Track market-moving stories before they get noisy

What happened Boston Scientific Corporation (NYSE: BSX) said Joseph M. Fitzgerald will become executive vice president and chief operating officer on Jan. 1, 2027. He is now executive vice president and group president, Cardiovascular, a role he has held since May 2022. The company also said it will create three reportable segments, Interventional Therapies, Rhythm Solutions and MedSurg, on the same date.

Lance Bates will lead Interventional Therapies, Nick Spadea-Anello will lead Rhythm Solutions and Stephen Morse will lead MedSurg and Asia Pacific. All three will report to Fitzgerald. Interventional Therapies will include the Penumbra business after the anticipated close of the acquisition. The filing also says Fitzgerald joined Boston Scientific in 1990. Emily Woodworth (Collins) will remain chief accounting officer until March 1, 2027, when Mark Bickel takes over.

Key numbers Metric Latest Change Source Reportable segments 3 segments Boston Scientific press release Annual base salary $1.05 million SEC 8-K Annual bonus target 110% SEC 8-K 2027 annual equity award $7 million SEC 8-K Equity vesting 25% per year SEC 8-K Read more: Boston Scientific (BSX) stock analysis and investment case Why it matters The new operating model is meant to give the company more room to focus on long-term growth priorities and let businesses move faster and stay close to customers and patients. OptimistFi's case is that Boston Scientific turns recurring demand for less-invasive interventional medical devices, clinical-led product innovation and scale into durable revenue growth, expanding margins and rising free cash flow.

The filing is mixed for that view because it changes management and reporting lines, but it stops at structure. Fitzgerald's offer letter sets a $1.05 million base salary, a 110% annual bonus target and a $7 million equity award for 2027, which gives investors a pay baseline for the new COO.

Fitzgerald can defer up to 75% of each annual bonus award, and the equity grant vests 25% per year. The retirement plan benefit is capped at 36 months. The counterweight is that the reorganization is future-effective, and the Penumbra segment depends on the anticipated close of the acquisition. The filing also says Woodworth's transition is not due to any disagreement with the company.

Browse: stock research on every company OptimistFi covers

What's next On Jan. 1, 2027, Fitzgerald is scheduled to take the COO role and the three reportable segments are set to begin. Boston Scientific said the 2027 equity award is expected in February 2027.

Woodworth and Bickel are scheduled to complete the chief accounting officer transition on March 1, 2027. A smooth rollout and the anticipated Penumbra close would support the new setup. A delay in the acquisition would leave the structural shift without an operating impact.

More from OptimistFi BSX stock: the Boston Scientific thesis, its status and the next test to watch United States Brent Oil Fund, LP (NYSE Arca: BNO) Tracks a Supply Gap Alpha Teknova, Inc. (NASDAQ: TKNO) Adds Regulatory Support for PluriFreeze Meta Platforms, Inc. (NASDAQ: META) Has a Conditional $18 Billion Bill Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC 8-K — Current report covering Fitzgerald's promotion, segment changes and compensation terms. Boston Scientific press release exhibit 99.1 — Press release announcing Fitzgerald's COO appointment and the three reportable segments. Read the full OptimistFi thesis on Boston Scientific Corporation: https://optimistfi.com/stocks/BSX

See what would break the Boston Scientific Corporation thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Boston Scientific Corporation investment case, its status and the next test to watch live on the Boston Scientific Corporation thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.

Paychex just posted a dividend yield that makes income investors stop and stare, but a closer look at Q1 cash flow and two underappreciated risks raises a question the company has not fully answered yet.

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Paychex (NASDAQ:PAYX | PAYX Price Prediction) stock has fallen 16.11% over the past month to $102.10. The slide came even though fiscal Q1 2027 adjusted EPS of $1.34 beat the $1.32 consensus. At that price, the annualized forward dividend of $4.76 yields roughly 4.66%. When a market leader yields that much, investors start asking whether the payout can hold.

Recurring Payroll Revenue Funds the Payout Paychex sells payroll, HR and benefits outsourcing to small and mid-sized businesses. Clients run payroll every pay period, so the revenue repeats. That repeat revenue is what pays the dividend. On the Q1 call, management said:

“Our business fundamentals remain strong. We continue to operate from a position of financial strength supported by our durable recurring revenue, strong cash generation, and disciplined investment.”

Management added, “We continue to get price realization. Retention continues to improve.” PEO and Insurance Solutions revenue rose 12% to $367.6M, and PEO retention hit a record.

An 89% Payout Ratio Looks Scary Until You Check the Cash Trailing dividends of $4.54 against GAAP EPS of $5.10 put the payout ratio near 89%. Automatic Data Processing (NASDAQ:ADP) pays $6.64 on $10.94 of EPS, about 61%, for a 2.55% yield. Workday (NASDAQ:WDAY) pays no dividend. It puts its cash back into growth and trades at 38 times trailing earnings, compared with Paychex at 20.

In fiscal 2026, operating cash flow of $2.5567B minus capex of $234.9M left $2.32B in free cash flow. Dividends of $1.5896B used about 68% of it, and Paychex still bought back 5.6M shares for $611.0M. Capex has stayed below operating cash flow in every fiscal year since 2007. Our view: the high payout ratio is what an asset-light, recurring-revenue model can safely carry, so we read it as a sign of strength.

The record backs that up, with one warning. The quarterly dividend rose from $0.62 in 2020 to $1.19, and the latest raise was about 10%. But the payment stayed flat at $0.31 from 2009 through 2011. In a severe recession, Paychex froze the dividend rather than cutting it.

Two Risks Most Holders Underrate Client head count. Part of Paychex’s revenue depends on how many people its clients employ. In a downturn, existing clients shrink even if none of them leave. Fiscal 2027 guidance assumes flat employment levels, and management called the job market “low fire, low hire.”

Interest on client funds. Paychex collects payroll cash before it pays it out and earns interest while it holds the money. That income was $49.8M in Q1, and full-year guidance is $200-210M, which reflects the most recent 25 basis point Fed hike. When the Fed cuts rates, this income shrinks almost dollar for dollar. Borrowing adds pressure too: the Paycor deal added $5.0B in debt, and total borrowings were about $4.6 billion at quarter end.

Verdict: Durable, With a Cash Flow Tripwire The dividend is dependable. Expect future raises to slow toward the 7-9% adjusted EPS growth guidance rather than repeat double-digit jumps. Q1 operating cash flow of $413.5M fell short of $424.1M in dividends, and management blamed the timing of client and corporate tax payments. If cumulative operating cash flow for the first six months still trails cumulative dividends when the fiscal Q2 report comes out in December, the timing explanation stops holding up. The 89% payout ratio would then become a real concern.

Contact [email protected] for any questions or corrections.

Hess Midstream Partners NYSE: HESM said it has entered a definitive agreement with Chevron to become an independent, publicly owned multi-basin midstream company, expanding beyond its Bakken operations through the acquisition of Chevron’s DJ Basin midstream assets.

Under the agreement, Hess Midstream will simplify its Bakken commercial arrangements with Chevron. The revised contracts will reduce rates from 2027 through 2033, extend contract terms through 2045, and replace multiple volume-based minimum volume commitments with a basin-wide minimum revenue commitment, or MRC. The MRC will be established three years in advance and, once set for a given year, may be increased but not decreased based on Chevron’s updated annual development plans.

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The MRCs for 2027 through 2029 have been set based on a two-rig development program. Hess Midstream said all fees will move to a fixed-fee structure with inflation escalators.

DJ Basin Assets and Ownership Changes In exchange for the Bakken contract changes and a $200 million cash payment to Chevron at closing, which Hess Midstream expects to fund through its revolving credit facility, the company will acquire DJ Basin midstream assets and Chevron’s full ownership interest in Hess Midstream, including the general partner.

The DJ Basin assets include crude oil gathering and storage infrastructure, gas and water gathering systems, full ownership of the Black Diamond gathering system, and a 20% interest in the Saddlehorn interstate crude pipeline. Saddlehorn connects Colorado production to the Cushing storage hub in Oklahoma.

Jonathan Stein, Hess Midstream’s chief executive officer, said Chevron’s exit will reduce the total unit share count by about 40%, lowering total distributions and supporting accretion on an adjusted EBITDA-per-share basis. Following the transaction, Hess Midstream will be owned entirely by public investors and will remain an Up-C structure rather than converting to a C corporation.

Stein will continue as CEO. The initial board will have seven members, including Stein and the company’s three current independent directors. John P. Reddy, one of the existing independent directors, will become board chairman. The company said it will begin searching for three additional directors and that public investors will elect directors beginning in 2028.

Expanded Operating Footprint Hess Midstream said the DJ assets will approximately triple its crude gathering throughput and increase gas gathering throughput by more than 30%. The company expects third-party volumes to rise to approximately 20% of total volumes following the deal.

The DJ gathering systems have approximately 400,000 barrels per day of crude throughput capacity, 300 million cubic feet per day of natural-gas gathering capacity, and two terminals with 420,000 barrels of combined storage capacity, according to the company. The systems connect to major DJ Basin pipelines including Saddlehorn, White Cliffs, Grand Mesa and Pony Express.

Stein said Hess Midstream expects to gather nearly all of Chevron’s crude volumes in both the Bakken and DJ Basin. He added that the DJ platform is largely built out and could support efforts to win additional third-party business with limited capital investment.

Chevron intends to reduce its Bakken activity from three rigs to two in December. As a result, Hess Midstream expects Bakken volumes to decline by approximately 5% through 2027 before reaching a plateau in 2028.

Financial Policy and Preliminary 2027 Outlook Chief Financial Officer Mike Chadwick said approximately 70% of post-transaction revenue will have downside protection, supported by Bakken MRCs and Chevron ship-or-pay commitments, primarily associated with DJ long-haul pipeline capacity.

Hess Midstream issued preliminary 2027 guidance calling for adjusted EBITDA of $900 million at the midpoint and capital spending of $125 million. Planned capital expenditures include about $75 million in the Bakken, including a scheduled turnaround at the Tioga Gas Plant, and $50 million in the DJ Basin.

The company expects a 75% gross adjusted EBITDA margin and said it anticipates approximately $575 million of adjusted free cash flow at the midpoint of its 2027 outlook. Chadwick said the company expects about $160 million of adjusted free cash flow after distributions at the midpoint.

Management said GAAP accounting for the contract modification will require certain consideration to be recorded as deferred revenue and amortized through 2045. However, Chadwick said the net impact of deferred-revenue adjustments on 2027 EBITDA is expected to be relatively small, while adjusted free cash flow will exclude non-cash deferred-revenue accounting impacts.

The company plans to grow its distribution by 5% annually through the fourth-quarter 2026 distribution, resulting in approximately 7% year-over-year growth in 2026. It expects to maintain the distribution at that fourth-quarter 2026 level during 2027, representing approximately 2% annual growth, while remaining free-cash-flow positive.

Hess Midstream’s priorities after maintaining the distribution include pursuing accretive growth opportunities, preserving balance-sheet strength and considering additional shareholder returns. The company is targeting long-term leverage of 3.5 to 3.75 times adjusted EBITDA, compared with preliminary 2027 leverage guidance of 3.75 to 4.0 times. The transaction is expected to close at the end of the year, after which the company plans to provide updated 2027 guidance.

About Hess Midstream Partners (NYSE:HESM)Hess Midstream Partners LP NYSE: HESM is a fee-based midstream energy company that owns and operates infrastructure supporting crude oil, natural gas and produced-water production in the Bakken Shale of North Dakota. The partnership primarily serves Hess Corp. and other producers operating in the region.

Its assets include systems for gathering and processing natural gas, gathering and transporting crude oil, and handling and disposing of produced water. Hess Midstream also provides storage, terminal and transportation services, helping connect production sites with downstream pipelines, rail facilities and other market outlets.

The company was formed to own midstream assets previously developed or operated by Hess and began trading publicly in 2017.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Hess Midstream Partners Right Now?Before you consider Hess Midstream Partners, you'll want to hear this.

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The Law Offices of Frank R. Cruz Announces Investigation of Primoris Services Corporation (PRIM) on Behalf of Investors The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of acquired Primoris Services Corporation ("Primoris" or the "Company") (NYSE: PRIM) concerning whether the board breached its fiduciary duties to shareholders.

IF YOU ARE A PRIMORIS SERVICES CORPORATION (PRIM) SHAREHOLDER, CLICK HERE TO PARTICIPATE.

On June 22, 2026, Primoris revealed a series of business updates including the departure of its Chief Operating Officer and a further slash to its financial outlook for the full year of 2026, in part due to “cost overruns and delays” related to six of the Company’s projects. The Company also said it anticipates lower revenue and gross profit for full year 2026, primarily driven by lower expected revenue and gross profit in the renewables business, where it now sees full-year revenue at $2.1 billion to $3 billion.

If you still hold Primoris Services Corporation shares purchased before August 2025 and wish to discuss this matter with us, or have any questions concerning your rights and interests with regards to this matter, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261007882886/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider C.H. Robinson Worldwide (CHRW - Free Report) . This company, which is in the Zacks Transportation - Services industry, shows potential for another earnings beat.

This trucking company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.05%.

For the last reported quarter, C.H. Robinson came out with earnings of $1.61 per share versus the Zacks Consensus Estimate of $1.53 per share, representing a surprise of 5.23%. For the previous quarter, the company was expected to post earnings of $1.24 per share and it actually produced earnings of $1.35 per share, delivering a surprise of 8.87%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for C.H. Robinson. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.

C.H. Robinson has an Earnings ESP of +5.37% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

What happened SentinelOne, Inc. (NYSE: S) said President, CEO and director Tomer Weingarten sold 527,368 Class A shares on 2026-10-05.

The filing says the shares sold at $25.26 each, for about $13.32 million. It also says Weingarten held 1,717,510 shares after the sale.

The form says the trades were made under a Rule 10b5-1 plan adopted on July 2, 2026. It was filed on 2026-10-06. The same filing shows a 500,000-share conversion of Class B common stock into Class A common stock on 2026-10-05. It lists 2,244,878 shares before the sale.

It also lists 423,629 Class A shares held by an irrevocable trust. The filing further shows a fully vested employee stock option for 500,000 Class B shares, exercisable through 03/23/2031.

Key numbers Metric Latest Change Source Shares sold 527,368 shares SEC Form 4 Sale price $25.26 per share SEC Form 4 Sale value about $13.32 million SEC Form 4 Shares held after sale 1,717,510 shares SEC Form 4 Pre-sale holding 2,244,878 shares SEC Form 4 Class B shares converted 500,000 shares SEC Form 4 Read more: SentinelOne (S) stock analysis and investment case

Why it matters The sale was about 23.5% of the 2,244,878 shares Weingarten held before the trade. That makes it a large transaction, even if the filing says it was prearranged.

The filing gives investors a clean read on insider ownership after a large planned sale. It is mixed for OptimistFi's case because it does not change the operating thesis, but it does reduce the CEO's direct stake.

The sale does not change SentinelOne's operating goals. It does leave Weingarten with 1,717,510 direct shares, which gives investors a new ownership benchmark.

The filing also shows a 500,000-share conversion of Class B common stock into Class A common stock on the same date. The conversion came before the sale in the record.

The main caveat is the Rule 10b5-1 plan. The trade may have been set up before this filing and may not signal a fresh view on the business.

Browse: stock research on every company OptimistFi covers

What's next The next dated item in the form is the 03/23/2031 expiration of the fully vested employee stock option. The option was already fully vested on April 24, 2026, according to the filing.

Until then, the filing gives a reference point for Weingarten's direct ownership, not a new operating update. A later change in those holdings would be the clearest way this insider record could strengthen or weaken the read.

More from OptimistFi S stock: the SentinelOne thesis, its status and the next test to watch United States Brent Oil Fund, LP (NYSE Arca: BNO) Tracks a Supply Gap Alpha Teknova, Inc. (NASDAQ: TKNO) Adds Regulatory Support for PluriFreeze Meta Platforms, Inc. (NASDAQ: META) Has a Conditional $18 Billion Bill Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Form 4 filed for Tomer Weingarten on 2026-10-06. Read the full OptimistFi thesis on SentinelOne, Inc.: https://optimistfi.com/stocks/S

See what would break the SentinelOne, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full SentinelOne, Inc. investment case, its status and the next test to watch live on the SentinelOne, Inc. thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.

What if I told you there was a multi-trillion-dollar opportunity in aviation, one still in the early stages of growth, but could radically change the industry? If you're already familiar with Archer Aviation (ACHR -0.11%), then you probably know where I'm going with this.

Archer is developing electric vertical takeoff and landing (eVTOL) aircraft, better known as air taxis, that could eventually move passengers above congested city streets. Because time is money, and money buys convenience, Archer is betting that travelers will pay a premium to be shuttled over traffic. If Archer is right, its market valuation -- currently badly beaten down -- could grow several figures higher than its current $3.75 billion.

As this nascent industry grows, could Archer become a trillion-dollar company?

How Archer could grow, and what could stop it There's no denying that Archer Aviation has momentum right now. Well, let me take that back: It did have momentum, lots of it, so much so that the company continues to ride the last bit of it even though delays and stock dilution have brushed the dazzle out of investors' eyes.

Image source: Archer Aviation.

The good news is that Archer may lack the FAA type certification it needs to fly passengers commercially, but that hasn't stopped it from putting its flagship eVTOL, Midnight, through the wringer and laying the groundwork for eventual commercial operations.

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In September, Archer announced that Midnight completed a piloted round trip between Salinas and Hollister, California. Midnight reached 125 mph, cruised at 3,550 feet, covered more than 40 miles round trip, and completed each leg in 12 minutes. Better yet, the flight was conducted as part of Archer's No Roads tour, which is being closely coordinated with the FAA.

That's great news for Archer investors, but it's not revenue -- and for this cash-burning company, generating significant revenue from eVTOLs is a must right now. Archer will likely spend a good chunk of its roughly $1.6 billion in cash and equivalents on research and development. You might think a billion would last a while, but with a quarterly burn rate of $200 million, I'd be surprised if it lasted 24 months before it needs a fresh injection.

ACHR Cash and Short Term Investments (Quarterly) data by YCharts

Archer might be getting significant revenue through Insitu, a profitable drone manufacturer that it plans to acquire from Boeing. Still, eVTOLs are its bread and butter, and until it has revenue through that segment, the uncertainty around its future will be unbearable for most investors.

Does Archer really have what it takes to become a trillion-dollar company? Never say never -- so the saying goes -- but then again, hope is not a strategy, you shouldn't count your chickens before they hatch, and some things really are too good to be true.

All in all, I think conventional wisdom is stacked up against Archer's trillion-dollar growth scenario. Not because growing into a trillion-dollar company is impossible, but because the world in which a company like Archer could join the trillion-dollar club barely exists today. Plus, Archer isn't the only eVTOL company competing in this space -- there's also Joby Aviation, which is further along on the FAA certification timeline.

At this point, Archer Aviation might be good for a small speculative position, but I wouldn't go all in. There are plenty of growth stocks in better positions than this one to offer you handsome gains over the long term.

Microsoft's coming product details will test whether Arm architecture can extend beyond efficiency into premium AI computing. Summary

Arm gained another flagship design, but unit economics remain undisclosed.

Arm Holdings ARM, the processor-architecture licensor, faces a fresh test of its Windows ambitions as Microsoft prepares to detail Surface Laptop Ultra and Nvidia's Arm-based RTX Spark platform, with shares down 1.6% to $297.63 at approximately 11:25 a.m. ET on October 7. According to The Verge, the event will put the new hardware in focus. For investors, the question is simple: can Arm turn another premium-PC showcase into meaningful royalty growth?

Nvidia's announcement describes RTX Spark as pairing a Blackwell GPU with a 20-core Grace CPU developed with MediaTek, an established Arm licensee. Microsoft, Nvidia and participating PC manufacturers previously targeted fall availability for machines built to handle local AI agents and demanding creative work. That gives Arm another route beyond smartphones. The commercial payoff still depends on how many systems sell and what each processor earns for Arm.

The valuation graphic puts the shares 52.01% above the $195.79 GF Value estimate, suggesting substantial growth expectations are already priced in. A premium Windows launch strengthens Arm's expansion story, but Arm disclosed neither expected shipment volumes nor incremental royalty content. An expensive laptop does not automatically mean a large royalty payment. The number investors need is Arm's revenue per shipped processor—and enough shipments to make it matter.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Key Takeaways Viking launched a study testing oral and injectable VK2735 maintenance regimens for obesity.Earlier results showed every-other-week and monthly dosing retained about 90% and 85% of prior weight loss.VK2735 remains Viking's lead obesity candidate, with oral phase III development planned for late 2026. Viking Therapeutics (VKTX - Free Report) announced the initiation of a clinical study evaluating oral maintenance dosing of its lead obesity candidate, VK2735.

The study, which is designed to enroll approximately 195 adults with obesity, will evaluate whether weight loss achieved with weekly subcutaneous (SC) VK2735 can be maintained using oral tablets or less frequent injections.

All participants will initially receive weekly SC VK2735 or placebo for 21 weeks. After the induction period, patients who received the drug will transition to different maintenance regimens, including daily or weekly oral doses of VK2735, monthly or every-other-week subcutaneous VK2735 or placebo. The study will evaluate safety, tolerability and pharmacokinetics, while exploratory measures will assess changes in body weight through week 33.

The oral formulation could provide an important convenience advantage if it successfully maintains weight loss. A data readout from this study is expected in 2027.

Year to date, the company’s shares have lost 19.4% against the industry’s 3.6% growth.

Image Source: Zacks Investment Research

Earlier Results Support Maintenance Potential for VKTXViking’s newly launched study is the second part of its two-part weight-maintenance program, expanding VK2735 beyond weekly injections. The initiation of part 2 follows encouraging results from part 1 of the maintenance study announced last month. During the 21-week induction phase, patients receiving weekly SC VK2735 achieved approximately 16% to 19% weight loss compared with a 0.1% decline for placebo.

Notably, much of the weight loss was maintained after a reduction in injection frequency. Patients switched to every-other-week dosing retained about 90% of their previous weight loss, while those receiving monthly dosing retained roughly 85%. By comparison, patients switched to placebo retained about 61% of their prior weight loss.

These findings suggest that VK2735 may have potential not only as a weight-loss treatment but also as a maintenance therapy that could reduce dosing frequency after initial weight loss is achieved.

VK2735 Remains the Key Pipeline Driver for VKTXVK2735 is the company's lead obesity candidate and primary value driver. It is an investigational novel dual GLP-1 and GIP receptor agonist, being developed in both subcutaneous and oral formulations, positioning it as one of the more promising late-stage obesity therapies currently under development. 

The company is conducting two late-stage studies — VANQUISH-1 and VANQUISH-2 — evaluating VK2735 SC for 78 weeks. VANQUISH-1 is evaluating the drug in adults without type II diabetes (T2D) who have obesity or are overweight with at least one weight-related co-morbid condition. VANQUISH-2 is assessing its efficacy in obese or overweight adults with T2D. Data from these studies are not expected before 2027.

Both studies are testing weekly doses of 7.5 mg, 12.5 mg and 17.5 mg against placebo. The phase III program is expected to provide important data on the long-term efficacy and safety of VK2735 in different patient populations.

Viking is on track to start late-stage studies of oral VK2735 by the end of this year, following encouraging phase II VENTURE-Oral results.

Competition in Targeted Markets Remains a ConcernViking is developing the candidate as a potential alternative to established GLP-1 products marketed by pharma giants Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) . Both companies are already marketing oral and injectable obesity treatments. Lilly markets injectable Zepbound and oral Foundayo, while Novo Nordisk markets injectable Wegovy and its oral Wegovy pill.

The competitive landscape is also evolving rapidly. Lilly recently reported results for EloraTZP, an investigational combination of eloralintide, a selective amylin receptor agonist and Zepbound. Data from a phase IIb study showed that all EloraTZP combinations met the primary and secondary endpoints, delivering substantial weight loss and A1C reductions  at 48 weeks. LLY plans to advance the candidate into phase III development in the fourth quarter of 2026.

Meanwhile, Novo Nordisk has submitted CagriSema to the FDA for weight management. The once-weekly treatment combines semaglutide with cagrilintide, a long-acting amylin receptor agonist. A final decision is expected before this year’s end.

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

It's often highlighted as one of the bigger beneficiaries of the artificial intelligence (AI) revolution. And to be fair, it does serve a decent-sized swath of the AI industry.

However, AI only makes up a minority of GE Vernova's (GEV -2.95%) total business. About 20% of its power-production arm's backlog (measured in gigawatts) is orders for its power-generating equipment to be installed at AI data centers (mostly natural gas turbines). The rest of its order book reflects demand from conventional customers like power utilities, oil refineries, and other high-power-consumption facilities that don't want utility-supplied electricity.

That's not a bad thing. Indeed, GE Vernova's lack of dependence on one single industry -- the AI industry, no less -- actually makes it even easier for investors to own.

Image source: Getty Images.

The numbers that matter for GE Vernova Don't misread the message. The company will gladly sell as much of its wares as any paying customer is willing to buy. And the swell of demand from the fast-growing AI industry has given GE Vernova some margin-widening pricing power to be sure.

Artificial intelligence isn't exactly a panacea for this outfit, however. As was noted, only about one-fifth of the power-generating capacity that's already been ordered but not yet delivered is equipment earmarked for data centers. Similarly, while the data center industry's 2026-to-date orders of GE Vernova's electrification solutions are more than double this arm's orders through the first half of 2025, at a total of $5 billion, these orders still only account for roughly one-third of its total new electrification orders received during the first two quarters of the fiscal year. And, electrification itself only accounts for about one-third of the company's current revenue mix.

In other words, GE Vernova's stock isn't quite the AI trade it's sometimes made out to be.

GE Vernova is plugged into something bigger and more reliable than AI data centers At first blush, this reality check seems to dial back the bullishness that had been surrounding this ticker; maybe it undermines some of the premium valuation the market might have otherwise been willing to price in.

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There's arguably more upside than downside, though, simply because GE Vernova doesn't face the risk of AI mania suddenly losing steam and bringing a quick end to its backlog's growth. The company is largely meeting the ever-growing power needs outside of the data center market, which may not be as flashy, but are certainly far more sustainable. For perspective, thanks to the ongoing proliferation of electric vehicles, the need for more air conditioning, and other needs beyond AI data centers, the International Energy Agency expects global demand for electricity to grow 3.6% this year, up from 2025's pace of only 3%, en route to 3.8% growth in 2027.

Admittedly, those numbers aren't very big. By worldwide power-production measures, though, they're huge. They're also just a glimpse of the longer-term demand that the planet isn't yet equipped to meet. To this end, Morningstar analysts' longer-term revenue outlook for a 2030 top line of $78.6 billion versus last year's sales of $38.1 billion is probably a pretty reliable projection.

Arguably more important to interested investors right now, this backdrop makes GEV's lethargy since mid-year a buying opportunity.

Key Takeaways RDW's PIL-BOX enables pharmaceutical research through protein-crystal growth in microgravity.RDW is expanding its commercial model through royalties from products developed with its technology.RDW's growing PIL-BOX use strengthens its role in space-based pharmaceutical research and development. Redwire Corporation (RDW - Free Report) is expanding its microgravity capabilities beyond traditional space infrastructure into pharmaceutical research and development. The company’s Pharmaceutical In-Space Laboratory – Bio-crystal Optimization Experiment (PIL-BOX) enables pharmaceutical companies and researchers to use microgravity to grow crystals of protein-based pharmaceuticals and other key molecules. Redwire had launched 42 PIL-BOXes through Dec. 31, 2025, highlighting the growing adoption of its technology for space-based pharmaceutical research.

Microgravity provides conditions different from those available on Earth, potentially allowing certain products and materials to be produced with enhanced or differentiated properties. In pharmaceutical applications, Redwire’s platform focuses on growing protein crystals that can support drug development. This gives the company an opportunity to provide specialized space-based research capabilities while expanding the applications of its microgravity business.

An important development is Redwire’s move toward a commercial model that extends beyond providing research infrastructure. During 2025, the company entered into a licensing agreement with ExesaLibero Pharma, under which Redwire is entitled to receive royalties from commercial sales of resulting pharmaceutical products. This arrangement provides a potential avenue for Redwire to participate in the economic value generated by products developed using its microgravity capabilities.

The combination of an established PIL-BOX platform, increasing launches and a royalty-based licensing arrangement could broaden Redwire’s role in pharmaceutical development. As microgravity research moves toward commercial applications, Redwire could generate additional value from its space-based biotechnology capabilities and expand the commercial potential of its space business.

Companies Exploring Microgravity for Drug DevelopmentThe use of microgravity for pharmaceutical research is also attracting major drug developers. Bristol Myers Squibb (BMY - Free Report) and Eli Lilly and Company (LLY - Free Report) are exploring advanced research approaches aimed at improving drug development and pharmaceutical formulations.

Bristol Myers Squibb has conducted protein-crystallization experiments in microgravity to study larger and more uniform protein crystals that may support drug development.

Eli Lilly maintains a broad research and development platform focused on developing medicines and advancing complex pharmaceutical science.

Earnings Estimates for RDW StockThe Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 57.32% and 40%, respectively.

Image Source: Zacks Investment Research

RDW Stock Is Trading at a PremiumRedwire is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 4.94X compared with the industry average of 2.11X.

Image Source: Zacks Investment Research

RDW Stock Price PerformanceOver the past six months, RDW shares have risen 11.4% against the industry’s 18.3% fall.

Image Source: Zacks Investment Research

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

Tom Lee just signaled a major shift in how Bitmine handles its Ethereum treasury, and crypto stocks across the board are taking the hit as investors reconsider what a buying halt means for a company built on relentless accumulation.

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A standing weekly buyer of Ethereum (CRYPTO:ETH) is about to step away from the market, and crypto treasury stocks are absorbing the shock. Bitmine Immersion Technologies (NYSE:BMNR | BMNR Price Prediction) stock is down 7% to $24.49 in afternoon trading after its chairman indicated the end of the company’s weekly accumulation program.

Checking in on the peers, Sharplink (NASDAQ:SBET) stock is falling 5% to $8.99, a smaller drop for the company that sits closest to Bitmine’s business model. Strategy (NASDAQ:MSTR) shares are slipping 5% to $155.79, even though the company’s treasury is built on Bitcoin (CRYPTO:BTC), a different token entirely.

At the same time, the iShares Ethereum Trust ETF (NASDAQ:ETHA) is down 4% to $58.24 as the token itself retreats. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is sliding just 0.3% to $776.84, leaving the biggest selling concentrated in crypto. That gap marks this as a token-specific story, with Bitmine at its center.

Tom Lee Signals the End of Bitmine’s Ethereum Buying Bitmine Chairman Tom Lee addressed a crypto conference in Singapore. He stated the company will halt its Ethereum purchases once its holdings reach five percent of the token’s circulating supply, adding that Bitmine is close to that level. Bitmine had expected the effort to take five years, Lee declared. However, the company finished the job in a little over a year, through a bear market (a prolonged stretch of falling prices), and is now going to stop.

Lee stated that Bitmine holds 6,016,414 Ether, equal to 4.9% of the token’s circulating supply as of its latest disclosure. Every week since the launch of Bitmine’s treasury strategy, the company has bought Ethereum, making Bitmine one of the token’s most consistent sources of demand. Lee has previously indicated the company could sell Ether earned through staking (locking up tokens to help secure the network in exchange for rewards) to keep its stake from drifting above that ceiling.

Shares of Bitmine are falling further than Sharplink stock or Strategy Inc. stock and well beyond the broad market, while the Ethereum fund is down sharply too, because as a standing weekly purchaser Bitmine supplied steady demand for the token its own balance sheet is built on, and an announced end to that buying removes the support. This explains why the news lands harder on Bitmine than on a treasury company holding a different asset.

Weighing Bitmine Once Accumulation Ends Bitmine’s upside depends on reaching the five percent ceiling, which completes a plan management mapped out as a five-year effort and wrapped up in a little over one year. Once cash stops flowing into accumulation, Bitmine can direct that capital elsewhere, which may give Bitmine stock a fresh source of interest.

On the other hand, the bearish view holds that Bitmine’s weekly buying was itself part of the investment thesis. A treasury company that stops accumulating becomes a holding vehicle whose stock has no catalyst beyond the token’s own price, and Bitmine would face that test directly. With the Ethereum fund down 4% alongside the bigger slide in Bitmine stock, that dependence on the token is clearly visible.

What to Watch Next What matters next for Bitmine is what the company does with its capital once the accumulation stops. Investors will be looking at whether Lee’s earlier suggestion of selling Ether earned through staking becomes a regular practice that keeps Bitmine’s stake near the ceiling.

Bitmine stock is falling harder than both the ETHA Ethereum fund and the SPY ETF, a reminder of how much leverage the company’s treasury model carries. Cautious traders could reduce their position sizes and look for signs that the smaller decline in Sharplink stock holds, which would point to Bitmine’s announcement as the main driver of the selling.

Contact [email protected] for any questions or corrections.

Key Takeaways Ondas trades below its industry valuation as shares fall 24% year to date despite rapid revenue growth.ONDS posted $83.8 million in Q2 revenues, while backlog reached $613M and pro forma backlog hit $757M.Ondas targets company-wide adjusted EBITDA profitability by Q4 2027 as integration and execution risks rise. Ondas, Inc. (ONDS - Free Report) trades at a forward 12-month price-to-sales ratio of 4.65X, a discount compared with the Zacks Wireless National industry’s 8.67X and the Zacks Computer and Technology sector’s 6.24X.

Image Source: Zacks Investment Research

Moreover, shares of the company have lost 24% year to date against the industry’s growth of 150.3%.

The valuation discount against a weak share-price backdrop suggests that investors remain cautious despite Ondas’ rapid expansion across the autonomous systems space, including counter-UAS, precision strike, intelligence, surveillance and reconnaissance and autonomous ground systems.

At first glance, the pullback, coupled with the discounted sales multiple, could make the stock appear increasingly attractive. However, the investment case is not straightforward.

Ondas is pursuing an aggressive acquisition strategy while investing heavily in the infrastructure needed to support a much larger business. However, M&A brings significant execution risks.

Against this backdrop, let’s do a deep dive to assess investment prospects and make an informed decision.

Ondas’ Momentum Is in Sharp Contrast to Share Price DeclineOndas’ second-quarter 2026 revenues surged more than 13 times year over year to $83.8 million and increased 67% sequentially. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year.

Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions. Management is not only focusing on selling drones but on connecting a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare and kinetic defeat.

Since reporting second-quarter results, Ondas has continued to broaden its autonomous-defense platform through acquisitions. In September, Ondas acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028.

Before that, the company acquired GATE Technologies and Bron Technologies, adding electronic safe-and-arm (ESADs) devices and advanced electronic fuzing technologies. Ondas will pay $205 million, comprising $105 million in cash and $100 million in its stock, plus a working-capital adjustment. The transaction also includes up to $185 million of performance-based earn-outs through 2028. Ondas expects GATE to generate $65 million of full-year 2026 revenues, rising to $180 million in 2028, with more than $130 million in aggregate adjusted EBITDA through 2028.

On Oct. 5, the company announced a $56 million order for ESADs, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies.

In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.

Counter-UAS Portfolio Continues to ExpandCounter-UAS is an important tailwind for the company. Ondas recently introduced Dronebuster REACH, a long-range variant of its Dronebuster family of non-kinetic counter-drone systems. The product launch could strengthen Ondas’ position in the rapidly developing counter-drone market by addressing a key operational gap – defeating drones before they enter the effective range of handheld systems.

The first Dronebuster REACH system is already under contract for delivery to the Office of Naval Research following customer acceptance testing. The system will support C-UAS research, evaluation and testing activities, providing an early validation point for Ondas’ new product.

Ondas is combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications. On the last earnings call, Ondas highlighted that IonStrike (through DZYNE) was positioned to begin receiving commercial-volume orders and initial deliveries during the second half of 2026.

Sentrycs’ second-quarter pro forma revenues increased approximately 298% year over year, highlighting the commercial momentum in this part of the portfolio.

Precision Strike represents another important near-term revenue catalyst. Mistral is preparing to deliver against more than $240 million of aggregated orders under the U.S. Army's $982 million Lethal Unmanned Systems IDIQ program. On the last earnings call, management noted that the commercial deliveries are expected to ramp in the second half of 2026 and continue into 2027.

Execution Remains the Key QuestionThe scale of Ondas’ opportunity is increasing, but so is the complexity of executing its strategy.

Ondas has added World View, Mistral, Omnisys, DZYNE and Cyberhawk during 2026 and expanded further through the acquisitions of GATE Technologies, Bron Technologies, Insignito, Ottopia Defense and Caribou Labs.

The company deployed about $325 million of cash in the third quarter to complete DZYNE and Cyberhawk acquisitions before announcing and completing additional acquisitions subsequently. It is also expanding production, sales and marketing reach and field-support infrastructure.

Multiple acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues.

Profitability Remains Distant for ONDSFor all the excitement surrounding revenue growth, second-half ramp and profitability remain the key tests for ONDS.

The company raised its full-year revenue outlook to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure for 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis. The pace of order conversion and production scaling will determine whether ONDS can deliver the steep second-half ramp embedded in its outlook

Coming to profitability, second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million.

While more than half of expenses consisted of noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. The company incurred approximately $4.4 million of acquisition-related transaction costs.

Adjusted EBITDA remained a loss of approximately $51 million. The company expects the second quarter to represent the peak adjusted EBITDA loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. At the last earnings call, management cautioned about some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.

However, the company expects adjusted EBITDA losses to narrow beginning in the third quarter and has pulled forward its profitability timeline. Management now targets adjusted EBITDA profitability for the operating platform, including OAS and Ondas Sentinel, by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.

Image Source: Zacks Investment Research

That makes the next several quarters particularly important. Strong revenue growth without corresponding improvement in operating leverage would weaken the core thesis.

Given these factors, analysts have downgraded their earnings estimates for ONDS’ current year over the past 60 days.

Competition in the Drone SpaceOndas operates in a highly competitive autonomous defense and unmanned systems market, competing with established and emerging players such as Kratos Defense & Security Solutions (KTOS - Free Report) , Red Cat Holdings (RCAT - Free Report) and AeroVironment (AVAV - Free Report) .

Intense competition could pressure market share, making product differentiation, execution and rapid commercialization critical to sustaining growth.

Price Performance
Image Source: Zacks Investment Research

Year to date, RCAT, AVAV and KTOS have also registered declines of 20%, 40.5%, and 42.2%, respectively. This could be due to investor caution around heavy investment requirements and execution risks across the rapidly expanding drone and autonomous-defense market.

The forward 12-month price/sales multiple for KTOS, AVAV and RCAT stands at 3.91X, 3.1X and 4.09X, respectively.

ONDS Stock: How to Approach?Although ONDS’ share price decline and valuation discount warrant attention, greater visibility into profitable growth would improve the risk-reward proposition.

With ONDS carrying a Zacks Rank #4 (Sell), investors need to exercise caution and wait for clearer evidence of improving profitability. 

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

The Indian Rupee faces a firmer RBI policy stance, but Goldman Sachs had already expected a rate rise before projecting renewed US Dollar gains. The Reserve Bank of India has delivered the interest-rate increase Goldman Sachs expected, leaving the size of any further tightening as an important test of the bank's cautious Indian Rupee outlook.

The RBI raised its repo rate by 25 basis points to 5.50% on Wednesday and shifted its policy stance from neutral to calibrated tightening.

Goldman's forecasts, published on 5 October before the decision, put USD/INR at 96 in three months and 97 in both six and 12 months.

Those are pre-meeting projections, allowing an initial Rupee recovery before renewed weakness, rather than a reassessment issued after Wednesday's announcement.

USD/INR traded near 96.7174 on Wednesday afternoon, up 0.36% from Tuesday's close, leaving the pair already close to the more distant 97 projections.

That proximity limits how much additional depreciation Goldman's six- and 12-month figures imply from current levels, while its three-month call would require the Rupee to recover some ground.

The first increase was already expected Our pre-decision coverage of the RBI debate recorded Goldman's expectation of a quarter-point increase, even as other analysts favoured a later start.

The delivered hike therefore does not, by itself, overturn the assumptions surrounding its currency outlook.

More consequential for investors is whether the RBI now raises rates further than anticipated, and whether those increases improve the appeal of Rupee assets enough to offset demand for Dollars.

The RBI's policy resolution rules out near-term cuts under current conditions, leaving the next move as either another increase or a pause.

All six committee members supported the hike, although two wanted to retain the neutral stance.

That distinction leaves the pace and extent of the cycle open, with policymakers tying subsequent decisions to inflation, growth and evidence that price pressures are spreading.

Higher rates confront an inflation and capital-flow problem Higher Indian interest rates can support the Rupee by increasing the return available on local assets, but their attraction also depends on overseas yields and the risk of further currency losses.

The RBI is tightening into an environment of elevated energy costs and widening domestic price pressures, rather than responding to an uncomplicated improvement in the economic outlook.

Its inflation forecast is 5.2% for the current financial year, while deficient monsoon rainfall and high commodity prices remain risks.

Raising borrowing costs cannot directly restore rainfall or reduce the world oil price, but it can help prevent those shocks becoming embedded in inflation expectations and business pricing.

External financing remains a separate source of pressure.

In his statement accompanying the decision, Governor Sanjay Malhotra reported net foreign portfolio outflows of US$10.3 billion between April and 5 October, despite inflows encouraged by the RBI's other capital measures.

Goldman's global policy assumptions also allow continued competition from US yields: its 5 October report pushed its final expected Fed hike back to December, rather than removing that increase from the outlook.

The timing offers some potential relief for the Rupee, but leaves higher US rates as a possible counterweight to India's tightening.

The RBI, meanwhile, is committing to control excessive currency volatility without promising to defend a particular Dollar-Rupee level.

Malhotra said: "We remain committed to ensuring orderly adjustments to the exchange rate that are in sync with the underlying macroeconomic fundamentals and curbing excessive volatility."

Swiss Franc Technical Forecast: USD/CHF Short-term Trade Levels
USD/CHF remains broadly constructive after extending the advance from the August low, but the recent reversal has damaged the near-term trend structure.
The first rebound from last week’s selloff is now testing former uptrend support as resistance, putting the focus on whether buyers can reclaim the broken slope.
A sustained break above near-term resistance would shift the focus back toward the October highs and revive the broader bullish continuation scenario.
Failure to reclaim resistance would keep the risk tilted toward a deeper correction within the larger advance.
Resistance 83450/58, 8375/87 (key), 8416/30- Support 8289, 8259 (key), 8200/15
USD/CHF is attempting to mark a seventh consecutive weekly advance, but the near-term technical picture has become more complicated after last week’s break of the September uptrend. The initial rebound from the selloff is now pressing former trend support as resistance, creating an important inflection point for the recovery. A successful reclaim would refocus attention on the October highs and strengthen the case for broader uptrend resumption, while another rejection would leave the pair vulnerable to a deeper correction. With the economic calendar relatively light into Friday, shifts in Treasury yields and Fed expectations may provide the next catalyst ahead of next week’s key U.S. inflation data.

Review my latest Weekly Strategy Webinar for an in-depth breakdown of this USD/CHF setup and more. Join live on Monday’s at 8:30am EST.

Swiss Franc Price Chart – USD/CHF Daily

Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/CHF on TradingView

Technical Outlook: In last month’s Swiss Franc Short-term Outlook we noted that USD/CHF had rallied into resistance at five-week highs and that, “From a trading standpoint, losses should be limited to 8069 IF price is heading higher on this stretch with a close above 8152 needed to fuel another run at the yearly highs. Look for another meaningful reaction on a test of the 82-handle for guidance IF reached.” USD/CHF briefly registered an intraday low at 8052 the following day before reversing higher with a breakout of the September opening range fueling a 4.1% rally off the monthly low.

The advance extended more than 5.4% off the August low before marking an outside day reversal off confluent resistance into the October open at 8375/87. This region is defined by the 2024 swing low and the 1.618% extension of the August rally and converges on the upper parallel of a multi-month pitchfork extending off the January / August lows. The monthly opening range has now taken shape just below and while the broader outlook remains constructive, the advance may be vulnerable while below this threshold.  

Swiss Franc Price Chart – USD/CHF 240min

Chart Prepared by Michael Boutros, Sr. Technical Strategist; USD/CHF on TradingView

Notes: A closer look at Swisse price action shows USD/CHF breaking below the lower parallel of the September uptrend last week with former support serving as resistance for the past few days. Price is now approaching initial resistance at the 78.6% retracement of the most recent decline and the objective monthly open at 8350/58. Note that the lower parallel converges on this zone tomorrow and a break / close above this slope would shift the focus back towards key resistance at 8375/87. Ultimately, the bulls will need to clear this zone to mark uptrend resumption toward the next major technical consideration at the 2024 yearly open and the 2024 low-day close (LDC) at 8416/30.

Weekly open support rests at 8289 and is backed by the 100% extension at 8259. Basic trendline support extending off the August low (red) converges on this level next week and losses below this slope would be needed to suggest a more significant high is in place and a larger correction is underway. Subsequent support rests with the 100% extension of the January advance and the 38.2% retracement of the 2025 decline at 8200/15. Look for a larger reaction there IF reached.

   
       

Bottom line: USD/CHF has broken a multi-week uptrend after reversing off key resistance into the start of the month. The risk remains for a deeper correction within the confines of the broader uptrend. From a trading standpoint, rallies should be limited to 8358 IF price is heading lower on this stretch – look for a larger reaction on a test of the August uptrend near 8259 with a breach / close above 8387 ultimately needed to fuel the next leg higher in price.

Event risk remains relatively light for USD/CHF in the days ahead, with the Michigan Consumer Sentiment Index on tap Friday. While the survey may have a limited market impact, any meaningful shift in consumer expectations could influence the dollar through Treasury yields and near-term Fed pricing. The focus then turns to next week’s key inflation data, which should provide a more significant test for the U.S. monetary-policy outlook and help shape the next directional move in USD/CHF. Stay nimble into the releases and watch the weekly close for guidance. Review my latest Swiss Franc Weekly Forecast for a closer look at the longer-term USD/CHF technical trade levels.

USD/CHF Key Economic Data Releases

Economic Calendar - latest economic developments and upcoming event risk.

Active Short-term Technical Charts
Euro Short-term Outlook: EUR/USD Selloff Nears Critical Yearly Support
British Pound Short-term Outlook: GBP/USD Selloff Breaks June Uptrend
Canadian Dollar Short-term Outlook: USD/CAD Six-Day Rally Challenges Pivotal Resistance
Australian Dollar Short-term Outlook: AUD/USD Reversal Tests Key Uptrend Support
Gold Price Short-term Outlook: XAU/USD Bulls Fight to Stabilize at Pivotal Support
Japanese Yen Short-term Outlook: USD/JPY Breakdown Faces Major Test Ahead of Fed, BoJ
US Dollar Short-term Outlook: USD Selloff Accelerates Toward August Lows Ahead of NFP
--- Written by Michael Boutros, Sr Technical Strategist

Follow Michael on X @MBForex

Apple Today

$336.78 +3.15 (+0.94%)

As of 01:49 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$243.42▼

$345.340.32%

38.61

$340.02

When a Wall Street heavyweight like Morgan Stanley calls a company's next two years “the most exciting” it can remember, you would expect it to raise its price target, not trim it. Yet that’s where it found itself with Apple Inc. NASDAQ: AAPL last week, and the contradiction says a lot about where the tech giant stands today.

In a note following Apple's recent product launch, Morgan Stanley stayed firmly in the bull camp, keeping its Overweight rating and lauding the upcoming roadmap under new CEO John Ternus.

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And yet it still nudged its price target down, to $355 from $360.

For a stock that has climbed more than 20% this year and sits near record highs, the mix of enthusiasm and caution is telling.

So what’s going on, and is this really a mixed picture dressed up as good news? As we’ve been highlighting in recent weeks, much of the answer lies in whether Apple can not only sell more iPhones, but also make more money from them.

A Stronger Top LineLet’s start with the good news in Morgan Stanley’s note, because there was plenty of it. Analyst Erik Woodring came away from Apple’s launch feeling optimistic and lifted his revenue forecasts on stronger iPhone shipments, continued strength in Mac sales, and better-than-expected pricing in its Services arm.

Woodring’s longer-term view is rosier still, and he believes the product push under Ternus could deliver something Apple has not managed in a decade: four straight years of growth in iPhone unit sales. Fresh hardware, a smarter Siri, and the pull of Apple's sprawling ecosystem all feed into a case for above-trend growth.

Investors have clearly been leaning into that potential too. After an initial wobble during the launch itself, Apple shares have recovered in the weeks since, as the market latched onto the promise of stronger demand and the pricier new iPhone lineup. For now, the mood is cautious optimism.

Apple Inc. (AAPL) Price Chart for Wednesday, October, 7, 2026

Why the Target Still SlippedHere’s the catch, however. Despite the extra revenue it now expects, Morgan Stanley trimmed its earnings forecasts for both this financial year and next. The reason is classic: selling more units doesn't help much if each sale is less profitable.

Two forces are at work here. Firstly, Apple raised the price of its Pro model by $100, a decent bump but less than the $150-$200 increase Morgan Stanley had expected. That leaves the average iPhone selling for a little less than the firm had penciled in, squeezing the profit on every handset.

Second, and more stubborn, is the rising cost of memory chips. Soaring demand for the components that go into AI systems has pushed up prices across the industry, and Apple is far from immune. Those higher costs eat directly into its margins, and by the company's own admission, they are the main reason its underlying profitability has slipped.

The Bull and Bear Tug of WarThis tension sits at the heart of the debate over Apple right now. The bulls, led by Morgan Stanley, argue that stronger unit sales, a richer product mix, and the long runway of AI-driven upgrades will ultimately win out. They point to healthy early demand for the iPhone 18 Pro and the fresh appeal of the foldable Duo as evidence the upgrade cycle has legs.

The bears are less convinced the revenue will reach the bottom line. Beyond the memory-cost squeeze, they worry higher prices could push buyers to hold onto their phones longer, and that the pricey Duo may cannibalize Pro Max sales rather than add new ones. Questions also remain about whether Apple's AI efforts can keep pace with faster-moving rivals.

That split is visible across Wall Street itself. On Oct. 6, UBS Group reiterated a more cautious Neutral rating with a $296 price target, flagging still-sluggish growth in the App Store, a direct counterweight to Morgan Stanley's upbeat take the week before. With Apple due to report earnings later this month, both camps will soon have hard numbers to argue over.

A Mixed Picture, Maybe, But Not a Bearish OneSo where does all this leave the stock? Taken together, the message is nuanced rather than negative. Apple's products are clearly still red hot, and its ability to sell them in volume is hardly in doubt. The real question is how much of that strength survives the journey from revenue to profit, once memory costs and softer pricing take their toll.

For investors, the takeaway is one of patience. Apple remains a high-quality business with a formidable product cycle ahead, and it still holds a Moderate Buy consensus rating on MarketBeat. But with its margins under increasing pressure and the shares already near record highs, the easiest gains may already be behind it. That means the bigger prize will likely go to those willing to look past a potentially bumpy quarter or two and bet that Apple can confidently convert its current product strength into future profits.

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Key Takeaways T will own 50% of a new wholesale fiber joint venture with GIP and CPP Investments.The venture combines Forged Fiber 37 with Gigapower to expand open-access fiber across 16 states.AT&T targets more than 60 million fiber locations by 2030, pairing broadband growth with 5G. AT&T Inc. (T - Free Report) has agreed to form a new U.S. fiber joint venture with Global Infrastructure Partners ("GIP") and the Canada Pension Plan Investment Board ("CPP Investments"). The partnership aims to accelerate fiber expansion and bring high-speed Internet access to more communities across the country.

The new joint venture will include AT&T’s subsidiary, Forged Fiber 37, which holds the fiber build engine, network assets and operations acquired from Lumen Technologies, Inc. (LUMN - Free Report) , along with Gigapower, its existing wholesale fiber joint venture with GIP. It will operate as a wholesale commercial open-access fiber company, supporting AT&T’s network growth across major metropolitan areas in 16 states through a capital-light model while allowing multiple service providers to access the infrastructure.

AT&T will own 50% of the joint venture, while GIP and CPP Investments will collectively own the remaining 50%. The company plans to use the transaction proceeds to reduce debt, invest in its business and return capital to shareholders. The deal is expected to close in the first half of 2027, subject to regulatory approvals and other customary closing conditions.

The initiative supports AT&T’s goal of reaching more than 60 million fiber locations by the end of 2030. The expanded fiber footprint is expected to create opportunities to grow high-value customer relationships by combining broadband and 5G wireless services, supporting the company’s strategy of offering converged connectivity solutions.

How Are Competitors Focusing on Fiber?AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Verizon is strengthening its fiber network to expand high-speed broadband access across the United States. The company is deepening its fiber investment through a multiyear agreement with Corning Incorporated (GLW - Free Report) for more than 80 million miles of optical fiber from 2027 to 2032. Verizon’s fiber focus supports growing demand for advanced connectivity, including applications linked to cloud computing and artificial intelligence.

T-Mobile is expanding its fiber presence through partnerships that allow it to enter more markets and broaden its home broadband offerings. The company is pairing its 5G network with fiber services to give customers more options for high-speed connectivity. This approach allows T-Mobile to leverage its national brand and distribution alongside established fiber operators to scale its broadband business more efficiently.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 6.6% over the past year against the industry’s growth of 132.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.27, below the industry tally of 8.67.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have decreased 0.4% to $2.33 over the past 60 days, while the same for 2027 have decreased 0.8% to $2.55.

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AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

by Kurt Schlosser on

Walmart and Wing are partnering on drone delivery service that is expanding across the U.S. (Walmart Photo) Walmart looks like it might beat Amazon to the skies over the Seattle area as the retail giant announced this week that it plans to bring automated drone delivery to the region in 2027.

The move is part of a broader nationwide push by Walmart and drone operator Wing — a subsidiary of Google parent Alphabet — to scale across nearly 20 U.S. metropolitan areas. By adding Seattle and Denver in its latest expansion push, the partnership aims to eventually offer 30-minute aerial delivery from more than 270 Walmart stores coast-to-coast, reaching over 40 million potential customers.

Details on which Seattle-area stores will offer the service have not yet been announced. There are no Walmart stores within Seattle city limits, but The Seattle Times reported that permit filings point to initial groundwork underway at store locations in Federal Way and Tacoma.

Federal Way Mayor Jim Ferrell said his community south of Seattle is looking forward to bringing the region “an incredible new convenience” with the advanced delivery solutions.

“The future has arrived and its being delivered by Walmart by drone!” Ferrell said in a news release.

Wing’s electric aircraft fly at speeds up to 60 mph, serving homes within a six-mile radius of participating stores. The drones carry payloads up to five pounds to drop household essentials from groceries to small electronics. Once operational, eligible local shoppers using either the Walmart or Wing app will automatically see airborne drops as a checkout option.

KIRO 7 captured a demonstration of Wing’s delivery system in Bellevue this week, showcasing how the aircraft take off and raise and lower orders.

While Seattle-based Amazon has pushed aggressively to expand its Prime Air drone fleet to nearly 500 U.S. cities and towns, the tech giant has yet to launch commercial drone deliveries in its hometown. Instead, Prime Air operations remain concentrated in markets like Arizona, Texas, and Florida.

Amazon isn’t ignoring the Pacific Northwest entirely, however. The Portland Business Journal reported last month that Amazon filed permit applications to build a Prime Air hub at a North Portland facility, targeting an early 2027 launch that has already drawn early pushback from nearby residents concerned about noise and safety.

Those noise concerns mirror a broader backlash taking shape in established test markets. The New York Times and others reported last month on residents living beneath Amazon’s drone flight paths in Richardson, Texas, who have taken exception to the constant low-altitude buzz of delivery aircraft disrupting their suburban way of life.

Wing has sought to head off potential noise backlash by re-engineering its aircraft acoustic profile. According to the company, its latest drones feature custom propellers designed to reduce high-pitched whines, keeping sound levels at roughly 43 to 50 decibels at cruising altitude and around 62 decibels during hovering drops — a level Wing claims is quieter than a standard delivery truck.

But Walmart and Wing have still encountered friction at the local level. In metro Atlanta, county leaders shut down a proposed Walmart drone hub after more than 1,000 nearby residents signed a petition citing noise, safety, and privacy concerns.

Your neighbor's putting up inflatable skeletons in her yard. The Major League Baseball playoff season is under way. And Walt Disney (DIS +0.51%) is raising ticket prices. These are a;; seasonal rites this time of year. Why is it that only one of them surprises people?

Yes, Disney hiked prices on many annual passes and single-day tickets for its domestic theme parks this week. The same thing happened in early October last year. It was also a cause celebre this month two years ago. And the year before that.

We can talk about the severity of the increases this time around. There will be some people lamenting on Disney fan forums that they've been priced out of the Disney World and Disneyland experience. I don't want to dismiss that. It hurts to see special things become unattainable. However, as long as people keep coming -- and paying those higher prices -- do you think that next October will be any different?

Image source: Disney.

Pass the salt Florida's Disney World is the most visited theme park on the planet. Its annual turnstile clicks -- according to industry tracker TEA/AECOM -- have declined just twice in the last 14 years (through 2024, last year's numbers should be coming soon). There was a scant 0.5% dip in 2016. Then there was a hard reset in 2020 in the aftermath of a four-month closure at the resort. Prices went up almost every year.

The headline grabber is that Disney World's priciest annual pass -- the Incredi-Pass, which provides year-round access without any blackout dates -- is now $1,749 per person. This is a steep $120 increase, but isn't that just $0.33 more a day? The 7% increase does outpace inflation, but it's a different story at the low end. The Pirate Pass, available only to Florida residents, is valid only for non-holiday weekday visits and now costs just $10 more, at $499 per year. The 2% increase is a discount to both inflation and Disney's own rising costs of serving its guests.

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Salt the pass Disney stock has been a market laggard for years, but you can't lay the blame at the feet of the media giant's experiences segment. It sells cruises at a market premium, but it's seeing strong trends to warrant expanding its fleet faster than traditional cruising companies. Its theme parks continue to grow, cranking out record results.

The $1,749 Incredi-Pass annual pass or one-day tickets, now as high as $229 during peak travel periods, will be ammo for the naysayers. The irony is that those same moves provide ammo for shareholders. If Disney starts to become a hot investment again, it will be because it monetized its good fortune without losing its audience. The headlines this week appear mean-spirited, for what is essentially a reasonable 2% to 7% annual pricing adjustment. Disney knows what it's doing.

Key Takeaways Target fulfilled nearly 30% more same-day and next-day units year over year in fiscal Q2 2026.Same-day delivery rose more than 25%, helping drive an 8.7% increase in comparable digital sales.Target fulfills over 95% of sales through stores, supporting faster and more reliable fulfillment. Target Corporation (TGT - Free Report) is seeing stronger momentum in faster fulfillment as shoppers increasingly lean on convenience. In the second quarter of fiscal 2026, the retailer fulfilled nearly 30% more same-day and next-day units year over year, highlighting the growing role of speed in its guest experience. Same-day delivery was a particularly strong contributor, rising more than 25% and helping drive an 8.7% increase in comparable digital sales.

The company’s physical stores remain central to this capability. Target fulfills more than 95% of its sales through stores, bringing inventory closer to shoppers and enabling faster, more reliable and cost-effective fulfillment. The retailer is also using technology to improve how inventory moves through its network. Proxima, its digital twin of the middle-mile inventory positioning system, allows teams to test inventory-flow plans before implementation, evaluate potential downstream effects and make inventory decisions with greater confidence.

Faster delivery is also being supported by better product availability. Target said overall inventory reliability metrics reached multiyear highs, while availability of its most frequently purchased items was the strongest in recent years. This matters because faster fulfillment depends on having the right products available in the right locations when orders arrive.

Target plans to keep investing to get even faster, with better inventory positioning, stronger availability and its store-based fulfillment network supporting a quicker and more dependable digital experience.

How Walmart & Dollar General Compare on Delivery SpeedWalmart Inc. (WMT - Free Report) is also leaning heavily on faster fulfillment to deepen customer engagement. In second-quarter fiscal 2027, Walmart U.S. e-commerce sales rose 24%, with store-fulfilled delivery sales growing more than 40%. Fast delivery in the United States climbed 48%, while customers increasingly received orders in under 30 minutes. Walmart has expanded sub-30-minute delivery to 38 U.S. markets, supported by its store footprint, fulfillment infrastructure and local delivery capabilities.

Dollar General Corporation (DG - Free Report) is similarly expanding delivery as an extension of its convenience proposition. Dollar General said delivery contributed an estimated 40 basis points to comparable-sales growth in the second quarter of fiscal 2026. Through myDG Delivery, DoorDash and Uber Eats, Dollar General estimates roughly 80% sales incrementality, with digitally engaged and delivery customers more than twice as productive as nondigitally engaged shoppers.

How Does Target Stack Up Against Its Industry?Target has seen its shares rally 16.6% over the past three months against the industry’s 3% decline. 
 

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What Does Target’s Current Valuation Suggest?From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.83, lower than the industry’s 27.18. However, the stock is trading above its 12-month median level of 14.89.
 

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What Do Earnings Estimates Signal for Target?The Zacks Consensus Estimate for Target’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.1% and 37.8%, respectively. For the next fiscal year, the consensus estimate indicates a 3.1% rise in sales but a decline of 9.5% in earnings per share.
 

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Target’s Investment CaseTarget’s improving traffic, stronger digital momentum, broad-based category growth and better inventory reliability indicate that its refreshed strategy is gaining traction. Same-day delivery growth, continued price investments and higher-margin revenue streams further strengthen the operating backdrop. Management also raised fiscal 2026 sales and EPS guidance, reflecting greater confidence in underlying momentum. These factors support a constructive investment view on this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ExxonMobil's shares jumped 44.3% in a year, beating the industry's 42.4% growth and key integrated peers.High oil prices and low-cost Permian and Guyana output are supporting XOM's production and earnings.XOM's strong balance sheet and dividend growth add support, but its premium valuation argues for patience. ExxonMobil Holdings Corporation (XOM - Free Report) has jumped 44.3% over the past year, outpacing the industry’s 42.4% growth. BP plc (BP - Free Report) and Chevron (CVX - Free Report) , two other integrated players in the same space, have gained 30.4% and 35.1%, respectively, over the same time span.

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The price chart clearly reflects investors’ strong preference for XOM stock. Should investors continue to bet on the integrated energy giant? Before getting into the conclusions, let’s delve into the company’s fundamentals and overall business environment.

Oil Price Still High: Boon for XOM’s Operations?West Texas Intermediate (“WTI”) crude is hovering around the $90-per-barrel mark. The high prices are being driven by intensifying conflicts in the Middle East. The U.S. Energy Information Administration in its latest short-term energy outlook projected WTI at $88.21 per barrel this year, higher than $65.40 last year. A highly favorable oil pricing environment is likely to continue supporting ExxonMobil’s exploration and production activities, similar to BP and Chevron.

Importantly, upstream operations generate the majority of earnings for XOM. The company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing new drilling techniques and artificial intelligence to boost and optimize production volumes at lower cost structures.

In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Robust production from both assets has been aiding its top and bottom lines. In both resources, the breakeven costs are low.

Robust Balance Sheet & Dividend Commitment of XOMInvestors should also keep in mind that XOM has a strong balance sheet that can support it during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is 13.73%, significantly lower than 28.48% of the industry’s composite stocks.

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Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.

Time to Bet on XOM?Coming to the valuation story, ExxonMobil is trading at a premium. On a relative basis, the stock is trading at a 9.18x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 5.90x. BP and Chevron are trading at 2.89x and 7.82x, respectively.

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Since the stock is relatively expensive now, investors should wait for the ideal time to bet on XOM. However, those who have already invested may continue to hold on to the stock, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PepsiCo shares are down nearly 12% this year and about 16% since Elliott Investment Management took a roughly $4 billion stake. Summary

Wall Street expects third-quarter revenue of $24.96 billion, up 4.3%, with adjusted EPS near $2.29.

PepsiCo Inc. (PEP, Financials) faces earnings release with investors still searching for proof its recovery in North America is gaining traction.

The corporation has reduced pricing by up to 15% on brands such as Lay's and Doritos, boosted marketing and widened distribution. So far such efforts haven't achieved the improvement investors sought.

Core operating margin was 16.3% in the first half down 15 basis points year on year. That is at odds with PepsiCo's target, disclosed after talks with activist investor Elliott Investment Management, of boosting margins by 100 basis points over three years.

Inflation is hardly the only pressure anymore.

The longer-term challenge to PepsiCo's snack portfolio is from GLP-1 weight-loss medications that are spurring better eating. The firm has reacted with items like Doritos Protein and SunChips Fiber but its valuation has already shrunk. Enterprise value has dropped to around 10 times EBITDA from 18 times in mid-2022.

Investors now need to see North American volumes and margins stabilize. Analysts are forecasting $24.96 billion in sales, up 4.3%, for the third quarter with adjusted EPS of around $2.29.

The findings Thursday will demonstrate if PepsiCo's turnaround is finally taking hold or if further improvements are needed.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Key Takeaways Qualcomm has risen 5.9% year to date, far behind the semiconductor industry's 205.5% gain.QCT handset revenues fell 20% in fiscal Q3, while Apple-related revenues are set to drop faster than expected.Qualcomm expects QCT margins to weaken further as input costs rise and data-center expansion adds risk. Qualcomm Incorporated (QCOM - Free Report) has jumped 5.9% year to date compared with the Electronics - Semiconductors industry’s growth of 39.4%. It has lagged the broader technology sector and the S&P 500 during this time.

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The company has underperformed its competitors like Intel Corporation (INTC - Free Report) and Advanced Micro Devices (AMD - Free Report) . Intel has surged 205.5%, while AMD has improved 204.3%.

Handset Weakness Remains QCOM’s Biggest Near-Term ProblemQualcomm’s core handset business is witnessing weak demand trends. In the third quarter of fiscal 2026, QCT handset revenues dropped 20% year over year to $5.09 billion. Management expects fiscal 2026 Android handset revenues to decline roughly 20%. Chinese OEM demand is expected to improve sequentially. However, this improvement is expected to be hindered by soft demand in other markets.

The company’s Apple exposure is changing faster than previously expected. Qualcomm now expects its modem share in the upcoming iPhone launch to be materially below the earlier 20% assumption. Apple-related product revenues could decline by about 50% sequentially from September to December 2026, while fiscal 2027 Apple product revenues are expected to fall below the earlier expectation of slightly more than $2 billion. Qualcomm expects this decline can be compensated by growth in non-handset business. But execution risks remain.

Higher Input Costs Are Hindering QCOM’s MarginThe semiconductor industry overall is witnessing increasing expenses across wafers, assembly, testing, advanced packaging and memory. Qualcomm is responding to these necessary price adjustments. But those increases will take time to get reflected in the financial results. Higher input costs are already impacting QCOM’s margin.

In the third quarter of fiscal 2026, its QCT segment’s EBT margin fell to 26% from 30% a year earlier, while QTL EBT margin declined to 69% from 71%. More importantly, Qualcomm expects QCT EBT margin to fall further to 23%-25% in the fourth quarter.

The Zacks Consensus Estimate suggests fiscal 2027 EPS at $10.02 versus $10.55 for fiscal 2026. At the same time, fiscal 2027 revenues are estimated at $44.34 billion compared with $42.89 billion for fiscal 2026. Revenues are expected to grow while EPS declines, highlighting the effect of margin and cost pressures.

Data-Center Expansion Offers Potential but it is Not Yet ProvenQualcomm is investing heavily to establish itself in data-center infrastructure. It is venturing into custom silicon, AI accelerators, connectivity and server CPUs. The opportunity is vast, but requires substantial investment in the near term. Execution risk and competition from other major players such as AMD and Intel. AMD already offers a broad data-center portfolio spanning EPYC CPUs, Instinct AI accelerators, networking and software, while Intel continues to strengthen its Xeon, networking and AI accelerator offerings.

Estimate Revision Trend of QCOMEarnings estimates for fiscal 2026 and 2027 have decreased over the past 60 days.

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Key Valuation Metric of QCOMGoing by the price/earnings ratio, the company's shares currently trade at 17.98 forward earnings, higher than 14.24 for the industry. From a valuation standpoint, QCOM appears to be trading at a premium compared to the industry.

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End NoteQualcomm’s growth trajectory can be compelling if it can diversify its portfolio. However, in the short run, declining handset revenue, falling Apple contribution in revenue and higher input costs are major concerns. Its venture in the data center space can be affected by growing competition. Hence, with a Zacks Rank #4 (Sell), investors should avoid investing in Qualcomm stock at present. 

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

Key Takeaways Phillips 66 sees refining support from strong fuel demand and relatively tight global inventories.PSX's midstream assets provide stable cash flows and help reduce exposure to commodity price volatility.Phillips 66's shares rose 103.8% in the past year, while its 2026 earnings estimate recently increased. With West Texas Intermediate (“WTI”) oil prices currently hovering around $90 per barrel, according to Oilprice.com, and owing to tensions in the Middle East, the overall energy business is uncertain.

The U.S. Energy Information Administration projects the spot average WTI price for 2026 at $88.21 per barrel, higher than $65.40 in 2025. Thus, Phillips 66 (PSX - Free Report) , which generates significant margin from its refining activities, is likely to be hurt by high oil prices. Despite the high input cost, the refining business environment is highly profitable as demand for fuels remained strong, while global fuel inventories stayed relatively tight.

Investors should also know that although a leading refiner, PSX, unlike most of its refining peers, has diversified the business across midstream and chemicals. Along with investing in refining operations, Phillips 66 is allocating a significant amount of capital to midstream.  

Midstream business, by its very definition, is stable, generating stable cash flows as the assets are being utilized by shippers for the long term, and is less vulnerable to commodity price volatility. Hence, having a diversified business model, Phillips 66 is insulated from commodity price volatility to a great extent.

DINO & PARR Poised to GainHF Sinclair (DINO - Free Report) and Par Pacific Holdings Inc. (PARR - Free Report) , two other well-known refiners, are also likely to benefit from the ongoing favorable refining business.

On its second-quarter 2026 call, HF Sinclair mentioned that wars in the Middle East and Ukraine have disrupted refining capacities. DINO stated that inventories of fuel in the United States and in its key operating regions are low, especially when the demand for the end products remains healthy, thereby creating opportunities to earn healthy refining margins.

Par Pacific continued to benefit from a strong refining market at the start of the third quarter. The company’s refining index, which is a rough measure of how profitable it is to turn crude oil into products like gasoline and diesel, was still very high in July at $31.34 per barrel, only slightly below the second-quarter average of about $33.

Demand for fuels remained strong, especially on the mainland, while global fuel inventories stayed relatively tight. In simple terms, there was still healthy demand for refined products and limited excess supply, which helped PARR continue earning attractive margins from its refineries.

PSX’s Price Performance, Valuation & EstimatesShares of PSX have gained 103.8% over the past year compared with the 120.9% rise of the composite stocks belonging to the industry.

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From a valuation standpoint, PSX trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.95X. This is above the broader industry average of 6.05X.

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The Zacks Consensus Estimate for PSX’s 2026 earnings has gone up over the past seven days.

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Phillips 66 currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

UPS yields 7% and the dividend has held steady for seven straight payments, but one look at where the cash is actually coming from turns that income story into something far more uncomfortable.

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United Parcel Service (NYSE:UPS | UPS Price Prediction) trades at $93.26. The stock is down 8.83% over the past month and 34.97% over five years. Its $6.56 annualized dividend now yields about 7.03%, and that payout grounds the investment case. When one number supports the whole case, it needs a stress test. The right test is free cash flow, because that is the cash that actually pays the dividend.

Three Years of Thin Cash Coverage Year Operating Cash Flow Capex Dividends Paid Dividends as % of OCF Minus Capex 2023 $10.238B $5.158B $5.372B 105.7% 2024 $10.122B $3.909B $5.399B 86.9% 2025 $8.45B $3.685B $5.398B 113.3% Coverage worsened in 2025. On the July 28 call, management stated the 2026 plan simply:

“We are still planning to pay out around $5.4 billion in dividends in 2026, subject to Board approval.”

Forecast free cash flow is approximately $5.5 billion, which puts the dividend at 98% of it. Year-to-date free cash flow reached only $1.6 billion against $2.7 billion in dividends paid, so the second half has to produce $3.9 billion. Buybacks fell to zero in both 2026 quarters. The quarterly dividend has held at $1.64 for seven straight payments.

Amazon Exit Shrinks the Base Under the Payout UPS cut approximately 2 million pieces per day of Amazon (NASDAQ:AMZN) volume and removed approximately $4.5 billion of expense. In Q2, package volume fell 3.6% while revenue per piece rose 11.3%. CEO Carol Tomé called the result “an expected and significant shift in our performance,” and management added:

“But this reconfiguration was never the destination. It was the foundation.”

That foundation is expensive to build. GAAP EPS was $0.71, while adjusted EPS was $1.76. The gap came from $1.172 billion in transformation costs. Fuel costs also rose 60.4%.

FedEx and Amazon Show What UPS Gave Up FedEx (NYSE:FDX) pays $5.57 against $18.55 in EPS, a payout ratio of about 30% and a yield of 1.93%. UPS pays $6.56 on $5.38 in trailing GAAP EPS, or 122%. Amazon pays no dividend, reinvests everything and trades at 24x forward earnings. UPS trades at 12x. The market prices UPS as an income stream with little growth attached.

Opportunity or Warning: Verdict and Trigger The bull case rests on history: dividend records go back to 1999, forecast adjusted EPS of $7.22 covers the payout, and UPS supports no outstanding commercial paper.

The yield is still a warning sign. Cash fell to $4.653B, a $1.3 billion pension contribution is due, and the Teamsters contract is two years out. Free cash flow fell short of the dividend in two of the past three years, which leaves the payout frozen with almost no cushion. Holders are making 7% today with little chance of a raise.

The signal to watch: if full-year 2026 free cash flow lands below the $5.4 billion dividend commitment, UPS will be funding its payout from the balance sheet. At that point, the yield measures risk more than return (the warning signs that a fat yield is about to be cut are the subject of a free report we put together here: Dividend Traps).

Contact [email protected] for any questions or corrections.