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Key Takeaways HRL began benefiting from lower pork commodity prices in the third quarter, with more gains expected ahead.HRL faced elevated beef, freight, logistics and fuel costs, plus higher short-term turkey supply-chain costs.HRL is using pricing, mix, efficiency gains and SG&A actions to improve profitability amid cost pressures. Hormel Foods Corporation (HRL - Free Report) continues to navigate input cost pressures through pricing actions, supply chain improvements and favorable developments in select raw material markets. While commodity dynamics remain mixed, lower pork commodity prices began to benefit in the third quarter of fiscal 2026, though the timing of cost recognition delayed the full benefit, with a greater portion of the benefit expected in future quarters.

However, beef costs remained higher than last year, while freight, logistics and fuel expenses continued to weigh on performance. Grain and beef costs are expected to stay elevated in some areas, and the turkey business also faced short-term pressure from higher temperatures and weaker feed efficiency. Fuel costs eased for a time but later moved higher again, leaving the company’s overall logistics outlook largely unchanged.

Hormel Foods continues to build long-term capabilities across its supply chain, including through Hormel production systems that are driving more consistent and improved performance across its manufacturing network. The company is also enhancing its data and planning tools to improve collaboration and support better decision-making across the enterprise. Management remains positive about the progress being made in these areas while navigating short-term headwinds.

Additionally, Hormel Foods is using multiple levers to improve bottom-line performance, including pricing, mix, efficiency gains and SG&A actions. The company successfully executed two waves of pricing actions, while the team continues to focus on mix. The company has also generated further efficiency gains and taken significant SG&A actions. 
Looking ahead, Hormel Foods appears well positioned to partially offset persistent input cost pressures through a combination of pricing, mix improvement, efficiency gains and tighter cost discipline. Lower pork costs should provide additional support in coming quarters, while ongoing supply chain and SG&A initiatives could help cushion elevated beef, freight and other operating expenses. The effectiveness of these actions will remain important to watch as the company works to protect profitability in a still-challenging cost environment.

The Zacks Rundown for HRLThe company’s shares have lost 19% in the past three months compared with the industry’s 14.4% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.93, in line with the industry’s average. HRL currently carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.

Image Source: Zacks Investment Research

Stocks to ConsiderThe Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.

Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.

The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average. 

Key Takeaways Realty Income sold 177 properties for $348.6 million in first-half 2026 net proceeds.Sales generated $73.9 million in gains, while investments reached about $5.3 billion.First-half investments had a 7.2% cash yield, with other investments reaching an 8.3% yield. Realty Income (O - Free Report) is increasingly using property dispositions as part of its broader capital-allocation strategy. In the first half of 2026, the company sold 177 properties for $348.6 million in net proceeds, up from $209.4 million in the comparable period a year earlier. The sales generated $73.9 million in gains, providing an additional source of capital alongside operating cash flow and external funding.

While disposition proceeds remain modest relative to Realty Income’s investment activity, they can support portfolio optimization. The company invested about $5.3 billion during the first half, meaning property sales funded only a fraction of its deployment. Still, selling vacant or less strategically attractive assets can free capital for potentially higher-return opportunities without relying entirely on debt or equity financing.

The reinvestment opportunity is particularly notable, given Realty Income’s current investment yields. First-half investments carried an initial weighted-average cash yield of 7.2%, while development investments generated about 7.5%. Other investments, including loans and preferred equity, offered an even higher 8.3% yield. This provides multiple avenues for redeploying proceeds from asset sales.

Capital recycling could help Realty Income improve its portfolio over time while supporting its $10 billion 2026 investment target. However, sales do not automatically create better returns. The company must ensure replacement investments offer attractive risk-adjusted returns after considering financing costs, transaction expenses and market conditions. With its large and diversified portfolio, disciplined recycling could complement acquisitions and reduce dependence on external capital.

How Are Realty Income’s Peers Faring?Agree Realty Corporation (ADC - Free Report) focuses on high-quality, net-leased retail properties, with emphasis on investment-grade tenants and necessity-based retailers. The company invested $502 million in the second quarter of 2026. AFFO per share rose 7.4% to $1.14, while it sold 14 properties for $30.3 million.

NNN REIT, Inc. (NNN - Free Report) owns a diversified portfolio of single-tenant retail properties under long-term net leases. The company regularly uses property sales to prune weaker assets, manage tenant exposure and recycle proceeds into new acquisitions. From 2006 through 2025, the company has sold 953 properties generating $2.5 billion in net proceeds.

Realty Income’s Price Performance, Valuation and EstimatesShares of Realty Income have dipped 14.2% over the past three months, underperforming the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month Price/Earnings (P/E), Realty Income is currently trading at 11.93X, which is at a discount to the industry average of 15.31X.

Image Source: Zacks Investment Research

Realty Income’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent over the past month. The consensus estimate calls for 3.3% growth year over year.

Image Source: Zacks Investment Research

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

Only part of the headline value is committed; most payments require research, clinical or commercial milestones. Summary

Lilly added discovery options without assuming an immediate $870 million expense.

Eli Lilly LLY, the medicines and metabolic-disease company, expanded its drug-discovery partnership with Gate Bioscience, with shares up approximately 3.6% at 11.44am EST to $1,200.23 on October 7, 2026. The target: proteins that have proved tough for conventional medicines to tackle. The valuation picture shows shares sitting 23.49% below the roughly $1,570 GF Value estimate, suggesting potential upside if the assumptions behind that estimate hold.

The expanded agreement adds one target and gives Lilly an option to pursue a second. Potential payments could exceed $870 million if the specified milestones are met. Gate gets an undisclosed upfront payment plus research funding. Lilly gets worldwide development and commercialization rights for selected programs. That headline number is a conditional payout ceiling, not cash already spent.

For Lilly, the appeal is a wider hunting ground for new medicines. But more targets do not automatically mean more successful drugs. The programs still need to clear candidate selection, preclinical testing and eventually human trials. Investors should watch what emerges from the lab: a promising candidate would say far more about the partnership's value than its maximum deal size.

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 Schwab will sell Forge Trust to Alto, refining its private-market operations after acquiring Forge Global.The sale lets SCHW retain private market exposure through Forge Global while shedding specialized IRA custody.Rising expenses and a premium valuation remain key risks as Schwab optimizes its business portfolio. The Charles Schwab Corporation (SCHW - Free Report) is sharpening its strategic focus. It has agreed to sell Forge Trust Co. and its parent company, Forge Services Inc., to Alto, a technology-led platform connecting retirement capital with private markets. The transaction is subject to approval by the South Dakota Division of Banking. The financial terms have not been disclosed. The deal is expected to simplify Schwab’s private market operations.

Forge Trust is a South Dakota-based chartered self-directed Individual Retirement Account (IRA) custodian with more than 40 years of operating history. It specializes in custody of alternative assets, including private stock, private equity, real estate, private placements, promissory notes and precious metals. Forge Trust is a subsidiary of Forge Global, which Schwab acquired in March 2026.

Per the deal, Alto will add Forge Trust’s alternative asset capabilities, account types and established client and partner relationships to its existing custody and investment infrastructure. On the other hand, the divestiture will allow Schwab to focus on the parts of the Forge Global business that complement its broader private-market strategy.

Per the Preqin Releases Private Markets in 2030 Report released last October, the broader private-markets opportunity remains significant, with global alternative assets under management expected to approach $32 trillion by 2030. Additionally, a statistical report from the Investment Company Institute mentioned that more than $19.9 trillion currently sits in IRAs, representing a substantial pool of retirement capital that could potentially be directed toward alternative investments.

For Schwab, the Forge Trust sale therefore represents a portfolio adjustment rather than a retreat from the private markets business. The company will maintain its private market exposure through Forge Global while avoiding the need to operate a specialized self-directed IRA custody platform.

Our Take on Schwab’s Business Streamlining PlanSchwab’s planned sale of Forge Trust to Alto is strategically positive, allowing the company to refine its private-market operations only months after acquiring Forge Global. The deal’s financial impact remains uncertain, but the transaction fits Schwab’s broader focus on optimizing its business portfolio. Continued client-asset growth and earnings momentum support the long-term outlook, although elevated expenses and premium valuation remain key risks.

Over the past six months, shares of Schwab have risen 0.1%, underperforming the industry’s 5.6% growth.

6-Month Price Performance

Image Source: Zacks Investment Research

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

Similar Steps Taken by Other Financial FirmsIn the previous month, Truist Financial Corporation (TFC - Free Report) exited the near-prime auto lending business by selling $5.5 billion of loans tied to its Regional Acceptance Corporation (RAC) subsidiary. The move was part of new CEO Mike Lyons’ broader strategic review to reduce exposure to businesses that do not align with Truist’s strategic priorities or profitability goals and redirect resources toward core, higher-return franchises.

The transaction is expected to generate $5.2 billion of net proceeds and a $535 million loan-loss reserve recapture. The sale is also projected to create approximately $945 million, or 22 basis points (bps), of Common Equity Tier 1 (CET1) capital, while reducing non-performing loans and annualized net charge-offs by roughly 10 bps each.

Likewise, HSBC Holdings plc (HSBC - Free Report) is winding down its transaction services business in Germany, affecting approximately 320 positions by 2028. The move is part of the company’s broader simplification strategy to reduce exposure to lower-priority operations and redirect resources toward core franchises and higher-growth markets.

The restructuring affects around 300 positions at HSBC Transaction Services GmbH and 20 at HSBC Service Company Germany GmbH. The business provides securities processing, administration, and custody services. HSBC’s earlier exit from private banking in Germany and planned carve-out of custody and fund administration businesses reduced domestic processing volumes supporting the operation.

PITTSBURGH--(BUSINESS WIRE)--PPG (NYSE: PPG) today announced a $70 million investment to expand its aerospace transparencies site in Huntsville, Alabama. The investment is part of a series of multi-year projects that support the company’s ongoing efforts to increase production capacity and continued growth of PPG’s aerospace transparencies business.

“Demand for aerospace transparencies continues to grow across commercial, military and general aviation markets,” said Francois Buehlmann, PPG general manager, global transparencies, Aerospace. “This expansion increases our operational efficiency, provides room for future equipment investments and reinforces our long-term commitment to serving customers and investing in Huntsville.”

The expansion includes the lease and build-out of a new 112,000-square-foot facility that will house production support functions, enabling additional manufacturing space at PPG's existing aerospace transparencies facility. The ongoing projects enhance the company's ability to meet growing customer demand for aircraft cockpit windows and passenger windows while positioning the site for future growth.

“Huntsville is recognized globally for innovation and leadership in aerospace,” said Buehlmann. “We are proud to continue investing in this community and look forward to growing alongside the region's dynamic aerospace network.”

The company has operated its aerospace transparencies manufacturing facility in Huntsville for more than 55 years. PPG's aerospace business supplies coatings, sealants, transparencies, engineered materials and related services to commercial, regional, general aviation and military customers worldwide.

PPG: WE PROTECT AND BEAUTIFY THE WORLD®

At PPG (NYSE: PPG), we work every day to develop and deliver the paints, coatings and specialty products that our customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we market and sell in more than 50 countries and reported net sales of $15.9 billion in 2025. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

The PPG Logo and We protect and beautify the world are registered trademarks of PPG Industries Ohio, Inc.

The accelerator can generate integrations and investments, but CrowdStrike disclosed no direct revenue commitment. Summary

CrowdStrike is cultivating future platform demand before those startups become material customers.

CrowdStrike CRWD, the cloud-cybersecurity platform, expanded its global startup accelerator with Amazon Web Services and Nvidia, while shares fell approximately 3.4% at 11.10am to $269.38 on Oct. 7. The partnership gives young security companies more ways to build products around Falcon and reach enterprise buyers. For investors, the opportunity is straightforward: more useful applications could give customers more reasons to spend on CrowdStrike's platform.

The company outlined an eight-week program offering Falcon Foundry tools, APIs and opportunities for verified integrations and Marketplace listings. Up to ten startups will advance to pitch at RSAC 2027, with standout participants potentially considered for Falcon Fund investment. CrowdStrike says earlier cohorts supported more than 90 startups that collectively raised nearly $1 billion. That money went to participating companies; it is not CrowdStrike revenue.

The valuation leaves little room for weak execution: the shares sit 95.17% above the chart's $138.02 GF Value estimate. Bringing outside developers into Falcon could broaden its capabilities without requiring CrowdStrike to build every tool itself. But an accelerator announcement does not establish a recurring-revenue stream. The financial payoff depends on startups delivering products customers actually buy—and those purchases strengthening Falcon adoption. More participants help fill the pipeline. Paying customers make it valuable.

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 NET launched Basin to help customers collect, store and analyze data without managing dedicated servers.Basin uses Apache Iceberg and Cloudflare R2 to simplify data management and reduce infrastructure costs.Basin could expand NET's platform usage as businesses build AI and cloud applications requiring more data. Cloudflare (NET - Free Report) is expanding its platform with the launch of Basin, a data platform designed to help developers and enterprises collect, store and analyze data without managing dedicated servers. Basin is built on Apache Iceberg and Cloudflare R2, allowing customers to work with data using tools they already use. It also removes data transfer fees between clouds. By making data management simpler and reducing infrastructure costs, Basin could help Cloudflare attract more developers and enterprises to its platform.

Basin is designed to address some of the main challenges of running a modern data stack. Traditional data platforms often require dedicated servers, multiple systems and significant data movement, which can increase costs and complexity. Basin uses a serverless model, allowing teams to ingest, organize and query data on demand through Cloudflare’s network. This could make data analytics more accessible to smaller teams that may not have large data engineering resources.

The launch also strengthens Cloudflare’s position in AI-related workloads, which increasingly depend on large amounts of data. Basin allows customers to store and analyze data in an open format without locking it to one provider. This can be useful for businesses building AI applications that need to access data across different tools, clouds and regions. Cloudflare is therefore expanding from providing the infrastructure to run applications toward helping customers manage the data that supports those applications.

Basin’s early customer feedback points to demand for a simpler data architecture. Cloudflare highlighted customers such as Anomaly, the company behind the open-source AI coding agent OpenCode, that moved its entire data pipeline to Basin, replacing an AWS S3 and Athena setup. Further, Bobsled, a data platform company, is also using Basin to make its data available across major data and AI platforms while avoiding egress fees. As more companies build AI and cloud applications, Basin could give Cloudflare another way to increase platform usage and expand its addressable market.

Cloudflare Faces Tough CompetitionCompetitors like Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are also gaining ground through platform expansion and AI innovation.

Palo Alto Networks is benefiting from the broader shift toward AI as enterprises expand their security and infrastructure needs. The company is using its platformization strategy to combine network security, SASE and AI security, encouraging customers to consolidate more products on one platform. In fiscal 2026, PANW displaced legacy vendors in nearly 100 accounts worth more than $400 million in total contract value. As enterprises add more AI infrastructure and workloads, PANW can expand across more security layers and increase spending within existing enterprise accounts.

Zscaler is benefiting as enterprises extend Zero Trust beyond traditional users to AI applications, workloads and agents. Its Security for AI offering helps customers secure AI models, control agent access and protect sensitive data, while its broader Zero Trust platform can cover users, branches and cloud workloads. In fiscal 2026, Security for AI bookings increased more than 50% sequentially in the fourth quarter, while ARR from non-seat-based solutions grew more than 100% year over year. As AI adoption expands, ZS can use its broader platform to increase customer adoption and capture more enterprise security spending.

NET’s Price Performance, Valuation & EstimatesShares of Cloudflare have jumped 80% in the year-to-date period compared with the Zacks Internet – Software industry’s return of 8.5%.

NET YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, NET trades at a forward price-to-sales ratio of 35.81, significantly higher than the industry’s average of 4.44. The Zacks Value Score of F suggests that NET stock is overvalued.

NET Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NET’s 2026 earnings is pegged at $1.26 per share, unchanged over the past 30 days, indicating a 35.5% increase from the previous year.

Image Source: Zacks Investment Research

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

DraftKings Inc. NASDAQ: DKNG is moving to capture the prediction market sector through its newly launched, CFTC-regulated DKeX exchange.

DraftKings Today

$19.09 -0.66 (-3.36%)

As of 01:23 PM Eastern

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

$18.52▼

$36.98$33.95

As its primary rival, Kalshi, faces state-level litigation, DraftKings' pivot offers a remedy to the sports seasonality that has historically plagued its earnings. This transition opens a high-margin revenue vertical of about $800 million, and investors are accumulating the company's stock as it sits near 52-week lows.

The legacy sportsbook model is facing headwinds. Recent data shows an approximate 4.6% year-over-year revenue contraction to around $1.44 billion, signaling that the core betting business requires a catalyst.

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Sports betting relies heavily on seasonal events like the NFL schedule, leaving revenue gaps during summer months. By pivoting to event-driven contracts, DraftKings creates a year-round engagement engine. Investors evaluating DKNG's current price of around $19 are weighing near-term margin compression against the long-term cash flow potential of a regulated exchange.

Raising the Stakes: DKeX and the $800 Million VectorBank of America recently upgraded DraftKings from Neutral to Buy and maintained a $27 price target. This localized upward price action stems from the improving risk-reward profile created by the prediction market rollout. Bank of America's financial modeling indicates that the proprietary DKeX exchange could generate an estimated $600 million to $800 million in revenue by 2027. This includes roughly $400 million in direct transaction fees and up to $400 million in internal market-making operations.

Understanding the economics requires looking at the underlying infrastructure. DraftKings launched DKeX in June 2026, powered by its previous acquisition of Railbird Technologies. Owning the exchange software outright reduces external vendor costs and lets DraftKings capture the full margin on transactions. Instead of merely taking a small cut of a traditional sports wager, DraftKings now also operates as an event-contract exchange.

Event contracts function as binary options, where users buy a "yes" or "no" share on a specific outcome. Because the exchange simply matches buyers and sellers, the house takes no directional risk. DraftKings collects a transaction fee on every trade. Combined with internal market-making operations that provide liquidity, the platform captures margin on both the spread and the transaction fee.

Sanford C. Bernstein estimates DKeX will hit about $1 billion in consumer trading volume by December 2026. This projection provides a near-term metric for tracking the pivot's success relative to the recent decline in sportsbook revenue. The prediction market model provides year-round event trading that smooths out the volatile seasonal revenue curves associated with traditional sports betting.

Boxing Out the CompetitionThe competitive landscape presents some immediate challenges to DraftKings' operations. Fanatics is currently deploying an estimated $1 billion marketing budget for its betting operations. This escalation in advertising spending drives up customer acquisition costs across the sector, threatening traditional sportsbooks. DraftKings is utilizing the prediction market as an alternative, lower-cost acquisition channel.

Political events, economic data releases, and pop-culture outcomes attract a different demographic from traditional sports bettors. By cross-selling these new users into the core casino and sportsbook applications, DraftKings can lower its overall blended customer acquisition cost and improve total user lifetime value. This creates a more sustainable growth trajectory without engaging in a costly advertising war.

Private competitor Kalshi is reportedly seeking a $40 billion valuation and captured early NFL Week One prediction market share. Kalshi faces severe regulatory friction on its path to public markets. The private exchange is currently embroiled in aggressive litigation with multiple state attorneys general, including a recent high-profile lawsuit from New York.

This legal battle creates a structural advantage for DraftKings. The company already operates within an established state-by-state compliance framework and holds the necessary Commodity Futures Trading Commission approvals. While Kalshi dedicates capital to appellate courts and state regulators, DraftKings is deploying its cash toward user acquisition and platform liquidity. Regulatory compliance serves as a distinct operational moat, allowing DraftKings to capture retail market share in the prediction vertical without fighting new legal battles.

Hedging the Bet: DraftKings' Balance SheetInternal and external conviction are currently diverging, creating an interesting setup for value-oriented investors. Company insiders, including Director Jocelyn Moore, who liquidated roughly 10,700 shares in August 2026, have reduced their positions during the recent downward trend. Executive sales often signal near-term caution, but institutional sentiment provides a clear counterweight.

85th Percentile

Moderate Buy

77.8% Upside

Bearish

N/A

0.30 Selling Shares

202.50%

See Full Analysis

Entities like QRG Capital Management and NewEdge Advisors accumulated shares during the second quarter, treating the drop near the 52-week low of $18.52 as a strategic entry point. DraftKings' stock currently trades around $19 with a market capitalization of about $9.7 billion. Sell-side analysts maintain a Moderate Buy consensus, supported by an average 12-month price target of $34.04.

The fundamentals reveal a business in transition, navigating a complex macroeconomic environment. DraftKings carries a forward price-to-earnings ratio of about 48 and a heavily leveraged debt-to-equity ratio of 3.22. In a higher-interest-rate environment, carrying $3.22 in debt for every dollar of equity restricts financial flexibility. This leverage limits capacity to sustain a prolonged capital war against well-funded private rivals. Servicing this debt requires consistent cash flow, making DKeX's success vital for the company's future growth.

DraftKings recently beat net income, posting 9 cents in earnings per share versus a consensus estimate of 2 cents. This profitability pivot shows the company can optimize operations and cut unnecessary overhead while actively funding the DKeX expansion. With a beta of around 1.6, the stock is more volatile than the broader market. The stock is down about 44% year-to-date, reflecting market skepticism about the top-line contraction. However, recent institutional accumulation suggests professional money managers are focusing on 2027 cash flow projections rather than trailing 30-day performance.

The Final Hand: Evaluating the Event Exchange PivotDraftKings is fundamentally altering its core business model. The shift from a seasonal sports-beta play to a holistic, real-time event exchange provides a clear path to high-margin revenue generation. Monetizing election cycles and geopolitical events reduces reliance on the traditional sports calendar and creates a stickier, more engaged user base.

This transition will require careful execution. The heavy debt load and the recent contraction in core sportsbook revenue mean the DKeX platform must perform exactly as management models project. The $800 million projected revenue vector offers a compelling offset to rising customer acquisition costs, provided DraftKings maintains its regulatory advantage over private challengers. Investors evaluating consumer discretionary stocks might monitor DraftKings' monthly DKeX trading volumes heading into the winter months to gauge the success of the company's high-margin pivot before taking a position.

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On October 1, 2026, Corteva Inc. (NYSE:CTVA) completed the spin-off of its seed operating segment into Vylor Inc. (NYSE:VYLR) through a pro rata distribution to holders of record as of the close of business on September 24, 2026. Shareholders received one VYLR share for each CTVA share held. The distribution is tax-free for U.S. federal income tax purposes, except for cash in lieu of fractional shares.

Corteva keeps the Crop Protection business under the CTVA ticker. It is now a pure-play crop protection company, #4 globally, with one of the industry’s largest biologicals businesses. Vylor holds the Seed business, anchored by Pioneer, Brevant and Enlist. On FY2025 pro forma figures, Vylor is the larger and higher-margin entity, with $10.1billion revenue and $2.6 billion adjusted EBITDA (25.6% margin). Crop Protection posted $7.5 billion revenue and $1.35 billion EBITDA (18.0%).

The trading mechanics matter for the first-day numbers. Corteva determined there would be no “when-issued” trading in Vylor common stock or “ex-distribution” trading in Corteva common stock ahead of the distribution. As a result, October 1 was the first true price discovery for each standalone entity. That partly explains the volatility in the parent.

Index ReshuffleVylor joined the S&P 500 effective October 1, 2026, taking Corteva’s slot. Post spin, Corteva is scheduled to move to the S&P MidCap 400 effective October 6, replacing Olin Corp. (OLN). In our view, this is the most important near-term technical for CTVA. S&P 500 trackers received VYLR in the distribution and must exit their CTVA position. MidCap 400 trackers, the natural buyers, manage a much smaller asset base.

Consolidated Performance: Value Created, Mostly Before the SplitOn a combined basis (1 CTVA + 1 VYLR), the holder of one pre-spin Corteva share is well ahead of the market since the October 2025 announcement:

The separation itself also added a modest amount of value. CTVA’s prior close before the spin was $77.65. Against that, the combined position closed at $78.85 on day one (+1.5%) and $79.54 on day two (+2.4%). In our view, the bulk of the re-rating happened during the 12-month run-up as investors priced in a pure-play seed franchise, and the market has broadly endorsed the break-up since completion.

Individual Performance

On the first day of regular-way trading (Oct 01, 2026), the parent lost -12.95% while the spin-off gained 0.42%.

Vylor traded like a quality S&P 500 compounder from the open. Corteva traded like a classic orphaned parent. It lost 17.5% in two sessions and now accounts for just 15% of the combined enterprise value, despite generating 32% of combined FY2027E EBITDA.

We attribute the CTVA weakness mainly to technical and positioning factors rather than fundamentals. First, the stock faces index-driven selling ahead of its S&P 500 exit. Second, its market cap dropped from more than $50 billion to about $8 billion, which pushes it out of many large-cap mandates. Third, holders who owned Corteva for the seed franchise are now exiting. The parent also retains the majority of pension, PFAS, environmental and litigation liabilities, which some investors will avoid regardless of price. That said, pension risk has been materially reduced. Corteva contributed approximately $1.46 billion to its principal U.S. plan in June and July 2026.

ValuationWe value each company on FY2027E EBITDA using the multiple its standalone peer group would support.

New Corteva: 9.0x FY2027E EBITDA. This is a premium to the crop protection peer average of 6.7x (FMC, ADAMA, Nufarm, Bayer, UPL). We believe it is justified because about two-thirds of the portfolio is differentiated or patented product, biologicals are targeted to reach $1 billion by decade-end, at least seven new active ingredients are expected over the next decade (including Haviza, with >$0.5 billion peak sales potential), and the balance sheet sits in net cash of $630M pro forma. We expect the crop protection market to return to low-single-digit growth, with Chinese active-ingredient pricing firming into late 2026 and 2027.

Vylor: 15.0x FY2027E adjusted EBITDA. This is a premium to the seed peer average of 9.3x. We believe it is warranted by scarcity value as one of very few global pure-play advanced genetics companies, adjusted EBITDA margins heading above 28%, licensing turning royalty-positive in 2026, and optionality in hybrid wheat (2027 launch), gene editing and biofuels. Bayer’s 18.6x EV/EBITDA acquisition of Monsanto remains the upper anchor.

Our View. Vylor is the higher-quality asset as it is larger, faster-growing, higher-margin and offers relatively scarce pure-play exposure. At $67.62, however, the shares already imply a valuation above our target multiple, limiting near-term upside.

New Corteva is the more compelling post-spin opportunity, in our view. The company emerges as a differentiated crop-protection franchise with a net-cash balance sheet, yet is likely to face technical selling from index and mandate related repositioning. This could create an opportunity for investors to take positions at attractive entry price.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Key Takeaways CMG's catering and Build-Your-Own Chipotle offerings currently account for 2%-3% of sales.Chipotle's Chicago, Boston and Phoenix pilots are shaping technology and operations for a 2027 rollout.CMG is seeing higher Build-Your-Own orders after repositioning the offering around convenience and value. Chipotle Mexican Grill, Inc. (CMG - Free Report) is preparing for a national catering launch in 2027 as it expands its presence in group dining occasions. Catering and Build-Your-Own Chipotle together account for 2%-3% of sales. The company views these offerings as highly incremental and operationally efficient, supporting its efforts to develop additional transaction growth drivers under its Recipe for Growth strategy.

Early results from catering pilots in Chicago, Boston and Phoenix have been encouraging. These tests have helped Chipotle assess the operational and technology requirements for expansion across its own ordering channels and third-party marketplaces. The company is incorporating the remaining pilot learnings as it prepares for broader deployment in 2027.

Alongside catering, Chipotle is positioning Build-Your-Own Chipotle more clearly as a family meal solution. The revised messaging highlights convenience and value, helping customers better understand the offering. Orders have increased notably following the change, supporting the company’s push to capture more group dining occasions.

Chipotle’s planned catering launch offers a potential source of incremental sales growth in 2027. Encouraging pilot results and increased family meal orders support the opportunity to increase these offerings’ contribution to total sales.

Peers Tap Catering and New Meal OccasionsCAVA Group, Inc. (CAVA - Free Report) is advancing its catering initiatives as it evaluates opportunities for broader expansion. CAVA plans to add a second market test in fall 2026, building on its existing Houston pilot. The company is working to balance order volumes and align production capacity with catering demand, with the aim of enabling restaurant teams to reliably fulfill customer commitments. These operational preparations support CAVA’s efforts to establish the capacity needed for an eventual rollout across its restaurant system.

Sweetgreen, Inc. (SG - Free Report) reported continued strength in catering, which partially offset product-mix pressures in the second quarter of 2026. SG is also broadening meal occasions through menu innovation. Its nationally launched wraps maintained approximately 20% incidence, with more than half of customers who ordered a wrap returning within 30 days. Sweetgreen also views plates as an opportunity to expand its dinner business, supported by a menu innovation pipeline extending into 2027. These initiatives complement its efforts to increase visit frequency and restore sustainable transaction growth.

CMG’s Price Performance, Valuation & EstimatesShares of Chipotle have declined 24.6% in the past year compared with the industry’s fall of 11.1%.

CMG One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Chipotle trades at a forward price-to-sales (P/S) multiple of 2.78, below the industry’s average of 2.87.

CMG’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CMG’s 2026 earnings per share (EPS) implies a year-over-year decline of 2.6%. The EPS estimates for 2026 have declined in the past 30 days.

EPS Trend of CMG Stock
Image Source: Zacks Investment Research

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

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New Layer 1 automation switches provide dynamically configurable foundation to integrate physical test environments into automated CI/CD workflows

SANTA ROSA, Calif.--(BUSINESS WIRE)--Keysight Technologies, Inc. (NYSE: KEYS) today announced the Keysight Velocity 4900 Series, a new line of cost-effective Layer 1 automation switches designed to transform and automate physical connectivity in network test labs. Through software-controlled testbed configuration and management, the Velocity 4900 Series enables engineering teams to dynamically connect and automate the management of test equipment using an intuitive graphical user interface. Teams can securely access and share valuable lab resources remotely, improve equipment utilization, and create repeatable testing workflows for increasingly complex networks and infrastructure supporting AI, 6G, and next-generation services.

As the speed, scale, and complexity of next-generation network technologies and services increase, test teams face growing pressure to perform accurate, comprehensive validation and keep pace with rising traffic volumes. Yet many test labs still depend on manual cabling and time-consuming physical topology changes, leaving valuable equipment underutilized or inaccessible to remote teams. These limitations slow testing, increase the risk of configuration errors, and prevent physical lab infrastructure from integrating fully with automated development and continuous integration and continuous delivery (CI/CD) workflows. Without greater lab automation, organizations risk delays to product releases and critical network updates, with significant business and operational consequences.

The Velocity 4900 Series addresses this physical-connectivity bottleneck by replacing manual testbed configuration with software-controlled Layer 1 connectivity. Engineering teams can quickly create, save, modify, and reproduce physical test topologies while securely sharing expensive or scarce test resources with authorized users across teams and locations.

The first two models in the series are:

Keysight Velocity 4902: A high-speed Layer 1 automation switch supporting Ethernet speeds from 100 megabits per second (Mbps) to 100 gigabits per second (Gbps). The platform includes 72 QSFP28 ports, supporting 288 connections with breakouts, providing flexible connectivity for high-speed functional and performance testing. Keysight Velocity 4906: A high-density Layer 1 automation switch with 288 SFP28 ports supporting Ethernet speeds from 100 Mbps to 25 Gbps. Its density enables organizations to connect and automate a larger portion of their lab inventory within a compact, fixed-form-factor platform. Both switches provide true Layer 1 forwarding through an ultra-low-latency, fully transparent switching matrix. They support single-mode fiber, multimode fiber, direct-attach copper, and active optical cables, with port speed and media configuration available on a per-port basis. Additional capabilities include port tapping for diagnostics and monitoring and one-to-many traffic replication for broader test coverage and more efficient reuse of traffic-generation resources.

Key benefits of the Velocity 4900 Series include:

Faster, repeatable testing: Automates physical testbed setup and teardown, allowing teams to provision complex topologies in seconds or minutes rather than relying on hours or days of manual cabling. Secure global resource sharing: Helps authorized engineers remotely access and share test equipment across labs, teams, and geographic locations without requiring physical cable changes or equipment movement. Improved equipment utilization: Enables organizations to pool scarce or expensive instruments, make underused assets available to more teams, and reduce unnecessary equipment duplication. Greater test coverage: Allows engineers using Velocity software to configure physical test environments, run tests, and automatically tear down and recreate those configurations in seconds, expanding test coverage while reducing manual effort and connection errors. Incremental lab modernization: Provides a cost-effective starting point for Layer 1 automation that can expand into resource reservation, lab orchestration, test automation, and CI/CD integration through the broader Keysight Velocity portfolio. Anil Kollipara, Vice President and General Manager of Automated Testing and Assurance, Keysight, said: “Engineering teams developing services and infrastructure to support AI, 6G, and next-generation systems need test environments that can change as rapidly as the technologies they are creating. The Velocity 4900 Series gives organizations a practical and cost-effective way to begin modernizing the physical lab. By automating Layer 1 connectivity and making test resources easier to share, Keysight is helping customers improve utilization, expand test coverage, and accelerate development without requiring a complete lab transformation.”

The Velocity 4900 Series integrates with the broader Keysight Velocity portfolio, enabling organizations to extend software-controlled physical connectivity into resource reservation, lab orchestration, test automation, and CI/CD workflows. The Keysight Velocity 4902 and 4906 are available for order immediately with initial deliveries planned for January 2027.

Resources

Velocity 4902 Automation Switch Web Page Velocity 4906 Automation Switch Web Page About Keysight Technologies

Keysight (NYSE: KEYS) serves technology innovators as a mission-critical design enablement partner for the world’s most complex engineering challenges. By connecting market-leading design, emulation, and test solutions across the full life cycle, Keysight helps engineering teams accelerate innovation, reduce risk, and bring new technologies to market faster. Customers across AI infrastructure, communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics rely on Keysight to bridge virtual design and physical reality, enabling confident decisions earlier. Learn more at www.keysight.com.

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What happened BioNTech SE (NASDAQ: BNTX) said Chief Executive Officer and 10% owner Ugur Sahin sold 93,000 ordinary shares over 2026-10-05 and 2026-10-06. On 2026-10-05, Sahin sold 72,000 shares at $97.2312, and on 2026-10-06, Sahin sold 21,000 shares at $96.8093. The shares fetched $96.81 to $97.23 apiece, for about $9.03 million. After the sales, Sahin held 87,209 shares directly. The filing says the trades followed a Rule 10b5-1 trading plan, and the plan was established on June 3, 2026.

Key numbers Metric Latest Change Source Shares sold 93,000 shares SEC Form 4 Total sale value $9.03 million SEC Form 4 Shares held after sale 87,209 shares SEC Form 4 Sale price range $96.81 to $97.23 per share SEC Form 4 Shares sold as a share of pre-trade holding 51.6% Calculated from SEC Form 4 Indirect ordinary shares held by Medine GmbH 39,218,111 shares SEC Form 4 Read more: BioNTech (BNTX) stock analysis and investment case

Why it matters OptimistFi's case is that BioNTech works only if its mRNA and immunotherapy platform becomes a durable non-COVID oncology business before vaccine cash flows and R&D losses erode option value. This filing is mixed for that view because Sahin reduced direct ownership, but the sales were preplanned rather than a spontaneous trade. The 93,000 shares were about 51.6% of the holding before the trade, so the move was a meaningful trim of the direct stake. The filing also says 39,218,111 ordinary shares are held by Medine GmbH. Of those shares, 106,721 are held for the benefit of an individual under a trust arrangement. Medine GmbH exercises voting power, but not dispositive power, over them while they are held in trust. Sahin may be deemed to beneficially own the ordinary shares held by Medine GmbH, which limits how much investors can read into the sale.

Related: BioNTech Ends Cancer-Vaccine Trial, Raising Stakes for Oncology

What's next The next quarterly report will be the next scheduled check on the broader story. Later ownership filings will show whether Sahin's direct stake stabilizes or keeps shrinking. A later buying filing would weaken the read that Sahin is steadily reducing direct exposure, while more planned selling would keep the signal mixed. Until then, this Form 4 is a snapshot of ownership, not an operating update. Investors get the cleanest read from whether the direct stake stops falling in later filings.

More from OptimistFi BNTX stock: the BioNTech 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 — BioNTech SE insider trade filed 2026-10-06 Read the full OptimistFi thesis on BioNTech SE: https://optimistfi.com/stocks/BNTX

See what would break the BioNTech SE 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 BioNTech SE investment case, its status and the next test to watch live on the BioNTech SE thesis page.

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

Key Takeaways Crocs brand international revenues rose 7% in Q2, with double-digit growth in China, India and Japan.Crocs opened about 160 mono-brand stores and kiosks, including 34 company-operated stores internationally.Crocs raised its 2026 brand revenue growth outlook to 2%-3%, with international markets expected to lead. Crocs, Inc. (CROX - Free Report) is increasingly leaning on its international business as a key growth engine, with momentum strengthening across several high-priority markets. In the second quarter of 2026, Crocs brand international revenues increased 7% year over year, supported by double-digit growth in China, India and Japan. The strength helped offset softer trends in North America and contributed to the Crocs brand crossing $1 billion in quarterly revenues for the first time. Management continues to see a long runway for international expansion, supported by strong consumer demand and healthy profitability across overseas markets.

The company is driving this momentum through localized product strategies, brand activations and an expanding retail presence. China delivered a record revenue quarter, aided by its mid-season festival and locally tailored products, while India benefited from marketing around the monsoon season. Japan remained strong across channels, supported by personalization and new and licensed products. Western Europe also saw solid direct-to-consumer trends, helped by demand for newer Echo and Crocband styles. Crocs further expanded its global footprint by opening about 160 mono-brand stores and kiosks during the quarter, including 34 company-operated stores internationally.

International strength is also playing a larger role in Crocs’ 2026 outlook. Management raised its full-year Crocs brand revenue forecast to growth of 2%-3%, up from its earlier expectation of flat to 2% growth, with international markets expected to lead the increase. While North America is still projected to decline for the year, Crocs’ ability to sustain growth in major overseas markets could provide an important offset. Continued product innovation, expanding distribution and rising brand relevance across China, India, Japan and Western Europe could keep international operations at the center of Crocs’ growth story through 2026 and beyond.

The Zacks Rundown for CROXCrocs’ shares have lost 1.8% in the past three months compared with the industry’s dip of 3.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, CROX trades at a forward price-to-earnings ratio of 8.12X, lower than the industry’s average 14.68X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CROX’s 2026 and 2027 EPS estimates imply year-over-year growth of 11.5% and 8.04%, respectively. The consensus mark for 2026 and 2027 EPS has remained stable in the past seven days.

Image Source: Zacks Investment Research

CROX stock presently carries a Zacks Rank #4 (Sell).

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

The Zacks Consensus Estimate for VNCE’s current fiscal-year sales and earnings implies growth of 14.03% and 175% from the year-ago reported figures. VNCE has delivered a trailing four-quarter earnings surprise of 561.4% on average.

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

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

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

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

Lumentum Holdings Inc. (NASDAQ:LITE) has cleared the ceiling that held the stock in check for nearly five months. Traders now want to know whether the old ceiling becomes the support.

LITE stock is moving. See the real-time price action here.  Five Months in a BoxThe optical-components maker hit an intraday high of $1,085.68 on May 12. Shares then slid to a July 29 low of $594.84 and spent late summer rebuilding.

The breakout came this month. Lumentum shares jumped 7.7% on Oct. 1 alone and closed at a record $1,133.40 on Tuesday. A year earlier the stock closed at $160.60, for a 12-month gain of about 606%, per Benzinga Pro data.

Two Chartists, One LineTwo CNBC contributors flagged the setup in advance. In a Sept. 24 column, Josh Brown of Ritholtz Wealth Management wrote about Lumentum.  

“A close above $1,085 opens up new ground on this chart.” He said he would prefer “to enter above $1000 if I’m trading it, and hold for the breakout above the May high.”

Jay Woods, chief market strategist at Freedom Capital Markets, picked up the thread on Tuesday. 

“We have a clear breakout from a consolidation area going back to April,” he wrote for CNBC. Woods sees upside to $1,200 and named $1,000 as downside risk, adding that “the old ceiling should become the new floor.”

Read Next

Watch $1,000The math cuts both ways. A move to $1,200 is about 5.9% above Tuesday’s close. A pullback to $1,000 would be roughly an 11.8% decline.

Momentum is getting stretched. Woods wrote that the daily relative strength index had just crossed 60. The 14-day RSI is now 66.16, per Benzinga Pro data, nearing the usual overbought line. Woods argued the five-year weekly chart shows “shares of LITE may remain overbought and trend higher for months.”

Fundamentals Behind the ChartAI networking demand is driving the rally. Nvidia Corp. (NASDAQ:NVDA) agreed in March to invest $2 billion in Lumentum as part of a broader photonics push,. 

Fiscal fourth-quarter revenue rose 109% year over year to $1.01 billion, and management guided the current quarter to $1.23 billion-$1.28 billion. The Street had expected about $1.15 billion. 

In an August CNBC interview, Lumentum CEO Michael Hurlston called the demand signal from hyperscalers “incredible."

A hold above $1,000 keeps the breakout intact. A drop back below the May high would suggest buyers ran too far, too fast.

LITE Stock Price Activity: Lumentum stock was down 2.35% at $1106.73 at the time of publication Wednesday, according to Benzinga Pro data.

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Key Takeaways MKL's Q2 combined ratio improved to 93%, while underwriting income more than doubled to $142.1 million. U.S. Wholesale & Specialty improved to a 97% combined ratio through better loss and expense ratios. Expense management and portfolio repositioning support profitability as pricing momentum moderates. Markel Group Inc. (MKL - Free Report) appears well positioned to sustain its improving underwriting profitability, although the pace of improvement could moderate as insurance pricing softens and catastrophe-related volatility persists.

In the second quarter of 2026, Markel Insurance’s combined ratio improved to 93% from 97% a year earlier, while underwriting income more than doubled to $142.1 million from $63.2 million. The six-month combined ratio also improved to 93% from 96%. The improvement was supported by favorable prior-year reserve development, a lower expense ratio and continued underwriting actions.

Several factors support the sustainability of this trend. Markel has been reorganizing and refocusing its insurance operations, with greater emphasis on disciplined risk selection, portfolio optimization and expense efficiency. The U.S. Wholesale & Specialty division’s combined ratio improved to 97% from 102%, reflecting improvements in both loss and expense ratios. These initiatives should help Markel maintain underwriting discipline even as pricing momentum moderates.

However, risks remain. Pricing is softening in parts of the market, particularly property, while Markel is deliberately reducing exposure to certain casualty and contractors’ lines. The Programs & Solutions division’s combined ratio deteriorated to 94% from 91%, partly due to higher losses in personal umbrella and certain delegated programs. Middle East conflict losses also added to volatility during the quarter.

Overall, Markel’s second-quarter results indicate that the improvement in underwriting profitability is becoming increasingly supported by operational and underwriting discipline rather than pricing alone. Continued expense management, portfolio repositioning and selective risk-taking should support margins. Investors will nevertheless watch whether MKL can sustain low-to-mid-90% combined ratios through exposure growth, risk selection and productivity gains as favorable pricing conditions fade.

What About Its Peers?W.R. Berkley Corporation (WRB - Free Report) appears well positioned to sustain improving underwriting profitability despite a gradually softer pricing environment. In the second quarter of 2026, WRB’s pre-tax underwriting income increased 21.8% year over year, while its current accident-year combined ratio, excluding catastrophes, remained strong at 88.1%. The improvement reflects disciplined risk selection, a favorable business mix, and expense management, which can help offset moderating insurance rates. With pricing momentum fading across parts of the commercial P&C market, investors will increasingly focus on whether WRB can preserve its underwriting margins through exposure growth, new business opportunities, retention and continued portfolio optimization.

Chubb Limited (CB - Free Report) appears well positioned to sustain improving underwriting profitability despite a gradually softer pricing environment. In the second quarter of 2026, Chubb’s P&C combined ratio was supported by strong underwriting performance, favorable business mix and disciplined risk selection. The company’s diversified portfolio across commercial P&C, specialty and international markets provides flexibility to manage areas where pricing is moderating, while continued exposure management and expense discipline should support margins. As rate increases lose momentum, investors will increasingly focus on whether Chubb can preserve its strong underwriting profitability through new business growth, retention, risk selection and portfolio optimization rather than relying primarily on pricing tailwinds.

MKL’s Price PerformanceShares of MKL have lost 11.1% in the past year against the industry’s growth of 2.5%.

Image Source: Zacks Investment Research

MKL’s UndervaluationThe stock is undervalued compared with its industry. Its forward price-to-book value of 1.13X is lower than the industry average of 2.67X. It carries a Value Score of B.

Image Source: Zacks Investment Research

Estimate Movement for MKLThe Zacks Consensus Estimate for MKL’s third-quarter and fourth-quarter 2026 EPS has both moved down 1.9% and 6.2%, respectively, in the past 60 days. The same for full-year 2026 and 2027 EPS has moved down 3.4% and 0.9%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

Mortgage rates are closing in on a threshold that forecasters said would not arrive until next year, and homebuilders are already making painful tradeoffs to keep buyers at the table.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A $400,000 mortgage now costs $2,786 a month in principal and interest. A year ago, the same loan cost $2,460, so the borrower pays $326 more each month, or $3,912 a year. The reason is that the average 30-year fixed rate rose to 7.46%, a one-year high, from 7.38%.

Freddie Mac’s weekly survey showed 7.28% on October 1, and a leading daily lender-quote index already reads 7.56%, above the 7.5% mark. Builder stocks went up anyway. On October 6, 2026, Lennar (NYSE:LEN | LEN Price Prediction) rose 3.99% to $77.41, and the iShares U.S. Home Construction ETF (CBOE:ITB) gained 1.66% to $87.

Why Rate Surveys Disagree Weekly surveys average lender quotes over several days and run behind the market. Daily indices reprice every afternoon. If you’re shopping for a loan, expect your quote to be near the daily number.

Freddie Mac’s figure rose from 7.03% the week before. Over the same period, the daily index eased 0.05 from 7.61%, although a year ago it stood at 6.38%.

Treasury Yields Set Your Mortgage Quote The 10-year Treasury yield closed at 5.27%, its highest close in 24 years. Mortgage rates track that yield much more closely than the federal funds rate. This gap means Fed cuts do not translate directly into lower mortgage rates.

The 10-year moves on inflation expectations and on how much debt the Treasury has to sell. Borrowers are already pulling back. Applications fell 6.0% in the latest weekly survey, and refinancing was down 56% from a year earlier.

Lennar Gives Up Margin to Keep Volume In Lennar’s fiscal third quarter, adjusted EPS of $1.23 missed the $1.2963 consensus. Homebuilding gross margin fell to 15.8% from 17.5%. New orders dropped 9%.

CEO Stuart Miller said the 30-year rate was “at approximately 6.8% at quarter end and even higher since.” On the earnings call, he stated: “we are compromising margin in order to maintain volume.”

Most margin goes into rate buydowns, where the builder pays the lender upfront so the buyer gets a lower rate. Incentives came to about 12.0% of sales. Higher rates make buydowns more expensive. Full-year delivery guidance was cut to 80,000 to 81,000 homes.

ITB spreads the same pressure across the whole builder group for a 0.37% expense ratio. It is down 8.62% for the year, compared with 23.52% for Lennar.

Rate Forecasts Already Look Out of Date In September, two major forecasters projected 6.8% by year-end, below every current reading. Lennar issued fourth-quarter margin guidance of 15.5% to 16.0% when the 30-year rate was approximately 7%.

Existing-home sales fell 2.0% in August to an annual rate of 3.98 million. The median price was $429,100. Prices stay high because owners locked into cheap mortgages will not sell.

Rates also explain only part of Lennar’s 6.75% drop over the past week, since a report questioned its land-banking relationship. Meanwhile, Berkshire Hathaway (NYSE:BRK.B) has kept adding to its Lennar stake.

How Lennar Stock Stacks Up Against ITB Now Lennar’s outlook looks weaker than that of the broader builder group. Lennar can close homes at these rates, but every buydown costs more. The stock trades below the $85.49 average price the company paid for buybacks in the third quarter.

ITB offers broader housing exposure than Lennar alone. It has held up far better, and its results depend on the whole builder group rather than on one company’s choice to give up margin.

The next test is Freddie Mac’s October 8 reading. If it comes in above 7.28%, a fourth-quarter margin at or below 15.5% becomes likely. If Lennar climbs back to $85.49 while rates stay this high, this view is wrong.

Contact [email protected] for any questions or corrections.

Fair Isaac Corporation (FICO) Securities Investigation Notice - Levi & KorsinskyPR Newswire

NEW YORK, Oct. 7, 2026

FICO shareholders saw after-hours and premarket losses of up to a reported 20% after the FHFA's mortgage credit score announcement. Levi & Korsinsky is investigating potential securities law violations on behalf of affected investors.

, /PRNewswire/ -- Shareholders of Fair Isaac Corporation (NYSE: FICO) saw as much as a reported 20% of their position's value erased in premarket trading after the Federal Housing Finance Agency (FHFA) announced it would simplify mortgage pricing and could allow a competing credit score into mortgage underwriting. If you held FICO shares when that announcement hit and lost money, you may have legal rights. Affected shareholders are encouraged to submit your losses for review now . You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

During FICO's second quarter earnings call, on April 28, 2026, when analyst Craig Huber for Huber Research Partners asked management to confirm that were "not worried at all that Vantage is going to take any meaningful share from you on the conforming mortgage side," CEO William J. Lansing affirmatively reassured investors that was "correct." On May 5, 2026, during a conference hosted by Barclays, CEO Lansing questioned whether "Vantage gets any share at all," even if they were approved.

Within hours of the FHFA announcement, Rocket Mortgage announced they will be utilizing VantageScore 4.0 as its "preferred credit scoring model for all eligible loans" moving forward.

Levi & Korsinsky is investigating potential securities law violations on behalf of FICO investors who suffered losses tied to the decline. Shareholders who sold into the decline and those still holding shares may both be eligible to participate in the investigation.

Lost money on FICO shares after the FHFA announcement? Start your confidential loss review or call (212) 363-7500.

Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

Frequently Asked Questions About the FICO Investigation

Q: How much did FICO stock drop? A: Shares fell more than 20% by the time the market opened on September 29, 2026, and by midday the stock had fallen more than 25% from the previous day's closing price. The drop followed the Federal Housing Finance Agency's announcement that it would simplify mortgage pricing and could allow a competing credit score into mortgage underwriting. Investors who purchased FICO shares and suffered losses may be eligible to seek recovery.

Q: Which statements are being investigated as potentially misleading? A: The investigation concerns whether FICO's statements to investors regarding its mortgage credit-scoring business and related regulatory risks were accurate and complete. When the FHFA announced its mortgage credit score changes and Rocket Mortgage announced the adoption of its competitor, VantageScore 4.0, as its default credit scoring model, FICO's stock price declined sharply.

Q: Who is eligible to participate in the FICO investigation? A: Investors who purchased FICO stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: What do FICO investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery . No immediate action is required to remain eligible to participate in the investigation.

Q: What documents do I need to participate? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my FICO shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought FICO and sold at a loss may still participate in the investigation.

Q: What if my FICO losses are small -- is it still worth contacting a lawyer? A: Yes. There is no minimum loss amount required to participate in the investigation.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. If you choose to participate in any resulting action, these matters are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

CONTACT:

Levi & Korsinsky, LLP

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (212) 363-7500

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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SOURCE Levi & Korsinsky, LLP

Key Takeaways Ciena is gaining from AI-driven connectivity demand and expanding data-center infrastructure investments.Ciena raised fiscal 2026 revenue guidance to $6.42 billion, implying 35% year-over-year growth.Supply constraints could limit fiscal 2027 revenues as backlog is expected to exceed $10 billion. Shares of Ciena Corporation (CIEN - Free Report) have jumped a whopping 177.9% in the past year, outperforming the Zacks Computer & Technology sector and the Zacks Communication - Components industry, which gained 28.1% and 165.3%, respectively. The S&P 500 composite is up 19.3% over the same time frame.

The company has also outpaced its peers, Corning Incorporated (GLW - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . GLW, ANET and CSCO have climbed 95.8%, 36.9% and 70.8%, respectively, in the past year.

Image Source: Zacks Investment Research

Ciena is gaining from AI-driven connectivity demand, optical leadership, expanding data-center connectivity and rising operating leverage.

Let us take a closer look at CIEN’s fundamentals, key growth drivers, competitive strengths and potential risks to determine whether the stock remains an attractive investment.

AI and Data-Center Connectivity DemandCiena is benefiting from increasing demand for network connectivity driven by AI and data-center infrastructure investments. In the last earnings call, management stated that AI is driving significant increases in bandwidth requirements and network traffic, making high-speed, low-latency optical connectivity increasingly critical across networks and data centers. This demand spans traditional WAN, AI WAN and data-center connectivity, including data-center interconnects and connections within data centers.

As AI workloads require higher data rates, bandwidth, capacity and density, Ciena is seeing rising demand for its optical and interconnect solutions. Its WaveLogic 5 Nano platform continues to see strong adoption, while 800ZR shipments more than doubled sequentially in the fiscal third quarter. The company also reported strong receptivity to its Nitro active copper cable redriver and received sample orders for Vesta, its open co-packaged optical solution. Direct cloud-provider revenues increased 80% year over year in the fiscal third quarter, while revenues in and around data centers quadrupled year to date.

Strong Optical Technology PortfolioCiena is benefiting from its optical technology leadership, supported by focused research and development, deep expertise and proven deployments at scale. The company highlighted strong adoption of its WaveLogic 6 Extreme platform, which remains the only 1.6-terabit high-performance modem on the market, with its ramp exceeding that of the previous WaveLogic 5e generation. Ciena’s RLS portfolio also remains a key growth driver, with roughly 70% market share in disaggregated optical line systems.

In addition, the company’s Hyper-Rail technology, developed with hyperscalers to support AI training across data centers, is expected to see initial standardization by the end of 2026 and material revenue growth through 2027. Ciena also secured a significant hyperscaler win for its WaveLogic 6e coherent technology, with customer commitments extending into 2029 and orders and backlog supporting growth into fiscal 2028.

For fourth-quarter fiscal 2026, Ciena expects revenues of $1.75 billion (+/- $50 million). The company raised fiscal 2026 revenue guidance to $6.42 billion (+/- $50 million), implying 35% year-over-year growth at the midpoint. For fiscal 2027, management’s early view indicates at least 30% revenue growth, an adjusted gross margin of 45-46%, and an adjusted operating margin of 25-27%.

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Improving Margins and Operating LeverageCiena is also benefiting from improving profitability. Fiscal third-quarter adjusted gross margin reached 46.4%, supported by cost execution, favorable product mix and pricing discipline, while adjusted operating margin increased to a record 22.5%. In the last earnings call, management stated that its gross-margin baseline is now in the mid-40% range and expects its cost structure and portfolio to support further expansion.

For the fourth quarter of fiscal 2027, adjusted gross margin is projected at 45% (+/- 50 bps). Adjusted operating margin is forecast at 20% (+/- 50 bps). Ciena expects fiscal 2027 adjusted operating margin of 25%-27%, with continued growth in its optical systems and plug businesses supporting operating leverage. The company also expects Hyper-Rail economics to be accretive as the technology ramps, while RLS gross margins have improved over the past two to three years and are approaching the corporate average.

Supply Constraints Remain a HurdleCIEN is grappling with supply constraints as demand continues to exceed available capacity. In the last earnings call, the company highlighted that its backlog is expected to exceed $10 billion at the end of fiscal 2026, with most of the backlog having customer request dates in 2027. Management noted that fiscal 2027 revenues could be higher if more supply were available and expects the supply-demand imbalance to persist into 2028. Ciena is addressing the constraint by securing long-term agreements for key components through 2029, adding incremental capacity and continuing upstream investments to strengthen its supply base. The company also expects its investments in capacity to weigh on cash from operations in the fiscal fourth quarter as the spending is deployed.

CIEN’s ValuationCIEN trades at a forward 12-month price-to-earnings (P/E) of 43.93X, above the industry’s 40.13X. CSCO, GLW and ANET trade at a forward 12-month P/E of 26.29X, 41.66X and 48.75X, respectively.

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CIEN’s Upward EstimatesThe Zacks Consensus Estimate for CIEN’s earnings for fiscal 2026 has been revised upward over the past 30 days.

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What Should You Do With CIEN Stock Now?Ciena’s strong AI-driven demand, expanding data-center connectivity, optical technology leadership and improving profitability support its growth outlook, although supply constraints remain a concern.

Existing investors may stay invested to benefit from the company’s growth prospects, while new investors can consider buying the stock given its strong fundamentals and favorable earnings outlook.

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

Key Takeaways Amkor expects 2026 CapEx of $2.5-$3B, targeting Arizona, HDFO, test and advanced packaging capacity.Q2 revenues rose 26% to $1.90B as utilization climbed into the 70s and gross margin expanded to 16.8%.New capacity adds depreciation and fixed costs, while limited backlog raises execution and utilization risks. Amkor Technology (AMKR - Free Report) is sharply increasing capital spending to capture growth in advanced packaging, AI and data-center applications, but the higher investment also raises execution and utilization risks. The company spent $688.4 million on capital expenditures in the first half of 2026, up from $226.1 million a year earlier, and expects full-year 2026 CapEx of $2.5-$3 billion. Most spending is targeted at facility expansion, including Arizona, while the remainder is directed toward HDFO, test and other advanced packaging capacity.

The investment is supported by improving demand. Second-quarter revenues rose 26% year over year to $1.90 billion, while gross margin expanded to 16.8% from 12%. Factory utilization improved from the 50s into the 70s, highlighting the operating leverage available as capacity fills. Computing revenues reached a record, increasing 20% sequentially, and are expected to accelerate to nearly 30% in the third quarter, driven by AI data center demand and the HDFO CPU ramp.

However, Amkor’s capital-intensive model carries risks. New capacity adds depreciation and fixed costs, while the company generally has limited backlog and sometimes invests without firm customer commitments. Customer-specific equipment may also be difficult to reuse if demand weakens. As of June 30, Amkor also had $2.5 billion of debt and $1.47 billion of purchase obligations, adding to its financial commitments.

Amkor’s strong revenue growth and improving utilization support its increased capital spending. The Zacks Consensus Estimate projects 2026 and 2027 revenues of $7.64 billion and $8.55 billion, respectively, suggesting continued growth. This outlook supports Amkor’s expansion, although its success will ultimately depend on sustained demand and high utilization of the new capacity.

Are AMKR's Rivals Catching Up in Advanced Packaging?Intel Corporation (INTC - Free Report) is stepping up advanced-packaging investment as AI demand expands, directly intensifying competition with AMKR. INTC raised 2026 CapEx above $20 billion and said packaging is included, while EMIB-T has a growing backlog and is targeted for high-volume customer ramps in 2027. With INTC also building wafer and packaging capacity, it gives AMKR a formidable capital-backed rival.

GlobalFoundries (GFS - Free Report) is expanding capacity around silicon photonics and advanced packaging for AI data centers, putting GFS into closer competition with AMKR as packaging demand rises. GFS expects 2026 CapEx at the high end of its 15%-20% range, with capacity investment a key driver. Its SCALE platform targets near-packaged and co-packaged, while GFS expands packaging capability and capacity.

AMKR’s Share Price Performance, Valuation & EstimatesAMKR’s shares have gained 35.2% year to date, outperforming the broader Zacks Computer and Technology sector’s 25.6% growth.

AMKR’s YTD Price Performance
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From a valuation standpoint, AMKR trades at a forward 12-month P/S of 1.59X, lower than the industry average of 5.26X. The company carries a Value Score of B.

AMKR’s Valuation
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The Zacks Consensus Estimate for 2026 earnings is pegged at $2.60 per share, unchanged over the past 30 days, implying 73.3% year-over-year growth.

Image Source: Zacks Investment Research

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

Key Takeaways Carpenter Technology's Specialty Alloys Operations margin reached a record 37.8% in FY26. Aerospace and Defense sales rose 15%, while Industrial and Consumer sales gained 4.7% in FY26.CRS targets 850-880M in FY27 operating income, up 21-25% from FY26. Carpenter Technology Corporation’s (CRS - Free Report) Specialty Alloys Operations segment delivered a record adjusted operating margin of 37.8% in the fourth quarter of 2026, up from year-ago’s 30.5%. This marked the segment’s eighteenth consecutive quarter of margin expansion. The record operating performance in the fourth quarter of 2026 was driven by continued productivity gains, pricing realization and improved product mix. This led to an operating margin of 27.7% in fiscal 2026.

The Specialty Alloys Operations segment comprises Carpenter Technology’s major premium alloy and stainless-steel manufacturing operations. The segment generated $2.83 billion in sales in fiscal 2026, representing 90.5% of Carpenter Technology’s sales in the year. The segment sold 200,872 thousand pounds in fiscal 2026 compared with 186,270 thousand pounds a year ago.

The segment’s sales are also gaining from Aerospace and Defense, and Industrial and Consumer end-use markets. Aerospace and Defense sales increased 15% year over year in fiscal 2026, while Industrial and Consumer markets sales rose 4.7%.

Backed by record profitability and favorable demand trends, CRS expects fiscal 2027 operating income of $850-$880 million, indicating growth of 21-25% from that reported in fiscal 2026. CRS set a fiscal 2029 operating income target of $1.2-$1.3 billion, suggesting a solid jump from the $702 million reported in fiscal 2026. With its solid streak of margin expansion and robust demand in key end markets, the Specialty Alloys Operations segment is likely to remain a solid growth driver for Carpenter Technology in the upcoming years.

Performances of Other Steel StocksCommercial Metals Company (CMC - Free Report) has been benefiting from steady North American construction activity and firm pricing discipline. Backed by its focus on transformation, Commercial Metals is expected to generate structurally higher margins and enhanced free cash flow.

Commercial Metals expects its new precast platforms to generate $165-$175 million in EBITDA in fiscal 2026, with incremental annualized EBITDA of $240-$250 million and $30-$40 million in annualized synergies by the end of year three.

Nucor Corporation (NUE - Free Report) is committed to expanding its production capabilities and growing its business through acquisitions. Nucor is seeing strong demand in the energy markets. While the automotive market remains impacted by high interest rates and tariffs, the accelerating adoption of electric vehicles bodes well for this market.

Demand in non-residential construction markets was healthy in 2025 and the momentum is expected to continue this year, driving Nucor’s earnings and cash flows.

CRS’s Price Performance, Valuations & EstimatesCarpenter Technology’s shares have jumped 57% over the past year compared with the industry’s growth of 49.9%. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 13.8% and 17.9%, respectively.

Image Source: Zacks Investment Research

Carpenter Technology is currently trading at a forward price/sales ratio of 5.64 compared with the industry's 2.42.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 sales is pegged at $3.40 billion, indicating an 8.8% year-over-year jump. The consensus mark for the year’s earnings is pegged at $13.28 per share, indicating a rise of 23.4%.

The Zacks Consensus Estimate for fiscal 2027 sales implies 8.4% year-over-year growth, and the same for earnings suggests a rally of 17.9%.

EPS estimates for fiscal 2026 and 2027 have moved north over the past 60 days.

Image Source: Zacks Investment Research

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

Key Takeaways ITT is benefiting from strength across Flow Technologies, CCT and Motion Technologies.Acquisitions of Aerospace Contacts and SPX FLOW are expanding ITT's capabilities and offerings.ITT is investing in innovation while rewarding shareholders through dividends and share buybacks. ITT Inc. (ITT - Free Report) is well-poised for growth in the near term, courtesy of strength across its segments and accretive acquisitions. The company's efforts to reward its shareholders handsomely add to its appeal.

ITT currently carries a Zacks Rank #2 (Buy). In the past year, the company has gained 16% against the industry’s 24.5% decline.

Image Source: Zacks Investment Research

Let’s delve into the factors that make this company a smart investment choice at the moment.

Segmental Strength: ITT is gaining from strength across its segments. The Flow Technologies segment is benefiting from strength in pump projects and the short-cycle business. Growth in demand for pumps and valves is aiding the segment, while the Svanehøj acquisition continues to support growth. The segment’s organic revenues increased 20.7% year over year in the second quarter of 2026, driven by growth in pump project revenues and short-cycle businesses.

An increase in demand for connector solutions and aerospace and defense is supporting the Connect and Control Technologies (CCT) segment. Also, the acquisition of kSARIA augurs well for the segment. The segment’s organic revenues increased 17.3% year over year in the second quarter, aided by defense and connector strength. Demand for friction products, shock absorbers and damping technologies in OEM, rail and defense markets is supporting the Motion Technologies (MT) segment. Its organic revenues increased 1.6% year over year in the second quarter.

Acquisitions: The company engages in strategic acquisitions that increase the breadth and depth of its product offerings and help it grow its customer base. In July 2026, ITT completed the acquisition of Aerospace Contacts LLC (Aerospace Contacts). The acquisition strengthened the company’s supply chain, enhanced its aerospace and defense product offerings, and boosted its manufacturing and engineering capabilities. ITT integrated Aerospace Contacts into its CCT segment. ITT acquired SPX FLOW in March 2026. The acquisition enhanced the company’s capabilities in mixing, fluid handling and thermal solutions. SPX FLOW was added to the Flow Technologies segment.

Focus on Innovation: ITT is strengthening its capabilities through continued investments in innovation across its friction technologies, connectors and pump businesses. The company’s new brake pad testing center in Huang Shan, China, is already generating returns, while newly introduced connectors are addressing opportunities in the energy storage systems market. ITT is also advancing strategic programs, including VIDAR, FLRAA, high-performance friction and geo-pad offerings, to support long-term growth.

Rewards to Shareholders: ITT is committed to rewarding its shareholders through share buybacks and dividend payments. During the first six months of 2026, ITT paid out dividends of $69.5 million, up 23.7% year over year, and repurchased shares worth $100.7 million. ITT’s quarterly dividend rate was hiked 10% in February 2026 to 38.6 cents per share. In October 2023, ITT’s board approved a $1 billion share repurchase program for an indefinite time. Exiting the second quarter of 2026, the company had a remaining balance of $355 million under its stock repurchase program.

Other Stocks to ConsiderSome other top-ranked companies are discussed below.

GPGI, Inc. (GPGI - Free Report) currently carries a Zacks Rank of 2. GPGI delivered a trailing four-quarter average earnings surprise of 23.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, the Zacks Consensus Estimate for GPGI’s 2026 earnings has remained steady.

Griffon Corporation (GFF - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 6.6%.

The Zacks Consensus Estimate for GFF’s 2026 earnings has increased 1.5% in the past 60 days.

3M Company (MMM - Free Report) presently carries a Zacks Rank of 2. 3M delivered a trailing two-quarter average earnings surprise of 4.1%.

In the past 60 days, the consensus estimate for MMM’s 2026 earnings has increased 0.6%.

, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its specialist underwriting subsidiary Pen Underwriting has acquired Wexford, Ireland-based Ornella Underwriting Limited (Ornella). Terms of the transaction were not disclosed.

Ornella is a managing general agent (MGA) providing a diverse range of commercial and personal insurance coverages across Ireland through its network of independent broker partners, with particular expertise in private car, van, home and motor fleet. The business will become part of Pen Underwriting, and Paul Whelan will continue to lead the team from its current location under the direction of Michael Doyle, head of Pen Underwriting's operations in Ireland.

"Ornella is a highly regarded firm that will strengthen and expand our underwriting capabilities in Ireland, providing complementary expertise and further growth opportunities," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am pleased to welcome Paul and his associates to our growing, global team."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

SOURCE Arthur J. Gallagher & Co.

EUR/USD Talking Points:
The US Dollar is overbought and EUR/USD is oversold, and while those markers don’t demand definite reversal, it does raise the stakes for continuation.
So far, buyers have only been able to pose a minor bounce and as looked at in the webinar yesterday, there’s not yet evidence that there’s enough motivation to produce a reversal move.
I looked into this coming into the week, highlighting EUR/USD in the top five charts for the week ahead, and that theme remains of interest as the pair has pushed down to a fresh yearly low.

In yesterday’s webinar, there was a bounce in-play but as I said then, there wasn’t yet enough evidence to substantiate whether that bounce was just an oversold pullback or the start of something larger. At this stage, it seems it was more of the former than the latter, but there’s still potential given that price hasn’t yet taken out the Monday low.

For that to work and for a bounce to set up in the back-half of the week, bulls will need to show up and hold the low above 1.1161, which, so far, they have by 3.4 pips.

EUR/USD 30-Minute Chart
Chart prepared by James Stanley; data derived from Tradingview

EUR/USD Most Oversold in a Decade
As I often say in webinars, RSI isn’t a great timing indicator as a market can often get more oversold or overbought. And any oscillator, RSI included, is a lagging indicator on an already lagging variable (price), so it’s a bit like looking at the world through rose-colored glasses.

This isn’t to say that the indicator is completely worthless, however, as it can provide some good information. And perhaps more important than using it to get into trades is using it to stay out of markets in an extreme state of stress.

At a close below 20 last week, EUR/USD was more oversold than it had been since 2015. That prior instance was an extreme period of stress, but the sub-20 RSI read showed around a significant low, after which the pair was rangebound for much of the next two years.

EUR/USD Daily Chart
Chart prepared by James Stanley; data derived from Tradingview

EUR/USD with Perspective
The daily chart highlights the theme well and RSI remains in oversold territory. But, given the prior element of divergence with the Monday low in price producing a higher-low via RSI, it illustrates just how stretched the move has become.

This is a deduction, however, and not quite a thesis that builds into a bullish backdrop: It simply sets the stage for which buyers can make a move and, at this point it’s still quite early to forecast a trend change.

There is, however, the possibility for reversal strategies if (and it’s a big ‘if’) that low can hold on the above shorter-term chart.

EUR/USD Daily Chart
Chart prepared by James Stanley; data derived from Tradingview

--- written by James Stanley, Senior Market Analyst, Global Macro

Key Takeaways Globus Medical's musculoskeletal revenues rose 7.5% in Q2 2026, with base business sales up 10.9%. GMED's U.S. Spine grew 7.3%, while Trauma climbed 31% year over year as PRECICE supply normalized. Globus Medical ended Q2 with $507.7M in cash and no debt, supporting R&D and expansion investments. Globus Medical, Inc. (GMED - Free Report) is gaining market share in the musculoskeletal solutions space, banking on the strong performance of its implantable devices, biologics, accessories and unique surgical instruments. Also, product innovation and solid financial health add to the stock’s appeal. Unfavorable foreign exchange remains a concern for GMED’s operations. 

Over the past year, this Zacks Rank #2 (Buy) stock has risen 26.5% compared with the industry's 5.9% growth. The S&P 500 composite has risen 16.2% in the same time frame. 

The renowned medical device company has a market capitalization of $12.55 billion. Globus Medical has an earnings yield of 6.5% against the industry’s negative 1.9% yield. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 27.9%. 

Let’s delve deeper.

Upsides for GMED StockMusculoskeletal Share Gains Continue: Globus Medical continues to gain share in Musculoskeletal Solutions through broad-based growth across Spine and Trauma. In the second quarter of 2026, Musculoskeletal revenues rose 7.5% year over year despite a 14.3% decline in Nevro, while base business musculoskeletal sales increased 10.9%. 

U.S. Spine grew 7.3%, marking a fifth straight quarter of above-market growth, and competitive hires doubled sequentially. International Spine advanced 13.8% as reported and 12.2% at constant currency, with double-digit gains across the EMEA, Latin America and APAC. Trauma rose 31% year over year and 18% sequentially as PRECICE supply normalized and the core portfolio gained share. Commercial reach and portfolio breadth should support share gains as tougher comparisons moderate reported U.S. Spine growth. 

Steady Pace of Product Development: Globus Medical continues to use internal R&D and product cadence to deepen account relationships across spine, trauma and enabling technologies. In the second quarter of 2026, management said more than 60 development projects were underway, following more than 25 product launches during the prior 36 months. 

During the quarter, the company launched AUTOBAHN Hip Fastener, TENSOR Suture Button System and RELINE ONE, while patient-specific SCRIPT spacers and rods are expected later in the third quarter. These products expand the portfolio and increasingly connect implants with planning software and the Excelsius ecosystem. 

Financial Flexibility: Globus Medical ended the second quarter of 2026 with $507.7 million of cash and cash equivalents and $87.4 million of short-term marketable securities. The company remains debt-free, providing financial flexibility to fund R&D, sales-force investments and manufacturing expansion from internal resources. Operating cash flow reached $412.1 million in the first half of 2026. The company repurchased $136.1 million of stock during the second quarter, with $253.9 million remaining under its authorization. 

Image Source: Zacks Investment Research

What Ails GMED?Currency Exposure Persists: Globus Medical remains exposed to foreign-exchange volatility through its international operations. The company recorded an $860,000 foreign currency transaction loss in the second quarter of 2026 and a $3.0 million loss in the first half. As international operations expand, adverse currency movements could create greater variability in reported earnings and reduce operating leverage.

Estimate TrendThe Zacks Consensus Estimate for GMED’s 2026 earnings per share (EPS) has remained unchanged at $4.74 in the past 30 days.

The consensus estimate for the company’s 2026 revenues is pegged at $3.20 billion, indicating an 8.7% rise from the year-ago reported number.

Other Key PicksSome other top-ranked stocks in the broader medical space are Veracyte (VCYT - Free Report) , OPKO Health (OPK - Free Report) and Teleflex (TFX - Free Report) .

Veracyte has an earnings yield of 4.7% against the industry’s negative 1.4% yield. Shares of the company have risen 28.2% against the industry’s 3.8% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

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

OPKO Health, flaunting a Zacks Rank #1 at present, has an estimated 2026 earnings growth rate of 23.3% compared with the industry’s 16.6% growth. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 95.1%. OPK shares have rallied 27.3% against the industry’s 3.8% decline over the past year.

Teleflex, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 14.5% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have gained 4% against the industry’s 3.7% decline over the past year.

Key Takeaways Sterling shares gained 12.2% in a month as E-Infrastructure and data center demand strengthened.E-Infrastructure revenues surged 192%, while mission-critical work topped 92% of signed backlog.Sterling's signed backlog hit $4.33B, supporting strong revenue visibility despite project-timing risks. Sterling Infrastructure, Inc. (STRL - Free Report) has regained momentum, with shares rising 12.2% over the past month. The gain compares favorably with a 1.4% decline for the Zacks Engineering - R and D Services industry and a 3.2% dip for the Zacks Construction sector. The stock also outpaced the S&P 500’s 1.2% increase during the same period.

STRL Price Performance (1-Month)

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Sterling is currently trading above both its 50-day and 200-day moving averages, signaling improved investor sentiment.

STRL Stock Trades Above 50-Day & 200-Day SMAs

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The rebound comes as Sterling’s transformation toward higher-margin E-Infrastructure continues to gain traction. Data centers, semiconductor facilities and other mission-critical projects are driving a growing share of revenues and backlog, while recent acquisitions have expanded its electrical capabilities. The key question is whether this demand can support the stock after its recent advance.

Data Center Demand Remains Sterling’s Main Growth EngineSterling’s E-Infrastructure business remains at the center of its growth story. Second-quarter 2026 E-Infrastructure revenues surged 192% year over year, with mission-critical activity, including data centers and semiconductor campuses, serving as the primary driver. Adjusted operating income for the segment climbed 148%, while adjusted operating margins remained strong at about 24%.

Importantly, the outlook extends beyond current projects. E-Infrastructure signed backlog, unsigned electrical awards and future-phase site-development opportunities exceeded $6 billion at the end of the quarter. Mission-critical work, including data centers, large manufacturing projects and semiconductor facilities, represented more than 92% of signed E-Infrastructure backlog.

Sterling is also seeing data center projects become larger and longer in duration, while existing projects are expanding beyond their original scope. Management indicated that some of these incremental opportunities have yet to enter backlog, suggesting that reported backlog may not fully capture the potential pipeline. CEC has further strengthened Sterling’s ability to combine electrical and site-development work, giving the company a broader offering for mission-critical customers.

This combination should help sustain strong E-Infrastructure growth if hyperscale computing, artificial intelligence infrastructure and related power requirements continue to drive data center construction.

Backlog and Execution Provide Strong Revenue VisibilitySterling’s overall backlog provides another reason for optimism. Signed backlog reached $4.33 billion at June 30, 2026, up 116% year over year, while combined backlog increased 150% to $5.62 billion. Excluding acquisition effects, signed backlog still increased 50%. High-probability future-phase work exceeded $1.4 billion, bringing Sterling’s total visibility across signed backlog, unsigned awards and future phases to more than $7 billion.

The company is converting that demand into strong financial performance. Second-quarter revenues rose 90% to $1.17 billion, while adjusted earnings per share (EPS) jumped 116% to $5.80. Adjusted EBITDA increased 104%, with the adjusted EBITDA margin reaching 22%.

Sterling has also been selective about the projects it pursues, favoring opportunities with stronger customer relationships, better margins and longer-term growth potential. That discipline has supported margin expansion even as the company rapidly scales its operations.

Investments and Acquisitions Can Expand Sterling’s CapacitySterling is increasing investment to prepare for continued growth. First-half operating cash flow totaled $328 million, while management raised 2026 capital expenditure guidance to $130-$140 million. Spending is being directed toward expanding and upsizing the equipment fleet, raising productivity and increasing operating capacity. At June-end, Sterling had $464 million in cash against $284 million of debt, leaving it with a net cash position and financial flexibility for organic investments and acquisitions.

Stone Ridge adds capacity and expands Sterling’s presence in the Pacific Northwest, while CEC has significantly broadened its electrical capabilities. The company is also investing in recruiting, training and electrical prefabrication, which should help address the workforce needs created by larger and more complex projects.

Bullish Analysts’ Expectation for STRL StockEarnings expectations support this outlook. The Zacks Consensus Estimate for 2026 EPS has risen to $20.02 from $19.54 over the past 60 days, implying 84% growth from 2025. Revenues are projected to increase 65.1%. For 2027, the consensus estimate projects EPS and revenues to rise another 28.8% and 19.6%, respectively.

Image Source: Zacks Investment Research

Housing Weakness and Project Timing Remain Key RisksSterling’s growth profile is strong, but not every business is moving in the same direction. Transportation Solutions revenues declined 20% in the second quarter as Sterling deliberately shifted resources toward higher-margin E-Infrastructure projects. Although Transportation margins improved sharply, management expects full-year segment revenues to decline 7-10% as this reallocation continues.

Building Solutions is another weak spot. Second-quarter revenues declined 1% amid relatively flat homebuilder activity, while adjusted operating income fell 11%. Housing affordability pressures are expected to keep residential conditions challenging through 2026.

Backlog growth may also be uneven from quarter to quarter. Management warned that strong revenue burn and the timing of awards could lead to a sequential backlog decline in the third quarter, even though underlying bid activity remains strong. Rapid expansion itself creates execution risks, including the need to recruit skilled employees, deploy equipment and integrate acquired operations without sacrificing margins.

Valuation Reflects Better Prospects, but Is No Longer CheapSterling trades at 23.06X forward 12-month earnings, slightly below the industry’s 23.56X but above its five-year median of 18.40X. Therefore, the stock does not look stretched relative to the industry, but investors are already paying a higher multiple than Sterling has typically commanded.

STRL Valuation vs Industry - P/E (F12M)

Image Source: Zacks Investment Research

That premium to its historical median places greater importance on continued data center awards, successful execution and sustained earnings revisions. Any slowdown in mission-critical spending or weaker-than-expected project conversion could pressure the multiple.

Sterling Stock Faces Quanta, MasTec and GraniteQuanta Services (PWR - Free Report) , MasTec (MTZ - Free Report) and Granite Construction (GVA - Free Report) provide useful benchmarks for Sterling.

Quanta shares have gained 12.7% in the past month, slightly ahead of Sterling’s 12.2% rise, while Quanta trades at a much richer 36.42X forward 12-month earnings. Quanta remains a major competitor for power, electrical and mission-critical infrastructure work, and Quanta’s broader scale gives it significant exposure to data center-related investment.

MasTec shares have lost 7.3% over the same period and trade at 18.28X. MasTec competes across electrical, communications and mission-critical infrastructure, making it relevant as Sterling expands beyond site development. MasTec’s lower valuation, however, reflects a different mix of businesses and growth drivers.

Granite shares are up 1.5% and trade at 14.19X forward 12-month earnings. Granite competes more directly in heavy civil, transportation and site work. Granite’s cheaper valuation reflects less direct exposure to Sterling’s fast-growing data center opportunity.

STRL Price Performance vs Peers (1-Month)

Image Source: Zacks Investment Research

Bullish Analyst Expectations for STRL StockAnalysts also remain optimistic about Sterling’s prospects. The company currently carries an average brokerage recommendation (ABR) of 1.20 on a scale of 1 to 5, where 1 represents Strong Buy and 5 represents Strong Sell. The ABR is based on recommendations from 10 brokerage firms. Of these, nine carry a Strong Buy rating, accounting for 90% of the total recommendations. This strong analyst sentiment complements Sterling’s improving earnings outlook, expanding mission-critical backlog and continued strength in data center demand, providing further support for the stock’s recent rebound.

Should Investors Buy STRL After the Rebound?Sterling’s recent rally is supported by more than momentum. Mission-critical demand remains strong, backlog provides substantial visibility, margins are holding up well and estimates continue to move higher. The company’s growing ability to combine site development with electrical services should also strengthen its position on increasingly complex data center projects.

Risks from residential weakness, project-award timing and the demands of rapid capacity expansion deserve attention, while the stock’s valuation is above its historical median. Still, Sterling’s earnings outlook, expanding mission-critical pipeline and positive estimate revisions suggest that the growth story remains intact. The company’s favorable brokerage sentiment, with nine of 10 recommendations at Strong Buy, provides additional support.

With a Zacks Rank #2 (Buy), Sterling appears well positioned to extend its gains if data center and broader E-Infrastructure demand continue to translate into awards, revenue growth and earnings expansion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.