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The first Gripen fighter jet assembled in Brazil, christened by Brazilian President Luiz Inacio Lula da Silva during Embraer and Swedish defence company Saab's presentation, at the Gaviao... Purchase Licensing Rights, opens new tab Read more

GAVIAO PEIXOTO, Brazil, March 25 (Reuters) - Swedish defense firm Saab (SAABb.ST), opens new tab is pressing on with a campaign to sell its Gripen fighter jets to Peru despite political turbulence and signs the ​country was leaning toward the competing F-16 made by Lockheed Martin (LMT.N), opens new tab.

Saab Chief Executive ‌Micael Johansson said on Wednesday the company had made a "cost-efficient and competitive" offer to Peru and was in close contact with the country's air force.

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After a 2014 deal to sell 36 aircraft to Brazil, Saab has ​long viewed Peru as a potential Gripen customer alongside Colombia, which placed an order ​last year.

"Since these decisions are on a political level, when things are a ⁠bit turbulent you may get sort of a pause or hibernation on the process," ​Johansson told reporters on the sidelines of an event introducing the first Gripen assembled in Brazil.

PRESIDENTIAL TURNOVERSince ​2018, Peru has cycled through a rapid succession of presidents, exposing fissures between the executive branch and Congress.

Last month, Congress ousted President Jose Jeri over a corruption scandal only four months into his term and just ​before elections scheduled for April 12. Lawmaker Jose Balcazar has been serving as interim president.

Johansson said ​that Peru had taken decisions toward funding a fighter jet program.

"Now it's more about how do they ‌launch it, ⁠and of course it's a competition, so they have to select. But we are still campaigning in Peru, definitely," the executive noted.

The U.S. State Department said last year it approved the potential sale of F-16 aircraft and related elements of logistics and program support to Peru in ​a deal estimated at $3.4 ​billion.

Peru's government said last ⁠week that the process had not yet concluded, following media reports it had selected the F-16.

PRODUCTION SITES, TWO-SEAT VERSIONJohansson said Saab did not ​expect to expand its Gripen manufacturing footprint significantly beyond its existing ​sites in Sweden ⁠and Brazil.

"I think Sweden, Brazil and maybe one more," he said. "If Canada selects to go dual-fleet and not only (Lockheed's) F-35, Canada might be that country."

The CEO reiterated Saab expects its production line ⁠at ​Brazilian planemaker Embraer's (EMBJ3.SA), opens new tab Gaviao Peixoto plant in Sao Paulo state ​to serve as an exporting hub.

Johansson also said Saab plans to roll out the Gripen F, a two-seat version ​of the fighter, in Sweden in June.

Reporting by Gabriel Araujo; Editing by Brad Haynes and Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Gabriel is a Sao Paulo, Brazil-based reporter covering Latin America's financial and breaking news from the region's largest economy. A graduate of the University of Sao Paulo, joined Reuters while in college as a Commodities & Energy intern and has been with the firm ever since. Previously covered sports - including soccer and Formula One - for Brazilian radios and websites.

Conditions continue to be favorable and all business areas saw double-digit sales growth in the quarter, but it warned it faces constrained supply.

, /PRNewswire/ -- The two-seat fighter, developed in partnership with Brazilian industry, accelerates training and enhances operational performance.

On 2 June Saab had a rollout of the first Gripen F fighter to the Brazilian Air Force during a ceremony held at Saab´s facilities in Linköping, Sweden.

Gripen F is the two-seat variant of the Gripen E series and has been developed to meet the training and operational requirements of modern air forces by combining conversion training and combat capability on the same platform.

As the launch customer, Brazil played an active role in the co development of the two-seat variant, enabling direct industrial participation and long-term cooperation. Through an extensive transfer-of-technology programme, Brazil has trained hundreds of engineers and technicians while strengthening the advanced design and development expertise within its national industrial base.

"The rollout of Gripen F represents a shared achievement between Saab, Brazilian industry and the Brazilian Air Force, reflecting the deep trust we have built together over many years. Developing this aircraft together demonstrates the maturity of this collaboration. It represents not only a highly capable fighter for the Brazilian Air Force, but also the tangible outcome of sustained joint development and shared ambition," says Lars Tossman, head of Saab's business area Aeronautics. 

Designed for an era of rapid transformation, Gripen F delivers world-class performance, sensors, and revolutionary architecture, mirroring Gripen E. The addition of a fully independent second cockpit enables instructor-guided missions in a fully operational fighter, giving trainee pilots realistic live mission conditions. Consequently, pilot conversion and preparatory training can be dramatically accelerated compared to conventional time, while enhancing operational effectiveness in high-threat environments through shared workload and improved mission command.

Before final delivery to the Brazilian Air Force the aircraft will be transferred to Saab's Flight Test Centre in Sweden, where it will start a dedicated flight test campaign.

The 2014 contract with the Brazilian government covers the development and production of 36 fighter aircraft: 28 Gripen E and eight Gripen F. Deliveries began in 2020 and to date 11 aircraft have been handed over. Saab has also received Gripen F orders from Thailand and Colombia. 

Contact

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Saab is a leading defence and security company with an enduring purpose, to help nations keep their people and society safe. Empowered by its 28,000 talented people, Saab constantly pushes the boundaries of technology to create a safer and more sustainable world. Saab designs, manufactures and maintains advanced systems in aeronautics, weapons, command and control, sensors and underwater systems. Saab is headquartered in Sweden. It has major operations all over the world and is part of the domestic defence capability of several nations.

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Saab is rated a buy, with a $64.74 price target and 15% upside potential based on 2027 earnings expectations. Backlog visibility is strong, with 84% of 2026 and over 70% of 2027 expected revenues already booked, driven by short-cycle work. Q1 sales grew 21.4% and EBIT rose 32%, but free cash flow is pressured by elevated capital expenditures and ongoing ramp-up investments.

A logo of Embraer is seen at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 17, 2025. REUTERS/Benoit Tessier Purchase Licensing Rights, opens new tab

SAO JOSE DOS CAMPOS, Brazil, June 10 (Reuters) - Brazilian planemaker Embraer (EMBJ3.SA), opens new tab ​has no plans to develop ‌a fighter jet, CEO Francisco Gomes Neto told reporters on Wednesday, adding the ​company was satisfied with its ​partnership with Sweden's Saab (SAABb.ST), opens new tab in the ⁠segment.

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Embraer and Saab unveiled in March ​the first Gripen assembled at Embraer's ​Gaviao Peixoto plant as part of a contract with Brazil.

Gomes Neto said the plant ​could support production for new ​sales Saab eventually makes in South America ‌and "maybe ⁠even in other countries, if they need additional capacity."

Brazil has expressed interest in purchasing 20 additional Gripen jets, ​according to ​Sweden.

Embraer ⁠focused on products such as military cargo jet C-390 ​Millennium and light attack aircraft ​Super ⁠Tucano.

Gomes Neto spoke after the of a flagship Franco-German fighter jet ⁠project.

Fellow ​planemaker Airbus (AIR.PA), opens new tab is increasingly looking ​to Saab as a preferred future partner, Reuters ​reported, citing sources.

Reporting by Gabriel Araujo

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Gabriel is a Sao Paulo, Brazil-based reporter covering Latin America's financial and breaking news from the region's largest economy. A graduate of the University of Sao Paulo, joined Reuters while in college as a Commodities & Energy intern and has been with the firm ever since. Previously covered sports - including soccer and Formula One - for Brazilian radios and websites.

The past few months haven't been kind to SoundHound AI (SOUN +3.93%) shareholders. The company posted record revenue in the first quarter, but that wasn't enough to offset concerns about its pending acquisition of another company.

As of this writing, shares are down roughly 29% over the last six months. The good news is that if SoundHound successfully integrates that acquisition into its business, its momentum could be reignited, sending the stock price higher.

Image source: Getty Images.

A wise purchase or a risky gamble? The company that SoundHound is looking to buy (at an equity value of $43 million) is LivePerson (LPSN +1.92%) -- it believes the target's digital engagement suite will complement its current business. SoundHound's focus and strength are in audio-enabled artificial intelligence (AI), which it can use to embed its tech in everything from vehicles to restaurant drive-thrus. LivePerson operates primarily through messaging with its AI agents, such as answering a question in a chat box on a website or sending a reminder via text message.

If the acquisition closes as expected in the second half of this year, SoundHound plans to cross-sell products, opening a potentially significant new revenue source; in 2025, LivePerson generated $243.7 million in revenue, while SoundHound generated just under $169 million.

It sounds like a good fit on paper, but there are two issues that investors seem worried about with this deal. One is that SoundHound is paying for LivePerson and settling the target's outstanding debt with its own stock, which dilutes SoundHound shareholders. That can create short-term pressure, but it could be resolved so long as this deal provides long-term value.

That potential long-term value, however, is the other issue weighing on the stock. LivePerson reported a net loss of more than $67 million in 2025, and SoundHound itself is unprofitable. That means one unprofitable company will have to successfully integrate into its operations another unprofitable company that has been struggling for years.

The long-term outlook for SoundHound

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SoundHound expects LivePerson to add $100 million to its revenue in 2027, bringing the total to between $350 million and $400 million. SoundHound currently has no debt and expects to be debt-free after the acquisition.

At the time of its Q1 report, management reiterated its forecast for 2026 revenue of between $225 million and $260 million, so hitting the upper end of that $400 million range in 207 would require a solid jump. The company will still have to work on profitability, but it's still a growth stock in an aggressive expansion phase for now. That's going to create a lot of short-term volatility. In order for the stock price's momentum to improve over the rest of the year, there would either need to be a broad market rally for the stock to get swept up in, or SoundHound would need to boost its 2026 revenue guidance in one of its next earnings reports.

Over the longer term, if SoundHound can successfully integrate LivePerson into its operations, the deal could add meaningful value to the company. It's still liable to remain a volatile stock, however. So even if you're among the most aggressive of investors and (after weighing the risks and potential rewards) you want to add it to your portfolio, you'd be best advised to make it a relatively small position.

Finding a dirt-cheap stock, loading up on shares, and having a meager investment transform into $1 million is a dream of many investors. While many stocks promise to fulfill this lofty goal, I think there's one $8 stock that could make it happen: SoundHound AI (SOUN +3.93%).

SoundHound AI trades for a little more than $8, but I believe it could lead to phenomenal returns over the next few years as its vision takes shape.

Image source: Getty Images.

SoundHound AI could be a major player in AI SoundHound AI combines audio recognition technology with AI, allowing it to automate several tasks that humans normally do. It has already successfully deployed its technology in a few key areas, such as restaurant automation. If you've had an order taken by an AI agent at a drive-thru, chances are high that it was SoundHound AI's technology powering that interaction. While the fast food market isn't a huge space, there are much larger industries with armies of customer service agents that SoundHound AI could automate.

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Finance, healthcare, and insurance are some of the major targets, and SoundHound AI already has deals with several of them to explore integrating its product into its clients' systems. To support this, it rolled out OASYS, which helps the AI interact with itself and improve in real time to tackle new situations it's encountering. That's a major development, and could be a piece of the puzzle that SoundHound AI needs to become a millionaire-maker stock.

What exactly needs to happen to turn this $8 stock into a $800 stock? The biggest thing is to continue growing its business at a steady pace. In Q1, its revenue rose at a 52% clip. That's a solid growth rate for SoundHound AI, but it needs to keep that up over several years to deliver 100x returns. Over that time frame, SoundHound AI also needs to generate a profit. It shouldn't surprise investors that it's currently highly unprofitable, as it's spending every penny it can to innovate and develop a platform that can automate several roles. In Q1, its operating loss was nearly $23 million compared to $44 million in revenue. That means it's spending about 50% more than it's bringing in the door, which is unsustainable.

If SoundHound AI can grow into a major market opportunity, achieve profitability, and sustain its rapid growth rate over the next decade, it could deliver millionaire-maker returns. However, there's no guarantee of success, as another AI competitor could easily tackle this market sector and be a major competitor. Time will tell where SoundHound AI ends up, but I think it's worth a small investment to see what happens.

Keithen Drury has positions in SoundHound AI. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

Shareholders should contact the firm immediately as there may be limited time to enforce your rights. 

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of SoundHound AI, Inc. (NASDAQ: SOUN) breached their fiduciary duties to shareholders.

If you currently own SoundHound stock and are a long-term shareholder, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more about your legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or [email protected] or [email protected].

Why Your Participation Matters:

Shareholder involvement can help improve a company's policies, practices, and oversight mechanisms to create a more transparent, accountable, and effectively managed organization, which can enhance shareholder value.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:
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SoundHound AI, Inc. (SOUN - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -16.8%, compared to the Zacks S&P 500 composite's +5.5% change. During this period, the Zacks Computers - IT Services industry, which SoundHound AI falls in, has gained 4.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

SoundHound AI is expected to post a loss of $0.05 per share for the current quarter, representing a year-over-year change of -66.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -31%.

For the current fiscal year, the consensus earnings estimate of -$0.18 points to a change of -38.5% from the prior year. Over the last 30 days, this estimate has changed -22.3%.

For the next fiscal year, the consensus earnings estimate of $0.17 indicates a change of +6.7% from what SoundHound AI is expected to report a year ago. Over the past month, the estimate has changed +240%.

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, SoundHound AI is rated Zacks Rank #4 (Sell).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of SoundHound AI, the consensus sales estimate of $52.61 million for the current quarter points to a year-over-year change of +23.3%. The $233.14 million and $270.1 million estimates for the current and next fiscal years indicate changes of +38% and +15.9%, respectively.

Last Reported Results and Surprise HistorySoundHound AI reported revenues of $44.19 million in the last reported quarter, representing a year-over-year change of +51.7%. EPS of -$0.06 for the same period compares with -$0.06 a year ago.

Compared to the Zacks Consensus Estimate of $42.71 million, the reported revenues represent a surprise of +3.48%. The EPS surprise was -20%.

Over the last four quarters, SoundHound AI surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

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.

SoundHound AI is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SoundHound AI. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.

SoundHound AI is a speculative buy for risk-tolerant investors, given its unique position in enterprise voice AI and automation trends. SOUN's rapid revenue growth and strategic LivePerson acquisition offer significant upside, but deep operating losses, governance concerns, and heavy dilution temper conviction. The LivePerson deal could be transformative, unlocking access to 18,000 enterprise customers and potentially $100M+ in incremental revenue by FY27 if integration succeeds.

SANTA CLARA, Calif., June 10, 2026 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and agentic AI, has been recognized as the overall Leader in the 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers.

As well as being named as the overall Leader, SoundHound secured a Leader designation in every specific category assessed, including Product Experience, Capability, Platform, and Customer Experience. According to the report, leaders in the latter, “best communicate commitment and dedication to customer needs.”

“Being recognised as the overall Leader in ISG Research across all categories — especially Customer Experience — reflects our team's relentless dedication to solving real-world problems for our major enterprise clients,” said Mike Zagorsek, Chief Operations Officer at SoundHound AI. “As businesses increasingly look to deploy fully autonomous AI agents, SoundHound’s new OASYS platform is uniquely positioned to handle the complexities, transactions, and natural conversations that modern enterprises demand."

The research is an evaluation of software providers across key capability areas, including platform architecture, NLP accuracy, generative and agentic AI integration, workflow execution, analytics and insights, governance and security controls, communication administration and enterprise integration.

"The shift toward artificial intelligence-enabled software is transforming how enterprises interact with data, systems and users," said David Menninger, Executive Director and Distinguished Analyst, ISG Research. "Conversational AI platforms support information access, task execution and guided workflows. SoundHound AI was rated the Overall Leader in the 2026 ISG Conversational AI Emerging Providers Buyers Guide."

According to the report, ISG Research defines conversational AI as technology that enables users to interact with systems through natural language, using natural language processing (NLP), large language models (LLMs) and generative AI (GenAI) to interpret intent, provide responses and execute actions. Conversational AI supports information access, task execution and guided workflows across enterprise environments, improving productivity by reducing reliance on structured navigation and manual processes. These capabilities are increasingly embedded into enterprise applications, enabling conversational interfaces to function as both engagement and execution layers.

OASYS

OASYS is SoundHound AI's new category-defining agentic platform, and the world's first self-learning AI system where AI builds AI. Unlike traditional build-and-deploy approaches that demand constant manual upkeep, OASYS autonomously creates, orchestrates, evaluates, and improves entire fleets of conversational AI agents — enabling businesses to do in minutes what once took months. The platform continuously refines itself based on real-world usage, so businesses get smarter and more efficient AI over time without the maintenance burden.

OASYS also enables enterprises to meet customers and employees wherever they are. Agents built on the platform can be deployed seamlessly across phones, web chat, in-store kiosks, drive-thrus, social media, smart TVs, and in-vehicle infotainment – maintaining context across channels, devices, and languages throughout every interaction. Backed by enterprise-grade guardrails and SoundHound's patented Human Assisted Resolution (HAR) technology, OASYS handles everything from complex insurance claims and retail orders to prescription refills and outbound customer engagement, delivering fluid, conversational experiences that get better the more they're used.

Learn more about OASYS here: https://www.soundhound.com/voice-ai-blog/meet-oasys/

Read the full report: https://www.soundhound.com/isg-buyers-guide-conversational-ai-emerging-providers-2026/

About SoundHound AI
SoundHound AI (Nasdaq: SOUN) is a voice and agentic AI company that enables businesses to deliver natural, end-to-end conversational experiences across digital and physical channels, including phones, kiosks, chat, smart devices, drive-thrus, TVs, in-vehicle, and more. Its agentic platform, OASYS, is a self-learning, orchestrated AI system where organizations can build and deploy conversational AI agents to handle transactions, tasks, and workflows on behalf of customers and employees. Built on proprietary technology backed by 400+ patents and years of AI research, SoundHound serves leading brands across industries including automotive, financial services, healthcare, retail, telecommunications, and more. It powers millions of products and processes billions of interactions annually for enterprise customers worldwide. Learn more at: www.soundhound.com

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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9d188870-ab1d-4c90-9fb4-46a8d2263dbb

I've been pretty skeptical of SoundHound AI (SOUN +3.93%). Compared with heavy hitters in artificial intelligence (AI) such as Anthropic and OpenAI, the AI-powered voice chatbot company has a small niche and a tiny cash balance. And yet it somehow still has a $3 billion market cap, although that's fallen more than 60% from its 2025 high.

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Over the last few quarters, though, I've started to rethink my bearish position on SoundHound. The company has been executing well, and against all odds, it seems to be making headway. Here's why I think SoundHound might be worth a second look for AI investors.

The bear case SoundHound is essentially combining an old technology (voice recognition) with a very new one (AI).

Image source: Getty Images.

Phone voice recognition systems predate Apple's Siri and Amazon's Alexa, which debuted in 2010 and 2014, respectively. SoundHound's major innovation was developing voice recognition technology that performs better in environments with heavy background noise, making it a favorite of drive-thrus and in-car audio systems.

The company opened a new market by expanding its agentic AI restaurant ordering systems from drive-thru windows to phone systems, which are used today by major chains like White Castle, Chipotle, Five Guys, Panda Express, and Applebee's. It also provides in-car voice systems for Kia, Hyundai, Lucid, and all of Stellantis' brands, including Chrysler, Dodge, and Jeep. And in Q1, it signed a global agreement with "a prominent Japanese manufacturer" for its vehicle voice assistant.

But although SoundHound has a solid, growing presence in these niches, they're comparatively easy niches for an AI chatbot to fill. To really unlock major growth, SoundHound needs to expand into general customer service applications, where there are many more potential customers, but also more potential for error. Plus, on a customer service phone line, SoundHound's background noise-reducing technology isn't as important, putting it at greater risk from competitors.

The bull case SoundHound's apparent lack of a proprietary moat worried me at first. But just because a technology is widely used doesn't mean a deep-pocketed competitor will necessarily deploy it in this industry to clear the field.

Image source: Getty Images.

It's no surprise that SoundHound has plenty of competition in this space. An effective agentic AI customer service voice agent platform would have several advantages over human agents beyond cost-effectiveness, including the ability to answer all calls quickly regardless of call volume, 24/7 global availability, multilingual support, and near-instant data retrieval. But it's a very fragmented market with lots of small start-ups operating alongside major players, including Amazon Quick for AWS and Salesforce's Agentforce.

In Q1, SoundHound grew its revenue by 52% year over year to $44.2 million and signed new or expanded deals with at least two dozen customers. It's also been very acquisitive and just agreed to purchase enterprise conversational AI provider LivePerson in April.

If SoundHound can continue to grow its revenue and consolidate market share through new contracts and acquisitions at this pace, it could very easily become a long-term winner. Smart investors should keep an eye on SoundHound.

John Bromels has positions in Amazon, Apple, and Chipotle Mexican Grill. The Motley Fool has positions in and recommends Amazon, Apple, Chipotle Mexican Grill, Salesforce, and SoundHound AI. The Motley Fool recommends Stellantis and recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Short sellers are piling into a wide-ranging group of names, with the latest Benzinga Pro data showing elevated bearish positioning across 10 stocks with short interest ranging from 37% to 87%.

CLSK stock is moving. See the chart and price action here. Top 10 Most Heavily Shorted StocksBelow are the top 10 most heavily shorted stocks (market caps above $2 billion, average 14-day volume above 5 million and free floats above 5 million) based on data from Benzinga Pro as of June 11, 2026:

Closer LookThe Louisiana-based LNG exporter, which went public in January 2025, trades at $12.75 and carries a $31.65 billion market cap. Bears have hammered the stock well off its 52-week high of $19.50.

CleanSpark, Inc. (NASDAQ:CLSK), with 45.74% of float short, closed at $16.17 on Thursday.

Primo Brands Corp. (NYSE:PRMB) sits at 42.33% short interest with shares closing at $23.54.

Luxury home goods retailer RH (NYSE:RH) at 39.62% short closed at $159.82, though it remains well below its 52-week high of $257.

Investors eyeing these stocks should be cautious: Elevated short interest could send these names soaring if a positive catalyst sparks a squeeze, while bad news could send any of them into freefall.

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Stock NewsIEA warns of historic oil disruption: Chevron CVX and Exxon Mobil XOM advanced as the International Energy Agency said Iran’s effective closure of the Strait of Hormuz is driving the largest oil supply disruption on record, with Brent topping $100 and global equities sliding. Source: The Guardian.Live Nation settles Ticketmaster case: Live Nation Entertainment LYV reached a tentative DOJ settlement including up to $280M in fines, divestment of at least 13 amphitheaters and ticketing changes, while a coalition of states plans to keep litigating. Source: PBS NewsHour.U.S. taps SPR amid supply shock: The U.S. will release 172M barrels from the Strategic Petroleum Reserve as part of a record 400M-barrel IEA action, with deliveries staged over ~120 days to refineries; oil prices rose despite the move. Source: CNBC.Atlassian cuts 10% to refocus on AI: Atlassian TEAM will eliminate ~1,600 roles to “self-fund” AI and enterprise sales investments, incurring $225M–$236M in charges while aiming to accelerate profitability. Source: CNBC.Airlines hike fares on fuel spike: United Airlines UAL and peers signaled higher ticket prices as jet fuel costs surge; carriers including Qantas and Cathay Pacific imposed surcharges and warned of potential schedule adjustments. Source: CNBC.War jitters reset rate-cut bets: The SPDR S&P 500 ETF SPY fell as markets priced higher-for-longer inflation and fewer 2026 Fed cuts, with short-end yields climbing amid heightened uncertainty over the Iran conflict’s duration. Source: Atlantic Council.Lucid maps robotaxi and cash-flow path: Lucid Group LCID outlined plans for midsize EVs, subscription software and a “Lunar” robotaxi concept, targeting positive free cash flow late this decade and expanding a tie-up with Uber UBER . Source: CNBC.Energy security push lifts renewables: NextEra Energy NEE and peers are in focus after John Kerry urged faster adoption of renewables and nuclear to cut reliance on fossil-fuel “chokepoints” exposed by the Iran war. Source: The Guardian.Palantir, Nvidia launch ‘sovereign AI’ stack: Palantir PLTR unveiled a reference architecture with Nvidia NVDA to deliver on-prem, sovereign AI infrastructure for governments and critical industries, integrating Palantir’s AIP with Nvidia’s platform. Source: Business Wire.SaaS layoffs tie to SBC discipline: Atlassian (TEAM) and other software firms are cutting headcount as stock-based compensation and AI-driven efficiency pressures push the sector toward tighter financial discipline. Source: Business Insider.Stocks hit 2026 lows as Brent tops $100: Energy names like Chevron (CVX) were among few gainers while the Dow fell 739 points (1.56%) and the S&P 500 and Nasdaq closed at 2026 lows amid Hormuz closures and tanker attacks. Source: CNBC.Stryker hit by Iran-linked cyberattack: Stryker SYK reported a global network disruption affecting its Microsoft environment, with pro-Iran hackers claiming responsibility as authorities assessed impacts on healthcare operations. Source: CNN.Honda scraps 3 U.S.-bound EVs, warns of losses: Honda Motor HMC canceled the Honda 0 SUV, 0 Saloon and Acura RSX EVs, forecasting up to ¥2.5T in losses tied to its strategy reset and shifting focus toward next‑gen hybrids. Source: Honda Newsroom.Rivian’s R2 to debut with $57,990 launch model: Rivian RIVN will start R2 sales this spring with a 330-mile dual‑motor performance “Launch Package,” with less‑expensive trims, including a ~$45,000 version, slated for 2027. Source: CNBC.Fertilizer stocks climb on supply fears: CF Industries CF and peers rallied as the Hormuz standoff threatens key fertilizer flows, stoking concerns of higher farm input costs and food inflation. Source: Investor’s Business Daily.FTC to refund Invitation Homes renters: Invitation Homes INVH will fund $47.2M in refunds to 444,131 consumers after an FTC suit over undisclosed fees and deposit practices, alongside mandated leasing transparency reforms. Source: CBS News.Mortgage rates tick back above 6%: Average 30‑year mortgage rates rose to 6.11% amid war‑driven inflation risks and delayed Fed cuts, pressuring affordability for borrowers at Rocket Companies RKT and peers. Source: Yahoo Finance.xAI wins approval for Mississippi turbines: Regulators okayed 41 gas turbines to power Elon Musk’s Southaven data center amid community backlash over pollution and noise in Entergy ETR territory. Source: The Guardian.U.S. mulls Jones Act waiver: The White House is considering temporarily waiving the Jones Act to ease energy price pressures from shipping disruptions, a move with implications for carriers like Matson MATX . Source: Washington Post.Insurance backstop for Hormuz transits: Chubb CB was named lead underwriter for a U.S.-backed program insuring ships through the Strait of Hormuz as tanker attacks mount and traffic stalls. Source: CNBC.Upcoming EarningsUlta Beauty Inc ULTA will report today after close. Analysts estimate EPS 7.97 and revenue 3,801.61 million.Rubrik Inc RBRK will report today after close. Analysts estimate EPS -0.56 and revenue 342.34 million.ServiceTitan Inc TTAN will report today after close. Analysts estimate EPS -0.41 and revenue 245.48 million.SentinelOne Inc S will report today after close. Analysts estimate EPS -0.18 and revenue 271.15 million.RLX Technology Inc RLX will report tomorrow before market open. Analysts estimate EPS 0.03 and revenue 157.24 million.Upcoming DividendsThe Home Depot Inc HD goes ex-dividend today for $2.33 (yield 2.67%).Chord Energy Corp CHRD goes ex-dividend today for $1.30 (yield 4.13%).Pool Corp POOL goes ex-dividend today for $1.25 (yield 2.44%).Frontline PLC FRO goes ex-dividend today for $1.03 (yield 2.94%).YieldMax PLTR Option Income Strategy ETF PLTY goes ex-dividend today for $0.80 (yield 112.03%).Upcoming IPOsPayPay Corp PAYP is scheduled to list today on NAS. Offer price: TBD. Last price $18.16.Notable Insider TransactionsMedline Inc MDLN — Bcp 8 Holdings Mozart Manager L.l.c., a 10% Owner, reported selling 27,852,986 shares at $40.51 ($1,128.32M total) today.Medline Inc (MDLN) — Bx Mozart Ml-2 Holdco L.p., a 10% Owner, reported selling 27,852,986 shares at $40.51 ($1,128.32M total) today.Medline Inc (MDLN) — Tc Group Cayman Investment Holdings, L.p., a 10% Owner, reported selling 26,105,840 shares at $41.00 ($1,070.34M total) today.Alkami Technology Inc ALKT — General Atlantic Genpar (bermuda), L.p., a Director, 10% Owner, reported buying 2,846,015 shares at $17.77 ($50.57M total) Mar 11.Alkami Technology Inc (ALKT) — General Atlantic Llc, a Director, 10% Owner, reported buying 2,846,015 shares at $17.77 ($50.57M total) Mar 11.Stock RatingsNovartis (NVS) was upgraded by Argus from "hold" to "buy". They now have a $180.00 price target on the stock.Oracle (ORCL) was upgraded by JPMorgan Chase & Co. from "neutral" to "overweight". They now have a $210.00 price target on the stock.Hermes International (HESAY) was upgraded by HSBC Holdings plc from "hold" to "buy".Hermes International (HESAY) was upgraded by Kepler Capital Markets from "hold" to "buy".JPMorgan Chase & Co. (JPM) was upgraded by Zacks Research from "hold" to "strong-buy".Trending DiscussionsJun Suh: Sprouts Farmers Market Inc (SFM) High gross profit (39%) compare to other grocery chains, because it's selling premium organic products Thus much…Kevin: SFL is going up strangely with very little news / reason to do so... there is a $0.20 dividend coming up on 3/12 but that's not enough to explain it.…GuruFocus Stock AnalysisGoldman Sachs Has Fixed the Business; Not the Valuation by Sheraden FrancesOshkosh Corporation: Pricing In Optimism It Hasn't Yet Earned by Frey TobiasCatalyst Pharmaceuticals: Exceptional Fundamentals Trading at 20-33% Discount by Pau Galindo OrtigosaOut with the Old Box and in with the New: A Check-in on the AI Transformation by Pierre RaymondColony Bankcorp and the Appeal of Repeatable Bank Earnings by Raphaël BernardThis 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].

With its 25% YTD correction, there's now a mismatch between Hermès' market valuations and fundamentals, making now a unique buying opportunity. Even with the ongoing luxury market slowdown, the company's revenue growth stays healthy, and its margins are robust even as net income contracted a bit in 2025 due to taxes. Market multiples indicate at least 20% upside to HESAY, though a worsening in geopolitical and macroeconomic conditions could be a risk.

Hermès is a rare scarcity asset, maintaining premium valuation despite recent macro-driven drawdown. HESAY delivered $18B in revenue and a 41.75% operating margin in 2025, with robust liquidity and disciplined reinvestment in brand scarcity. Macro risks and China/Asia exposure (42% of revenue) are key watchpoints, but the scarcity model and balance sheet offer resilience.

The fragile recovery of European luxury equities, which investors hoped would stabilize following a mixed Lunar New Year, was decisively upended by the onset of the Iran War in 2026.

In recent weeks, the sector has seen about $100 billion in market cap evaporate as geopolitical risk premia spiked and consumer sentiment soured. Titans including LVMH, Kering, Richemont, and Hermes, have retreated between 10% and 20% each.

While the Middle East represents some 6% of global luxury sales, it functions as a “vital growth” engine during a period of stagnation in other major markets.

However, analysts believe the European luxury stocks will rebound sharply as soon as the US-Iran conflict subsides.

According to them, the recent pullback isn’t a structural failure, but cyclical de-rating that actually offers a high-conviction entry point for the next market cycle.

In a recent note to clients, Deutsche Bank’s senior analyst Adam Cochrane said the primary catalyst for an expected post-war rally in luxury stocks hinges on valuation anomalies.

Major conglomerates are currently trading at huge discounts compared to their historical multiples, largely due to a risk premium that has decoupled share prices from fundamental earnings power.

While timing remains uncertain, Cochrane expects industry’s growth algorithm to eventually return, fueled particularly by a resurgence in US and Chinese demand.

Deutsche Bank maintained its “buy” rating on sector bellwether, adjusting the price target to €620, signaling the intrinsic value of the fashion giant remains robust despite wartime discount.

Investment firms more broadly have cut their earnings forecast in half to 3% for the first quarter. Still, the valuation landscape suggests significant upside once the macro outlook clears.

UBS – for example – sees potential recoveries of up to 40% in LVMH stock and 32% in Richemont.

According to its experts, once geopolitical uncertainty fades and investor sentiment normalizes, it will trigger a wave of institutional buying as funds rotate back into premium-quality discretionary stocks.

This will drive a rapid expansion of P/E multiples toward historical ranges, they concluded.

Wall Street believes a formal end to hostilities will serve as an immediate catalyst for operational normalization, particularly in high-margin regions.

The closure of key regional hubs has not only dented retail figures but also strained supply chains, with high-end manufacturers like Ferrari and Bentley previously forced to suspend shipments due to security concerns.

The resumption of these deliveries and the reopening of luxury travel retail in hubs like Dubai are expected to provide a concentrated boost to second-half revenue.

Because the Middle East – in recent years – has been one of the few “bright spots” in an otherwise struggling global landscape, its stabilization is critical for restoring investor confidence.

The return of wealthy tourists to the Gulf, who account for the majority of luxury spending in the region, will likely trigger a fast recovery in duty-free channels and reduce the elevated freight costs associated with wartime logistics.

This may further help luxury stocks rally again as the year unfolds.

Luxury stocks fell sharply on Wednesday after disappointing first-quarter earnings from Kering and Hermès highlighted the growing toll of the Middle East conflict on high-end spending, tourism and investor confidence.

The selloff, which spread across Europe’s luxury sector, signals rising concerns that geopolitical tensions and macroeconomic uncertainty are derailing hopes of a recovery in the $400 billion industry.

Shares of Hermès plunged 14%, while Kering dropped 10%, dragging peers such as Burberry, Christian Dior, LVMH and Moncler lower by between 2% and 3% on the Stoxx 600.

Earlier this week, sector bellwether LVMH reported softer sales for the first quarter, citing disruptions to the geopolitical and economic landscape, particularly from the conflict in the Middle East.

The luxury sector, already grappling with trade tensions and a challenging economic backdrop, is now facing fresh pressure from the war in Iran, which analysts say could dampen regional demand and curb spending by Middle Eastern tourists in Europe.

At the centre of Kering’s disappointing performance was continued weakness at its flagship brand Gucci, where first-quarter sales fell 8% from a year earlier.

The company said the Iran war had weighed on spending by Middle Eastern consumers and curtailed international travel, both key drivers of luxury demand.

Retail revenues in the Middle East declined 11% during the quarter, despite solid growth in the first two months of the year before the conflict escalated on February 28.

Finance chief Armelle Poulou said the war shaved off 3% of overall group sales in March, or around 1% for the quarter as a whole, with a similar impact on Gucci.

Kering noted that the Middle East accounts for about 5% of its overall revenue and said it was closely monitoring developments.

“While some areas experienced temporary disruptions, the total retail network is operational today,” the company said, adding that “beyond the localized impact,” the broader concern relates to global tourism trends and the macroeconomic backdrop.

Despite the uncertain environment, Kering reiterated its aim of returning to growth and improving margins this year.

However, analysts remain cautious about the pace of recovery.

“While guidance was confirmed, the timeline for a Gucci turnaround remains uncertain and likely gradual, against a challenging macro backdrop and ongoing geopolitical tensions,” Citi analysts wrote, referring to ongoing structural challenges at the brand.

Gucci, once Kering’s main profit engine, has seen its quarterly sales roughly halve compared with 2023 levels, reflecting the fallout from aggressive price increases, changing aesthetics and management churn that have alienated parts of its customer base.

Meanwhile, Hermès reported a slowdown in sales growth, suggesting that even the most resilient players in the sector are not immune to geopolitical shocks.

The company posted revenue of 4.07 billion euros ($4.80 billion) for the first quarter, representing a 5.6% increase at constant exchange rates.

However, the figure fell short of analysts’ expectations of 4.16 billion euros and marked a slowdown from the 9.8% growth recorded in the previous quarter.

At current exchange rates, sales declined 1% year-on-year, as currency fluctuations wiped out 290 million euros in revenue.

Growth in key product categories, including Birkin and Kelly bags, silk scarves and perfumes, came in at 6%, below the 7.1% expected by analysts.

The company attributed part of the weakness to declining tourist flows linked to the conflict.

Sales in the Middle East fell 6% to 160 million euros, while demand in key tourist destinations such as the UK, Italy and Switzerland also weakened.

“The Middle East, down by 6%, was of course significantly impacted by the geopolitical events affecting the region in March,” said chief financial officer Eric du Halgouet.

He added that sales in luxury malls in the United Arab Emirates dropped by 40% in March.

The Middle East has been one of the fastest-growing regions for luxury brands in recent years, accounting for roughly 5% of global consumption.

However, the conflict has disrupted travel patterns and consumer confidence, undermining a key pillar of demand.

“It was definitely a strategic region. Everything was okay,” said Carole Madjo, head of luxury research at Barclays told Reuters.

That picture has changed sharply in recent weeks.

Sales in major shopping destinations in Dubai and Abu Dhabi have declined significantly, with some brands reporting drops of 30% to 50% at the Mall of the Emirates in March, Reuters reported citing sources.

The impact extends beyond the region itself.

Middle Eastern tourists are among the highest spenders globally, and their reduced travel has hit luxury sales in Europe, particularly in cities and airport retail outlets that depend heavily on international visitors.

Dubai, a key hub for luxury retail and tourism, has also been directly affected by the conflict.

Infrastructure disruptions and security concerns have dented its image as a stable destination, with analysts warning that recovery could take months even if tensions ease.

The latest earnings underscore the fragile state of the luxury sector, which has already been grappling with slowing demand, trade tensions, and economic uncertainty.

Since the end of the post-pandemic luxury boom in 2022, the combined market capitalisation of LVMH and Kering has fallen by more than 100 billion euros.

Industry-wide sales declined 2% last year, according to Bain & Company, and expectations for a rebound this year are now under pressure.

Analysts warn that the ripple effects of the war could extend beyond the Gulf region.

Bernstein said higher oil prices, rising travel costs, and potential financial market volatility could “easily disrupt” luxury demand globally, especially in the United States.

“If it now turns out that whatever luxury recovery we were hoping for in 2026 is not going to happen, and it's going to be postponed at best into the second half or into next year, I don't think anybody can be surprised by it,” said Christopher Rossbach, portfolio manager at J Stern & Co in London in the Reuters report.

While companies such as Hermès maintain confidence in their medium-term outlook, the near-term environment remains highly uncertain, with geopolitical risks, currency volatility, and shifting consumer behaviour continuing to weigh on the sector.

Hermès International Société en commandite par actions (HERM:CA) Shareholder/Analyst Call Transcript

On May 14, 2026, we present a DCF analysis for Hermes International SA HESAY , a luxury goods company currently facing significant price performance challenges. Over the past year, the stock has declined by 34.9%, reflecting broader market trends and company-specific factors.

DCF Earnings-based intrinsic value of $156.68 vs current price of $186.86 (margin of safety: -8.4%) DCF FCF-based intrinsic value of $132.60 vs current price (second opinion shows modest overvaluation) GF Score™ of 92/100 indicates high reliability of the DCF inputs What Is HESAY Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates the intrinsic value of HESAY by projecting its future earnings growth and discounting them to present value. We assume a current EPS of $5.15 and a robust 10-year growth rate of 19.6%. The discount rate is set at 11%, combining the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $5.15 10-Year Growth Rate 19.6% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In this two-stage model, we first calculate the growth stage value, where EPS grows at 19.6% per year for the first 10 years, discounted at 11%. This results in a growth stage value of $79.43 per share. Following this, we enter the terminal phase, where growth slows to a 4% terminal rate for the next 10 years, yielding a terminal stage value of $77.25 per share.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 19.6%, discounted at 11% $79.43 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $77.25 Intrinsic Value Growth + Terminal $156.68 Comparing the intrinsic value of $156.68 to the current price of $186.86, we find that the stock is fairly valued with a margin of safety of -8.4%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the HESAY DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for HESAY is calculated at $132.60. This value contrasts with the earnings-based intrinsic value, suggesting a modestly overvalued status with a margin of safety of -40.9%. The divergence between the two models indicates that while the earnings-based model suggests fair valuation, the FCF model points towards overvaluation, highlighting the importance of considering multiple valuation perspectives.

How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for HESAY is $293.36, indicating that the stock is 36.3% undervalued based on historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based model suggests fair valuation and the FCF model indicates modest overvaluation, the GF Value™ presents a more optimistic view, suggesting that the stock may be undervalued. For more information, visit the GF Value™ page.

What Does HESAY's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). HESAY has a GF Score™ of 92/100, indicating strong fundamentals and growth potential. The predictability rank is 1/5 stars, suggesting that the DCF model may be less reliable for this stock.

Metric Rating GF Score™ 92/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 4/10 Momentum 4/10

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as HESAY's 1/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.

What This Means for Investors In summary, the DCF earnings model suggests that HESAY is fairly valued, while the FCF model indicates it is modestly overvalued. The GF Value™ presents a more favorable perspective, suggesting the stock is undervalued. Overall, the consensus leans towards a fair valuation, but investors should consider the varying perspectives from each model before making decisions. For the full DCF analysis, visit the HESAY DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is HESAY's intrinsic value based on DCF?

HESAY's intrinsic value based on DCF is $172.45 (earnings-based) and $132.60 (FCF-based).

Is HESAY overvalued or undervalued?

Based on the DCF models and GF Value™, HESAY appears to be fairly valued.

How reliable is the DCF model for HESAY?

The DCF model for HESAY is less reliable due to its predictability rank of 1/5 stars.

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].

Hermès is now rated a strong buy after a rare 43% share price collapse, despite resilient fundamentals and premium brand positioning. Q1 2026 revenue growth of 5.6% missed expectations, but long-term EPS trends remain robust and profit margins have expanded to nearly 30%. Temporary headwinds—Middle East conflict, travel disruptions, and industry-wide weakness—do not threaten HESAY's secular growth or exclusive client base.

Sweetgreen, Inc. (SG - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -9.5%.

Revenues are expected to be $166.02 million, down 0.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.54% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Sweetgreen?For Sweetgreen, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.67%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Sweetgreen will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Sweetgreen would post a loss of$0.31 per share when it actually produced a loss of -$0.42, delivering a surprise of -35.48%.

The company has not been able to beat consensus EPS estimates in any of the last four quarters.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Sweetgreen appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Retail - Restaurants industry, Bloomin' Brands (BLMN - Free Report) , is soon expected to post earnings of $0.57 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of -3.4%. This quarter's revenue is expected to be $1.04 billion, down 0.8% from the year-ago quarter.

The consensus EPS estimate for Bloomin' Brands has been revised 7.1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.90%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Bloomin' Brands will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

If you bought Cava Group (CAVA +8.20%) stock somewhere near its 52-week lows late last year, you likely understood something important: The best restaurant stocks don't get rewarded for what they're doing today or for what the culture sees them as. They get rewarded for their store count growth rate and for what the market thinks their comparable-store sales could look like in five years. Already, the market has begun to reevaluate Cava -- it's up by more than 100% from its November low.

That same lens should be applied to three other restaurant chains that are trading well below where their long-term trajectories suggest they should be.

Image source: Getty Images.

1. Dutch Bros: A coffee drive-thru disrupter that's still in its early innings Dutch Bros (BROS +7.88%) trades around $57 per share -- more than 25% below its 52-week high -- even though it posted its 11th consecutive quarter of earnings beats in Q4 2025. The company opened 55 new shops in that quarter alone and plans to open 181 new locations in 2026, with 2026 revenue guidance of $2 billion to $2.03 billion and comparable sales growth of 3% to 5%. (Its Q1 results are due out May 6.)

What makes Dutch Bros unusual isn't just the (really good) coffee; it's the data infrastructure underneath it. The company's rewards program feeds a digital flywheel that uses analytics and personalized marketing to drive repeat visits. In Q3, same-store sales grew 5.7% systemwide, powered by 4.7% transaction growth. While many restaurant industry operators have been losing traffic, Dutch Bros is adding it. I'm a big fan of repeat customers on everyday purchases like coffee.

Today's Change

(

7.88

%) $

4.75

Current Price

$

65.03

The company is also rolling out an "order ahead" feature in 2026 and leaning into its food segment. Management's long-term ambition is to have 7,000 stores in operation, up from roughly 950 today. This is an early innings story hiding inside a mid-cap stock.

2. Cheesecake Factory: A casual dining stock that refuses to quit Among investors, the Cheesecake Factory (CAKE +6.17%) is one of the most consistently overlooked large-format casual dining operators. The stock has delivered total returns of roughly 28% over the past year. The company has generated strong multiyear returns in an environment where many sit-down dining establishments struggled. Its ability to command high average checks, sustain repeat visits, and expand internationally through its North Italia chain and an array of smaller brands it's testing through its Fox Restaurant Concepts subsidiary gives it a more diversified revenue base than the ticker name suggests.

Today's Change

(

6.17

%) $

4.36

Current Price

$

74.98

Beware, though: An executive at The Cheesecake Factory, Spero Alex, sold about $316,000 worth of stock last month, completely exiting his indirect holdings while retaining some restricted stock units. Insider selling -- especially a full exit -- can be a red flag.

3. Sweetgreen: Still early for most, which is the point Sweetgreen (SG +6.28%) stock is not for everyone. It's trading below $7, down roughly 85% from its 3-year high. The company is not profitable. But Sweetgreen is doing something structurally important. It is using its proprietary Infinite Kitchen, which is a robotic salad assembly system, to attack a key expense line: labor costs. Locations where it has installed the salad-making robots have demonstrated faster throughput and lower costs. The company is also planning 15 to 20 net new restaurant openings in 2026.

Today's Change

(

6.28

%) $

0.54

Current Price

$

9.14

With those facts in mind, RBC Capital's Logan Reich recently reiterated his buy rating on the stock. My take on Sweetgreen mirrors how I viewed Cava in the past and how I currently view Dutch Bros. The company is building a growing brand and is trying to build up a loyal base of repeat customers that should become increasingly valuable over time.

Granted, Sweetgreen is nowhere near as close in repeats as the likes of Cava, but if its robots can keep costs and overhead low, it has a clear path to more store expansion and potential upside in the stock. This stock is a buy for investors who are ready to hold it for the long term.

LOS ANGELES--(BUSINESS WIRE)--Sweetgreen, Inc. (NYSE: SG) (the “Company”), the mission-driven, next-generation restaurant and lifestyle brand that serves healthy food at scale, today announced financial results for its first fiscal quarter ended March 29, 2026. First quarter 2026 financial highlights For the first quarter of fiscal year 2026, compared to the first quarter of fiscal year 2025: Total revenue decreased 2.9% to $161.5 million. Same-Store Sales Change of (12.8%), versus (3.1%). Tota.

Sweetgreen, Inc. (SG - Free Report) reported $161.52 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 2.9%. EPS of -$0.27 for the same period compares to -$0.21 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $166.02 million, representing a surprise of -2.71%. The company delivered an EPS surprise of -20%, with the consensus EPS estimate being -$0.23.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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 Sweetgreen performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Same-Store Sales Change: -12.8% versus the six-analyst average estimate of -10%.Ending restaurants: 285 compared to the 283 average estimate based on six analysts.Net New Restaurant Openings: 4 compared to the 3 average estimate based on four analysts.View all Key Company Metrics for Sweetgreen here>>>

Shares of Sweetgreen have returned +22.5% over the past month versus the Zacks S&P 500 composite's +11% 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.