Track market-moving stories before they get noisy

Explore the exciting world of Taiwan Semiconductor Manufacturing (TSM 6.50%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of April 29, 2026. The video was published on June 19, 2026.

Anand Chokkavelu has positions in Taiwan Semiconductor Manufacturing. Lou Whiteman has positions in Taiwan Semiconductor Manufacturing. Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Intel (INTC 6.07%) is having a moment. The stock spiked to an all-time high on Thursday after President Donald Trump said on social media that Apple had agreed to work with the company to design and build chips in the U.S. It was the latest in a run of high-profile interest that includes an announced collaboration with Nvidia.

After years of being written off, Intel's foundry comeback suddenly looks convincing -- and the stock is up more than 500% over the past year.

This raises a fair question about the longtime foundry leader, Taiwan Semiconductor Manufacturing (TSM 6.50%): Is its grip on advanced chip manufacturing finally loosening?

Imag source: Getty Images.

Intel's foundry moment After falling behind on manufacturing technology for the better part of a decade, Intel has bet its future on becoming a contract chipmaker that builds silicon for outside customers, not just for itself.

Its 18A process, which entered high-volume production last October, is the centerpiece. Intel's first 18A laptop chip, Panther Lake, started selling early this year, and a server chip followed in the spring. The list of would-be customers has grown, too. Beyond the reported Apple arrangement, which neither company has confirmed, Intel has pointed to a collaboration with Nvidia and a multibillion-dollar deal to make custom artificial intelligence (AI) chips for Amazon.

The momentum is hard to argue with.

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But don't get too excited just yet. Intel's foundry segment generated $5.4 billion in revenue in the first quarter, up 16% year over year -- yet just $174 million of that came from outside customers. The rest was Intel building chips for Intel. The segment also posted a $2.4 billion operating loss for the period.

With that said, CEO Lip-Bu Tan has said he expects early design commitments from external customers in the second half of 2026.

Why TSMC still runs the industry Taiwan Semiconductor builds chips for much of the industry, including Nvidia and Apple, at a scale no rival can match. It controls about 70% of the pure-play foundry market and more than 90% of the world's leading-edge production -- the cutting-edge nodes that the most advanced AI and smartphone chips require. That's exactly the part of the business Intel is trying to break into, and the hardest part to crack.

TSMC's first-quarter revenue rose about 41% year over year to $35.9 billion, with a gross margin of 66.2% and an operating margin of about 58%.

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Demand, meanwhile, keeps outrunning what TSMC can build. Management raised its full-year outlook and now expects 2026 revenue to grow more than 30% in U.S. dollar terms, and it plans to spend toward the high end of a $52 billion to $56 billion budget to add capacity.

The demand is "very robust, especially from the HPC and AI applications," said TSMC Chairman and CEO C.C. Wei during the company's first-quarter earnings call, noting that supply remained very tight even as the company rushed to pull in equipment. But it's going to take time for supply to ramp up to meet this demand. Building a new plant, he added, takes two to three years.

The better bet So which stock deserves the benefit of the doubt?

There's a fair case to be made that both can win. The AI build-out is generating so much demand that TSMC can't keep up, and a sold-out leader leaves room for a credible second source. Additionally, Intel's manufacturing is finally improving, and it has Washington's backing. And a marquee customer like Apple -- if the reported deal holds -- would validate years of heavy spending.

But TSMC is probably the one I'd want to own if I had to choose between the two. Its lead at the leading edge is measured in years, not quarters, and customers keep signing up because no one else can match its scale and yields at the cutting edge. Indeed, even Intel still relies on TSMC to manufacture many of its own newest products.

Trading at about 40 times earnings, TSMC's stock isn't cheap, and it notably trades near its 52-week high. Yet that valuation multiple reflects a business growing quickly and posting some of the widest margins in the industry.

Intel, by contrast, is still losing money in the foundry business central to its comeback. Buyers today are paying an all-time high price for a turnaround that hasn't fully arrived.

Cerebras Systems CBRS remained in focus Monday after Wedbush reiterated its Outperform rating and $270 price target ahead of the AI chipmaker's first quarterly earnings release as a public company.

Wedbush said demand conditions for Cerebras appear supportive, citing the company's commercial relationships with OpenAI and Amazon. The firm noted that future results may depend more on operational execution and production scaling than customer demand.

Cerebras, which debuted on the Nasdaq in May, is developing large-scale AI processors and computing infrastructure. Wedbush said manufacturing capacity from Taiwan Semiconductor Manufacturing (TSM) could provide an opportunity for higher-than-expected output over the next two years.

The brokerage also pointed to potential benefits from the company's next-generation WSE-4 processor, which market observers expect could enter production in late 2026 or early 2027. Any updates related to that roadmap may be viewed favorably by investors.

Wedbush added that growing demand for AI inference computing, combined with industry supply constraints, could support Cerebras' longer-term expansion efforts as it seeks a larger position in the AI accelerator market.

A real, potentially lasting U.S.-Iran deal appears to be on the horizon for the first time in many weeks of on-, then off-again negotiations. Should this be the deal that does it, or another one in the near term, oil prices will respond.  In fact, they’ve already dropped in response to the news that the Strait of Hormuz will reopen. These recent developments may offer opportunities for savvy investors in emerging markets.

Key Takeaways: Brent crude hovered around $80 this week as a real U.S.-Iran deal appeared imminent. This may benefit emerging markets economies, particularly in Asian markets that rely heavily on fuel imports. Emerging markets ETFs like GSEE could prove shrewd second-half pickups. Emerging markets economies, the Asia-Pacific region in particular, rely heavily on imported fuel. Nations like Thailand, for example, were some of the first to be impacted by the closure of the Strait of Hormuz. While there is significant infrastructure damage to energy production, however, a deal would help oil prices dip. This shift stands to benefit emerging markets, particularly in growing economies like Vietnam.

Investors can get targeted exposure to these emerging markets with ETFs like GSEE. The Goldman Sachs MarketBeta Emerging Markets Equity ETF (GSEE) represents an interesting example, as it builds on strong performance entering 2026. Before the U.S. attacks on Venezuela and Iran, investors were already looking to diversify abroad. Such demand has helped the ETF return 26.2% YTD.  According to ETF Database data, GSEE has seen a spike in the last month, returning 6.4%. 

GSEE looks to stand out compared to other emerging markets ETFs with a straightforward market cap-weighted index. Charging 36 basis points, the fund leans heavily on China and South Korea to meet its goals. This provides targeted exposure to key global names like the Taiwan Semiconductor Manufacturing Company (TSM), its largest holding by weight.

See more: How Active Tech ETF GTEK Has Outperformed Key Stock Metrics

With these factors combined, the strategy offers a clean, streamlined way for investors to add emerging markets exposure to their portfolios. Slotting easily into a “core plus” position, GSEE is definitely one to watch as oil price pressures drop.

For more news, information, and strategy, visit the Future ETFs Content Hub.

U.S. stock futures were lower this morning, with the Nasdaq 100 futures falling more than 2% on Tuesday.

TSM’s decline tracked weakness across the semiconductor sector as investors reduced exposure to growth stocks ahead of the market open.

Taiwan Semiconductor shares dipped 4.3% to $447.44 in pre-market trading.

Here are some other stocks moving lower in pre-market trading.

Photo via Shutterstock

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Abbott shares are down 29.4% YTD, lagging its industry, sector and selected peers.Abbott cited weaker respiratory testing demand, China uncertainty and higher costs as challenges.Abbott expects 2026 sales growth of 6.5%-7.5% and adjusted EPS of $5.38-$5.58. Abbott (ABT - Free Report) has struggled in the market this year despite a series of regulatory, clinical and business developments. Shares have declined 29.4% year to date, underperforming the industry’s 24.1% drop and the Medical sector’s 5.8% plunge, while the S&P 500 composite has gained 9.7%. ABT closed the last trading session at $88.41, roughly 36.4% below its 52-week high of $139.06 and only 8% above its 52-week low of $81.97.

The stock’s performance has also lagged some notable peers. Shares of Becton, Dickinson and Company (BDX - Free Report) , or BD, have declined 25.8% this year, while Labcorp (LH - Free Report) has risen 2%. Since separating its Biosciences and Diagnostic Solutions business and its combination with Waters, BD has sharpened its focus as a pure-play MedTech company, which appears to be gaining traction. Labcorp, too, continues to benefit from its ongoing momentum in key specialty testing areas and strengthens its position as a top partner for health systems and regional local laboratories.

Image Source: Zacks Investment Research

From a technical standpoint, ABT is currently trading below its 50-day and 200-day moving averages, suggesting that shares could remain under pressure.

Image Source: Zacks Investment Research

Illinois-based Abbott is a major player in the healthcare space with several growth drivers across its diversified portfolio. The Established Pharmaceuticals Division is a steady contributor to the revenue base, supported by branded generics positions in faster-growing geographies. Within the Nutrition segment, the company is working through a transition that is intended to restore a healthier balance between price and volume over time. Medical Devices continues to benefit from scale advantages and new product cycles across Cardiovascular and Diabetes units. Still, several challenges continue to weigh on the near-term outlook.

What’s Holding Back Abbott?Respiratory Testing Demand Remains Volatile: Abbott’s Diagnostics results still face mixed swings as respiratory virus testing continues to normalize from prior years. In the first quarter of 2026, Rapid and Molecular Diagnostics declined 9.6% on a comparable basis, reflecting lower demand for respiratory virus tests versus the prior-year season. While Core Laboratory grew 3.3% on a comparable basis and Cancer Diagnostics added growth following the Exact Sciences acquisition, the segment’s near-term reported profile can remain uneven as respiratory seasons fluctuate and pandemic-related comparisons fade.

Macro-Driven Cost Pressures: Abbott continues to operate against an uncertain macroeconomic backdrop that can influence input costs and demand patterns across categories. In the first quarter of 2026, selling, general and administrative expenses increased 22.2% year over year, partly reflecting acquisition-related items, and the company continues to incur incremental costs tied to European MDR and IVDR compliance. If pricing, mix or volumes weaken in areas such as Nutrition, Abbott may have less flexibility to offset these costs, which could weigh on profitability even with ongoing cost actions.

China Policy Uncertainty Lingers:China remains a source of uncertainty, particularly within Diagnostics, where government procurement policies have affected pricing and volumes. Management indicated that Core Laboratory trends in China were flat in the first quarter of 2026 and expects China to remain down for the full year, even as the company laps parts of prior pricing actions. Future procurement rounds and policy shifts can still alter demand visibility and create additional volatility versus Abbott’s more stable geographies.

Abbott’s FY 2026 GuidanceWith the Exact Sciences acquisition now complete, Abbott expects full-year 2026 sales growth outlook 6.5% to 7.5% on both a reported and comparable basis. The company also updated its adjusted earnings per share (EPS) guidance to $5.38-$5.58. The new midpoint of $5.48 reflects roughly $0.20 of dilution tied to the acquisition.

At present, the Zacks Consensus Estimate expects Abbott’s earnings to rise 6.4% in 2026 and another 10.5% in 2027. However, estimates have seen downward revisions over the past 90 days.

Image Source: Zacks Investment Research

The consensus mark for Abbott’s revenues calls for 13.9% and 8.9% growth in 2026 and 2027, respectively.

ABT’s Valuation SnapshotWith a Value Score of C, Abbott is currently trading at a forward, five-year, Price/Sales of 2.93X, representing a premium to the industry average of 2.05X.

Image Source: Zacks Investment Research

ABT also has a higher sales multiple compared to Labcorp’s 1.39X five-year P/S, as well as Becton, Dickinson’s P/S of 2.02X.

ConclusionAbbott’s sharp year-to-date decline reflects the impact of a weaker-than-expected respiratory season on its quarterly results, dilution risk from the Exact Sciences acquisition and ongoing macroeconomic pressures, among others. In China, management continues to maintain a cautious outlook despite flat Core Laboratory trends in the first quarter. The company’s technical indicators also point to continued weakness. Analysts have revised Abbott’s fiscal-year 2026 and 2027 estimates lower in recent months. Given its elevated valuation relative to industry and peers, existing ABT holders may want to exit their positions until visibility into near-term performance improves.

Abbott currently has a Zacks Rank #4 (Sell).

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

Abbott (ABT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this maker of infant formula, medical devices and drugs have returned +0.5%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Medical - Products industry, which Abbott falls in, has lost 3.7%. The key question now is: What could be the stock's future direction?

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

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

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

For the current quarter, Abbott is expected to post earnings of $1.28 per share, indicating a change of +1.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $5.48 for the current fiscal year indicates a year-over-year change of +6.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $6.05 indicates a change of +10.5% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed -0.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Abbott.

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

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Abbott, the consensus sales estimate of $12.53 billion for the current quarter points to a year-over-year change of +12.4%. The $50.49 billion and $55.01 billion estimates for the current and next fiscal years indicate changes of +13.9% and +9%, respectively.

Last Reported Results and Surprise HistoryAbbott reported revenues of $11.16 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.15 for the same period compares with $1.09 a year ago.

Compared to the Zacks Consensus Estimate of $11.02 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +0.88%.

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

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

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

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Abbott is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

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

In the latest close session, Eli Lilly (LLY - Free Report) was down 1.19% at $1,098.78. The stock fell short of the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.

The stock of drugmaker has risen by 9.14% in the past month, leading the Medical sector's gain of 3.16% and the S&P 500's gain of 0.29%.

The investment community will be paying close attention to the earnings performance of Eli Lilly in its upcoming release. The company is forecasted to report an EPS of $9.01, showcasing a 42.79% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $20.44 billion, up 31.39% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.67 per share and revenue of $85.6 billion. These totals would mark changes of +47.34% and +31.33%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Eli Lilly. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Right now, Eli Lilly possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Eli Lilly currently has a Forward P/E ratio of 31.17. This denotes a premium relative to the industry average Forward P/E of 15.47.

Also, we should mention that LLY has a PEG ratio of 1.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry had an average PEG ratio of 2.6 as trading concluded yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 40% of all 250+ industries.

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

You can find more information on all of these metrics, and much more, on Zacks.com.

Eli Lilly (NYSE:LLY | LLY Price Prediction) just reported a quarter that should have sent bulls into a frenzy. Revenue grew 55.5% year over year to $19.80 billion, Mounjaro alone delivered $8.66 billion, and management raised full-year guidance to $82 to $85 billion.

Yet shares are up just 2.57% year to date at $1,098.57. That disconnect is the entire setup for my question: can LLY trade at $1,200 by year-end 2026? I think it can, and the math is closer than most realize.

What’s Holding Eli Lilly Back Right Now The near-term price action has been ugly. LLY is down 5.37% over the past week after touching $1,160.95 on June 11. The one-month picture is better at +7.55%, but the year-to-date number tells the story of a stock stuck in neutral despite booming fundamentals.

The market worries about pricing. Realized prices fell 13% in Q1 as Mounjaro’s addition to China’s NRDL formulary compressed international margins. Lilly also absorbed $584 million in acquired IPR&D charges from its M&A spree.

Add in 11 recent insider transactions skewed toward selling, and you understand the hesitation. With a beta of 0.517, this should be a steady compounder. Right now it is waiting for a catalyst.

Wall Street Sees Roughly 11% Upside. Our Model Sees More The consensus target sits at $1,215.79, supported by 6 Strong Buy, 18 Buy, 5 Hold, 1 Sell and 1 Strong Sell ratings. That works out to 77% bullish. Our internal model is more aggressive. The base case lands at $1,279.62, implying 16.48% upside, with a bull scenario of $1,334.55 and a bear case of $1,062.97. Confidence on the base case is 90%.

Analysts underweight two things: the speed of the Foundayo (oral GLP-1) ramp and retatrutide’s optionality. Barclays already telegraphed where this could go, maintaining a Buy rating with a $1,400 price target. With earnings growth contributing positively to our 247Factor and bullish consensus at 77%, the $1,200 line looks like a floor.

The Path to $1,200 Per Share Reaching $1,200 from today’s price of $1,098.57 requires a gain of 9.2%. With forward EPS of $35.47, a price of $1,200 implies a forward P/E of 34x. Our base case of $1,279.62 already implies 37x, meaning $1,200 sits below our base case multiple and demands no incremental rerating. The stock simply needs to grow into the earnings.

CEO David Ricks framed it on the Q1 call: “2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion. A key milestone was the U.S. FDA approval of Foundayo.”

Early launch metrics are striking: 8,000+ prescribers and 20,000+ patients in weeks, with 80% of scripts new-to-class. Retatrutide’s Phase 3 readout showing weight loss of 25 to 37 pounds and the retatrutide late-stage trial results comparable to or exceeding Zepbound fuel the model. The primary risk remains continued price erosion outpacing volume gains.

Where Eli Lilly Trades Today vs Its Earnings Power At $1,098.57, LLY trades at roughly 31x forward EPS of $35.47. For a business compounding revenue at 28% at the 2026 guidance midpoint with a forward PE of 31x, that looks reasonable. Shares sit 3% below the 52-week high of $1,182.73 and 77.4% above the $619.40 low. The 10-year return of 1,661.56% shows what happens when this company gets a platform right. Today it has two.

Is $1,200 Realistic? Here’s My Take The $1,200 target requires a 9.2% gain from here, and my model’s base case already overshoots it. I view $1,200 by year-end 2026 as realistic.

Three things need to keep going right: Foundayo’s prescriber base must expand, retatrutide’s June obesity readout must confirm the diabetes data, and Q2 must validate the raised guidance. What derails it is sharper-than-expected pricing reset on Mounjaro and Zepbound in the back half. We’ve outlined the blueprint for how Eli Lilly could reach $1,200 in 2026.

Investing in penny stocks requires significant conviction. Many of the companies in this group are purely “story stocks.” That means they’re not profitable; many don’t even have any revenue. Investors don't evaluate these companies using metrics such as price-to-earnings ratios or free cash flow. Instead, they have conviction in the story behind the stock.

At its worst, it can create conditions similar to those in the meme stock frenzy of 2020 and 2021. Many stocks debuted with nothing but a story and got sent to unsustainable prices, only to crash back down when reality set in. Many of those companies are back to trading as penny stocks, and investors are wisely evaluating them with more scrutiny.

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But not all penny stocks are bad investments. Some are just early in their growth cycle. While they may not be profitable, they are generating revenue, and they have catalysts that are likely to push them on a path to profitability. That’s the case with three stocks that are trading below $5 as of this writing, and analysts believe each could be headed much higher.

Ur-Energy Could Benefit From the Global Nuclear RevivalUr-Energy NYSEAMERICAN: URG is a small-cap company that engages in the exploration, development, and production of uranium. The company’s core expertise centers on in situ recovery (ISR) mining techniques. This involves extracting uranium from sandstone formations using a low-environmental-impact process.

Ur Energy Today

$1.41 -0.02 (-1.40%)

As of 06/23/2026 05:16 PM Eastern

52-Week Range$1.00▼

$2.35Price Target$2.57

The company’s flagship ISR operation is its Lost Creek project in Wyoming. However, the company’s Shirley Basin project, which has been idle since 1992, is where analysts forecast the strongest growth. That’s expected to impact Ur-Energy's balance sheet more materially in the second half of 2026, which is also when the company is expected to turn a profit on a non-GAAP basis.

Nuclear energy is having a revival. After decades of falling out of favor, the International Atomic Energy Agency (IAEA) projects global nuclear capacity could double by 2050, with significant near-term growth in 2026 through 2030. This isn’t just being driven by the United States. China, India and Russia are also scaling their nuclear power infrastructure.

It’s a supply-demand setup for uranium prices that makes a low-cost miner such as Ur-Energy a potentially lucrative investment. The Ur-Energy analyst forecasts on MarketBeat show six analysts offering a rating with a consensus price target of $2.57.

Grab Holdings Offers Growth Potential at a Discounted PriceGrab Holdings NASDAQ: GRAB may be the best-known name on this list of penny stocks. The company operates a consumer-facing “super app” across Southeast Asia. The app offers services that include ride-hailing, food and package delivery, and digital payments. The latter is part of Grab Financial Group, which may be a significant driver of the company's growth.

Grab Today

$3.46 -0.03 (-0.86%)

As of 06/23/2026 04:00 PM Eastern

52-Week Range$3.18▼

$6.62P/E Ratio346.35

Price Target$6.19

Revenue growth isn’t the problem, and it should be noted that Grab has been profitable. But GRAB has been a poor investment almost from the time it debuted in 2021. In the last 12 months, the stock is down over 20% and is down about 30% in 2026.

However, that seems like a case of the story getting ahead of the stock. The 10 analysts who have offered a price target for GRAB suggest there could be significant upside ahead.

Insider selling of penny stocks is often amplified, especially when, as with GRAB, there are no corresponding share purchases. But the selling done in May 2026 all indicate that they were part of a Rule 10b5-1(c) plan. These are structured sales that are scheduled months in advance, often to manage an event like a tax deadline.

Aclaris Therapeutics Combines Revenue With Biotech UpsideBiotechnology and penny stocks go together like peanut butter and jelly. However, they aren’t always so appetizing for investors. That’s because a biotechnology stock that’s a penny stock usually means the company is still at the clinical stage, which means it doesn’t have a drug or therapeutic in the market.

Aclaris Therapeutics Today

ACRS

Aclaris Therapeutics

$4.92 +0.08 (+1.65%)

As of 06/23/2026 04:00 PM Eastern

52-Week Range$1.38▼

$5.15Price Target$11.50

That’s the case for Aclaris Therapeutics NASDAQ: ACRS. In fact, the company has no assets beyond Phase 2 trials that are under its own umbrella. Its lead candidate, bosakitug, is licensed from Biosion, and a Chinese partner is running additional trials of the drug overseas. The company also receives a nominal amount of licensing revenue from agreements with Eli Lilly NYSE: LLY and Sun Pharma.

That’s not enough reason to consider ACRS. A better reason is the analysts' outlook.

In this case, there are eight analysts who have issued price targets, and the consensus price target is over 150% above the stock price as of this writing.

ACRS is up more than 200% in the last 12 months. That may have more to do with speculation, so investors looking to get involved may want to wait for more data on the company’s pipeline.

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

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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The board of directors of Eli Lilly and Company (NYSE: LLY) has declared a dividend for the third quarter of 2026 of $1.73 per share on outstanding common stock.

The dividend is payable on September 10, 2026, to shareholders of record at the close of business on August 14, 2026.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram, and LinkedIn. F-LLY

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about expected dividend payments and reflects Lilly's current beliefs and expectations. However, there are significant risks and uncertainties in pharmaceutical research and development, as well as in business development activities and capital allocation strategies related to the company's business and actual results may differ materially due to various factors. For further discussion of risks and uncertainties relevant to Lilly's business that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.

SOURCE Eli Lilly and Company

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Eli Lilly (NYSE: LLY | LLY Price Prediction) and Pfizer (NYSE: PFE) just delivered Q1 2026 results that read like two different chapters of the same drug industry.

Lilly is sprinting through an obesity gold rush. Pfizer is rebuilding after COVID and buying its way into the same race. Both beat estimates, but the businesses underneath could not feel more different.

GLP-1 Volume Carries Lilly. Eliquis and Oncology Carry Pfizer. Lilly posted $19.80B in revenue, up 55.5%, with Mounjaro alone contributing $8.66B on a 125% jump. Zepbound added another $4.16B. Volume rose 65% while realized prices fell 13%, a trade Lilly is clearly willing to make to grab share before rivals arrive.

Pfizer pulled $14.45B in revenue, up 5.4%, with Eliquis at $2.17B (+13%) and Padcev surging 39%. The COVID drag is real: Comirnaty fell 59% and Paxlovid dropped 62%. CEO Albert Bourla called it a “defining period for Pfizer,” which is a polite way of saying every launch matters.

Business Driver Lilly Pfizer Main growth engine Mounjaro, Zepbound Eliquis, oncology, Vyndaqel Q1 revenue growth 55.5% 5.4% FY26 guidance Raised to $82B to $85B Reaffirmed $59.5B to $62.5B One Owns Obesity Today. The Other Just Paid To Enter. Lilly extended its lead with FDA approval of Foundayo, the first oral GLP-1 pill with no food or water restrictions. CEO David Ricks framed it bluntly: “2026 is off to a strong start…A key milestone was the U.S. FDA approval of Foundayo.”

Pfizer’s answer was a checkbook. The roughly $7B Metsera deal brings ultra-long-acting obesity assets into a 2026 pipeline featuring around 20 pivotal study starts. The Vyndamax patent settlement pushing US exclusivity to June 2031 matters more than the headlines suggest, since it softens the loss-of-exclusivity cliff Pfizer has been bracing investors for.

Valuation tells the same story. Lilly trades at a forward PE near 31, with analysts targeting $1,215.79. Pfizer sits at a forward PE around 9, with a 6.61% dividend yield doing most of the heavy lifting for shareholders.

What I Want To See Next From Both For Lilly, the watch item is whether oral Foundayo can hold pricing as supply scales and Medicare negotiations close in. Shares already cooled 5.37% in the past week despite a 40.92% one-year gain, hinting that expectations are stretched.

For Pfizer, I want proof Metsera can deliver Phase 3 data that justifies the spend, plus confirmation that Padcev’s August 17, 2026 MIBC decision goes through cleanly.

Why I Lean Lilly For Growth and Pfizer For Income If I had to pick one for the next three years on business momentum alone, I lean Lilly. The product cadence, the $2 billion guidance raise, and the oral GLP-1 first-mover position are hard to argue with. The valuation remains a key risk factor for new entrants at current levels.

Pfizer fits a different investor entirely. The 6.61% yield, the Vyndamax extension, and CEO Bourla’s steady personal buying of phantom stock units through the spring suggest a credible turnaround setup. The two stocks serve distinct portfolio roles, and the next pricing update will be a key signal for assessing how durable that 55% growth really is.

What's a monster stock? It's a well-established company that's demonstrated its strengths over time. You can count on this player for its portfolio of products and its ability to bring in revenue quarter after quarter. The healthcare industry is a great place to look for such investments. Here, you'll find many companies that have been around for years, selling blockbuster drugs and leading medical devices, for example.

These stocks may not deliver huge gains over a short period of time, but over a decade, they could help you generate a significant win. And these are exactly the sorts of building blocks that make a great portfolio. It's important to remember that, in investing, you'll increase your chances of success by holding onto stocks for the long term -- by this I mean at least five years. But 10 years is even better, as it offers the company the opportunity to grow -- and this period may also reduce the impact of any downturns along the way.

Let's check out three monster stocks to hold for the next ten years.

Image source: Getty Images.

1. Eli Lilly Eli Lilly (LLY +0.70%) has been at the center of attention in recent times. This is because the company is leading in one of the highest-growth areas in healthcare: the weight loss drug market, one on track to reach nearly $100 billion by the end of the decade. Lilly's Mounjaro and Zepbound have been generating blockbuster revenue, together surpassing $12 billion in the recent quarter, and driving growth at the pharma giant -- and this is likely to continue.

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Lilly recently won approval for Foundayo, a weight loss pill, has a promising candidate in late-stage trials, and is working on other candidates too. Since demand is high in this market, Lilly is wise to make this portfolio a priority.

The company also sells a variety of other drugs across treatment areas and has a long history of earnings growth. So, with Lilly, you gain the stability often found in healthcare companies, along with the weight loss drug growth opportunity that should continue to bear fruit in the years to come.

2 AbbVie When AbbVie's (ABBV +2.06%) mega-blockbuster Humira headed toward patent expiration, investors worried. After all, the drug at its peak in 2022 brought in more than $21 billion in sales.

But AbbVie prepared for this moment with the development of newer immunology drugs Skyrizi and Rinvoq, and these products are now driving a new era of growth at the company. In the recent quarter, Skyrizi and Rinvoq delivered double-digit increases in revenue to levels of more than $4 billion and $2 billion, respectively. So, it's clear AbbVie has what it takes to surmount the Humira patent expiry.

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The company also has a broad portfolio of star products in other indications, from Botox, used in neuroscience and aesthetics, to Vraylar, a treatment for bipolar disorder.

Expansion of indications for its major immunology drugs, as well as a solid pipeline, offer further reasons for optimism -- and to hold onto this pharma stock for the coming decade.

3. Abbott Laboratories I like Abbott Laboratories (ABT +3.07%) for the company's diversification, something that could make it resilient during challenging times. Abbott includes four business units: medical devices, diagnostics, nutrition, and established pharmaceuticals. If one of these areas faces a headwind, another business may compensate. For example, in later pandemic days, Abbott's coronavirus test sales dropped, while medical device sales picked up momentum.

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Abbott also is the name behind leading products and brands, such as the FreeStyle Libre continuous glucose monitor and the Ensure nutrition drink. And the company continues to innovate, winning the regulatory nod for new products -- it recently earned clearance for its next-generation Ultreon artificial intelligence-powered coronary imaging platform. And the company recently completed its acquisition of Exact Sciences, a move that offers it leadership in the oncology diagnostics market.

All of this positions Abbott well for long-term gains, making it a fantastic healthcare stock to buy now and hang onto as this story unfolds.

The tech sector is experiencing a sharp global sell-off today, dragging down chipmakers like Intel, AMD, Micron, and even the artificial intelligence (AI) darling – Nvidia.

What’s driving this weakness is a combination of a global market contagion (KOSPI crashed over 10% prompting a trading halt), resurgent fears of the US rate hike, and a valuation reset on the AI trade.

Against this backdrop, fund manager Tom Hulick has named three non-AI stocks suitable for those interested in rotating out of the plunging tech sector.

While tech investors panic over premium valuations and a potential AI slowdown, Hulick points to Eli Lilly stock as a robust value growth alternative.

The tech sector’s vulnerability stems from its volatile dependence on speculative forward-looking hardware cycles, but LLY offers a defensive moat built on generational medical advancements – specifically its blockbuster weight-loss drug.

Though chipmakers like AMD and Intel suffer severe multiple compression under high-rate fears, Lilly’s growth is anchored to secular, inelastic healthcare demand.

Hulick believes the market is underestimating how tech and AI developments will boost pharma innovations, making Eli Lilly’s flat-ish year-to-date (YTD) performance an “attractive” entry point for capital rotating out of volatile semiconductor stocks.

Note that LLY shares also currently pay a dividend yield of 0.63%.

The semiconductor wipeout on Jun. 23 underscores the risks of “crowded trades” where valuations outpace near-term cash flows.

In stark contrast, Hulick highlights GE Vernova shares, pointing to genuine, undeniable earnings momentum within the industrial power sector.

As money flees capex-heavy tech names whose future revenues are vulnerable to macroeconomic policy shifts, GEV stands out as a fundamental structural play.

The company provides the essential electrical grid infrastructure required to sustain the modern economy.

While chip manufacturers like AMD or Intel face compressing margins and global market contagion today, GE Vernova captures the market’s necessary pivot toward hard industrial assets, offering investors stable growth that is completely insulated from the immediate risks of the AI hardware trade reset.

A 0.19% dividend yield makes GEV stock even more attractive to own in 2026.

Instead of chasing the highly volatile, consumer-facing tech giants, Hulick suggests a tactical pivot toward infrastructure-level technology via Panasonic.

As the tech-heavy KOSPI and Nasdaq plummet under leverage liquidations, Panasonic offers a grounded, utilitarian alternative focused on backup battery systems and supercapacitors.

These technologies are crucial for efficient energy storage and grid management – the very power systems required to fuel the broader economy.

While premium chip stocks suffer are extremely sensitive to surging US Treasury yields, Panasonic stock represents the “broadening out” of the market into tangible, industrial-tech small and mid-caps.

It allows investors to exit the over-leveraged AI trade while still capturing the indispensable secular growth of energy infrastructure.

Mounjaro and Zepbound turned Eli Lilly into a trillion-dollar pharmaceutical giant. But every blockbuster drug eventually faces competition.

President Donald Trump on Tuesday visited the Mack Trucks facility in Macungie, Pennsylvania, to tout his economic agenda in a battleground district ahead of this fall's midterm elections.

Trump spoke to a crowd at the Mack Trucks facility while accompanied by Rep. Ryan Mackenzie, R-Pa., who represents the Keystone State's 7th congressional district where the plant is located. Mackenzie is running for reelection and will face Democratic challenger Bob Brooks this fall.

The president touted the impact of his economic policies on Pennsylvania, saying that they've helped boost job creation in the commonwealth with a particular focus on manufacturing jobs.

"More Americans are working today than at any time in the history of our country. And we've created over… 32,000 new jobs just starting in Pennsylvania alone. But you have to get credit for that," Trump said. "And in the last few months alone, we've added 2,600 Pennsylvania manufacturing jobs, and that number's going to go much higher as the factories start to open."

JOHNSON & JOHNSON TO INVEST $1B IN PENNSYLVANIA MANUFACTURING FACILITY

President Donald Trump touted manufacturing jobs in his Pennsylvania speech at a Mack Trucks facility on Tuesday. (Mandel NGAN / AFP via Getty Images)

Trump also praised the role of Mack Trucks, which is owned by Volvo Group of Sweden, in supporting both the regional and national economy with its production.

"For more than 100 years, this legendary company has been making trucks right here in Eastern Pennsylvania, building the heavy machinery that keeps our economy rolling on, factories moving and our industries rolling all across the nation," Trump said.

Ticker Security Last Change Change % VLVLY VOLVO AB 32.4 -0.92 -2.76% NOK NOKIA OYJ 13.70 -0.73 -5.06% LLY ELI LILLY & CO. 1,107.08 +5.00 +0.45% TRUMP GREENLIGHTS U.S. STEEL DEAL, PROMISING $11B INVESTMENT AND 100,000 AMERICAN JOBS

He also said that his move to roll back the Biden administration's fuel emissions regulations, arguing that those more stringent standards would've raised costs on consumers and created problems for companies like Mack Trucks.

"I terminated Biden's disastrous fuel emission standards that would have crushed Mack Trucks here," Trump said. "It was the most insane environmental regulation ever conceived of by men. It was totally unreasonable and ridiculous, and you can sell trucks for much less money, that are much better trucks that work, that actually work."

President Donald Trump at the Mack Trucks facility in Macungie, Pa., Tuesday. (Andrew Harnik/Getty Images)

TRUMP ORDERS FEDERAL AGENCIES TO PRIORITIZE AMERICAN-MADE GOODS AND CURB WAIVER USE

Trump's speech also referenced other notable investments in the region's manufacturing industries, including the pharmaceutical, medical products and chip-making sectors.

"Eli Lilly has just announced — great company, by the way, drug company — a $3.5 billion investment in a brand-new, state-of-the-art manufacturing facility right down the road that's going to create over a thousand jobs. Just that one," Trump explained.

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"Nokia is investing $30 million to expand its semiconductor testing and packaging operations, thousands of jobs," he added. "And B. Braun has announced a $20 million expansion of its medical device manufacturing operation in Allentown."

, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) announced that it will webcast its quarterly earnings conference call for the second quarter 2026 on Tuesday, July 21, 2026 beginning at 8:00 a.m. ET and lasting approximately one hour. During the call, the company will discuss its financial performance, as well as future expectations.

The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.

You can access the conference call by dialing 833-419-0865, within the U.S. or +1 785-838-9333 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (Conference ID: DHRQ226). A replay of the conference call will be available shortly after the conclusion of the call until August 4, 2026. You can access the replay dial-in information on the "Investors" section of Danaher's website under the subheading "Events & Presentations."

Danaher's earnings press release, the webcast slides and other related materials will be posted to the "Investors" section of Danaher's website under the subheading "Quarterly Earnings" beginning at 6:00 a.m. ET on the date of the earnings call and will remain available following the call.

ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Through our connected ecosystem of industry-leading businesses, we work side by side with customers to solve many of their most complex scientific and clinical challenges—helping move innovations from discovery to delivery faster for patients who depend on them.

Powered by the Danaher Business System, our advanced science and technology and proven ability to innovate help enable faster, more accurate diagnoses and reduce the time, cost, and risk required to discover, develop, and deliver life-changing therapies. Through continuous improvement and operational excellence, our approximately 60,000 associates worldwide are focused on delivering lasting impact and improving quality of life around the world, while building a healthier, more sustainable tomorrow. Explore more at www.danaher.com.

SOURCE Danaher Corporation

Medtronic offers high growth potential in addition to discounted valuation.

Amid the largest IPO in history, which we recently witnessed, and the booming artificial intelligence industry that continues to show highly attractive prospects, there remain serious economic and geopolitical tensions that could eventually significantly cool much of the excitement on Wall Street. Inflation is on the rise, some economists continue to warn that a recession may be coming, and although the United States and Iran seem to be working toward a deal, it remains hard to predict how that situation will evolve.

In the current environment, it is a good idea to consider investing in dividend stocks. They may not be particularly "exciting" choices right now, but solid dividend payers can help stabilize a portfolio in case the going gets rough and smooth out market losses in a downturn. With that said, let's consider two excellent dividend stocks that are worth investing in right now: Pfizer (PFE 1.44%) and Medtronic (MDT +1.72%). Both healthcare leaders could deliver competitive returns through the next decade.

Image source: Getty Images.

1. Pfizer Pfizer has not performed well in recent years due to poor financial results and upcoming patent cliffs, notably for its anticoagulant Eliquis, one of its best-selling drugs. It will lose patent exclusivity by the end of the decade. However, the company is developing new products that could help it overcome these challenges. Pfizer has significantly expanded its pipeline in recent years, partly thanks to acquisitions, and now boasts a deep portfolio of investigational medicines.

The most promising might be in oncology and weight loss. In the latter therapeutic area, Pfizer is developing an anti-obesity medicine, MET-097i, which it hopes will be highly differentiated from current market leaders, thanks to its better safety profile and long-acting properties.

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In oncology, Pfizer is working on highly promising cancer medicines, including PF'4404, which could challenge the current leader in the cancer drug market, Keytruda, across several niches. Of course, Pfizer has plenty of attractive candidates beyond those, and for what it's worth, some of the company's newer launches have already started contributing meaningfully to its financial results. That's the case with Abrysvo, a vaccine for the respiratory syncytial virus.

Pfizer should overcome recent challenges thanks to its deep pipeline. Meanwhile, the company offers a highly attractive forward yield of 6.8% and has not suspended its dividend program despite the significant challenges it has encountered of late. Pfizer could continue rewarding its shareholders with payout increases over the next decade while bouncing back and delivering much better returns.

2. Medtronic Medtronic's shares recently fell after earnings (for the fourth quarter of its fiscal year 2026, ending April 24), as the company's guidance missed Wall Street's estimates. The medical device specialist could face a challenging next few years as it navigates tariffs and other macroeconomic factors that might increase its costs and squeeze its profits and margins. However, Medtronic remains an attractive long-term dividend stock. The company's vast lineup across multiple therapeutic areas allows it to generate consistent revenue, and it also has several opportunities that will eventually help boost sales growth.

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Last year, Medtronic finally received U.S. clearance for its Hugo robotic-assisted surgery (RAS) system for urologic procedures. This milestone will help it tap into the attractive and underpenetrated RAS market. It will take some time for Medtronic to ramp Hugo sales, but it should eventually become a meaningful growth driver, especially as it earns additional indications. Medtronic should also succeed in finding additional growth avenues, and, over the long run, the company will benefit from secular tailwinds -- such as an aging population -- that will drive increased demand for its products.

Finally, Medtronic has an exceptional dividend track record. The company offers a juicy forward yield of 3.63%, and it has increased its payouts for 48 consecutive years. This long streak is likely to continue for the foreseeable future, making Medtronic a great pick for income seekers.

On June 18, 2026, Texas Instruments Inc (TXN) shares experienced a notable increase of 7.0%, bringing the current price to $322.86. The 52-week trading range fo

Companies in the Semiconductor – General industry are at the forefront of the ongoing technological revolution based on HPC, AI, electrified and automated driving, IoT and so forth. The semiconductors they produce enable the cloud to function and help analyze data into actionable insights that can be used by companies to operate more efficiently. Therefore, the long-term outlook can only be considered bright.

 In the immediate future, however, there could be some challenges. While geopolitical instability and the arms race among nations may sound like positive drivers for some, actual wars disrupt supply chains, delay deliveries and drive up prices. The U.S. government’s tariffs at this juncture will only exacerbate the inflation on end-products using semiconductors and potentially disrupt trade routes, resulting in more of the same challenges. Given the growing uncertainty, we are happy that valuation appears reasonable.

 Texas Instruments (TXN - Free Report) has always looked good because of the sticky customer relationships and long product lifecycles, and its ongoing investment cycle should generate strong growth. We also think the Amtech Systems (ASYS - Free Report) opportunity still has legs as AI infrastructure appears to be on steroids. So our bets are on these two stocks.

 WSTS data, which is also typically quoted by the Semiconductor Industry Association (SIA), shows that global semiconductor sales are now expected to grow 89.9% in 2026 to $1.5 trillion, mainly driven by very strong memory demand. Growth will slow to 26.6% the following year.

While growth in other categories cannot match the 249.5% of memory chips, logic, MCU and analog growth of 37.3%, 19.8% and 10.2% is also strong by any standards, taking total IC growth to 101.5%. Discretes, sensors and optoelectronics will grow slower, at a respective 8%, 3% and 2.7%. The Americas will see the strongest increase at 112% this year, followed by the Asia Pacific at 87.4%, Europe at 58.4% and Japan at 27.6%.

 IDC expects 52.8% growth in 2026, driven overwhelmingly by AI infrastructure investment. Memory, especially DRAM (HBM), revenues of which are expected to triple this year driven by very strong pricing, is the primary driver. IDC estimates that by 2030, data center semiconductors will account for nearly half the total semiconductor market. NAND is expected to grow 138.5% this year. In non-memory, IDC says that “several end markets are dealing with margin pressure, supply allocation challenges, and macroeconomic headwinds.”

 Garter expects 64% growth in 2026, the highest in two decades, as memory revenue increases 3X amid significant price inflation. DRAM and NAND prices are expected to increase 125% and 234%, respectively, strength that is expected to persist through most of 2027 as well. Additionally, memory price inflation will “destroy” or “delay” non-AI demand into 2028.

 The U.S. government’s target of reducing dependence on China, and onshoring projects with national security implications are also shaping the future of this industry.

About the Industry The companies grouped under the Semiconductor – General category produce a broad range of semiconductor devices, both integrated and discrete, like microprocessors, graphics processors, embedded processors, chipsets, motherboards, wireless and wired connectivity products, DLPs and analog, serving multiple end markets. The industry includes companies like NVIDIA, Texas Instruments, Intel and STMicroelectronics.

Major Themes Shaping the Industry Artificial intelligence is the single biggest driver of the industry because of the transformation it is bringing in efficiency, cost-effectiveness, automation, safety, environmental benefits and so forth. AI has become an imperative for effective competition, irrespective of the industry and a huge infrastructure is required to support this demand.

This infrastructure consumes thousands of chips. Technology companies are building their own AI where possible and buying where it makes sense. Moreover, the more the companies that use it, the more necessary it becomes.

In this backdrop, data-intensive applications, advancements in machine learning algorithms and increasing urbanization, as well as dynamics in other end markets including data center, auto, industrial automation, healthcare, financial services and other markets are major drivers. The growth this is spurring in the semiconductor industry is likely to continue for years to come.

There is significant opportunity in the automotive and industrial markets. In fact, these two end-markets are shaping up to be its strongest growth drivers after AI. The automotive opportunity is driven largely by electrification (which consumes a large number of chips in things like power management, battery management systems, power conversion systems, charging infrastructure and motor control electronics. Strong growth is also coming from automation.

Automotive computing is also increasingly becoming a thing. The industrial opportunity is mainly in factory automation, where robots, machine vision systems, production lines and real time monitoring systems are consuming a growing number of embedded processors, analog chips, connectivity chips, sensors and power semiconductors.

Current geopolitics is negative for growth. Geopolitical tensions are adding a dimension to semiconductor demand, as countries increasingly adopt the latest technology in defense, infrastructure and other critical applications. As defense spending accelerates the world over, particularly on fighter planes and unmanned aerial vehicles currently being used in military operations, demand for the most sophisticated underlying electronics will only go up.

Tachnavio estimates that semiconductors used in the military and aerospace market will grow 6% between 2025 and 2029. However, war is not conducive to trade overall because of the disruptions in trade routes, uncertainty in demand and price escalation in key commodities. There may also be export restrictions on products being sold to an enemy country. Therefore, ongoing tensions around the world could actually dampen demand, raise prices or cause other disruption in the larger computing, consumer, data center, auto and industrial markets.

China is the largest buyer of U.S. chips and remains hostile. There is also considerable concern that most of the important leading-edge chips are currently made in Taiwan, a country that China threatens to annex. Since this has national security implications, there is an ongoing drive to onshore or nearshore manufacturing. The CHIPS Act is facilitating the process.

·Notwithstanding the fact that the long-term prospects are extremely bright because the industry is on the building-block side of technology, making it crucial for the proliferation of the Internet and the ongoing broad-based digitization, there are some near-term issues. Macro concerns are still significant.

U.S. tariffs are expected to raise prices on all the consumer electronics, computing, data center, industrial and other applications of semiconductors, severely hitting consumer confidence, neutralizing the positive effects of relatively low inflation and a somewhat lower interest rate. In the auto market, ADAS, infotainment and electronic control units (ECUs) remain attractive, with safety and fuel efficiency being top concerns.

The unemployment rate has stabilized in the last three months. However, the personal savings rate is trending down because inflation remains high and debt is increasingly supporting consumption. Consumer confidence continues to fluctuate, hit by the Middle-East conflict. This hurts consumption, including of consumer goods, technology and expensive EVs. Industrial markets are cyclical and directly impacted by any macro slowdown.

Semiconductor supply chains are adjusting. Efficient semiconductor supply chains based on the just-in-time model are no longer coveted, as the cost advantages they enable are not as important as resilience in times of huge demand and unforeseen disruptions. Players continue to adjust for these external disruptions, such as COVID, wars and tariffs. This, along with other factors, such as the U.S.-imposed restraints on dealing with China has led semiconductor companies to diversify their supply chains.

Zacks Industry Rank Indicates Strong Prospects The Zacks Semiconductor-General Industry is a stock group within the broader Zacks Computer and Technology Sector. It carries a Zacks Industry Rank of #27, which places it in the top 11% of nearly 250 Zacks-classified industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates that near-term prospects are improving. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of 2 to 1.

An industry’s positioning in the top 50% of Zacks-ranked industries is normally because the earnings outlook for the constituent companies in aggregate is relatively strong. The opposite is true for stocks in the bottom 50% of industries. In this case, the aggregate earnings estimate for 2026 is down 29.1% from the year-ago level although the aggregate earnings estimate for 2026 is up 55.6%. The 2027 estimate is up 72.3%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Stock Market Performance Remains Strong Tracking the performance of the Zacks Semiconductor – General Industry over the past year shows that the industry has traded at a premium to both the broader Zacks Computer and Technology Sector and the S&P 500 index through most of the past year and more significantly since March 2026.

The industry has gained 57% over the past year. The broader technology sector gained 48% while the S&P 500 index gained 29.1%.

One-Year Price Performance

Image Source: Zacks Investment Research

Current Valuation Reasonable On the basis of forward 12-month price-to-earnings (P/E) ratio, we see that the industry is currently trading at a 24.64X multiple, which is a discount to its median value of 28.78X over the past year. It is also trading at a discount to the broader sector’s 25.24X.

While the S&P 500 trades at 21.54X, it’s worth noting that the industry has consistently traded at a premium to the index since 2021. The industry has traded between a low of 23.05X and a high of 38.34X over the past year. All things considered, it appears that the industry’s valuation is reasonable.

Forward 12 Month Price-to-Earnings (P/E) Ratio

Image Source: Zacks Investment Research

2 Stocks to Consider Macro and geopolitics notwithstanding, the industry stands to benefit from stable or declining interest rates, which typically drives more money into risky assets. Several of the technology heavyweights in this industry are the core suppliers to the AI mega cycle we are seeing now, so we remain optimistic over the long run. The only stumbling block is the valuation. We are picking Texas Instruments and Amtech Systems: 

Texas Instruments, Inc. (TXN - Free Report) : Dallas-based Texas Instruments is an original equipment manufacturer of analog and embedded processing chips for industrial, automotive, communications, consumer, data center and other applications.

While the US is its largest market, followed by Europe, it’s worth noting that China still accounts for roughly a fifth of its revenues, which could be at increasing risk given the current geopolitics.

As the pandemic and geopolitics impacted the chip supply chain, and the government incentivized American companies to reshore manufacturing, TI changed its manufacturing strategy from one that opportunistically used external capacity to one on the path to source more than 95% of its wafers internally, with more than 80% on 300mm, by 2030. To this end, it expanded its internal manufacturing capacity in 2024, with tool installations completed and production currently ramping at two 300mm wafer fabs in Richardson, Texas and one in Lehi, Utah. Another Lehi fab and a second Sherman, Texas fab are currently in development.

The company is a beneficiary of the 25% investment tax credit related to some of its investments in U.S. semiconductor manufacturing (expected to continue on qualified investments up to 2034). It also has an agreement with the Department of Commerce to receive direct funding of up to $1.6 billion for the two large-scale 300mm wafer fabs in Sherman, TX, as well as the under-construction Lehi fab in Utah. The company agreed to spend more than $18 billion in U.S. manufacturing, particularly on 300mm wafer capacity by the end of 2029.

As may be expected, capacity expansion initially has a negative impact on margins, as capacity can only be filled over time. Until then, some underutilization charges are a given. If there are in addition any end market issues, such as supply chain glitches in the automotive market or cyclicality in the industrial market, the impact is compounded.

It is encouraging to note that TI has also gradually increased the share of direct sales to customers, which improves insight into their projects and timelines, thus driving sales, customer penetration and market share gains. Customer relationships also tend to be sticky because TI primarily supplies analog and embedded products, and analog products are higher-valued and remain designed in for years. In 2025, more than 80% of business came from direct customers. Since TI has a huge portfolio of thousands of products and builds capacity years in advance to ensure stable supplies even when there is uncertainty in the market, it is easy for the company to attract and retain customers, grow its share of content in each design and gradually capture a growing share of the fragmented automotive and industrial markets.

Industrial and automotive markets together accounted for around 66% of revenue in 2025, so the growing electronic content in these applications holds promise. However, the data center market saw the strongest growth, contributing 9%.

In the last 60 days, the Zacks Consensus Estimate for 2026 increased by $1.31 (20.6%) while the estimate for 2027 increased $1.17 (15.4%). Analysts currently expect revenue and earnings to grow a respective 17.4% and 40.6% in 2026 followed by a respective 9.9% and 14.4% in 2027.

In the past year, this Zacks Rank #1 (Strong Buy) stock gained 62.8%.

Price & Consensus: TXN

Image Source: Zacks Investment Research

Amtech Systems, Inc. (ASYS - Free Report) : Amtech Systems manufactures and sells capital equipment and related consumables and services for semiconductor device packaging, wafer production and device fabrication. Products are sold to semiconductor device packaging, electronic assembly and device fabrication companies worldwide and used to fabricate and package semiconductor devices, such as graphic processing units (GPUs) used in AI applications, silicon carbide (SiC) and silicon power devices and other optical, analog and digital devices.

The optimism on Amtech shares is coming from its SiC equipment.SiC offers several advantages over silicon, including the ability to handle higher voltages, operate at higher temperatures, and switch faster and with lower energy loss. Because of these advantages, engineers can design smaller, lighter and more efficient systems with them, which tend to lower the total cost of ownership over time. And this is why, SiC devices, despite being more expensive, are seeing increasing uptake across several markets, including EVs, fast-charging infrastructure, renewable energy, data centers and AI infrastructure, industrial automation, and for electrical grid modernization.

Therefore, SiC production capacity is increasing very rapidly. McKinsey estimated that capacity will grow from around 2.8 million 150mm wafer equivalents in 2023 to approximately 10.9 million equivalents by 2027, a capacity CAGR of roughly 40% per year. Equipping was initially supported by very strong growth in EVs, although most of the current focus is on AI infrastructure. Companies like Infineon, Wolfspeed, STMicroelectronics and a number of Chinese vendors are in a race to build capacity and take SiC market share. As SiC production capacity continues to expand globally, demand for Amtech's thermal processing equipment and related consumables should also continue to increase. In build cycles, capacity initially exceeds demand, and is then filled over time, with increasing loads benefiting margins.

Management mentioned strong double-digit growth in recurring revenue streams across both segments in the last quarter and called out the AI infrastructure market as a major growth driver. Additionally, they stated that the significant margin improvements came from discontinuing low-margin product lines and the migration to a semi-fabless manufacturing model over the past two years.

In the last quarter, Amtech posted a positive surprise of 100% as earnings of 10 cents were double the estimated 5 cents. For the year ending September 2026, the Zacks Consensus Estimate has gone from 25 cents to 32 cents in 60 days, up 28%. The estimate for 2027 was raised  6.6% during the same time.

The Zacks Rank #2 (Buy) ranked stock is up 431.1% in the past year.

Price & Consensus: ASYS

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In the latest close session, Texas Instruments (TXN - Free Report) was down 8.39% at $304.41. The stock's change was less than the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.

Prior to today's trading, shares of the chipmaker had gained 7.46% outpaced the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Texas Instruments will be of great interest to investors. The company's upcoming EPS is projected at $1.9, signifying a 34.75% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.22 billion, indicating a 17.39% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.66 per share and a revenue of $20.76 billion, representing changes of +40.55% and +17.38%, respectively, from the prior year.

Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Texas Instruments currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, Texas Instruments is currently exchanging hands at a Forward P/E ratio of 43.35. Its industry sports an average Forward P/E of 68.59, so one might conclude that Texas Instruments is trading at a discount comparatively.

It's also important to note that TXN currently trades at a PEG ratio of 1.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TXN's industry had an average PEG ratio of 1.06 as of yesterday's close.

The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TXN in the coming trading sessions, be sure to utilize Zacks.com.

Honeywell International (HON 2.52%), one of the world's largest industrial conglomerates, continues to dismantle itself. Less than a year after spinning off Solstice Advanced Materials, the company is gearing up for an even larger spinoff.

Later this month, Honeywell will split into two separate companies: Honeywell Aerospace and Honeywell Technologies. The expectation is that each company, as a pure play in its respective industry, will receive a higher valuation than the diversified Honeywell has as a public company.

However, while spinoffs are a useful tool for maximizing shareholder value, they aren't necessarily a silver bullet. Let's take a closer look at the math behind this transaction, as well as recent price action with Honeywell shares, and determine whether it's worthwhile to buy Honeywell Aerospace, as well as when exactly to buy it.

Image source: Getty Images.

Honeywell, the spinoff, and the potential payoff With the Honeywell Aerospace spinoff scheduled for June 29, management is ramping up its efforts to tout the event as highly beneficial to shareholders. As management has noted in its communications with investors, this deal entails splitting off Honeywell's faster-growing aerospace unit from its relatively slower-growing automation segment, which will take on the Honeywell Technologies name.

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At the same time, the two companies intend to pursue margin-expansion efforts following the spinoff. By raising their margins, both Honeywell Aerospace and Honeywell Technologies intend to deliver double-digit earnings growth over the next few years. Honeywell Aerospace expects annual sales growth of 6% to 8%, while Honeywell Technologies expects sales growth of 4% to 6%.

In terms of share appreciation potential, it lies in the valuations of each unit's respective "pure-play" competitors relative to Honeywell's current valuation as a whole. GE Aerospace, one of the most widely followed aerospace stocks, trades at 46 times forward earnings.

Automation-focused industrial stocks, like Rockwell Automation, trade for over 30 times forward earnings. Meanwhile, Honeywell, even as its shares rally ahead of the merger, trades for only 21.6 times forward earnings. Even if the two companies experience partial expansion toward similar multiples, the resulting gains could be substantial, especially if the aforementioned margin-expansion efforts take hold.

There's an opportunity on both sides The mechanics of the spinoff are as follows. Shareholders of record as of June 15 will receive shares in Honeywell Aerospace on a pro rata basis on June 29, receiving one share for every two shares held in Honeywell. The remaining Honeywell entity will then execute a 1-for-2 reverse stock split effective June 29.

It's unclear how exactly shares will trade after the spinoff. Given how "hot" the aerospace sector is at present, Honeywell Aerospace could go on a tear. However, the "less glamorous" Honeywell Technologies could pull back, as can happen when a company spins off or splits off a faster-growing business from a slower-growing one.

Then again, a post-spinoff sell-off could create a new opportunity. If investors bail on Honeywell Technologies, it could become oversold, offering a very opportune entry point from a value perspective.

With this in mind, existing Honeywell investors may want to hold onto their positions in both companies. If you've yet to buy, however, you may want to consider Honeywell Aerospace for its growth potential, while keeping an eye on Honeywell Technologies for its rerating potential following an initial period of weakness.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Union Pacific?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Union Pacific (UNP - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.15 a share 30 days away from its upcoming earnings release on July 23, 2026.

By taking the percentage difference between the $3.15 Most Accurate Estimate and the $3.14 Zacks Consensus Estimate, Union Pacific has an Earnings ESP of +0.29%. Investors should also know that UNP is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>