Construction Partners (ROAD - Free Report) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of a loss of $0.05 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +485.44%. A quarter ago, it was expected that this road and highway construction company would post earnings of $0.31 per share when it actually produced earnings of $0.47, delivering a surprise of +51.61%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Construction Partners, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $769.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 11.96%. This compares to year-ago revenues of $571.65 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Construction Partners shares have added about 21% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Construction Partners?While Construction Partners has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Construction Partners was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $983 million in revenues for the coming quarter and $2.87 on $3.55 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Advanced Drainage Systems (WMS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.
This maker of water drainage systems and pipes is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level.
Advanced Drainage Systems' revenues are expected to be $660.38 million, up 7.3% from the year-ago quarter.
Key Takeaways BLS Jobs Numbers Hit 115K, More than Double the Expected 55KUnemployment Rate Remained Steady at 4.3%WEN, BAM, ROAD Beat Q1 Estimates, MSGS Misses Friday, May 8th, 2026
Much as we saw in Wednesday’s private-sector payrolls from ADP (ADP), this morning’s Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) was better than expected: +115K new jobs were filled in April, more than double the +55K consensus estimate. The Unemployment Rate remained steady at +4.3%.
This makes three of the past four months with positive jobs growth. Not only that, but all three of those months — +160K in January, and upwardly revised +185K for March and now +115K — were up by triple digits. (February was revised -23K lower, to -156K — the deepest month of negative jobs growth since the Covid pandemic.) Four of the previous eight months showed negative jobs growth on BLS; for ADP it was four straight months in early 2025. We’re clearly off the lows in the U.S. labor market.
Also as we saw in ADP’s report, Healthcare led the way in jobs growth by industry: +37K. This is followed by Transportation/Warehousing jobs at +30K and Retail Trade, +22K. Information jobs shed -13K (negative for the 16th straight week: is this AI related, or is it too early to tell?), the Federal government -9K and Manufacturing -2K. In general, it’s lower-paying jobs leading the way currently; we see this change when Professional/Business Services and Financials are among the sector leaders.
Wage growth tamed somewhat last month: +0.2% from the expected +0.3% and in-line with the prior month. Year over year, +3.6% missed estimates by 20 basis points (bps), but was up 10 bps month over month. The Average Workweek ticked up slightly to 34.3 hours, but Labor Force Participation languished down near 50-year lows to 61.8%. U-6 (aka “real unemployment”) ratcheted up +20 bps to +8.2%, and half a point higher than the +7.7% we saw last July.
In all, we’re seeing what outgoing Fed Chair Jerome Powell has been seeing: the domestic labor market has been holding its own. Perhaps we could stand a little higher quality within that jobs growth, but compared to where we had been — and where many feared we were headed — the market has to feel placated overall.
Pre-market futures, which had already been in the green ahead of this report, boosted further on the news. We shortly thereafter retreated from early highs, but the Dow is +119 points at this hour, the S&P 500 +32 points, the Nasdaq +210 and the small-cap Russell +13 points.
Earnings Results at a Glance
By sheer volume of the number of companies reporting, this is the busiest week of Q1 earnings season (so far — next week will bring over a thousand quarterly posts, as well). We’ve exhausted most of the marquee names, with NVIDIA (NVDA - Free Report) the final “Mag 7” company to report in a couple weeks, but we have plenty of stories being told ahead of today’s opening bell:
Wendy’s (WEN - Free Report) beat bottom-line estimates by +20% to +$0.12 per share (though still well below the +$0.20 per share reported in the year-ago quarter). This was good enough to se the stock gain nearly +4% at this hour, still digging out from its -16.5% hole, year to date. For more on WEN’s earnings, click here.
Brookfield Asset Management (BAM - Free Report) outpaced estimates by a solid penny to +$0.43 per share this morning, and pre-market shares swung to a positive +1% as a result. The alt-energy infrastructure investment company is still down more than -5% year to date.
Construction Partners (ROAD - Free Report) swung to a big positive earnings surprise this morning: +$0.18 per share from an expected negative print of -$0.05, for an impressive +460% earnings surprise. The infrastructure company also raised guidance, and shares are up +6.5% so far this morning.
Madison Square Garden (MSGS - Free Report) , however, despite the New York Knicks’ success in the NBA so far this year, posted a big miss: -$0.78 per share versus a positive +$0.66 anticipated. Shares are flat on the news, but the -218% negative surprise is something to be improved upon. The stock is +28.5% year to date.
Questions or comments about this article and/or author? Click here>>
Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
On May 12, 2026, Construction Partners Inc ROAD shares fell 3.8% to a current price of $135.45. This decline comes amidst a 52-week price range of $91.72 to $151.00, showcasing notable volatility. Despite today's drop, ROAD has experienced a strong performance over the past year, gaining 41.5%.
GF Value™ verdict: The current price of $135.45 is 23.9% above the GF Value™ estimate of $109.30, indicating the stock is overvalued.GF Score™: With a score of 93/100, ROAD is rated as strong, suggesting robust potential in its fundamentals.Most notable signal: The company has seen no insider transactions in the last three months, which may indicate a lack of confidence or activity from insiders. Is ROAD Overvalued or Undervalued? Currently, Construction Partners Inc ROAD is trading at $135.45, which is 23.9% above the GF Value™ of $109.30. This suggests that the stock is overvalued, presenting a risk for potential investors. The GF Valuation label identifies ROAD as modestly overvalued, implying that while the company has strong operational performance, its current market price does not reflect its intrinsic value accurately. Investors may want to consider this discrepancy when assessing their positions.
The margin of safety for investors is minimal at this stage, as the stock is trading significantly above its estimated fair value. Such a scenario may lead to price corrections in the future, particularly if market conditions shift or if the company's performance does not meet high expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does ROAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 59.4x 65.1x Forward P/E 48.4x The current P/E (TTM) of 59.4x is 9% below its 5-year median of 65.1x, suggesting that the stock is trading at a lower valuation compared to its historical average. However, the forward P/E of 48.4x indicates potential future growth, though it is essential to consider that the P/E analysis aligns with the GF Value™ verdict of being overvalued. The lower P/E ratio could imply that the market may be pricing in a slowdown in growth, which investors should keep in mind.
What Does ROAD's GF Score™ Tell Us? Metric Rating GF Score™ 93/100 Financial Strength 5/10 Profitability 9/10 Growth 10/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 93/100 indicates that Construction Partners Inc ROAD has strong potential based on its fundamentals. The strongest aspect of the score is its Growth rank of 10/10, reflecting impressive growth metrics. Conversely, the Financial Strength rank of 5/10 suggests that the company may not be as robust in terms of its balance sheet and financial stability, which investors should consider when evaluating the overall investment potential.
What Are Insiders Doing with ROAD Stock? In the last three months, there have been no insider transactions reported for Construction Partners Inc ROAD . This lack of activity could indicate that insiders are either confident in the company’s performance or that they are waiting for a more opportune moment to buy or sell shares. The absence of insider buying may raise concerns regarding potential future performance, as insider transactions often provide insights into management's confidence in the company's direction.
What This Means for Investors Based on the GF Value™ assessment, Construction Partners Inc ROAD is currently overvalued at a price of $135.45 compared to its GF Value™ of $109.30. Investors might want to exercise caution when considering positions, given the potential for a price correction due to the current overvaluation.
For the complete analysis, visit the Construction Partners Inc ROAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROAD's GF Score™?
ROAD has a GF Score™ of 93/100, indicating strong potential based on its fundamentals and historical performance.
Is ROAD overvalued or undervalued?
According to the GF Value™ assessment, ROAD is overvalued at a current price of $135.45 compared to its GF Value™ of $109.30.
What is ROAD's P/E ratio?
ROAD's P/E (TTM) is 59.4x, which is 9% below its 5-year median of 65.1x, indicating that it is trading at a lower valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Construction Partners' Q2 revenues and adjusted EBITDA both jumped 35% year over year.ROAD backlog hit a record $3.14B, with most next-12-month revenue already secured.Data center demand and acquisitions are fueling growth across key Sunbelt markets. Construction Partners, Inc. (ROAD - Free Report) appears to be moving faster than expected toward its ambitious ROAD 2030 targets, thanks to booming infrastructure demand, aggressive acquisitions and rising commercial opportunities across the Sunbelt.
The company delivered an impressive second-quarter fiscal 2026 performance, with revenues jumping 35% year over year to $769.2 million. Adjusted EBITDA also climbed 35% to $93.3 million, while backlog hit a record $3.14 billion. Management noted that nearly 80-85% of the next 12 months’ revenues are already secured in backlog, providing strong visibility heading into the busy construction season.
ROAD continues to benefit from robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects. The company highlighted multiple data center contracts across Texas and Alabama, reinforcing how AI-driven infrastructure investment is becoming a meaningful tailwind. Acquisitions are also playing a major role. The company completed its fourth acquisition of fiscal 2026 with Four Star Paving in Tennessee, extending its commercial paving reach in the fast-growing Nashville market. Management emphasized that the fragmented nature of the paving industry continues to create attractive consolidation opportunities.
Importantly, margins remain resilient despite energy volatility. Construction Partners’ vertically integrated liquid asphalt operations, fuel hedging strategy and indexed contracts helped cushion commodity swings during the second quarter of fiscal 2026. Encouraged by strong execution and favorable demand trends, management raised fiscal 2026 guidance and reaffirmed confidence in achieving its ROAD 2030 plan, which targets doubling its size, generating $1 billion in annual EBITDA and expanding EBITDA margins to roughly 17%.
Construction Partners vs. Sterling vs. AECOM: Who Leads Now?Construction Partners is capitalizing on booming Sunbelt infrastructure demand through asphalt paving and road construction. Market competitors like Sterling Infrastructure, Inc. (STRL - Free Report) and AECOM (ACM - Free Report) are pursuing broader engineering and construction management opportunities tied to mega infrastructure and mission-critical projects.
Sterling Infrastructure has been leveraging rapid growth in e-infrastructure, data centers and manufacturing projects to complement its transportation business. Its strategy increasingly emphasizes higher-margin specialty construction services and large private-sector opportunities tied to U.S. reindustrialization trends. Conversely, AECOM operates from a different angle, focusing more on engineering, consulting and program management than direct construction execution. The company is benefiting from long-duration infrastructure modernization, environmental projects, transit systems and global urban development initiatives. Its asset-light model and exposure to large public-sector design contracts provide stability, though execution cycles can be longer.
Overall, Construction Partners stands out for its asphalt-driven local market dominance and acquisitive growth model, while Sterling Infrastructure and AECOM offer broader exposure to diversified infrastructure and engineering megatrends.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 13.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry and the S&P 500 Index, but underperforming the broader Construction sector.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.92, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past seven days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Construction Partners (ROAD - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this road and highway construction company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Construction Partners is 57.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 34.2% this year, crushing the industry average, which calls for EPS growth of 11%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Construction Partners is 67.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 11.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28% over the past 3-5 years versus the industry average of 9.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Construction Partners have been revising upward. The Zacks Consensus Estimate for the current year has surged 2.3% over the past month.
Bottom LineConstruction Partners has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Construction Partners well for outperformance, so growth investors may want to bet on it.
Construction Partners, Inc. ROAD has gained 13.5% in the past month, outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 index. Recently, on May 8, 2026, the company reported its second-quarter fiscal 2026 earnings, which reflected strong momentum owing to the robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects.
Key Takeaways ROAD's $3.14B backlog covers about 80%-85% of the next 12 months' contract revenues.ROAD raised FY26 revenue and adjusted EBITDA guidance after a strong Q2.ROAD is gaining from Sunbelt infrastructure demand, data centers, warehouses and acquisitions. Construction Partners, Inc.’s (ROAD - Free Report) record $3.14 billion backlog as of the second quarter of fiscal 2026 suggests solid revenue visibility and potential upside for the fiscal year. The backlog increased 10.6% year over year to $2.84 billion, reflecting continued project wins and strong demand across its markets. Management said this backlog covers roughly 80% to 85% of the next 12 months’ contract revenues, giving the company a strong foundation heading into peak construction season.
The upside case is supported by strong demand across both public and private markets. On the public side, Sunbelt infrastructure spending remains healthy, with state and local DOT awards expected to rise 10% to 15% in 2026. On the private side, Construction Partners is benefiting from commercial projects tied to data centers, warehouses and reindustrialization, including approximately $100 million of data center work in Texas and $28 million of warehouse projects in Tennessee.
The expanding backlog is also supporting stronger guidance. Following solid second-quarter fiscal 2026 results, ROAD raised its fiscal 2026 outlook, projecting revenues of $3.59-$3.65 billion versus the prior range of $3.48-$3.56 billion. Adjusted EBITDA guidance was also increased to $552-$564 million from the earlier $534-$550 million range, reflecting confidence in project execution and contributions from recent acquisitions, including Four Star Paving.
Overall, Construction Partners’ backlog is not just increasing but diversified, given it is backed by broad-based demand, Sunbelt exposure, acquisitive growth and strong project visibility. While management noted that backlog can decline sequentially during the busy construction season as work is executed, the company still expects to keep bidding selectively and continue building backlog over time. This supports the view that ROAD’s $3.14 billion backlog could signal further upside ahead.
ROAD Faces Stiff Competition From Sterling & AECOMConstruction Partners is benefiting from strong Sunbelt infrastructure demand, supported by its asphalt-focused model, and exposure to public roadwork, commercial projects, data centers and warehouses. Market competitors like Sterling Infrastructure, Inc. (STRL - Free Report) and AECOM (ACM - Free Report) are also capitalizing on infrastructure modernization, mission-critical construction and long-term public spending trends.
Sterling has recently delivered exceptional momentum in mission-critical site development. In the first quarter of 2026, revenues surged 92% year over year, adjusted EBITDA more than doubled and margins reached a record 20%. Growth was driven by the E-Infrastructure segment, where revenues climbed 174% on strong hyperscale data center demand, semiconductor-related awards and expanding multi-year customer programs. Sterling’s backlog reached $5.2 billion, including more than $5 billion of visibility within E-Infrastructure alone.
AECOM is a leading solutions provider, offering professional, technical and management services across diverse industries and end markets. The company is benefiting from long-duration infrastructure modernization, environmental projects, transit systems and global urban development initiatives. As of March 31, 2026, the total backlog increased 8% year over year to $26.2 billion. AECOM’s design business delivered a solid 1.2x book-to-burn ratio. This marks the 22nd consecutive quarter with a book-to-burn ratio above 1.0, reflecting sustained demand.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 2.8% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.45, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vancouver, British Columbia--(Newsfile Corp. - May 21, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") announces that, further to its news releases of April 8th and May 1st, 2026, the Canadian Securities Exchange has granted an extension to the deadline for filing final documentation for the private placement to July 6, 2026. Proceeds will be used for general working capital.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298486
Construction Partners (ROAD - Free Report) closed the last trading session at $116.29, gaining 0.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $155.25 indicates a 33.5% upside potential.
The average comprises four short-term price targets ranging from a low of $135.00 to a high of $169.00, with a standard deviation of $14.52. While the lowest estimate indicates an increase of 16.1% from the current price level, the most optimistic estimate points to a 45.3% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for ROAD, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in ROADThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 3%.
Moreover, ROAD currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ROAD could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Construction Partners highlights Texas and Alabama data center projects tied to AI infrastructure growth.ROAD reported a record $3.14B backlog, with 80-85% of the next 12 months' revenue secured.Construction Partners sees commercial demand rising alongside strong public infrastructure spending. Construction Partners, Inc. (ROAD - Free Report) is increasingly emerging as an indirect beneficiary of America’s booming data center expansion, as hyperscale technology investments fuel demand for road, paving and site development work across the Sunbelt.
The company highlighted several data center-related projects during its fiscal second-quarter 2026 earnings call, underscoring how AI-driven infrastructure growth is becoming a meaningful tailwind. In Texas, Four Star Paving is currently involved in a portfolio of eight data center projects valued at nearly $100 million. Meanwhile, Wiregrass Construction in Alabama is participating in a Mag 7 data center project, signaling growing exposure to large-scale technology infrastructure development.
Management emphasized that data center opportunities are steadily becoming a larger part of its commercial project mix as developers expand aggressively across high-growth Sunbelt markets. The ongoing reindustrialization trend, coupled with rising AI computing demand, continues driving investments in manufacturing hubs, warehouses and digital infrastructure facilities in states where Construction Partners operates. Importantly, ROAD’s strong local-market presence and decentralized operating model position it well to capture recurring commercial opportunities tied to these developments. At the same time, public infrastructure spending remains healthy, creating a favorable dual-demand environment.
Construction Partners is also benefiting from a record $3.14 billion backlog, supported by both public and private-sector projects. Management noted that approximately 80-85% of the next 12 months’ expected revenues are already secured in backlog, providing strong visibility. While roadway maintenance remains its core business, the accelerating data center boom is clearly opening a promising new growth avenue for Construction Partners.
Construction Partners vs. Primoris vs. Quanta: Who Taps on the Megatrends?Riding the meaningful market tailwinds surrounding data center demand growth, Construction Partners faces notable competition from key market players like Primoris Services Corporation (PRIM - Free Report) and Quanta Services, Inc. (PWR - Free Report) .
Primoris Services capitalizes on the rising demand for power, utilities and renewable infrastructure linked to data centers and industrial expansion. PRIM’s engineering and specialty contracting expertise position it well to benefit from grid modernization, energy transition projects and large industrial construction opportunities emerging from AI-related electricity demand growth.
Meanwhile, Quanta remains one of the strongest beneficiaries of AI infrastructure spending, as hyperscale data centers require massive transmission, substation and power-grid investments. Quanta’s record backlog reflects surging utility spending, electrification trends and long-term demand for resilient energy infrastructure. Together, all three companies are benefiting from the intersection of AI growth, reindustrialization and expanding U.S. infrastructure investment cycles.
ROAD Stock’s Price Performance & Valuation TrendShares of this Alabama-based civil infrastructure company have gained 7.2% year to date, outperforming the Zacks Building Products - Miscellaneous industry, but underperforming the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 33.66, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of ROADROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have trended upward in the past 30 days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Construction Partners (ROAD - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this road and highway construction company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Construction Partners is 57.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 34.2% this year, crushing the industry average, which calls for EPS growth of 9.6%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Construction Partners is 67.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 12.8%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28% over the past 3-5 years versus the industry average of 9.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Construction Partners. The Zacks Consensus Estimate for the current year has surged 3% over the past month.
Bottom LineConstruction Partners has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Construction Partners well for outperformance, so growth investors may want to bet on it.
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2026) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") is pleased to announce that, further to its news releases of April 8th, May 1st, May 21st and May 29th, 2026, it has closed the second tranche of its non-brokered private placement. The Company has issued an additional 3,000,000 units at a price of $0.06 per unit for proceeds of $180,000 (the "Private Placement"). Each unit consists of one common share and one warrant, with each warrant entitling the holder to purchase one common share at a price of $0.08 for a period of three years expiring June 3, 2029. Proceeds will be used for general working capital. All securities issued will be subject to a four month hold period expiring October 4, 2026.
Mineral Road Partners Inc. ("MR Partners"), a company controlled by Damien Reynolds, the Company's Chairman, interim CEO and Director, acquired 500,000 units of the Company. As a result, MR Partners now owns, directly and indirectly, 66.27% of the outstanding shares of the Company or 72.42% assuming exercise of all warrants held by MR Partners and is a "control person" as that term is defined under securities legislation.
MR Partners purchased the units for investment purposes. The Private Placement and the acceptance of the subscription by MR Partners was approved by unanimous resolution of the board of directors of the Company. There was no formal valuation of the Company done in connection with the Private Placement nor has there been such a formal valuation in the past 24 months. The Company relied upon the exemptions contained in Section 5.5(b) and 5.7(b) of Multilateral Instrument 61-101 ("MI 61-101") to avoid the formal valuation and shareholder approval requirements of MI 61-101. For the purposes of Section 5.5(b), the Company does not have any securities listed on any of the stock exchanges set out in Section 5.5(b) and for the purposes of Section 5.7(b) the exemption was available as the consideration paid for the units subscribed for by MR Partners was less than $2,500,000.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release.
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300357
Source: Mineral Road Discovery Inc.
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On June 08, 2026, Construction Partners Inc ROAD shares fell 3.8% to a current price of $106.30. The stock has experienced a significant decline over the past month, dropping 24.3%. Its 52-week range has been between $93.22 and $151.00, reflecting considerable volatility.
GF Value™ verdict: Current price is $106.30, which is 11.2% below the GF Value™ of $119.64.GF Score™: 95/100, indicating a strong overall performance.Most notable signal: Momentum rank of 10/10, suggesting strong upward price movement. Is ROAD Overvalued or Undervalued? Currently, Construction Partners Inc ROAD is trading at $106.30, which is 11.2% undervalued compared to its GF Value™ estimate of $119.64. This undervaluation presents a potential opportunity for investors who may be looking for stocks that are trading below their intrinsic value. The GF Valuation label indicates that ROAD is considered modestly undervalued, suggesting that there is some margin of safety for investors. However, it is essential to be cautious, as a decline in price can also indicate underlying issues that could affect future performance.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Considering the current price relative to the GF Value™, there may be an attractive entry point for potential investors, but further analysis of the company's fundamentals and market conditions is warranted.
How Does ROAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 46.6x 65.1x Forward P/E 27.9x N/A The current P/E (TTM) of 46.6x is 28% below its 5-year median P/E of 65.1x. Additionally, the forward P/E of 27.9x indicates a more favorable valuation compared to the historical averages. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that ROAD is currently undervalued relative to its historical valuation metrics.
What Does ROAD's GF Score™ Tell Us? Metric Rating GF Score™ 95 Financial Strength 5/10 Profitability 9/10 Growth 10/10 Valuation 9/10 Momentum 10/10 The GF Score™ of 95/100 indicates a strong overall performance for Construction Partners Inc ROAD , with particularly high rankings in Growth (10/10) and Momentum (10/10). However, the Financial Strength rating of 5/10 suggests there may be some concerns in this area, which warrants further investigation. The strong Profitability (9/10) and Valuation (9/10) scores also indicate that the company's core operations are performing well and that it is priced attractively relative to its earnings.
What Are Insiders Doing with ROAD Stock? In the last three months, there have been no insider transactions reported for Construction Partners Inc ROAD . This lack of insider activity may suggest that executives and board members do not see immediate opportunities for buying or selling their shares, which can often imply confidence in the company's current valuation and outlook. However, it is essential to keep an eye on insider activity, as significant purchases or sales can signal changes in management's perspective on the company’s future performance.
What This Means for Investors Based on the analysis of the current price relative to the GF Value™, Construction Partners Inc ROAD is currently undervalued. This presents a potential opportunity for investors to consider, but it is essential to conduct further due diligence regarding the company’s financial health and market conditions.
For the complete analysis, visit the Construction Partners Inc ROAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ROAD's GF Score™?
ROAD's GF Score™ is 95/100, indicating a strong overall performance with high potential for long-term returns.
Is ROAD overvalued or undervalued?
ROAD is currently considered undervalued, with a GF Value™ estimate of $119.64 compared to its current price of $106.30.
What is ROAD's P/E ratio?
ROAD's P/E (TTM) is 46.6x, which is significantly below its 5-year median P/E of 65.1x, suggesting a favorable valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
C.H. Robinson Worldwide (CHRW - Free Report) reported $4.01 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 0.8%. EPS of $1.35 for the same period compares to $1.17 a year ago.
The reported revenue represents a surprise of -1.58% over the Zacks Consensus Estimate of $4.08 billion. With the consensus EPS estimate being $1.25, the EPS surprise was +8.47%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how C.H. Robinson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average employee headcount: 11,705 compared to the 11,824 average estimate based on two analysts.Total Revenues- NAST: $2.95 billion versus the three-analyst average estimate of $2.9 billion. The reported number represents a year-over-year change of +2.8%.Total Revenues- All Other and Corporate: $400.88 million versus the three-analyst average estimate of $385.13 million. The reported number represents a year-over-year change of -0.6%.Total Revenues- Global Forwarding: $664.73 million versus the three-analyst average estimate of $704.85 million. The reported number represents a year-over-year change of -14.2%.Adjusted Gross Profit- NAST: $431.08 million versus $417.14 million estimated by three analysts on average.Adjusted Gross Profit- Global Forwarding: $162.29 million versus $172.75 million estimated by three analysts on average.Adjusted Gross Profit- All Other & Corporate: $67.13 million versus the three-analyst average estimate of $68.61 million.Adjusted Gross Profit- All Other & Corporate- Managed Solutions: $29.6 million versus $30.87 million estimated by two analysts on average.Adjusted Gross Profit- All Other & Corporate- Robinson Fresh: $37.5 million versus the two-analyst average estimate of $38.46 million.View all Key Company Metrics for C.H. Robinson here>>>
Shares of C.H. Robinson have returned +13.2% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
C.H. Robinson Worldwide Inc (CHRW) Q1 2026 Earnings Call Highlights: Navigating Market Challenges with Strategic Gains Despite revenue declines, C.H. Robinson Worldwide Inc (CHRW) achieved a 15% increase in adjusted EPS and expanded operating margins, driven by strategic initiatives and Lean AI implementation. Summary
Adjusted Earnings Per Share: Increased 15% year over year.NAST Gross Margin: Maintained at 14.6% in Q1.Global Forwarding Gross Margin: Expanded by 60 basis points year over year.Revenue: Declined approximately 1% year over year.Adjusted Gross Profit (AGP): Declined approximately 2% year over year.Personnel Expenses: $352.7 million, including $18.8 million of restructuring charges.SG&A Expenses: $132.1 million, excluding $1.5 million in restructuring charges.Operating Margin: Expanded by 210 basis points year over year, excluding restructuring costs.Cash from Operations: Generated $68.6 million in Q1.Liquidity: Approximately $1.24 billion at the end of Q1.Net Debt-to-EBITDA Ratio: 1.32 times at the end of Q1.Shareholder Returns: $360 million returned in Q1, including $280.7 million of share repurchases and $79 million of dividends.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points C.H. Robinson Worldwide Inc CHRW reported a 15% year-over-year increase in adjusted earnings per share for Q1 2026, despite higher truckload spot market costs.The company gained market share in its North American Surface Transportation (NAST) business for the 12th consecutive quarter.C.H. Robinson Worldwide Inc (CHRW) successfully implemented its Lean AI strategy, which has led to improved productivity and cost efficiency.The Global Forwarding team expanded gross margins by 60 basis points year over year, despite challenges in the international freight market.The company maintained its NAST gross margin percentage at 14.6% in Q1, despite absorbing higher costs of capacity and fuel. Negative Points C.H. Robinson Worldwide Inc (CHRW) experienced a 12% year-over-year decline in Global Forwarding adjusted gross profit due to lower transaction volumes and ocean services.The company's total revenue and adjusted gross profit declined approximately 1% and 2% year over year, respectively.Q1 personnel expenses included $18.8 million in restructuring charges related to workforce reductions.The company faced significant increases in truckload spot market costs, which rose approximately 19% year over year.The macro environment presented challenges, with the Cass Freight Shipment Index down 6.2% year over year, indicating broader market pressures. Q & A Highlights Q: How does C.H. Robinson view the impact of cycle improvement rates on their business, and what is their response to the Montgomery case?
A: David Bozeman, CEO, stated that the Montgomery case is expected to be won, emphasizing its importance for industry safety and consistency in regulations. Regarding cycle improvement rates, Michael Castagnetto, President of NAST, highlighted the company's successful repricing efforts and strong bid activity, positioning them well to manage higher costs and maintain customer relationships.
Q: Can you elaborate on the reduction in headcount and its impact on sales and productivity?
A: David Bozeman explained that the reduction in headcount was primarily due to increased efficiencies in the order-to-cash process, allowing the company to focus more on customer-facing roles. Damon Lee, CFO, added that they are committed to achieving double-digit productivity improvements, driven by Lean AI and technology adoption, with a focus on continuous improvement.
Q: How is C.H. Robinson managing the mix of contract and spot business in the current market environment?
A: Michael Castagnetto noted that while the company aims for a balanced mix over time, the current focus is on servicing contractual obligations and selectively capturing transactional business at favorable margins. The strategy is to maintain flexibility and adapt to market conditions, ensuring customer satisfaction and profitability.
Q: What is the outlook for Global Forwarding in terms of AI deployment and market conditions?
A: Arun Rajan, Chief Strategy and Innovation Officer, stated that the Lean AI strategy used in NAST is being deployed in Global Forwarding, with significant runway for improvement. Despite global disruptions, the team has managed to mitigate impacts effectively, maintaining service levels and customer satisfaction.
Q: How does C.H. Robinson view the potential impact of the Montgomery case on market share and industry dynamics?
A: David Bozeman emphasized the importance of a favorable ruling for industry consistency and safety standards. While acknowledging potential insurance implications, he stressed that the company is prepared for any outcome and focused on maintaining its competitive position and market share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways C.H. Robinson posted Q1 2026 EPS of $1.35, up 15.4% Y/Y, while revenue fell 0.8% to $4.01B.CHRW cited share gains, revenue management, cost-of-hire edge and Lean AI productivity for EPS growth.For 2026, C.H. Robinson expects capital expenditures between $75 million and $85 million. C.H. Robinson Worldwide, Inc. (CHRW - Free Report) reported mixed first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
Quarterly earnings per share (EPS) of $1.35 outpaced the Zacks Consensus Estimate of $1.24 and improved 15.4% year over year. C.H. Robinson reported earnings growth on the back of market share gains, revenue management, a cost of hire advantage versus the market and productivity improvements (aided by its Lean AI strategy).
Total revenues of $4.01 billion missed the Zacks Consensus Estimate of $4.08 billion and fell 0.8% year over year, owing to the lower volume in the company’s ocean and truckload services and lower pricing in the ocean services. These were, however, partially offset by higher pricing in CHRW’s truckload and less than truckload (LTL) services.
Adjusted gross profits fell 1.9% year over year to $660.5 million in the first quarter, owing to lower adjusted gross profit per transaction and lower volume in ocean services. This was partially offset by higher adjusted gross profit per transaction in the company’s LTL services.
Adjusted income from operations grew 5.6% year over year to $195.9 million. Adjusted operating margin of 26.6% grew 30 basis points from the year-ago reported quarter.
Operating expenses decreased 2.3% year over year to $484.8 million. Personnel expenses grew 1.2% year over year to $352.7 million, owing to higher restructuring charges related to workforce reductions, partially offset by cost optimization efforts and productivity improvements. Other selling, general and administrative (SG&A) expenses decreased 10.6% year over year to $132.1 million, owing to a prior year impairment charge on CHRW’s Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building. In addition, other SG&A expenses declined across several expense categories in 2026 due to cost optimization efforts.
CHRW’s Q1 Segmental ResultsNorth American Surface Transportation’s total revenues were $2.94 billion (up 2.8% year over year) in the first quarter, owing tohigher pricing in CHRW’s truckload and LTL services. Adjusted gross profit of the segment grew 3% year over year to $431.07 million.
Total revenues from Global Forwarding fell 14.2% year over year to $664.73 million, owing to lower pricing and volume in the company’s ocean services. Adjusted gross profits fell 12.1% year over year to $162.29 million.
Revenues from other sources (Robinson Fresh, Managed Services and Other Surface Transportation) decreased 0.6% year over year to $400.88 million.
Below, we present the division of adjusted profits among the service lines (on an enterprise basis).
Transportation: The unit (comprising Truckload, LTL, Ocean, Air, Customs and Other logistics services) delivered an adjusted gross profit of $628.40million in the quarter under review, down 1.9% from the prior-year figure.
Adjusted gross profits of LTL, Customs and Other logistics services grew 10.1%, 20.1% and 6.6%, year over year, respectively. Truckload, Ocean and Air’s adjusted gross profits declined 4.1%, 22% and 0.3% year over year, respectively.
Balance-Sheet DataCHRW exited the first quarter with cash and cash equivalents of $159.66 million compared with $160.87 million at the end of the prior quarter. Long-term debt was $1.34 billion compared with $1.09 billion at the end of the prior quarter.
CHRW generated $68.6 million of cash from operations in the first quarter of 2026, down from $106.5 million generated in the year-ago quarter. The $37.9 million downside in cash flow generation was owing to a $62.4 million decrease in cash generated by changes in net operating working capital.
In the first quarter of 2026, CHRW rewarded its shareholders with $359.8 million, which includes $280.7 million in the form of share repurchases and $79 million through cash dividends.
Capital expenditures were $15 million in the reported quarter.
For 2026, capital expenditures for 2026 are anticipated to be between $75 million and $85 million.
Currently, CHRW carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: C.H. Robinson Worldwide (CHRW - Free Report) Based in Minnesota, C.H. Robinson Worldwide Inc. is a third-party logistics company. As a asset-light transportation provider, C.H. Robinson provides freight transportation services and logistic solutions to companies across a range of industries. The company's services range from commitments on a specific shipment to more comprehensive and integrated relationships.
CHRW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CHRW has a Growth Style Score of A, forecasting year-over-year earnings growth of 18.1% for the current fiscal year.
For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $6.01 per share. CHRW boasts an average earnings surprise of +9.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CHRW should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: C.H. Robinson Worldwide (CHRW - Free Report) Based in Minnesota, C.H. Robinson Worldwide Inc. is a third-party logistics company. As a asset-light transportation provider, C.H. Robinson provides freight transportation services and logistic solutions to companies across a range of industries. The company's services range from commitments on a specific shipment to more comprehensive and integrated relationships.
CHRW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Transportation stock. CHRW has a Momentum Style Score of A, and shares are up 0.6% over the past four weeks.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.08 to $6.07 per share. CHRW boasts an average earnings surprise of +9.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CHRW should be on investors' short list.
Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Bank of America has added FedEx (NYSE:FDX | FDX Price Prediction) to its “US 1 List,” a collection of its best investment ideas. The move, announced May 11, is a high-conviction symbolic signal even without a fresh price target attached. For long-term investors, the inclusion reframes FedEx stock as one of Wall Street’s preferred industrial transformation plays heading into the second half of the year.
Notably, Bank of America also added two other names to its US 1 List on the same day: Corning (NYSE:GLW) and C.H. Robinson (NASDAQ:CHRW). The grouping hints at a coordinated thesis across freight, parcel, and AI-linked components.
Ticker Company Firm Action Old Rating New Rating Old Target New Target FDX FedEx Bank of America Added to US 1 List n/a n/a n/a n/a The Analyst’s Case The US 1 List is hand-picked by analysts, which is what makes this analyst upgrade signal carry weight. Bank of America’s thesis rests on continued structural margin gains from the DRIVE program, deeper Ground and Express integration, stabilizing e-commerce and B2B parcel demand, and restored pricing power after post-pandemic volume normalization.
The simultaneous addition of CHRW stock reinforces the read. Two logistics names landing together suggests Bank of America’s research team sees freight and parcel volumes troughing, with logistics often acting as an early-cycle indicator for broader industrial activity.
Company Snapshot FedEx carries a market cap of $90.92 billion and just posted a Q3 FY2026 adjusted EPS of $5.25 versus $4.13 consensus on revenue of $24 billion, up 8.3% year over year. Management raised FY2026 adjusted EPS guidance to $16.05 to $16.85 and now targets more than $1 billion in permanent transformation cost reductions.
Strategically, the FedEx Freight spin-off is planned for June 1, 2026, alongside a fiscal year-end shift to December 31. CEO Raj Subramaniam stated, “[O]ur network and digital transformation is enabling us to make supply chains smarter for everyone.”
Why the Move Matters Now FedEx stock trades at around $381, with shares up roughly 75% over the past year and a forward P/E ratio of 17x. The consensus analyst target sits near $402, and Wall Street currently carries 16 Buy and 2 Strong Buy ratings.
Macro signals also align. FedEx’s U.S. retail sales hit $752.1 billion in March, up 2.4% month over month, supporting parcel demand. Peer UPS (NYSE:UPS), by contrast, is mid-transformation with Q1 2026 revenue down 1.3% year over year, sharpening FedEx’s relative momentum.
What It Means for Your Portfolio The bull case for FedEx stock rests on network optimization, pricing discipline, and normalizing e-commerce volumes. The bear case includes Amazon‘s (NASDAQ:AMZN) expanding logistics network, execution risk on DRIVE, and the freight shipment volume decline of 6% heading into the spin-off.
For prudent investors, the US 1 List inclusion isn’t a green light to chase FedEx stock, but it does validate a multi-year transformation story now showing tangible margin traction. Moderate position sizing and patience through FedEx’s June spin-off may suit prudent investor portfolios best.
Investors interested in stocks from the Transportation - Services sector have probably already heard of ZTO Express (Cayman) Inc. (ZTO) and C.H. Robinson Worldwide (CHRW).
EDEN PRAIRIE, Minn.--(BUSINESS WIRE)---- $CHRW #CHRobinson--C.H. Robinson to Participate in Wolfe Research Global Transportation & Industrials Conference.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: C.H. Robinson Worldwide (CHRW - Free Report) Based in Minnesota, C.H. Robinson Worldwide Inc. is a third-party logistics company. As a asset-light transportation provider, C.H. Robinson provides freight transportation services and logistic solutions to companies across a range of industries. The company's services range from commitments on a specific shipment to more comprehensive and integrated relationships.
CHRW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CHRW has a Growth Style Score of A, forecasting year-over-year earnings growth of 19.7% for the current fiscal year.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $6.09 per share. CHRW boasts an average earnings surprise of +9.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CHRW should be on investors' short list.
AI Broke the Trucks: 3 Transports to Buy After the AI PanicC.H. Robinson Worldwide NASDAQ: CHRW executives said the freight brokerage industry could see accelerated consolidation following the Montgomery ruling, while emphasizing that the company does not expect a material financial hit from higher insurance costs.
Speaking at the Wolfe Research conference, President and CEO Dave Bozeman said C.H. Robinson “expected to win” the Montgomery case and had prepared plans for either outcome. He said the company has “one of the safest networks in the industry” and described its carrier vetting process as among the strongest in the sector.
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Is the Grinch Stealing This Year's Holiday Season Jobs? Bozeman said C.H. Robinson carries $137 million in auto liability coverage and $86 million in general liability coverage. He said the ruling may create a “headwind” for smaller, less-scaled brokers and potentially some smaller carriers.
“You need a trusted scaled broker to stand up and really drive this,” Bozeman said. “We are that trusted scaled broker.”
Executives Expect Industry Consolidation Chief Financial Officer Damon Lee said the ruling could pressure small and medium-sized brokers through higher insurance costs and reduced shipper confidence, given increased liability concerns.
“We do believe this will lead to a consolidation in the industry,” Lee said, adding that C.H. Robinson expects to be “that consolidator.”
Lee said C.H. Robinson is locked in on insurance coverage for 2026, with the next renewal negotiations expected in the second half of 2026 and any related impact likely felt in 2027. He said insurance costs are currently less than one-half of 1% of gross revenue, so even a “demonstrable increase” would not be material to the company.
Lee also characterized higher insurance expenses as a transitory cost that would ultimately be passed through from brokers to shippers and then to consumers.
Bozeman said C.H. Robinson currently handles more than 37 million shipments annually and brokers roughly 500 million miles for every severe incident. He said the company does not plan wholesale changes to its carrier vetting process, but will continue to improve it.
Bozeman said C.H. Robinson partners with Highway and GenLogs, uses proprietary technology and has stopped “hundreds” of chameleon carriers from accessing its network. He said the company has a “99.9% fraud-free” network and leads a consortium of companies focused on fraud prevention.
Freight Market Strategy Focuses on Contract and Spot Asked about spot and contract volumes, Bozeman said C.H. Robinson is focused on both parts of the market rather than relying only on spot freight.
“We’re winning in both spot and we’re winning in contract,” Bozeman said, noting that 75% to 80% of freight moves on contract. “Spot alone is fleeting.”
Lee said C.H. Robinson’s North American Surface Transportation business has outgrown the market for 12 consecutive quarters. He said the company expects the current bid season to be strong in both volume and pricing.
Lee said C.H. Robinson is a “fundamentally different company” than it was in the last upcycle, citing changes in processes, culture and efficiency. He said in the first quarter, spot costs were up close to 20% year over year, while the company maintained flat margins from an adjusted gross profit perspective.
“We believe our operating leverage for C.H. Robinson will rival the asset players when volume returns to this market,” Lee said.
$6 Earnings Target Reaffirmed Lee reiterated the company’s $6 earnings target, while clarifying that C.H. Robinson does not issue formal guidance. He said the target assumes a zero-growth freight market.
“Even if the market is a headwind, it doesn’t mean we give up on our $6 target,” Lee said. “We will absolutely fight in the trenches every single day to make up any market headwind we have.”
Executives also addressed the company’s margin targets in North American Surface Transportation. Bozeman said it is logical that margins could exceed the 40% mid-cycle target, but said the company is balancing margin expansion with opportunities to reinvest in growth.
Lee said C.H. Robinson wants the optionality to pursue market share once margins are above 40%, rather than committing to a higher formal margin target.
Productivity Gains Tied to Lean and AI Bozeman said C.H. Robinson has improved labor productivity by 50% in North American Surface Transportation and 45% in global forwarding since the end of 2022. He said the company does not separate the benefits of Lean operating practices from artificial intelligence, describing the relationship as “symbiotic.”
One example, Bozeman said, is transactional quoting. He said the company previously responded to 60% of transactional quotes, while a new quoting agent now responds to 100% of those requests. He said response time has been reduced to 31 seconds from 32 seconds, while providing more detailed responses and freeing employees for more customer-facing work.
Lee said there is “no cap” on productivity because C.H. Robinson has automated only a fraction of thousands of processes and tens of thousands of subprocesses. He said a large increase in transactional quote requests could be absorbed by technology without a material increase in headcount.
M&A and Forwarding in Focus Lee said C.H. Robinson now believes it is ready to pursue mergers and acquisitions after spending the past two years improving its cost-to-serve model, processes and technology. He said potential transactions could include specialized smaller businesses or a scaled broker with an attractive book of business but challenged cost structure.
“We’re going to be the consolidator of this industry,” Lee said.
On global forwarding, Bozeman said C.H. Robinson began its transformation with North American Surface Transportation and is now moving its technology stack into forwarding. He said the company is focused on reducing friction in the order-to-cash process, increasing productivity and improving speed and agility in that segment.
Bozeman said C.H. Robinson is not immune to broader ocean freight market forces, while adding that air freight has a different operating cadence and that the company is competing well in that business.
About C.H. Robinson Worldwide NASDAQ: CHRWC.H. Robinson Worldwide, Inc is a third-party logistics provider founded in 1905 and headquartered in Eden Prairie, Minnesota. Originally established as a produce brokerage firm, the company has since expanded its offerings to become one of the world's largest freight and logistics intermediaries. C.H. Robinson leverages a global network of transportation providers, technology platforms, and in-house expertise to connect shippers and carriers across multiple modes of transportation.
The company's primary services include truckload, less-than-truckload (LTL), intermodal, air and ocean freight, and managed transportation solutions.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in C.H. Robinson Worldwide Right Now?Before you consider C.H. Robinson Worldwide, you'll want to hear this.
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Investors looking for stocks in the Transportation - Services sector might want to consider either ZTO Express (Cayman) Inc. (ZTO - Free Report) or C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
ZTO Express (Cayman) Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ZTO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ZTO currently has a forward P/E ratio of 11.93, while CHRW has a forward P/E of 29.20. We also note that ZTO has a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHRW currently has a PEG ratio of 1.54.
Another notable valuation metric for ZTO is its P/B ratio of 1.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHRW has a P/B of 12.31.
Based on these metrics and many more, ZTO holds a Value grade of A, while CHRW has a Value grade of D.
ZTO has seen stronger estimate revision activity and sports more attractive valuation metrics than CHRW, so it seems like value investors will conclude that ZTO is the superior option right now.
As the global leader in Lean AI supply chains, C.H. Robinson has built the first AI technology designed to both operate a shipper’s global supply chain and also continuously assess and improve its performance. Now serving the company’s 4PL Managed Solutions customers, a new Lean AI Engineer works in concert with the Lean AI Planner introduced last year to create one connected system that uniquely enhances a supply chain as it runs.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260520874794/en/
The Lean AI Engineer can assess an entire supply chain in 25 to 30 minutes and determine improvements before performance is impacted – compared to supply chain assessments that typically take up to four weeks and look backward at what has happened instead of what should happen. While the Lean AI Engineer delivers intel, the Lean AI Planner manages shipments through hundreds of interconnected AI agents and in turn feeds more data back to the Lean AI Engineer to develop even smarter refinements.
“The breakthrough here is that it’s one closed-loop AI system,” said Jordan Kass, President of Managed Solutions. “It will run continuously, improve the operation it’s running and heal itself when something breaks — without an alert or a human noticing a problem first. The Lean AI Planner executes in real time while the Lean AI Engineer studies the results, identifies patterns, adapts logic and influences future decisions. Just like we launched Managed Solutions to break down the barriers between TMS, 3PL and 4PL services, this technology ends the need for separate supply chain intelligence and orchestration tools. It’s what businesses with complex logistics have wanted for decades.”
The technology is autonomously handling 92% of 4PL shipments globally across trucking, ocean, air and rail, from the moment an order is created through tendering, routing, delivery, exceptions and carrier payment.
“This level of premium logistics service has traditionally depended on talented people to manage complexity, make smart decisions day to day and intervene during disruption,” said Kass. “The problem was that talent didn’t scale. We’ve changed that by encoding expertise in the technology itself. Shippers will get infinite talent and expertise, consistently applied across every shipment, regardless of who’s available in what time zone or how much their shipping volume grows or spikes. Their team and our team can focus on strategic priorities and driving the best business results.”
As with all AI, success depends on the data and context the system has access to. With 450 in-house software engineers and data scientists, the proprietary context layer of C.H. Robinson’s AI was built by methodically capturing institutional knowledge from workflows and the company’s seasoned freight experts and feeding it to the model on an ongoing basis.
“Our technology truly understands your supply chain from the inside out, because the AI leverages all the data on all the steps of your shipping end to end, not just the parts of your supply chain that disparate tools see,” said Kass. “It also has the benefit of being trained on the unique context we have from orchestrating your freight – the large and small details about your goods, your procedures, each pickup and delivery location, your carriers, your routing and risk tolerance. That’s how the Lean AI Engineer knows which improvements are right for you, instead of making generic or theoretical recommendations. If you’re an auto-parts maker shipping cross-border to a just-in-time assembly line five days a week, it won’t suggest how much you could save by shipping once a week.”
C.H. Robinson’s advanced AI takes into account more variables than human analysis or typical software analysis could, and recommendations are more actionable as well as prioritized. At launch, the Lean AI Engineer identifies optimizations and hidden savings. One early adopter learned that switching from a varied shipping schedule to once a week would reduce their loads by 17% across 20 locations for an annual savings of over $1 million. For another, reorganizing their shipments so that one pickup serves three different delivery locations would cut their loads by 81% and save them 40%.
In the coming weeks, the Lean AI Engineer will roll out for more customers and begin assessing a multitude of other factors, such as carrier performance. Continuously monitoring carrier behavior across lanes, transportation modes and customers, it will identify leading indicators of degrading performance and recommend corrective actions before service failures happen.
“Supply chains do not generally suffer from a lack of information. They suffer from the gap between knowing and doing,” said Arun Rajan, Chief Strategy and Innovation Officer. “Tech that sits above or outside of a supply chain can aggregate data, harmonize signals and recommend. But it relies on someone else to execute on the signals and someone else to learn whether those actions worked. Our tech closes the gap, delivering 24/7 premium service with one unified system no one else can match.”
ABOUT C.H. ROBINSON
C.H. Robinson is the global leader in Lean AI supply chains. For more than a century, companies everywhere have looked to us to reimagine how goods move. Now, as we redefine what’s next for the industry, that same drive fuels our commitment to Building Tomorrow’s Supply Chains, Today™. Trusted by 75,000 customers and 450,000 carriers, we manage an unmatched 37 million shipments annually, representing $23 billion in freight. We deliver tailored solutions across the world via truckload, less-than-truckload, ocean, air and more. With our unique combination of human insight and Lean AI working as one, supply chains move faster, smarter and more sustainably. As a responsible global citizen, we proudly contribute millions to the causes that matter most to our employees. Find out more at chrobinson.com. (Nasdaq: CHRW)
View source version on businesswire.com: https://www.businesswire.com/news/home/20260520874794/en/
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: C.H. Robinson Worldwide (CHRW - Free Report) Based in Minnesota, C.H. Robinson Worldwide Inc. is a third-party logistics company. As a asset-light transportation provider, C.H. Robinson provides freight transportation services and logistic solutions to companies across a range of industries. The company's services range from commitments on a specific shipment to more comprehensive and integrated relationships.
CHRW is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. CHRW has a Growth Style Score of A, forecasting year-over-year earnings growth of 19.7% for the current fiscal year.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $6.09 per share. CHRW boasts an average earnings surprise of +9.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CHRW should be on investors' short list.
Key Takeaways C.H. Robinson launched Lean AI Engineer to evaluate and improve supply chains in real time. CHRW says its AI platform autonomously manages 92% of global 4PL shipments. C.H. Robinson reports early customer gains with lower shipment volumes and transport costs. C.H. Robinson Worldwide’s (CHRW - Free Report) latest AI innovation strengthens its position as a technology leader in logistics by introducing a closed-loop system that not only manages supply chain operations but also continuously evaluates and improves them. The combination of the Lean AI Planner and the newly launched Lean AI Engineer enables real-time execution and optimization, reducing assessment times from weeks to minutes. This capability allows customers to identify inefficiencies and implement improvements before disruptions affect performance, enhancing supply chain resilience and operational efficiency.
The technology’s ability to autonomously manage 92% of global 4PL shipments across trucking, ocean, air and rail highlights the scalability of C.H. Robinson’s AI-driven platform. By embedding logistics expertise directly into the system, the company reduces reliance on manual intervention and enables customers to handle growing shipment volumes more effectively. This automation can improve service consistency while allowing logistics teams to focus on higher-value strategic initiatives.
The Lean AI Engineer also offers meaningful cost-saving opportunities through data-driven optimization. Early customer results demonstrate significant efficiency gains, including lower shipment volumes and reduced transportation costs. By leveraging proprietary data, customer-specific operating parameters and institutional knowledge accumulated across its logistics network. This enables C.H. Robinson to deliver tailored recommendations that are more practical and actionable than generic analytics solutions.
The launch further reinforces C.H. Robinson’s long-term growth strategy centered on digital transformation and AI adoption. As the company expands the platform’s capabilities to areas such as carrier performance monitoring and predictive disruption management, it is well-positioned to deepen customer relationships and enhance service quality. This should strengthen its competitive advantage in the increasingly technology-driven global logistics market.
CHRW’s Share Price PerformanceCHRW’s shares have gained 14.9% in the past six months compared with the Transportation - Services industry’s 11.7% growth.
Image Source: Zacks Investment Research
CHRW’s Zacks RankCHRW currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and International Seaways (INSW - Free Report) .
EXPDcurrently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
CAMBRIDGE, England--(BUSINESS WIRE)--Nyobolt, a pioneer in ultra-fast, high-power, energy technology, today announced it has raised $60 million in funding to accelerate its development pipeline and bring its power performance solutions to the autonomous machines that need them most. The round was led by Symbotic (NASDAQ: SYM), a leader in AI-enabled robotics technology for the supply chain, with participation from IQ Capital, Latitude (Phoenix Court), Scania Invest and CBMM. The raise follows a.
WILMINGTON, Mass., May 06, 2026 (GLOBE NEWSWIRE) -- Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its second quarter of fiscal year 2026, which ended on March 28, 2026. Symbotic reported revenue of $676 million, up 23% year-over-year, and net income of $9 million, compared with a net loss of $10 million in the second quarter of fiscal year 2025. Adjusted EBITDA1 reached $78 million, more than double the $35 million in the second quarter of fiscal year 2025.
Cash and cash equivalents totaled $2.0 billion at the end of the second quarter of fiscal year 2026, up from $1.8 billion at the end of the first quarter of fiscal year 2026.
“We again demonstrated strong execution against our key objectives,” said Rick Cohen, Symbotic Chairman and Chief Executive Officer. “Our momentum continues to build as customers across several verticals are now realizing tangible value from our end-to-end automation systems.”
“We delivered another quarter of growth and margin expansion as our total number of systems in deployment rose to 70,” said Izzy Martins, Symbotic Chief Financial Officer. “Looking ahead, we continue to see a solid growth trajectory supported by rising deployments, along with enhanced profitability.”
OUTLOOK
For the third quarter of fiscal 2026, Symbotic expects revenue of $700 million to $720 million, and adjusted EBITDA2 of $80 million to $85 million.
WEBCAST INFORMATION
Symbotic will host a webcast today at 5:00 pm ET to discuss its second quarter fiscal year 2026 results. The webcast link is: https://edge.media-server.com/mmc/go/symbotic-q2-2026/.
ABOUT SYMBOTIC
Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, food & beverage, and medical supply distribution companies. Applying next-generation technology, high-density storage and machine learning to solve today's complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com.
______________________
1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net income (loss), the most comparable GAAP measure.
2 Symbotic is not providing guidance for net income (loss), which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net income (loss) is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.
USE OF NON-GAAP FINANCIAL INFORMATION
Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.
Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net income (loss) excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by total revenue. Symbotic defines adjusted research and development expenses, a non-GAAP financial measure, as GAAP research and development expenses excluding the following items: depreciation and amortization of tangible and intangible assets and stock-based compensation. Symbotic defines adjusted selling, general, and administrative expenses, a non-GAAP financial measure, as GAAP selling, general, and administrative expenses excluding the following items: depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; internal control remediation; business transformation costs; and other infrequent items that may arise from time to time. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events, backlog or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.
Forward-looking statements include, but are not limited to, statements about the ability of or expectations regarding Symbotic to:
meet the technical requirements of existing or future supply agreements with its customers, including with respect to existing backlog;expand its target customer base and maintain its existing customer base;realize the benefits expected from its GreenBox Systems LLC joint venture, which is now doing business as Exol (“Exol”), the commercial agreement with Exol, the commercial agreement with Nueva Wal Mart de México, S. de R.L. de C.V and the acquisition of the Advanced Systems and Robotics business from Walmart;realize its outlook, including its system gross margin;the timing and cost of any product replacement, programs and related recalls;anticipate industry trends;maintain and enhance its system;execute its growth strategy;develop, design and sell systems that are differentiated from those of competitors;execute its research and development strategy;acquire, maintain, protect and enforce intellectual property;attract, train and retain effective officers, key employees or directors;comply with laws and regulations applicable to its business;stay abreast of modified or new laws and regulations applying to its business;successfully defend litigation;issue equity securities in connection with future transactions;meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;timely and effectively remediate any material weaknesses in its internal control over financial reporting;anticipate rapid technological changes;maintain the listing of the Symbotic common stock on Nasdaq; andeffectively respond to general economic and business conditions. Forward-looking statements also include, but are not limited to, statements with respect to:
the future performance of Symbotic’s business and operations;expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;expectations regarding cash flow, liquidity and sources of funding;expectations regarding capital expenditures;the anticipated benefits of Symbotic’s leadership structure;the effects of pending and future legislation;the effects of inflation, prevailing price levels, exchange rates, changes in trade agreements and trade protection measures including tariffs and other economic factors;the direct and indirect effects of geopolitical conditions in the United States and in global economies, including those resulting from acts of war and conflicts and responses to such events;business disruption;disruption to the business due to Symbotic’s dependency on Walmart;increasing competition in the warehouse automation industry;any delays in the design, production or launch of Symbotic’s systems and products;the failure to meet customers’ requirements under existing or future contracts or customer’s expectations as to price or pricing structure;any defects in new products or enhancements to existing products;the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; andany consequences associated with joint ventures and legislative and regulatory actions and reforms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 27, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 24, 2025. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding its financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. Symbotic believes that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-looking statements speak only as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.
Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.
Annualized, projected and estimated numbers are not forecasts and may not reflect actual results.
This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
INVESTOR RELATIONS CONTACT
Charlie Anderson
Vice President, Investor Relations & Corporate Development [email protected]
Symbotic Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months Ended Six Months Ended(in thousands, except share and per share data)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Revenue: Systems$634,496 $590,292 $513,372 $1,224,788 $977,431 Software maintenance and support 12,924 10,885 6,685 23,809 12,210 Operation services 29,060 28,808 29,594 57,868 46,703 Total revenue 676,480 629,985 549,651 1,306,465 1,036,344 Cost of revenue: Systems 495,551 469,873 411,788 965,424 792,778 Software maintenance and support 3,368 2,954 2,030 6,322 3,888 Operation services 27,609 23,734 25,041 51,343 47,870 Total cost of revenue 526,528 496,561 438,859 1,023,089 844,536 Gross profit 149,952 133,424 110,792 283,376 191,808 Operating expenses: Research and development expenses 51,283 43,006 57,960 94,289 101,239 Selling, general, and administrative expenses 92,566 81,219 73,305 173,785 134,010 Restructuring charges 12 2,673 — 2,685 — Total operating expenses 143,861 126,898 131,265 270,759 235,249 Operating income (loss) 6,091 6,526 (20,473) 12,617 (43,441)Other income, net 10,855 13,246 11,714 24,101 19,537 Income (loss) before income tax and equity method investment 16,946 19,772 (8,759) 36,718 (23,904)Income tax benefit (expense) (572) (615) 1,397 (1,187) 1,248 Loss from equity method investment (6,945) (5,799) (2,490) (12,744) (4,055)Net income (loss) 9,429 13,358 (9,852) 22,787 (26,711)Net income (loss) attributable to noncontrolling interests 7,460 10,756 (8,048) 18,216 (21,732)Net income (loss) attributable to common stockholders$1,969 $2,602 $(1,804) $4,571 $(4,979) Income (loss) per share of Class A Common Stock: Basic$0.02 $0.02 $(0.02) 0.04 $(0.05)Diluted$0.01 $0.02 $(0.02) 0.03 $(0.05)Weighted-average shares of Class A Common Stock outstanding: Basic 125,538,207 115,474,119 107,726,978 120,506,529 106,900,622 Diluted 134,364,904 127,870,238 107,726,978 130,869,376 106,900,622 Symbotic Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures The following table reconciles GAAP net income (loss) to Adjusted EBITDA:
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Net income (loss)$9,429 $13,358 $(9,852) $22,787 $(26,711)Interest income (10,906) (11,600) (7,229) (22,505) (14,998)Income tax expense (benefit) 572 615 (1,397) 1,187 (1,248)Depreciation and amortization 11,322 8,693 11,169 20,015 18,029 Stock-based compensation 57,188 44,118 36,376 101,305 63,456 Business combination transaction expenses 710 11 3,298 721 7,100 Equity method investment 6,945 5,799 2,490 12,744 4,055 Internal control remediation 1,931 2,415 2,175 4,347 5,251 Business transformation costs 550 2,531 2,400 3,080 2,400 Fair value adjustments on strategic investments — (1,661) (4,481) (1,661) (4,481)Restructuring charges 12 2,624 (231) 2,636 (231)Adjusted EBITDA$77,753 $66,903 $34,718 $144,656 $52,622 The following table reconciles GAAP gross profit to Adjusted gross profit:
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Gross profit$149,952 $133,424 $110,792 $283,376 $191,808 Depreciation and amortization 1,614 1,489 2,949 3,102 5,418 Stock-based compensation 14,208 12,382 8,300 26,879 11,032 Restructuring charges — (48) (231) (48) (231)Adjusted gross profit$165,774 $147,247 $121,810 $313,309 $208,027 Gross profit margin22.2% 21.2% 20.2% 21.7% 18.5%Adjusted gross profit margin24.5% 23.4% 22.2% 24.0% 20.1% The following table reconciles GAAP research and development expenses to Adjusted research and development expenses:
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Research and development expenses$51,283 $43,006 $57,960 $94,289 $101,239 Depreciation and amortization (5,161) (4,990) (5,611) (10,151) (7,911)Stock-based compensation (17,123) (8,150) (12,028) (25,044) (23,966)Adjusted research and development expenses$28,999 $29,866 $40,321 $59,094 $69,362 The following table reconciles GAAP selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses:
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Selling, general, and administrative expenses$92,566 $81,219 $73,305 $173,785 $134,010 Depreciation and amortization (4,547) (2,214) (2,609) (6,762) (4,699)Stock-based compensation (25,857) (23,585) (16,049) (49,383) (28,460)Business combination transaction expenses (710) (11) (3,298) (721) (7,099)Internal control remediation (1,931) (2,415) (2,175) (4,346) (5,251)Business transformation costs (550) (2,531) (2,400) (3,080) (2,400)Adjusted selling, general, and administrative expenses$58,971 $50,463 $46,774 $109,493 $86,101 The following table reconciles GAAP net cash provided by operating activities to free cash flow:
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Net cash provided by operating activities$261,341 $191,540 $269,575 $452,881 $474,602 Purchases of property and equipment and capitalization of internal use software development costs (43,368) (2,052) (20,560) (45,420) (27,917)Free cash flow$217,973 $189,488 $249,015 $407,461 $446,685 Symbotic Inc. and Subsidiaries
Supplemental Common Share Information
Total Common Shares issued and outstanding:
March 28, 2026 September 27, 2025Class A Common Shares issued and outstanding127,015,993 112,635,932Class V-1 Common Shares issued and outstanding71,940,208 74,693,311Class V-3 Common Shares issued and outstanding403,559,196 403,559,196 602,515,397 590,888,439 Symbotic Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share data)March 28, 2026 September 27, 2025ASSETSCurrent assets: Cash and cash equivalents$2,009,435 $1,244,993 Accounts receivable 132,623 186,705 Unbilled accounts receivable 452,995 181,658 Inventories 201,243 164,390 Deferred expenses 43,538 20,532 Prepaid expenses and other current assets 82,433 86,582 Total current assets 2,922,267 1,884,860 Property and equipment, net 146,458 117,649 Intangible assets, net 87,209 79,149 Goodwill 59,871 59,871 Equity method investment 135,675 123,034 Other assets 143,975 131,166 Total assets$3,495,455 $2,395,729 LIABILITIES AND EQUITYCurrent liabilities: Accounts payable$293,675 $286,669 Accrued expenses and other current liabilities 251,481 200,442 Deferred revenue 1,476,382 1,242,312 Total current liabilities 2,021,538 1,729,423 Deferred revenue 384,025 124,932 Other liabilities 62,227 63,629 Total liabilities 2,467,790 1,917,984 Commitments and contingencies — — Equity: Class A Common Stock, 3,000,000,000 shares authorized, 127,015,993 and 112,635,932 shares issued and outstanding at March 28, 2026 and September 27, 2025, respectively 14 13 Class V-1 Common Stock, 1,000,000,000 shares authorized, 71,940,208 and 74,693,311 shares issued and outstanding at March 28, 2026 and September 27, 2025, respectively 7 7 Class V-3 Common Stock, 450,000,000 shares authorized, 403,559,196 shares issued and outstanding at March 28, 2026 and September 27, 2025 40 40 Additional paid-in capital 2,018,008 1,556,611 Accumulated deficit (1,329,212) (1,333,783)Accumulated other comprehensive loss (2,713) (2,695)Total stockholders' equity 686,144 220,193 Noncontrolling interest 341,521 257,552 Total equity 1,027,665 477,745 Total liabilities and equity$3,495,455 $2,395,729 Symbotic Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Cash flows from operating activities: Net income (loss)$9,429 $13,358 $(9,852) $22,787 $(26,711)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 11,323 8,704 11,153 20,027 18,013 Amortization of leases 2,536 1,388 1,126 3,924 1,911 Restructuring of leases — — — — — Loss from equity method investment 6,945 5,799 2,491 12,744 4,055 Foreign currency losses (gains) 31 27 20 58 (12)Loss on disposal of assets — — — — 201 Provision for excess and obsolete inventory 4,753 4,832 292 9,585 980 Deferred taxes, net — — — — — Stock-based compensation 48,549 45,941 30,919 94,490 55,522 Gain from strategic investment fair value adjustment — (1,661) (4,481) (1,661) (4,481)Changes in operating assets and liabilities: Accounts receivable (24,487) 79,090 (3,195) 54,603 64,181 Inventories (23,184) (24,122) (23,232) (47,306) (33,657)Prepaid expenses and other current assets (209,544) (51,726) 90,341 (261,270) 101,167 Deferred expenses (15,731) (7,275) (1,757) (23,006) (3,921)Other assets 7,288 2,335 (4,836) 9,623 (7,479)Accounts payable 41,661 (23,857) 13,806 17,804 44,951 Accrued expenses and other current liabilities 41,334 8,718 (65,685) 50,052 (20,145)Deferred revenue 360,362 132,244 230,283 492,606 288,619 Acquisition-related consideration paid to customer — — — — — Other liabilities 76 (2,255) 2,182 (2,179) (8,592)Net cash provided by operating activities 261,341 191,540 269,575 452,881 474,602 Cash flows from investing activities: Purchases of property and equipment and capitalization of internal use software development costs (43,368) (2,052) (20,560) (45,420) (27,917)Acquisitions of strategic investments (31,456) (38,528) — (69,984) (17,992)Cash paid for business acquisitions — — (200,000) — (200,000)Net cash used in investing activities (74,824) (40,580) (220,560) (115,404) (245,909)Cash flows from financing activities: Payment for taxes related to net share settlement of stock-based compensation awards — — — — (3,012)Net proceeds from issuance of common stock under employee stock purchase plan 3,898 — 3,233 3,898 3,233 Distributions to or on behalf of Symbotic Holdings LLC partners — (1,222) (382) (1,222) (1,232)Proceeds from issuance of Class A common stock (61) 424,368 — 424,307 — Net cash provided by (used in) financing activities 3,837 423,146 2,851 426,983 (1,011)Effect of exchange rate changes on cash, cash equivalents, and restricted cash (16) 8 50 (8) (34)Net increase in cash, cash equivalents, and restricted cash 190,338 574,114 51,916 764,452 227,648 Cash, cash equivalents, and restricted cash - beginning of period 1,821,307 1,247,193 906,086 1,247,193 730,354 Cash, cash equivalents, and restricted cash - end of period$2,011,645 $1,821,307 $958,002 $2,011,645 $958,002 Three Months Ended Six Months Ended(in thousands)March 28,
2026 December 27,
2025 March 29,
2025 March 28,
2026 March 29,
2025Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents$2,009,435 $1,819,102 $954,944 $2,009,435 $954,944 Restricted cash 2,210 2,205 3,058 2,210 3,058 Cash, cash equivalents, and restricted cash$2,011,645 $1,821,307 $958,002 $2,011,645 $958,002
Symbotic Inc. (SYM - Free Report) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +312.37%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.39, delivering a surprise of +387.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
SYMBOTIC INC, which belongs to the Zacks Technology Services industry, posted revenues of $676.48 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.40%. This compares to year-ago revenues of $549.65 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SYMBOTIC INC shares have lost about 2.4% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for SYMBOTIC INC?While SYMBOTIC INC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SYMBOTIC INC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.11 on $698.82 million in revenues for the coming quarter and $0.48 on $2.76 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, BlackSky Technology Inc. (BKSY - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of +11.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
BlackSky Technology Inc.'s revenues are expected to be $28.33 million, down 4.1% from the year-ago quarter.
Symbotic Inc. (SYM - Free Report) reported $676.48 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 23.1%. EPS of $0.44 for the same period compares to -$0.04 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $660.6 million, representing a surprise of +2.4%. The company delivered an EPS surprise of +312.37%, with the consensus EPS estimate being $0.11.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how SYMBOTIC INC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- Software maintenance and support: $12.92 million versus the three-analyst average estimate of $10.98 million. The reported number represents a year-over-year change of +93.3%.Revenue- Systems: $634.5 million versus $612.77 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +23.6% change.Revenue- Operation services: $29.06 million compared to the $36.03 million average estimate based on three analysts. The reported number represents a change of -1.8% year over year.View all Key Company Metrics for SYMBOTIC INC here>>>
Shares of SYMBOTIC INC have returned +12.6% over the past month versus the Zacks S&P 500 composite's +10.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Walmart WMT is still holding stakes in Symbotic SYM , Green Dot GDOT and Klarna KLAR , showing that the retailer's investment strategy remains closely tied to automation, fintech and checkout innovation. In a new 13F filing, Walmart said it owned 15 million shares of Symbotic, 975K shares of Green Dot and 2.4 million shares of Klarna as of March 31.
The Symbotic position is probably the most important piece of the filing because it connects directly to Walmart's warehouse automation push. Walmart's investment is tied to Symbotic's AI enabled robotics platform and a broader commercial agreement to deploy automation across accelerated pickup and delivery centers. Symbotic also bought Walmart's advanced systems and robotics business in January 2025, while Walmart committed to buying systems for 400 APDs if performance targets are hit.
The Green Dot stake points to Walmart's longer fintech relationship through Walmart MoneyCard and TailFin Labs, while Klarna supports a checkout and lending partnership through the OnePay app.
Investors with an interest in Technology Services stocks have likely encountered both Amadeus IT Group SA Unsponsored ADR (AMADY - Free Report) and Symbotic Inc. (SYM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Amadeus IT Group SA Unsponsored ADR has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AMADY likely has seen a stronger improvement to its earnings outlook than SYM has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMADY currently has a forward P/E ratio of 15.05, while SYM has a forward P/E of 108.94. We also note that AMADY has a PEG ratio of 2.46. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SYM currently has a PEG ratio of 3.63.
Another notable valuation metric for AMADY is its P/B ratio of 5.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SYM has a P/B of 30.64.
These are just a few of the metrics contributing to AMADY's Value grade of B and SYM's Value grade of D.
AMADY sticks out from SYM in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMADY is the better option right now.
The cooldown period for the broad basket of AI stocks, especially the semiconductors, appears to have ended, thanks in part to the rise of agents and powerful frontier models like Anthropic’s Claude Mythos. As we move into a phase of the AI boom that goes beyond just large language models or image generators, where AI could become exponentially more useful, perhaps it’s no surprise that investors are rushing back into the semi stocks.
Why bother picking and choosing stocks at another layer when the semis are standing behind the next wave(s)? Of course, after the latest surge in semi stocks, I do think that the valuation has become a tad on the excessive side. For the most part, it felt like explosive AI chip demand was already baked in going into the year. Since the latest run-up, it feels a tad excessive, even if the next leg does manage to shock and awe.
In any case, as agentic AI paves the way for digital labor and automation while completely gutting the software industry, all while world models and physical AI come into their own, I think it’s time to consider where the puck could head next. The semis might stand out as obvious winners in the next phase, but the problem, at least in my view, is that they’re already priced like massive winners.
Whenever you’re buying unstoppable names that can do no wrong, you could run the risk of overpaying. In this piece, we’ll look at candidates that actually have the power to level up their fundamentals at the hands of more powerful AI. While some names might be getting up there in price, I still think there’s far less hype compared to some of the more obvious winners at the lower levels of the AI stack.
Amazon If embodied AI really is the next big leap, Amazon (NASDAQ:AMZN | AMZN Price Prediction) could be the Magnificent Seven name to own. Arguably, the company is already in the fast lane when it comes to rolling out the fleet of robotic laborers in the warehouse. As Amazon looks to automate everything from coding to delivery itself, I see the company as having the most ground to gain on the operating margin front.
The company isn’t just exploring possibilities, it’s putting physical AI to work. And with $200 billion in CapEx for the year, Amazon is spending a bit more than its Mag Seven peers. Once the script flips and investors start pounding the table for more, not less, CapEx, I think Amazon is poised to shine bright. Beyond physical AI, Amazon also has a strong horse in the AI chip race with silicon like Trainium and Inferentia.
Add AWS and the satellite connectivity growth engines into the equation, and I think Amazon stock is one of the bargains hiding in plain sight as the AI boom gets physical. The stock goes for just 32.1 times trailing price-to-earnings (P/E) right here despite soaring 35% in the past three months.
Walmart In case you missed it, Walmart (NASDAQ:WMT) is now on the Nasdaq because it is, in fact, becoming more and more like an AI tech play by the day. Like Amazon, Walmart’s a massive retailer that’s been betting big on the rise of warehouse robots.
The company’s Symbiotic (NASDAQ:SYM) stake makes Walmart a firm that will not be left behind as warehouse automation becomes one of the next big sources of operating margin gains. The efforts and big bet in physical AI aren’t just to please Wall Street, though. The firm is cutting away at fulfillment costs, and I think the market might still be underestimating a company that’s already shown it can successfully pivot in the new era of retail.
Of course, the 44.0 times forward P/E multiple is getting a bit steep. Unlike Amazon, the retailer isn’t pouring $200 billion in CapEx for the year. And with its physical retail presence and grocery exposure acting as a huge moat source, especially in this inflationary environment, perhaps investors are right to reward Walmart in this climate. In short, it’s a defensive that’s also going on the offensive on AI.
Symbotic's diversification efforts, including the Fox Robotics acquisition and the Exol JV, aim to reduce customer concentration with Walmart and to penetrate new verticals such as perishables. SYM's Next Gen Storage should increase the company's long-term gross margins to +30%. Accelerating deployment velocity and cross-selling Fox's customer base position SYM as a full-site automation provider with higher-margin SaaS and services revenue.
In our first article of the year, we spoke about how robotics was at the cusp of a period of rapid expansion. We're now almost halfway through 2026 and everything continues to point in that direction.
Everyone is still glued to Tesla (NASDAQ:TSLA | TSLA Price Prediction) because a Q1 earnings beat, the robotaxi pitch, and the Optimus humanoid tease have convinced retail traders the autonomy story finally pays off this year.
The Tesla Trade Is Crowded and Priced for a Miracle Tesla carries a P/E of 406 and a free cash flow yield of 0.40%, valuations that only make sense if humanoid robots and driverless taxis ship at scale soon. The fundamentals say otherwise. FY2025 net income fell 46.79%, and Q4 2025 vehicle deliveries dropped 16% year over year. The Q1 2026 print looked clean on the surface (EPS of $0.41 against a $0.3592 estimate) but revenue grew just 15.78%, energy revenue declined 12% year over year, vehicle inventory expanded to 27 days from 22, and operating expenses ballooned 37% on AI spending and CEO stock comp. Tesla also booked $222 million in digital asset losses for good measure.
Prediction markets are even more blunt. Polymarket traders priced the odds of a public driverless robotaxi service launching by June 30, 2026 at essentially zero, with the “Yes” contract resolving against a last trade of 0.999 on “No.” The shares are down 8.83% year to date. The automotive business is the drag the automation narrative keeps trying to outrun.
The Robotics Bet Already Generating Revenue The smarter robotics exposure is Symbotic (NASDAQ:SYM), the warehouse automation builder behind some of the largest distribution centers in North America. Three reasons it deserves the spot Tesla currently occupies in retirement portfolios.
One: a real, contracted backlog. Symbotic carries a contracted backlog of $22.70 billion, signed business that translates into multi-year revenue visibility. Q2 FY2026 revenue rose 23.1% year over year to $676.48 million, with 70 systems deployed against 46 a year earlier.
Two: a real profitability inflection. Adjusted EBITDA more than doubled year over year to $77.75 million, gross margin expanded to 22.2% from 20.2%, and GAAP net income swung positive. Q1 FY2026 adjusted EBITDA nearly quadrupled year over year to $66.90 million. Management guided Q3 revenue to $700 million to $720 million with adjusted EBITDA of $80 million to $85 million.
Three: real customers writing real checks. The GreenBox joint venture with SoftBank offers warehouse-as-a-service against a $500 billion outsourced warehousing total addressable market, anchored by a roughly $11 billion contract. A commercial agreement with Nueva Wal Mart de México and the acquisition of Walmart’s Advanced Systems and Robotics business broaden the deployment pipeline.
For perspective on what a mature robotics franchise looks like, Intuitive Surgical (NASDAQ:ISRG) compounded surgical robot installations into a TTM revenue base of $10.58 billion and a forward P/E of 43. Symbotic is following that template earlier, with deployments scaling and unit economics improving each quarter.
Shares of Symbotic are down 20.92% year to date, even with the operational progress, which is how contrarian setups usually begin.
The automation company already shipping the future is worth studying alongside Tesla’s 2027 promises, at 70 systems and counting.
Symbotic Inc. (SYM - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned -21% over the past month versus the Zacks S&P 500 composite's +4.6% change. The Zacks Technology Services industry, to which SYMBOTIC INC belongs, has lost 1.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, SYMBOTIC INC is expected to post earnings of $0.12 per share, indicating a change of +340% from the year-ago quarter. The Zacks Consensus Estimate has changed -12% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.5 points to a change of -72.5% from the prior year. Over the last 30 days, this estimate has changed -32%.
For the next fiscal year, the consensus earnings estimate of $0.63 indicates a change of +25.8% from what SYMBOTIC INC is expected to report a year ago. Over the past month, the estimate has changed +3.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SYMBOTIC INC is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For SYMBOTIC INC, the consensus sales estimate for the current quarter of $714.76 million indicates a year-over-year change of +20.7%. For the current and next fiscal years, $2.79 billion and $3.62 billion estimates indicate +24.1% and +30% changes, respectively.
Last Reported Results and Surprise HistorySYMBOTIC INC reported revenues of $676.48 million in the last reported quarter, representing a year-over-year change of +23.1%. EPS of $0.44 for the same period compares with -$0.04 a year ago.
Compared to the Zacks Consensus Estimate of $660.6 million, the reported revenues represent a surprise of +2.4%. The EPS surprise was +300%.
Over the last four quarters, SYMBOTIC INC surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
SYMBOTIC INC is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SYMBOTIC INC. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
NVIDIA CEO Jensen Huang has called humanoid robots and labor automation a $40 trillion total addressable market, and on the Animal Spirits podcast, Derek Yan argued physical AI is “potentially bigger” than EVs or smartphones, with Waymo serving as live proof the underlying autonomy stack already works in the wild. Capital is rotating into this trade now, before the broader market has priced it in.
Here are the five stocks I’m watching, starting with the name almost nobody on retail Twitter is yelling about.
1. Cognex (CGNX): The Eyes Behind Every Robot Robots without vision are paperweights. Cognex (NASDAQ:CGNX | CGNX Price Prediction) is the machine-vision standard for factory floors and warehouses, and in Q1 it shipped the In-Sight 6900 AI vision platform powered by NVIDIA alongside the In-Sight 3900 powered by Qualcomm. That’s the company plugging itself directly into Jensen’s Isaac and Cosmos stack at the edge, exactly where humanoid and industrial robots need to see, sort, and decide in real time.
The numbers tell you Wall Street is already on it quietly. Q1 FY26 revenue hit $268.44 million, up 24.3% year over year, with adjusted EPS of $0.34, beating the $0.25 estimate, and Q2 guidance points to adjusted EPS of $0.40 to $0.44, roughly 68% year-over-year growth at the midpoint. The stock is up 86% year to date as I write this, and the chart looks like a setup that the rest of the market hasn’t fully understood yet.
CEO Matt Moschner put it bluntly: “Our latest AI vision products reinforce our technology leadership and objective of becoming the #1 provider of AI-powered machine vision.” If Cognex supplies the eyes, somebody supplies the brain.
2. NVIDIA (NVDA): The Brain You knew this name was coming. NVIDIA (NASDAQ:NVDA) is the operating system of physical AI: the DRIVE Hyperion partnerships across Hyundai, Kia, Uber, BYD, Geely, Isuzu, and Nissan, the Isaac GR00T humanoid foundation model, and Cosmos world models for synthetic training data. I’ve owned this stock for over 15 years, and the pivot from gaming GPUs to the central nervous system of the robotics economy is the most aggressive platform expansion I’ve seen from any company in my career.
On the most recent call, Huang told investors NVIDIA has “line of sight to projects requiring tens of gigawatts of NVIDIA Corporation AI infrastructure in the not-too-distant future” and said “billions of robots, hundreds of millions of autonomous vehicles, and hundreds of thousands of robotic factories and warehouses will be developed.” Data Center revenue ran $39 billion, up 73% year over year, and Q2 guidance came in at $45 billion at the midpoint.
The street is still constructive: 48 Buy and 10 Strong Buy ratings against just 1 Sell, with an analyst target of $295.69 versus the current $212.60. Polymarket traders are pricing a 0.65 probability NVIDIA hits $216 in June, with upside scenarios into the $240 range. The compute is in place. Now somebody has to put it on wheels.
3. Tesla (TSLA): The Robot Company Disguised as a Car Company Elon Musk is building Tesla into a robotics company in plain sight. Tesla (NASDAQ:TSLA) is the most vertically integrated physical-AI bet in public markets: Optimus humanoids, FSD, Robotaxi, Cybercab, Megapack, and the only real-world fleet generating training data at scale. Optimus production lines are being installed at Fremont (designed for 1 million robots per year) with a second-gen line at Gigafactory Texas designed for 10 million robots per year.
Q1 FY26 delivered revenue of $22.39 billion, up 15.8% year over year, with non-GAAP EPS of $0.41 versus a $0.36 estimate and auto gross margin expanding to 21.1% from 16.2%. The really interesting number: FSD active subscriptions hit 1.28 million, up 51% year over year. That’s a software annuity layered on top of a hardware business that’s already throwing off cash.
Prediction markets are skeptical on near-term Optimus and California robotaxi timelines, with Polymarket pricing only a 0.11 probability of a California robotaxi launch by June 30. That gap between Huang’s $40 trillion thesis and traders’ short-window pricing is exactly where asymmetric returns get made. Big trucks and big factories are where this thesis pays first.
4. Symbotic (SYM): Where Physical AI Is Already Cashing Checks Forget the demo videos. Symbotic (NASDAQ:SYM) already runs end-to-end robotic warehouse systems for Walmart and a growing roster of retailers, with the SoftBank-backed Exol joint venture targeting the warehouse-as-a-service market. This is the rare physical-AI play with revenue that scales as humans get pulled out of fulfillment centers.
Q2 FY26 revenue came in at $676.48 million, up 23.1% year over year and beating consensus. Three numbers matter from this report: 70 active systems in deployment (up from 46 a year ago), adjusted EBITDA of $77.75 million, more than doubling year over year, and a contracted backlog around $22.70 billion. That backlog is multiple years of revenue locked in regardless of macro chop.
CEO Rick Cohen said “customers across several verticals are now realizing tangible value from our end-to-end automation systems”, and retail still has no idea this exists. Reddit chatter shows just 1 qualified mention per tracking period, with a brief bullish sentiment score of 68 appearing only once. The biggest names are deploying systems in stockrooms. The last mile is a different animal entirely.
5. Serve Robotics (SERV): The Punchline And here’s the payoff. Serve Robotics (NASDAQ:SERV) is the pure-play physical-AI small cap that almost nobody is talking about, and its Gen3 sidewalk robot runs on NVIDIA Jetson Orin compute. After the Diligent Robotics acquisition, Serve now operates sidewalk delivery robots and Moxi hospital robots across 44 cities in 14 states, with roughly 2,000 outdoor robots and over 100 hospital robots in service. This is Waymo’s proof-of-concept applied to the last mile and the hospital corridor.
Q1 FY26 revenue was $2.98 million, up roughly 578% year over year, with management reaffirming ~$26 million in 2026 revenue, roughly 10x fiscal 2025’s $2.7 million. Daily active robots jumped to 812 from 73 a year ago. CEO Ali Kashani framed it directly: “We are leading the development of Physical AI in the real world, operating across multiple physical domains while building towards a unified autonomy platform.” The target is a sub-$1 per delivery cost versus $8 to $10 with human couriers in what management frames as a $450 billion robotic and drone delivery opportunity by 2030.
The stock is down 15% year to date, sitting at a $8.84 market price against an $18.45 analyst target with 8 Buy ratings and zero Holds or Sells. That’s the asymmetric setup. If Huang and Musk are even half-right about robots replacing labor at scale, a $750 million market cap on a company already deploying autonomous fleets in dozens of cities is the kind of mispricing that doesn’t last.
The Trade Vision (CGNX), compute (NVDA), vehicles and humanoids (TSLA), warehouses (SYM), last-mile autonomy (SERV). That’s the full stack of Huang’s $40 trillion thesis, in order of how the capital flows. Trillion-dollar CEOs are directing billions into this right now, before consensus catches up. The window between “quietly loading up” and “crowded trade” is closing.
Key Takeaways Serve Robotics expanded its delivery network to 44 cities as fleet size grew 7x year over year.SYM grew software revenues 93% and expanded to 70 active systems in fiscal Q2 2026.Symbotic maintained profitability and ended the quarter with more than $2B in cash and no debt. Autonomous robotics is rapidly becoming one of the most important themes shaping the future of logistics, fulfillment and physical AI, and companies like Serve Robotics Inc. (SERV - Free Report) and Symbotic Inc. (SYM - Free Report) are emerging as key players driving this transformation. From navigating crowded sidewalks to orchestrating increasingly complex warehouse operations, robotics companies are racing to build scalable autonomy platforms capable of operating safely and reliably in real-world, human-centered environments.
While businesses look to improve operational efficiency, automate repetitive workflows and strengthen supply-chain capabilities, investors are increasingly turning their attention toward companies positioned at the center of this shift.
While Serve Robotics is focused on autonomous sidewalk delivery, healthcare automation and expanding its multi-domain robotics platform, Symbotic is building end-to-end warehouse and supply-chain automation systems powered by advanced robotics, software and AI-driven orchestration technologies. Both companies are leveraging proprietary data, autonomy stacks and next-generation robotics platforms to expand their commercial opportunities across logistics and fulfillment markets.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for Serve Robotics StockServe Robotics is expanding its autonomous delivery network as the adoption of sidewalk robotics increases across urban markets. The company reported that its deployed fleet became 7x larger year over year in the first quarter of 2026, while daily active robots increased 10x over the same period. Delivery activity also improved as robot supply hours climbed 13x year over year, supported by expansion into additional cities and broader merchant coverage. The company now operates across 44 cities and 14 states, reflecting continued progress in scaling its delivery footprint.
The company is also broadening its business beyond food delivery operations. Software services represented nearly one-third of total first-quarter activity, while recurring revenues accounted for just under half of the overall business. Serve Robotics is additionally expanding into healthcare automation through Diligent Robotics, giving it exposure to hospital workflows and indoor robotics applications. The company believes operating across multiple environments strengthens its autonomy platform and improves long-term data collection and AI development.
However, operating losses remain elevated as Serve Robotics continues investing aggressively in autonomy, software infrastructure and platform expansion. Gross margins stayed deeply negative during the quarter as the company supported a significantly larger fleet and integrated healthcare operations. The company also expects slower growth during the second quarter while focusing on improving robot utilization, operational efficiency and market coverage rather than deploying additional robots immediately.
Looking ahead, Serve Robotics expects stronger utilization, broader delivery platform integrations and expansion into new cities to support growth through the second half of 2026. The company is also exploring international opportunities and additional software commercialization initiatives as it continues building a larger multi-domain robotics platform.
The Case for Symbotic StockSymbotic is benefiting from rising demand for warehouse automation as retailers and distributors focus on improving supply-chain efficiency and fulfillment speed. In the second quarter of fiscal 2026, the company expanded its deployment base to 70 active systems after initiating 14 new deployments during the period. Systems revenues increased 24% year over year, while software revenues climbed 93%, supported by a growing number of operational sites generating recurring activity. The company also maintained GAAP profitability and ended the quarter with more than $2 billion in cash and no debt.
Broader adoption of automation solutions is supporting expansion beyond traditional warehouse systems. Symbotic is investing in e-commerce fulfillment, dock management, route optimization and next-generation robotics capabilities to improve warehouse productivity. The company is also developing larger robots capable of handling a wider mix of inventory and improving throughput efficiency. Interest from industries including apparel, healthcare and food service is increasing as customers seek more integrated automation platforms.
However, deployment timing and project mix continue creating operational variability. System completions remain affected by lower deployment starts from prior years, while installation timelines can fluctuate depending on site complexity and customer requirements. Investments tied to supplier capacity, robotics development and new technologies also remain elevated as the company continues expanding its automation platform across additional use cases.
Looking ahead, Symbotic expects demand for supply-chain automation to support further deployment growth and broader customer adoption. Expansion into international markets, additional software integration opportunities and increasing use of next-generation robotic systems are expected to strengthen the company’s long-term positioning across warehouse and logistics automation.
Stock Performance & ValuationAs witnessed from the chart below, in the year-to-date period, Serve Robotics' share price performance has stood below that of Symbotic.
Image Source: Zacks Investment Research
Considering valuation, Serve Robotics is currently trading at a premium compared with Symbotic on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends of SERV & SYMThe Zacks Consensus Estimate for SERV’s 2026 loss per share has widened to $2.64 in the past 30 days, as shown below. Also, the estimated figure indicates a wider loss from the year-ago estimated loss of $1.63 per share.
SERV's EPS Trend
Image Source: Zacks Investment Research
Symbotic’s earnings estimates for fiscal 2026 have increased in the past 30 days to 50 cents per share. This indicates expected earnings decline of 72.5% year over year.
SYM’s EPS Trend
Image Source: Zacks Investment Research
Which Stock Has More Upside Now?Serve Robotics and Symbotic both offer exposure to the growing robotics and automation market, but both companies are positioned very differently from a risk and execution standpoint. Serve Robotics is targeting a large long-term opportunity in autonomous delivery and healthcare robotics, supported by rapid fleet expansion, improving utilization trends and growing platform integrations. However, the company remains in an early-stage scaling phase, with elevated operating losses and continued execution risk tied to expansion and commercialization efforts.
Symbotic offers a more established automation platform with stronger operational scale, recurring software growth and a profitable business model supported by large enterprise customers. The company is also benefiting from rising warehouse automation demand, expanding deployment activity and broader adoption of next-generation robotics solutions across supply-chain operations.
With both stocks currently carrying a Zacks Rank #3 (Hold), Symbotic appears better positioned for investors seeking a more balanced risk-reward profile at this stage, supported by stronger financial stability and a more mature operating platform. Serve Robotics still offers higher long-term upside potential if autonomous delivery adoption accelerates further, but the stock also carries materially higher operational and profitability risks.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
