Track market-moving stories before they get noisy

It is hard to find an artificial intelligence (AI) stock these days that investors would rate as a value stock, but Pagaya Technologies (PGY +8.62%) is one. AI stocks and value arenʻt mutually exclusive. It's just that most AI stocks are overvalued, not undervalued, given the hype surrounding them.

But Pagaya has somehow avoided the hype, remaining just below the AI radar. It's stock trades at around $13 per share and has a trailing 12-month price-to-earnings (P/E) ratio of 11. But it has a forward P/E ratio of just 4, and its five-year price/earnings-to-growth (PEG) ratio barely registers at 0.03.

In other words, Pagaya stock is trading like a deep value stock, but it has massive growth potential.

Image source: Getty Images.

Pagaya uses AI to place loans Pagaya is a fintech that uses AI to help banks and financial institutions process loans. But the company specializes in handling non-prime loan requests that have been passed on by banks. Rejected loan requests deemed too risky by the average bank are forwarded to Pagaya, which uses its AI-enabled platform to determine if an alternate lender can be found in its network.

Pagaya is really the only company that specializes in this area, so it has carved out a growing niche. It makes most of its revenue through fees for placing these loans with lenders.

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In the first quarter, it generated $317 million in revenue, up 10% year over year. Of that amount, $299 million, or 94%, came from fees. The rest was mostly from interest income.

Its network volume rose by 9% in the quarter to $2.6 billion, fueled by growth in auto loans and point-of-sale loans, like those obtained through buy now, pay later (BNPL) companies. The point-of-sale loans are a rapidly growing part of its business and should continue to surge, as Pagaya just signed a deal with Sezzle to provide that service for its BNPL platform.

In addition, Pagaya reduced its expenses in Q1. This allowed it to raise its operating income by 67% to $80 million, while its net income spiked 212% to about $25 million.

Growth outlook Pagaya anticipates strong growth this year, and it recently raised its guidance for network volume and net income. The company now anticipates network volume of between $11.45 billion and $13 billion in 2026, which would be up from $10.5 billion last year. The previous guidance called for $11.25 billion at the low end.

Revenue is forecast by management at $1.4 billion to $1.575 billion this year, up almost 15% at the midpoint from 2025. Net income is anticipated to be within a range of $110 million to $160 million, up 67% at the midpoint from last year. The previous guidance called for net income of $100 million to $150 million.

It is this type of growth, combined with its dirt cheap valuation, that has Wall Street analysts extremely bullish on Pagaya stock. 100% of the 10 analysts covering Pagaya rate it a buy, with a median price target of $25 per share, suggesting 86% upside over the next year or so.

If you are looking for a cheap growth stock with big upside, this is one stock to consider.

Pagaya Has Delivered Five Straight Profitable Quarters, So Why Is Nearly 20% Of The Float Still Short?

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.

TTM Technologies, Inc. (TTMI - Free Report) : This company that manufactures and sells printed circuit boards has seen the Zacks Consensus Estimate for its current year earnings increasing 27.5% over the last 60 days.

Green Dot Corporation (GDOT - Free Report) : This financial technology and bank holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.8% over the last 60 days.

Occidental Petroleum Corporation (OXY - Free Report) : This explorer and developer of oil and gas has seen the Zacks Consensus Estimate for its current year earnings increasing 67.2% over the last 60 days.

Civista Bancshares, Inc. (CIVB - Free Report) : This financial holding company for Civista Bank has seen the Zacks Consensus Estimate for its current year earnings increasing 9.2% over the last 60 days.

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

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Pagaya Technologies Ltd. (PGY - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 6.2%, the stock of this company is certainly well-positioned in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. PGY meets this criterion too, as the stock gained 31.6% over the past 12 weeks.

Moreover, the momentum for PGY is fast paced, as the stock currently has a beta of 5.35. This indicates that the stock moves 435% higher than the market in either direction.

Given this price performance, it is no surprise that PGY has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped PGY earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, PGY is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. PGY is currently trading at 0.94 times its sales. In other words, investors need to pay only 94 cents for each dollar of sales.

So, PGY appears to have plenty of room to run, and that too at a fast pace.

In addition to PGY, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

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Pagaya Technologies Ltd. (PGY - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Pagaya Technologies Ltd. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Pagaya Technologies Ltd., rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Pagaya Technologies Ltd.This company is expected to earn $3.23 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Pagaya Technologies Ltd.. Over the past three months, the Zacks Consensus Estimate for the company has increased 30.9%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Pagaya Technologies Ltd. to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways Pagaya connects lenders and institutional investors, using AI to approve and price consumer loans.In Q1 2026, network volume was $2.6B, with growth largely driven by auto and POS.Pagaya had 30 lending partners and 160 funding partners as of Mar. 31, 2026, supporting ABS. Pagaya Technologies (PGY - Free Report) has built a U.S.-focused platform that sits between lenders and institutional investors. It uses proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance.

The investment case often comes down to whether Pagaya can keep scaling volumes and profitability without loosening credit standards. First quarter results have reflected that balance, with management pointing to fee generation, operating leverage, disciplined spending and funding flexibility as key drivers.

PGY’s Platform Basics: AI Credit at ScalePagaya’s core role is to connect lenders that want to originate loans with institutional investors that want exposure to consumer credit with targeted risk-adjusted outcomes. The platform applies AI to large volumes of real-time and historical data to make informed approval and pricing decisions.

The model is designed to be asset-light. Pagaya originates and structures loans through partners, but sells most of the credit exposure to institutional investors. That reduces capital intensity and balance sheet risk, so revenues are primarily fee-driven rather than dependent on holding loans.

Those fees are tied to technology solutions that support marketing, underwriting and decisioning, paired with capital-efficiency capabilities focused on funding and risk management. PGY’s goal is to scale volumes while keeping credit quality and capital markets execution in view.

Pagaya’s Products: From Personal Loans to POSPagaya started in personal loans and expanded into auto, point of sale (POS) and single-family rental, while also adding credit cards as another market. The broader footprint matters because it diversifies volume sources and helps the network stay resilient when one asset class slows.

That breadth is showing up in the mix. In the first quarter of 2026, network volume was $2.6 billion and growth was largely driven by auto and POS, underscoring momentum beyond personal loans.

Product-led tools are meant to fit across the lending lifecycle. Direct Marketing Engine, Affiliate Optimizer and FastPass are positioned as technology layers that help partners with customer acquisition and conversion, underwriting decisioning and a more integrated workflow.

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PGY’s Funding Engine: ABS Scale and Investor DepthPagaya finances originations through multiple channels, including securitizations sponsored or administered by Pagaya or affiliates, funds managed or advised by Pagaya or affiliates, and third-party special purpose vehicles under forward-flow arrangements, among similar structures.

A key point is how much of the credit exposure is distributed rather than retained. By selling most exposure to institutional investors, Pagaya can keep its balance sheet relatively asset-light while using capital markets execution to support growth.

Scale and partner breadth are central to that engine. As of March 31, 2026, PGY reported more than 30 lending partners and 160 institutional funding partners supporting its asset-backed securities (ABS) and other funding channels. Since 2018, it has raised more than $36 billion across over 85 ABS transactions, and it raised $2.1 billion in ABS funding across four transactions in the first quarter of 2026.

Pagaya’s Growth Markers: Volumes, Partners, PenetrationPagaya’s network has evaluated more than $3.7 trillion in loan applications since inception, which speaks to the scale of the top-of-funnel data feeding its models and partner workflows.

Management has emphasized expanding the partner base and deepening multiproduct penetration. The company planned to onboard seven to eight new partners by the end of the second quarter of 2026, and it had already onboarded four partners across its three core consumer credit asset classes through May 7, 2026. Multi-year deals with two large partners in auto and personal lending are also intended to support predictability.

Broader adoption can matter as much as new logos. In the first quarter of 2026, revenue from fees increased as partner adoption broadened, with Pagaya adding Experian Activate for personal loans and scaling Affiliate Optimizer and Direct Marketing Engine. The company completed 12 campaigns across five partners, a data point that ties product usage to potential revenue per application over time.

Earnings Estimates
 

Image Source: Zacks Investment Research

What Moves PGY’s Unit EconomicsInvestors often track revenue from fees less production costs (FRLPC) as a core margin lens. In the first quarter of 2026, FRLPC was $121 million, up 5% year over year, while FRLPC as a percentage of network volume was 4.6%.

That margin can move quickly with funding conditions. Management attributed the year-over-year decline in FRLPC margin to asset-class mix, new partner contributions and tighter pricing on the company’s ABS transactions, reflecting a higher cost of capital and market-driven pricing pressure. When ABS pricing tightens, capital markets execution fees can come under pressure and take rates can compress.

Near-term economics can also be influenced by ramp-up dynamics and underwriting posture. Management deliberately reduced loan production in late 2025 by about $100 to $150 million per month and carried that lower run-rate into early 2026, while application-to-volume conversion stayed below 1% as the company leaned into higher-quality borrowers.

Pagaya: Key Watch List for InvestorsMonitor partner onboarding cadence and the pace at which new relationships translate into network volume, with management positioning new partner ramps as a more meaningful contributor in the back half of 2026.

Watch the auto and POS mix, since mix shifts have been linked to near-term FRLPC pressure. Management expects FRLPC margin of 4-5%, with a tilt toward the lower end due to increased POS mix, new partners and funding mix.

Monitor underwriting selectivity, including whether conversion remains below 1% and how that interacts with volume targets. Follow funding conditions, especially ABS pricing, since tighter pricing has flowed through to lower capital markets execution fees. Finally, look for updates on the single-family rental business path, as management has been evaluating strategic alternatives.

Pagaya’s Price Performance & Zacks RankFor context, Pagaya’s peers in the broader fintech and consumer credit ecosystem include Affirm Holdings (AFRM - Free Report) and LendingClub Corporation (LC - Free Report) .

Over the past three months, shares of PGY have jumped 38.6%, outperforming the industry’s rally of 7.8%. In the same time frame, Affirm Holdings and LendingClub have gained 52.4% and 23.7%, respectively.

3-Month Price Performance
 

Image Source: Zacks Investment Research

At present, Pagaya sports a Zacks Rank #1 (Strong Buy), while Affirm Holdings and LendingClub carry a Zacks Rank #3 (Hold) and a Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Pagaya posted Q1 2026 GAAP net income of $24.7M, up from $7.9M, on operating leverage.PGY lifted 2026 GAAP net income guidance to $110M-$160M and revenue to $1.4B-$1.575B.Pagaya raised $2.1B of ABS across four deals and completed its first auto resecuritization. Pagaya Technologies (PGY - Free Report) is leaning into a different narrative in 2026: scaling profits without loosening credit standards. The first quarter reinforced that shift, with another GAAP profit and clear evidence of operating leverage.

Management also raised its full-year GAAP net income outlook, while pointing to fee generation, disciplined spending, and a more durable funding playbook as key supports.

PGY’s Q1 Takeaways: Profits and Operating LeverageFirst-quarter 2026 adjusted earnings of 73 cents beat the Zacks Consensus Estimate of 48 cents, as profitability improved year over year. GAAP net income attributable to Pagaya rose to $24.7 million from $7.9 million in the prior-year quarter. 
 

The setup was straightforward: total revenues and other income increased 9.6% year over year to $317.9 million, while total costs and operating expenses declined 1.8% to $237.9 million. Lower technology, data and product development costs, along with lower general and administrative costs, helped drive that expense improvement.

The first quarter fits into a broader operating leverage trend. Revenue growth has been outpacing expense growth, helping margins improve and supporting a profitability streak into 2026. Operational efficiencies and tighter cost discipline have been reinforced by better performance in personal loans and auto lending, keeping spending in check as the platform scales.

Pagaya’s 2026 Outlook: What Changed and WhyManagement raised full-year 2026 GAAP net income guidance to $110-$160 million, up from $100-$150 million previously. Adjusted EBITDA guidance was also updated to $420-$460 million from $410-$460 million.

The company also expects 2026 network volume of $11.45-$13 billion, with the lower end lifted by about $200 million versus prior guidance, and total revenues projected at $1.4-$1.575 billion.

For the second quarter, management projects network volume of $2.875-$3.075 billion and total revenues of $345-$365 million, alongside adjusted EBITDA of $100-$115 million and GAAP net income of $25-$45 million.

The drivers behind the higher net income outlook center on fee generation, operating leverage, and disciplined spending. At the same time, management continues to factor in a conservative macro stance and selective underwriting, which can temper near-term volume even as profitability improves.

Earnings Estimates
 

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PGY’s Near-Term Setup: Strong Buy Signal and Style ScoresPagaya sports a Zacks Rank #1 (Strong Buy), which is designed to be most effective over a one- to three-month holding horizon by capturing earnings estimate revision trends. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Style Scores add another layer of near-term support. A VGM Score of A, paired with a Value Score of A, suggests the shares screen well across value and blended factor frameworks. Growth and Momentum scores of B indicate a supportive, though not extreme, factor backing those dimensions.

Context matters in this peer group. Affirm Holdings, Inc. (AFRM - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) both carry a Zacks Rank #3 (Hold) in the same industry comparison set. This highlights how Pagaya’s near-term rating profile stacks up compared with other consumer finance platforms.

Pagaya’s Funding Flexibility: Stress-Test EvidenceFunding durability is central to Pagaya’s model, and the first quarter delivered tangible proof points. The company raised $2.1 billion of asset-backed securities (ABS) funding across four transactions despite market volatility and completed its first auto resecuritization.

These steps matter because PGY’s approach is built around expanding securitization capacity and adding new investors, supporting an upfront model that raises cash before loans are originated. A broader institutional funding partner base is intended to reduce volatility and improve execution resilience when markets get choppy.

The trade-off is that funding costs remain a swing factor. Tighter ABS pricing can compress take rates and pressure revenue per unit of volume, making capital markets conditions an ongoing variable to watch even with improved funding flexibility.

Valuation Lens for PGY: Tangible Book ContextOn valuation, the key anchor is tangible book value. Pagaya has been trading at 2.65X trailing 12-month tangible book value, compared with 4.23X for the industry.

History shows a wide range. Over the past three years, the stock has traded as high as 8.03X and as low as 0.83X tangible book, with a three-year median of 1.84X.

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For investors, that context frames the current multiple as neither a peak nor a trough versus its own range, while keeping the focus on whether profitability and funding execution can justify holding above the longer-term median.

In comparison, Affirm Holdings and Upstart Holdings are trading at a premium to PGY. At present, Affirm Holdings and Upstart Holdings are trading at a trailing 12-month tangible book value of 7.87X and 4.89X, respectively.

Decision Checklist: What Would Change the CallFirst, track whether Pagaya can sustain GAAP profitability beyond a single quarter and keep operating discipline intact as volumes scale.

Second, monitor the FRLPC trend versus expectations. FRLPC as a percentage of network volume was 4.6% in the first quarter, and the company expects a 4-5% range for 2026 while trending toward the lower end due to point-of-sale mix, new partners, and funding mix.

Third, watch stability in funding costs and ABS execution economics, since tighter pricing can squeeze take rates.

Fourth, execution on partner ramps matters, with management targeting additional onboarding and framing ramps as more back-half weighted. Finally, keep an eye on concentration risk, including the contribution from a related-party customer that represented about 20% of total fee revenues in the first quarter.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Douglas Dynamics (PLOW - Free Report) : This company, which designs, manufactures and sells snow and ice control equipment for light trucks, has seen the Zacks Consensus Estimate for its current year earnings increasing 15.4% over the last 60 days.

Pagaya Technologies Ltd. (PGY - Free Report) : This company, which applies proprietary artificial intelligence (AI) to improve credit decisioning and capital allocation across consumer finance, has seen the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.

Macro Bank (BMA - Free Report) : This company, which is a leading bank in Argentina, has seen the Zacks Consensus Estimate for its current year earnings increasing 11.1% over the last 60 days.

The Estee Lauder Companies (EL - Free Report) : This company, which is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.6% over the last 60 days.

Shore Bancshares (SHBI - Free Report) : This bank holding company, which is engaged in the business of banking through its subsidiaries, has seen the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 day.

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

NEW YORK--(BUSINESS WIRE)--Pagaya Technologies Ltd. (NASDAQ: PGY) (“Pagaya”), a global technology company delivering AI-driven product solutions for the financial ecosystem, today announced an expansion of its long-term partnership with Upgrade, Inc., a financial technology company providing affordable and responsible credit, mobile banking and payment products to mainstream consumers. The expansion brings Pagaya’s AI-driven credit decisioning to Flex Pay, Upgrade’s Buy Now, Pay Later (BNPL) solution.

The announcement marks a significant milestone in the ongoing partnership between the two companies, moving beyond personal loans into a new asset class. With Pagaya integrated into its point-of-sale solution, Upgrade can responsibly extend its simple, surprise-free Flex Pay monthly payment options to a broader range of customers at the moment of purchase.

“By leveraging Pagaya’s AI-powered decisioning within our Flex Pay product, we are enabling more people to access the payment solutions they need, allowing them to make thoughtful purchases now and pay overtime through a quick and easy application process,” said Tom Botts, President of Flex Pay.

The initial partnership expansion focuses on the travel merchant segment, where Flex Pay is a trusted payment method for thousands of the world’s leading brands. By utilizing Pagaya’s real-time underwriting, Upgrade will be able to extend its seamless Flex Pay financing options to more customers across its extensive network of travel partners.

“Our expanded partnership with Upgrade to integrate into Flex Pay underscores the strength of our long-term relationship, as we deepen our collaboration beyond personal loans,” said Sanjiv Das, President of Pagaya. “By extending our network across new asset classes, we are supporting Flex Pay as it continues to grow. This expansion is part of our strategy to extend our point-of-sale business towards more purpose-driven transactions.”

About Pagaya
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy. For more information, visit pagaya.com.

About Upgrade
Upgrade is a financial technology company that offers affordable and responsible credit, mobile banking, and payment products to mainstream consumers. Since its inception in 2017, Upgrade has delivered over $47 billion in credit to over 7.8 million customers. Upgrade’s platform includes six core products: BNPL, Home Improvement Financing, Personal Loans, Cards, Mobile Banking, and Auto Financing. Loans and credit lines are issued, and banking services are provided, by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender, Blue Ridge Bank, a nationally chartered commercial bank, Member FDIC, and Celtic Bank, a Utah State Chartered Industrial Bank, Member FDIC.

Upgrade is headquartered in San Francisco, California, with an operations center in Phoenix, Arizona, a technology center in Montreal, Canada, and regional offices in Atlanta, Georgia, and Irvine, California.

More News From Pagaya Technologies Ltd.

Pagaya Technologies Ltd. (PGY) Presents at Morgan Stanley US Financials Conference 2026 Transcript

There is a bottleneck in the artificial intelligence (AI) build-out that doesn't get enough coverage: A lack of power. It's not chips. It's not cooling. The actual megawatts of electricity delivered reliably at the scale that a 100,000-graphics processing unit (GPU) cluster demands is hard to come by.

In Texas, the ERCOT grid interconnection queue has swollen past 230 gigawatts, with wait times for large-load customers wanting added access to the grid now exceeding five years. More power sources are needed desperately. Hyperscalers are spending $690 billion on AI infrastructure in 2026 alone -- and they need those grid connections to power their expanded operations.

One surprising company looking to provide that energy: Atlas Energy Solutions (AESI 3.29%). Here's how. 

Image source: Getty Images.

Atlas Energy wants to tap into an unused power source Most investors recognize Atlas Energy as a proppant company, which supplies the frac sand that fuels drilling activity in the Permian Basin and transports it via its Dune Express system. The Dune Express is actually the world's longest automated sand conveyor.

That's Atlas' main business. But what's happening now is something else entirely. Atlas is using that physical Permian footprint to help solve the most pressing bottleneck in the modern economy.​

In March 2026, Atlas signed a Global Framework Agreement with Caterpillar (CAT +4.84%), securing roughly 1.4 gigawatts (GW) of incremental natural gas power generation assets through Dec. 31, 2030. The initial purchase commitment is approximately $840 million. With successful deployment, Atlas expects to own and operate approximately 2 gigawatts of generation capacity by 2030.​

Why is a sand provider getting into power generation? The strategic logic is cleaner than it looks at first glance. Atlas's Permian Basin operations sit next to enormous amounts of "stranded" natural gas. This gas would otherwise be flared off into the atmosphere due to pipeline constraints.

Its subsidiary, Galt Power Solutions, is working to take that "stranded" gas and convert it into behind-the-meter (BTM) electricity for industrial customers, including the cluster of AI data centers and chip-testing facilities migrating to West Texas and New Mexico. It bypasses the utility grid entirely. That's part of the "Gigawatt Pivot" Wall Street is now paying attention to.​

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A bullish business structure Altas Energy's business model has a three-pillar structure: Proppant sales, logistics (the Dune Express), and now Power-as-a-Service. The power segment is the newest and, for the long term, the most interesting. It turns a cyclical commodity business into something closer to a contracted infrastructure play.​

The stock is not for everyone. AESI trades at a price-to-earnings (P/E) of roughly 91x on trailing earnings that reflect the transition. The proppant segment has faced headwinds, and the power buildout won't generate serious cash until 2027-2029, when the Caterpillar equipment starts deploying.

Revenue growth has been negative recently as the legacy business moves through a trough. The market cap sits around $1.7 billion -- small enough to be ignored by major funds.

But that's the nature of a pivot story. The sand business is still cash flow positive. The power business, once operational at 2 GW, could entirely transform the company's earnings profile.

To me, that relative neutrality is exactly what makes it compelling and a solid long-term investment play.

Atlas Energy Solutions is rated STRONG BUY, driven by a transformative pivot into modular power generation and robust long-term growth prospects. AESI suspended its dividend to fund a $840m capital commitment with Caterpillar, targeting 2 GW of deployable power capacity by 2030. The company's sand business remains profitable due to cost advantages, but near-term growth is anchored in new power purchase agreements and project execution.

AUSTIN, Texas--(BUSINESS WIRE)--Atlas Energy Solutions Inc. (NYSE: AESI) (together with its subsidiaries, “Atlas” or the “Company”) today announced that, subject to market and other conditions, it intends to offer for sale in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), $300 million aggregate principal amount of Convertible Senior Notes due 2031 (the “notes”). At.

Posted by Defense World Staff on Apr 8th, 2026

SG Americas Securities LLC increased its stake in shares of Atlas Energy Solutions Inc. (NYSE:AESI – Free Report) by 106.4% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 126,221 shares of the company’s stock after acquiring an additional 65,072 shares during the period. SG Americas Securities LLC owned 0.10% of Atlas Energy Solutions worth $1,189,000 as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. EverSource Wealth Advisors LLC acquired a new position in shares of Atlas Energy Solutions during the 2nd quarter valued at about $25,000. Quarry LP acquired a new position in shares of Atlas Energy Solutions during the 3rd quarter valued at about $26,000. Centerpoint Advisors LLC increased its holdings in shares of Atlas Energy Solutions by 270.6% during the 3rd quarter. Centerpoint Advisors LLC now owns 2,850 shares of the company’s stock valued at $32,000 after acquiring an additional 2,081 shares during the last quarter. BNP Paribas Financial Markets increased its holdings in shares of Atlas Energy Solutions by 43.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,823 shares of the company’s stock valued at $105,000 after acquiring an additional 2,369 shares during the last quarter. Finally, Tower Research Capital LLC TRC increased its holdings in shares of Atlas Energy Solutions by 34.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,954 shares of the company’s stock valued at $120,000 after acquiring an additional 2,314 shares during the last quarter. Institutional investors and hedge funds own 34.59% of the company’s stock.

Insider Buying and Selling In other Atlas Energy Solutions news, major shareholder Chris Scholla sold 8,912 shares of the firm’s stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $11.79, for a total value of $105,072.48. Following the sale, the insider owned 567,972 shares of the company’s stock, valued at $6,696,389.88. This trade represents a 1.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Gregory M. Shepard sold 130,000 shares of the firm’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $11.98, for a total value of $1,557,400.00. Following the completion of the sale, the insider directly owned 7,421,210 shares in the company, valued at $88,906,095.80. This trade represents a 1.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 238,912 shares of company stock worth $2,837,472 in the last ninety days. Insiders own 15.98% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research analysts have recently commented on the company. Barclays increased their price objective on Atlas Energy Solutions from $11.00 to $12.00 and gave the company an “underweight” rating in a report on Monday. Stifel Nicolaus set a $13.00 price objective on Atlas Energy Solutions in a report on Tuesday, February 24th. Citigroup lowered their price objective on Atlas Energy Solutions from $11.00 to $10.40 and set a “neutral” rating on the stock in a report on Tuesday, December 23rd. The Goldman Sachs Group increased their price objective on Atlas Energy Solutions from $8.00 to $9.00 and gave the company a “sell” rating in a report on Wednesday, March 4th. Finally, Royal Bank Of Canada increased their price objective on Atlas Energy Solutions from $12.00 to $13.00 and gave the company a “sector perform” rating in a report on Thursday, April 2nd. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $11.91.

Read Our Latest Research Report on Atlas Energy Solutions

Trending Headlines about Atlas Energy Solutions Here are the key news stories impacting Atlas Energy Solutions this week:

Positive Sentiment: Stephens reaffirmed a buy rating on AESI, supporting bullish investor views that the company’s operating outlook or valuation still merits upside. Stephens Remains a Buy on Atlas Energy Solutions (AESI) Neutral Sentiment: Context pieces and earnings commentary compare AESI’s Q4 results to peers — useful for longer‑term thesis but not an immediate catalyst. Unpacking Q4 Earnings: Atlas Energy Solutions (NYSE:AESI) In The Context Of Other Oilfield Services Stocks Negative Sentiment: The company priced an upsized private placement of convertible senior notes totaling $390M due 2031 at a 0.50% coupon — investors are selling on dilution concerns and potential share issuance if conversions occur. The low coupon reduces near‑term cash interest burden, but the size and convertibility are the main negative for the stock. Atlas Energy Solutions Inc. Announces Pricing of Upsized $390 Million Private Placement of 0.50% Convertible Senior Notes Due 2031 Negative Sentiment: Initial offering news and subsequent market coverage drove intraday selling and headlines that AESI shares were trading lower; several outlets flagged the convertible-debt news as the trigger. Why Atlas Energy Solutions (AESI) Shares Are Trading Lower Today Negative Sentiment: Barclays reaffirmed an underweight/sell view on AESI (while raising its price target modestly to $12), which reinforces downside sentiment among institutional sellers even though the PT change is small. Barclays Reaffirms Their Sell Rating on Atlas Energy Solutions (AESI) Atlas Energy Solutions Stock Performance AESI opened at $11.20 on Wednesday. The firm has a market capitalization of $1.39 billion, a P/E ratio of -27.99 and a beta of 0.62. The stock’s 50 day moving average price is $12.00 and its two-hundred day moving average price is $10.92. The company has a quick ratio of 1.16, a current ratio of 1.46 and a debt-to-equity ratio of 0.47. Atlas Energy Solutions Inc. has a 12-month low of $7.64 and a 12-month high of $14.93.

Atlas Energy Solutions Profile (Free Report)

Atlas Energy Solutions (NYSE: AESI) is an independent energy infrastructure company specializing in the development and operation of low-carbon and renewable natural gas (RNG) projects alongside complementary clean energy offerings. Through its diversified platform, the company seeks to deliver decarbonization solutions across heavy-duty transportation and industrial markets, leveraging technologies that reduce greenhouse gas emissions while providing reliable fuel and energy services.

The company’s core business activities encompass four primary segments.

Read More Five stocks we like better than Atlas Energy Solutions

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Atlas Energy Solutions Inc. (AESI - Free Report) shares rallied 9.8% in the last trading session to close at $13.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.2% loss over the past four weeks.

The surge can be attributed to Atlas Energy Solutions’ strong foothold in proppant and logistics services in the Permian Basin as well as the broader gain on crude prices, which reached nearly $90 per barrel due to the recent geopolitical developments, in the Middle East. Atlas provides technology to upstream companies to monitor, plan, and deliver materials automatically, saving time, reducing errors, and improving efficiency at oilfield sites. Tools like Opti Ordering and Opti Dispatch make the whole process faster, smarter, and more efficient than competitors. With global demand for oil and energy expected to grow, the company is expected to witness sustained demand for its oilfield equipment and services, supporting future earnings. The company’s strong foothold as an oil and gas equipment and service provider, coupled with rising demand for oil and energy, has been a significant revenue driver.

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -325%. Revenues are expected to be $257.32 million, down 13.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Atlas Energy Solutions Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AESI going forward to see if this recent jump can turn into more strength down the road.

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

Atlas Energy Solutions Inc. belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Occidental Petroleum (OXY - Free Report) , closed the last trading session 0.8% higher at $55.83. Over the past month, OXY has returned -4.1%.

For Occidental, the consensus EPS estimate for the upcoming report has changed +115% over the past month to $0.54. This represents a change of -37.9% from what the company reported a year ago. Occidental currently has a Zacks Rank of #1 (Strong Buy).

The market expects Atlas Energy Solutions Inc. (AESI - Free Report) 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 is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 4. 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 -387.5%.

Revenues are expected to be $255.07 million, down 14.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 16.28% 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 an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

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 Atlas Energy Solutions Inc.?For Atlas Energy Solutions Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.07%.

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

So, this combination makes it difficult to conclusively predict that Atlas Energy Solutions Inc. will 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 Atlas Energy Solutions Inc. would post a loss of$0.22 per share when it actually produced a loss of -$0.22, delivering no surprise.

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.

Atlas Energy Solutions Inc. doesn't appear 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.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Oil and Gas - Integrated - United States industry, DT Midstream (DTM - Free Report) , is soon expected to post earnings of $1.11 per share for the quarter ended March 2026. This estimate indicates a year-over-year change of +4.7%. This quarter's revenue is expected to be $325.2 million, up 7.3% from the year-ago quarter.

The consensus EPS estimate for DT Midstream has been revised 1.1% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.53%.

When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that DT Midstream will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

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

AUSTIN, Texas--(BUSINESS WIRE)--Atlas Energy Solutions Inc. (NYSE: AESI) (“Atlas” or the “Company”) today reported financial and operating results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights Total revenue of $265.5 million, Net loss of ($47.3) million and Adj. EBITDA of $28.4 million, in-line with previously announced range of $26-30 million Net cash provided by operating activities of $19.0 million and Adj. Free Cash Flow of $3.8 million Executed Global Framework.

Atlas Energy Solutions Inc. (AESI - Free Report) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.23. 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 -56.52%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.22, delivering no surprise.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Atlas Energy Solutions Inc., which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $265.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.25%. This compares to year-ago revenues of $297.59 million. The company has topped consensus revenue estimates two 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.

Atlas Energy Solutions Inc. shares have added about 81.9% since the beginning of the year versus the S&P 500's gain of 5.6%.

What's Next for Atlas Energy Solutions Inc.?While Atlas Energy Solutions Inc. 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 Atlas Energy Solutions 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 -$0.13 on $271.47 million in revenues for the coming quarter and -$0.50 on $1.08 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, Oil and Gas - Integrated - United States is currently in the top 21% 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, Occidental Petroleum (OXY - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.

This oil and gas exploration and production company is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of -28.7%. The consensus EPS estimate for the quarter has been revised 28.9% higher over the last 30 days to the current level.

Occidental Petroleum's revenues are expected to be $5.5 billion, down 19.7% from the year-ago quarter.

Fears of hotter-than-expected inflation were realized today. Consumer Price Index (CPI) data revealed that headline CPI rose 0.6% month-over-month in April. This pushed the year-over-year figure to 3.8%, which constitutes the highest reading since May 2023. To beat the CPI heat, three distinct natural resource ETFs offer varying ways to hedge against higher inflation.

Natural resources such as energy, metals, and agriculture have historically exhibited inflation protection characteristics. As the cost of living rises, prices of the raw materials that fuel and feed the world typically follow in tow.

For investors, a pivot towards real assets provide a natural hedge against eroding purchasing power. The S&P Global Natural Resources Index is also outpacing the broader S&P 500 by over 12% year to date, which makes exposure all the more enticing. ETFs can provide ease of exposure to natural resources through a flexible investment vehicle.

Key Takeaways With April’s CPI jumping to 3.8% — the highest level in nearly three years — natural resource ETFs are back in the spotlight as essential tools for preserving purchasing power through real asset exposure.

NDIV offers high income via covered calls (10%+ distribution rate), GUNR provides broad global upstream index exposure, and CSNR offers the flexibility of active management.

As the market prepares for a transition at the Federal Reserve, the persistent difficulty in tamping down inflation continues to create a favorable environment for energy, metals, and agriculture producers.

^SNRU data by YCharts

NDIV: Income-Focused Exposure Up 37% year-to-date, the Amplify Energy & Natural Resources Dividend Income ETF (NDIV) has been a standout performer. With a 30-day SEC yield of 4.67% and a distribution rate of of 10.79% (both as of April 30), the fund also provides income to boot in this higher-for-longer inflationary environment. 

The fund targets high-dividend energy and natural resource equities while overlaying a strategic covered call strategy. This approach aims for an annualized income of 10% or more, providing a significant yield cushion even when volatility hits the broader market.

NDIV’s covered call methodology can be particularly effective when markets trend higher or even sideways. The fund generates monthly option premiums while maintaining exposure to production giants like Atlas Energy Solutions (AESI), which is its top holding (as of May 12). With the energy sector poised to benefit from AI-driven power demands, NDIV’s blend of growth and diversified income makes it a compelling choice.

See more: Energy, Materials Propel NDIV to Strong March Performance

GUNR: Capturing Pricing Power Upstream To capture exposure to the upstream portion of the supply chain, the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR) is an ideal ETF play. Furthermore, those looking for a global mandate in an index fund that captures this upstream exposure will appreciate the country diversification of GUNR. 

GUNR targets companies involved in the exploration and extraction of raw materials. Given this focus, the fund essentially captures pricing power at the source, which offers a way to hedge against the rising tide of energy prices. When global demand rises, price pressures first occur at the resource level where GUNR targets companies before it trickles down to manufacturers and consumers.

The fund is highly diversified with its over 180 holdings (as of May 11). By holding energy giants like Exxon Mobil and BHP Group, GUNR provides a direct link to the underlying economics of scarcity.

CSNR: An Actively Managed Option For those seeking an actively managed fund, the Cohen & Steers Natural Resources Active ETF (CSNR) is worth a look. Active management can be helpful in the natural resources space to navigate challenges associated with geopolitical tensions or supply chain disruptions that can upend markets quickly. As such, the flexibility of active management is a welcome benefit.

CSNR uses a proprietary risk-parity framework that diversifies exposure across energy value chains, metals, mining, and agriculture. As mentioned, the strategy can pivot its weightings based on real-time scarcity dynamics due to its actively managed portfolio. The fund has 65 holdings (as of March 31), which includes major energy players like Exxon Mobil Corporation alongside metal mining giants like Newmont Mining Corporation.

Tailwinds for Natural Resources? With the U.S. Senate expected to confirm Kevin Warsh as the next Federal Reserve chair, grappling with inflation will be one of his primary tasks at the central bank helm. Tamping down inflation this year has been an elusive goal, but this can create further tailwinds for natural resources through the rest of this year.

For now, this bodes well for natural resource ETFs. Whether through the income-heavy covered call strategy of NDIV, the upstream focus of GUNR, or the active management of CSNR, investors have optionality when it comes to turning inflation into a performance driver.

Feature Amplify Energy & Natural Resources Dividend Income ETF FlexShares Global Upstream Natural Resources Index Fund Cohen & Steers Natural Resources Active ETF Ticker NDIV GUNR CSNR Issuer Amplify ETFs Northern Trust (FlexShares) Cohen & Steers Inception Date August 24, 2022 September 16, 2011 February 4, 2025 Expense Ratio 0.59% 0.46% 0.50% Assets Under Management ~$28 Million ~$7.4 Billion ~$97 Million Number of Holdings 40 181 65 Underlying Index EQM Natural Resources Dividend Income Index Morningstar Global Upstream Nat Res Index Active Management (No Index) Selection Universe Global Natural Resource Dividend Payers Global Upstream Energy, Metals & Agriculture Global Real Assets & Commodity Equities For more news, information, and analysis, visit the Thematic Investing Content Hub.

VettaFi LLC (“VettaFi”) is the index provider for NDIV, for which it receives an index licensing fee. However, NDIV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NDIV.

On the May 29, 2026 episode of Mad Money, a caller named Patrick from Virginia brought Jim Cramer a problem most investors would love to have. He bought NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) back in 2017 when Jim Cramer called it “the stock of our generation,” and over the next eight years, the position grew to roughly 60% of his individual stock portfolio. Patrick has spent the past year actively trimming the position and asked Cramer whether GE Vernova (NYSE:GEV) made sense as a stock to diversify into.

Cramer’s answer doubled as both a green light on the new pick and a defense of the original thesis: “I still like NVIDIA very much. I’m not backing away from NVIDIA.”

The 60% Problem A single stock growing into majority control of a portfolio is the kind of outcome long-term investors fantasize about, and few know how to manage. Selling can be difficult because of taxes, conviction in the business, or simply the emotional attachment that comes from owning a major winner for years.

Patrick’s approach stood out because he spent a year trimming the position in stages. That allowed him to reduce concentration risk without abandoning a stock that helped build his portfolio in the first place.

Cramer’s Take on NVIDIA NVIDIA remains one of the market’s defining winners. The stock closed at $211.14 in the most recent session, giving the company a market capitalization of roughly $5.1 trillion. Shares have gained 51.7% over the past year and more than 13% year to date.

The business continues to produce results that support the bullish narrative. In Q1 FY2027, NVIDIA reported $81.6 billion in revenue, up 85.2% year over year, while Data Center revenue surged 92% to $75.25 billion. Management authorized an additional $80 billion in share repurchases.

CEO Jensen Huang described the demand environment in unmistakable terms: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” The AI boom that attracted investors years ago continues to drive growth across NVIDIA’s business today.

Why Cramer Likes GE Vernova Cramer also expressed enthusiasm for Patrick’s diversification target. “I think GE Vernova is absolutely terrific. We know that it’s come down nicely from its top. It’s at a very good level.” While GE Vernova has pulled back nearly 9% over the past month, the stock remains up more than 105% over the last year. The appeal goes beyond the recent price action.

The company sits on the other side of the AI buildout. While NVIDIA supplies the chips powering AI systems, GE Vernova provides much of the electrical infrastructure needed to run them. Data centers require enormous amounts of power, and demand for generation, transmission, and grid equipment has become one of the biggest secondary beneficiaries of the AI boom.

During Q1 2026, GE Vernova booked $2.4 billion of data center-related electrification equipment orders, surpassing the total recorded during all of 2025. Total orders climbed 71% organically to $18.3 billion, and management raised full-year free cash flow guidance to $6.5 billion to $7.5 billion.

GE Vernova would allow Patrick to reduce his concentrated NVIDIA position while maintaining exposure to the same long-term AI infrastructure theme.

A Market Looking for New Leaders Cramer ended the discussion with a broader observation about the market: “This market needs a few more catalysts to broaden it out besides the data center. Maybe we’ll get that in June. Got to hope so, because you can’t just keep trading the same stocks.”

A relatively small group of AI-related companies has driven a large portion of market gains and earnings growth expectations in recent years. For investors sitting on oversized winners, that means position sizing might deserve as much attention as stock selection.

Key Takeaways ETN is seeing strong AI data center demand, with Electrical Americas revenues up about 50% YoY. CAT plans to double output as data center power demand drives strong engine order levels.GEV benefits from AI-driven needs for gas turbines, grid upgrades and new power capacity. The artificial intelligence (AI) frenzy remains intact as the AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. Research firm McKinsey & Co. has estimated that global AI-powered data center infrastructure capex will reach around $7 trillion by 2030.

The four major hyperscalers raised their AI capital expenditure budget to $750 billion in 2026 from $670 billion estimated earlier. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027. 

Besides tech stocks, several non-tech stocks are also flourishing this year supported by massive AI-powered data center infrastructure requirements. At this stage, we have identified five stocks that investors should keep a tab on for long-term price appreciation.

These stocks are: Eaton Corp. plc (ETN - Free Report) , Caterpillar Inc. (CAT - Free Report) , Freeport-McMoRan Inc. (FCX - Free Report) , GE Vernova Inc. (GEV - Free Report) and Alcoa Corp. (AA - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of the five stocks mentioned above year to date.

Image Source: Zacks Investment Research

Eaton Corp. plcEaton is benefiting from strong electrification-driven demand, reflected in rising orders and an expanding backlog. The move toward higher-density AI infrastructure increases demand for grid-to-chip power and cooling solutions, which fits ETN’s electrical portfolio and recent cooling acquisition. 

In first-quarter 2026, Electrical Americas data center revenues increased about 50% year over year, and management highlighted the Eaton Beam Rubin DSX platform developed with NVIDIA as an end-to-end blueprint for AI factories. 

ETN also discussed progress toward direct-current architectures and solid-state transformer development, including quoting on higher-voltage DC projects and expecting orders in the second half of 2026 for later shipments.

Eaton has an expected revenue and earnings growth rate of 15.3% and 10.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.

Caterpillar Inc.Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment.

CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.

Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 30 days.

Freeport-McMoRan Inc.Freeport-McMoRan has been benefiting significantly from the massive growth of AI-powered data centers. FCX is a leading copper mining entity. The AI-powered data centers required a huge amount of copper, which is an essential component of power distribution, cooling networks, and dense server interconnections.

FCX’s mining operations are - North America copper mines, South America mining, Indonesia mining and Molybdenum. FCX’s copper production for 2025 was 3,383 million pounds. Indonesia, North America and South America accounted for roughly 39%, 31% and 30% of its copper production, respectively, in 2025.

Freeport-McMoRan has an expected revenue and earnings growth rate of 5.1% and 44.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% in the last 60 days.

GE Vernova Inc.GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing SMRs. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification, and grid expansion.  

The rapid buildout of AI data centers is forcing utilities to upgrade transmission networks and add new generation capacity, especially natural gas plants that can provide reliable baseload power. This trend is creating strong demand for GEV’s gas turbines and grid solutions.

GE Vernova has an expected revenue and earnings growth rate of 19.1% and 71.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.

Alcoa Corp.Alcoa could be a potential dark horse for the AI-driven data center boom. Several critical data center units like cooling towers, server racks, radiators and many more are made out of aluminum. Solar panels, wind turbines and climatization units inside data centers are also built with aluminum.

The external economies of scale that AI-powered data centers will create for aluminum and other metal industries have not yet been revealed. Moreover, Alcoa is considering unlocking value from selling its temporarily or permanently closed sites with large existing power capacities, to big techs to convert them into AI data centers. 

Alcoa has an expected revenue and earnings growth rate of 22% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 8.5% over the last 30 days.

Key Takeaways GE Vernova's Power orders jumped 59% organically to $10 billion in first-quarter 2026.GEV signed 21 GW of gas equipment orders, lifting backlog and slot reservations to 100 GW.Utilities are reserving turbine capacity years ahead as rising power demand tightens availability. GE Vernova Inc. (GEV - Free Report) is benefiting from the widening gap between global gas turbine demand and industry supply as utilities and power producers seek reliable generation capacity to support rising electricity consumption.

The company’s Power segment is experiencing strong momentum as demand for dispatchable power continues to accelerate. Artificial intelligence data centers, industrial electrification, and overall economic growth are all contributing to increased electricity demand. In the first quarter of 2026, Power orders increased 59% organically year over year to $10 billion, reflecting robust demand for gas power equipment and services.

GEV is also benefiting from increasing competition among utilities to secure gas turbine manufacturing slots. During the quarter, the company signed 21 gigawatts (GW) of gas equipment orders, helping expand its gas equipment backlog from 40 GW to 44 GW. Gas turbine slot reservations increased from 43 GW to 56 GW, bringing total backlog and slot reservations to 100 GW.

To secure access to turbine manufacturing capacity, utilities and independent power producers are increasingly making reservations years before their projects are scheduled for completion. With electricity demand forecasts continuing to rise, turbine availability has emerged as a key constraint across many power markets.

GE Vernova's gas power business is well positioned to capitalize on this trend due to its large installed base, global service network and manufacturing capabilities. The company’s Power segment provides gas, nuclear, and hydro technologies that support reliable and flexible electricity generation, helping customers address growing power demand while maintaining grid stability.

Companies Benefiting From Rising Power DemandAlongside GE Vernova, several other companies are also well positioned to benefit from rising electricity demand and the growing need for additional generation capacity. These are discussed below:

Constellation Energy (CEG - Free Report) continues to benefit from increasing demand for reliable baseload generation as data centers and large commercial customers seek long-term power supply agreements.

Vistra Corp. (VST - Free Report) is witnessing growing demand for its diversified generation portfolio as electricity consumption rises across several key U.S. markets.

GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 EPS indicates an increase of 71.91% and that for 2027 EPS implies a decline of 19.94% year over year.

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GEV Stock Trading at a PremiumGEV is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 34.82X compared with the industry average of 21.36X.

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GEV Stock’s Price PerformanceIn the past three months, the company’s shares have risen 15.2% against the industry’s 0.8% decline.

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

Key Takeaways MIR expands next-gen nuclear reach; radiation tech was selected for the Artemis II mission.BWXT won contracts worth more than $1.4B supporting the U.S. Naval Nuclear Propulsion Program.GEV benefits from AI-driven power demand, supporting gas turbines and grid solutions. Artificial intelligence (AI)-powered data centers are now growing by leaps and bounds. The AI infrastructure space remains rock solid, supported by an extremely bullish demand scenario. The galloping requirement of electricity for data centers has significantly boosted the demand for companies that have access to nuclear power.

This in turn has bolstered the demand for original equipment manufacturers (OEMs) in the nuclear energy space. Here we have selected three such OEMs that have a lucrative AI-powered product portfolio for nuclear energy. 

These companies are: Mirion Technologies Inc. (MIR - Free Report) , BWX Technologies Inc. (BWXT - Free Report) and GE Vernova Inc. (GEV - Free Report) . The companies have solid price upside potential in the short term. Currently they carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of the three stocks mentioned above year to date.

Image Source: Zacks Investment Research

Mirion Technologies Inc. Mirion Technologies is actively involved in digital innovation, particularly within the nuclear and radiation safety sectors. The company focuses on integrating digital technologies into its radiation safety solutions.

MIR is committed to expanding its reach in the next generation of nuclear energy by working with small modular reactor developers to solve essential nuclear measurement, safety and security challenges.

In March 2026, MIR highlighted a major milestone as its advanced radiation monitoring technology was selected for Artemis II. The company’s Crew Active Dosimeters will be carried by astronauts during the mission, providing real-time radiation exposure data. This achievement underscores MIR’s strong position in high-reliability applications, particularly in space and defense.

Mirion Technologies has an expected revenue and earnings growth rate of 23.1% and 21.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.8% over the last 60 days. 

The short-term average price target of brokerage firms represents an increase of 56.7% from the last closing price of $17.81. The brokerage target price is currently in the range of $26-$29. This indicates a maximum upside of 62.8% and no downside. The risk/reward ratio is extremely favorable. 

BWX Technologies Inc.BWX Technologies operates across nuclear technologies, reactor systems and precision manufacturing solutions supporting government and commercial nuclear activities. BWXT develops nuclear reactors, fuel-related systems and specialized components used in nuclear operations and advanced technology programs. BWXT also continues to aid nuclear infrastructure programs tied to long-term reactor and energy system requirements.

BWXT benefits from sustained demand for nuclear propulsion and reactor-related programs. In May 2026, the company secured contracts valued at more than $1.4 billion supporting the U.S. Naval Nuclear Propulsion Program. The awards include long-lead material procurement, reactor system components and manufacturing work tied to nuclear-powered naval platforms, strengthening BWXT’s position in a critical segment of the nuclear industry.

BWX Technologies has an expected revenue and earnings growth rate of 17.8% and 17%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2% over the last 30 days. 

The short-term average price target of brokerage firms represents an increase of 23.9% from the last closing price of $188.39. The brokerage target price is currently in the range of $200-$250. This indicates a maximum upside of 35.4% and no downside. The risk/reward ratio is extremely favorable. 

GE Vernova Inc.GE Vernova stands to gain from global nuclear power energy momentum, particularly through its strong forte in producing SMRs. GEV cemented its standing as one of the biggest long-term winners in the AI-boosted energy boom across nuclear, natural gas, electrification, and grid expansion.  

The rapid buildout of AI data centers is forcing utilities to upgrade transmission networks and add new generation capacity, especially natural gas plants that can provide reliable baseload power. This trend is creating strong demand for GEV’s gas turbines and grid solutions.

GE Vernova has an expected revenue and earnings growth rate of 19.1% and 71.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days.

The short-term average price target of brokerage firms represents an increase of 29% from the last closing price of $950.54. The brokerage target price is currently in the range of $836-$1,400. This indicates a maximum upside of 47.3% and a downside of 12%. The risk/reward ratio is 1:3.9. 

In the latest trading session, GE Vernova (GEV - Free Report) closed at $959.36, marking a -1.06% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 1.21%, and the tech-heavy Nasdaq lost 0.89%.

The the energy business spun off from General Electric's stock has dropped by 11.46% in the past month, falling short of the Oils-Energy sector's loss of 2.67% and the S&P 500's gain of 5.39%.

Market participants will be closely following the financial results of GE Vernova in its upcoming release. The company's upcoming EPS is projected at $3.01, signifying a 61.83% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $10.8 billion, indicating a 18.49% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $30.41 per share and revenue of $45.32 billion, which would represent changes of +71.91% and +19.05%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for GE Vernova. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. GE Vernova currently has a Zacks Rank of #3 (Hold).

Looking at valuation, GE Vernova is presently trading at a Forward P/E ratio of 31.89. This denotes a premium relative to the industry average Forward P/E of 17.54.

It is also worth noting that GEV currently has a PEG ratio of 1.77. 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. The Alternative Energy - Other industry had an average PEG ratio of 2.3 as trading concluded yesterday.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Key Takeaways GEV gained 47.2% YTD, driven by rising electricity demand and power infrastructure opportunities.GEV won a 100 MW India wind project and gained approval to pursue more wind opportunities.GEV expects tariff-related costs of $250-$350 million in 2026 despite mitigation efforts. GE Vernova Inc.’s (GEV - Free Report) shares have risen 47.2% year to date, outperforming its Zacks Alternate Energy – Other industry’s growth of 17.1%. The company is benefiting from a growing imbalance between global gas turbine demand and available industry supply, as utilities and independent power producers increasingly pursue reliable generation capacity to meet surging electricity demand.
 

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Other alternative energy stocks, such as Crescent Energy Company (CRGY - Free Report) and Bloom Energy (BE - Free Report) , have also outperformed the industry during the same period. Shares of Crescent Energy and Bloom Energy have risen 45.4% and 234.2%, respectively.

Considering GE Vernova’s outperformance, investors might be left wondering if this is a good time to add GEV stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Factors Acting in Favor of GEVGE Vernova is working to improve profitability in its wind business through cost controls, better project selection, and operational improvements. Rising electricity demand, driven by data center expansion and AI adoption, is creating growth opportunities across its gas turbine, grid solutions and power infrastructure businesses.

In June 2026, GE Vernova secured an order from Powerica Limited to supply 28 of its newly launched 3.8 MW-154m onshore wind turbines for the 100 MW Botad Wind Farm in Gujarat. It represents GE Vernova’s efforts to expand its onshore wind portfolio in one of the world's fastest-growing renewable energy markets.

The company also received approval under India's Approved List of Models and Manufacturers, a mandatory certification for wind turbine manufacturers participating in the Indian market. This approval effectively allows GE Vernova to compete for a broader range of wind projects across the country.

In May 2026, GE Vernova announced that it has signed a definitive agreement to acquire Robotech Automation. Robotech specializes in robotics integration, automation engineering, and customized manufacturing solutions, and has already been working with GE Vernova on projects within its supply chain and factories. The acquisition is intended to accelerate GE Vernova's robotics and automation capabilities across its manufacturing network.

In May 2026, GE Vernova and ENKA announced the start of commercial operations at the 852 MW K??rklareli power plant in K??rklareli. This validates the company’s advanced 9HA.02 gas turbine technology in a new international market, strengthening its reputation for high-efficiency power generation. The K??rklareli plant is expected to operate at more than 63% efficiency, making it one of the country’s most efficient gas plants and showcasing GE Vernova’s ability to help modernize aging power infrastructure.

Challenges Facing GEVThe company relies on complex global supply networks for components used in its gas turbines, wind turbines and grid infrastructure. It purchases nearly $20 billion in materials and components sourced from more than 100 countries. Disruptions in the availability of raw materials, along with logistical delays, have affected and may adversely impact GE Vernova’s production timelines and raise its input costs, hurting its bottom line.

Throughout 2025 and 2026, the United States and other countries imposed global tariffs, resulting in additional costs. The current estimated total cost impact of these global tariffs is nearly $250-$350 million in 2026, after taking into account contractual protections and mitigating actions.

GEV Stock’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates an increase of 109.29% over the past 60 days. GEV’s long-term (three to five years) earnings growth rate is 18%.
 

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The Zacks Consensus Estimate for Crescent Energy’s 2026 EPS indicates an increase of 28.65% in the past 60 days. The bottom-line estimate for Bloom Energy’s 2026 EPS implies an increase of 50.39% in the past 60 days.

GEV’s Earnings Surprise HistoryThe company beat on earnings in three of the trailing four quarters and missed in one, delivering an average surprise of 83.61%.

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GEV’s Return on Equity Higher Than IndustryThe company’s trailing 12-month return on equity of 43.97% is higher than the industry average of 6.94%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.

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GEV Stock Trades at a PremiumGE Vernova is currently trading at 34.63X, a premium compared to its industry’s 21.38X on a forward 12-month P/E basis.

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What Should Investors Do Now?GE Vernova is benefiting from rising electricity demand driven by data centers and AI-related power needs. The company is also strengthening its growth prospects through expansion in India's wind market, broader eligibility for renewable projects, and successful deployment of advanced gas turbine technology in international power infrastructure projects.

Given its current premium valuation, new investors may prefer to wait for a better entry point. Those who already have this stock may stay invested, considering its earnings growth and strong ROE. GEV currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.