sits a few cents above its 52-week low while the business quietly beats revenue estimates and a White House-backed pilot program reshapes the demand picture. The catch hiding inside that 91% upside could determine whether early buyers are…

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Our 24/7 Wall St. price target for Joby Aviation (NYSE:JOBY | JOBY Price Prediction) is $11.38 over the next 12 months. The current price is $5.96.

Metric Value Current Price $5.96 Price Target from 24/7 Wall St. $11.38 Upside/Downside 91.02% Recommendation BUY Confidence Level 50% Joby earns a buy rating from our model with moderate confidence. The key risk is cash, as Joby spends hundreds of millions every half year while waiting FAA type certification. The upside depends on reaching milestones before needing another capital raise.

Joby Shares Have Lost More Than Half Their Value in 2026 Joby fell 5.87% over the past week and 11.36% over the past month. It is down 55.08% year to date. The stock sits just above its 52-week low of $5.93 and far below its high of $19.98.

The business is outpacing the stock, with Q2 revenue of $38.64M beat the $30.38M estimate. Blade drove the beat, with seats flown up 50%+. GAAP EPS of -$0.25 missed expectations of -$0.2345. Full-year revenue guidance was raised to $115M-$125M, and the company aims to carry first passengers in 2026.

Why Bulls See $14.56 Within Reach The bull scenario reaches $14.56 within a year. The main driver is eIPP, the White House-backed eVTOL pilot program. The CFO said it allows Joby “monetize every single aircraft that comes off our production for the foreseeable future.” Certification is progressing:

Stage 3 plans are 83% complete on Joby’s side. The first FAA-conforming aircraft is flying. 12 more aircraft are in production. Toyota (NYSE:TM) plans a $250 million direct investment, expected to close later this year or early next. A planned launch in Dubai brings an international catalyst. Joby carries one Strong Buy and two Buy ratings.

Cash Burn and Dilution Could Cap Gains The bear case of $8.52 still sits above today’s price. Joby used $365 million in H1 and guided to $385 to $415 million for H2. Share count rose from 894.6 million at end-2025 to 969.9 million by June. Stage 4 testing is 20% complete on Joby’s side and 10% on the FAA’s.

Joby ended Q2 with $2.3 billion in cash and short-term investments. Non-cash revaluations distort GAAP losses, including a $106M gain in Q1. Much spending goes to the Ohio plant and production increase.

Joby Commands a Premium to Archer but Trails Textron Archer Aviation (NYSE:ACHR) is Joby’s main eVTOL rival under eIPP. Archer posted $5 million in Q2 revenue and $1.56 billion in liquidity. Joby’s larger revenue and cash buffer support its premium valuation.

Textron (NYSE:TXT) shows what a profitable aircraft manufacturer is worth. Textron guides to adjusted EPS of $6.40 to $6.60 for 2026. Joby’s valuation already prices in years of future scale.

Company Market Cap Q2 2026 Revenue Joby $5.94B $38.64M Archer $3.73B $5M Textron $13.27B $3.827B Milestones Make the 91% Upside Credible My 24/7 Wall St. price target is $11.38, with a buy rating at 50% confidence. Joby has enough cash to reach its next milestones. Watch for eIPP flights in Texas advancing to carrying passengers and Toyota’s investment closing on time.

Risks to monitor include a Stage 4 stall or another dilutive raise before certification. At this price, the model’s bear case of $8.52 still sits above the current share price.

These are the year-end values from our base-case model.

Year Price Target from 24/7 Wall St. 2026 $6.63 2027 $12.80 2028 $18.21 2029 $24.38 2030 $32.47 These projections assume Joby continues executing its current strategy. Delays in certification or more dilution could drove results well below these levels.

Contact [email protected] for any questions or corrections.

Vaxcyte, Inc. (NASDAQ:PCVX – Get Free Report) saw unusually large options trading activity on Monday. Investors bought 2,615 call options on the stock. This represents an increase of approximately 17% compared to the average volume of 2,238 call options.

Key Vaxcyte News Here are the key news stories impacting Vaxcyte this week:

Positive Sentiment: VAX-31 met all prespecified primary endpoints across the adult age groups studied, compared with Prevnar 20 (PCV20) and/or Capvaxive (PCV21). The result removes a major clinical-development hurdle for Vaxcyte’s lead vaccine candidate. Vaxcyte Reports Positive Topline Data from OPUS-1 Positive Sentiment: The vaccine demonstrated broad serotype coverage and strong immune responses, supporting Vaxcyte’s positioning of VAX-31 as a potentially differentiated competitor in the adult pneumococcal vaccine market. Broader Coverage and Strong Immune Responses Highlight Vaxcyte’s Phase 3 Vaccine Readout Positive Sentiment: Multiple reports characterized the primary-endpoint results as successful, triggering a significant investor response and improving the outlook for regulatory submissions and eventual commercialization. Vaxcyte Says Pneumococcal Vaccine Phase 3 Trial Meets Primary Endpoints Neutral Sentiment: The company scheduled a webcast and conference call to review the OPUS-1 topline data, with additional details on safety, tolerability and immunogenicity likely to be important for assessing the results. Vaxcyte to Host Webcast and Conference Call to Present OPUS-1 Data Neutral Sentiment: The announcement contains topline results rather than a complete clinical dataset. Investors will still monitor detailed safety findings, regulatory discussions, filing timelines and the competitive response from marketed pneumococcal vaccines. Wall Street Analysts Forecast Growth A number of research firms have recently commented on PCVX. Guggenheim lifted their price target on shares of Vaxcyte from $116.00 to $125.00 and gave the company a “buy” rating in a research report on Monday. Zacks Research raised shares of Vaxcyte from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 12th. Wall Street Zen upgraded shares of Vaxcyte from a “strong sell” rating to a “sell” rating in a report on Saturday, August 8th. Bank of America lowered their price target on Vaxcyte from $133.00 to $130.00 and set a “buy” rating on the stock in a research report on Monday, September 28th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Vaxcyte in a research note on Friday. Six analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $106.20.

Get Our Latest Analysis on PCVX Insider Buying and Selling at Vaxcyte In other Vaxcyte news, CEO Grant Pickering sold 16,198 shares of the firm’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $55.63, for a total transaction of $901,094.74. Following the transaction, the chief executive officer directly owned 453,247 shares in the company, valued at $25,214,130.61. This trade represents a 3.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Guggenhime sold 10,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $53.89, for a total value of $538,900.00. Following the transaction, the chief financial officer directly owned 105,176 shares in the company, valued at approximately $5,667,934.64. This represents a 8.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 55,890 shares of company stock worth $3,111,189 over the last quarter. Company insiders own 3.30% of the company’s stock.

Institutional Investors Weigh In On Vaxcyte A number of institutional investors have recently added to or reduced their stakes in the stock. First Light Asset Management LLC lifted its position in shares of Vaxcyte by 143.4% during the 2nd quarter. First Light Asset Management LLC now owns 345,157 shares of the company’s stock worth $20,064,000 after buying an additional 203,373 shares during the period. Engineers Gate Manager LP acquired a new position in shares of Vaxcyte during the second quarter worth approximately $1,906,000. IFP Advisors Inc increased its stake in shares of Vaxcyte by 72.8% in the 2nd quarter. IFP Advisors Inc now owns 560 shares of the company’s stock valued at $33,000 after buying an additional 236 shares during the period. Arizona State Retirement System increased its position in Vaxcyte by 4.3% in the second quarter. Arizona State Retirement System now owns 33,755 shares of the company’s stock worth $1,962,000 after purchasing an additional 1,394 shares during the period. Finally, Nykredit A S bought a new stake in shares of Vaxcyte during the second quarter worth approximately $280,000. 96.78% of the stock is owned by institutional investors and hedge funds.

Vaxcyte Price Performance Shares of NASDAQ PCVX traded up $19.97 during trading hours on Monday, reaching $76.45. The stock had a trading volume of 6,647,013 shares, compared to its average volume of 1,407,190. The company has a market cap of $11.38 billion, a price-to-earnings ratio of -9.94 and a beta of 1.23. Vaxcyte has a twelve month low of $39.87 and a twelve month high of $90.75. The business’s fifty day moving average is $58.67 and its two-hundred day moving average is $56.18.

Vaxcyte (NASDAQ:PCVX – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($1.97) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.06) by $0.09. During the same quarter in the prior year, the business posted ($1.22) earnings per share. Sell-side analysts forecast that Vaxcyte will post -7.6 earnings per share for the current fiscal year.

About Vaxcyte (Get Free Report)

Vaxcyte, Inc (NASDAQ: PCVX) is a clinical-stage biotechnology company focused on developing vaccines to help prevent serious bacterial infections. The company uses its cell-free protein synthesis and advanced conjugation technologies to design vaccines intended to provide broad and durable protection while addressing limitations of existing vaccine products.

Vaxcyte’s lead programs are pneumococcal conjugate vaccine candidates, including VAX-24 and VAX-31, which are designed to target a broad range of pneumococcal serotypes.

Further Reading Five stocks we like better than Vaxcyte 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves 3 Small-Cap Stocks With Catalysts That Could Put Them in the Spotlight Follow the Money: 5 AI Stocks Buying Back Shares by the Billions First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets Receive News & Ratings for Vaxcyte Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vaxcyte and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways RL's women's apparel, outerwear and handbags grew more than 20% in fiscal first-quarter 2027.RL's outerwear growth was supported by lightweight styles, fleece programs and bold Polo graphics.RL sees further potential as these categories remain early in development across markets including China. Ralph Lauren Corporation (RL - Free Report) is seeing strong momentum in its high-potential categories, particularly women's apparel, outerwear and handbags. Together, these categories grew more than 20% in the first quarter of fiscal 2027, significantly ahead of the company's 13% overall revenue growth. Within outerwear, lightweight styles such as the city jacket and oversized windbreaker, along with fleece programs and bold Polo graphics, are supporting seasonal newness and consumer engagement. Meanwhile, handbag initiatives continue to emphasize the foundational Polo Play and Polo ID collections, complemented by pebbled leathers, denim, beading and seasonal raffia offerings.

The company believes these categories have substantial potential for further development, stating that Ralph Lauren is still at the beginning of its journey across women's apparel, outerwear and handbags. Management noted that the market shares achieved across these three businesses represent only the start of the opportunity, while Ralph Lauren's broad lifestyle portfolio enables it to operate across categories and price points.

The opportunity is also visible geographically. In China, management highlighted disproportionate performance from the women's and handbag businesses and said that the potential in these categories extends globally, including the Chinese market. China sales increased more than 40% in the first quarter of fiscal 2027, although management expects growth of around mid-teens for the full fiscal year as the company faces tougher comparisons in the second half.

Overall, Ralph Lauren's outerwear and handbags are emerging as important growth accelerators within its strategy to drive the core and expand into additional opportunities. These accelerators increased more than 20% in the quarter, combined with management's view that the company remains at an early stage in these categories, points to continued potential for these businesses as Ralph Lauren develops its broader lifestyle portfolio.

The Zacks Rundown for RLThis Zacks Rank #3 (Hold) company’s shares have gained 1.3% in the past six months against the industry’s 3.6% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, RL trades at a forward price-to-earnings ratio of 18.34 compared with the industry’s average of 14.62.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RL’s current and next fiscal-year earnings implies a rise of 13.3% and 10.6%, respectively, from the year-ago figures.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Vince Holding Corp. (VNCE - Free Report) provides luxury apparel and accessories in the United States and internationally. It operates through Vince Wholesale and Vince Direct-to-Consumer segments. At present, the company carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 12.7% and 172.7%, respectively, from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4%, on average.

Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the Wrangler, Lee and Helly Hansen brands. At present, KTB carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for KTB’s current fiscal-year sales and earnings implies a decline of 14.3% and 6.1%, respectively, from the year-ago figures. KTB delivered a trailing four-quarter earnings surprise of 21.4%, on average.

Savers Value Village, Inc. (SVV - Free Report) , a thrift operator, sells second-hand merchandise in retail stores in the United States, Canada and Australia. SVV currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for SVV’s current financial-year sales and earnings is expected to rise 6.1% and 6.7%, respectively, from the corresponding year-ago reported figures. SVV delivered a trailing four-quarter negative earnings surprise of 1.6%, on average.

Key Takeaways Doximity's clinical AI use is surging, with active workflow prescribers up more than 30% year over year.DOCS' AI expansion is opening new budgets, while its SMB pharma agency-partnership team grew over 100%.Doximity's AI spending cut adjusted gross margin to 88% from 91%, adding near-term profitability pressure. Doximity (DOCS - Free Report) is entering a pivotal phase as it accelerates investments in artificial intelligence (AI) to expand beyond its core physician engagement platform. While robust physician adoption, growing enterprise AI deployments and exceptional cash generation strengthen its long-term outlook, a sluggish pharma advertising market, rising AI investments and commercialization risks could temper near-term financial performance.

Shares of this Zacks Rank #3 (Hold) company have lost 35.9% so far this year against the industry's 18.2% growth and the S&P 500 Index’s 12.4% rise.

Doximity, with a market capitalization of $4.98 billion, is a global specialty medical device company.

Image Source: Zacks Investment Research

DOCS’ bottom line is estimated to improve 1.7% over the next five years. Its earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 3.13%.

What's Driving DOCS’ Performance?Clinical AI Adoption is Scaling Rapidly Across Physicians: Doximity is seeing substantial usage momentum across its clinical AI platform. Quarterly active workflow prescribers increased more than 30% year over year, with nearly half using Doximity’s AI tools in the first quarter. AI prompt volume increased more than 25% sequentially, while AI Scribe users grew approximately 10-fold in July from the prior-year period. This engagement is important because AI-search monetization depends on physician adoption and usage. Doximity also reported 165 signed health-system AI clients, including major institutions such as Northwestern, Penn Medicine and the University of Michigan. Rising usage strengthens the platform’s data, engagement and monetization potential.

Strong Clinical-AI Accuracy Could Strengthen Enterprise Adoption: Doximity’s positioning in clinical AI received an important validation from the independent NOHARM study, which evaluated 24 clinical AI models across 1,100 real-world patient cases. Doximity Ask recorded a 4.8% error rate versus 13.6% for Anthropic’s best-performing model cited by management, while also receiving the highest safety ratings among U.S. models. Doximity attributes the performance partly to its expert-verified drug reference and more than 12,000 physician PeerCheck editors. This differentiation matters commercially because hospitals are increasingly evaluating AI through privacy, safety and governance frameworks, potentially favoring vendors with stronger clinical controls and enterprise relationships.

AI is Expanding Doximity’s Addressable Customer Budgets: AI is allowing Doximity to participate in spending categories beyond traditional digital pharmaceutical marketing. Management said the company is increasingly engaging with AI innovation, insights and analytics and search budgets, creating multiple potential sources of incremental demand. This diversification is particularly relevant because the traditional pharma spending environment remains tight, although management described it as more stable. AI search is also creating higher-level discussions with pharmaceutical executives and generating opportunities to sell additional Doximity products. Meanwhile, the SMB pharma segment is expanding rapidly, with one agency-partnership team growing more than 100% in the quarter.

What’s Weighing on DOCS Stock?Overall Revenue Growth Remains Relatively Modest: Despite strong AI engagement, Doximity’s first-quarter revenue increased only 7% year over year to $157 million, while fiscal 2027 guidance implies approximately 5% growth at the midpoint. Management characterized the underlying HCP market as growing in the mid-single digits, meaning the current outlook does not yet reflect substantial market share acceleration from AI monetization. Management also acknowledged that this year’s growth rate could be more of a timing-related “blip” because much of fiscal 2027 revenue was determined before AI monetization entered the upfront cycle. Therefore, investors still need evidence that AI can materially lift consolidated growth rather than simply offset slower legacy-platform expansion.

AI Investment is Pressuring Gross Margins: Doximity’s accelerated AI adoption is creating a near-term profitability trade-off. Adjusted gross margin declined to 88% in the first quarter from 91% a year earlier as the company increased AI-compute spending to support higher-than-expected usage. Management expects elevated AI investment throughout fiscal 2027, with gross margins projected to remain in the mid-to-high 80% range. Adjusted EBITDA margin is expected at approximately 47% for the full year, below the 48% achieved in the first quarter. Although management believes AI economics will improve as models become more efficient, the timing of revenue monetization versus infrastructure costs creates near-term margin pressure.

Pharma Customers Continue to Face Tight Budgets: Doximity remains exposed to a constrained pharmaceutical advertising environment despite signs of stabilization. Management described the overall buying environment as “still tight, but certainly more stable,” while noting that some customers only committed to shorter-term purchases during the previous upfront cycle. First quarter benefited partly from additional spending by several customers, including a large top-20 pharma account that had reduced spending previously. This indicates that some of the improvement may reflect normalization rather than a broad-based acceleration in pharmaceutical budgets. If pharma companies remain cautious with marketing expenditures, Doximity could face pressure converting its growing AI engagement and customer pipeline into sustained high-single-digit or double-digit revenue growth.

Estimate TrendThe Zacks Consensus Estimate for fiscal 2027 revenues is pegged at $675.7 million, implying growth of 4.8% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $1.33, indicating a decline of 12.5% from the previous year’s recorded level.

In the past 60 days, DOCS’ earnings estimate for fiscal 2027 has declined 9 cents.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and KORU Medical Systems (KRMD - Free Report) .

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

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

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

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

KORU Medical Systems, currently carrying a Zacks Rank of 2, reported a second-quarter 2026 adjusted EPS of 1 cent, which surpassed the Zacks Consensus Estimate by 150%. Revenues of $12 million beat the Zacks Consensus Estimate by 2.78%.

KRMD has an estimated earnings growth rate of 66.7% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 58.33%.

Key Takeaways TEM is expanding its cardiovascular portfolio with next-generation AI products for cardiac risk detection. TEM's ECG-MR uses standard 12-lead ECGs to flag signs tied to moderate or severe mitral regurgitation. TEM's ECG-PH analyzes 12-lead ECG data for pulmonary hypertension signs and provides a binary output. Recent advancements in Artificial Intelligence (AI) have revolutionized the application of electrocardiography (ECG) in cardiovascular diagnostics. The AI-ECG analysis market size is expected to grow from $2.01 billion in 2025 to $2.40 billion in 2026 at a compound annual growth rate (CAGR) of 19.3% (per the Business Research report).

Against this backdrop, Tempus AI (TEM - Free Report) is expanding its cardiovascular portfolio with a suite of next-generation AI products designed to identify patients at risk for complex cardiac conditions.

Tempus received 510(k) clearance from the Food and Drug Administration (FDA) for its Tempus ECG-MR, an AI product that analyzes standard 12-lead resting electrocardiograms (ECGs) to detect signs associated with undiagnosed moderate or severe mitral regurgitation (MR). 

Additionally, Tempus AI received 510(k) clearance from the FDA for Tempus ECG-PH (pulmonary hypertension), an AI-enabled software device that analyzes standard 12-lead ECGs for signs associated with pulmonary hypertension. Tempus ECG-PH only analyzes ECG data and provides a binary output for interpretation.

Peer UpdateGE HealthCare’s (GEHC - Free Report) new Advanced Imaging Solutions (AIS) segment combines the former Imaging and AVS businesses, linking CT, MR, molecular imaging, interventional systems, ultrasound, software and services under one operating structure. In second-quarter 2026, AIS generated $3.77 billion in revenues, up 5.0% organically, while segment EBIT margin rose 90 basis points to 13.9%. GEHC expects higher-margin AI-enabled new products in MR and CT, together with deeper clinical and commercial alignment, to support growth as the innovation cycle progresses.

iRhythm Holdings’ (IRTC - Free Report) platform is supported by more than 3 billion hours of curated ECG data, more than 12 million patient reports and an expanding clinical evidence base. During the second quarter of 2026, iRhythm expanded work with Desert Oasis Healthcare and signed two commercial agreements through Luum that combine predictive workflows with monitoring. Early pilot programs have shown more than 85% accuracy in identifying patients with clinically relevant arrhythmias before diagnosis. The productivity case also advanced after FDA clearance of iRhythm’s third-generation algorithm. 

TEM’s Stock Price PerformanceIn the past year, Tempus’ shares have declined 17.7% compared with the industry’s 10.4% decline. 

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Expensive ValuationTEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.30X compared with the industry average of 4.82X.

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TEM Stock Estimate TrendIn the past 30 days, Tempus’ loss per share estimate for 2026 has moved north. 

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

Redwire RDW shares climbed about 1% in morning trading Wednesday after Axiom Space awarded the company another contract tied to construction of the planned Axiom Station.

The latest order covers development and delivery of two Roll-Out Solar Array, or ROSA, wings for the station's second module. The solar systems are designed to provide power for the orbital platform.

Redwire is also supplying ROSA wings for Axiom Station's first module, which is scheduled to launch in 2028 after assembly, integration and testing are completed. The second module is moving toward its own final assembly process.

Axiom Space expects the second module to reach orbit less than a year after the first. Once both modules are in place, they are expected to operate as a free-flying station capable of supporting a crew of four.

The contract extends Redwire's involvement in the project beyond the initial module, giving the space infrastructure company a role in power systems for multiple stages of the planned station buildout. The work also links its space hardware business to Axiom's phased station development schedule.

Key Takeaways Summit will test ivonescimab with Datroway across multiple solid tumors, starting with first-line TNBC.SMMT is advancing ivonescimab across phase III studies in lung and colorectal cancers.AstraZeneca or Daiichi will sponsor the studies, while the companies share costs and retain their rights. Summit Therapeutics (SMMT - Free Report) is expanding the development of its sole investigational drug, ivonescimab, through a new clinical collaboration with AstraZeneca (AZN - Free Report) and its Japan-based partner Daiichi Sankyo.

Under the agreement, ivonescimab will be evaluated in combination with AZN/ Daiichi’s blockbuster antibody-drug conjugate (ADC), Datroway (datopotamab deruxtecan) across multiple solid tumors, including breast and lung cancers.

The collaboration is expected to initially focus on a phase III study in first-line triple-negative breast cancer (TNBC), expanding ivonescimab's development into a new tumor type. Per the agreement, each company will provide its respective drug, while AstraZeneca or Daiichi will sponsor the planned studies. The companies will share study costs while retaining the development and commercial rights to their own therapies.

The latest Datroway collaboration builds on the larger deal between AstraZeneca and Summit announced in the last week. Under the agreement, AstraZeneca agreed to invest $2 billion in the company to accelerate development of ivonescimab. The companies will evaluate ivonescimab with AstraZeneca’s investigational Claudin-18.2-targeted ADC, sonesitatug vedotin (Sone-Ve), in gastrointestinal cancers, along with other AstraZeneca cancer medicines and ADCs.

Year to date, shares of SMMT have declined 4.2% compared with the industry’s 5.4% fall.

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Year to date, AZN’s shares have lost 13.8% against the industry’s 5% growth.

Image Source: Zacks Investment Research

Ivonescimab-Combination Strategy Boosts SMMT’s Growth PotentialSummit is building a broad development strategy around ivonescimab. It is an investigational PD-1/VEGF bispecific antibody designed to block PD-1, which helps activate the immune system against cancer, while also blocking VEGF, a protein involved in tumor blood-vessel growth. This dual mechanism is intended to provide both immune-system activation and anti-angiogenic activity in a single drug. Summit’s Chinese partner, Akeso, originally developed the drug, with Summit holding exclusive development and commercialization rights across major markets outside China.

An FDA filing is under review seeking approval for ivonescimab plus chemotherapy in patients with EGFR-mutated, locally advanced or metastatic non-squamous NSCLC who had progressed following EGFR-TKI treatment. A final decision is expected by Nov. 14, 2026. Akeso retains the rights to market the drug in China, where it is currently approved to treat multiple non-small cell lung cancer (NSCLC) indications.

Summit is pursuing a broad global development program for ivonescimab. It is advancing the drug across multiple phase III studies — HARMONi-3 in first-line metastatic NSCLC, HARMONi-7 in first-line metastatic PD-L1 high (≥50%) NSCLC and HARMONi-GI3 in first-line metastatic colorectal cancer. Recently, the company initiated the phase II/III HARMONi-GU1 study, evaluating ivonescimab plus Pfizer’s (PFE - Free Report) /Astellas’ Padcev as first-line treatment for advanced urothelial or bladder cancer.

Meanwhile, Datroway is a TROP2-targeted ADC jointly developed and commercialized by Daiichi and AstraZeneca under their global collaboration, which began in 2020. It delivers a cancer-killing payload directly to tumor cells expressing TROP2 protein. Datroway is already approved in multiple countries for certain patients with TNBC, HR-positive/HER2-negative breast cancer and EGFR-mutated NSCLC. The drug has a broad clinical development program with more than 20 studies across lung, breast and urothelial cancers.

The partnership with AstraZeneca and Daiichi could expand Summit's reach and create additional clinical and commercial ooportunities for ivonescimab.

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

Ambev S.A. (NYSE:ABEV – Get Free Report) saw unusually large options trading on Monday. Stock investors bought 2,166 call options on the stock. This is an increase of approximately 814% compared to the average daily volume of 237 call options.

Insider Buying and Selling at Ambev In related news, Director Manuel Moreira sold 468,040 shares of the company’s stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $3.08, for a total value of $1,441,563.20. Following the transaction, the director directly owned 3,000,000 shares in the company, valued at approximately $9,240,000. This represents a 13.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

Institutional Inflows and Outflows Large investors have recently modified their holdings of the stock. DJE Kapital AG bought a new position in Ambev during the 1st quarter worth approximately $14,778,000. First Eagle Investment Management LLC increased its stake in Ambev by 0.7% in the 2nd quarter. First Eagle Investment Management LLC now owns 349,323,217 shares of the company’s stock worth $1,096,875,000 after purchasing an additional 2,338,660 shares during the period. Renaissance Technologies LLC lifted its position in Ambev by 6.5% in the first quarter. Renaissance Technologies LLC now owns 27,354,300 shares of the company’s stock valued at $79,875,000 after purchasing an additional 1,674,900 shares during the last quarter. Engineers Gate Manager LP lifted its position in Ambev by 712.8% in the second quarter. Engineers Gate Manager LP now owns 1,837,660 shares of the company’s stock valued at $5,770,000 after purchasing an additional 1,611,577 shares during the last quarter. Finally, Cook & Bynum Capital Management LLC purchased a new stake in shares of Ambev during the second quarter valued at approximately $4,251,588. Hedge funds and other institutional investors own 8.13% of the company’s stock.

Analyst Ratings Changes A number of research firms have commented on ABEV. UBS Group set a $2.85 price target on shares of Ambev in a research note on Tuesday, August 11th. Wall Street Zen cut shares of Ambev from a “buy” rating to a “hold” rating in a research report on Saturday, August 22nd. Scotiabank downgraded shares of Ambev from a “sector outperform” rating to a “sector perform” rating in a report on Wednesday, July 15th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Ambev in a research report on Monday, August 3rd. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $3.08. Get Our Latest Analysis on ABEV

Ambev Price Performance Shares of ABEV stock traded up $0.30 during trading hours on Monday, hitting $3.29. 14,140,781 shares of the company’s stock were exchanged, compared to its average volume of 26,286,082. The company has a market capitalization of $51.93 billion, a PE ratio of 16.47, a PEG ratio of 2.18 and a beta of 0.58. The company has a current ratio of 1.02, a quick ratio of 0.76 and a debt-to-equity ratio of 0.02. Ambev has a 12-month low of $2.10 and a 12-month high of $3.45. The business’s 50 day simple moving average is $2.95 and its 200-day simple moving average is $3.04.

Ambev (NYSE:ABEV – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.04. Ambev had a net margin of 18.47% and a return on equity of 17.48%. The company had revenue of $3.89 billion during the quarter, compared to analysts’ expectations of $4.05 billion. On average, equities research analysts anticipate that Ambev will post 0.2 earnings per share for the current year.

Ambev Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Monday, January 11th. Shareholders of record on Wednesday, September 23rd will be given a dividend of $0.0092 per share. This represents a $0.04 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 23rd. Ambev’s dividend payout ratio is presently 15.00%.

Ambev Company Profile (Get Free Report)

Ambev SA is a Brazilian beverage company and one of the largest brewers in Latin America. The company produces, distributes and sells beer, carbonated soft drinks, nonalcoholic beverages and other drink products through a portfolio that includes brands such as Brahma, Skol, Antarctica, Bohemia, Budweiser, Stella Artois and Guaraná Antarctica.

Founded in 1999 through the merger of Companhia Antarctica Paulista and Companhia Cervejaria Brahma, Ambev became part of Anheuser-Busch InBev following the latter’s combination with Anheuser-Busch in 2008.

Further Reading Five stocks we like better than Ambev 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves 3 Small-Cap Stocks With Catalysts That Could Put Them in the Spotlight Follow the Money: 5 AI Stocks Buying Back Shares by the Billions First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets Receive News & Ratings for Ambev Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ambev and related companies with MarketBeat.com's FREE daily email newsletter.

PagSeguro Digital Ltd. (NYSE:PAGS – Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors purchased 5,014 call options on the stock. This is an increase of approximately 280% compared to the typical daily volume of 1,321 call options.

Insider Activity In other news, insider Silva Dutra sold 25,000 shares of the firm’s stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $9.24, for a total value of $231,000.00. Following the completion of the transaction, the insider owned 25,000 shares of the company’s stock, valued at approximately $231,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Institutional Trading of PagSeguro Digital Institutional investors have recently modified their holdings of the stock. DGS Capital Management LLC increased its position in shares of PagSeguro Digital by 8.7% during the fourth quarter. DGS Capital Management LLC now owns 15,814 shares of the company’s stock worth $152,000 after purchasing an additional 1,271 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its position in shares of PagSeguro Digital by 77.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,185 shares of the company’s stock valued at $40,000 after purchasing an additional 1,821 shares during the period. First Trust Advisors LP boosted its position in shares of PagSeguro Digital by 10.9% in the 1st quarter. First Trust Advisors LP now owns 18,678 shares of the company’s stock valued at $187,000 after purchasing an additional 1,835 shares during the period. Royal Bank of Canada grew its stake in PagSeguro Digital by 3.7% during the 1st quarter. Royal Bank of Canada now owns 56,092 shares of the company’s stock worth $562,000 after buying an additional 1,998 shares during the last quarter. Finally, Amundi grew its stake in PagSeguro Digital by 6.0% during the 1st quarter. Amundi now owns 54,586 shares of the company’s stock worth $547,000 after buying an additional 3,067 shares during the last quarter. Hedge funds and other institutional investors own 45.88% of the company’s stock.

Analyst Ratings Changes PAGS has been the topic of several recent research reports. Jefferies Financial Group began coverage on shares of PagSeguro Digital in a research note on Thursday, July 23rd. They set a “hold” rating and a $10.40 target price on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of PagSeguro Digital in a research report on Friday, September 18th. UBS Group dropped their price target on shares of PagSeguro Digital from $12.50 to $11.00 and set a “buy” rating for the company in a research note on Tuesday, September 29th. Finally, Bank of America lowered PagSeguro Digital from a “buy” rating to a “neutral” rating and set a $10.00 price objective on the stock. in a research report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PagSeguro Digital has a consensus rating of “Hold” and an average target price of $10.73. Read Our Latest Stock Report on PagSeguro Digital

PagSeguro Digital Stock Performance NYSE PAGS traded up $2.08 during trading on Monday, reaching $11.10. 7,398,305 shares of the company’s stock were exchanged, compared to its average volume of 3,545,548. The company has a 50 day moving average price of $9.24 and a two-hundred day moving average price of $9.46. The stock has a market cap of $3.10 billion, a P/E ratio of 7.77, a price-to-earnings-growth ratio of 0.36 and a beta of 1.27. PagSeguro Digital has a 1 year low of $8.42 and a 1 year high of $12.32.

PagSeguro Digital (NYSE:PAGS – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.41 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.02. The business had revenue of $942.97 million for the quarter, compared to the consensus estimate of $1 billion. PagSeguro Digital had a return on equity of 16.36% and a net margin of 10.46%. Research analysts forecast that PagSeguro Digital will post 1.65 EPS for the current fiscal year.

PagSeguro Digital Increases Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were paid a $0.28 dividend. This is an increase from PagSeguro Digital’s previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a yield of 10.1%. The ex-dividend date was Wednesday, September 16th. PagSeguro Digital’s payout ratio is currently 78.32%.

PagSeguro Digital Company Profile (Get Free Report)

PagSeguro Digital Ltd. is a Brazilian financial technology company that operates the PagBank ecosystem. The company provides payment acceptance and digital banking services primarily to micro, small and medium-sized businesses, self-employed professionals and individual consumers in Brazil.

Its products and services include point-of-sale payment terminals, online payment processing, digital accounts, payment cards, money transfers, bill payment and other financial services. PagSeguro also offers tools designed to help merchants manage transactions and business finances through digital platforms and mobile applications.

PagSeguro was developed as part of Brazil’s UOL group and became a publicly traded company on the New York Stock Exchange in 2018.

Further Reading Five stocks we like better than PagSeguro Digital 5 Oversold Corners of the Market That Could Bounce If Breadth Finally Improves 3 Small-Cap Stocks With Catalysts That Could Put Them in the Spotlight Follow the Money: 5 AI Stocks Buying Back Shares by the Billions First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets Receive News & Ratings for PagSeguro Digital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PagSeguro Digital and related companies with MarketBeat.com's FREE daily email newsletter.

A power contract that doubles available capacity at a Kentucky AI campus sounds like a win, yet TeraWulf shareholders are selling hard this morning while the rest of the market drifts higher. The reason comes down to a gap between…

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A bigger power contract usually reads as good news for a company selling artificial intelligence (AI) data center capacity, yet TeraWulf (NASDAQ:WULF) is heading the other way after doubling the electric supply at its Muskie campus in Kentucky. TeraWulf stock is down 5% to $14.77 in morning trading, even after Kentucky Power agreed to lift contracted demand at Muskie to 1 gigawatt. The reaction offers a read on how the market is pricing the entire AI hosting group.

Meanwhile, Core Scientific (NASDAQ:CORZ) stock is down 3%, sliding alongside TeraWulf as another former crypto miner that now leases capacity to AI customers. Riot Platforms (NASDAQ:RIOT | RIOT Price Prediction) stock is down 2%, the mildest decline among the three companies making that same pivot.

At the same time, the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR), a gauge of the broader data center trade, is down 0.3%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.2%, which places the selling squarely in this corner of the market. That divergence keeps the focus on former miners now selling power and space to AI developers.

Kentucky Power Doubles Muskie to 1 Gigawatt Kentucky Power and TeraWulf finalized an amended agreement that doubles contracted electric demand at the Muskie data campus in Grayson, Kentucky, to 1 gigawatt. The new terms also pull delivery of the campus’s second phase forward by a year. Paul Prager, TeraWulf’s chairman and chief executive officer, stated that expanding contracted power and bringing the second phase forward positions the company to meet strong customer demand.

TeraWulf’s bull case rests on contracted power being the scarce input in the AI buildout, so doubling it at Muskie directly expands what the company has to sell. Muskie also sits in the same state as TeraWulf’s Justified campus, where the company signed a long-term lease with Anthropic. A Colorado legislative staff report notes that a single operating data center can draw over a gigawatt, and it cites Lawrence Berkeley National Laboratory projections that data centers could account for between 6.7% and 12% of U.S. electricity use by 2028.

Regulatory Approval and Long Timelines Weigh on TeraWulf The complication for TeraWulf is timing. Both changes in the amended agreement depend on approval from the Kentucky Public Service Commission, so the added capacity exists on paper until regulators sign off. TeraWulf had previously targeted initial service at Muskie for the fourth quarter of 2028, which puts the revenue years away while the cost of building toward it arrives much sooner.

Even with the pullback, TeraWulf shares remain up 28% year to date, a gain built on enthusiasm for the company’s AI infrastructure push. That cushion leaves room for profit-taking whenever the payoff from new capacity sits years out. With a beta of 4.25, TeraWulf stock has historically moved far more sharply than the broad market, which magnifies swings in both directions.

Core Scientific and Riot Slide With the Group Core Scientific runs a similar playbook, converting former crypto mining sites into colocation space, meaning powered data center floor rented to AI and cloud customers (we profiled seven of these picks-and-shovels suppliers to the AI buildout, from power to cooling, in a free report you can grab here). The parallel decline in Core Scientific and TeraWulf points to pressure on the cohort as a whole, since both companies sell the same scarce commodity of energized capacity.

Riot has made the same pivot, signing a 20-year data center lease with a leading frontier AI lab while still operating its mining business. With the smallest drop of the three, Riot shows the selling reaching the group with varying force. That pattern, paired with a softer data center fund and a firmer S&P 500 fund, frames the TeraWulf stock decline as part of a sector-wide pullback.

What to Watch Next The next clear marker for TeraWulf is the Kentucky Public Service Commission’s decision on the amended agreement, which would lock in both the doubled capacity and the earlier second phase. Traders can watch for that ruling, along with signs that selling in Core Scientific and Riot is easing. Any construction update from TeraWulf on Muskie’s timeline could also shape how quickly the market credits the added capacity.

TeraWulf stock offers real upside potential if contracted power keeps commanding a premium, but the Muskie expansion still needs a regulator’s approval and is likely years from producing revenue. Investors weighing their exposure should calibrate their holdings carefully given that gap between contract and delivery. For TeraWulf’s shareholders, keeping their stakes moderately sized makes sense until the commission rules and the group selling settles.

Contact [email protected] for any questions or corrections.

PTC (NASDAQ:PTC – Get Free Report) was downgraded by Loop Capital from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, Marketbeat Ratings reports. They currently have a $205.00 price objective on the technology company’s stock, up from their prior price objective of $200.00. Loop Capital’s price objective would indicate a potential upside of 5.70% from the stock’s previous close.

Several other brokerages have also commented on PTC. BNP Paribas Exane started coverage on shares of PTC in a report on Thursday, June 18th. They issued a “neutral” rating and a $130.00 price objective on the stock. Rosenblatt Securities restated a “buy” rating and issued a $190.00 price objective on shares of PTC in a report on Thursday, July 30th. Wall Street Zen lowered shares of PTC from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. BMO Capital Markets upped their price objective on shares of PTC from $155.00 to $164.00 and gave the stock an “outperform” rating in a report on Thursday, July 30th. Finally, Barclays upped their price objective on shares of PTC from $150.00 to $155.00 and gave the stock an “overweight” rating in a report on Thursday, July 30th. Seven equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $172.47.

View Our Latest Analysis on PTC

PTC Trading Up 34.6% PTC stock traded up $49.91 during trading on Monday, reaching $193.94. 8,693,519 shares of the stock were exchanged, compared to its average volume of 1,455,609. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.40. The business has a 50 day moving average price of $142.72 and a 200-day moving average price of $136.94. PTC has a 1 year low of $108.50 and a 1 year high of $206.82. The firm has a market capitalization of $21.04 billion, a price-to-earnings ratio of 18.77, a P/E/G ratio of 1.81 and a beta of 0.99. PTC (NASDAQ:PTC – Get Free Report) last issued its earnings results on Wednesday, July 29th. The technology company reported $1.58 EPS for the quarter, topping analysts’ consensus estimates of $1.57 by $0.01. PTC had a net margin of 41.67% and a return on equity of 25.31%. The company had revenue of $600.05 million for the quarter, compared to the consensus estimate of $611.62 million. During the same period in the previous year, the firm earned $1.64 earnings per share. PTC’s quarterly revenue was down 6.8% compared to the same quarter last year. PTC has set its FY 2026 guidance at 7.870-8.420 EPS and its Q4 2026 guidance at 1.630-2.210 EPS. On average, research analysts predict that PTC will post 6.56 earnings per share for the current year.

Institutional Investors Weigh In On PTC A number of large investors have recently modified their holdings of PTC. Renaissance Technologies LLC lifted its position in PTC by 89.3% during the first quarter. Renaissance Technologies LLC now owns 389,100 shares of the technology company’s stock valued at $55,443,000 after buying an additional 183,600 shares in the last quarter. SCS Capital Management LLC acquired a new position in PTC during the second quarter valued at approximately $37,912,000. Amundi lifted its position in PTC by 151.9% during the first quarter. Amundi now owns 1,725,555 shares of the technology company’s stock valued at $245,885,000 after buying an additional 1,040,656 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in PTC by 104.5% during the second quarter. Assenagon Asset Management S.A. now owns 224,989 shares of the technology company’s stock valued at $25,561,000 after buying an additional 114,961 shares in the last quarter. Finally, Hsbc Holdings PLC lifted its position in PTC by 65.0% during the second quarter. Hsbc Holdings PLC now owns 587,782 shares of the technology company’s stock valued at $66,753,000 after buying an additional 231,563 shares in the last quarter. 95.14% of the stock is owned by hedge funds and other institutional investors.

PTC News Summary Here are the key news stories impacting PTC this week:

Positive Sentiment: Schneider Electric will pay $205 per PTC share in cash, valuing the transaction at approximately $22.6 billion to $23.7 billion and representing about a 42% premium to PTC’s prior closing price. The offer is the primary reason PTC shares have surged toward the proposed deal price. PTC agrees to Schneider Electric buyout at $205 a share Positive Sentiment: The acquisition would combine PTC’s industrial design, product lifecycle management and service-management software with Schneider’s energy-management and automation businesses. Schneider said the deal will create one of the largest industrial-software portfolios and strengthen its position in industrial artificial intelligence. Schneider Electric to Buy Software Maker PTC Neutral Sentiment: For PTC shareholders, the cash offer limits further upside largely to the difference between the market price and $205, while the transaction remains subject to customary closing conditions and regulatory and shareholder approvals. Schneider Electric’s shares fell sharply on concerns about the size and financing of its largest-ever acquisition, highlighting execution and integration risks. Schneider Electric shares plunge after PTC deal Negative Sentiment: Investor-rights law firm Halper Sadeh said it is investigating whether PTC’s board obtained the best price and adequately protected shareholders. Such inquiries could create delays or add uncertainty, although they do not currently change the announced offer terms. Halper Sadeh PTC investigation PTC Company Profile (Get Free Report)

PTC Inc (NASDAQ: PTC) develops software designed to help manufacturers and other industrial companies create, manage, operate and service physical products. Its portfolio supports product lifecycle management, computer-aided design, application lifecycle management, service lifecycle management, industrial Internet of Things applications and augmented reality.

PTC’s primary products include Creo for 3D computer-aided design and engineering, Windchill for product lifecycle management, Codebeamer for application lifecycle management, and Servigistics for service parts and service operations management.

See Also Five stocks we like better than PTC Follow the Money: 5 AI Stocks Buying Back Shares by the Billions First Citizens BancShares vs MP Materials: A Tale of 2 Regulation Bets These 3 Short-Squeeze Candidates Have Catalysts, But Their Risks Are Just as Large 3 High-Yield Dividend Stocks That May Be Safer Than They Seem

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Cerebras Systems Inc. (NASDAQ:CBRS) shares are soaring Monday after a social media post from OpenAI CEO Sam Altman appeared to boost investor sentiment.

Cerebras Systems stock is charging ahead with explosive momentum. Why is CBRS stock up today? Altman Addresses Speculation About OpenAI’s Cerebras PartnershipAltman took to social media to respond to chatter about OpenAI’s ties to Cerebras. He said that “Cerebras is a close partner,” and that the two companies “have a deep engagement pushing on the frontiers of speed.”

The post landed after reports last week that OpenAI’s newly unveiled GPT-6.1 Sol Ultrafast model doesn’t run on Cerebras chips. Those reports had weighed on the stock.

A Bounce After a Rough StretchToday’s gain comes after a rough month for Cerebras. The stock is down roughly 14.6% over that period. That makes the move look more like a positive correction than a fresh breakout. Shares also still sit below the $185 IPO price.

Last Wednesday’s decline came as a new wave of shares hit the market. Cerebras structured its post-IPO lockup as 11 separate releases rather than one 180-day freeze. Three smaller unlocks of 14.6 million shares each began in August. Last week’s release added about 19.4 million shares and was the first of three larger waves.

What Cerebras Brings to the AI MarketBehind those share-supply headlines is a company focused on large-scale AI computing. Cerebras builds very large systems for training and running AI models. The company says it makes the world’s fastest AI infrastructure, including the world’s largest semiconductor and the hardware that powers, cools and feeds data to it.

Cerebras also writes software that ties those systems together into supercomputers. That software is built to work with common machine learning frameworks like PyTorch. Customers rely on the systems to train large models and run inference at speeds the company says rival approaches have trouble matching.

CBRS Shares Are FlyingCBRS Price Action: Cerebras shares were up 9.73% at $182.63 at the time of publication on Monday, according to Benzinga Pro.

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Meta spent years burning billions on a metaverse nobody wanted, but something quiet is happening inside Reality Labs that could force the market to rethink the entire company's valuation.

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Meta Platforms (NASDAQ:META | META Price Prediction) trades at $728.08. Reality Labs lost about $19.2 billion in 2025. Meta is quietly rebuilding that unit around AI glasses, and the shift could change how the market values the whole company.

Meta owns Facebook, Instagram, WhatsApp and Messenger, which reach 3.60 billion daily active people. The stock was trading at $597.37 when Meta reported a second-quarter earnings miss. It then gained 22.9% over the past month before falling 3.14% last week on AI spending concerns.

AI Glasses and a Growing Ad Engine Make the Math Work Ad revenue rose 27% to $59.36 billion. Ad impressions grew 14%, and the average price per ad climbed 12%. Advantage+ hit an annual run rate above $75 billion. Even so, Meta trades at a forward P/E of 22 and a PEG ratio of 0.985.

Reality Labs is changing direction. Its revenue rose 16% to $431 million as AI glasses sales more than made up for lower Quest sales. The unit’s loss narrowed to $4.03 billion in Q1, and Meta cut about 8,000 jobs in May. Excluding legal and severance charges, operating income would have grown 9%.

Capex Could Become Meta’s Next Metaverse Diluted EPS of $6.18 missed the $7.22 estimate by 14.42%. That ended a six-quarter run of beats. Operating margin fell to 31% from 43%. Free cash flow dropped to $784 million from $8.55 billion as capex rose 82%.

Management raised 2026 expense guidance to $165 billion to $169 billion and expects $130 billion to $145 billion in capex. Legal charges reached $2.40 billion in the quarter. Youth-safety cases and EU ad rules add risk. Debt now stands at $83.7 billion.

Reality Labs Is Shrinking, but the AI Bill Keeps Growing Management expects 2026 operating income to top 2025’s, which supports the outlook. The bull case requires proof that the AI build-out will lift free cash flow. Q3 revenue guidance of $61 billion to $64 billion is the first test. Over the next two quarters, investors should track Reality Labs losses and whether cash flow rebuilds.

Meta Lags the S&P 500 but Has Room to Rerate Meta trades at $728.08. The average analyst target is $794.96, which means 9.2% upside. Price targets are estimates and can change. Here is how the 63 covering analysts rate the stock:

Strong Buy: 8 Buy: 47 Hold: 7 Sell: 1 The stock trades at 27 times trailing earnings. It is up 10.57% this year, while the S&P 500 is up 12.86%. Over one year, Meta returned 0.47% and the index returned 14.6%.

Meta’s Outlook Brightens as the Metaverse Drag Fades At $728.08, Meta’s setup rests on a shifting cost base.

Reality Labs was a drag with no clear return. Meta is turning it into an AI glasses business that management calls “one of the fastest growing consumer electronics of all time.” Lower Quest spending could support margins.

The bigger expense, AI infrastructure, already drives revenue. Meta says it is demand constrained and has been offered a significant premium for its compute capacity. WhatsApp-driven other revenue grew 73%.

Watch Q3 margins and the Reality Labs loss figure. Another quarter of shrinking free cash flow without faster growth would break this argument.

Meta is shrinking its largest loss-making unit while the core business grows 28%, and a forward P/E of 22 leaves room for the market to reward the turnaround.

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Jim Cramer says Copilot will push Microsoft to a big move, but the stock already lagged every other megacap over the past year and the upcoming earnings report carries targets that management must hit to prove him right.

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At 9:16 a.m. ET on October 5, 2026, Jim Cramer posted on X: “It’s Co-Pilot’s time! MSFT going higher. Big move coming”. He noted the company is a big CNBC Investing Club stock and his charitable trust owns shares. Shares of Microsoft (NASDAQ:MSFT | MSFT Price Prediction) traded at $526.25 as of 10:59 a.m. ET, up 1.68% on the session.

From October 6, 2025 through October 2, 2026, Microsoft returned -1.28%. It was the only one of six megacaps with a negative return over that period. Shares of Alphabet (NASDAQ:GOOGL) gained 37.5%, Apple (NASDAQ:AAPL) 30.5% and NVIDIA (NASDAQ:NVDA) 26.4%.

What Cramer’s Post Actually Promises The post has no price target, timeframe, or catalyst beyond Copilot. On September 30 Cramer said “Copilot has 30 million users and growing. They’re paying.” On October 1 he added that “Microsoft’s rally is just beginning.”

The company disclosed the seat count itself. On its July 29, 2026 earnings call, management reported over 30 million paid Microsoft 365 Copilot seats. Net seat additions more than doubled quarter over quarter. The seat count is a company figure, while the “big move” is Cramer’s opinion.

What Copilot Is Worth to a $3.91 Trillion Company Microsoft does not report Copilot revenue separately, so its share is unknown. Copilot sits inside Productivity and Business Processes, which brought in $37.85 billion (+14%) in fiscal Q4. Intelligent Cloud grew faster: $39.31 billion (+32%). Quarterly capex rose 109.63% to $35.80 billion, and free cash flow fell 23.19%. Copilot must help recover that spending.

Reasons to Discount the Post Cramer owns the stock and held it through a fall from $553 to $349. The same morning, Barron’s reported an analyst upgraded the stock to Buy, so the post cannot claim sole credit for the gain. Microsoft redesigned Copilot on September 25 to compete with Claude and ChatGPT.

Much of the recovery is already in the price. The stock rose 37.5% in the third quarter and is up 9.51% year to date. It trades at about 29 times trailing earnings and 25 times forward earnings (price divided by the past year’s and next year’s expected profit per share). The consensus price target is $578.82. Analysts are nearly all bullish, with 53 Buy or Strong Buy ratings and 2 Holds.

Will Copilot Close Microsoft’s Megacap Gap? The post itself adds nothing new. The next move depends on the fiscal first-quarter earnings report. Data providers list it for November 4, 2026, but Microsoft has not confirmed that date. Management has already set the targets: Azure growth of approximately 45% in constant currency and Intelligent Cloud revenue of $40.95 to $41.25 billion.

If Azure growth reaches 45%, Copilot seats exceed 30 million, and the stock closes above its 52-week high of $549.20, Cramer was right. If it falls below its 50-day moving average of $487.72, Microsoft’s gap with other megacaps grows.

Contact [email protected] for any questions or corrections.

Key Takeaways NIKE expects Pace to deliver about $2.5B in cumulative savings through fiscal 2031.NKE is cutting less productive spending while increasing investments in demand creation.NIKE expects fiscal 2027 revenues to fall in high single digits as it adjusts key businesses. NIKE, Inc. (NKE - Free Report) is focused on streamlining its cost structure while safeguarding investments in product innovation, marketing and brand development to boost sales and strengthen market position. The company’s newly announced Pace program is central to this strategy.

NIKE expects the Pace initiative to generate approximately $2.5 billion in cumulative savings through fiscal 2031, primarily by streamlining its organization, modernizing the supply chain, simplifying decision-making and improving productivity. The program is expected to incur about $1 billion in pre-tax charges, in addition to roughly $300 million of severance costs recorded in fiscal 2026.

Simultaneously, NIKE continues to prioritize growth-oriented investments rather than broadly cutting spending. During the first quarter of fiscal 2027, selling and administrative expenses declined 3% year over year, while demand-creation spending increased 5%, reflecting higher investments around major sporting events. This indicates that NIKE is taking a more targeted approach to cost management, reducing spending in less productive areas while redirecting resources toward initiatives that can enhance consumer engagement, strengthen brand momentum and support sustainable long-term growth.

However, the company faces a difficult near-term tradeoff. NIKE expects fiscal 2027 revenues to decline in high single digits. NKE is making deliberate portfolio adjustments, particularly across NIKE Sportswear, the Jordan Brand and Greater China, to strengthen the health of these businesses over the long term. The company also plans to reduce excess supply in key areas of the marketplace, with the aim of creating a healthy marketplace and supporting stronger full-price sales.

Overall, NIKE’s strategy appears sound, but successful execution will be crucial. The company must reduce structural costs without undermining its innovation and marketing capabilities, allowing more resources to be directed toward products, athletes, sports and consumer experiences that can support sustainable long-term growth.

NKE’s Peerslululemon athletica inc. (LULU - Free Report) is refocusing its growth strategy on product creation, product activation and enterprise enablement, with a near-term focus on restoring full-price sales growth while strengthening the brand for sustainable long-term growth. LULU is putting greater emphasis on product newness, technical performance and innovation. lululemon is leveraging its innovation platform and expanding beyond traditional yoga and core categories.

adidas AG’s (ADDYY - Free Report) innovation strategy is centered on athlete-led product development, advanced technologies, local consumer insights and a combination of performance innovation with lifestyle appeal. adidas also remains focused on cost discipline and operating efficiency, managing its overall cost base while leveraging sales growth. ADDYY is pursuing a broad-based growth strategy centered on product innovation, performance and lifestyle relevance.

NKE’S Price Performance, Valuation and EstimatesShares of NIKE have lost 21.6% in the past six months against the industry’s decline of 16.9%.

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From a valuation standpoint, NKE trades at a forward price-to-earnings ratio of 20.09X compared with the industry’s average of 17.31X.

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The Zacks Consensus Estimate for NKE’s fiscal 2027 and fiscal 2028 earnings implies year-over-year growth of 1.3% and 32.6%, respectively. The company’s EPS estimate for fiscal 2027 and fiscal 2028 has moved south in the past 30 days.

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Nvidia's $20 billion deal to acquire assets from Groq, an AI chip designer, "squeezed out" stockholders, a lawsuit brought by ex-engineers at the startup alleges.

Joshua Rubin and Benjamin Serebrin alleged that the deal offered stockholders a "lowball" price, in documents filed on Oct. 2 at the Court of Chancery of the State of Delaware.

Rubin and Serebrin both left Groq before its Nvidia deal was announced, per their LinkedIn profiles, but held stock in the company, per their lawsuit.

In December, Groq announced it had entered into a licensing agreement with Nvidia for the company's inference technology. Groq founder and CEO Jonathan Ross and its president, Sunny Madra, joined the $5 trillion chip giant as part of the deal, along with other senior leaders.

Groq said it would continue as an "independent company" and has raised around $1 billion since June, from investors including Nvidia.

Rubin and Serebrin's case alleges that Groq's board of directors "sold the company to Nvidia without the stockholder vote Delaware law requires and without any process designed to test or maximize the value of what Nvidia bought."

"Our licensing agreement with NVIDIA delivered exceptional value for Groq, our investors, and our employees," a Groq spokesperson told CNBC.

"This lawsuit is meritless and we will vigorously defend ourselves against it," they added. "We remain focused on serving our customers and building the world's leading AI inference cloud."

Nvidia has been approached for comment.

The $20 billion dealThe case alleges that Nvidia allocated "$17 billion to a license it labeled "non-exclusive," set aside an additional $3 billion of NVIDIA restricted stock units ("RSUs") for the Groq employees who moved with the technology, and positioned the investment funds that designated Groq Board members to enjoy windfall returns from the later squeeze-out."

It also alleges that "A Board majority was conflicted as a result." It adds: "The Board's conflicted choice cost Groq's stockholders billions of dollars."

Approximately 150 to 200 Groq engineers became Nvidia employees as part of the deal, according to the case.

In an email to employees from around the time the deal was announced, obtained by CNBC, Nvidia CEO Jensen Huang said the agreement would expand Nvidia's capabilities.

"We plan to integrate Groq's low-latency processors into the NVIDIA AI factory architecture, extending the platform to serve an even broader range of AI inference and real-time workloads," Huang wrote.

Huang added: "While we are adding talented employees to our ranks and licensing Groq's IP, we are not acquiring Groq as a company."